Document:

Exhibit 4.26

 

 

	 	300 - 8 King Street East

Toronto, Ontario  M5C 1B5

www.espressocapital.com

+1 (877) 604-7733

 

 

CREDIT FACILITY AGREEMENT

 

April 18, 2019

 

PROPRIETARY AND CONFIDENTIAL

 

POET Technologies Inc., and each entity
listed in the Schedule of Borrowers attached to this Credit Facility Agreement

1107 - 120 Eglinton Avenue East

Toronto, Ontario, M4P 1E2

tm@poet-technologies.com

(416) 368-9411

 

 

Attention:  Thomas Mika, CFO

 

RE:    Credit Facility

 

Espresso Capital Ltd. (“Espresso”)
is pleased to present this Credit Facility Agreement (this “Agreement”) to POET Technologies Inc., and each
entity listed in the Schedule of Borrowers attached to this Credit Facility Agreement (each, a “Borrower” and
collectively, “Borrowers”). The Schedules to this Agreement form part of and are integral to this Agreement.

 

The Deposit of CDN$20,000
previously paid will be applied against the Fees (as set out in Schedule A).

 

If Borrowers agree with the terms and conditions
of this Agreement, then Borrowers shall return a signed copy to Espresso no later than 5:00 pm ET on April 11, 2019. Upon receipt
by Espresso, this Agreement shall be the binding and governing agreement between Espresso and Borrowers about the Credit Facility
(as defined in Schedule A) with effect the date first written above.

 

Yours truly,

 

	Espresso Capital Ltd.	 	Acknowledged and Agreed:

Poet Technologies Inc.	 
	 	 	 	 
	(signed) Enio Lazzer	 	(signed) Thomas Mika	 
	 	 	 	 
	Per: Enio Lazzer, COO	 	Per: Thomas Mika, CFO	 

 

 

     

    

	 	300 - 8 King Street East
Toronto, Ontario  M5C 1B5
www.espressocapital.com
+1 (877) 604-7733

    

 

	Acknowledged and Agreed:	 	Acknowledged and Agreed:	 
	BB Photonics Inc.	 	ODIS Inc.	 
	 	 	 	 
	(signed) Thomas Mika	 	(signed) Thomas Mika	 
	 	 	 	 
	Per: Thomas Mika, CFO	 	Per: Thomas Mika, CFO	 
	 	 	 	 
	Acknowledged and Agreed:	 	 	 
	OPEL Inc.	 	 	 
	 	 	 	 
	(signed) Thomas Mika	 	 	 
	 	 	 	 
	Per: Thomas Mika, CFO	 	 	 

 

 

 

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	 	300 - 8 King Street East
Toronto, Ontario  M5C 1B5
www.espressocapital.com
+1 (877) 604-7733

    

 

 

	Schedule A: Credit Terms at the date first written above
	 
	Establishment of Credit Facility	 	Espresso hereby establishes in favour of Borrowers a revolving credit facility (the “Credit Facility”) to finance the Credit Items identified in the Authorized Credit Table below, with advances made, from time to time (each, an “Advance”) in accordance with this Schedule A, and thereafter as may be mutually agreed, provided no Advance will be made after an Event of Default or in excess of the Credit Limit. In this Agreement the “Principal” means the then current aggregate of all unrepaid Advances, and the “Indebtedness” means the Principal, accrued and unpaid Interest, incurred and unpaid Fees and all other amounts payable by Borrower under this Agreement.
	Credit Limit	 	The lesser of $5,000,000 and the Aggregate Authorized Credit, from time to time. Any amount outstanding in excess of the then current Credit Limit shall be repayable on demand. 
	Aggregate Authorized Credit	 	As set out in the Authorized Credit Table and adjusted, from time to time by Espresso, as a result of a change in the Value of any Credit Item. 
	Interest Rate and Payment	 	Interest of 15% per annum, calculated daily (the “Cash Rate”) shall be paid on the outstanding balance of each Advance, by pre-authorized debit, on the last day of each month, until such Advance is repaid in full. Additional interest of 2.25% per annum, calculated daily (the “Deferred Rate”) shall accrue and be payable on the earlier of (a) the Maturity Date (defined below), or (b) the Sale of DenseLight (defined below), and the Cash Rate and the Deferred Rate shall together comprise an annual interest rate of 17.25%, calculated daily (the “Interest Rate”).  If Borrower has not completed the sale of its subsidiary DenseLight Semiconductors Pte Ltd. (“DenseLight”) to a buyer disclosed to Espresso (“Buyer”) by October 15, 2019, interest of 19.25% per annum, calculated daily shall be retroactively payable from the date of each Advance until paid in full.
	Advance Fee	 	2.0% of each Advance. Each extension of the Maturity Date shall be deemed an Advance of the Principal outstanding and subject to the Advance Fee on the day Espresso confirms its agreement to such extension. The Advance Fee shall be paid on any Advance requested by a Borrower and approved by Espresso even if Borrower does not draw down such Advance.
	Legal Fees	 	Borrowers shall reimburse Espresso for all reasonable costs and expenses incurred by it in connection with the preparation of this Agreement and ancillary documents, the perfection of its rights, and recovery of amounts not paid when due under this Agreement, in an amount not to exceed $25,000 (the “Legal Fees”). Espresso shall provide Borrowers with a copy of the account issued to Espresso by its legal counsel. 
	Initial Advance	 	$2,000,000 is hereby requested by Borrowers for April 12, 2019 and hereby approved by Espresso subject to the conditions in this Agreement applicable to Advances. 
	Advances  Subsequent to the Initial Advance	 	Borrowers, subject to the Credit Limit and conditions in this Agreement applicable to Advances, may request Advances, from time to time after receipt of the Initial Advance no less than 30 days prior to the date upon which Borrowers wish to receive such Advance.

 

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	 	300 - 8 King Street East
Toronto, Ontario  M5C 1B5
www.espressocapital.com
+1 (877) 604-7733

    

 

 

	Financial Covenants	 	Poet Technologies Inc. (“Poet”) shall, while Indebtedness remains outstanding, maintain Net Working Capital of no less than $2,500,000. “Net Working Capital” means current assets (including available and undrawn Aggregate Authorized Credit) minus current liabilities (not including any Advance), determined in accordance with generally accepted accounting principals. 
	 	 	Borrower shall notify Espresso immediately upon the occurrence of each and every event which may reasonably be expected to result in (i) a material change to the terms of the transaction (including any adjustment to the sale consideration) outlined in the Letter of Intent between Poet and Buyer dated February 3, 2019 in respect of the sale of DenseLight to Buyer (the “Sale of DenseLight”); (ii) a delay in the execution of any agreement relating to the Sale of DenseLight past September 15, 2019; or (iii) the termination of discussions between Poet and Buyer in respect of the Sale of DenseLight.
	Debt In Priority to Espresso	 	Not to exceed $180,000. 
	Warrant Terms	 	3,289,500 common shares of Poet on terms provided by Poet and agreed to by Espresso at a strike price equal to CDN $0.35 per share. 
	Minimum Interest Period	 	The Initial Advance may be prepaid, in whole or part, prior to the Maturity Date, provided a minimum of 9 months’ Interest has been, or is paid on such Advance at the Interest Rate from the date of such Advance.  Subsequent Advances shall not be subject to the Minimum Interest Period.
	Maturity Date	 	12/31/2019
	Borrowers’ Bank Accounts 	 	Borrowers’ accounts from which amounts due under this Agreement shall without duplication, be drawn and to which Advances will be deposited. Borrowers shall deliver void cheques for the Borrowers, Bank Accounts prior to the Initial Advance.
	Reporting	 	Borrowers--- shall report, through Espresso’s portal, consolidated financial and operational information including (i) a balance sheet, income statement and cash flow, no later than 30 days after month end, (ii) financial statements for each financial year consisting of an audited balance sheet, income statement and cash flow within 120 days of such financial year end, and (iii) within 5 days of request such additional information as Espresso shall reasonably request. 
	Other Conditions	 	(i) All of Poet’s obligations under this Agreement are subject to TSX Exchange approval.
	 	 	(ii) Initial Advance is conditional upon Poet completing a minimum equity raise (or equivalent funding) equal to $1,400,000 (the “First Closing”).  Each subsequent Advance shall be subject to Poet meeting the conditions set out in the Forecast Advance Table.
	 	 	(iii) Poet shall use commercially reasonable efforts to raise an additional $3,600,000 in equity (or equivalent funding) by May 31, 2019.  If Poet is unable to raise at least $5,000,000 (the “Minimum Raise”) by May 31, 2019 (inclusive of the amount raised during the First Closing), the interest on the Principal shall be paid at the Default Interest Rate until at least $5,000,000 in equity (or equivalent) is raised, at which point interest payable shall revert back to the Interest Rate. The failure to satisfy this condition shall not constitute an Event of Default.

 

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	 	300 - 8 King Street East
Toronto, Ontario  M5C 1B5
www.espressocapital.com
+1 (877) 604-7733

    

 

	 	 	(iv) If: (a) Poet and Buyer fail to reach definitive agreements in respect of the
    Sale of DenseLight on or prior to July 15, 2019, (b) Poet fails to send a circular to shareholders of DenseLight requesting
    approval of the Sale of DenseLight by July 15, 2019, (c) Poet has not received shareholder approval for the Sale of
    DenseLight by September 1, 2019, or (d) Poet or Buyer terminate discussions in respect to the Sale of DenseLight at any time
    then, all receipts by DenseLight that come from an incentive program or scheme established by the Singapore Economic
    Development Board (“EDB”)
    or in any way relate to EDB shall be deposited and held in a restricted cash account with HSBC (the Company’s bank) for the sole benefit of Espresso, such receipts to be immediately applied to the repayment of the Credit Facility. 
	 	 	(v) The Indebtedness shall be immediately due and payable upon Poet completing the Sale of DenseLight.  If Poet or Buyer terminate discussions relating to the Sale of DenseLight, the Indebtedness shall be due and payable no later than 60 days following the termination of such discussions.
	 	 	(vi) Espresso shall have the right, in its sole discretion, to request repayment of all, or a portion of the Indebtedness, upon Poet completing any subsequent capital raises in excess of the Minimum Raise (including proceeds received by Poet upon exercise of warrants).  No repayment so requested by Espresso shall be subject to the Minimum Interest Period.
	 	 	(vii) Borrowers shall deliver to Espresso, the executed Guarantee and Guarantor’s Security Agreement, no later than 20 days following the Initial Advance.

 

 

 

 

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	 	300 - 8 King Street East
Toronto, Ontario  M5C 1B5
www.espressocapital.com
+1 (877) 604-7733

    

 

 

*Authorized Credit Table at the date
first written above. Poet Technologies Inc.’s Fiscal Year End 12-31.

	Credit Item	Period	 	Value	Loan to Value	Authorized Credit*	Advanced to Date Above	Due Date
	Bridge to Asset Sale	2019-09-30	 	$26,000,000	20.0%	$5,200,000	 	Earlier of: (i) 2019-12-31, and (ii) the Sale of DenseLight
	Aggregate Authorized Credit	$5,200,000	 
	
        *Authorized Credit amounts rounded up to nearest
        $5,000

         

 

 

Creditor
Table

	Creditor	Requirement	 
	HSBC Bank of Canada	Borrowers to ensure that indebtedness to this Creditor does not exceed $180,000.
	Royal Bank of Canada	Not less than two days following Initial Advance, Borrowers to discharge  PPSA registration.

 

 

Forecast
Advance Table

	Date	Amount	Notes
	2019-04-12	$2,000,000	Conditional upon Poet completing a minimum equity raise (or equivalent funding) of $1,400,000.
	2019-05-15	$500,000	Conditional upon Poet completing an additional minimum equity raise (or equivalent funding) of $500,000.
	2019-07-01	$1,000,000	Conditional upon (i) definitive agreements being reached in respect of the Sale of DenseLight, for minimum cash proceeds of $26,000,000 payable on closing, and such sale being scheduled to be completed no later than September 30, 2019; (ii) Poet having distributed a circular in respect of the Sale of DenseLight to shareholders for approval; and (iii) Poet having raised $5,000,000 in the aggregate (inclusive of the $1,900,000 outlined in the Forecast Advance Table above) of equity or equivalent funding.
	2019-08-15	$1,500,000	Conditional upon Poet and Buyer each receiving all required approvals in respect of the Sale of DenseLight.

 

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	 	300 - 8 King Street East
Toronto, Ontario  M5C 1B5
www.espressocapital.com
+1 (877) 604-7733

    

 

 

 

Schedule
B: Business Terms

 

Due Date and Maturity Date

 

The Indebtedness shall be due and paid no
later than the Maturity Date.

 

Security Requirements 

 

To secure due payment of the Indebtedness,
each Borrower shall grant a security interest to Espresso in all its undertaking and assets, in Espresso’s standard form
(the “Security Agreement”), subject only to such encumbrances and on
terms set out in the Creditor Table. In additional OPEL Inc. (USA) Inc. and ODIS Inc. (USA) Inc. shall each grant a security interest
specifically in its intellectual property, in Espresso’s standard form (the “IP Security Agreements”),
each subject only to such encumbrances and on terms set out in the Creditor Table.

 

Unlimited Guarantee:

 

As additional security
DenseLight Semiconductors Pte Ltd. (“Guarantor”) shall deliver Espresso’s standard form of guarantee of
Borrowers’ due performance of this Agreement, and Guarantor shall grant a first security interest to Espresso in Guarantor’s
undertaking and assets in Espresso’s standard form (“Guarantor’s Security Agreement”).

 

Promissory Note

 

Borrowers shall deliver Espresso’s standard promissory note in the form of Schedule D
(the “Note”) to evidence, each Advance and its repayment.

 

Conditions of Advance

 

Espresso shall have no obligation to make any Advance unless,

 

		(a)	Espresso is satisfied, acting reasonably, there has been no material adverse change to the results
of its due diligence of a Borrower,

 

		(b)	Espresso has received the executed Note,

 

		(c)	Espresso has received the executed Security Agreements,

 

		(d)	Espresso has received the executed IP Security Agreements,

 

		(e)	Espresso has received for each Advance, its form of requisition and direction executed by an officer
of Borrowers,

 

		(f)	Espresso has entered into the inter-creditor agreements identified in the Creditor Table, on terms
satisfactory to Espresso,

 

		(g)	Espresso has received the executed Canada Revenue Agency (“CRA”) Level 1 Authorization
,

 

		(h)	Espresso has received the void cheques for Borrowers’ Bank Accounts,

 

		(i)	Borrowers have directed Espresso to pay from the Advance, all arrears, if any, due CRA or any other
government agency, and

 

		(j)	Espresso has received all other deliverables reasonably requested by
Espresso.

 

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	 	300 - 8 King Street East
Toronto, Ontario  M5C 1B5
www.espressocapital.com
+1 (877) 604-7733

    

 

The conditions are for Espresso’ sole benefit and may be waived by it in whole or part at any time or times prior to any
Advance.

 

Public Notice

 

Espresso may disclose this financing on its
website and in its promotional material; provided that Espresso may not disclose any confidential information related to Borrowers
that is not in Borrowers' securities filings.

 

Entire Agreement

 

This Agreement, and other documents to be
delivered pursuant to this Agreement, constitute the entire agreement between Borrowers and Espresso about the Credit Facility
and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of Borrowers and Espresso.

 

Jurisdiction

 

This Agreement shall be governed by the laws
of the Province of Ontario, and the laws of Canada applicable in Ontario.

 

Communications 

 

To Espresso:

	Address as above, 	 	 

 

To Each Borrower:

As above

 

 

 

 

 

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	 	300 - 8 King Street East
Toronto, Ontario  M5C 1B5
www.espressocapital.com
+1 (877) 604-7733

    

 

 

Schedule
C: Standard Terms

 

Evidence of Indebtedness

 

Espresso shall maintain and reconcile records
of Advances, accruals and receipts of Interest, repayments of Advances and all other amounts due under this Agreement. Espresso’s
records shall constitute prima facie evidence of the Indebtedness, absent manifest error.

 

Default Interest Rate

 

Interest of 22.0% per annum, calculated daily
and compounded monthly, both before and after demand and judgment (the “Default Rate”) shall be paid on overdue
Interest until paid in full, and Interest at the Default Rate shall be paid on the Principal from the day following Borrowers’
failure to pay or remit any amount when required to be paid or remitted under this Agreement, until cured.

 

Fees

 

Borrowers hereby authorize Espresso to, deduct
the Advance Fee and the Legal Fees (collectively, the “Fees”) as they become due from the Advance next payable,
or draw them, without duplication, from Borrowers’ Bank Accounts. Interest shall accrue on unpaid Fees from the date such
Fees were incurred at the Default Rate.

 

Interest Not to Be Excessive

 

If the aggregate of Interest and charges,
paid or payable in respect of the Advances under this Agreement (the “Charges”) would exceed the annual effective
rate permitted by applicable law, then the Charges shall be reduced by the minimum amount necessary so they do not exceed the permitted
rate, and any amount paid in excess will be repaid forthwith to Borrowers. If a dispute over the Charges arises, a Fellow of the
Canadian Institute of Actuaries appointed by Espresso shall determine the effective rate, the reduction and the repayment, which
determination shall be conclusive and binding on Espresso and Borrower, absent manifest error.

 

Representations and Warranties

 

Each Borrower hereby represents and warrants
as follows:

 

	 	(a)	It is a corporation duly constituted and validly subsisting.
	 	(b)	It has taken all necessary action, corporate or otherwise, to authorize the execution, delivery and performance of this Agreement, the Security Agreement and all other documents delivered by it.
	 	(c)	The execution, delivery and performance of this Agreement, the Security Agreement and all other documents delivered by it to Espresso do not conflict with, nor will result in a violation of its constating documents or by-laws, or any law or regulation applicable, in any way, to it, its business or its property.
	 	(d)	It is not in violation of any, and has filed, reported, deducted and remitted as required under all, laws, rules and regulations relating in any way to it, its business and its property, except for any such violation or any such failure which would not result in an adverse effect on it, its business or property.
	 	(e)	All written information (other than financial projections) provided to Espresso by it was, at the time provided to Espresso, complete and accurate in all material respects and it is not aware of any fact it had not disclosed that would have been necessary in order to make the statements contained in such information not misleading. All financial projections provided by it to Espresso were prepared in good faith on assumptions it believed, acting in good faith, to have been reasonable at the time.

 

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	 	300 - 8 King Street East
Toronto, Ontario  M5C 1B5
www.espressocapital.com
+1 (877) 604-7733

    

 

 

	 	(f)	 There are no actions, suits, inquiries, claims or proceedings pending, or to its knowledge threatened, which would be reasonably expected to have a material adverse effect on its business, operations, property or prospects, or adversely affect, in any material respect, its ability to observe and perform its obligations under this Agreement, the Security Agreement or other documents it has delivered to Espresso. 

 

Covenants

 

Each Borrower agrees to, and shall during
the currency of this Agreement:

	 	(a)	pay, without duplication, all amounts, as and when due under this Agreement, and remit taxes and all other deductions and payments required to be paid to CRA or Provincial authorities as they become due,
	 	(b)	notify Espresso immediately upon becoming aware of an Event of Default,
	 	(c)	strictly comply with all Financial Covenants,
	 	(d)	strictly comply with all laws, rules and regulations relating in any way to it, its business or its property, except where failure to do so would not have a material effect,
	 	(e)	maintain a policy or policies of insurance on its assets and undertaking for their full replacement value, and upon Espresso’s request, assign such insurance to Espresso, provided if a Borrower fails to maintain such insurance, Espresso may, but shall not be obliged to, maintain or effect such insurance and add the cost to the Principal,
	 	(f)	not, without Espresso’s prior written consent,
	 	 	(i) 	merge or amalgamate with any person,
	 	 	(ii) 	 redeem, repurchase, or pay dividends on, any of its shares or securities,
	 	 	(iii)	incur indebtedness to anyone other than Espresso, its primary lender under a line of credit (existing at the date first written above) or its trade creditors, in the normal course of its business and consistent with past practice,
	 	 	(iv)	except for salaries, bonuses, commissions and benefits payable to employees and consultants in the normal course and consistent with past practice,
	 	 	 	a)	make any distribution, loan, advance,
	 	 	 	b)	provide any financial assistance to,
	 	 	 	c)	guarantee the obligations of,
	 	 	 	d)	make any investment in, or
	 	 	 	e)	grant any security in favour of,
	 	 	 	any of its affiliates, shareholders, directors, officers, employees, consultants or any non-arm’s length person,
	 	 	(v)	enter into any arrangement, by which it may pay a share of its profit or revenue to any person,
	 	 	(vi)	sell any of its receivables,

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	 	300 - 8 King Street East
Toronto, Ontario  M5C 1B5
www.espressocapital.com
+1 (877) 604-7733

    

 

	 	 	(vii)	dispose of or transfer any of its assets, other than in the normal course of its business and consistent with past practice,
	 	 	(vii)	none of the above, however, shall prohibit it from (a) entering into capital leases secured only by the equipment or assets subject of such leases, (b) issuing share capital or debt, convertible into share capital from its treasury, provided a change of Control (as defined below) will not be effected, and such debt by its terms, shall not prior to the Maturity Date (x) be repayable, except for interest at a reasonable commercial rate, nor (y) permit acceleration of the payment of the principal amount for any reason, or (c) issuing convertible debentures pursuant to the convertible debenture indenture to be dated on or about April 12, 2019, and
	 	(g)	not, without Espresso’s prior written consent change, in any material respect, the role or responsibilities within Borrower’s business, of Dr. Suresh Venkatesan (CEO) and Thomas Mika (CFO), and
	 	(h)	permit Espresso’s continued viewing access to Poet’s accounts with the relevant taxing authorities, and
	 	(i)	Borrowers shall deliver, prior to Initial Advance, a binder confirming Espresso as first loss payee to Borrowers’ insurance policies.

 

Events of Default

 

Upon the occurrence of any of the following
(each an “Event of Default”) the Indebtedness shall, at Espresso’s the option, become immediately due
and payable:

 

	 	(a)	A Borrower fails to pay any amount owing by it to Espresso when due and such failure has not been cured within three business days of delivery of notice of such failure.
	 	(b)	A Borrower fails to comply with or perform any provision of: (i) this Agreement, other than a failure to pay an amount when due, (ii) any other agreement between a Borrower and Espresso, or (iii) any undertaking by a Borrower to Espresso, and such failure has not been cured within ten days of delivery of notice specifying such failure and the required cure.
	 	(c)	A Borrower is in continuing default of any material loan agreement or arrangement with any person other than Espresso (including an agreement with a Creditor identified in the Creditor Table above) and such default has resulted or may result in an acceleration or demand for immediate repayment of the debt associated with such loan agreement or arrangement.
	 	(d)	Espresso reasonably determines any representation or warranty of a Borrower in this Agreement, or any information (other than financial projections) in a certificate, financial statement, report, notice or instrument furnished by a Borrower to Espresso is or was false, or misleading in some material respect.
	 	(e)	In Espresso’s opinion, acting reasonably, there has been a material adverse change in the financial condition or operation of a Borrower or Guarantor.
	 	(f)	A receiver, receiver and manager, or trustee is appointed over any property of a Borrower or Guarantor, or a Borrower or Guarantor fails to pay or admits its inability to pay its debts as they become due, or ceases or threatens to cease to carry on its business, or is adjudged or declared bankrupt or insolvent, or makes an assignment for the benefit of its creditors, petitions, or applies for the appointment of a receiver, receiver and manager, or trustee for it or any of its property, or makes a proposal or similar application under the Bankruptcy and Insolvency Act (Canada), the Companies Creditors’ Arrangement Act (Canada) or similar legislation, or commences proceedings relating to it under any reorganization, arrangement, readjustment of debt, dissolution or liquidation law, or by any act indicates its consent to, approval of, or acquiescence in, any such proceeding, or any of its property becomes subject to distress, execution or seizure.

 

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Toronto, Ontario  M5C 1B5
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	 	(g)	Control of a Borrower changes after the date of this Agreement. “Control” means (i) the right to exercise at least 51% of outstanding voting securities of a Borrower or Guarantor, or (ii) the direct or indirect right to direct the management and policies of a Borrower or whether through ownership of voting securities, by agreement, or otherwise.
	 	(h)	The Guarantor, revokes, or attempts to revoke, repudiates or disputes its liability under the Guarantee.
	 	(i)	Any asset material to a Borrower’s business is sequestered, attached or seized by a creditor of a Borrower.

 

Costs

 

In connection with any Event of Default, Espresso
may, in addition to the Legal Fees and all costs which it is entitled under the Security Agreement, charge Borrower $150 per hour
for each of its or its affiliates own personnel employed or engaged to monitor a Borrower’s affairs, negotiate with CRA,
or otherwise assist to collect amounts due to Espresso, all of which are payable on demand.

 

Materiality

 

In this Agreement ‘material’ means
of such nature as Espresso would reasonably consider significant.

 

Authorization to Debit Borrower’s Bank Account

 

Borrowers hereby authorize Espresso to debit
and initiate a wire, without duplication, from Borrowers’ Bank Accounts to Espresso, from time to time, of all amounts as
and when due Espresso under this Agreement, and this authorization shall continue until Espresso has been paid, in full, all amounts
due under this Agreement, but no more than such amounts. Revocation, cancellation or termination of this authorization shall not
terminate this Agreement nor Borrower’s obligations under this Agreement. Borrowers agree the information in this Agreement
necessary to complete such debit and wire may be disclosed to Borrowers’ banks as required to complete such debit or wire.

 

Borrowers Derive Mutual Benefit from and
Are Joint and Several Obligors under This Agreement

 

All obligations, representations, warranties,
covenants, waivers and indemnities in this Agreement shall be joint and several. Espresso shall have the right to deal with any
officer of any Borrower about all matters concerning the rights and obligations of Espresso and Borrowers under this Agreement,
and pursuant to applicable law, about the transactions contemplated by this Agreement. Each Borrower hereby appoints each other
Borrower as its true and lawful attorney-in-fact, with full right and power, for purposes of exercising all rights of such Borrower
under this Agreement and under applicable law about the transactions contemplated by this Agreement. The representations and undertakings
by each Borrower in this paragraph are a material inducement to Espresso to enter into this Agreement and to complete the transactions
contemplated by this Agreement. Each Borrower represents, for purposes of this agreement, it is operated as part of one consolidated
business entity and is directly dependent upon each other Borrower for and in connection with their respective business activities
and combined financial resources. Each Borrower hereby agrees it will receive a direct and material economic and financial benefit
from the Advances made under this Agreement and, accordingly, the related incurrence of obligations under this Agreement is in
the best interests of each Borrower.

 

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	 	300 - 8 King Street East
Toronto, Ontario  M5C 1B5
www.espressocapital.com
+1 (877) 604-7733

    

 

 

Notice of Principal Repayment

 

Notwithstanding any other provision of this
Agreement, Borrower may not repay any amount of Principal prior to the Maturity Date, or a Due Date, if any, except by giving Espresso
sixty days prior notice of the amount and date of such repayment or paying Espresso a fee equal to sixty days Interest on the amount
to be repaid, in lieu of such notice.

 

Notices

 

Any communication which is required or permitted
between a Borrower and Espresso relating to this Agreement or the Security Agreement shall be in writing and shall be delivered
either personally or electronically. Any such communication shall be sent to the intended recipient at the municipal address or
email address contained in this Agreement, or such other municipal address or email address as a Borrower or Espresso may from
time to time notify the other.

Amendment and Waiver

 

Except as may otherwise be provided in this
Agreement, no supplement, modification or waiver of this Agreement shall be binding unless executed in writing by the person to
be so bound. No waiver of any of the provisions of this Agreement, nor the acceptance of any payment under this Agreement shall
constitute a waiver of any other provision nor shall such waiver constitute a continuing waiver unless otherwise expressly provided
in such waiver.

Currency

 

The word “dollar” and sign “$”
refer to currency of United States of America, unless otherwise provided.

Severability

 

Any provision of this Agreement which is prohibited
or unenforceable in any jurisdiction shall not invalidate the remaining provisions and such invalid or unenforceable provision
shall be deemed severed in such jurisdiction.

Assignment and Enurement

 

Neither this Agreement nor any right or obligation
under it may be assigned by a Borrower without Espresso’s prior written consent.

Further Assurances

 

Borrowers shall with reasonable diligence,
do all things and provide all reasonable assurances as may be required to complete and give effect to the transactions contemplated
by this Agreement.

Person

 

In this Agreement “person”
is to be broadly interpreted and includes any individual, partnership, limited partnership, joint venture, syndicate, sole proprietorship
or corporation with or without share capital, unincorporated association, trust, executor or other legal personal representative,
regulatory body or agency, government or governmental agency, authority or entity however designated or constituted.

 

13

     

    

	 	300 - 8 King Street East
Toronto, Ontario  M5C 1B5
www.espressocapital.com
+1 (877) 604-7733

    

 

Counterparts

 

This Agreement may be executed in counterparts
and delivered electronically, each of which when so executed and delivered shall be an original, and such counterparts shall together
constitute one and the same instrument.

Confidentiality

 

Unless previously disclosed by Espresso, or
disclosure is required by a governmental authority (including securities regulators and public exchanges) Borrowers shall maintain
the terms and conditions of this Agreement as confidential using procedures no less stringent than those used for its own confidential
information, and disclose such terms and conditions only to such of its personnel and consultants who have a need to know.

 

 

 

 

 

 

 

14

     

    

	 	300 - 8 King Street East
Toronto, Ontario  M5C 1B5
www.espressocapital.com
+1 (877) 604-7733

    

 

 

Schedule
D: Form of Promissory Grid Note (“Note”)

PROMISSORY GRID NOTE

[sample]

 

FOR VALUE RECEIVED, the undersigned
(“Borrowers”): (i) agree each capitalized word and term in this Promissory Grid Note (this “Note”)
not otherwise defined in this Note shall have the meaning ascribed to it in the Credit Facility Agreement between Borrower and
ESPRESSO CAPITAL LTD. (“Espresso”) dated [sample] as amended, modified, restated or replaced from time
to time (the “Credit Facility Agreement”), and (ii) jointly and severally promise to pay to or to the order
of Espresso at 300-8 King Street East, Toronto, Ontario, M5C 1B5 (or at such other address as Espresso shall notify Borrower),
the amount outstanding (the “Principal Amount”) set forth on the grid attached to this Note (as amended, supplemented,
restated or otherwise modified from time to time in accordance with the terms hereof, the “Grid”) together with
Interest on the Principal Amount no later than the Maturity Date, provided each Advance and Interest on such Advance shall be paid
in accordance with the terms and conditions of the Credit Facility Agreement.

 

Interest at the Interest Rate shall be
paid on each Advance from the date of each such Advance, by pre-authorized payment, on the last day of each month. Interest on
overdue Interest shall accrue and be calculated daily, both before and after demand and judgment at the Default Interest Rate.

 

All Advances and any partial prepayments
will be recorded on the Grid by Espresso. Each Advance may be prepaid, in whole or part, prior to the Maturity Date and subject
to minimum Interest payment in accordance with the Credit Facility Agreement. All amounts due under this Note shall immediately
become due and payable upon the occurrence of an Event of Default.

 

Borrowers waive presentment for payment,
notice of non-payment, notice of dishonour and notice of protest of this Note and waives any defences based upon indulgences which
may be granted by Espresso to Borrowers.

 

This Note shall be governed by the laws of
the Province of Ontario, and the laws of Canada applicable in Ontario. This Note shall enure to the benefit of Espresso, its successors
and assigns, and be binding upon Borrowers, their successors and assigns.

 

This Note has been executed at the date
first written above and may be delivered by facsimile or other means of electronic communication and when so delivered shall be
deemed an original.

 

Schedule D-1: Grid

 

	Date	Advanced	Repaid	Outstanding	Notation
	Sample	Sample	Sample	Sample	Sample

 

 

 

15

     

    

	 	300 - 8 King Street East
Toronto, Ontario  M5C 1B5
www.espressocapital.com
+1 (877) 604-7733

    

 

Schedule
of Borrowers

 

	Borrower	Address
	BB Photonics Inc.	780 Montague Express Way #107, San Jose, CA, 95131
	OPEL Inc. 	780 Montague Express Way #107, San Jose, CA, 95131
	ODIS Inc. 	780 Montague Express Way #107, San Jose, CA, 95131

 

 

 

 

 

 

 

 

 

 

 

16Exhibit 4.55

 

Supplementary Agreement for the Memorandum
Regarding Continued Implementation of the Agreement on Equity Transfer of AirMedia Group Co., Ltd. and Its Supplementary Agreement

 

The Supplementary Agreement was signed
by the following parties in Beijing, China on November 2018.

 

1. AirMedia Group Inc. (hereinafter referred
to as “AirMedia”), a company duly incorporated and validly existing under the laws of Cayman and listed at NASDAQ,
the United States, with the Nasdaq code of AMCN.

 

2. Hangmei United Media Technology (Beijing)
Co., Ltd. (hereinafter referred to as “Hangmei Technology” and now renamed as Yuehang Chuangyi Media Technology (Beijing)
Co., Ltd.), a limited liability company duly incorporated and validly existing under the laws of China with the unified social
credit code of 911100007795059762, address of Room 3088, Building 1, Yard 2, Hengfu Middle Street, Science City, Fengtai District,
Beijing, and legal representative of Herman Man Guo.

 

3. Beijing Hangmei Shengshi Advertising
Co., Ltd. (hereinafter referred to as “Hangmei Shengshi” and now renamed as Beijing Linghang Shengshi Advertising Co.,
Ltd.), a limited liability company duly incorporated and validly existing under the laws of China with the unified social credit
code of 91110102801743998D, address of Room 1-0363, 1F, Building 22, Xuanwumen East Street, Xuanwu District, Beijing, and legal
representative of Herman Man Guo.

 

4. Herman Man Guo, a Chinese citizen with
the ID number of 11010219630504 1171 and address of Room 1-3, 5F, Door 2, Building 3, Beipingli, Capital International Airport
Area, Chaoyang District, Beijing, post code: 100621.

 

5. Qing Xu, a Chinese citizen with the
ID number of 11010119610220531 and address of Room 204, Building 5, Xibahe Xili, Chaoyang District, Beijing.

 

6. Beijing Longde Wenchuang Investment
Fund Management Co., Ltd. (hereinafter referred to as “Longde Wenchuang”), a limited liability company duly incorporated
and validly existing under the laws of China with the unified social credit code of 91110101098266260N, address of Room 11116,
Building 37, No. 11 Hepingli East Street, Dongcheng District, Beijing, and legal representative of Xing Hongwang.

 

7. Beijing Cultural Center Development
Fund (limited partnership) (hereinafter referred to as “Cultural Center Fund”), a limited partnership company duly
incorporated and validly existing under the laws of China with the unified social credit code of 91110000355272910P and registered
address of Room 801-19, Building 52, No. 2 Jingyuan North Street, Beijing Economic-Technological Development Area, Beijing, and
executive partner of Beijing Cultural Center Development Fund Management Co., Ltd.

 

8. AirMedia Group Co., Ltd. (hereinafter
referred to as “AirMedia Group”), a limited liability company duly incorporated and validly existing under the laws
of China with the unified social credit code of 91110000783246583E, address of Room 1901, Yanxiang Hotel, 2A Jiangtai Road, Chaoyang
District, Beijing, and legal representative of Ji Lianqiang.

     

     

    

 

WHEREAS, the above-mentioned parties signed
the Memorandum Regarding Continued Implementation of the Agreement on Equity Transfer of AirMedia Group Co., Ltd. and Its
Supplementary Agreement (hereinafter referred to as the “Memorandum”) in Beijing, China, on March 28, 2018.
After friendly negotiation, the parties have supplemented the following provisions for the specific implementation of the Memorandum:

 

1. It is mutually agreed that the deadline
to settlements stipulated in Article 1 of the memorandum effected on March 28, 2018, which says “May 30, 2018” is to
be extended to December 31, 2018.

 

2. Clause 3 under Article 1 of the Memorandum
stating that “Hangmei Shengshi, Herman Man Guo and Qing Xu shall make up the remaining balance of RMB56.7139 million after
receiving the first equity transfer payment for the sale of 20.32% of the equity no later than May 30, 2018, and AirMedia, Hangmei
Technology, Herman Man Guo and Qing Xu shall bear unlimited joint liability” is modified into “Hangmei Shengshi, Herman
Man Guo and Qing Xu shall make up the remaining balance of RMB56.7139 million after receiving the first equity transfer payment
for the sale of 20.32% of the equity no later than December 31, 2018, and AirMedia, Hangmei Technology, Herman Man Guo and Qing
Xu shall bear unlimited joint liability”.

 

3. Except for the above clause, other matters
stipulated in the Memorandum shall still be implemented in accordance with the original clauses.

 

4. This Supplemental Agreement is made
in eight copies, with each party holding one copy. It has legal effect together with the Memorandum. It shall take effect after
it is signed and sealed by each party.

 

(There is no text below, but
signature signed.)

     

     

    

 

(This page is only for the signature of
the Supplementary Agreement for the Memorandum Regarding Continued Implementation of the Agreement on Equity Transfer of
AirMedia Group Co., Ltd. and Its Supplementary Agreement)

 

	AirMedia Group Inc.  	 	/seal/ AirMedia Group Inc.

 

	Yuehang Chuangyi Media Technology (Beijing)
Co., Ltd.	 	/seal/ Yuehang Chuangyi Media Technology
    (Beijing) Co., Ltd.
		 	 

 

	Legal representative or authorized representative
(signature): 	 	/s/ Herman Man Guo
	 	 	 

 

	Beijing Linghang Shengshi Advertising Co.,
Ltd. (seal): 	 	/seal/Beijing Linghang Shengshi Advertising
Co., Ltd.
		 	 

 

	Legal representative or authorized representative
(signature): 	 	/s/ Herman Man Guo
	 	 	 

 

	Herman Man Guo (signature): 	 	/s/ Herman Man Guo
	 	 	 

 

	Qing Xu (signature): 	 	/s/ Qing Xu
	 	 	 

 

 

     

     

    

 

(This page is only for the signature of
the Supplementary Agreement for the Memorandum Regarding Continued Implementation of the Agreement on Equity Transfer of
AirMedia Group Co., Ltd. and Its Supplementary Agreement)

 

	Beijing Longde Wenchuang Investment Fund
Management Co., Ltd. (seal):	 	/seal/Beijing Longde Wenchuang Investment Fund Management
Co., Ltd.
	 	 	 

 

 

	Legal representative or authorized representative (signature): 	 	/s/ authorized representative
	 	 	 

 

	Beijing Cultural Center Development Fund
(Limited Partnership) (seal):		/seal/ Beijing Cultural Center Development
Fund (Limited Partnership)
			 

 

	Legal representative or authorized representative
(signature): 	 	/s/ authorized representative
	 	 	 

 

	AirMedia Group Co., Ltd. (seal)  		/seal/ AirMedia Group Co., Ltd.
	 	 	 

 

	Legal representative or authorized representative
(signature):  	 	/s/ authorized representative

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