Company: AAOI
Filing Date: 2025-09-04
Form Type: 8-K
Source: 0001683168-25-006678
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Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-09-04
Form: 8-K
Item: Item 1.01
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Item 1.01      Entry into a Material Definitive Agreement.  

On September 1, 2025, Prime World
International Holdings Ltd. (“ Prime World”), a wholly owned subsidiary of Applied Optoelectronics, Inc., entered into a
Premises Lease Agreement (the “ Lease Agreement”) with International Games System Co., Ltd. (the “ Lessor”),
under which Prime World will lease a parcel of land with a total area of approximately 65,580 square feet,
designated as Land No. 560-3, located in the Wugong Section of Wugu District, New Taipei City. The lease also includes a building on
the parcel, totaling approximately 346,212 square feet, situated at No. 49, Wugong 6th Rd., Wugu Dist., New Taipei City
(collectively, the “ Leased Property”). The leasehold excludes approximately 54,086 square feet of the Leased Property
that, as specified in the Lease Agreement, had previously been leased by the Lessor to an existing tenant.

The lease term is for fifteen (15) years, commencing
on November 1, 2025, and ending on October 31, 2040. A two-month renovation period from September 1 to October 31, 2025, will precede
the lease term, during which no rent will be charged by the Lessor. During the lease term, the monthly rent will increase by three percent
(3%) every five years. The monthly rent schedule, starting from November 1, 2025, through October 31, 2040, is as follows:

  Period                                   Monthly Rent   
 ──────────────────────────────────────────────────────────
  November 1, 2025 – October 31, 2030      NTD 6,800,000  
  November 1, 2030 – October 31, 2035      NTD 7,004,000  
  November 1, 2035 – October 31, 2040      NTD 7,214,120  

Under the terms of the Lease Agreement, Prime
World has the right, at its own expense, to modify the building within the Leased Property as necessary to accommodate its production
needs. Except as otherwise agreed by both parties in the Lease Agreement, neither party may terminate the lease early during the lease
term.

Prime World holds additional rights under the Lease
Agreement, including