Exhibit 10.2


 





China
Construction Bank Taipei Branch


Approval
Notice


 


	Applicant	Applied Optoelectronics, Inc. (AOI) Taiwan Branch
	Unified Business No.	28410552
	Responsible Person	Chih-Hsiang Lin


 


	I. Decision
	That your company applies for a loan of USD 10 million to our bank is approved as follows:


 


	II. Approved Terms
	1. Credit line details
	No.	Category	Amount/1000 (+/-)	Other Requirements on Interest Rate, Fee, and Amount
	A	
        [Category]:
        Working capital amount

        [Subject]: Short-term loan
	
        USD 10,000

        (+USD 0)
	
        1.Purpose:
        working capital

        2.Duration:
        revolving for 1 year from the approval date (to March 25, 2017); the maximum duration for each loan is 180 days but shall not exceed
        15 working days before the expiration of Standby L/C.

        3.Interest
        rate: calculated separately for each drawing.

        4.Collateral:
        Stand-by letter of credit (L/C) issued by a domestic branch of China Construction Bank with the China Construction Bank Taipei
        Branch as the beneficiary. The loan amount cannot exceed 97% of the amount of the stand-by L/C.

        5.Payment
        method: Pay the interest monthly, and pay back the principal at the appointed date

        6.Other
        requirements:

        (1)The
        bank may make loans in USD or NTD. When the loan is made in USD, you need to submit the transaction certificate (such as procurement
        and sales invoices or orders) approved by our bank and declare that the transaction certificate is not used by other financial
        institutions for any other financing. For outward remittance financing, the invoice or order needs to be submitted to the bank
        and the bank allocates the financing fund that is 100% of the invoice or order value directly to the supplier's account. For export
        invoice financing, the invoice needs to be submitted and the bank allocates the financing fund that is 100% of the invoice value.

        (2)The
        exchange rate between USD and NTD depends on the closing rate at 12:00 two days before the drawdown date (subject to the information
        released on the website of Taipei Forex Inc.).

        (3)The
        loan will automatically become unavailable 15 working days before the stand-by L/C expires, and the balance shall be paid off.

        (4)In
        case the Notice covers any balance on the previous line of credit, upon being executed as a contract, the previous line of credit
        will be invalid.

        (5)When
        our bank conducts post-loan monitoring on a quarterly basis, if the net worth on the most recent financial statement provided by
        the Borrower is negative, then the line of credit will cease to be drawn down until the net worth turns positive.




 


	2. Miscellaneous terms
	1. Before drawing down any amount, you should provide us the Minutes of Board of Directors' meetings. 3. If the notice has any mistake, the final approved documents by our bank shall govern.
	 
	3. Collateral Details
	Collateral	Appraised

 Amount	Appraisal

 Date	The percentage of 

loan granted	Maximum

 Guaranteed 

Loan	Amount

 set	Sequence

 set
	Stand-by L/C issued by a domestic bank	 	 	97%	 	 	 


 


	 
	4. Guarantor
	Name	Unified Business No./ID Number	Amount of the Promissory Note	Guaranteed Range
	N/A	 	 	 


 


	Legal Entity Financial Department of CCB Taipei Branch
	2016-3-29



 




 


 


 


 


 






    	 	2