Company: LIDRW
Filing Date: 2025-04-21
Form Type: DEFC14A
Source: 0001104659-25-036915
Chunk: 20

Company: AEye, Inc.
Filing Date: 2025-04-21
Form: DEFC14A
Chunk 20
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 Amended and Restated Certificate of Incorporation (Certificate) which established a Classified Board
of Directors and replace these provisions with those necessary to establish a non-classified board.

All directors elected thereafter will be up for election at the annual
meeting and will serve a term of one year and until his or her successor is duly elected and qualified or until such director’s
earlier death, resignation or removal.

Under Delaware law, directors of companies that have a classified Board
may be removed only for cause, unless the certificate provides otherwise, but directors of companies that do not have a classified board
may be removed with or without cause. Therefore, Section V must also be amended to provide for removal with or without cause as provided
by Delaware law. Shareholders recommend and request that the board take the action necessary to Declassify the Board of Directors.

SUPPORTING STATEMENT

This resolution urges the shareholders to vote for DECLASSIFICATION
of the board. Such a change would enable shareholders to register their views on the performance of all directors at each annual meeting.

Having directors stand for elections annually makes directors more
accountable to shareholders, and could thereby contribute to improving performance and increasing Company value.

Over the past 20 years, many S&P 500 companies have declassified
their board of directors. According to data cited by Harvard University, the number of S&P 500 companies with classified boards declined
from 50% to 10% in the last 20 years and the average percentage of votes cast in favor of shareholder proposals to declassify the boards
of S&P 500 companies during the period January 1, 2010 – June 30, 2011, exceeded 75%.

The significant shareholder support for proposals to declassify boards
is consistent with empirical. studies reporting that classified boards could be associated with lower Company valuation and/or worse.
corporate decision-making. Studies report that:

| ● | Classified boards are associated with lower Company valuation            
 (Bebchuk and Cohen, 2005), confirmed by Faleye (2007) and Frakes (2007). |

| ● | Takeover targets with classified boards are associated with           
 lower gains to shareholders (Bebchuk, Coates, and Subramanian, 2002). |

| ● | Firms with classified boards are more likely to be associated                   
 with value-decreasing acquisition decisions (Masulis, Wang, and Xie, 2007); and |

| ● | Classified boards are associated with lower sensitivity of