{"url_path":"/sec/aaoi/8-k/2026-05-13/item-1-01","section_key":"item-1-01","section_title":"Item 1.01 **","topic":"sec","document":{"doc_type":"8-K","doc_date":"2026-05-13","source_url":"https://www.sec.gov/Archives/edgar/data/1158114/0001683168-26-003817-index.html","accession_number":"0001683168-26-003817","cik":"0001158114","ticker":"AAOI","issuer_name":"APPLIED OPTOELECTRONICS, INC.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1158114/0001683168-26-003817-index.html","primary_entity_key":"0001158114","primary_entity_name":"APPLIED OPTOELECTRONICS, INC."},"word_count":591,"has_tables":true,"body_markdown":"**Item 1.01**\n\n**Entry into a Material Definitive Agreement.**\n\n****\n\n \n\nOn May 8, 2026, Applied Optoelectronics, Inc. (the\n“Company”) entered into three separate lease agreements (each, a “Lease” and collectively, the “Leases”)\nwith Hightower Phase I Owner, LLC, a Delaware limited liability company (the “Landlord”), for three industrial buildings located\nin Houston, Texas (“Building 1,” “Building 2,” and “Building 3”). The Leases are intended for manufacturing,\nwarehouse, and office use.\n\n \n\nEach Lease has an initial term of 123 full calendar\nmonths, plus any partial month from the commencement date to the end of the calendar month in which the commencement date occurs. The\ncommencement date will be the earliest of: (i) the date on which the Company occupies any portion of the applicable premises and begins\nconducting business therein, (ii) the date on which the Landlord’s work is substantially completed, or (iii) the date on which such\nwork would have been substantially completed but for any tenant delay days.\n\n \n\nUnder each Lease, the Company is entitled to an\ninitial rent abatement period during the first three months. Commencing in the fourth month, base rent escalates periodically throughout\nthe term. The Company is also responsible for its proportionate share of operating costs, taxes, and insurance costs. The specific locations\nand rent schedules are as follows:\n\n \n\nBuilding 1 Lease: Located at 6000 McHard Road,\nHouston, Texas 77053, consisting of approximately 163,930 rentable square feet of industrial space, together with the approximately 3.34-acre\nadjacent unimproved tract known as Reserve Tract 4 (collectively, the “Building 1 Lease”). Monthly basic rent starts at $104,915.20\nin month four, escalating periodically to $146,127.30 during months 112 through 123. Monthly basic rent for Reserve Tract 4 starts at\n$6,680.00 in month four, escalating periodically to $9,303.99 during months 112 through 123.\n\n \n\nBuilding 2 Lease: Located at 6100 McHard Road,\nHouston, Texas 77053, consisting of approximately 343,332 rentable square feet of industrial space (the “Building 2 Lease”).\nMonthly basic rent starts at $205,999.20 in month four, escalating periodically to $286,918.45 during months 112 through 123.\n\n \n\nBuilding 3 Lease: Located at 17255 Chimney Rock\nRoad, Houston, Texas 77053, consisting of approximately 228,954 rentable square feet of industrial space (the “Building 3 Lease”).\nMonthly basic rent starts at $146,530.56 in month four, escalating periodically to $204,089.73 during months 112 through 123.\n\n \n\nEach Lease includes a purchase and sale agreement\n(each, a “PSA” and collectively, the “PSAs”) granting the Company an option to purchase Building 1, Building 2,\nand Building 3, together with the land on which such buildings are located. The PSAs provide for an aggregate purchase price of $102,250,000\nand require earnest money of $1,758,750. Closing is expected to occur forty-five (45) days following the Company’s exercise of the\npurchase option, subject to the terms and conditions set forth in the PSAs.\n\n \n\nIn addition, each Lease contains customary provisions,\nincluding restrictions on the Company’s ability to assign or sublease the premises, requirements for the Company to maintain certain\ninsurance, and indemnification obligations of the Company in favor of the Landlord. The Leases also include customary events of default\napplicable to the Company and corresponding remedies available to the Landlord, as well as termination rights for each party under certain\ncircumstances, including delays in delivery of the premises, casualty events, and condemnation.\n\n \n\nThe foregoing description of the Leases does not\npurport to be complete and is subject to and qualified in its entirety by reference to the full text of the Leases, which are filed as\nExhibits 10.1, 10.2, and 10.3 to this Current Report on Form 8-K and incorporated by reference herein.\n\n \n\n \n\n \n\n 2"}