Company: AAOI
Filing Date: 2025-03-10
Form Type: DEF 14A
Source: 0001104659-25-022149
Chunk: 21

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-03-10
Form: DEF 14A
Chunk 21
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 terminate all or any portion of the Amended and Restated 2021 Plan at any time, but in such event, outstanding awards will remain outstanding in accordance with their existing terms and conditions. The Amended and Restated 2021 Plan will expire 10 years after the date the Amended and Restated 2021 Plan was originally approved by the Board. 11 TABLE OF CONTENTS New Plan Benefits All awards to be made to employees, officers and consultants under the Amended and Restated 2021 Plan are made at the discretion of the administrator. Therefore, the future benefits and amounts that will be received or allocated to such individuals under the Amended and Restated 2021 Plan generally are not determinable at this time. Please refer to the description of equity awards made to our NEOs in the last fiscal year described in the “2024 Grants of Plan-Based Awards” table and to our 6 non-employee directors as described above under “2024 Director Compensation.” Federal Income Tax Information The following is a brief summary of the U.S. federal income tax consequences of the Amended and Restated 2021 Plan generally applicable to us and to participants in the Amended and Restated 2021 Plan who are subject to U.S. federal taxes. The summary is based on the Code, applicable Treasury Regulations and administrative and judicial interpretations thereof, each as in effect on the date of this Proxy Statement and is, therefore, subject to future changes in the law, possibly with retroactive effect. The summary is general in nature and does not purport to be legal or tax advice. Furthermore, the summary does not address issues relating to any U.S. gift or estate tax consequences or the consequences of any state, local or foreign tax laws. Stock Options. Nonqualified Stock Options . A participant generally will not recognize taxable income upon the grant or vesting of a nonqualified stock option with an exercise price at least equal to the fair market value of the stock on the grant date and no additional deferral feature. When a nonqualified stock option is exercised, a participant generally will recognize compensation taxable as ordinary income in an amount equal to the difference between the fair market value of the shares underlying the option on the date of exercise and the option exercise price. When a participant sells the shares, the participant will have short-term or long-term capital gain or loss, as the case may be, equal to the difference between the amount the participant received from the sale and the tax basis of the shares sold. The tax basis of the