Company: AAOI
Filing Date: 2025-02-28
Form Type: PRE 14A
Source: 0001104659-25-019126
Chunk: 25

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-02-28
Form: PRE 14A
Chunk 25
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 the grant of restricted stock, stock units, performance shares or performance units. Instead, the participant generally will recognize ordinary income at the time of vesting or payout equal to the fair market value (on the vesting or payout date) of the shares or cash received minus any amount paid. For restricted stock only, a participant may instead elect to be taxed at the time of grant if the participant makes a timely and proper Section 83(b) election for the award.**

#### Tax Consequences to the Company.
In the foregoing cases, we generally will be entitled to a deduction at the same time, and in the same amount, as a participant recognizes ordinary income, subject to certain limitations imposed under the Code. Code Section 162(m) generally denies a tax deduction to any publicly held corporation for compensation paid to certain “covered employees” to the extent that such compensation paid in a taxable year to a covered employee exceeds $1 million.

#### Code Section 409A.
We intend that awards granted under the Amended and Restated 2021 Plan will comply with, or otherwise be exempt from, Code Section 409A, but make no representation or warranty to that effect.

#### Tax Withholding.
We are authorized to deduct or withhold from any award granted or payment due under the Amended and Restated 2021 Plan, or require a participant to remit to us, the amount of any withholding taxes due in respect of the award or payment and to take such other action as may be necessary to satisfy all obligations for the payment of applicable withholding taxes. We are not required to issue any shares or otherwise settle an award under the Amended and Restated 2021 Plan until all tax withholding obligations are satisfied.

**Vote Required and Board of Directors Recommendation**

**The affirmative vote of a majority of the votes properly cast on the proposal at the Special Meeting, where a quorum is present, is required to approve this Proposal No. 1.

If stockholders do not approve this proposal, the Amended and Restated 2021 Plan will not take effect and the 2021 Plan will continue to be administered in its current form until its expiration (or until such time as the shares available for issuance thereunder have been depleted, whichever occurs first).

THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT YOU VOTE “FOR” THE APPROVAL OF THE AMENDED AND RESTATED 2021 EQUITY INCENTIVE PLAN AS DESCRIBED IN THIS PROXY STATEMENT.**

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