Exhibit 10.2


 


Notice
of Credit Line Approval


 


		I.	Regarding the related transactions between your company and the Bank, the transaction conditions approved by the Bank are as
follows:



 


Amount Unit: One thousand NTD


	Transaction Type	Credit Line	Interest Rate	Usage/Note
	1.    Comprehensive Credit Line	100,000	 	 
	(1) Short term loan - Import 0/A	(100,000)	Negotiable on a case-by-case basis	
        1. Revolving loans. 120-day
        repayment period for each loan drawdown.

        2.
        The current reference interest rate for 120-day period is 2.15%.

        3. A copy of the Invoice
        must be obtained before the loan can be issued; credited in full amount; the remittance restricted only to the suppliers (must
        not be enterprises/individuals).

	(2) Short term loan	(100,000)	Negotiable on a case-by-case basis	
        1. Revolving loans. 90-day
        repayment period for each loan drawdown.

        2.
        The current reference interest rate for 90-day period is 2.15%.

	2.       Financial Derivatives Credit Line - Hedging	USD 1,000	Negotiable with Financial Marketing Department 	
        1. Shall restrict only for
        spot transactions in the foreign exchange market.

        2. The part of the hedging
        amount that exceeds 30% of the MTM loss needs to be replenished with margin or deposit within two business days.

	Total	
        100,000+

        USD 1,000
	 	Maturity Date: January 31, 2021
	
        Additional (special) conditions:

        1.    From September
        1, 2020, the Bank will monthly check and review if the amount of your company’s average deposit during each month (exclude
        the cash deposited in the account and pledge of a banking deposit) is more than or equal to 30% of the average credit amount
        during each month.

        2.    From August
        1, 2020, the Bank will quarterly check and review if the amount of the fund transfer between you and your non-related parties during
        each quarter is more than or equal to USD 2 million; also will monthly check and review if the amount of the fund transfer
        between you and your non-related parties during each month is more than or equal to USD 500,000.

        3.    Please
        provide the Quarterly Consolidated Financial Statements of your parent company (“AOI”) before November 30, 2020 for
        the Bank’s reference.

        4.    Before
        the loan can be issued, a letter of responsibility issued by Prime World International Holdings Ltd. shall be required.

        5.    At the
        end of each quarter (March, May, August and November), the Applied Optoelectronics, Inc.'s shareholding
        in Prime World International Holdings Ltd. shall be checked, which must not be less than 100%.

        6.    In the
        event of drawdown amount of the Comprehensive Credit Line exceeds NTD 50,000,000, the exceeded amount shall be pledged with a certificate
        of NTD/Foreign currency time deposit (as collateral) to the Bank, moreover, if the currency of collateral is different from the
        currency of secured credit facilities, the loan-to-value (LTV) ratio of such loan shall be 90% or the loan needs to be withdrawn
        to a reserve account.

        7.    Other
        matters not mentioned herein shall be governed by the Bank's related policy.



 

		II.	Under the above-mentioned conditions, if there are difficulties obtaining the funds due to market factors, or these conditions
cannot properly reflect the costs of the Bank's acquisition for the related funds, the Bank reserves the rights to make the adjustments
in a timely manner to the amounts of the loan, usage, and the re-determination of the loan interest rates.



 


		III.	We kindly request your company to check with the relevant documents for signing and other matters.



 


 


	To: Prime World International Holdings Ltd.	Customer Confirmation with Signature
	Taiwan Branch	The company/I have fully understood the above content and agreed that it is a part of the agreement signed with the Bank.


 


 


  


 


Date: August 24, 2020


 


 


 


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