Company: AAOI
Filing Date: 2025-06-11
Form Type: 8-K
Source: 0001683168-25-004402
Chunk: 0

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-06-11
Form: 8-K
Item: Item 1.01
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Item 1.01      Entry into a Material Definitive Agreement.  

On June 7, 2025, Prime World International Holdings
Ltd. (“ Prime World”), a wholly owned subsidiary of Applied Optoelectronics, Inc., entered into a Land and Building Lease Agreement
(the “ Lease Agreement”) with San Ho Electric Machinery Industry Co., Ltd. (the “ Lessor”), under which Prime World
will lease a parcel of land with a total area of approximately 10,040.312 square meters, designated as Land No. 0066-0001, located in
the Guanyu Section of Guanyin District, Taoyuan City. The lease also includes a building on the parcel, totaling approximately 12,225.902
square meters, situated at Building No. 819, Baiyu 3rd Road, Guanyin District, Taoyuan City (collectively, the “ Leased Property”).

The lease term is for fifteen (15) years, commencing
on September 1, 2025, and ending on August 31, 2040. A three-month renovation period from June 1 to August 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 three years. The monthly rent schedule, starting from September 1, 2025, through August 31, 2040, is as follows:

  Period                                   Monthly Rent   
 ──────────────────────────────────────────────────────────
  September 1, 2025 – August 31, 2028      NTD 2,350,000  
  September 1, 2028 – August 31, 2031      NTD 2,420,500  
  September 1, 2031 – August 31, 2034      NTD 2,493,115  
  September 1, 2034 – August 31, 2037      NTD 2,567,908  
  September 1, 2037 – August 31, 2040      NTD 2,644,945  

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, neither party may terminate the