Company: AAOI
Filing Date: 2025-11-03
Form Type: 8-K
Source: 0001683168-25-007913
Chunk: 0

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-11-03
Form: 8-K
Item: Item 1.01
Chunk 0
---
Item 1.01      Entry into a Material Definitive Agreement.  

On October 28, 2025, Prime World International
Holdings Ltd. (“ Prime World”), a wholly owned subsidiary of Applied Optoelectronics, Inc., entered into a new Premise Lease
Agreement (the “ Lease Agreement”) with International Games System Co., Ltd. (the “ Lessor”).

This Lease Agreement covers the property located
at No. 49, Wugong 6th Road, Wugu District, New Taipei City (the “ Leased Property”), which constitutes the same premises as
those covered under a prior lease agreement with Lessor dated September 1, 2025, pursuant to which Prime World currently leases a majority
portion of the property.

Under the Lease Agreement, Prime World will lease
the remaining portion of the Leased Property, previously leased and occupied by another tenant, consisting of approximately 54,086 square
feet. Upon execution of the Lease Agreement, Prime World will become the sole tenant of the entire Leased Property, enjoying full and
exclusive rights of use and occupancy.

The lease term will commence on December 1, 2025
and end on October 31, 2040, following a rent-free renovation period from November 1 to November 30, 2025. During the lease term, the
monthly rent will increase by three percent (3%) approximately every five years. The monthly rent schedule is as follows:

  Period                          Monthly Rent   
 ─────────────────────────────────────────────────
  December                        NTD 1,292,000  
  November                        NTD 1,330,760  
  November                        NTD 1,370,683  

Under the Lease Agreement, Prime World may, at
its own expense, make modifications to the building within the Leased Property as necessary to support its operational needs.

Prime World holds certain additional rights under
the Lease Agreement, including but not limited to: (i) a right of first refusal to purchase the Leased Property if the Lessor elects to
sell; (ii) the right to ensure that the Lease Agreement remains valid and enforceable against any successor owner in the event of a sale;
(iii) a right of first refusal to renew the lease on terms no less favorable than those offered to other prospective tenants; and (iv)
protection against early termination during the first eight years of the lease, with any termination thereafter requiring the Lessor to
provide at least