Company: AEHR
Filing Date: 2025-09-10
Form Type: DEF 14A
Source: 0001654954-25-010620
Chunk: 31

Company: AEHR TEST SYSTEMS
Filing Date: 2025-09-10
Form: DEF 14A
Chunk 31
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 | For any performance-based RSUs, the number of shares is calculated assuming “target” performance. |

Recommendation of the Board

<div align='center'>THE BOARD RECOMMENDS A VOTE “FOR” THE AMENDMENT TO THE 2023 EQUITY INCENTIVE PLAN.</div>

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<div align='center'>PROPOSAL 3

APPROVAL OF AN AMENDMENT TO THE AMENDED AND RESTATED

2006 EMPLOYEE STOCK PURCHASE PLAN</div>

On July 2, 2025, the Board adopted, subject to shareholder approval at the Annual Meeting, an amendment (the “ESPP Amendment”) to the Amended and Restated 2006 Employee Stock Purchase Plan (“ESPP”) to increase the number of shares authorized thereunder by an additional 300,000 shares of common stock.

If the ESPP Amendment is approved, the ESPP will continue to be a significant part of our overall equity compensation strategy, especially with respect to our non-executive employees. The ESPP allows our employees to buy shares of our common stock at a discount through payroll deductions. In the highly competitive technology industry in which we compete for talent, we believe that offering an employee stock purchase program is critical to our ability to remain competitive, and we are proposing the ESPP Amendment to ensure that the Company has a sufficient reserve of shares available to attract, retain and motivate employees essential to the Company’s long-term growth and success. If the ESPP Amendment is not approved by the Company’s shareholders, we may be restricted in our ability to offer competitive compensation to existing employees and qualified candidates, and our business and ability to increase long-term shareholders value could be adversely affected.

Background on Share Request

| · | As of the Record Date, 209,594 shares remained available for purchase under the ESPP.                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| · | In fiscal years 2023, 2024 and 2025, the numbers of shares purchased under the ESPP were 210,765 shares, 71,722 shares, and 116,281 shares, respectively.                                                                                                                                                                                                                                                                                                                                                               |
| · | 86 employees participated in the most recently completed offering period under the ESPP, purchasing 75,003 shares (with a value of $7.85 on the date of purchase) at an average purchase price of $6.6725 per share.                                                                                                                                                                                                                                                                                                    |
| · | As of the Record Date, there were 99 employees eligible to participate in the ES