On January 6, 2015, Applied Optoelectronics, Inc. entered into a credit facility agreement with CTBC Bank Co. Ltd. in Taipei, Taiwan for TWD 90,000,000.00, one year revolving credit facility. Borrowings under the credit facility will be used for general corporate purposes.

The company's obligations under the credit facility are unsecured. Borrowings under the credit facility will bear interest at a rate based on the Bank's corporate interest rate swap index plus 1.5%, adjusted monthly. As of the execution of the Credit Facility the Bank's corporate interest rate swap index is 0.91%.

The credit facility contains representations and warranties, affirmative, restrictive and financial covenants, and events of default (applicable to the company) which are customary for credit facilities of this type.