Company: AEHR
Filing Date: 2025-09-10
Form Type: DEF 14A
Source: 0001654954-25-010620
Chunk: 21

Company: AEHR TEST SYSTEMS
Filing Date: 2025-09-10
Form: DEF 14A
Chunk 21
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 incidents that materially affected us, including our operations, business strategy, results of operations, or financial condition.

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Insider Trading Policy and Prohibition on Hedging, Pledging and Similar Transactions

Employees, directors, officers, and other individuals associated with us are subject to our Insider Trading Policy governing the purchase, sale, and other dispositions of our securities. The policy prohibits the covered individuals from purchasing or selling any of our securities while in possession of material nonpublic information and is designed to promote compliance with insider trading laws, rules and regulations, and applicable listing standards. A copy of our Insider Trading Policy is filed as Exhibit 19.1 to our Annual Report on Form 10-K for the year ended May 30, 2025.

Our Insider Trading Policy also prohibits covered individuals, including our named executive officers, from (i) making short sales of our securities, (ii) engaging in transactions in puts, calls or other options or derivative instruments related to our equity securities, (iii) engaging in any hedging or similar transaction designed to hedge or offset any change in the market value of our securities and (iv) purchasing our securities on margin or pledging our securities as collateral.

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<div align='center'>PROPOSAL 2

APPROVAL OF AN AMENDMENT TO THE 2023 EQUITY INCENTIVE PLAN</div>

On July 2, 2025, the Board of Directors adopted, subject to shareholder approval at the Annual Meeting, an amendment (the “2023 Plan Amendment”) to the 2023 Equity Incentive Plan (the “2023 Plan”) to (i) increase the number of shares authorized thereunder by an additional 2,500,000 shares of common stock, and (ii) correspondingly increase by 2,500,000 shares the limit on the number of shares that can be issued under the 2023 Plan pursuant to the exercise of “incentive stock options.”

The Board of Directors is proposing that shareholders approve the 2023 Plan Amendment to ensure that a sufficient number of shares are available to make meaningful equity grants under the 2023 Plan. In determining the number of additional shares to reserve, the Board of Directors considered the shares available for issuance, historical annual grant rate, and estimated future annual grants.

Background on Share Request

We expect the additional number of shares under the 2023 Plan Amendment to provide us with enough shares for awards for at least the next three years, assuming we continue to grant