Company: LIDRW
Filing Date: 2025-04-10
Form Type: PREC14A
Source: 0001104659-25-033731
Chunk: 20

Company: AEye, Inc.
Filing Date: 2025-04-10
Form: PREC14A
Chunk 20
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2007); and |

| ● | Classified boards are associated with lower sensitivity of compensation                  
 to performance and lower sensitivity of CEO turnover to firm performance (Faleye, 2007). |

Please vote for this proposal to make directors more accountable to
shareholders.

<div align='center'>WE RECOMMEND STOCKHOLDERS VOTE “FOR” THIS PROPOSAL AND INTEND TO VOTE OUR SHARES “FOR” THIS PROPOSAL.

15

PROPOSAL 5</div>

TO RECOMMEND AMENDMENT TO THE SECOND AMENDED AND RESTATED CERTIFICATE OF INCORPORATION OF AEYE, INC. TO reduce Authorized Shares of Common Stock to20,000,000

The shareholders of AEye, Inc. propose to amend the Certificate of
Incorporation by reducing the authorized shares of Common Stock from 600,000,000 to 20,000,000 in keeping with the 1/30 reverse split
of December 2023.

The proposed Amendment would bring the ratio of authorized shares to
outstanding shares back to the ratio which existed prior to the reverse split and protect shareholders from undue dilution without shareholder
input or authorization.

As a result, the shareholders recommend and request the Board of Directors
take the steps necessary to amend the Certificate of Incorporation reducing authorized shares of Common Stock to 20,000,000.

SUPPORTING STATEMENT

This resolution urges shareholders to vote for a reduction of the authorized
shares of Common Stock to 20,000,000, 1/30 of the authorized shares prior to the reverse stock split of 2023. At the time of the reverse
split General Counsel told shareholders that the NASDAQ 20% rule would protect them from undue dilution without shareholder oversite and
that the reduction of the then 600,000,000 authorized shares was unnecessary to protect the shareholders from dilution without shareholder
input. This was obviously untrue as the Board and Top Management have diluted shareholder interest in 2024 by 40.4% as of Q3, 2024, an
increase from 6,502,989 at the end of 2023, to 9,133,148 at the end of Q3, 2024.

It also appears that the Board and Top Management intend to continue
to dilute shareholder interest without this amendment and without any shareholder oversite. This comes at a time when funds are tight,
and the Board and Top Management continue to pay themselves substantial compensation.