Company: LIDRW
Filing Date: 2025-03-25
Form Type: PREC14A
Source: 0001140361-25-010248
Chunk: 36

Company: AEye, Inc.
Filing Date: 2025-03-25
Form: PREC14A
Chunk 36
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 PROPOSAL 3
APPROVAL OF AN INCREASE IN THE NUMBER OF SHARES OF COMMON STOCK ISSUABLE UNDER OUR 2021 EQUITY INCENTIVE PLAN

Our Board of Directors has approved, and is asking stockholders to approve, an amendment to our Amended and Restated 2021 Equity Incentive Plan (the “2021 Equity Plan”) to increase the number of shares of common stock available for issuance under the 2021 Equity Plan by 2,500,000 shares (the “Equity Plan Amendment”).

As of [•], 2025, the number of shares of common stock available for issuance under the 2021 Equity Plan was [•], and we anticipate that these shares will be fully allocated to grants for our employees, including our named executive officers, for purposes of retention and to reward exceptional performance during the 2025 fiscal year. We face intense competition in recruiting high-quality personnel, and in retaining our employees. The Board of Directors continues to believe that stock-based incentives are an important factor in attracting, retaining, and awarding officers, employees, and consultants by closely aligning their interests with those of our stockholders.

Our Board of Directors believes that increasing the number of shares available for issuance under the 2021 Equity Plan by 2,500,000 shares is consistent with our compensation philosophy (and with responsible compensation policies generally) and will preserve our ability to attract and retain capable officers, employees, and consultants. Our Board of Directors believes that the number of shares currently available for issuance under the 2021 Equity Plan is not sufficient in view of our compensation structure and strategy, and that the availability of the additional shares will help us to have a sufficient number of shares of common stock authorized for issuance under the 2021 Equity Plan. Our Board of Directors adopted the Equity Plan Amendment to ensure that we can operate effectively in our recruitment efforts and create incentives for the retention of employees and other service providers, by granting the equity arrangements available under the 2021 Equity Plan to employees, and key consultants at levels determined appropriate by the Compensation Committee.

If the Equity Plan Amendment is approved by our stockholders, the additional shares will be added to the 2021 Equity Plan immediately thereafter. In the event that our stockholders do not approve the Equity Plan Amendment, the 2021 Equity Plan will continue, but without the additional shares, which may impair our ability to attract and retain talent. Approval of the Equity Plan Amendment will allow us to grant RSU awards, stock options