Company: LIDRW
Filing Date: 2025-04-07
Form Type: DEFC14A
Source: 0001140361-25-012590
Chunk: 55

Company: AEye, Inc.
Filing Date: 2025-04-07
Form: DEFC14A
Chunk 55
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 33 TABLE OF CONTENTS the Convertible Notes issued in this transaction, the Company is required to reserve at least 250% of the number of shares, or a total of 4,159,460 shares of common stock, necessary to effect the conversion of such Convertible Notes. Additionally, the Company maintains multiple Equity and Option plans for its employees, which were previously approved by both the Board and the shareholders of the Company, and currently require an aggregate reservation of 2,000,587 shares of common stock issuable upon exercise or vesting of outstanding awards. Such incentive awards play an important role in incentivizing the Company’s employees while minimizing cash burn, thus freeing up cash for the further development of the Company’s Apollo product. These are just some of the contractual arrangements maintained by the Company, all of which together would exceed the number of authorized shares proposed by the Dissident Group. The sum of the number of shares of common stock issued and outstanding and the number of shares of common stock required to be reserved for issuance under the Company’s existing contractual obligations currently exceeds 20,000,000 shares of common stock. As such, the Company is contractually barred from reducing the number of authorized shares of common stock to 20,000,000, as the proposal requests. It is important to note that passage of the stockholder proposal will not automatically reduce the number of authorized shares of common stock. Further action would be required to amend the Company's Second Amended and Restated Certificate of Incorporation to effect this change. It would require the Board to consider proposing such an amendment, consistent with its fiduciary duties, only if it believes such an amendment to be in the best interests of the Company and all of its stockholders. The amendment would then need to be approved by the holders of a majority of the outstanding common stock. Vote Required For Approval Approval of Proposal 5 requires the affirmative vote of a majority of the shares entitled to vote and present in person or represented by proxy at the Annual Meeting. Abstentions are considered shares present and entitled to vote on this proposal and, thus, will have the same effect as a vote “AGAINST” this proposal. Brokers do not have authority to vote on Proposal 5 without instructions from the beneficial owner. Recommendation of the Board of Directors A majority of our Board of Directors recommends that you vote on the WHITEuniversal proxy card “AGAINST” the advisory stockholder proposal to reduce the number of authorized shares of common stock. 34 TABLE OF CONTENTS AUDIT COMMITTEE