Company: AAOI
Filing Date: 2025-03-10
Form Type: DEF 14A
Source: 0001104659-25-022149
Chunk: 11

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-03-10
Form: DEF 14A
Chunk 11
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holders in connection with approving the Amended and Restated 2021 Plan: Governance Best Practices The Amended and Restated 2021 Plan continues to incorporate the following corporate governance best practices that align our equity compensation program with the interests of our stockholders: • No evergreen provision . The Amended and Restated 2021 Plan does not contain an “evergreen” feature pursuant to which the shares authorized for issuance under the plan can be increased automatically without stockholder approval. • Clawback of awards . Awards granted under the Amended and Restated 2021 Plan are subject to recoupment under our Incentive Compensation Recovery Policy, which is described further on page 26, as well as any other recoupment arrangements or policies in effect at the time of grant. • No liberal definition of “change in control” . No change in control would be triggered by stockholder approval of a business combination transaction, the announcement or commencement of a tender offer or any board assessment that a change in control may be imminent. • No discounted stock options or stock appreciation rights . The Amended and Restated 2021 Plan requires that stock options and stock appreciation rights have an exercise price at or above the fair market value per share on the date of grant. • Prohibition on repricing . Repricing of stock options and stock appreciation rights without stockholder approval is prohibited under the Amended and Restated 2021 Plan. • No tax gross-ups . No participant is entitled under the Amended and Restated 2021 Plan to any tax gross-up payments for any excise tax pursuant to Section 280G or 4999 of the Code that may be incurred in connection with awards under the Amended and Restated 2021 Plan. • No liberal share recycling. Shares subject to an award will not be available for reuse if such shares are delivered or withheld to satisfy any tax withholding obligation, or not issued upon the settlement of an award or exercise of a stock option. • No dividends on unearned awards . The Amended and Restated 2021 Plan provides that dividends will be subject to the same vesting and forfeiture conditions as the equity awards to which the dividends relate. • Limit on non-employee director compensation . The Amended and Restated 2021 Plan limits the maximum compensation, including cash and equity, that may be paid to any individual for service as an outside director. • No single trigger “change in control” vesting . Grants will not vest automatically upon a change in control, but rather will