Company: AAOI
Filing Date: 2025-09-24
Form Type: 8-K
Source: 0001683168-25-007212
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Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-09-24
Form: 8-K
Item: Item 1.01
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Item 1.01      Entry into a Material Definitive Agreement.  

On September 19, 2025, Applied Optoelectronics,
Inc. (the “ Company”) entered into a Lease Agreement (the “ Lease”) with Coleman Logistics Assets LLC (the “ Landlord”),
pursuant to which the Company will lease approximately 209,665 square feet of space (the “ Leased Premises”) located at 1111
Gillingham Lane, Sugar Land, Texas 77478 (the “ Building”). The Leased Premises will be used by the Company primarily for manufacturing
and related operations.

The Lease has a term of 126 months (the “ Term”),
commencing on the earlier of (i) the date the Company commences manufacturing operations within the Leased Premises, (ii) the date on
which the leasehold improvements are substantially completed, or (iii) March 31, 2026 (the “ Commencement Date”), and expiring
approximately 126 months thereafter, unless earlier terminated in accordance with the Lease. The Landlord has agreed to provide a construction
allowance toward the cost of leasehold improvements in an amount equal to the lesser of (i) the actual aggregate cost of such improvements
or (ii) $1,886,985.

Base rent under the Lease is abated for the first
seven months of the Term and thereafter increases on a scheduled basis through the end of the Term, reflecting an average annual escalation
of approximately 3.5%. Beginning in the eighth month of the Term, base rent will be $7.44 per rentable square foot on an annual basis
(approximately $129,992 per month), escalating periodically to $10.49 per rentable square foot on an annual basis (approximately $183,367
per month) during the final six months of the Term.

In addition to base rent, the Company will be responsible
for its proportionate share of operating expenses, including taxes, insurance, and maintenance costs, in accordance with the
terms of the Lease.

The Company also holds certain rights under the
Lease, including (i) a right of first refusal to lease any space in the Building that is contiguous to the Leased Premises, (ii) a right
of first offer to purchase the Building, and (iii) two successive options to renew the Lease for additional five-year terms, subject to
certain conditions, at the then-prevailing market rental rate determined in