Applied Optoelectronics, Inc. - Form 8-K Filing

Applied Optoelectronics, Inc. has entered into two lease agreements for industrial buildings in Houston, Texas, with Hightower Phase II Owner, LLC. These agreements, dated August 31, 2026, cover two buildings, Building 4 and Building 5, with a total of approximately 1,093,807 rentable square feet. The leases have an initial term of 120 months, with commencement dates contingent on substantial completion of construction, anticipated within 16 months. The company has options to purchase both buildings for an aggregate price of $146,570,138, subject to adjustments. The total security deposit for these leases is $11.3 million, with portions due upon execution and within 10 days of the commencement date. Additionally, the company is required to pay approximately $2.55 million for structural-steel design modifications. The leases include provisions for rent abatement if substantial completion is delayed beyond 18 months and termination rights for the company if delivery is not made within 24 months. Both basic and additional rent, covering operating costs, taxes, and insurance, are payable by the company. The agreements also contain customary clauses regarding assignment, subletting, insurance, indemnification, events of default, and remedies, as well as termination rights tied to previous lease agreements for Buildings 1, 2, and 3.