Company: AAOI
Filing Date: 2025-04-09
Form Type: 8-K
Source: 0001683168-25-002374
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Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-04-09
Form: 8-K
Item: Item 1.01
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Item 1.01      Entry into a Material Definitive Agreement.  

On April 3, 2025, Applied Optoelectronics, Inc.
(the “ Company”) entered into a Lease Agreement (the “ Lease”) with Albany Road-Breck Exchange LLC, a Delaware limited
liability company (the “ Landlord”), pursuant to which the Company will lease approximately 38,897 rentable square feet of
space located at 2885 Breckinridge Boulevard, Suite 150, Duluth, Georgia 30096 (the “ Premises”).

The term of the Lease is eighty-four (84) months
and will commence on the earlier of (i) the day immediately following the date of Substantial Completion (as defined in the Work Letter
attached to the Lease as Exhibit C), or (ii) the date on which the Company commences operations at the Premises (the “ Commencement
Date”). The Lease also grants the Company a one-time option to extend the lease term for an additional five (5) years, subject to
timely notice and other conditions set forth in the Lease.

The Lease provides for an initial monthly base
rent of $31,770.83, which increases annually to $59,026.20 during the final 12 months of the term. For months 1 through 24, base rent
is abated and calculated based on reduced rentable square footage of 25,000 RSF and 32,000 RSF, respectively. The monthly base rent schedule
is as follows:

  Period             Monthly Base Rent  
 ────────────────────────────────────────
  Month 1 – 12              $31,770.83  
  Month 13 – 24             $41,893.33  
  Month 25 – 36             $52,446.12  
  Month 37 – 48             $54,002.00  
  Month 49 – 60             $55,622.71  
  Month 61 – 72             $57,308.25  
  Month 73 – 84             $59,026.20  

In addition to base rent, the Company is responsible
for its proportionate share of real estate taxes, insurance premiums, and common area maintenance expenses. Upon execution of the Lease,
the Company provided the Landlord with a security deposit in the amount of $59,026.20.

Additionally, the Lease outlines the scope of improvements
to be completed by the