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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
November 7, 2024
Applied Optoelectronics, Inc.
(Exact name of registrant as specified in its
charter)
| Delaware |
001-36083 |
76-0533927 |
|
(State or other jurisdiction of
incorporation) |
(Commission File Number) |
(IRS Employer Identification
No.) |
13139 Jess Pirtle Blvd.
Sugar Land, Texas |
77478 |
| (Address of principal executive offices) |
(Zip Code) |
(281) 295-1800
(Registrant’s telephone number, including
area code)
Not Applicable
(Former name or former address, if changed since
last report)
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
¨ Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
Trading
Symbol(s) |
Trading Name of each exchange on which
registered |
| Common Stock, Par value $0.001 |
AAOI |
NASDAQ Global Market |
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the
Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company ¨
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 1.01. Entry into a Material Definitive Agreement.
On November 7, 2024, Applied Optoelectronics, Inc.
(the “Company”) entered into an Equity Distribution Agreement (the “Agreement”) with Raymond James &
Associates, Inc. (the “Sales Agent”) pursuant to which the Company may issue and sell shares of the Company’s common
stock, par value $0.001 per share (the “Shares”) having an aggregate offering price of up to $55 million from time to time
through the Sales Agent. Prior to entry into the Agreement, we terminated our
prior program pursuant to the equity distribution agreement, dated as of March 13, 2024 (the “Prior Agreement”), entered
into with Raymond James & Associates, Inc. (the “Prior Sales Agent”). At the time of the termination of the
Prior Agreement, an aggregate gross sales price of approximately $0.1 million of the Common Stock remained unsold under the Prior
Agreement.
Upon delivery of a placement notice and subject
to the terms and conditions of the Agreement, sales, if any, of the Shares will be made through the Sales Agent in transactions that are
deemed to be “at the market” offerings as defined in Rule 415 of the Securities Act of 1933, as amended (the “Securities
Act”), including sales made through the facilities of the Nasdaq Global Market, the principal trading market for the Company’s
common stock, on any other existing trading market for the Company’s common stock, to or through a market maker or as otherwise
agreed by the Company and the Sales Agent. In the placement notice, the Company will designate the maximum number of Shares to be sold
through the Sales Agent, the time period during which sales are requested to be made, the minimum price for the Shares to be sold, and
any limitation on the number of Shares that may be sold in any one day. Subject to the terms and conditions of the Agreement, the Sales
Agent will use its commercially reasonable efforts to sell Shares on the Company’s behalf up to the designated amount specified
in the placement notice. The Company has no obligation to sell any Shares under the Agreement and may at any time suspend offers and sales
of the Shares under the Agreement.
The Agreement provides that the Sales Agent will
be entitled to compensation of 2% of the gross sales price of the Shares sold through the Sales Agent from time to time. The Company has
also agreed to reimburse the Sales Agent for certain specified expenses in connection with the registration of Shares under state blue
sky laws and any filing with, and clearance of the offering by, the Financial Industry Regulatory Authority Inc., not to exceed $10,000
in the aggregate, and any associated application fees incurred. Additionally, if the Agreement is terminated under certain circumstances,
and the Company fails to sell a minimum amount of the Shares as set forth in the Agreement, then the Company has agreed to reimburse the
Sales Agent for reasonable out-of-pocket expenses, including the reasonable fees and disbursements of counsel incurred by the Sales Agent,
up to a maximum of $30,000 in the aggregate. The Company agreed to indemnify the Sales Agent against certain liabilities, including liabilities
under the Securities Act, or to contribute to payments that the Sales Agent may be required to make because of any of those liabilities.
The offering pursuant to the Agreement will terminate
upon the sale of all Shares subject to the Agreement. The Agreement may also be terminated by the Company or by the Sales Agent at any
time.
The Shares to be issued and sold have been registered
under the Securities Act, pursuant to the Company’s shelf registration statement on Form S-3 (Registration No. 333-269132)
(the “Registration Statement”), which was declared effective by the Securities and Exchange Commission on March 21, 2023,
including the prospectus contained therein, as supplemented by the prospectus supplement filed with the Securities and Exchange Commission
pursuant to Rule 424(b) under the Securities Act on November 7, 2024.
The foregoing description of the Agreement does
not purport to be complete and is qualified in its entirety by reference to the complete text of the Agreement, which is filed as Exhibit 1.1
to this Current Report on Form 8-K and incorporated herein by reference.
Item 1.02. Termination of a Material Definitive Agreement.
On November 5, 2024, we delivered written
notice to the Prior Sales Agent that, effective on November 6, 2024, we are terminating our Prior Agreement, pursuant to Section 13
of the Prior Agreement. With the provision of such notice, the Prior Agreement is no longer available for use.
A description of the material terms of the Prior
Agreement is contained in our Current Report on Form 8-K filed with the SEC on March 13, 2024 (the “Prior Form 8-K”).
A copy of the form of Prior Agreement was filed as Exhibit 1.1 to the Prior Form 8-K, and the descriptions of the material terms
of the Prior Agreement in the Prior Form 8-K are qualified in their entirety by reference to such Exhibit.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
| |
APPLIED OPTOELECTRONICS, INC. |
| |
|
| Date: November 7, 2024 |
By: |
/s/ David C. Kuo |
| |
Name: |
David C. Kuo |
| |
Title: |
Senior Vice President and Chief Legal Officer |
Exhibit 1.1
Equity Distribution Agreement
November 7, 2024
Raymond James & Associates, Inc.
880 Carillon Parkway
St. Petersburg, Florida 33716
Ladies and Gentlemen:
APPLIED OPTOELECTRONICS, INC., a Delaware
corporation (the “Company”), confirms its agreement (this “Agreement”) with RAYMOND
JAMES & ASSOCIATES, INC. (“Raymond James” or “Agent”), as follows:
1. Issuance
and Sale of Shares. The Company agrees that, from time to time during the term of this Agreement, on the terms and subject to the
conditions set forth herein, it may issue and sell through Raymond James, acting as agent, up to $55,000,000 aggregate gross proceeds
of shares (the “Shares”) of the Company’s common stock, par value $0.001 per share (the “Common
Stock”). Notwithstanding anything to the contrary contained herein, the parties hereto agree that compliance with the limitations
set forth in this Section 1 on the number of Shares issued and sold under this Agreement shall be the sole responsibility of the
Company. The issuance and sale of Shares through Raymond James will be effected pursuant to the Registration Statement (as defined below)
filed by the Company and declared effective by the Securities and Exchange Commission (the “Commission”), although
nothing in this Agreement shall be construed as requiring the Company to use the Registration Statement to offer, sell or issue the Shares.
The Company agrees that Raymond James shall be under no obligation to purchase Shares on a principal basis pursuant to this Agreement,
except as otherwise agreed in a separate written agreement containing the terms and conditions of such sale.
The Company has filed, in accordance with the provisions
of the Securities Act of 1933, as amended, and the rules and regulations thereunder (collectively, the “Securities Act”),
with the Commission a registration statement on Form S-3 (File No. 333-269132), including a base prospectus, relating to certain
securities, including the Shares to be issued from time to time by the Company, and which incorporates by reference documents that the
Company has filed or will file in accordance with the provisions of the Securities Exchange Act of 1934, as amended, and the rules and
regulations thereunder (collectively, the “Exchange Act”). The Company has prepared a prospectus supplement
specifically relating to the Shares (the “Prospectus Supplement”) to the base prospectus included as part of
such registration statement. The Company will furnish to Raymond James, for use by Raymond James, copies of the base prospectus included
as part of such registration statement, as amended, as supplemented by the Prospectus Supplement, relating to the Shares. Except where
the context otherwise requires, such registration statement when it became effective, including all documents filed as part thereof or
incorporated by reference therein, and including any information contained in or incorporated by reference in a Prospectus (as defined
below) subsequently filed with the Commission pursuant to Rule 424(b) under the Securities Act or deemed to be a part of such
registration statement pursuant to Rule 430B under the Securities Act, is herein called the “Registration Statement.”
The base prospectus, including all documents incorporated therein by reference, included in the Registration Statement, as it may be supplemented
by the Prospectus Supplement, in the form in which such prospectus and/or Prospectus Supplement have most recently been filed by the Company
with the Commission pursuant to Rule 424(b) under the Securities Act, together with any issuer free writing prospectus (as defined
below) that relates to the Shares, is called the “Prospectus.” As used herein, “issuer free writing
prospectus” has the meaning set forth in Rule 433 under the Securities Act, and “free writing prospectus”
has the meaning set forth in Rule 405 under the Securities Act. Any reference herein to the Registration Statement, the Prospectus
or any amendment or supplement thereto shall be deemed to refer to and include the documents incorporated by reference therein, and any
reference herein to the terms “amend,” “amendment” or “supplement” with respect to the Registration
Statement or the Prospectus shall be deemed to refer to and include the filing after the execution hereof of any document with the Commission
deemed to be incorporated by reference therein. All references in this Agreement to (i) the Registration Statement or the Prospectus,
or any amendments or supplements to any of the foregoing, shall include any copy thereof filed with the Commission pursuant to its Electronic
Data Gathering, Analysis and Retrieval System (“EDGAR”) and (ii) the Prospectus shall be deemed to include the “electronic
Prospectus” provided for use in connection with the offering of the Shares as contemplated by Section 7(x) of this Agreement.
2. Placements.
Each time that the Company wishes to issue and sell Shares hereunder (each, a “Placement”), it will notify Raymond
James by email notice (or other method mutually agreed to in writing by the parties) containing the parameters in accordance with which
it desires the Shares to be sold, which shall at a minimum include the number of Shares to be issued (the “Placement Shares”),
the time period during which sales are requested to be made, any limitation on the number of Shares that may be sold in any one Trading
Day (as defined in Section 3 below) and any minimum price below which sales may not be made (a “Placement Notice”),
a form of which containing such minimum sales parameters necessary is attached hereto as Schedule 1. The Placement Notice shall
originate from any of the individuals from the Company set forth on Schedule 2 attached hereto (with a copy to each of the other individuals
from the Company listed on such schedule), and shall be addressed to each of the individuals from Raymond James set forth on Schedule
2, as such Schedule 2 may be amended from time to time. The Placement Notice shall be effective upon receipt and prompt confirmation by
Raymond James unless and until (i) in accordance with the notice requirements set forth in Section 4, Raymond James declines
to accept the terms contained therein for any reason, in its sole discretion, and Raymond James provides notice thereof to the Company
within one business day, (ii) the entire amount of the Placement Shares have been sold, (iii) in accordance with the notice
requirements set forth in Section 4, the Company suspends, cancels or terminates the Placement Notice, (iv) the Company issues
a subsequent Placement Notice with parameters superseding those on the earlier dated Placement Notice, or (v) this Agreement has
been terminated under the provisions of Section 13.
The
amount of compensation to be paid by the Company to Raymond James in connection with the sale of the Placement Shares shall be 2% of the
gross proceeds from the sales of the Placement Shares sold pursuant to this Agreement. Under no circumstances shall the Company cause
or request the offer or sale of any Placement Shares at a price lower than the minimum price authorized from time to time by the Company’s
board of directors or duly authorized committee thereof, and notified to Raymond James in writing, nor shall the Company cause
or request the offer or sale of any Placement Shares in a number or with an aggregate gross or net sales price in excess of the number
or aggregate gross or net sales price, as the case may be, authorized from time to time to be issued and sold under this Agreement, in
each case by the Company’s board of directors or duly authorized committee thereof, or in a number in excess of the number of Shares
approved for listing on The Nasdaq Global Market (the “Exchange”), or in excess of the number or amount of Shares available
for issuance on the Registration Statement. It is expressly acknowledged and agreed that neither the Company nor Raymond James will have
any obligation whatsoever with respect to a Placement or any Placement Shares unless and until the Company delivers a Placement Notice
to Raymond James, receipt of which is promptly confirmed by Raymond James, and then only upon the terms specified therein and herein.
In the event of a conflict between the terms of this Agreement and the terms of a Placement Notice, the terms of the Placement Notice
will control.
3. Sale
of Placement Shares by Raymond James. Subject to the terms and conditions herein set forth, upon the Company’s issuance of a
Placement Notice to Raymond James, receipt of which is promptly confirmed by Raymond James, and unless the sale of the Placement Shares
described therein has been declined, suspended, canceled or otherwise terminated in accordance with the terms of this Agreement, Raymond
James, for the period specified in the Placement Notice, will use its commercially reasonable efforts consistent with its normal trading
and sales practices and applicable state and federal laws, rules and regulations and the rules of the Exchange, to sell such
Placement Shares up to the amount specified, and otherwise in accordance with the terms of such Placement Notice. Raymond James will provide
written confirmation to the Company no later than the opening of the Trading Day (as defined below) immediately following the Trading
Day on which it has made sales of Placement Shares hereunder setting forth the number of Placement Shares sold on such day, the prices
at which such Placement Shares were sold, the gross proceeds from such sales, the compensation payable by the Company to Raymond James
pursuant to Section 2 with respect to such sales, and the Net Proceeds (as defined below) payable to the Company, with an itemization
of the deductions made by Raymond James (as set forth in Section 5(a)) from the gross proceeds that it receives from such sales.
Unless otherwise set forth in the Placement Notice, Raymond James may sell Placement Shares by any method permitted by law deemed to be
an “at the market” offering as defined in Rule 415 of the Securities Act, including without limitation sales made directly
on the Exchange, on any other existing trading market for the Common Stock or to or through a market maker. With prior consent of the
Company, and subject to the terms of the Placement Notice, Raymond James may also sell Placement Shares in privately negotiated transactions.
The Company and Raymond James represent that a majority of the sales of Placement Shares pursuant to this Agreement will be made to the
public and not in privately negotiated transactions. The Company acknowledges and agrees that (i) there can be no assurance that
Raymond James will be successful in selling Placement Shares, and (ii) Raymond James will incur no liability or obligation to the
Company or any other person or entity if it does not sell Placement Shares for any reason other than a failure by Raymond James to use
its commercially reasonable efforts consistent with its normal trading and sales practices to sell such Placement Shares as required under
this Section 3. For the purposes hereof, “Trading Day” means any day on which the Common Stock is traded
on the Exchange.
4. Suspension
of Sales.
a) The
Company or Raymond James may, upon notice to the other party in writing (including by email correspondence to each of the individuals
of the other party set forth on Schedule 2, if receipt of such correspondence is actually acknowledged by any of the individuals to whom
the notice is sent, other than via auto-reply) or by telephone (confirmed immediately by verifiable facsimile transmission or email correspondence
to each of the individuals of the other party set forth on Schedule 2), suspend any sale of Placement Shares; provided however,
that such suspension shall not affect or impair either party’s obligations with respect to any Placement Shares sold hereunder prior
to the receipt of such notice. Each of the parties agrees that no such notice under this Section 4 shall be effective against the
other unless it is made to one of the individuals named on Schedule 2, as such Schedule may be amended from time to time.
b) Notwithstanding
any other provision of this Agreement, the Company shall not offer or sell, or request the offer or sale of, any of the Placement Shares
and, by notice to Raymond James in writing (including by email correspondence to each of the individuals of Raymond James set forth on
Schedule 2 if receipt of such correspondence is actually acknowledged by any of the individuals to whom the notice is sent, other than
via auto-reply) or by telephone (confirmed immediately by verifiable facsimile transmission or email correspondence to each of the individuals
of Raymond James set forth on Schedule 2), shall cancel any instructions for the offer or sale of any of the Placement Shares, and upon
delivery of such notice, receipt of which is promptly confirmed by Raymond James, Raymond James shall not offer or sell any of the Placement
Shares during any period in which the Company is in possession of such material non-public information and as provided in such notice.
5. Settlement.
a) Settlement
of Placement Shares. Unless otherwise specified in the applicable Placement Notice, settlement for sales of Placement Shares will
occur on the first (1st) Trading Day (or such earlier day as is industry practice for regular-way trading) following the date on which
such sales are made (each, a “Settlement Date”). The amount of proceeds to be delivered to the Company on a
Settlement Date against receipt of the Placement Shares sold (the “Net Proceeds”) will be equal to the aggregate
sales price received by Raymond James for the sale of such Placement Shares, after deduction for (i) Raymond James’ compensation
for such sales payable by the Company pursuant to Section 2 hereof, (ii) any other amounts due and payable by the Company to
Raymond James hereunder pursuant to Section 7(h) (Expenses) hereof, and (iii) any transaction fees imposed in respect of
such sales by any governmental or self-regulatory organization having jurisdiction over the Company (each, a “Governmental
Entity” and collectively, the “Governmental Entities”).
b) Delivery
of Placement Shares. On or before each Settlement Date, the Company will, or will cause its transfer agent to, electronically transfer
the Placement Shares being sold by crediting Raymond James’s or its designee’s account (provided Raymond James shall
have given the Company written notice of such designee prior to the Settlement Date) at The Depository Trust Company through its Deposit
and Withdrawal at Custodian System or by such other means of delivery as may be mutually agreed upon by the parties hereto which in all
cases shall be freely tradeable, transferable, registered shares in good deliverable form. On each Settlement Date, Raymond James will
deliver the related Net Proceeds in same day funds to an account designated by the Company on, or prior to, the Settlement Date. The Company
agrees that if the Company, or its transfer agent (if applicable), defaults in its obligation to deliver Placement Shares on a Settlement
Date, in addition to and in no way limiting the rights and obligations set forth in Section 10(a) (Indemnification and Contribution)
below, it will hold Raymond James harmless against any loss, claim, damage, or expense (including reasonable legal fees and expenses),
as actually and reasonably incurred, arising out of or in connection with such default by the Company, and notwithstanding any such default
by the Company, will pay to Raymond James the commission, discount, or other compensation to which it would otherwise have been entitled
absent such default.
c) No
Other Agent. The Company agrees that any offer to sell Shares, any solicitation of an offer to buy Shares, or any sales of Shares
shall only be effected by or through Raymond James, and the Company shall in no event offer or sell Shares on the same day through any
other agent or broker.
6. Representations,
Warranties of the Company. The Company represents and warrants to, and agrees with Raymond James as of each Applicable Time (as defined
in Section 23(a)), as follows:
a) Compliance
with Registration Requirements. The Registration Statement has been declared effective by the Commission under the Securities Act.
No stop order suspending the effectiveness of the Registration Statement is in effect and no proceedings for such purpose or pursuant
to Section 8A of the Securities Act have been instituted or are pending or, to the knowledge of the Company, are threatened by the
Commission. The Company meets all applicable requirements for use of Form S-3 under the Securities Act.
The Prospectus when filed complied in all material
respects with the Securities Act, and (except as may be permitted by Regulation S-T under the Securities Act) each preliminary prospectus
and the Prospectus delivered to Raymond James for use in connection with the offering of the Shares was identical to the electronically
transmitted copies thereof filed with the Commission pursuant to EDGAR. The Registration Statement and any post-effective amendment thereto,
at the time it became effective and each deemed effective date with respect to Raymond James pursuant to Rule 430B(f)(2) of
the Securities Act and at each Settlement Date, complied and will comply in all material respects with the Securities Act and did not
and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading. The documents incorporated or deemed to be incorporated by reference in the Prospectus,
at the time they were filed with the Commission under the Exchange Act, complied in all material respects with the requirements of the
Exchange Act. The Prospectus (including any Prospectus wrapper), as amended or supplemented, as of its date and at all subsequent times,
including each Representation Date (as defined in Section 7(n)), did not and will not contain any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading. The representations and warranties set forth in the three immediately preceding sentences do not apply
to statements in or omissions from the Registration Statement or any post-effective amendment thereto, the Prospectus or any amendments
or supplements thereto, made in reliance upon and in conformity with information relating to Raymond James furnished to the Company in
writing by Raymond James expressly for use therein, it being understood and agreed that the only such information furnished by Raymond
James to the Company consists of the information described in Section 10(b) below. There are no contracts or other documents
required to be described in the Prospectus or to be filed as exhibits to the Registration Statement which have not been described or filed
as required.
The Company is not an “ineligible issuer”
in connection with the offering of the Shares pursuant to Rules 164, 405 and 433 under the Securities Act. Any free writing prospectus
that the Company is required to file pursuant to Rule 433(d) under the Securities Act has been, or will be, filed with the Commission
in accordance with the requirements of the Securities Act. Each free writing prospectus that the Company has filed, or is required to
file, pursuant to Rule 433(d) under the Securities Act or that was prepared by or on behalf of or used or referred to by the
Company complies or will comply in all material respects with the requirements of Rule 433 under the Securities Act including timely
filing with the Commission or retention where required and legending, and each such free writing prospectus, as of its issue date and
as of each Applicable Time, did not, does not and will not include any information that conflicted, conflicts with or will conflict with
the information contained in the Registration Statement or the Prospectus, including any document incorporated by reference therein, that
has not been superseded or modified. Except for the free writing prospectuses, if any, identified in Schedule 3 hereto furnished to Raymond
James before first use, the Company has not used or referred to, and will not, without Raymond James’ prior consent, use or refer
to, any free writing prospectus.
b) Offering
Materials Furnished to Raymond James. The Company has delivered to Raymond James a complete copy of the Registration Statement, each
amendment thereto and each opinion, consent and certificate of experts filed as a part thereof, and conformed copies of the Registration
Statement, each amendment thereto (without exhibits) and the Prospectus, as amended or supplemented, and any freewriting prospectus reviewed
and consented to in writing by Raymond James, in such quantities and at such places as Raymond James has reasonably requested.
c) Distribution
of Offering Material By the Company. The Company has not distributed and will not distribute, prior to the completion of Raymond James’
sale of all of the Placement Shares pursuant to this Agreement, any offering material in connection with the offering and sale of the
Shares other than the Prospectus, any free writing prospectus reviewed and consented to in writing by Raymond James or the Registration
Statement.
d) The
Agreement. This Agreement has been duly authorized, executed and delivered by, and is a valid and binding agreement of, the Company,
enforceable against the Company in accordance with its terms, except as rights to indemnification and contribution hereunder may be limited
by applicable law and except as the enforcement hereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws relating to or affecting the rights and remedies of creditors or by general equitable principles regardless of whether considered
in a proceeding in equity or at law.
e) Authorization
of the Shares. The Shares have been duly authorized for issuance and sale pursuant to this Agreement and, when issued and delivered
by the Company and paid for in accordance with this Agreement, will be validly issued, fully paid and nonassessable, and the issuance
and sale of the Shares is not subject to any preemptive rights, rights of first refusal or other similar rights to subscribe for or purchase
the Shares.
f) No
Applicable Registration or Other Similar Rights. There are no persons with registration or other similar rights to have any equity
or debt securities registered for sale under the Registration Statement or included in the offering contemplated by this Agreement.
g) No
Material Adverse Change. Except as otherwise disclosed in the Registration Statement and the Prospectus, subsequent to the respective
dates as of which information is given in the Registration Statement and the Prospectus: (i) there has been no material adverse change,
or any development that could reasonably be expected to result in a material adverse change, in the condition, financial or otherwise,
or in the properties, business, results of operations or prospects, whether or not arising from transactions in the ordinary course of
business, of the Company and its subsidiaries, considered as one entity (any such change is called a “Material Adverse Change”);
(ii) the Company and its subsidiaries, considered as one entity, have not incurred any material liability or obligation, indirect,
direct or contingent, not in the ordinary course of business nor entered into any material transaction or agreement not in the ordinary
course of business; and (iii) there has been no dividend or other distribution of any kind declared, paid or made by the Company
(other than regular quarterly cash dividends) or, except for dividends paid to the Company or other subsidiaries, any of its subsidiaries
on any class of capital stock or repurchase or redemption by the Company or any of its subsidiaries of any class of capital stock.
h) Independent
Accountants. Grant Thornton LLP, who have expressed their opinion with respect to the financial statements (which term as used in
this Agreement includes the related notes thereto) of the Company and its subsidiaries incorporated by reference in the Registration Statement
and the Prospectus are an independent registered public accounting firm with respect to the Company as required by the Securities Act
and the Exchange Act and the applicable published rules and regulations thereunder.
i) Preparation
of the Financial Statements. The financial statements of the Company and its subsidiaries included and incorporated by reference in
the Registration Statement and the Prospectus present fairly in all material respects the consolidated financial position of the Company
and its subsidiaries as of and at the dates indicated and the results of their operations and cash flows for the periods specified. Such
financial statements have been prepared in conformity with GAAP (as defined in Section 23(b)), except as may be expressly stated
in the related notes thereto. No other financial statements or supporting schedules of the Company and its subsidiaries are required to
be included or incorporated by reference in the Registration Statement or the Prospectus. All disclosures contained in the Prospectus
and the Registration Statement regarding “non-GAAP financial measures” (as such term is defined by the rules and regulations
of the Commission) comply with Regulation G of the Exchange Act and Item 10 of Regulation S-K under the Securities Act, to the extent
applicable. No person who has been suspended or barred from being associated with a registered public accounting firm, or who has failed
to comply with any sanction pursuant to Rule 5300 promulgated by the PCAOB, has participated in or otherwise aided the preparation
of, or audited, the financial statements, supporting schedules or other financial data of the Company and its subsidiaries incorporated
by reference in the Registration Statement and the Prospectus (it being agreed that the foregoing representation is made only to the Company’s
actual knowledge without independent investigation with respect to any person who is not a director, officer or employee of the Company
or any of its subsidiaries). The interactive data in eXtensible Business Reporting Language incorporated by reference in the Registration
Statement and the Prospectus fairly presents the required information called for in all material respects and has been prepared in accordance
with the Commission’s rules and guidelines applicable thereto.
j) Company’s
Accounting System. The Company and each of its subsidiaries maintain a system of internal accounting controls sufficient to provide
reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorization;
(ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain
accountability for assets; (iii) access to assets is permitted only in accordance with management’s general or specific authorization;
(iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken
with respect to any differences; and (v) the interactive data in eXtensible Business Reporting Language (“XBRL”)
incorporated by reference in the Registration Statement and the Prospectus fairly presents the information called for in all material
respects and is prepared in accordance with the Commission’s rules and guidelines applicable thereto.
k) Incorporation
and Good Standing of the Company and its Subsidiaries. Each of the Company and its subsidiaries has been duly incorporated or organized,
as the case may be, and is validly existing as a corporation, partnership, limited liability company or trust, as applicable, in good
standing under the laws of the jurisdiction of its incorporation or organization and has the power and authority (corporate or other)
to own, lease and operate its properties and to conduct its business as described in the Prospectus and, in the case of the Company, to
enter into and perform its obligations under this Agreement. Each of the Company and each subsidiary is duly qualified as a foreign corporation,
partnership, limited liability company or trust, as applicable, to transact business and is in good standing in each jurisdiction in which
such qualification is required, whether by reason of the ownership or leasing of property or the conduct of business, except where the
failure to be so qualified and in good standing would not, individually or in the aggregate, result in a Material Adverse Change. All
of the issued and outstanding capital stock or other equity or ownership interests of each subsidiary have been duly authorized and validly
issued, are fully paid and nonassessable and, except as set forth in the Prospectus, are owned by the Company, directly or through subsidiaries,
free and clear of any security interest, mortgage, pledge, lien, encumbrance or adverse claim. The Company does not own or control, directly
or indirectly, any corporation, association or other entity other than (i) the subsidiaries listed in Exhibit 21.1 to the Company’s
Annual Report on Form 10-K for the year fiscal ended December 31, 2023 and (ii) such other entities omitted from Exhibit 21.1
which, when such omitted entities are considered in the aggregate as a single subsidiary, would not constitute a “significant subsidiary”
within the meaning of Rule 1-02(w) of Regulation S-X under the Exchange Act (“Regulation S-X”).
l) Capitalization
and Other Capital Stock Matters. The authorized, issued and outstanding capital stock of the Company is as set forth in the Prospectus
(other than for subsequent issuances, if any, described in the Prospectus or pursuant to employee benefit plans described in the Prospectus
or upon the exercise of outstanding options or vesting of restricted stock units, in each case described in the Prospectus, and other
than Shares sold pursuant to this Agreement prior to the filing of the Company’s next annual report on Form 10-K or quarterly
report on Form 10-Q). The Shares conform in all material respects to the description thereof contained in the Prospectus. All of
the issued and outstanding Shares have been duly authorized and validly issued and are fully paid and nonassessable. None of the outstanding
Shares was issued in violation of any preemptive rights, rights of first refusal or other similar rights to subscribe for or purchase
securities of the Company. There are no authorized or outstanding options, warrants, preemptive rights, rights of first refusal or other
rights to purchase, or equity or debt securities convertible into or exchangeable or exercisable for, any capital stock of the Company
or any of its subsidiaries other than those disclosed in the Prospectus and other than for subsequent issuances, if any, pursuant to the
employee benefit plans that are described in the Prospectus. The description of the Company’s stock option, stock bonus and other
stock plans or arrangements, and the options or other rights granted thereunder, set forth in the Prospectus accurately and fairly presents
in all material respects the information required to be shown with respect to such plans, arrangements, options and rights.
m) Exchange
Listing. The Shares are registered pursuant to Section 12(b) or 12(g) of the Exchange Act and have been approved for
listing on the Exchange, subject to notice of issuance. The Company has taken no action designed to, or that would be reasonably expected
to have the effect of, terminating the registration of the Shares under the Exchange Act or delisting the Shares from the Exchange, nor
has the Company received any notification that the Commission or the Exchange is contemplating terminating such registration or listing.
n) Non-Contravention
of Laws and Existing Instruments; No Further Authorizations or Approvals Required. Neither the Company nor any of its subsidiaries
is (i) in breach or violation of (A) its charter or bylaws, partnership agreement or operating agreement or similar organizational
document, as applicable, (B) any applicable federal, state, local or foreign law, regulation or rule, except as would not, individually
or in the aggregate, result in a Material Adverse Change, or (C) any applicable rule or regulation of any self-regulatory organization
or other non-governmental regulatory authority (including, without limitation, the rules and regulations of the Exchange) or (ii) in
default in any material respect (“Default”) under any indenture, mortgage, loan or credit agreement, note, contract,
franchise, lease or other instrument to which the Company or any of its subsidiaries is a party or by which it or any of them may be bound
(including, without limitation, any credit agreement, indenture, pledge agreement, security agreement or other instrument or agreement
evidencing, guaranteeing or securing indebtedness of the Company or any of its subsidiaries), or to which any of the property or assets
of the Company or any of its subsidiaries is subject (each, an “Existing Instrument”), except in the case of
clauses (i)(C) and (ii) above, for such breaches, violations or Defaults as would not, individually or in the aggregate, result
in a Material Adverse Change. The Company’s execution, delivery and performance of this Agreement, consummation of the transactions
contemplated hereby and by the Prospectus and the issuance and sale of the Shares (i) will not conflict with or constitute a breach
of, or Default or a Debt Repayment Triggering Event (as defined below) under, or result in the creation or imposition of any lien, charge
or encumbrance upon any property or assets of the Company or any of its subsidiaries pursuant to, or require the consent of any other
party to, any Existing Instrument and (ii) will not result in any violation of any federal, state, local or foreign law, regulation
or rule, administrative or court decree or any rule or regulation of any self-regulatory organization or other non-governmental regulatory
authority (including, without limitation, the rules and regulations of the Exchange) applicable to the Company or any subsidiary,
except for those conflicts, breaches, defaults, Debt Repayment Triggering Events or violations that would not, individually or in the
aggregate, result in a Material Adverse Change.
No consent, approval, authorization or other order
of, or registration or filing with, any court or other governmental or regulatory authority or agency, is required for the Company’s
execution, delivery and performance of this Agreement and consummation of the transactions contemplated hereby and by the Prospectus,
except such as have been obtained or made by the Company and are in full force and effect under the Securities Act, applicable state securities
or blue sky laws and from the Exchange. As used herein, a “Debt Repayment Triggering Event” means any event
or condition which gives, or with the giving of notice or lapse of time would give, the holder of any note, debenture or other evidence
of indebtedness (or any person acting on such holder’s behalf) the right to require the repurchase, redemption or repayment of all
or a portion of such indebtedness by the Company or any of its subsidiaries.
o) No
Material Actions or Proceedings. Except as disclosed in the Registration Statement and the Prospectus, there are no legal or governmental
actions, suits or proceedings pending or, to the Company’s knowledge, threatened (i) against the Company or any of its subsidiaries,
(ii) which have as the subject thereof any officer or director of, or property owned or leased by, the Company or any of its subsidiaries
or (iii) relating to environmental or discrimination matters, where in any such case (A) there is a reasonable possibility that
such action, suit or proceeding might be determined adversely to the Company, such subsidiary or such officer or director, and
(B) any such action, suit or proceeding, if so determined adversely, would reasonably be expected to result in a Material Adverse
Change or adversely affect the consummation of the transactions contemplated by this Agreement. No material labor dispute with the employees
of the Company or any of its subsidiaries exists or, to the Company’s knowledge, is threatened or imminent, which would reasonably
be expected to result in a Material Adverse Change.
p) Intellectual
Property Rights. The Company and its subsidiaries own or possess sufficient trademarks, trade names, patent rights, copyrights, domain
names, licenses, approvals, trade secrets and other similar rights (collectively, “Intellectual Property Rights”)
reasonably necessary to conduct their businesses as now conducted. Neither the Company nor any of its subsidiaries has received any notice
of infringement or conflict with asserted Intellectual Property Rights of others, which would reasonably be expected to result in a Material
Adverse Change. None of the technology employed by the Company or any of its subsidiaries has been obtained or is being used by the Company
or any of its subsidiaries in violation of any contractual obligation binding on the Company or any of its subsidiaries or any
of its or its subsidiaries’ officers, directors or employees or otherwise in violation of the rights of any persons, except for
such violations that would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Change.
q) All
Necessary Permits, etc. The Company and each subsidiary possess such valid and current certificates, authorizations, licenses
or permits issued by the appropriate state, local, federal or foreign regulatory agencies or bodies necessary to conduct their respective
businesses, other than those the failure to possess or own has not and would not reasonably be expected to result in a Material Adverse
Change, and neither the Company nor any subsidiary has received any notice of proceedings relating to the revocation or modification
of, or non-compliance with, any such certificate, authorization, license or permit which, singly or in the aggregate, if the subject of
an unfavorable decision, ruling or finding, would reasonably be expected to result in a Material Adverse Change.
r) Title
to Properties. Except as disclosed in the Registration Statement and the Prospectus, the Company and each of its subsidiaries has
good and valid title to all of the real and personal property and other assets reflected as owned in the financial statements referred
to in Section 6(i) above (or elsewhere in the Prospectus), in each case free and clear of any security interests, mortgages,
liens, encumbrances, adverse claims and other defects, except such as do not have or result in a Material Adverse Change to the use of
such property by the Company or such subsidiary. The real property, improvements, equipment and personal property held under lease
by the Company or any subsidiary are held under valid and enforceable leases, with such exceptions as are not material and do not materially
interfere with the use made or proposed to be made of such real property, improvements, equipment or personal property by the Company
or such subsidiary.
s) Compliance
with the Sarbanes-Oxley Act. The Company and its subsidiaries and to the knowledge of the Company the officers and directors of the
Company and its subsidiaries, in their capacities as such, are, and at the Settlement Date and any Applicable Time will be, in compliance
in all material respects with the provisions of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated thereunder
or implementing the provisions thereof.
t) Tax
Law Compliance. The Company and its subsidiaries have filed all necessary federal, state and foreign income and franchise tax returns
(other than certain state or local tax returns, as to which the failure to file, individually or in the aggregate, would not result in
a Material Adverse Change) and have paid all taxes required to be paid by any of them and, if due and payable, any related or similar
assessment, fine or penalty levied against any of them, except for any such assessment, fine or penalty that is currently being
contested in good faith or that if not paid, would not reasonably be expected to have a Material Adverse Change. The Company has made
adequate charges, accruals and reserves in the applicable financial statements referred to in Section 6(i) above in respect
of all federal, state and foreign income and franchise taxes for all periods as to which the tax liability of the Company or any of its
subsidiaries has not been finally determined.
u) Company
Not an “Investment Company”. The Company is not, and will not be, either after receipt of payment for the Shares or after
the application of the proceeds therefrom as described under “Use of Proceeds” in the Prospectus, an “investment
company” within the meaning of the Investment Company Act of 1940, as amended.
v) Insurance.
Each of the Company and its subsidiaries are insured with policies in such amounts and with such deductibles and covering such risks as
it reasonably deems adequate for their businesses. The Company has no reason to believe that it or any subsidiary will not be able (i) to
renew its existing insurance coverage as and when such policies expire or (ii) to obtain comparable coverage from similar
institutions as may be necessary or appropriate to conduct its business as now conducted and at a cost that would not result in a Material
Adverse Change.
w) No
Price Stabilization or Manipulation; Compliance with Regulation M. The Common Stock is an “actively traded security” excepted
from the requirements of Rule 101 of Regulation M under the Exchange Act by subsection (c)(1) of such rule. Neither the Company
nor any of its subsidiaries has taken, directly or indirectly, any action designed to or that might be reasonably expected to cause or
result in stabilization or manipulation of the price of the Shares to facilitate the sale or resale of the Shares. The Company acknowledges
that Raymond James may engage in passive market making transactions in the Shares on the Exchange in accordance with Regulation M under
the Exchange Act (“Regulation M”). The Company acknowledges and agrees that Raymond James has informed the Company
that Raymond James may, to the extent permitted under the Exchange Act, purchase and sell shares of Common Stock for its own account while
this Agreement is in effect; provided that the Company shall not be deemed to have authorized or consented to any such purchases
or sales by Raymond James.
x) Related
Party Transactions. There are no business relationships or related-party transactions involving the Company or any of its subsidiaries
or any other person required to be described in the Registration Statement and the Prospectus which have not been described as required
in all material respects. Neither the Company nor any of its subsidiaries has extended or maintained credit, arranged for the extension
of credit, or renewed any extension of credit, in the form of a personal loan, to or for any director or executive officer (or equivalent
thereof) of the Company and/or such subsidiary except for such extensions of credit as are permitted by Section 13(k) of the
Exchange Act.
y) Statistical
and Market-Related Data. The Company believes that, as of the effective date of the Registration Statement, the statistical, industry
and market-related data included in the Registration Statement and the Prospectus is reliable and accurate.
z) No
Unlawful Contributions or Other Payments. Neither the Company nor any of its subsidiaries nor, to the Company’s knowledge, any
employee or agent of the Company or any subsidiary, has made any contribution or other payment to any official of, or candidate for, any
federal, state or foreign office in violation of any law or of the character required to be disclosed in the Registration Statement and
the Prospectus.
aa) Disclosure
Controls and Procedures; Deficiencies in or Changes to Internal Control Over Financial Reporting. The Company has established and
maintains disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)), that complies with
the requirements of the Exchange Act and that has been designed to ensure that information required to be disclosed by the Company, including
its consolidated subsidiaries, in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported
within the time periods specified in the Commission’s rules and forms, including controls and procedures designed to ensure
that such information is accumulated and communicated to the Company’s management as appropriate to allow timely decisions regarding
required disclosure. The Company and its subsidiaries have carried out evaluations of the effectiveness of their disclosure controls and
procedures as required by Rule 13a-15 of the Exchange Act and concluded that such disclosure controls and procedures were effective.
Except as disclosed in the Registration Statement or Prospectus, there are no material weaknesses in the Company’s internal control
over financial reporting (whether or not remediated). The Company’s independent auditors and the Audit Committee of the Board
of Directors of the Company have been advised of (i) all significant deficiencies and material weaknesses in the design or operation
of internal control over financial reporting which could adversely affect the Company’s ability to record, process, summarize and
report financial data, and (ii) any fraud, whether or not material, that involves management or other employees who have a significant
role in the Company’s internal control over financial reporting. Since December 31, 2023, there has been no change in the Company’s
internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s
internal control over financial reporting.
bb) Compliance
with Environmental Laws. Except as would not, singly or in the aggregate, reasonably be expected to result in a Material Adverse Change,
(i) neither the Company nor any of its subsidiaries is in violation of any federal, state, local or foreign law or regulation relating
to pollution or protection of human health, the environment (including, without limitation, ambient air, surface water, groundwater, land
surface or subsurface strata) or wildlife, including, without limitation, laws and regulations relating to the release or threatened
release of chemicals, pollutants, contaminants, wastes, toxic substances, hazardous substances, petroleum or petroleum products (collectively,
“Hazardous Materials”) or to the manufacture, processing, distribution, use, treatment, storage, disposal, transport
or handling of Hazardous Materials (collectively, “Environmental Laws”), (ii) the Company and its subsidiaries
have all permits, authorizations and approvals required under any applicable Environmental Laws and are each in compliance with their
requirements, or (iii) there are no pending or, to the Company’s knowledge, threatened administrative, regulatory or judicial
actions, suits, demands, demand letters, claims, liens, notices of noncompliance or violation, investigation or proceedings relating to
any Environmental Law against the Company or any of its subsidiaries.
cc) ERISA
Compliance. Except as otherwise disclosed in the Registration Statement and the Prospectus, to the Company’s knowledge, the
Company and its subsidiaries and any “employee benefit plan” (as defined under the Employee Retirement Income Security Act
of 1974, as amended, and the regulations and published interpretations thereunder (collectively, “ERISA”)) established
or maintained by the Company, its subsidiaries or their “ERISA Affiliates” (as defined below) are in compliance with ERISA,
except as would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Change. “ERISA
Affiliate” means, with respect to the Company or a subsidiary, any member of any group of organizations described in Sections
414(b), (c), (m) or (o) of the Code of which the Company or such subsidiary is a member. No “reportable event” (as
defined under ERISA) has occurred or is reasonably expected to occur with respect to any “employee pension benefit plan” (as
defined under ERISA) established or maintained by the Company, its subsidiaries or any of their ERISA Affiliates. No “employee
pension benefit plan” established or maintained by the Company, its subsidiaries or any of their ERISA Affiliates, if such “employee
pension benefit plan” were terminated, would have any “amount of unfunded benefit liabilities” (as defined under ERISA).
None of the Company, its subsidiaries or any of their ERISA Affiliates has incurred or reasonably expects to incur any liability under
(i) Title IV of ERISA with respect to termination of, or withdrawal from, any “employee pension benefit plan” or (ii) Sections
412, 4971 or 4975 of the Code or (iii) Section 4980B of the Code as a result of a failure to comply with such Section. Except
as would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Change, each “employee pension
benefit plan” established or maintained by the Company, its subsidiaries or any of their ERISA Affiliates that is intended to be
qualified under Section 401(a) of the Code is so qualified and, to the Company’s knowledge, nothing has occurred, whether
by action or failure to act, which would cause the loss of such qualification.
dd) Brokers.
Except as otherwise disclosed in the Registration Statement and the Prospectus, there is no broker, finder or other party that is entitled
to receive from the Company any brokerage or finder’s fee or other fee or commission as a result of any transactions contemplated
by this Agreement.
ee) Foreign
Corrupt Practices Act. Except as would not reasonably be expected to result in a Material Adverse Change, neither the Company nor
any of its subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee, affiliate or other person acting
on behalf of the Company or any of its subsidiaries is aware of or has taken any action, directly or indirectly, that has resulted or
would result in a violation of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the
“FCPA”) or any other applicable anti-bribery law, including, without limitation, making use of the mails or
any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization
of the payment of any money, or other property, gift, promise to give, or authorization of the giving of anything of value to any “foreign
official” (as such term is defined in the FCPA) or any foreign political party or official thereof or any candidate for foreign
political office, in contravention of the FCPA; and the Company and its subsidiaries and, to the knowledge of the Company, the Company’s
affiliates have conducted their respective businesses in compliance with the FCPA.
ff) Money
Laundering Laws. The operations of the Company and its subsidiaries are, and have been conducted at all times, in compliance with
applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended,
the money laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and any related or similar
applicable rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money
Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency, authority or body or
any arbitrator involving the Company or any of its subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge
of the Company, threatened.
gg) OFAC.
Neither the Company nor any of its subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee, affiliate
or person acting on behalf of the Company or any of its subsidiaries is currently subject to any U.S. sanctions administered by the Office
of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Company will not directly or indirectly
use the proceeds of this offering, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner
or other person or entity, for the purpose of financing the activities of any person currently subject to any U.S. sanctions administered
by OFAC or to fund any activities of or business with any person in any country or territory that, at the time of such funding, is subject
to any U.S. sanctions administered by OFAC.
hh) Cybersecurity.
(A) The Company is not aware of any current (or event or condition that would reasonably be expected to result in any future) security
breach, unauthorized access or disclosure, or other compromise of the Company’s or its subsidiaries’ information technology
and computer systems, networks, hardware, software, data and databases used, processed or stored by the Company or its subsidiaries or
on behalf of the Company or its subsidiaries (collectively, “IT Systems and Data”), except for any such security breach, unauthorized
access or disclosure, or other compromise of the Company’s or its subsidiaries’ IT Systems and Data that would not be reasonably
expected to, individually or in the aggregate, have a Material Adverse Change and (B) the Company and its subsidiaries have implemented
reasonable controls, policies, procedures and technological safeguards designed to maintain and protect the integrity, operation, redundancy
and security of their IT Systems and Data to be used in connection with the Company’s proposed method of operation. To the Company’s
knowledge, the Company and its subsidiaries are presently in material compliance with all applicable laws and regulations, judgments and
orders of any court or arbitrator or governmental or regulatory authority and contractual obligations relating to the privacy and security
of IT Systems and Data and to the protection of such IT Systems and Data from unauthorized use, access, misappropriation or modification,
except where failure to be so in compliance would not, individually or in the aggregate, have a Material Adverse Change.
ii) Accurate
Disclosure. The statements set forth in the Prospectus under the captions “Description of Capital Stock” insofar as such
statements summarize legal matters, agreements, documents or proceedings discussed therein, are accurate summaries of such legal matters,
agreements, documents or proceedings in all material respects and there are no contracts or documents that are required to be described
in the Prospectus or to be filed as exhibits to the Registration Statement that have not been so described or filed as required. Any certificate
signed by any officer of the Company or any of its subsidiaries and delivered to Raymond James or to counsel for Raymond James shall be
deemed a representation and warranty by the Company to Raymond James as to the matters covered thereby. The Company acknowledges that
Raymond James and, for purposes of the opinions to be delivered pursuant to Section 7 hereof, counsel to the Company and counsel
to Raymond James, will rely upon the accuracy and truthfulness of the foregoing representations and hereby consents to such reliance.
7. Covenants
of the Company. The Company further covenants and agrees with Raymond James that:
a) Registration
Statement Amendments; Securities Act Compliance. After the date of this Agreement and during any period in which a Prospectus relating
to any Placement Shares is required to be delivered by Raymond James under the Securities Act (including in circumstances where such
requirement may be satisfied pursuant to Rule 172 under the Securities Act), the Company shall (i) promptly advise Raymond James
in writing of the receipt of any comments of, or requests for additional or supplemental information from, the Commission; (ii) promptly
advise Raymond James in writing of the time and date of any filing of any post-effective amendment to the Registration Statement or any
amendment or supplement to any free writing prospectus or the Prospectus; (iii) promptly advise Raymond James in writing of the time
and date that any post-effective amendment to the Registration Statement becomes effective; (iv) promptly advise Raymond James in
writing of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or any post-effective
amendment thereto or any amendment or supplement to the Prospectus or of any order preventing or suspending the use of any free writing
prospectus or the Prospectus, or of any proceedings to remove, suspend or terminate from listing or quotation the Shares from any securities
exchange upon which they are listed for trading or included or designated for quotation, or of the threatening or initiation of any proceedings
for any of such purposes or pursuant to Section 8A of the Securities Act; (v) prepare and file with the Commission, promptly
upon Raymond James’ request, any amendments or supplements to the Registration Statement or Prospectus that, in counsel for Raymond
James’ reasonable opinion, may be necessary or advisable in connection with the distribution of the Placement Shares by Raymond
James (provided however, that the failure of Raymond James to make such request shall not relieve the Company of any obligation
or liability hereunder, or affect Raymond James’ right to rely on the representations and warranties made by the Company in this
Agreement); and (vi) furnish to Raymond James at the time of filing thereof a copy of any document that upon filing is deemed to
be incorporated by reference into the Registration Statement or Prospectus, except for those documents available via EDGAR. If the Commission
shall enter any such stop order described in clause (iv) at any time, the Company will use its reasonable efforts to obtain the lifting
of such order at the earliest possible moment. Additionally, the Company agrees that it shall comply with the provisions of Rule 424(b),
Rule 433 and Rule 430B, as applicable, under the Securities Act and will use its reasonable efforts to confirm that any filings
made by the Company under such Rule 424(b) or Rule 433 are made in a timely manner.
b) Delivery
of Registration Statement and Prospectus. The Company shall furnish to Raymond James and its counsel, without charge, as many copies
as Raymond James may reasonably request of the Registration Statement (including exhibits thereto), the Prospectus (including all documents
incorporated by reference therein) and all amendments and supplements to the Registration Statement or Prospectus that are filed with
the Commission during any period in which a Prospectus relating to the Placement Shares is required to be delivered under the Securities
Act (including all documents filed with the Commission during such period that are deemed to be incorporated by reference therein), in
each case as soon as reasonably practicable, and, at Raymond James’ request, will also furnish copies of the Prospectus to each
exchange or market on which sales of the Placement Shares may be made; provided however that the Company shall not be required
to furnish any document (other than the Prospectus) to Raymond James to the extent such document is available to Raymond James or the
public on EDGAR.
c) Raymond
James’ Review of Proposed Amendments and Supplements. Prior to amending or supplementing the Registration Statement or the Prospectus,
the Company shall furnish to Raymond James for review, a reasonable amount of time prior to the proposed time of filing or use thereof,
a copy of each such proposed amendment or supplement, and the Company shall not file or use any such proposed amendment or supplement
without Raymond James’ consent (not to be unreasonably withheld or delayed), and to file with the Commission within the applicable
period specified in Rule 424(b) under the Securities Act any prospectus required to be filed pursuant to such Rule.
d) Free
Writing Prospectuses. The Company shall furnish to Raymond James for review, a reasonable amount of time prior to the proposed time
of filing or use thereof, a copy of each proposed issuer free writing prospectus or any amendment or supplement thereto to be prepared
by or on behalf of, used by, or referred to by the Company, and the Company shall not file, use or refer to any issuer proposed free writing
prospectus or any amendment or supplement thereto without Raymond James’ consent (not to be unreasonably withheld or delayed). The
Company shall furnish to Raymond James, without charge, as many copies of any free writing prospectus prepared by or on behalf of, or
used by the Company, as Raymond James may reasonably request, except for those documents available via EDGAR. If at any time when a prospectus
is required by the Securities Act (including, without limitation, pursuant to Rule 173(d)) to be delivered in connection with sales
of the Placement Shares there occurred or occurs an event or development as a result of which any free writing prospectus prepared by
or on behalf of, used by, or referred to by the Company conflicted or would conflict with the information contained in the Registration
Statement or, when taken together with the Registration Statement, included or would include an untrue statement of a material fact or
omitted or would omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances prevailing
at that subsequent time, not misleading, the Company shall promptly amend or supplement such free writing prospectus to eliminate or correct
such conflict or so that the statements in such free writing prospectus as so amended or supplemented will not include an untrue statement
of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances
prevailing at such subsequent time, not misleading, as the case may be; provided, however, that prior to amending or supplementing
any such free writing prospectus, the Company shall furnish to Raymond James for review, a reasonable amount of time prior to the proposed
time of filing or use thereof, a copy of such proposed amended or supplemented free writing prospectus and the Company shall not file,
use or refer to any such amended or supplemented free writing prospectus without Raymond James’ consent (not to be unreasonably
withheld or delayed).
e) Delivery
of Prospectus; Subsequent Changes. During any period in which a Prospectus relating to the Placement Shares is required to be delivered
by Raymond James under the Securities Act with respect to a pending sale of the Placement Shares (including in circumstances where such
requirement may be satisfied pursuant to Rule 172 under the Securities Act), the Company will comply in all material respects with
the requirements imposed upon it by the Securities Act, as from time to time in force, and to file on or before their respective due dates
all reports and any definitive proxy or information statements required to be filed by the Company with the Commission pursuant to Sections
13(a), 13(c), 14, 15(d) or any other provision of or under the Exchange Act. If during such period any event shall occur or condition
exist as a result of which it is necessary to amend or supplement the Prospectus so that the Prospectus does not include an untrue statement
of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances
then existing, not misleading, or if in the opinion of counsel for Raymond James it is otherwise necessary to amend or supplement the
Prospectus to comply with applicable law, including the Securities Act, the Company will promptly notify Raymond James to suspend the
offering of Placement Shares during such period and the Company agrees (subject to Section 7(c) and 7(d)) to promptly prepare,
file with the Commission and furnish at its own expense to Raymond James, amendments or supplements to the Prospectus so that the statements
in the Prospectus as so amended or supplemented will not include an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the circumstances then existing, be misleading or so that the Prospectus,
as amended or supplemented, will comply with applicable law including the Securities Act. Neither Raymond James’ consent to, nor
delivery of, any such amendment or supplement shall constitute a waiver of any of the Company’s obligations under Sections 7(c) or
(d).
f) Listing
of Placement Shares. During any period in which the Prospectus relating to the Placement Shares is required to be delivered by Raymond
James under the Securities Act with respect to a pending sale of the Placement Shares (including in circumstances where such requirement
may be satisfied pursuant to Rule 172 under the Securities Act), the Company will use its commercially reasonable efforts
to cause the Placement Shares to be listed on the Exchange.
g) Earnings
Statement. As soon as practicable, but in any event no later than 15 months after the effective date of the Registration Statement
(as such date is defined in Rule 158(c) under the Securities Act), the Company will make generally available to its security
holders an earnings statement (which need not be audited) complying with Section 11(a) of the Securities Act and the rules and
regulations of the Commission thereunder.
h) Expenses.
The Company agrees to pay all costs, fees and expenses incurred in connection with the performance of its obligations hereunder and in
connection with the transactions contemplated hereby, including without limitation (i) all expenses incident to the issuance and
delivery of the Placement Shares (including all printing and engraving costs); (ii) all fees and expenses of the registrar and transfer
agent of the Placement Shares; (iii) all necessary issue, transfer and other stamp taxes in connection with the issuance and sale
of the Placement Shares to Raymond James; (iv) all fees and expenses of the Company’s counsel, independent public or certified
public accountants and other advisors; (v) all costs and expenses incurred in connection with the preparation, printing, filing,
shipping and distribution of the Registration Statement (including financial statements, exhibits, schedules, consents and certificates
of experts), the Prospectus, any free writing prospectus prepared by or on behalf of, used by, or referred to by the Company, and all
amendments and supplements thereto, and this Agreement; (vi) all filing fees, attorneys’ fees and expenses incurred by the
Company or Raymond James in connection with qualifying or registering (or obtaining exemptions from the qualification or registration
of) all or any part of the Placement Shares for offer and sale under the state securities or blue sky laws or the provincial securities
laws of Canada, and, if requested by Raymond James, preparing and printing a “Blue Sky Survey” or memorandum and a “Canadian
wrapper,” and any supplements thereto, advising Raymond James of such qualifications, registrations and exemptions; (vii) the
filing fees incident to, and the reasonable fees and expenses of counsel for Raymond James in connection with, FINRA’s review, if
any, and approval of Raymond James’s participation in the offering and distribution of the Placement Shares; provided that the fees
of Raymond James’s counsel in connection therewith and with clause (vi) above shall not exceed an aggregate of $10,000; (viii) the
fees and expenses associated with including the Placement Shares on the Exchange; (ix) all other fees, costs and expenses of the
nature referred to in Item 14 of Part II of the Registration Statement; and (x) if Shares having an aggregate offering price
of $10.0 million or more have not been offered and sold under this Agreement by June 30, 2025 (or such earlier date at which the
Company terminates this Agreement (the “Determination Date”)), the Company shall reimburse Raymond James for
all of its reasonable out of pocket expenses, including the reasonable fees and disbursements of counsel to Raymond James, in connection
with the transactions contemplated by this Agreement (the “Expenses”); provided that the Company will
not be obligated to reimburse Raymond James any Expenses pursuant to this Section 7(h)(x), in excess of $30,000 in the aggregate.
The Expenses shall be due and payable by the Company within five (5) business days of the Determination Date. Except as provided
in this Section 7(h), Section 10 and Section 11 hereof, Raymond James shall pay its own expenses, including the fees and
disbursements of its counsel.
i) Use
of Proceeds. The Company will apply the net proceeds from the sale of the Shares to be sold by it hereunder in accordance with the
statements under the caption “Use of Proceeds” in the Prospectus.
j) Notice
of Other Sales. During the pendency of any Placement Notice given hereunder, the Company shall provide Raymond James written notice
as promptly as reasonably practicable before it offers to sell, contracts to sell, sells, grants any option to sell or otherwise disposes
of any shares of Common Stock (other than Placement Shares offered pursuant to the provisions of the Agreement) or securities convertible
into or exchangeable for Common Stock, warrants or any rights to purchase or acquire Common Stock; provided, that such notice shall
not be required in connection with (i) the issuance, grant or sale of Common Stock, options to purchase Common Stock or Common Stock
issuable upon the exercise of options or other equity awards pursuant to any stock option, stock bonus or other stock or compensatory
plan or arrangement described in the Prospectus, (ii) the issuance of securities in connection with an acquisition, merger or sale
or purchase of assets described in the Prospectus or (iii) the issuance or sale of Common Stock pursuant to any dividend reinvestment
plan that the Company may adopt from time to time provided the implementation of such is disclosed to Raymond James in advance.
k) Change
of Circumstances. The Company will, at any time during the pendency of a Placement Notice, advise Raymond James as promptly as reasonably
practicable after it shall have received notice or obtained knowledge thereof, of any information or fact that would alter or affect in
any material respect any opinion, certificate, letter or other document provided to Raymond James pursuant to this Agreement.
l) Due
Diligence Cooperation. The Company will cooperate with any commercially reasonable due diligence review conducted by Raymond James,
or its agents and counsel, in connection with the transactions contemplated hereby, including, without limitation, providing information
and making available documents and senior officers, upon reasonable notice during regular business hours and at the Company’s principal
offices, as Raymond James may reasonably request (i) on or prior to the date that the first Shares are sold pursuant to the terms
of this Agreement and (ii) prior to each Representation Date. The Company will make available its appropriate officers and cause
such officers to participate in a call with Raymond James and its counsel prior to each Representation Date (including, without limitation,
the availability of the chief financial officer to respond to questions regarding the business and financial condition of the Company)
and otherwise as Raymond James may reasonably request; such call shall be for the purpose of updating the Agent’s due diligence
review of the Company in connection with the transactions contemplated hereby. The obligations set forth in the preceding sentence of
this Section 7(l) shall be suspended following delivery of written notice to Raymond James specifying that the Company does
not intend to sell Shares under this Agreement until notice to the contrary is provided (such time period, a “Suspension Period”).
Following delivery of notice to Raymond James that the Company intends to recommence sales of Shares under this Agreement, the provisions
of this Section 7(l) shall once again be operative.
m) Required
Filings Relating to Placement of Placement Shares. The Company agrees that on or prior to such dates as the Securities Act shall require,
the Company will (i) file and disclose in a prospectus supplement with the Commission under the applicable paragraph of Rule 424(b) under
the Securities Act or (ii) disclose in its annual reports on Form 10-K, quarterly reports on Form 10-Q or current reports
on Form 8-K, as applicable, the number of Shares sold through Raymond James under the Agreement, the Net Proceeds to the Company,
the compensation paid by the Company with respect to sales of Shares pursuant to the Agreement during the relevant period and any
other information regarding the Placement Shares that the Company reasonably believes is required to comply with the Securities Act. The
Company agrees to deliver such number of copies of each such prospectus supplement (if any) to each exchange or market on which such sales
were effected as may be required by the rules or regulations of such exchange or market.
n) Representation
Dates; Certificate. On or prior to the date that the first Shares are sold pursuant to the terms of this Agreement and (A) each
time the Company (i) files the Prospectus relating to the Placement Shares or amends or supplements the Registration Statement or
the Prospectus relating to the Placement Shares (other than a prospectus supplement filed in accordance with Section 7(m) of
this Agreement) by means of a post-effective amendment, sticker, or supplement but not by means of incorporation of documents by reference
into the Registration Statement or the Prospectus relating to the Placement Shares; (ii) files an annual report on Form 10-K
under the Exchange Act; (iii) files its quarterly reports on Form 10-Q under the Exchange Act; or (iv) files a report on
Form 8-K containing amended financial information (other than an earnings release, to “furnish” information pursuant
to Items 2.02 or 7.01 of Form 8-K, and other than a report on Form 8-K containing financial information of a tenant of the Company
or its subsidiaries) under the Exchange Act and (B) (i) upon recommencement of sales after a suspension in accordance with Section 4
hereof or (ii) upon delivery of a notice to Raymond James that the Company intends to recommence sales after a Suspension Period
in accordance with Section 7(l) hereof and as reasonably requested (each date of filing of one or more of the documents referred
to in clauses (A)(i) through (iv) and any date of recommencement after a suspension referred to in clause (B)(i) and (B)(ii) shall
be a “Representation Date”); the Company shall furnish Raymond James with a certificate, in the form attached
hereto as Exhibit 7(n) within three (3) Exchange Trading Days of any Representation Date if requested by Raymond James.
The requirement to provide a certificate under this Section 7(n) is hereby waived for any Representation Date occurring at a
time at which no Placement Notice is pending, which waiver shall continue until the earlier to occur of the date the Company delivers
a Placement Notice hereunder (which for such calendar quarter shall be considered a Representation Date) and the next occurring Representation
Date; provided however, that such waiver shall not apply for any Representation Date on which the Company files its annual report
on Form 10-K; provided, further, however, that the obligation of the Company under this Section 7(n) shall be deferred
during any Suspension Period and shall recommence upon the termination of such Suspension Period. Notwithstanding the foregoing, if the
Company subsequently decides to sell Placement Shares following a Representation Date when the Company relied on such waiver and did not
provide Raymond with a certificate under this Section 7(n), then before the Company delivers the Placement Notice or Raymond James
sells any Placement Shares, the Company shall provide Raymond James with a certificate, in the form attached hereto as Exhibit 7(n),
dated the date of the Placement Notice.
o) Legal
Opinion of Counsel for the Company. On or prior to the date that the first Shares are sold pursuant to the terms of this Agreement
and within three (3) Trading Days of each Representation Date with respect to which the Company is obligated to deliver a certificate
in the form attached hereto as Exhibit 7(n) for which no waiver is applicable, the Company shall cause to be furnished to Raymond
James the written opinion of Haynes and Boone, LLP or other counsel satisfactory to Raymond James, in form and substance satisfactory
to Raymond James and its counsel, dated the date that the opinion is required to be delivered, substantially similar to the forms attached
hereto as Exhibit 7(o)(1), modified, as necessary, to relate to the Registration Statement and the Prospectus as then amended or
supplemented; provided however, that in lieu of such opinions for subsequent Representation Dates, counsel may furnish Raymond
James with a letter (a “Reliance Letter”) to the effect that Raymond James may rely on a prior opinion delivered
under this Section 7(o) to the same extent as if it were dated the date of such letter (except that statements in such prior
opinion shall be deemed to relate to the Registration Statement and the Prospectus as amended or supplemented at such Representation Date).
The obligation of the Company under this Section 7(o) shall be deferred during any Suspension Period and shall recommence upon
the termination of such Suspension Period.
p) Comfort
Letter. On or prior to the date that the first Shares are sold pursuant to the terms of this Agreement and within three (3) Trading
Days of each Representation Date with respect to which the Company is obligated to deliver a certificate in the form attached hereto as
Exhibit 7(n) for which no waiver is applicable, the Company shall cause (a) Grant Thornton LLP, independent public or certified
public accountants for the Company, to furnish Raymond James a letter dated the date the letter is delivered and addressed to Raymond
James, in form and substance satisfactory to Raymond James, (i) containing statements and information of the type ordinarily included
in accountants’ “comfort letters” to underwriters, delivered according to Accounting Standards Update No. 634
(or any successor bulletin), with respect to the audited and unaudited financial statements and certain financial information of the Company
and its subsidiaries contained in the Registration Statement, the Prospectus, and each free writing prospectus, if any, and, with respect
to each letter dated the date hereof only, the Prospectus, and (ii) confirming that they are (A) independent public or certified
public accountants as required by the Securities Act and the Exchange Act and the applicable published rules and regulations thereunder
(the “Comfort Letter”:, the first such letter, the “Initial Comfort Letter”) and (b) Grant
Thornton LLP to update the Initial Comfort Letter with any information that would have been included in the Initial Comfort Letter had
it been given on such date and modified as necessary to relate to the Registration Statement and the Prospectus, as amended and supplemented
to the date of such letter. The obligations of the Company under this Section 7(p) shall be deferred during any Suspension Period
and shall recommence upon the termination of such Suspension Period.
q) Insurance.
The Company and its subsidiaries shall maintain, or cause to be maintained, insurance in such amounts and covering such risks as
is commercially reasonable and customary for companies engaged in similar businesses in similar industries.
r) FINRA.
The Company will use its commercially reasonable efforts to maintain its status as a “seasoned issuer” under Financial Industry
Regulatory Authority, Inc. (“FINRA”) Rule 5110(b)(7)(C)(i). In the event that the Company is
unable to maintain such status, the Company will promptly notify Raymond James of such matter and cooperate with Raymond James to make
any filings with FINRA as may be required in connection with the offering of the Shares hereunder.
s) Securities
Act and Exchange Act. The Company will use its commercially reasonable efforts to comply with all requirements imposed upon it by
the Securities Act and the Exchange Act as from time to time in force, so far as necessary to permit the continuance of sales of, or dealings
in, the Placement Shares as contemplated by the provisions hereof and the Prospectus, including the filing of any and all documents
required to be filed with the Commission pursuant to Section 13, 14 or 15 of the Exchange Act in the manner and within the time periods
required by the Exchange Act.
t) No
Offer to Sell. Other than a free writing prospectus (as defined in Rule 405 under the Securities Act) approved in advance in
writing by the Company and Raymond James in its capacity as principal or agent hereunder, neither Raymond James nor the Company (including
its agents and representatives, other than Raymond James in its capacity as such) will, directly or indirectly, use, authorize,
approve or refer to any free writing prospectus relating to the Shares to be sold by Raymond James as principal or agent hereunder.
u) Filing
of Free Writing Prospectuses. The Company shall not take any action that would result in Raymond James or the Company being
required to file with the Commission pursuant to Rule 433(d) under the Securities Act a free writing prospectus prepared by
or on behalf of Raymond James that Raymond James otherwise would not have been required to file thereunder.
v) Blue
Sky Compliance. The Company shall cooperate with Raymond James and counsel for Raymond James to qualify or register the Shares for
sale under (or obtain exemptions from the application of) the state securities or blue sky laws or Canadian provincial securities laws
of those jurisdictions designated by Raymond James, shall comply with such laws and shall continue such qualifications, registrations
and exemptions in effect so long as required for the distribution of the Shares. The Company shall not be required to qualify as a foreign
corporation or to take any action that would subject it to general service of process in any such jurisdiction where it is not presently
qualified or where it would be subject to taxation as a foreign corporation. The Company will advise Raymond James promptly of the suspension
of the qualification or registration of (or any such exemption relating to) the Shares for offering, sale or trading in any jurisdiction
or any initiation or threat of any proceeding for any such purpose, and in the event of the issuance of any order suspending such qualification,
registration or exemption, the Company shall use its reasonable efforts to obtain the withdrawal thereof at the earliest possible moment.
w) Transfer
Agent. The Company shall engage and maintain, at its expense, a registrar and transfer agent for the Shares.
x) Company
to Provide Copy of the Prospectus in Form That May be Downloaded from the Internet. The Company shall cause to be prepared
and delivered, at its expense, within one business day from the effective date of this Agreement, to Raymond James an “electronic
Prospectus” to be used by Raymond James in connection with the offering and sale of the Shares. As used herein, the term “electronic
Prospectus” means a form of the Prospectus, and any amendment or supplement thereto, that meets each of the following conditions:
(i) it shall be encoded in an electronic format, satisfactory to Raymond James that may be transmitted electronically by Raymond
James to offerees and purchasers of the Shares; (ii) it shall disclose the same information as the paper Prospectus, except to the
extent that graphic and image material cannot be disseminated electronically, in which case such graphic and image material shall be replaced
in the electronic Prospectus with a fair and accurate narrative description or tabular representation of such material, as appropriate;
and (iii) it shall be in or convertible into a paper format or an electronic format, satisfactory to Raymond James, that will allow
investors to store and have continuously ready access to the Prospectus at any future time, without charge to investors (other than any
fee charged for subscription to the Internet as a whole and for on-line time).
y) Future
Reports to Raymond James. For so long as the delivery of a prospectus is required in connection with the offer and sale of the Shares,
the Company will furnish to Raymond James at 880 Carillon Parkway, St. Petersburg, FL 33716, Attention: Corporate Counsel; ECM Division:
(i) as soon as practicable after the filing thereof, copies of each proxy statement, Annual Report on Form 10-K, Quarterly
Report on Form 10-Q, Current Report on Form 8-K or other report filed by the Company with the Commission, FINRA or any securities
exchange; and (ii) as soon as available, copies of any report or communication of the Company mailed generally to holders of its
capital stock; provided that, in each case, the Company will be deemed to have furnished the foregoing documents as required by this Section to
the extent they are filed with the Commission and publicly accessible on EDGAR.
z) Renewal
of Registration Statement. The date of this Agreement is not more than three years subsequent to the initial effective date of the
Registration Statement (the “Renewal Date”). If, immediately prior to the Renewal Date, this Agreement has not
terminated and a prospectus is required to be delivered or made available by Raymond James under the Securities Act or the Exchange Act
in connection with the sale of Shares, the Company will, prior to the Renewal Date, file, if it has not already done so, a new shelf registration
statement or, if applicable, an automatic shelf registration statement relating to such Shares, and, if such registration statement
is not an automatic shelf registration statement, will use its commercially efforts to cause such registration statement to be declared
effective within 180 days after the Renewal Date, and will take all other reasonable actions necessary or appropriate to permit the public
offer and sale of such Shares to continue as contemplated in the expired registration statement relating to such Securities. References
herein to the “Registration Statement” shall include such new shelf registration statement or automatic shelf registration
statement, as the case may be.
8. Covenant
of Raymond James. Raymond James covenants with the Company not to take any action that would result in the Company being required
to file with the Commission pursuant to Rule 433(d) under the Securities Act a free writing prospectus prepared by or
on behalf of Raymond James that otherwise would not be required to be filed by the Company thereunder, but for the action of Raymond James.
9. Conditions
to Raymond James’s Obligations. The obligations of Raymond James hereunder with respect to a Placement will be subject to the
continuing accuracy of the representations and warranties on the part of the Company set forth in Section 6 hereof, to the timely
performance by the Company of its covenants and other obligations hereunder, to the completion by Raymond James of a due diligence
review satisfactory to Raymond James in its reasonable judgment, and to the continuing satisfaction (or waiver by Raymond James in its
sole discretion) each of the following additional conditions:
a) Registration
Statement Effective. The Registration Statement shall be effective and shall be available for (i) all sales of Placement Shares
issued pursuant to all prior Placement Notices and (ii) the sale of all Placement Shares contemplated to be issued by any
Placement Notice.
b) No
Material Notices. None of the following events shall have occurred and be continuing: (i) receipt by the Company of any notification
with respect to the suspension of the qualification or exemption from qualification of any of the Placement Shares for sale in any jurisdiction
or the initiation or threatening of any proceeding for such purpose; (ii) receipt by the Company or any of its subsidiaries of any
request for additional information from the Commission or any other Governmental Entity during the period of effectiveness of the
Registration Statement, the response to which would require any post-effective amendments or supplements to the Registration Statement
or the Prospectus; and (iii) the occurrence of any event that makes any material statement made in the Registration Statement or
the Prospectus or any material document incorporated or deemed to be incorporated therein by reference untrue in any material respect
or that requires the making of any changes in the Registration Statement, related Prospectus or such documents so that, in the case of
the Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact required to
be stated therein or necessary to make the statements therein not misleading and, that in the case of the Prospectus, it will not contain
any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading.
c) No
Misstatement or Material Omission. The Registration Statement and Prospectus, and any amendment or supplement thereto, shall not contain
any untrue statement of a material fact, or omit to state a material fact that is required to be stated therein or is necessary to make
the statements therein not misleading.
d) Material
Changes. Except as contemplated in the Registration Statement and the Prospectus or disclosed in the Company’s reports filed
with the Commission, there shall not have occurred (i) any Material Adverse Change in the judgment of Raymond James and (ii) any
downgrading, nor shall any notice have been given of any intended or potential downgrading or of any review for a possible change
that does not indicate the direction of the possible change, in the rating accorded any securities of the Company or any of its subsidiaries
by any “nationally recognized statistical rating organization” as such term is defined in Section 3(a)(62) of the Exchange
Act.
e) Company
Counsel Legal Opinion. Raymond James shall have received the opinions of Haynes and Boone LLP and, if applicable, such other counsel
to the Company, in each case as required to be delivered pursuant to Section 7(o) on or before the date on which such delivery
of such opinion is required pursuant to Section 7(o).
f) Opinion
of Counsel for the Agent. On or prior to the date that the first Shares are sold pursuant to the terms of this Agreement and within
three (3) Trading Days of each Representation Date with respect to which the Company is obligated to deliver a certificate in the
form attached hereto as Exhibit 9(f) for which no waiver is applicable, Raymond James shall have received from Mayer Brown LLP,
or such other counsel for Raymond James, such opinion or opinions, dated the date that the opinion is required to be delivered,
with respect to such matters as Raymond James may require, and the Company shall have furnished to such counsel such documents as they
request for the purpose of enabling them to pass upon such matters; provided however, that the obligation of Mayer Brown LLP under
this Section 9(f) shall be deferred during any Suspension Period and shall recommence upon the termination of such Suspension
Period.
g) Comfort
Letter. Raymond James shall have received the Comfort Letter required to be delivered pursuant to Section 7(p) on or before
the date on which such delivery of such letter is required pursuant to Section 7(p).
h) Representation
Certificate. Raymond James shall have received the certificate required to be delivered pursuant to Section 7(n) on or before
the date on which delivery of such certificate is required pursuant to Section 7(n).
i) No
Stop Order; No Objection from FINRA. No stop order suspending the effectiveness of the Registration Statement or any post-effective
amendment to the Registration Statement, shall be in effect and no proceedings for such purpose or pursuant to Section 8A of the
Securities Act shall have been instituted or, to the Company’s knowledge, threatened by the Commission, and FINRA shall have
raised no objection to the fairness and reasonableness of the underwriting terms and arrangements.
j) No
Suspension. Trading in the Shares shall not have been suspended on the Exchange.
k) Other
Materials. On each date on which the Company is required to deliver a certificate pursuant to Section 7(n), Raymond James and
counsel for Raymond James shall have received such information, documents and opinions as they may reasonably request for the purposes
of enabling them to pass upon the issuance and sale of the Shares as contemplated herein, or in order to evidence the accuracy of any
of the representations and warranties, or the satisfaction of any of the conditions or agreements, herein contained; and all proceedings
taken by the Company in connection with the issuance and sale of the Shares as contemplated herein and in connection with the other transactions
contemplated by this Agreement shall be satisfactory in form and substance to Raymond James and counsel for Raymond James.
l) Securities
Act Filings Made. All filings with the Commission required by Rule 424 under the Securities Act to have been filed prior to the
issuance of any Placement Notice hereunder shall have been made within the applicable time period prescribed for such filing by Rule 424.
m) Approval
for Listing. Either (i) the Placement Shares shall either have been approved for listing on the Exchange, subject only to notice
of issuance, or (ii) the Company shall have filed an application for listing of the Placement Shares on the Exchange at, or prior
to, the issuance of any Placement Notice.
n) Actively-Traded
Security. The Common Stock shall be an “actively-traded security” exempted from the requirements of Rule 101
of Regulation M under the Exchange Act by subsection (c)(1) of such rule.
o) No
Termination Event. There shall not have occurred any event that would permit Raymond James to terminate this Agreement pursuant
to Section 13.
10. Indemnification.
a) Indemnification
of Raymond James. Subject to the limitations in this paragraph below, the Company agrees to indemnify and hold harmless Raymond James,
its officers, directors, employees and agents, and each person, if any, who controls Raymond James within the meaning of the Securities
Act or the Exchange Act against any loss, claim, damage, liability or expense (a “Loss” or “Losses”),
as incurred, to which Raymond James or such officer, director, employee, agent or controlling person may become subject, under the Securities
Act, the Exchange Act, other federal or state statutory law or regulation, or at common law or otherwise (including in settlement of any
litigation, subject to Section 10(d) below), insofar as such Loss (or actions in respect thereof as contemplated below) arises
out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement,
or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Securities Act, or
the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein
not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in the Prospectus or
any free writing prospectus that the Company has used, referred to or filed, or is required to file, pursuant to Rule 433(d) of
the Securities Act or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material
fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;
and to reimburse Raymond James and each such officer, director, employee, agent or controlling person for any and all expenses (including
reasonable costs of investigation and the fees and disbursements of counsel chosen by Raymond James) as such expenses are reasonably incurred
by Raymond James or such officer, director, employee, agent or controlling person in connection with investigating, defending, settling,
compromising or paying any such Loss or action; provided, however, that the foregoing indemnity agreement shall not apply
to any Loss to the extent, but only to the extent, arising out of or based upon any untrue statement or alleged untrue statement or omission
or alleged omission made in reliance upon and in conformity with written information furnished to the Company by or on behalf of Raymond
James expressly for use in the Registration Statement, any such free writing prospectus or the Prospectus (or any amendment or supplement
thereto), it being understood and agreed that the only such information furnished by Raymond James to the Company consists of the information
described in subsection (b) below. The indemnity agreement set forth in this Section 10(a) shall be in addition to any
liabilities that the Company may otherwise have.
b) Indemnification
of the Company, its Directors and Officers. Raymond James agrees to indemnify and hold harmless the Company, each of its directors,
each of its officers who signed the Registration Statement and each person, if any, who controls the Company within the meaning of the
Securities Act or the Exchange Act, against any Loss, as incurred, to which the Company, or any such director, officer or controlling
person may become subject, under the Securities Act, the Exchange Act, or other federal or state statutory law or regulation, or at common
law or otherwise (including in settlement of any litigation, subject to Section 10(d) below), insofar as such Loss (or actions
in respect thereof as contemplated below) arises out of or is based upon (i) any untrue statement or alleged untrue statement of
a material fact contained in the Registration Statement, or any amendment thereto, including any information deemed to be a part thereof
pursuant to Rule 430B under the Securities Act, or the omission or alleged omission therefrom of a material fact required
to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement
of a material fact contained in the Prospectus or any free writing prospectus that the Company has used, referred to or filed, or is required
to file, pursuant to Rule 433(d) of the Securities Act or the Prospectus (or any amendment or supplement thereto), or the omission
or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading, in reliance upon and in conformity with written information furnished to the Company by or
on behalf of Raymond James expressly for use therein; and to reimburse the Company, or any such director, officer or controlling person
for any and all expenses (including reasonable costs of investigation and the fees and disbursements of counsel chosen by the Company)
as such expenses are reasonably incurred by the Company, or any such director, officer or controlling person in connection with investigating,
defending, settling, compromising or paying any such Loss or action. The Company hereby acknowledges that the only such information that
Raymond James has furnished to the Company expressly for use in the Registration Statement, the Prospectus, any free writing prospectus
that the Company has filed, or is required to file, pursuant to Rule 433(d) of the Securities Act or the Prospectus (or any
amendment or supplement thereto) are the statements set forth in the eighth paragraph under the caption “Plan of Distribution”
in the Prospectus Supplement dated November 7, 2024 relating to the offering of the Shares.
The indemnity agreement set forth in this Section 10(b) shall
be in addition to any liabilities that Raymond James may otherwise have.
c) Notifications
and Other Indemnification Procedures. Promptly after receipt by an indemnified party under this Section 10 of notice of the commencement
of any action, such indemnified party will, if a claim in respect thereof is to be made against an indemnifying party under this Section 10,
notify the indemnifying party in writing of the commencement thereof, but the omission so to notify the indemnifying party will not relieve
it from any liability which it may have to any indemnified party for contribution or otherwise than under the indemnity agreement contained
in this Section 10 or to the extent it is not prejudiced as a proximate result of such failure. In case any such action is brought
against any indemnified party and such indemnified party seeks or intends to seek indemnity from an indemnifying party, the indemnifying
party will be entitled to participate in, and, to the extent that it shall elect, jointly with all other indemnifying parties similarly
notified, by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party,
to assume the defense thereof with counsel reasonably satisfactory to such indemnified party; provided, however, if the
defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably
concluded that a conflict may arise between the positions of the indemnifying party and the indemnified party in conducting the defense
of any such action or that there may be legal defenses available to it and/or other indemnified parties which are different from or additional
to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assume
such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party or parties. Upon receipt
of notice from the indemnifying party to such indemnified party of such indemnifying party’s election so to assume the defense of
such action and approval by the indemnified party of counsel, the indemnifying party will not be liable to such indemnified party under
this Section 10 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof
unless (i) the indemnified party shall have employed separate counsel in accordance with the proviso to the preceding sentence (it
being understood, however, that the indemnifying party shall not be liable for the fees and expenses of more than one separate counsel
(together with local counsel), representing the indemnified parties who are parties to such action), which counsel (together with any
local counsel) for the indemnified parties shall be selected by Raymond James (in the case of counsel for the indemnified parties referred
to in Section 10(a) above) or by the Company (in the case of counsel for the indemnified parties referred to in Section 10(b) above),
(ii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party
within a reasonable time after notice of commencement of the action or (iii) the indemnifying party has authorized in writing the
employment of counsel for the indemnified party at the expense of the indemnifying party, in each of which cases the fees and expenses
of counsel shall be at the expense of the indemnifying party and shall be paid as they are incurred. Any interim reimbursement payments
contemplated by Section 10(a) or Section 10(b) that are not made to the indemnified party within 30 days of a request
for reimbursement shall bear interest compounded daily at a rate determined on the basis of the base lending rate announced from time
to time by The Wall Street Journal from the date of such request.
d) Settlements.
The indemnifying party under this Section 10 shall not be liable for any settlement of any proceeding effected without its written
consent, but if settled with such consent or if there shall be a final judgment for the plaintiff, the indemnifying party agrees to indemnify
the indemnified party against any loss, claim, damage, liability or expense by reason of such settlement or judgment. No indemnifying
party shall, without the prior written consent of the indemnified party, effect any settlement, compromise or consent to the entry of
judgment in any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party
and indemnity was or could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent includes
an unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding
and does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party.
11. Contribution.
If the indemnification provided for in Section 10 is for any reason held to be unavailable to or otherwise insufficient to hold harmless
an indemnified party in respect of any losses, claims, damages, liabilities or expenses referred to therein, then each indemnifying party
shall contribute to the aggregate amount paid or payable by such indemnified party, as incurred, as a result of any losses, claims, damages,
liabilities or expenses referred to therein (i) in such proportion as is appropriate to reflect the relative benefits received by
the Company, on the one hand, and Raymond James, on the other hand, from the offering of the Shares pursuant to this Agreement or (ii) if
the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause (i) above but also the relative fault of the Company, on the one hand, and Raymond
James, on the other hand, in connection with the statements or omissions which resulted in such losses, claims, damages, liabilities or
expenses, as well as any other relevant equitable considerations. The relative benefits received by the Company, on the one hand, and
Raymond James, on the other hand, in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the
same respective proportions as the total net proceeds from the offering of the Shares pursuant to this Agreement (before deducting expenses)
received by the Company, and the total compensation received by Raymond James. The relative fault of the Company, on the one hand, and
Raymond James, on the other hand, shall be determined by reference to, among other things, whether any such untrue or alleged untrue statement
of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company, on the one
hand, or Raymond James, on the other hand, and the parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission.
The amount paid or payable by a party as a result
of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 10(c), any legal or other
fees or expenses reasonably incurred by such party in connection with investigating or defending any action or claim. The provisions set
forth in Section 10(c) with respect to notice of commencement of any action shall apply if a claim for contribution is to be
made under this Section 11; provided, however, that no additional notice shall be required with respect to any action for
which notice has been given under Section 10(c) for purposes of indemnification.
The Company and Raymond James agree that it would
not be just and equitable if contribution pursuant to this Section 11 were determined by pro rata allocation or by any other method
of allocation which does not take account of the equitable considerations referred to in this Section 11. Notwithstanding the provisions
of this Section 11, Raymond James shall not be required to contribute any amount in excess of the compensation received by it in
connection with the Placement Shares distributed by it to the public. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. For purposes of this Section 11, each officer, employee and agent of Raymond James and each person, if any, who
controls Raymond James within the meaning of the Securities Act or the Exchange Act shall have the same rights to contribution as Raymond
James, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who
controls the Company within the meaning of the Securities Act and the Exchange Act shall have the same rights to contribution as the Company.
12. Representations
and Indemnities to Survive Delivery. The respective indemnities, contribution and reimbursement agreements, representations
and warranties of the Company and of Raymond James set forth in this Agreement will remain in full force and effect, regardless of any
investigation made by or on behalf of Raymond James or the Company or any of its or their respective officers or directors or any
controlling person, as the case may be, and, anything herein to the contrary notwithstanding, will survive delivery of and payment for
the Placement Shares sold hereunder and any termination of this Agreement.
13. Termination
of this Agreement.
a) Raymond
James shall have the right, by giving notice as hereinafter specified at any time, to terminate its obligations pursuant to a Placement
Notice if (i) trading in the Company’s Common Stock shall have been suspended or limited by the Commission or by the Exchange,
or trading in securities generally on either the Nasdaq Stock Market or the New York Stock Exchange shall have been suspended or materially
limited, or minimum or maximum prices shall have been generally established on any of such stock exchanges by the Commission or FINRA;
(ii) a general banking moratorium shall have been declared by any of federal or New York authorities; or (iii) there shall have
occurred any outbreak or escalation of national or international hostilities or any crisis or calamity, or any change in the United
States or international financial markets, or any substantial change or development involving a prospective substantial change in the
United States’ or international political, financial or economic conditions, as in the judgment of Raymond James is material and
adverse and makes it impracticable or inadvisable to market the Placement Shares in the manner and on the terms described in the Prospectus
or to enforce contracts for the sale of securities; (iv) in the judgment of Raymond James there shall have occurred any Material
Adverse Change; or (v) the Company or any of its subsidiaries shall have sustained a loss by strike, fire, flood, earthquake, accident
or other calamity of such character as in the judgment of Raymond James may interfere materially with the conduct of the business and
operations of the Company and any of its subsidiaries taken as a whole, regardless of whether or not such loss shall have been insured.
Any termination pursuant to this Section 13(a) shall be without liability on the part of (a) the Company to Raymond James,
except that the Company shall be obligated to reimburse the expenses of Raymond James pursuant to Sections 7(h) hereof, (b) Raymond
James to the Company, or (c) of any party hereto to any other party except that the provisions of Section 10 and Section 11
shall at all times be effective and shall survive such termination.
b) The
Company shall have the right to terminate this Agreement in its sole discretion at any time after the date of this Agreement. Any such
termination shall be without liability of any party to any other party except that the provisions of Section 7(h), Section 10,
Section 11, Section 18 and Section 19 hereof shall remain in full force and effect notwithstanding such termination.
c) Raymond
James shall have the right to terminate this Agreement in its sole discretion at any time after the date of this Agreement. Any such termination
shall be without liability of any party to any other party except that the provisions of Section 7(h), Section 10, Section 11,
Section 18 and Section 19 hereof shall remain in full force and effect notwithstanding such termination.
d) Unless
earlier terminated pursuant to this Section 13, this Agreement shall automatically terminate upon the issuance and sale of
all of the Shares through Raymond James on the terms and subject to the conditions set forth herein; provided that the provisions
of Section 7(h), Section 10, Section 11, Section 18 and Section 19 hereof shall remain in full force and effect
notwithstanding such termination.
e) This
Agreement shall remain in full force and effect unless terminated pursuant to Sections 13(a), (b), (c), or (d) above or otherwise
by mutual agreement of the parties; provided however, that any such termination by mutual agreement shall in all cases be deemed
to provide that Section 7(h), Section 10, Section 11, Section 18 and Section 19 shall remain in full force and
effect.
f) Any
termination of this Agreement shall be effective on the date specified in such notice of termination; provided however, that such
termination shall not be effective until the close of business on the date of receipt of such notice by Raymond James or the Company,
as the case may be. If such termination shall occur prior to the Settlement Date for any sale of Placement Shares, such Placement
Shares shall settle in accordance with the provisions of this Agreement.
14. Notices.
All communications hereunder shall be in writing and shall be mailed, hand delivered or telecopied and confirmed to the parties
hereto as follows:
If to Raymond James:
Raymond
James & Associates, Inc.
880 Carillon Parkway
St. Petersburg, Florida 33716
Email: GEIBLegal@raymondjames.com
Attn: Brad Cole, General Counsel, Global Equities
with a copy to (which shall not constitute notice):
Mayer Brown LLP
1221 Avenue of the Americas
New York, New York 10020-1001
Facsimile: (212) 849-5767
Attention: Anna T. Pinedo
If to the Company:
Applied Optoelectronics, Inc.
13139 Jess Pirtle Blvd
Sugar Land, Texas 77478
Facsimile: (281) 966-6988
Attention: David C. Kuo
with a copy to (which shall not constitute notice):
Haynes and Boone, LLP
1221 McKinney Street, Suite 4000
Houston, TX 77010-2007
Facsimile: (713) 236-5659
Attention: Frank Wu
Any party hereto may change the address for receipt
of communications by giving written notice to the others. Each such notice or other communication shall be deemed given (i) when
delivered personally or by verifiable facsimile transmission (with an original to follow) on or before 4:30 p.m., Eastern Time, on a Business
Day (as defined below), or, if such day is not a Business Day on the next succeeding Business Day, (ii) on the next Business Day
after timely delivery to a nationally-recognized overnight courier and (iii) on the Business Day actually received if deposited in
the U.S. mail (certified or registered mail, return receipt requested, postage prepaid). For purposes of this Agreement, “Business
Day” shall mean any day on which the Exchange and commercial banks in the City of New York are open for business.
15. Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the Company and Raymond James and their respective successors,
permitted assigns and the affiliates, controlling persons, officers, directors, employees and agents referred to in Section 10
hereof. References to any of the parties contained in this Agreement shall be deemed to include the successors and permitted assigns of
such party. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their
respective successors and permitted assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement, except
as expressly provided in this Agreement. Neither party may assign its rights or obligations under this Agreement without the prior written
consent of the other party; provided however, that Raymond James may assign its rights and obligations hereunder to an affiliate
of Raymond James without obtaining the Company’s consent.
16. Adjustments
for Stock Splits. The parties acknowledge and agree that all stock-related numbers contained in this Agreement shall be adjusted
to take into account any stock split, stock dividend or similar event effected with respect to the Shares.
17. Entire
Agreement; Amendment; Severability. This Agreement (including all schedules and exhibits attached hereto and Placement Notices issued
pursuant hereto and not declined by Raymond James) constitutes the entire agreement of the parties to this Agreement and supersedes all
prior written or oral and all contemporaneous oral agreements, understandings and negotiations with respect to the subject matter hereof.
This Agreement may not be amended or modified unless in writing by all of the parties hereto, and no condition herein (express or implied)
may be waived unless waived in writing by each party whom the condition is meant to benefit. In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable as written by a
court of competent jurisdiction, then such provision shall be given full force and effect to the fullest possible extent that it is valid,
legal and enforceable, and the remainder of the terms and provisions herein shall be construed as if such invalid, illegal or unenforceable
term or provision was not contained herein, but only to the extent that giving effect to such provision and the remainder of the terms
and provisions hereof shall be in accordance with the intent of the parties as reflected in this Agreement.
18. Applicable
Law; Consent to Jurisdiction. This Agreement shall be governed by and construed in accordance with the internal laws of the State
of New York applicable to agreements made and to be performed in such state. Any legal suit, action or proceeding arising out of or based
upon this Agreement or the transactions contemplated hereby may be instituted in the federal courts of the United States of America
located in the Borough of Manhattan in the City of New York or the courts of the State of New York in each case located in the Borough
of Manhattan in the City of New York (collectively, the “Specified Courts”), and each party irrevocably submits
to the exclusive jurisdiction (except for proceedings instituted in regard to the enforcement of a judgment of any such court, as to which
such jurisdiction is non-exclusive) of such courts in any such suit, action or proceeding. Service of any process, summons, notice or
document by mail to such party’s address set forth above shall be effective service of process for any suit, action or other proceeding
brought in any such court. The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action
or other proceeding in the Specified Courts and irrevocably and unconditionally waive and agree not to plead or claim in any such court
that any such suit, action or other proceeding brought in any such court has been brought in an inconvenient forum.
19. Waiver
of Jury Trial. The Company and Raymond James each hereby irrevocably waives any right it may have to a trial by jury in respect of
any claim based upon or arising out of this Agreement or any transaction contemplated hereby.
20. Absence
of Fiduciary Relationship. The Company acknowledges and agrees that:
a) Raymond
James has been retained solely to act as agent in connection with the sale of the Shares and that no fiduciary, advisory or agency relationship
between the Company and Raymond James has been created in respect of any of the transactions contemplated by this Agreement, irrespective
of whether Raymond James has advised or is advising the Company on other matters;
b) Company
is capable of evaluating and understanding and understands and accepts the terms, risks and conditions of the transactions contemplated
by this Agreement;
c) the
Company has been advised that Raymond James and its affiliates are engaged in a broad range of transactions which may involve interests
that differ from those of the Company and that Raymond James has no obligation to disclose such interests and transactions to the Company
by virtue of any fiduciary, advisory or agency relationship; and
d) the
Company waives, to the fullest extent permitted by law, any claims it may have against Raymond James, for breach of fiduciary duty or
alleged breach of fiduciary duty and agrees that Raymond James shall have no liability (whether direct or indirect) to the Company in
respect of such a fiduciary claim or to any person asserting a fiduciary duty claim on behalf of or in right of the Company, including
stockholders, partners, employees or creditors of the Company.
21. Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. Delivery of an executed Agreement by one party to the other may be made by facsimile or
electronic transmission.
22. Recognition
of the U.S. Special Resolutions Regime
a) In
the event that Raymond James is a Covered Entity (as defined below) becomes subject to a proceeding under a U.S. Special Resolution Regime
(as defined below), the transfer from Raymond James of this Agreement, and any interest and obligation in or under this Agreement, will
be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement,
and any such interest and obligation, were governed by the laws of the United States or a state of the United States.
b) In
the event Raymond James is a Covered Entity or a BHC Act Affiliate (as defined below) of Raymond James becomes subject to a proceeding
under a U.S. Special Resolution Regime, Default Rights (as defined below) under this Agreement that may be exercised against Raymond James
are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime
if this Agreement were governed by the laws of the United States or a state of the United States.
For purposes of this Section 22: (A) “BHC
Act Affiliate” has the meaning assigned to the term “affiliate” in, and shall be interpreted in accordance with, 12
U.S.C. § 1841(k); (B) “Covered Entity” means any of the following: (i) a “covered entity” as the
term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a “covered bank” as that term
is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii) a “covered FSI” as that term is
defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b); (C) “Default Right” has the meaning assigned
to that term in, and shall be interpreted in accordance with, 12 C.F.R. § 252.81, 47.2 or 382.1, as applicable; and (D) “U.S.
Special Resolution Regime” means each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder and
(ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.
23. Definitions.
As used in this Agreement, the following terms have the respective meanings set forth below:
a) “Applicable
Time” means the date of this Agreement, each Representation Date, the date on which a Placement Notice is given, any date
on which Placement Shares are sold hereunder and each Settlement Date, or such other time as agreed to by the Company and Raymond James.
b) “GAAP”
means United States generally accepted accounting principles, consistently applied.
Each of the parties hereto acknowledges that it
is a sophisticated business person who was adequately represented by counsel during negotiations regarding the provisions hereof, including,
without limitation, the indemnification provisions of Section 10 and the contribution provisions of Section 11, and is fully
informed regarding said provisions. Each of the parties hereto further acknowledges that the provisions of Sections 10 and 11 hereto fairly
allocate the risks in light of the ability of the parties to investigate the Company, its affairs and its business in order to assure
that adequate disclosure has been made in the Registration Statement, each free writing prospectus and the Prospectus (and any amendments
and supplements thereto), as required by the Securities Act and the Exchange Act.
[Signature Pages Follow]
If the foregoing correctly sets forth the understanding
between the Company and Raymond James, please so indicate in the space provided below for that purpose, whereupon this letter shall constitute
a binding agreement between the Company and Raymond James.
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Very truly yours, |
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APPLIED OPTOELECTRONICS, INC. |
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|
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By: |
/s/ Chih Hsiang (Thompson) Lin |
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Name: |
Chih Hsiang (Thompson) Lin |
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Title: |
President, CEO & Chairman |
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|
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ACCEPTED as of the date first-above
written: |
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RAYMOND JAMES & ASSOCIATES, INC. |
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|
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By: |
/s/ Robert Flanagan |
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Name: |
Robert Flanagan |
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Title: |
Managing Director |
Exhibit 5.1
Applied Optoelectronics, Inc.
13139 Jess Pirtle Blvd.
Sugar Land, TX 77478
Ladies and Gentlemen:
We have acted as counsel
for Applied Optoelectronics, Inc., a Delaware corporation (the “Company”), in connection with the issuance
and sale by the Company from time to time on a delayed continuous basis pursuant to Rule 415 under the Securities Act of 1933, as
amended (the “Securities Act”), of (i) securities, including shares of the Company’s common stock,
$0.001 par value per share (the “Common Stock”), at an aggregate initial offering price not to exceed $185,000,000
registered pursuant to the Registration Statement on Form S-3 (File No. 333-269132) (including the prospectus contained therein,
the “Registration Statement”) filed with the Securities and Exchange Commission (the “Commission”);
and (ii) the prospectus supplement, dated November 7, 2024 (the “Prospectus Supplement”), relating
to the issuance and sale from time to time by the Company of shares of Common Stock with an aggregate offering price of up to $55,000,000
(the “Shares”). The Shares are to be issued and sold by the Company pursuant to an Equity Distribution Agreement,
dated November 7, 2024 (the “Distribution Agreement”), between the Company and Raymond James &
Associates, Inc. The Distribution Agreement will be filed with the Commission as Exhibit 1.1 to the Company’s Current
Report on Form 8-K, dated November 7, 2024.
For purposes of the opinion
we express below, we have examined originals, or copies certified or otherwise identified, of (i) the certificate of incorporation
and bylaws, each as amended to date, of the Company (the “Company Charter Documents”); (ii) the Registration
Statement and all exhibits thereto; (iii) the Prospectus Supplement and all exhibits thereto; (iv) the Distribution Agreement
and all exhibits thereto; (v) the minutes and records of the corporate proceedings of the Company with respect to the filing of
the Registration Statement and the Prospectus Supplement and the entering into of the Distribution Agreement; and (vi) such other
corporate records of the Company as we have deemed necessary or appropriate for purposes of the opinion hereafter expressed.
As to questions of fact material
to the opinion expressed below, we have, without independent verification of their accuracy, relied to the extent we deem reasonably
appropriate upon the representations and warranties of the Company contained in such documents, records, certificates, instruments or
representations furnished or made available to us by the Company.
In making the foregoing examination,
we have assumed (i) the genuineness of all signatures, (ii) the authenticity of all documents submitted to us as originals,
(iii) the conformity to original documents of all documents submitted to us as certified or photostatic copies, (iv) that all
agreements or instruments we have examined are the valid, binding and enforceable obligations of the parties thereto, and (v) that
all factual information on which we have relied was accurate and complete.
We have also assumed that
(i) the Prospectus Supplement has been timely filed with the Commission; (ii) the Company will issue and deliver the Shares
in the manner contemplated by the Registration Statement, the Prospectus Supplement and the Distribution Agreement; (iii) the Shares
will be issued in compliance with applicable federal and state securities law; (iv) no stop orders of the Commission preventing
or suspending the use of the Prospectus Supplement will have been issued; and (v) the Company will receive consideration for the
issuance of the Shares that is at least equal to the par value of the Common Stock.
Based on the foregoing, and
subject to the limitations and qualifications set forth herein, we are of the opinion that when issued and paid for in accordance with
the terms and conditions of the Distribution Agreement, the Shares will be validly issued, fully paid and nonassessable.
Applied Optoelectronics, Inc.
November 7, 2024
Page 2
The opinion expressed herein
is limited to the Delaware General Corporation Law as in effect on the date hereof.
We hereby consent to the
filing of this letter as Exhibit 5.1 to the Current Report on Form 8-K to be filed by the Company in connection with the issuance
and sale of the Shares in accordance with the requirements of Item 601(b)(5) of Regulation S-K under the Securities Act and to the
reference to our firm therein and in the Prospectus Supplement under the caption “Legal Matters.” In giving this consent,
we do not hereby admit we are in the category of persons whose consent is required under Section 7 of the Act or the rules and
regulations of the Commission thereunder.
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Very truly yours, |
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/s/ Haynes and Boone, LLP |
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-Name Exchange Act
-Number 240
-Section 14d
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- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Section 14a
-Number 240
-Subsection 12
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- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Securities Act
-Number 230
-Section 425
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