On December 29, 2021, Applied Optoelectronics, Inc. executed a Sixth Amendment to Loan Agreement and a Fifth Amendment to Security Agreement, a Note Modification Agreement, and an Addendum to Promissory Note (together the “Amended Credit Facility”) with Truist Bank (the “Lender”). The Amended Credit Facility extends the $20 million line of credit with Lender, originally entered into on September 28, 2017 (the “Credit Line”), until April 15, 2023. Borrowings under the Amended Credit Facility will be used for general corporate purposes and will bear interest at a rate equal to the Secured Overnight Financing Rate (SOFR) plus 1.56%, with a SOFR floor of 0.75%.

The Company will make monthly payments of accrued interest with the final monthly payment being for all principal and any accrued interest not yet paid. The Company's obligations under the Credit Line is secured by the Company's accounts receivable, inventory, intellectual property, all business assets with the exception of real estate and equipment. The Credit Line requires the Company to maintain certain financial covenants and also contains representations and warranties, and events of default applicable to the Company that are customary for agreements of this type.