Company: AAOI
Filing Date: 2025-03-10
Form Type: DEF 14A
Source: 0001104659-25-022149
Chunk: 8

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-03-10
Form: DEF 14A
Chunk 8
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 plan for succession. For the CEO, the succession plan covers identification of internal candidates, and professional and leadership development plans for internal candidates. The Board from time to time reviews the CEO succession plan. The criteria used to assess potential CEO candidates are formulated based on the Company’s business strategies, and include strategic vision, leadership, and operational execution. The Board maintains an emergency succession contingency plan that is reviewed on an annual basis by the Board and compensation committee. The plan identifies roles and responsibilities of individuals who would act if an unforeseen event prevented the CEO from continuing to serve. The Board may review development and succession planning more frequently as it deems necessary or desirable. 3 TABLE OF CONTENTS PROPOSAL NO. 1
APPROVAL OF THE AMENDED AND RESTATED 2021 EQUITY INCENTIVE PLAN The Board, upon the recommendation of the compensation committee, has adopted, and is asking our stockholders to approve, the Company’s Amended and Restated 2021 Plan, which has been amended and restated to increase the number of shares available for issuance under the Amended and Restated 2021 Plan by 2,000,000 shares and to increase certain annual limits on the value of awards that may be granted under the Amended and Restated 2021 Plan. The Amended and Restated 2021 Plan will only become effective if approved by stockholders at the Special Meeting. Overview The Amended and Restated 2021 Plan was initially adopted by the Board and approved by stockholders in 2021 and has been amended by stockholder vote in 2022 and 2023 to increase the number of shares available for issuance under the Amended and Restated 2021 Plan. The number of shares currently reserved for issuance under the Amended and Restated 2021 Plan is 8,147,762 shares. As of February 24, 2025, we had 130,661 shares remaining available for grants of new awards under the Amended and Restated 2021 Plan. If stockholders approve this proposal, the Amended and Restated 2021 Plan will become effective as of the date of stockholder approval. If stockholders do not approve this proposal, the Amended and Restated 2021 Plan with the increase in the number of available shares thereunder and the increase in certain annual limits on the value of awards that may be granted thereunder will not take effect and the 2021 Plan will continue to be administered in its current form until