Company: LIDRW
Filing Date: 2025-04-10
Form Type: PREC14A
Source: 0001104659-25-033731
Chunk: 21

Company: AEye, Inc.
Filing Date: 2025-04-10
Form: PREC14A
Chunk 21
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 It is possible that maintenance of the excessive
level of authorized shares could perpetuate the excessive compensation of the board and management.

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

16

PROPOSAL 6</div>

TO RECOMMEND AN AMENDMENT TO THE SECOND AMENDED AND RESTATED CERTIFICATE OF INCORPORATION OF AEYE, INC. TO reduce Authorized Shares of Common Stock to 125% of the then fully diluted shares of Common Stock.

The shareholders of AEye, Inc. recommend that the Board of Directors
take the steps necessary to amend the Certificate of Incorporation to reduce the authorized shares of Common Stock from 600,000,000 to
125% of the then fully diluted shares of common stock, so as to encourage shareholder input on dilution of shareholder interest.

The proposed Amendment would bring authorized shares to outstanding
shares to a ratio which will protect shareholders from undue dilution without shareholder input or authorization.

As a result, the shareholders recommend and request the Board of Directors
to take the steps necessary to amend the Certificate of Incorporation reducing authorized shares of Common Stock to 125% of the then fully
diluted shares of Common Stock.

SUPPORTING STATEMENT

This resolution urges shareholders to vote to recommend and request
action by the Board of directors to reduce authorized shares of Common Stock from 600,000,000, the number authorized prior to the 1/30
reverse stock split of 2023, to 125% of the then fully diluted shares of Common Stock. At the time of the reverse split General Counsel
suggested that shareholders would be protected from excessive dilution by the NASDAQ 20% rule, but this has not been the case. This is
obvious as the Board and Top Management have diluted shareholder interest since 1/2024 by almost 70% without shareholder input or communication
of the reason such massive dilution is necessary.

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. It is possible that maintenance of the excessive
level of authorized shares could perpetuate the excessive compensation of the board and management.

<div align='center'>WE RECOMMEND STOCKHOLDERS VOTE “FOR