Applied Optoelectronics, Inc. (AAOI) entered into a Lease Agreement for approximately 153,928 rentable square feet of space in Building #3, located at 16851 Blue Ridge Commerce Dr., Houston, Texas. The lease term is 130 months, commencing on the earlier of the date the company occupies the premises or February 10, 2026. The company will receive a tenant improvement allowance of $3,078,560.00 ($20.00 per rentable square foot). Base rent is abated for the first five months of the term. Monthly base rent for months 6-10 is $66,189.04, increasing to $132,378.08 from month 11, and escalating periodically thereafter at an average annual increase of approximately 3.5%. The company paid $163,163.68 in prepaid rent, to be applied against the eleventh month's rent, and an initial security deposit of $2,000,000.00. The security deposit is subject to partial reductions of $500,000 after 40 months, $500,000 after 70 months, and $340,000 after 100 months, contingent on timely payments and no defaults. The company is responsible for Operating Expense Payments, estimated initially at $30,785.60 per month, in addition to base rent. A one-time early termination right is available, effective after the 82nd full calendar month, subject to timely notice and payment of a termination fee. A one-time purchase option is granted to acquire the building and parcel for $30,257,846.86, with a notice deadline of September 15, 2026, and a closing deadline of December 15, 2026. The company has two options to renew the lease for five years each, exercisable 9-12 months prior to the expiration of the initial term or first renewal term.