Exhibit 10.2


 





General Credit Facility Agreement


 


The undersigned, Applied Optoelectronics,
Inc., Taiwan Branch. (hereinafter referred to as “Borrower”) and it guarantor (hereinafter referred to as
“Guarantor”, together with the Borrower, the "Undersigned") hereby agree to the terms and conditions set
forth below in addition to the General Loan Agreement, Letter of Joint Guarantee and other signed instruments with respect to the
credit facility extended by E. Sun Commercial Bank, Ltd. (hereinafter “Bank”):


 


Part I     Basic Terms


 





		1.	The one type of credit and the
line under this Agreement are as follows (marked with “V”):



  


	Credit in New Taiwan Currency (NTD)	Line of Credit	Credit in foreign currency 	Line of Credit
	□ Working Capital Loan	NTD 	□ Working Capital Loan	USD
	□ Advance for domestic draft	NTD	□ Issuance of foreign letter of credit	USD
	□ Export Loan	NTD	■D/A, D/P, O/A financing 	USD 3 million
	□ Guarantee for issuance of commercial promissory note	NTD	□ Guarantee 	USD
	□ Issuance of domestic letter of credit	NTD	□	 
	□ Guarantee 	NTD	□	 
	□	 	□	 




 


Borrower shall draw down the line
up to the above credit line on a revolving basis, provided that the balance of each line of credit upon such drawdown shall not
exceed the general credit line of NTD 90 million. In case of foreign currency, the general credit line shall be calculated
based on the foreign exchange rate published by the Bank.




 


In the event that there exists any
outstanding debt in the credit used by Borrower under the general credit line agreement, the remaining amount of such outstanding
debt shall be incorporated into the credit line and general credit line as defined in this article for the purpose of calculation.


 


In the event that any drawdown is
in foreign currency and exceeds its single credit line or general credit line due to the fluctuation of foreign exchange rate or
otherwise, such exceeding part shall be jointly repaid by the Undersigned.


 


		2.	During the revolving credit facility term, unless otherwise provided by each type of credit, Borrower
may request for loans from the Bank during the period from February 6, 2015 to February 6, 2016, with the initial
drawdown to occur no later than June 6, 2015, or this Agreement shall be void. Even if the amount of the drawdown during
the above revolving credit term shall be repaid after expiration of such term, the Undersigned shall assume the responsibility
for repayment and guarantee as required hereunder.



 


		3.	For the purpose of drawdown of credit, Borrower shall submit a Drawdown Request acceptable to the
Bank and relevant documents and can only draw down the line with the approval of the Bank. Subject to the approval by the Bank,
the term of the drawdown shall be calculated in accordance with the relevant Drawdown Request. Each Drawdown Request and document
shall be deemed a part of this Agreement and shall have the same legal force as this Agreement.



 






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		4.	Borrower agrees that the drawdown shall be deemed received by Borrower once the Bank deposits the
drawdown into the Borrower’s bank account opened with the Bank or satisfies the purpose designated by the Borrower.



 


		5.	Base interest rate and time deposits interest rate index



 


		(I)	Base interest rate



 





		(1)	Basis of pricing:
The base interest rate = the arithmetic average of the overnight TAIBOR over the past three months + the margin determined, where
“the arithmetic average of the overnight TAIBOR over the past three months” is based on the arithmetic average of the
overnight TAIBOR published by “the Taipei Interbank Discount Center” and “the margin determined” will be
the rate determined and subject to adjustment by the Bank in consideration of the funding cost, operational cost and interest risk.
The Bank may in its sole discretion adjust the foresaid calculation to reflect the change of prevailing market environment.



 


		(2)	The reference rate will be based on the arithmetic average of the overnight TAIBOR published by
the Taipei Interbank Discount Center over a full 3-month period (rounded up to two decimal places) prior to the adjustment date.



 





		(3)	Frequency
and method of adjustment



 


		(a)	□ The base interest rate will be adjusted on a quarterly basis respectively on 23 March,
23 June, 23 September and 23 December each year (or the business day that follows if it falls on a non-business day).



 


Frequency of Adjustment Table:


	Adjustment date	23 March	23 June	23 September 	23 December
	Effective period	23 March – 22 June	23 June – 22 September	23 September – 22 December	23 December – 22 March of the following year
	Reference date to be taken	1 December – 29 February	1 March – 31 May	1 June – 31 August	1 September – 30 November


 





		(b)	□ The
base interest rate will be adjusted on a monthly basis on the 23rd day each month (or the business day that follows if it falls
on a non-business day).



  








		(4)	In case of
a major force majeure event (for example, the reference bank acquires or merges or is acquired or merged, is defunct or information
on the overnight TAIBOR is not accessible to the reference bank), the Bank may change the basis for determining the base interest
rate.



  


		(II)	Time deposits interest rate index



 


		(1)	Basis of pricing: The time deposits interest rate index means the average of the interest rates
applicable to one-year time deposits adopted by the reference bank to be selected from among the Bank of Taiwan, Changhwa Bank,
Hua Nan Bank, First Bank, Cooperative Bank, Land Bank, Mega Bank, Cathay United Bank, Taiwan Medium and Small Enterprises Bank
and the Chinatrust Bank (as posted on the website of the Bank as of the drawdown).
	 	 	 
	 	(2)	Frequency
and method of adjustment:



 






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		(a)	□ The time deposits interest rate index will be adjusted on a quarterly basis with adjustments
to occur on 21 February, 21 May, 21 August and 21 November respectively each year (or the business day that follows if it falls
on a non-business day). The reference rate taken will be the average of the daily interest rate posted by the Central Bank of Republic
of China (Taiwan) over the period from the 11th day through the 17th of the month rounded up to two decimal places.



 


Frequency of Adjustment
Table:


	Adjustment date	21 February	21 May	21 August 	21 November
	Effective period	21 February – 20 May	21 May – 20 August	21 August – 20 November	21 November – 20 February of the following year
	Reference date to be taken 	11 – 17 February	11 - 17 May	11 – 17 August	11 – 17 November


 


		(b)	□ The time deposit interest rate index will be adjusted on a monthly basis
                                                          on the 21st day each month (or the business day that follows if it falls on a non-business day) and effective from the 21st
                                                          day of the month through the 20th day of the following month. The reference rate taken will be the average of the daily
                                                          interest rate posted by the Central Bank of Republic of China (Taiwan) over the period from the 11th day through the 17th of
                                                          the month rounded up to two decimal places.



 


		(3)	The undersigned agree that in the event of any of the following, the Bank may in its sole discretion
change the reference bank and forthwith select another domestic bank for the designated bank to take the reference rate.



 





		(a)	The reference bank merges
or is merged, defunct, voluntarily suspends its business, is bankrupt, subject to reorganization or involuntary business suspension,
or is put under official supervision or takeover as provided in the Article 62 of Banking Act of Republic of China.



 





		(b)	One of the reference banks
has withheld the offer of products to which the fixed interest rate applicable to one-year time deposit applies.



  


		(III)	Manner of disclosure: Each post-adjustment base interest rate and time deposit
interest rate index will be published on the interests rate bulletin board of the business units each of the Bank and the official
website of the Bank (www.esunbank.com.tw).



 


		6.	Borrower hereby authorizes the Bank to withdraw from time to time from Borrower’s current
account (account No. 0808-940-005298) with the Bank via the automatic equipment or based on the evidence of withdrawal of savings
signed by the authorized signatory of the Bank without the relevant passbook, signed request for withdrawal or check drawn by Borrower
for the amount equal to the relevant amount of obligation owed, due and payable by Borrower as well as the relevant cost and charges
incurred (including the principal, interest, default penalty, service charges, service charges of credit guarantee fund, insurance
premium, cost arising from the Bank’s enforcement of the relevant claims in Borrower). Borrower acknowledges and agrees that
the above relevant procedure shall be in accordance with the relevant rules of the Bank and that he/she shall not terminate, withdraw
or impose restrictions on the above authorization without the consent of the Bank before his/her indebtedness owed to the Bank
is duly repaid in full and nor shall he/she close the above savings account. Borrower agrees that this Agreement serve as the evidence
of the above authorization.



 


		7.	The Borrower shall repay in NTD any foreign currency loan and accrued interest at the exchange
rate designated by the Bank at the time of such repayment or at the rate as set forth in a forward foreign exchange purchase agreement
executed by Borrower and the Bank or in the original currency. In the event that Borrower delays in repayment of any loan and the
exchange rate between the foreign exchange loan and the NTD changes, the risk associated with such exchange rate variation shall
be borne by Borrower, and the Bank shall have the right to record the principal, interest and relevant costs in NTD at the exchange
rate published by the bank on the record date and the Undersigned shall not raise any objection to such conversion date, foreign
exchange rate and the amount. However, the Bank shall not be obligated to make such conversion.



 






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		8.	Borrower requesting for drawdown of the credit line shall pay in full the loan, interest, account
opening service fee and guarantee service fee and acceptance service fee. In case of delay in repayment of the Principal, Borrower
shall pay the late payment interest at the rate agreed upon by both parties. In case of delay in repayment of the principal and
interest of less than 6 months, as from the maturity date, the late payment interest at the rate of 10% shall be charged; for the
part the payment of which is delayed for more than 6 months, the late payment interest at the rate of 20% shall be charged. In
the event that Borrower fails to repay the loan or pay any costs on a timely basis, Borrower shall pay the late payment fee at
the base rate of the Bank plus the annual rate of 3.95% as from such maturity day.



 


In the event that Borrower
fails to repay any foreign exchange loan or costs on a timely basis, the late payment interest shall be charged at the foreign
exchange credit interest rate published by the Bank on the maturity date or due date or at the NTD base rate plus an annual rate
of 3.95%, whichever is higher. In case of delay in repayment of the principal and interest of less than 6 months, as from the
maturity date, the late payment interest at the rate of 10% shall be charged; for the part the payment of which is delayed for
more than 6 months, the late payment interest at the rate of 20% shall be charged. In such case, the Undersigned shall be jointly
and severally liable for the necessary costs incurred by the Bank for the purpose of enforcing its claims under this Agreement.


 


		9.	In the event that the Borrower entrusts the Bank to guarantee or accept any bills and the Bank
is obligated to make any advance due to Borrower’s non-performance under any of such, or any breach event as described in
article 5 of the Credit Facility Agreement (in case of the event descried in article 5.2, the Bank shall give a reasonable prior
notice or reminder letter) occurs, then, in order to ensure that the Borrower performs its repayment obligation in respect of such
guarantee or acceptance, the Bank may liquidate first all the bills guaranteed or accepted in the benefit of the Bank without performing
its guarantee or acceptance responsibility and dispose of any collaterals by operation of law. The Bank may, after deduction of
such amounts advanced and any other necessary costs incurred by it, retain the remaining amount of such proceeds to the extent
of the amount payable under such guarantee or bill acceptance. In the event that the collateral is insufficient or absent, the
Undersigned shall replenish the collateral or provide sufficient cash, or allow the Bank to retain the cash deposited by Borrower
with the Bank for any further repayment to the extent of the amount payable under such guarantee or acceptance (in case of time
deposit, the deposit deed shall be terminated first.) In the event that the Bank is exempted from the guarantee or acceptance obligation
without making any advance, such retained amount shall be returned to the Undersigned. (This clause
is otherwise negotiated)



 


		10.	Guarantor represents and warrants to be jointly and severally liable for the obligations, including
the principal, interest, default interest, default penalty, damages and all debts arising from the obligations owed to the Bank
by Borrower under this Agreement. Guarantor further represents and warrants that he/she will neither voluntarily withdraw his/her
guaranty nor refuse to perform his/her obligations as the guarantor by reason of the absence of Guarantor’s specimen-registered
seal on the Drawdown Request issued by Borrower.



 


		11.	The balance of the line of credit hereunder shall be determined subject to the amounts reflected
in the Drawdown Request, the Application For Issuance of Irrevocable Documentary Letter of Credit, or the Bill or the Bank’s
relevant vouchers or book records.



 


		12.	With respect to any operations, responsibilities and liabilities under the line of credit hereunder,
the Undersigned shall comply with, in addition to terms and condition of this Agreement or any other special provisions, the Uniform
Customs and Practice for Documentary Credits, the Uniform Rules for Collections, the International Rules for the
Interpretation of Trade Terms, as well as rules related to foreign exchange administration, published by International Chamber
of Commerce. In case of amendment to any of the above rules, the Bank may, subject to such amended rules, opt to change, adjust
or terminate this Agreement and the Undersigned will not raise any objection thereto.



 






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		13.	This Agreement shall be performed in Banqiao Branch of the Bank. The undersigned agree that
the Taipei District Court or the New Taipei District Court, Taiwan will be the court of first instance having jurisdiction
over all actions arising from or in connection with this Agreement.



 


Part II. Special Terms


 


General
Working Capital Loan


 


In case that the Borrower applies for general working capital loans, it is willing to abide by the following
agreements:


		1.	The
maximum term for each loan shall not exceed _________. In case of the loan applied in foreign currencies, the maximum term for
each loan shall not exceed _________.







		2.	Loan interest shall be calculated and paid from the date of loan on monthly basis based on the interest rate recorded in the
application for allocating loans, or based on   _________% increased annual rate of □ benchmark interest rate □ time
deposit interest rate index (at present it is  _________% of annual rate), and shall be adjusted with the adjustment of pricing interest
rate regulated above.



In case of the loan applied in foreign currencies, the
interest shall be calculated from the date of loan according to the interest rate recorded in the application for allocating loans
or based on  _________.


 


Advance for Domestic Drafts


In case that the Borrower applies for advance for domestic
drafts, it is willing to abide by the following agreements:


		1.	The maximum term for each loan shall not exceed  _________.









		2.	Loan interest shall be calculated and paid from
the date of loan on monthly basis based on the interest rate recorded in the application for allocating loans, or based on 
_________% increased annual rate of □ benchmark interest rate □ time deposit interest rate index (at present it is _________%
of annual rate), and shall be adjusted with the adjustment of pricing interest rate regulated above.






		3.	The Borrower shall attach the bills obtained from legitimate transactions such as commodity sale, rental or service providing
and approved by the Bank, and transfer them to Bank with endorsement. The loan amount is decided by the Bank.





		4.	The Borrower agrees that the bills provided shall be exchanged and deposited into the special account for payment set by the
Bank on maturity date (i.e. the demand deposit account No.  _________). The Bank shall transfer money from the special account to
offset the Borrower's debts depending on the specimen seal impression at any time with the date, amount, sequence and method of
offsetting the principle and interest decided by the Bank. The offsetting of principle and interest shall be transferred into the
Borrower's only account opened in the Bank, but the Bank has no obligations for the aforesaid items. Without the Bank’s permission,
the Borrower shall not use the deposit in the special account.



		5.	In the event that bills provided by the Borrower cannot be used for acceptance or payment, or the payment is not made on
maturity date, the Bank may be free of issuing the certificate of protest and notify the refusal reasons, and the Borrower shall
redeem the bills with the same amount in cash within 3 days after receipt of the notice. In case of overdue redemption, the Bank
has no need to issue notice or exhortation, and decides that the loan term hereof expires. (This clause is otherwise negotiated)



		6.	If the bill of loan held by the Borrower is lost or destroyed due to delivery or other accidents or is invalid because it is
forged and altered, the Borrower may pay off the debt based on the amount of bill recorded in account books of Bank.



 






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Export Loan


In case that the Borrower applies for the export loan,
it is willing to abide by the following agreements:


		1.	The maximum term for each loan shall not exceed _________.



		2.	Loan interest shall be calculated and paid from the date of loan on monthly basis based on the interest rate recorded in the
application for allocating loans, or based on   _________% increased annual rate of □ benchmark interest rate □ time
deposit interest rate index (at present it is _________% of annual rate), and shall be adjusted with the adjustment of pricing interest
rate regulated above.



		3.	The
                                         Bank shall require the Borrower to attach the documents such as export L/C, export collection
                                         files, foreign orders, export contracts, orders or contracts of purchased products by
                                         domestic traders for export or contracts of export cooperation or accepting the entrustment
                                         of processing goods for export, and based on such documents, the Bank determines the
                                         amount of loans allocated.










		4.	Borrower’s representation:  






		(1)	If the Borrower attaches export L/C or export collection files to apply for loan, it shall entrust the Bank to handle export
negotiation or export collection formalities of abovementioned L/C, and agree that the money obtained therefrom or from other exports
will be used to repay the principal and interest of the loan first.
	 	(2)	If the Borrower attaches the foreign order or export contract to apply for loan, it shall agree, upon receipt of the order
and letter of credit under the contract or preparing export collection files, to submit the files immediately to the Bank, and
handle the bill purchased or export collection or other settlement procedures to the Bank in the loan term. The export payment
will be used to repay the principal and interest of the loan first.
	 	(3)	If the Borrower attaches the order or contract of the domestic traders purchasing export products or documents for export
cooperation or contract of accepting the processing and export to apply for allocation of loan, the Bank shall require the Borrower
to sign the letter of commitment with the domestic payer of above files paying the payables directly to the Bank. The Borrower
shall also agree to use the payment to liquidate the principal and interest of the loan first.
		(4)	If the Borrower does not attach export L/C, export collection files, orders, contracts and agreements to apply for allocation
of loan, it shall agree to use the payment from export negotiation, export collection or other exports handled in the Bank during
loan term to repay the principal and interest of the loan first.



 


Guarantee for Issuance of Commercial Promissory Notes


In case that the Borrower entrusts the Bank to be the Guarantor
as its issued commercial promissory note, it is also willing to abide by the following agreements:


		1.	The period from the issuance date to the maturity date of each commercial promissory note guaranteed shall not exceed _________ days.



		2.	The Borrower shall pay the guarantee service fee which equals to _________ % of guaranteed amount
                                                        annually, and                                                         pay the guarantee service fee to the Bank for once
                                                        time                                                         on the guarantee day.



		3.	After the Bank's guarantee on the commercial promissory note presented by the Borrower, the Borrower is willing to deposit
the note payment in the special account for cashing of the settlement bank designated by the business competent authority prior
to the expiration of the note. For any delay which results the Bank's advances, the Borrower is willing to make full repayment.



 


Bill Acceptance


In case that the Borrower entrusts the Bank to make bill
acceptance, it is willing to abide by the following agreements:


		1.	The maximum term for each acceptance bill from acceptance date to the maturity date shall not exceed _________ days.



		2.	The Borrower shall pay the service fee for the bill acceptance which is  _________% of the bill amount annually in once time
to the Bank on the acceptance date.



		3.	When the Borrower entrusts the Bank for acceptance, it shall also sign a third party's endorsement of the promissory note (for
which the NTD shall prevail and the financier is the payer and is free from providing certificate of protest) approved by the Bank
and transfer to the Bank as counterfoil. The Bank may withdraw the money for payment by the promissory note a business day before
the maturity date. If the Borrower fails to compensate the payment for the promissory note signed above on time, which results
the Bank's advances, the Borrower shall repay the full advances, and pay the interests for overdue payment and penalty in accordance
with the agreement hereof.



 






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Guarantee


In case that the Borrower (namely the Appointer) entrusts
the Bank to make guarantee, it is willing to abide by the following agreements:


		1.	Guarantee items: the files which the Bank approves to issue guarentee shall prevail.



		2.	Each guaranteed money, term and contents, etc. stipulated in the Bank's guarantee files shall prevail.



		3.	In case that the Appointer entrusts the Bank to make guarantee, it shall pay the service fee which is _____% of guarantee money
in actual term or which is recorded in the application used □ at once □_______ to the Bank upon the Bank issuing guarantee
files. Each minimum service fee shall be (currency) _____________. The Appointer may also pay the postage or other expenses, if
any.



		4.	The Appointer shall perform the item subject to the Bank's guarantee according to section 1 above, and will notify the Bank
the performance progress at any time. If the Appointer delays the performance which results in the Bank's payment of guarantee
money in advance, the Appointer may return the full payment immediately, and pay the interests for late payment and penalty in
accordance with the agreement hereof.



		5.	If the Bank is notified by the beneficiary of the issued guarantee files to perform the guarantee responsibility, the Bank
shall, without recognition or concern on whether the conditions of matter guaranteed are met or there are existing disputes, directly
perform the guarantee responsibility.



		6.	In case the letter of credit is applied as guarantee method, the regulations of Uniform Customs and Practice for Letter
of Credit released by international Chamber of Commerce shall be applicable. 



 


Issuance of L/C


In case that the Borrower (namely, the Appointer) entrusts
the Bank to issue the L/C (including sight L/C, Usance L/C and advance L/C), it may abide by the following agreements:


		1.	In case that the Appointer entrusts the Bank to issue domestic L/C, it is willing to abide by the following agreements:



		(1)	When the Appointer entrusts the Bank to issue the domestic sight L/C, the draft shall be payable at sight and the liquidation
date for each debt shall be the day before the beneficiary notifies the payment or the maturity date notified by the Bank. In case
that the Bank agrees to make the payment of sight draft as advance payment to beneficiary through the Appointer's application,
the maximum term for advance payment is 10 days with the interest rate calculated on monthly basis based on the Bank's _______%
increased annual interest of □ benchmark interest rate □ time deposit interest rate index (at present it is ______%
of annual interest) and shall be adjusted with the adjustment of pricing interest rate regulated above.



		(2)	When the Appointer entrusts the Bank to issue the domestic usance L/C, the maximum term of the draft shall not exceed ________
days. The Appointer shall hand over the principle and interest to the Bank for payment one day before the maturity date of the
draft under the L/C or on the date notified by the Bank.



		(3)	For all draft payment under the L/C made by the Bank in advance, the Appointer shall entrust the Bank to collocate short-term
loans as repayment depending on the Application for Issuance of the Domestic Irrevocable Credit, and take the contract and
above Application as certificates of loan and may abide by the following agreements:



		a)	The maximum term for each loan shall be _________ days. Loans still shall be handled after the period
of use of the credit line in the contract or (and) after the validity period of the L/C.



		b)	The interest is calculated based on the rate notified by the Bank, or based on _______% increased
annual interest of □ benchmark interest rate □ time deposit interest rate index (at present it is ______% of annual
interest) and shall be adjusted with the adjustment of pricing interest rate regulated above.



		c)	After the Bank transfers the loan into the Appointer's No. _______ account for ________ deposit,
the deposit shall be used to pay the amount of the draft or L/C by automation equipment or personnel in the Bank who is entitled
to sign issuing certificate of deposit expenditure or transferring through without depending on the Appointer's deposit book or
withdrawal slip, and its processing method shall be subject to related stipulations in the Bank with the contract as proof of authorization.



 






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		2.	In case that the Appointer entrusts the Bank to issue foreign L/C, it is willing to abide by the following agreements:



		(1)	When the Appointer applies for the foreign L/C in the Bank, it shall fill out one by one the Application for L/C and
files required by the Bank. For identification of the credit balance, the contracting parties agree that the amount recorded in
the Application for L/C presented by the Appointer or in the Bank's related draft and account book shall prevail.



		(2)	The Appointer admits that the difference between each amount of L/C recorded in the Application for L/C and the settled amount
has been paid by the Bank is payment made by the Bank in advance, and agrees to take the Application for L/C or the Bank's
relevant documents as certificates.
	 	(3)	When the Appointer applies for the foreign sight L/C in the Bank, it shall repay the advance and
pay the interest raised herefrom and related costs within 15 days after delivering the shipping documents under each L/C and receiving
the Bank's notice. But in any of the following circumstances, the repayment period is as follows:






	 	a)	When the shipping documents has arrived while the goods has not yet arrived, the Appointer shall submit the certificate
documents from the shipping company and make repayment within 3 days after arrival of the goods. If the goods have not arrived
after 60 days of delivery of shipping documents and receiving the Bank's notice, the Appointer shall make repayment immediately.
	 	b)	When the goods have arrived while the shipping documents have not been delivered, and the countersigning letter
of guarantee needs to be applied for, the Appointer shall make repayment immediately and pay interests for 7 days first; the same
shall apply for taking delivery of goods by duplicate B/L endorsement.
		c)	In case of partial shipment of goods, the Appointer shall repay the Bank's advances according to
the proportion of the amount of batch shipping documents to the amount of the L/C.



		(4)	When the Appointer applies for the foreign usance L/C in the Bank, the maximum term, calculated from the invoice date or payment
date of the Bank's foreign agency, for draft or loan under the L/C shall not exceed ______ days with the maturity date of the draft
or the date noticed by the Bank as the liquidation date.



		(5)	Interests of advances in foreign currency under the Special Terms shall be calculated based on the rate noticed by the Bank
during payment date of the Bank or foreign agency to the maturity date of advances. At the same time, the Bank shall adjust the
interest in a timely manner in accordance with the foreign exchange business credit interest rates set by the foreign exchange
trading center or the Bank's borrowed foreign exchange capital cost increased interest rates.



		(6)	For all draft payment under the L/C made by the Bank in advance, the Appointer shall present application, promissory note or
other debt certificates, entrust the Bank to make repayment by short-term loans in NTD it applied for, take the contract as certificate
of loan and is willing to abide by the following agreements:



		a)	The maximum term for each loan shall be _________ days. Loans still shall be handled after the period
of use of the credit line in the contract or (and) after the validity period of the L/C.



		b)	The interest is calculated based on the rate recorded in the application, or _______% increased
annual interest of □ benchmark interest rate □ time deposit interest rate index (at present it is ______% of annual
rate) and shall be adjusted with the adjustment of pricing interest rate regulated above.



		(7)	If the Appointer fails to handle the customs clearance delivery procedures after the arrival of shipping documents under
each L/C, which leads the Bank to suffer any loss, term of advances for it shall be deemed as expired after the Bank's notice and
exhortation in reasonable period, and the Bank shall request compensation in NTD, or make custom declaration and delivery of goods
in order to preserve creditor's rights. The Bank can also sell imported goods at auction or conduct disposal (including method,
price and time, etc.) to liquidate the debt for the Bank and for all expenses and losses (including taxes paid for customs clearance
delivery, transport costs and other costs) due to the disposal. Contracting parties shall take the joint responsibilities to repay
for the part not compensated. (This clause is otherwise negotiated)



 






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		(8)	When the Appointer imports goods by import collection method, it shall provide countersigning letter of guarantee duplicate
bill endorsement within the agreed credit line subject to the Bank's agreement, and shall submit the affidavit (special for import
collection guarantee delivery or duplicate bill endorsement) for each time and relevant contract and documents the Bank required.
The contracting parties approve to, based on the amount and agreed items in each affidavit and related contract documents, be responsible
for the compensation for the Bank's damage until the Appointer completes the bill acceptance or makes payment after the Bank receives
the foreign documents.
	 	(9)	In the countersigning letter of guarantee duplicate bill endorsement under L/C or imported collection signed by the Bank
as applied for by the Appointer, if the goods, specifications, unit price, total amount and delivery conditions listed are inconsistent
with shipping documents received subsequently, the Appointer may be responsible for paying the balance and handling bill acceptance,
payment and other formalities according to the conditions listed in the shipping documents.
	 	(10)	Any loss suffered by the Bank due to the inconsistency between content of documents signed by the Bank and documents received,
the contracting parties may assume all responsibility for compensation.
	 	(11)	The content recorded in the affidavit of B/L or duplicate bill endorsement contained shall be regarded as attachment hereto
and the contracting party is willing to abide by it. The Appointer may provide shipping documents and purchasing goods recorded
in the L/C hereunder and alternative pledge of guaranteed goods as the guarantee of advances, loans and other debts under the L/C,
and take the contract as certificate of guarantee. The Appointer agrees the Bank to obtain the pledge of right for all delivery
certificates (such as import license and related delivery documents, etc.) of purchased material from the date of the Bank issuing
the L/C to the date of the purchased good arriving, and obtain the pledge of movables from delivery date of the purchased goods.
In case of the defects of documents listed in the shipping documents arrival notice under each L/C, if the Appointer does not accept
the defects and entrusts the Bank to negotiate with foreign negotiating bank, the Bank bears no responsibility for failure of the
negotiation. The Appointer may also be responsible for repaying the principle and interests of advances and loans and expenses
occurred according to the stipulations hereof with any loss caused to the Bank's right be compensated by contracting parties.
		(12)	Various clauses in the Special Terms shall still be applicable when the Appointer entrusts the Bank to issue the L/C financing
in a triangle trade.



		3.	Besides the above two agreements, the Appointer may still abide by the following agreements:



		(1)	If the Bank agrees to handle the L/C hereunder, the service fee shall be calculated according to the rate stipulated by the
Bank.



		(2)	Through the Bank's review, if the draft and its auxiliary documents under the L/C issued by the Bank as entrusted by the Appointer
are in line with the L/C conditions and of which the acceptance and payment are completed, the Appointer may make payment on time.
In the event that the above draft is proved to be fake, forged or altered or to be defective (including inconsistency of quality
or quantity of goods with that on documents), the Bank shall bear no responsibility, and the Appointer shall not refuse the payment
by any reason.



		(3)	In case that the L/C hereunder is transferred in error, delayed or interpreted in error, all or part of the document or goods
recorded in documents are destroyed, delayed or not sent to the goods delivery place, goods are lost or damaged in transport process
or destination because of it is uninsured or underinsured or detained by any third party or due to other factors, the Bank shall
bear no responsibility. The Appointer shall still make full payment in accordance with the amount recorded in the L/C.



		(4)	In case that the beneficiary of the L/C or the salesperson does not fulfill the contract, goods purchased under each L/C are
delivered in delay or are defective or lost and damaged due to force majeure, or the insurance company refuses claim, the claim
is insufficient or compensation is delayed, the Appointer shall assume all responsibilities. If the term of L/C has been expired
for 3 weeks, the Bank may directly cancel it and use the payments from returned remittance to compensate the advances and loans
hereunder.



 






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		(5)	If required by the Bank, the Appointer may obtain the Bank's agreement for insurance types and conditions of goods under each
L/C, and hand over the original insurance policy and copy of its receipt to the Bank with the Bank as the priority beneficiary.
The Bank, if necessary, shall notice the Appointer to buy other insurance with all expenses borne by the Appointer. If the Appointer
does not apply for insurance or renew insurance after expiration, the Bank shall handle for it without the obligations in buying
insurance. If the Bank pays the coasts occurred in handling, the Appointer may make repayment immediately.



 


D/A, D/P and O/A Financing


In case that the Borrower applies for D/A, D/P and O/A
financing, it is willing to abide by the following agreements:





	1.	The term for each loan shall not exceed 120 days.
	2.	The interest shall be calculated from the date of loan based on _________  or the interest rate recorded in the application
for loans.
	3.	For the import financing part, the Bank shall apply the loan allocated as repayment for the payable
foreign exchange funds of the Borrower handling the D/A, D/P and O/A, etc. in the Bank.
	4.	The Borrower shall apply loan in other foreign currencies under D/A, D/P and O/A to the Bank with each amount calculated
in USD in accordance with the exchange rate designated by the Bank, and revolved within the limit stipulated herein.
	5.	When the
Borrower applies for importing goods under D/A, D/P and O/A, it shall provide countersigning letter of guarantee duplicate bill
endorsement within the limit of borrowed money stipulated herein subject to the Bank's agreement, and shall submit the affidavit
(special for import collection guarantee delivery or duplicate bill endorsement) for each time and relevant contract and documents
the Bank required. The contracting parties and the Guarantor approve to, based on the amount and agreed items in each affidavit
and related contract documents, be responsible for the compensation for the Bank's damage until the contracting parties
complete the bill acceptance or make payment after the Bank receives the foreign documents.






		6.	When the Borrower applies for the loan under D/A, D/P and O/A, it shall present application for
loan, promissory note or other debt certificates, and entrust the Bank to make repayment by short-term loans in NTD it applied
for, take the contract as the certificate of loan and is willing to abide by the following agreements:



		(1)	The maximum term for each loan shall be  _________days. The loan still shall be conducted after the period of using the credit
line.



		(2)	The interest is calculated based on the rate recorded in the application when borrowing, or based on _______ interest rate
______ annual interest __________% (at present it is ______% of annual interest) and shall be adjusted with the adjustment of __________
interest rate regulated above.



		(3)	In case of the damage or depreciation of all or part of goods purchased or sold by using the loans due to stranding, theft,
fire and flood or other incidents of force majeure in transport, or if the insurance company refuses claim or makes inadequate
compensation or delays compensation, or such goods cannot be imported or exported for other reasons, the contracting party shall
make disposal by itself without any obligation and responsibility on the Bank.



 






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Yours sincerely


 


E. Sun Commercial Bank


 


The contracting parties declare
that they have reviewed all above clauses and made full understanding. It is hereby to promise to sign the Contract with the signing
and seal as follows:


 





	Borrower:	Applied Optoelectronics, Inc., Taiwan Branch	(Seal)
	Responsible Person:	Chih-Hsiang Lin	 
	Address:	No.18, Gong 4th Rd., Linkou District,	 
	 	New Taipei City	 
	Joint Guarantor:	 	(Seal)
	Address 	 	 
	 	 	 
	 	 	 
	Joint Guarantor:	 	(Seal)
	Address 	 	 
	 	 	 
	 	 	 
	Joint Guarantor:	 	(Seal)
	Address:	 	 
	 	 	 
	 	 	 
	Joint Guarantor:	 	(Seal)
	Address:	 	 







 


 


The March 9, 2014 year of the Republic of China’s
Era.


 


 


Credit Account No.
009977  Reviewed by:________ Handled by::________ Checked by: 







 






    	11



    	 



    

 


Supplementary
Agreement







 


The Undersigned (the Borrower and Joint Guarantor) signed a General
Credit Facility Agreement amounting to Ninety million New Taiwan Dollars Only on March 9, 2015 with your bank (hereinafter
referred to as the Original Agreement). This Supplementary Agreement is concluded to supplement the Original Agreement:


 


		1.	Supplementary Terms



The Borrower agrees to remit the payable notes from
the buyer to which the credit line was extended to the account opened in your bank and use the inward remittance to pay for
the loan received from your bank. If the Borrower fails to remit in the specified amount under this Supplementary Agreement, ■the
line of credit shall be unavailable to the Borrower and the Borrower shall immediately pay
off the loan □the line of credit shall be unavailable to
the Borrower and the Borrower shall pay back the entire loan amount under this Supplementary Agreement within five days.


		2.	This Supplementary Agreement is an integral part of the Original Agreement and shall have the same
legal validity as the Original Agreement. All the other parts and provisions in the Original Agreement shall remain fully valid
except the clauses that conflict with this Supplementary Agreement, and the Undersigned agrees to continue to comply with the Original
Agreement.



 


 


Yours sincerely:


E. Sun Commercial Bank


The Borrower and the Joint Guarantor have understood all of above
terms and conditions within a reasonable review period and agreed to sign this Supplementary Agreement:


 


Borrower: Applied Optoelectronics, Inc., Taiwan Branch (Seal)


 


Responsible Person: Chih-Hsiang Lin


Address: No. 18 Gong 4th Road, Linkou District, New Taipei City


	Joint Guarantor: 	(Seal)
	Address:	 
	Joint Guarantor:  	(Seal)
	Address:	 
	Joint Guarantor:	(Seal)
	Address:	 


 


The Republic of China, March 9, 2015


 


Credit Account No. 9977 Reviewed by: __ Handled by: __ Checked
by: 


 


	2009.06 	 (specified inward remittance-credit line unavailable)



 



    	12



    	 



    


 


Promissory
Note


 


The drawer promises to pay the sum of Ninety million New Taiwan
Dollars unconditionally to E. Sun Commercial Bank or to the order of E. Sun Commercial Bank on the date of 
fixed by this promissory note.


		1.	The interest is calculated based on _______ interest rate ______ annual interest __________% (at
present it is ______% of annual interest) in □fixed or □floating mode since the
issuing date of this note and is paid by month. If the floating mode is selected, the drawer agrees to adjust the abovementioned
interest based on the adjustment of _______interest rate regulated above. In case of any delay in paying the interest or failure
to perform obligations when due, a penalty shall be charged as follows: 10% of the agreed interest rate for the delay or failure
that lasts for less than six months, as from the due date; 20% of the agreed interest rate for the delay or failure that exceeds
six months.



		2.	Under this note, either the protest or notification obligations stipulated in Article 89 of the
Negotiable Instruments Act are waived.



		3.	Place of Payment: No. 90, Section 2, Wenhua Road, Banqiao District, New Taipei City



 


 


Maker: Applied Optoelectronics, Inc., Taiwan Branch (Seal)


 


 


 


Responsible Person: Chih-Hsiang Lin


Address: No. 18 Gong 4th Road, Linkou District, New Taipei City


 


	Maker: 	  (Seal)
	Address:	 
	 	 
	Maker:    	 (Seal)
	Address:	 
	 	 
	Maker:  	 (Seal)
	Address:	 


 


 


The Republic of China, March 9, 2015


 


Credit Account No. 009977 


Approval Code: H145416822  Reviewed by: ______ Handled
by:  ______ Checked by: 


 


	L577A 2005.11  	  (In this version, the interest is left blank.)


 




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Letter of
Authorization


 


The Authorizing Parties signed and delivered a promissory note amounting
to Ninety million New Taiwan Dollars to your bank as the guarantee for the indebtedness on March 9, 2015. To meet the actual needs,
the Authorizing Parties authorize your bank or the agents and employees of your bank to directly fill in the maturity date, interest
rate, place of payment, and other items that shall be recorded on this promissory note to effectively fulfill rights associated
with this note. Without the written approval from your bank, the Authorizing Parties shall not revoke or restrict this authorization.


 


Yours sincerely


E. Sun Commercial Bank


 


Authorizing Party: Applied Optoelectronics, Inc., Taiwan Branch
(Seal)


 


 


Responsible Person: Chih-Hsiang Lin


 


 


	Authorizing Party:	(Seal)
	 	 
	 	 
	Authorizing Party:  	(Seal)
	 	 
	 	 
	Authorizing Party: 	(Seal)


 


 


 


 


 


 


The Republic of China, March 9, 2015


 


Credit Account No. 009977 


Approval Code: H145416822  Reviewed by:___ Handled
by:  ___ Checked by: 


 


	L577A 2005.11  	  (In this version, the interest is left blank.)


 




 


 






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