Document:

AMENDMENT
NO. 1

TO

STOCK
PURCHASE AGREEMENT

 

This
Amendment No. 1 to Stock Purchase Agreement (this “Amendment”), dated as of April 20, 2017 (the “Amendment
Effective Date”), is entered into by and among (i) FTE Networks, Inc., a Nevada corporation (the “Buyer”);
(ii) Benchmark Builders, Inc., a New York corporation (the “Company”); and (iii) Brian McMahon (“McMahon”),
Fred Sacramone (“Sacramone”), William Reynolds, Irena Spyt, Blaine Henn and Richard Prevost (the “Sellers”
and collectively with the Company and the Buyer, the “Parties” and each, a “Party”).

 

RECITALS

 

WHEREAS,
the Parties entered into that certain Stock Purchase Agreement, dated as of March 9, 2017 (the “Purchase Agreement”),
pursuant to which the Buyer shall acquire all (100%) of the issued and outstanding capital stock of the Company; and

 

WHEREAS,
the Parties now desire to amend the Purchase Agreement, as provided in this Amendment, to address certain changes in the composition
of the Purchase Price set forth in the Purchase Agreement.

 

NOW
THEREFORE, in consideration of the mutual promises contained in this Amendment and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, each of the Parties, intending to be legally bound, hereby agrees
as follows:

 

AGREEMENT

 

1.
Capitalized Terms. Except as expressly provided herein, all capitalized terms used herein shall have the meanings assigned
to them in the Purchase Agreement.

 

2.
Amendments to Section 2.2(a). The Parties desire to remove the Estimated Working Capital adjustment to the Cash Consideration
paid at the Closing. As such, Section 2.2(a) of the Purchase Agreement is hereby amended and shall read in its entirety
as follows:

 

(a)
pay by wire transfer of immediately available funds to the accounts designated in writing by the Sellers, in the individual amounts
set forth on Schedule ‎2.2(a), an aggregate amount equal to the Cash Consideration.

 

3.
Amendments to Section 10.22 and Schedule 2.2(a). The Parties desire to change the portion of the Purchase Price that shall
be paid by the Buyer in cash to decrease the amount of Cash Consideration from $55,000,000 to $17,250,000. As such, Section
10.22 of the Purchase Agreement is hereby amended and shall read in its entirety as follows:

 

10.22
Cash Consideration. The Term “Cash Consideration” shall mean Seventeen Million Two Hundred Fifty Thousand
Dollars ($17,250,000).

 

    	 	 	 

    	 	 	 

    

 

Further,
in connection with the foregoing, Schedule 2.2(a) of the Purchase Agreement is hereby amended and shall read in its entirety
as follows:

 

Cash
Consideration

 

	Seller	 	Amount	 
	Brian McMahon	 	$	0	 
	Fred Sacramone	 	$	0	 
	William Reynolds	 	$	9,750,000	 
	Irena Spyt	 	$	2,500,000	 
	Blaine Henn	 	$	2,500,000	 
	Richard Prevost	 	$	2,500,000	 
	TOTAL	 	$	17,250,000	 

 

4.
Amendments to Section 2.2(b) and Schedule 2.2(b). The Parties desire to change the amount of shares of Buyer Common Stock
that will issued to McMahon and Sacramone at the Closing which shall constitute the Buyer Shares from 17,825,350 shares to 26,738,445
shares. As such, Section 2.2(b) of the Purchase Agreement is hereby amended and shall read in its entirety as follows:

 

(b)
issue and deliver to McMahon and Sacramone, in the individual amounts set forth on Schedule 2.2(b) an aggregate of 26,738,445
shares of the Buyer’s common stock, par value $0.001 per share ( “Buyer Common Stock”), which may be
represented by one or more certificates or may be uncertificated, at the Buyer’s election (such shares to be issued, the
“Buyer Shares”); and

 

Further,
in connection with the foregoing, Schedule 2.2(b) of the Purchase Agreement that sets forth the amount of Buyer Shares
delivered to the Sellers is hereby amended to read in its entirety as follows:

 

Shares
to be Issued

 

	Seller	 	Number of Shares	 
	Brian McMahon	 	 	17,825,630	 
	Fred Sacramone	 	 	8,912,815	 
	William Reynolds	 	 	0	 
	Irena Spyt	 	 	0	 
	Blaine Henn	 	 	0	 
	Richard Prevost	 	 	0	 
	TOTAL	 	 	26,738,445	 

 

5.
Amendments to Section 2.2(c) and Schedule 2.2(c). The Parties desire to change the portion of the Purchase Price that shall
be satisfied by the Buyer’s issuance of promissory notes to (a) increase the face value of the promissory notes issued and
(b) to issued two different forms of promissory notes in connection therewith. As such, Section 2.2(c) of the Purchase
Agreement is hereby amended and shall read in its entirety as follows:

 

(c)
(i) issue to McMahon and Sacramone promissory notes substantially in the form attached hereto as Exhibit A in the aggregate
principal amount of Twelve Million Five Hundred Thousand Dollars ($12,500,000) (each, a “Series A Note”), and
(ii) issue to McMahon and Sacramone promissory notes substantially in the form attached hereto as Exhibit J in the aggregate
principal amount of Thirty Million Dollars ($30,000,000) (each, a “Series B Note”, and collectively with the
Series A Notes the “Notes” and, all Notes collectively with the Buyer Shares, the “Buyer Securities”),
in each case in such individual amounts set forth on Schedule 2.2(c).

 

    	 	2	 

    	 	 	 

    

 

Further,
in connection with the foregoing, Schedule 2.2(c) of the Purchase Agreement that sets forth the Notes to be delivered to
the Sellers is hereby amended to read in its entirety as follows:

 

Notes
to be Issued

 

Series
A Notes

 

	Seller	 	Principal Amount	 
	Brian McMahon	 	$	8,333,333.33	 
	Fred Sacramone	 	$	4,166,666.67	 
	William Reynolds	 	$	0.00	 
	Irena Spyt	 	$	0.00	 
	Blaine Henn	 	$	0.00	 
	Richard Prevost	 	$	0.00	 
	TOTAL	 	$	12,500,000.00	 

 

Series
B Notes

 

	Seller	 	Principal Amount	 
	Brian McMahon	 	$	20,000,000	 
	Fred Sacramone	 	$	10,000,000	 
	William Reynolds	 	$	0	 
	Irena Spyt	 	$	0	 
	Blaine Henn	 	$	0	 
	Richard Prevost	 	$	0	 
	TOTAL	 	$	30,000,000	 

 

6.
Amendments to Section 2.2(d). The Parties desire to change the manner by which the Cash Consideration is adjusted following
the determination of the Final Working Capital to provide that such adjustment shall be based on the difference between the Final
Working Capital and $2,000,000. As such, Section 2.2(d) of the Purchase Agreement is hereby amended and shall read in its
entirety as follows:

 

(d)
(i) If the Working Capital set forth on the Final Closing Statement (the “Final Working Capital”) is less than
$2,000,000, then the Cash Consideration will be adjusted downward by the amount of the difference between $2,000,000 and the Final
Working Capital and the Sellers will promptly pay to the Company an amount equal to such difference pro rata in accordance with
the percentages set forth on Schedule ‎2.3(d), an aggregate amount equal to such difference.

 

(ii)
If the Final Working Capital is greater than $2,000,000, then the Cash Consideration will be adjusted upward by the difference
between the Final Working Capital and $2,000,000 and the Buyer will promptly pay to the Sellers, pro rata in accordance with the
percentages set forth on Schedule ‎2.3(d), an aggregate amount equal to such difference.

 

    	 	3	 

    	 	 	 

    

 

7.
Amendments to Article 6. In connection with the amendments being made to the Purchase Agreement pursuant to this Amendment,
the Parties desire to amend Section 6.1 of to the Purchase Agreement to add an additional condition to the obligations
of the Sellers to carry out the transactions contemplated by the Purchase Agreement. As such, Section 6.1 of the Purchase
Agreement is hereby amended by the insertion of an additional subparagraph (u) at the end of Section 6.1:

 

(u)
The Buyer shall have borrowed an aggregate of $7.5 million from McMahon and Sacramone and delivered to McMahon and Sacramone promissory
notes in the form of Exhibit K-1 hereto (the “Series C Note”) in the aggregate principal amount of $7.5 million.

 

8.
In connection with the amendments being made to the Purchase Agreement pursuant to this Amendment, the Parties desire to amend
Section 6.2 to the Purchase Agreement to add an additional condition to the obligations of the Buyer to carry out the transactions
contemplated by the Purchase Agreement. As such, Section 6.2 of the Purchase Agreement is hereby amended to by the insertion
of the additional subparagraph (z) at the end of Section 6.2:

 

(z)
If requested by Buyer at least five (5) Business Days prior to the Closing Date, McMahon and Sacramone shall have made a loan
to the Buyer in the aggregate amount of $7.5 million on the terms set forth in the Series C Note.

 

9.
Amendment to Section 7.5(c). In connection with the additional Notes being issued under the Purchase Agreement pursuant
to this Amendment, the Parties desire to clarify which Note is referenced in such Section 7.5(c). As such, Section 7.5(c)
of the Purchase Agreement is hereby amended and shall read in its entirety as follows:

 

(c)
If, at any time prior to the maturity date of the Series B Note(s), Sacramone is unwilling or unable to serve as a nominee or
director of the Buyer, as the case may be, the Sellers and the nominating committee of the Buyer’s Board of Directors will
agree on a replacement nominee or director, as the case may be, that is selected by the Sellers and reasonably acceptable to the
nominating committee of the Buyer’s Board of Directors.

 

10.
Amendment to Section 7.6. In connection with the additional Notes being issued under the Purchase Agreement pursuant to
this Amendment, the Parties desire to amend and restate the last sentence in Section 7.6 to clarify which Note is referenced
in such sentence. As such, the last sentence in Section 7.6 of the Purchase Agreement is hereby amended and shall read
in its entirety as follows:

 

The
rights granted to McMahon under this Section 7.6 shall be effective no later than ten (10) Business Days following the
Closing Date and shall continue until the payment in full of his Series B Note.

 

11.
Amendment to Article 10. In connection with amendments being made to the Purchase Agreement pursuant to this Amendment,
the Parties desire to amend Article 10 of the Purchase Agreement to amend the definition of the term “Note”
and to add certain defined terms. As such, Article 10 of the Purchase Agreement is hereby amended by amending Section
10.80 of the Purchase Agreement to read in its entirely as follows:

 

10.80
“Notes.” The term “Notes” shall have the meaning set forth in Section 2.2(c).

 

    	 	4	 

    	 	 	 

    

 

Article
10 of the Purchase Agreement is also hereby amended by the insertion of the following defined terms at the end of Article
10:

 

10.120
Series A Note. The term “Series A Note” shall have the meaning set forth in Section 2.2(c). 

 

10.121
Series B Note. The term “Series B Note” shall have the meaning set forth in Section 2.2(c).

 

10.122
Series C Note. The term “Series C Note” shall have the meaning set forth in Section 6.1(u).

 

12.
Amendments to List of Exhibits and attended Exhibits. In connection with amendments being made to the Purchase Agreement
pursuant to this Amendment, the Parties desire to amend the “List of Exhibits” set forth on page vii of the Purchase
Agreement to add certain new Exhibits regarding the Notes. As such, the “Exhibit List” is hereby amended to
read in its entirety:

 

LIST
OF EXHIBITS

 

	Exhibit A – Form of Series A Note	 	 	A-1
	Exhibit B – Form of Spyt Employment Agreement	 	 	B-1
	Exhibit C – Form of McMahon Employment Agreement	 	 	C-1
	Exhibit D – Form of Sacramone Employment Agreement	 	 	D-1
	Exhibit E – Form of Reynolds Employment Agreement	 	 	E-1
	Exhibit F – Form of Henn Employment Agreement	 	 	F-1
	Exhibit G – Form of Prevost Employment Agreement	 	 	G-1
	Exhibit H – Form of Registration Rights Agreement	 	 	H-1
	Exhibit I – Form of Lease Certifications	 	 	I-1
	Exhibit J – Form of Series B Note	 	 	J-1
	Exhibit K – Form of Series C Note	 	 	K-1

 

Further,
in connection with the foregoing, the Exhibits attached to the Purchase Agreement are hereby amended to (i) replace the
form of note attached to Exhibit A with the form of Series A Note attached to this Amendment as Attachment 1, (ii)
add the form of note attached to this Amendment as Attachment 2 as Exhibit J of the Purchase Agreement, and (iii)
add the form of note attached to this Amendment as Attachment 3 as Exhibit K of the Purchase Agreement:

 

13.
Conforming Changes. All provisions in the Purchase Agreement and any amendments, attachments, schedules or exhibits thereto
in conflict with this Amendment shall be and hereby are changed to conform to this Amendment.

 

14.
Full Force and Effect. The remainder of the Purchase Agreement is not amended by this Amendment and shall remain in full
force and effect, except as otherwise set forth in this Amendment. The parties hereby ratify and confirm the terms and conditions
of the Purchase Agreement, as supplemented and amended by this Amendment.

 

15.
Recitals. The Recitals above are true and correct and are hereby incorporated by reference.

 

16.
Counterparts. This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument, and will be effective when counterparts have been signed by
the Buyer, the Sellers and the Company and delivered to the Buyer, the Sellers and the Company. A manual signature on this Amendment,
an image of which shall have been transmitted electronically, will constitute an original signature for all purposes. The delivery
of copies of this Amendment, including executed signature pages where required, by electronic transmission will constitute effective
delivery of this Amendment.

 

**
Signature Page Follows **

 

    	 	5	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, each of the undersigned has caused this Amendment to be duly executed on its behalf as of the Amendment Effective
Date.

 

	 	THE BUYER:
	 	 	 
	 	FTE NETWORKS, INC.
	 	 	
	 	By:	 
	 	Name:
    	Michael
    Palleschi
	 	Title:
    	Chief
    Executive Officer
	 	 	 
	 	THE COMPANY:
	 	 	 
	 	BENCHMARK BUILDERS, INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:
    	 
	 	 	 
	 	THE SELLERS:
	 	 	 
	 	By:	 
	 	Name:
    	Brian
    McMahon
	 	 	 
	 	By:	 
	 	Name:
    	Fred
    Sacramone
	 	 	 
	 	By:	 
	 	Name:
    	William
    Reynolds
	 	 	 
	 	By:	 
	 	Name:
    	Irena
    Spyt
	 	 	 
	 	By:	 
	 	Name:
    	Blaine
    Henn
	 	 	 
	 	By:	 
	 	Name:
    	Richard
    Prevost

 

    	 	 	 

    	 	 	 

    

 

ATTACHMENT
1

 

ATTACHMENT
1 - SERIES A NOTE/EXHIBIT A

 

    	 	 	 

    	 	 	 

    

 

THIS
INSTRUMENT AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE IN THE MANNER AND TO THE EXTENT SET FORTH IN THAT CERTAIN
SUBORDINATION AND INTERCREDITOR AGREEMENT (THE “SUBORDINATION AGREEMENT”) DATED AS OF APRIL 20, 2017 AMONG
(INTER ALIOS) BRIAN MCMAHON, A NATURAL PERSON, AS AN INITIAL SUBORDINATED CREDITOR, FRED SACRAMONE, A NATURAL PERSON, AS AN INITIAL
SUBORDINATED CREDITOR, the Obligor, AND LATERAL JUSCOM FEEDER LLC, AS Administrative
AGENT (the “Senior Agent”), TO THE INDEBTEDNESS (INCLUDING
INTEREST) OWED BY the Obligor AND ITS SUBSIDIARIES, PURSUANT TO THAT CERTAIN CREDIT
AGREEMENT DATED AS OF OCTOBER 28, 2015 AMONG THE Obligor, ITS SUBSIDIARIES PARTY
THERETO, SENIOR AGENT AND THE LENDERS FROM TIME TO TIME PARTY THERETO (THE “SENIOR CREDIT AGREEMENT”) AND THE
OTHER SENIOR DEBT DOCUMENTS (AS DEFINED IN THE SUBORDINATION AGREEMENT), AS SUCH SENIOR CREDIT AGREEMENT AND OTHER SENIOR DEBT
DOCUMENTS HAVE BEEN AND HEREAFTER MAY BE AMENDED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME AND TO INDEBTEDNESS REFINANCING
THE INDEBTEDNESS UNDER THOSE AGREEMENTS AS CONTEMPLATED BY THE SUBORDINATION AGREEMENT; AND EACH HOLDER OF THIS INSTRUMENT, BY
ITS ACCEPTANCE HEREOF, IRREVOCABLY AGREES TO BE BOUND BY THE PROVISIONS OF THE SUBORDINATION AGREEMENT.

 

CONVERTIBLE
PROMISSORY NOTE

 

	$[____________]	April
    __, 2017

 

The
undersigned, FTE Networks, Inc., a Nevada corporation (the “Obligor”), hereby promises to pay to [____________],
(the “Holder”), with an address at [_______________________], subject to the terms and conditions set forth
herein and in the manner and at the place hereafter set forth, the principal sum of [____________] Dollars ($[____________] USD)
(the “Principal Amount”), which such amount shall be paid in accordance herewith, together with interest accrued
thereon, computed at the rate of five percent (5%) per annum on the outstanding, unpaid Principal Amount hereof, from April 20,
2017 (the “Effective Date”) until the date such outstanding Principal Amount has been paid in full, or converted
in accordance with the provisions of this Convertible Promissory Note (as the same may be amended, supplemented, restated or otherwise
modified from time to time in accordance with its terms, this “Note”). The Obligor and the Holder are sometimes
hereinafter collectively called the “Parties” and each individually called a “Party”. The
“Obligations” include the outstanding Principal Amount, together with any accrued and unpaid interest thereon
and all fees, costs and expenses owed to the Holder under this Note, whether incurred before or after the commencement of a proceeding
under the U.S. Bankruptcy Code.

 

This
Note is being issued pursuant to that certain Stock Purchase Agreement dated as of March 9, 2017, and amended as of April 20,
2017, by and between the Obligor, Benchmark Builders, Inc., a New York corporation (“BBI”), and the stockholders
of BBI, including the Holder (as the same may be amended, supplemented, restated or otherwise modified from time to time in accordance
with its terms, the “Purchase Agreement”), pursuant to which the Obligor acquired one hundred percent (100%)
of the issued and outstanding capital stock of BBI. This Note is one of the “Series A Notes” referred to in the Purchase
Agreement. Except as defined or unless otherwise indicated herein, capitalized terms used in this Note have the same meanings
set forth in the Purchase Agreement.

 

    	 	 	 

    	 	 	 

    

 

Repayment.
The Obligor shall pay the Principal Amount in one (1) installment of Four Million One Hundred Sixty-Six Thousand Six Hundred Sixty-Six
and 67/100 Dollars ($4,166,666.67 USD) on the earliest to occur (the “Maturity Date”) of (a) April 20, 2019,
(b) the acceleration of the maturity of this Note by the Holder upon the occurrence of an Event of Default (as defined below),
and (c) a Sale of Obligor (as defined below). Interest accrued on the Principal Amount shall be compounded quarterly, on the last
day of each March, June, September, and December, occurring during the term of this Note (each, an “Interest Payment
Date”), with all accrued and then unpaid interest due and payable on the Maturity Date. If the date on which any payment
is due hereunder falls on a day other than a Business Day, the payment thereof shall be extended to the next Business Day. For
the purposes of this Note, “Business Day” shall mean any day other than a Saturday, a Sunday or a day on which banks
in New York, New York are authorized or required by applicable law to be closed.

 

Interest.
Interest shall be computed on the unpaid Principal Amount hereunder on the basis of a year composed of three hundred sixty-five
(365) days, but shall accrue and be payable for the actual number of days during which the Principal Amount is outstanding and
shall be compounded quarterly by capitalizing such interest quarterly. Accrued but unpaid interest shall be payable in accordance
with Paragraph ‎1.

 

Location
of Payment. The payments due under this Note shall be paid in lawful money of the United States of America in immediately
available funds and delivered to the Holder by wire transfer to an account of the Holder designated in writing by the Holder for
such purpose or, if no such account is so designated by the Holder, then by check to the Holder at the address set forth above.

 

Prepayment.
If permitted by the Subordination Agreement or otherwise with the prior written consent of the Senior Agent, the Obligor shall
have the right to prepay all or any part of the balance of the Obligations, without penalty or premium, provided that any such
prepayment of the Obligations shall be applied first, to fees, expenses and other amounts due under this Note (excluding
principal and interest), if any, second, to accrued and unpaid interest on the Principal Amount to the date of such prepayment,
and third, to the Principal Amount.

 

Conversion.
This Note shall be convertible into Conversion Shares, at the Holder’s option, upon an Event of Default, and subject to
the Obligor’s Offset Rights (as defined below), as set forth herein and on the terms and conditions set forth in this Paragraph
‎5.

 

Conversion
Amount. Subject to the provisions of Paragraph ‎5 at any time, the Holder shall be entitled to convert all or any
portion of the Conversion Amount (as defined below) into fully paid and non-assessable Conversion Shares in accordance with this
Paragraph ‎5. The number of Conversion Shares issuable upon conversion of any Conversion Amount pursuant to this Paragraph
‎5 shall be determined by dividing (x) the then unpaid Principal Amount, and accrued interest thereon, of the outstanding
indebtedness by (y) the Conversion Price Per Share as in effect on the date the notice of conversion is given. The Obligor shall
not issue any fraction of a Conversion Share upon any such conversion. If the issuance would result in the issuance of a fraction
of a Conversion Share, the Obligor shall round such fraction of a Conversion Share up to the nearest whole share. The Obligor
shall pay any and all transfer, stamp and similar taxes that may be payable with respect to the issuance and delivery of Conversion
Shares upon conversion of any Conversion Amount.

 

    	 	2	 

    	 	 	 

    

 

Reservation.
The Obligor will at all times reserve and keep available out of its authorized but unissued shares of Buyer Common Stock, solely
for the purpose of effecting the conversion of this Note into Conversion Shares, such number of shares of its duly authorized
shares of Buyer Common Stock as will from time to time be sufficient to effect the conversion of this Note into Conversion Shares
in full. If at any time the number of authorized but unissued shares of Buyer Common Stock is not sufficient to effect the conversion
of this Note into Conversion Shares, the Obligor will take such action as may, in the reasonable opinion of its counsel, be necessary
to increase its authorized but unissued shares of Buyer Common Stock to such number as is sufficient for such purpose, including
engaging in commercially reasonable efforts to obtain the requisite stockholder approval of any necessary amendment to its certificate
of incorporation. The Obligor further agrees that all shares of Buyer Common Stock that may be issued upon the conversion of the
rights represented by this Note will be duly authorized and will be validly issued, fully paid and non-assessable, free from all
taxes, Liens (other than Liens created by the Holder), charges and preemptive rights with respect to the issuance thereof, other
than restrictions imposed by federal and state securities laws.

 

Mechanics
of Conversion; Delivery of Shares. To convert any Conversion Amount into Conversion Shares pursuant to the terms of this Paragraph
‎5, the Holder shall (A) transmit by electronic mail or facsimile (or otherwise deliver), for receipt on or prior to 11:59
p.m., Eastern Standard time, a notice of conversion in the form attached hereto as Exhibit A (the “Conversion
Notice”) to the Obligor and (B) surrender this Note to the Obligor via a nationally recognized overnight delivery service
for delivery (or an indemnification undertaking reasonably satisfactory to the Obligor with respect to this Note in the case of
its loss, theft or destruction). On or before the third (3rd) Business Day following the date of receipt of a Conversion
Notice (the “Share Delivery Date”), the Obligor shall (X) if legends are not required to be placed on certificates
of Conversion Shares and provided that the Obligor’s transfer agent (the “Transfer Agent”) is participating
in the Depository Trust Company’s (“DTC”) Fast Automated Securities Transfer Program, credit such aggregate
number of Conversion Shares to which the Holder shall be entitled to the Holder’s or its designee’s balance account
with DTC through its Deposit Withdrawal Agent Commission system or (Y) if the Transfer Agent is not participating in the DTC Fast
Automated Securities Transfer Program, issue and deliver to the address as specified in the Conversion Notice, a certificate,
registered in the name of the Holder or its designee, for the number of Conversion Shares to which the Holder shall be entitled.
If less than all of the outstanding Principal Amount and accrued and unpaid interest of this Note is converted pursuant to Subparagraph
‎5(a), then the Obligor shall as soon as practicable and in no event later than ten (10) Business Days after receipt of
this Note, issue and deliver to the Holder a new Note representing the outstanding Principal Amount and accrued and unpaid interest
not converted.

 

    	 	3	 

    	 	 	 

    

 

Offset;
Dispute. The Parties acknowledge that in connection with the Purchase Agreement, the Obligor has the ability to offset and
satisfy in lieu of making any payments hereunder, any Damages incurred by the Obligor for which the Company and/or the Sellers
under the Purchase Agreement must provide indemnification, particularly, without limitation, under Section 7.3, Article
8 and Section 9.1 thereof (“Offset Rights”); provided, however, that the Obligor shall
not be entitled to reduce the Conversion Amount or the number of Conversion Shares to be issued at any time following receipt
of a Conversion Notice by offset unless the Obligor shall have delivered to the Holder a notice of indemnification claim in accordance
with the provisions of Section 9.1(j) of the Purchase Agreement prior to receipt by the Obligor of a Conversion Notice.

 

Adjustment.
The number of Conversion Shares issuable upon conversion of this Note or any portion thereof (or any shares of stock or other
securities or property at the time receivable or issuable upon conversion of this Note or any portion thereof) and the Conversion
Price Per Share therefor are subject to adjustment upon the occurrence of any of the following events between the Effective Date
and the date that all Obligations hereunder are repaid or this Note is converted in full into Conversion Shares:

 

Adjustment
for Stock Splits, Stock Dividends, Recapitalizations, etc. The Conversion Price Per Share of this Note will be proportionally
adjusted to reflect any stock dividend, stock split, reverse stock split, reclassification, recapitalization or other similar
event affecting the number of outstanding Conversion Shares.

 

Adjustment
for Reorganization, Consolidation, Merger. In case of any reorganization, reclassification or similar event involving the
Obligor (or of any other corporation the stock or other securities of which are at the time receivable on the conversion of this
Note) after the Effective Date, or in case, after such date, the Obligor (or any such corporation) shall consolidate with or merge
with another entity, then, and in each such case, the Holder, upon the conversion of this Note at any time after the consummation
of such reorganization, consolidation or merger, will be entitled to receive, in lieu of the stock or other securities and property
receivable upon the conversion of this Note prior to such consummation, the stock or other securities or property to which the
Holder would have been entitled upon the consummation of such reorganization, consolidation or merger if the Holder had converted
this Note immediately prior thereto, subject to further adjustment as provided in this Note, and, in such case, appropriate adjustment
(as determined in good faith by the board of directors of the Obligor, including Sacramone) will be made in the application of
the provisions in this Subparagraph ‎5(e) with respect to the rights and interests thereafter of the Holder, to the
end that the provisions set forth in this Subparagraph ‎5(e) will thereafter be applicable, as nearly as reasonably
may be, in relation to any securities or other property thereafter deliverable upon the conversion of this Note. The successor
or purchasing corporation in any such reorganization, consolidation or merger will duly execute and deliver to the Holder a supplement
hereto reasonably acceptable to the Holder acknowledging such entity’s obligations under this Note and, in each such case,
the terms of this Note will be applicable to the shares of stock or other securities or property receivable upon the conversion
of this Note after the consummation of such reorganization, consolidation or merger.

 

    	 	4	 

    	 	 	 

    

 

Conversion
of Stock. In case all the authorized Buyer Common Stock is converted, pursuant to the certificate of incorporation, into other
securities or property, or the Buyer Common Stock otherwise ceases to exist, then, in such case, the Holder, upon conversion of
this Note at any time after the date on which the Buyer Common Stock is so converted or ceases to exist (the “Termination
Date”), will receive, in lieu of the number of Conversion Shares that would have been issuable upon such exercise immediately
prior to the Termination Date (the “Former Number of Conversion Shares”), the stock and other securities and
property which the Holder would have been entitled to receive upon the Termination Date if the Holder had converted this Note
with respect to the Former Number of Conversion Shares immediately prior to the Termination Date (all subject to further adjustment
as provided in this Note).

 

Certificate
of Adjustments. The Obligor will, at its expense, cause an authorized officer promptly to prepare a written certificate showing
each adjustment or readjustment of the Conversion Price Per Share or the number of Conversion Shares or other securities issuable
upon conversion of this Note and cause such certificate to be delivered to the Holder in accordance with the provisions of Paragraph
‎13. The certificate will describe the adjustment or readjustment and include a description in reasonable detail of the
facts on which the adjustment or readjustment is based.

 

Events
of Default. For purposes of this Note, each of the following shall constitute an “Event of Default” hereunder:

 

the
failure of the Obligor to make any payment when due of the outstanding, unpaid principal amount on this Note, or of any amount
due under Section 2.2 of the Purchase Agreement, whether at maturity, upon acceleration or otherwise;

 

the
failure of the Obligor to make any payment of interest on this Note, or any other amounts due under this Note (other than principal)
when due, whether on an Interest Payment Date, at maturity, upon acceleration or otherwise, or the failure of the Obligor to perform
or comply with any other duty or obligation of the Obligor under this Note, and such failure continues for more than thirty (30)
days after delivery by the Holder of written notice thereof; provided, however, that any failure to make any such
foregoing payment due to the Obligor’s exercise of its Offset Rights shall not constitute Events of Default;

 

[reserved];

 

there
shall have occurred an acceleration of the stated maturity of any other indebtedness for borrowed money of the Obligor and/or
its subsidiaries of $5,000,000 or more in aggregate principal amount, other than any acceleration resulting from the sale or other
disposition of assets that were financed with the proceeds of such Indebtedness, so long as such Indebtedness is repaid with the
proceeds of such sale or other disposition;

 

if
the Obligor shall admit in writing that it has become insolvent or cannot pay its debts generally as they become due;

 

if
the Obligor files a petition to take advantage of any bankruptcy or insolvency law;

 

    	 	5	 

    	 	 	 

    

 

an
order, judgment or decree is entered adjudicating the Obligor or any subsidiary thereof as bankrupt or insolvent; or any order
for relief with respect to the Obligor or any subsidiary thereof is entered under the Federal Bankruptcy Code or any other bankruptcy
or insolvency law; or the Obligor or any subsidiary thereof petitions or applies to any tribunal for the appointment of a custodian,
trustee, receiver or liquidator of the Obligor or any subsidiary thereof or of any substantial part of the assets of the Obligor
or any subsidiary thereof, or commences any proceeding relating to it under any bankruptcy, reorganization, arrangement, insolvency,
readjustment of debt, dissolution or liquidation law of any jurisdiction; or any such petition or application is filed, or any
such proceeding is commenced, against the Obligor or any subsidiary thereof and either (i) the Obligor or such subsidiary by any
act indicates its approval thereof, consents thereto or acquiescence therein or (ii) such petition application or proceeding is
not dismissed within sixty (60) days;

 

if
any general assignment for the benefit of the Obligor’s creditors shall be made;

 

there
shall have occurred and be continuing any default or material breach by the Obligor or its Subsidiaries under this Note, any of
the Ancillary Agreements or the Purchase Agreement (collectively, the “Transaction Documents”), which default
or breach remains uncured for a period of thirty (30) days following the Obligor’s receipt of an initial written notice
from Holder to Obligor of the occurrence or existence of such default or breach;

 

one
or more final non-monetary judgments, orders or decrees shall be rendered against the Obligor which have, either individually
or in the aggregate, a material adverse effect upon the Obligor, and there shall be any period of thirty (30) consecutive days
during which a stay of enforcement of such judgment, order, or decree, by reason of a pending appeal or otherwise, shall not be
in effect;

 

a
final, non-appealable judgment which, in the aggregate with other outstanding final judgments against the Obligor and its subsidiaries,
exceeds $5,000,000 (exclusive of amounts reasonably anticipated to be covered by insurance) shall be rendered against the Obligor
or any subsidiary thereof and within sixty (60) days after entry thereof, such judgment is not discharged or execution thereof
stayed pending appeal, or within sixty (60) days after the expiration of such stay, such judgment is not discharged, or the initiation
of any action, suit, proceeding or investigation that questions the validity of this Note or any of the other Transaction Documents
or the right of the Obligor to enter into any of such agreements, or to consummate the transactions contemplated hereby or thereby;
or

 

any
provision of this Note or any of the other Transaction Documents shall for any reason not be now or cease to be in the future,
valid, binding and enforceable in accordance with its terms, and any of such conditions remains uncured for a period of fifteen
(15) days following the Obligor’s receipt of an initial written notice from Holder to Obligor of the occurrence or existence
of such condition.

 

For
so long as any Obligation under this Note remains outstanding (other than inchoate indemnity obligations), and in addition to
any obligations on and covenants of the Obligor made pursuant to the Transaction Documents, the Obligor covenants and agrees with
the Holder that, unless otherwise approved by the Holder in its sole discretion, the Obligor will and will cause each of its subsidiaries
to, at all times promptly notify the Holder in writing of (i) the occurrence of an Event of Default, (ii) the occurrence of any
event or condition which, with the giving of notice or the lapse of time (or both) would constitute an Event of Default and (iii)
the occurrence of any Senior Default event of default under any documentation governing indebtedness.

 

    	 	6	 

    	 	 	 

    

 

Consequences
of the Occurrence of an Event of Default.

 

If
an Event of Default set forth in Subparagraph ‎6(a) through ‎6(d), and ‎6(i) through ‎6(l)
has occurred and is continuing, which Event of Default remains uncured for a period of ten (10) days following the date of such
Event of Default (unless a different cure period is specified therein) regardless of notice to the Obligor (unless otherwise specified
therein), the Holder may, subject to the terms and conditions of this Note and the Subordination Agreement, declare all or any
portion of the outstanding, unpaid Principal Amount, accrued interest, and other amounts owing under this Note, due and payable
and demand immediate payment thereof, by cash or Buyer Common Stock at the election of the Holder, and, under such circumstances,
if the Holder demands immediate payment thereof, the Obligor shall immediately pay to the Holder the such amounts requested to
be paid. Upon the occurrence of any Event of Default as defined under Subparagraph ‎6(e) through ‎6(h),
the outstanding, unpaid Principal Amount, accrued interest, and other amounts owing under this Note shall automatically become
immediately due and payable in full, without presentment, demand, protest or other requirements of any kind, all of which are
hereby expressly waived by the Obligor.

 

Notwithstanding
and without limiting Paragraph ‎7(a), upon the occurrence and during the continuance of any Event of Default but otherwise
subject to the Subordination Agreement, the Holder may pursue any available remedy, whether at law or in equity, including, without
limitation, exercising its rights under any of the other Transaction Documents.

 

Outstanding
and unpaid Principal Amount and, to the extent permitted by applicable law, overdue interest and fees or any other amounts payable
under this Note shall bear interest from and including the due date thereof until paid at a rate per annum equal to fifteen percent
(15%) or the highest interest rate permitted by applicable law, whichever is lower (the “Default Rate”). Upon
the occurrence and during the continuance of an Event of Default, the outstanding and unpaid Principal Amount shall bear interest
at the Default Rate until such time as the Event of Default has been cured or waived.

 

The
Obligor shall pay to the Holder the reasonable attorneys’ fees and disbursements and all other reasonable out-of-pocket
costs incurred by the Holder in order to collect amounts due and owing under this Note or otherwise to enforce the Holder’s
rights and remedies hereunder.

 

Tax
Treatment. The Holder and the Obligor agree to treat this Note and the Obligations evidenced hereby as indebtedness for federal,
state, local and foreign tax purposes.

 

No
Impairment. The Obligor will not by amendment of its certificate of incorporation or bylaws, or through reorganization, consolidation,
merger, dissolution, issue or sale of securities, sale of assets or any other voluntary action, willfully avoid or seek to avoid
the observance or performance of any of the terms of this Note, but will at all times in good faith assist in the carrying out
of all such terms and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the
Holder under this Note against wrongful impairment.

 

    	 	7	 

    	 	 	 

    

 

Governing
Law and Venue. This Note shall be governed by and construed in accordance with the laws of the State of New York without regard
to principles of conflicts of laws. Section 9.5 of the Purchase Agreement is applicable to any proceeding in respect of
this Note.

 

Amendments;
Waiver. All amendments to this Note must be in writing and signed by the Holder and the Obligor. No delay or omission on the
part of the Holder in exercising any right of the Holder hereunder shall operate as a waiver of such right or of any other right
of the Holder under this Note. No waiver of any right of the Holder contained in this Note shall be effective unless in writing
and signed by the Holder, nor shall a waiver on one occasion be construed as a waiver of any such right on any future occasion.
Without limiting the generality of the foregoing, the acceptance by the Holder of any late payment shall not be deemed to be a
waiver of the Event of Default arising as a consequence thereof. The Obligor waives presentment, demand, notice, protest and all
other demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this Note.

 

Assignment.
The rights and obligations of Obligor and Holder shall be binding upon and benefit the successors and permitted assigns and transferees
of Obligor and Holder; provided, that Obligor shall not be permitted to assign this Note or its rights or obligations hereunder
without the prior written consent of the Holder in each instance, in the Holder’s sole and absolute discretion, and provided,
further, that (1) in no event shall Holder sell, exchange, assign, pledge, hypothecate, transfer or otherwise dispose (each,
a “Transfer”) of this Note or any interest of Holder therein without Obligor’s prior written consent,
in its sole and absolute discretion, and (2) any Transfer by Holder of this Note shall be subject to the terms of the Subordination
Agreement. In the event of any permitted Transfer hereunder, (i) the Holder agrees to pay for all costs associated with documenting,
implementing or otherwise accommodating such Transfer, including without limitation, any cost incurred in connection with the
issuance of a replacement note as required under Subparagraph ‎15(c), (ii) each prospective Holder shall be, and shall
provide a representation that it is, entering into such Transfer for its own account and not with a view to, or for sale in connection
with, any subsequent distribution), and (iii) each prospective Holder shall become a party to this Note (or any replacement note).
Any Transfer by the Holder or assignment by the Obligor made other than in strict accordance with this Paragraph ‎12
shall be null and void. Any permitted transferee of the Holder’s rights and obligations under this Note in accordance with
this Paragraph ‎12 shall be deemed to be the “Holder” for purposes of this Note.

 

Notice.
All notices and other communications given or made pursuant to this Note shall be in writing and shall be deemed effectively given:
(a) upon personal delivery to the Party to be notified, (b) two (2) days after having been sent by registered or certified mail,
return receipt requested, postage prepaid, or (c) upon receipt after deposit with a nationally recognized overnight courier, specifying
next day delivery, with written verification of receipt. All communications shall be sent to the Holder at the address set forth
above, or to the Obligor in accordance with Section 9.4 of the Purchase Agreement, or to such address as may be subsequently
provided by a Party by written notice to the other Party given in accordance with this Paragraph  ‎13.

 

    	 	8	 

    	 	 	 

    

 

Certain
Definitions.

 

“Conversion
Amount” means the then outstanding Principal Amount and accrued interest of this Note (subject to the Obligor’s
Offset Rights set forth in Section 5(d)) to be converted or otherwise with respect to which this determination is being made.

 

“Conversion
Price Per Share” means $0.475 (subject to adjustment as provided herein).

 

“Conversion
Shares” means the shares of Buyer Common Stock and other securities and property at any time receivable or issuable
upon conversion of this Note in accordance with its terms. The number and character of Conversion Shares are subject to adjustment
as provided herein.

 

“Sale
of Obligor” means (i) the acquisition of the Obligor by another Person or group of related Persons by means of any transaction
or series of related transactions (including any acquisition of Obligor securities or derivative securities, reorganization, merger
or consolidation, but excluding (x) any issuance and sale by the Obligor, in one transaction or a series of related transactions,
of Obligor securities or derivative securities having less than a majority of the total voting power represented by the outstanding
voting securities of the Obligor or (y) any issuance and sale by the Obligor of obligor securities or derivative securities for
capital raising purposes, provided that in connection with either clause (x) or (y) above no proceeds are distributed to security
holders of the Obligor or are used to repurchase or redeem any securities of the Obligor in connection with such transaction or
within 12 months thereafter) after the consummation of which the holders of the voting securities of the Obligor outstanding immediately
prior to such transaction or series of related transactions own, directly or indirectly, less than a majority of the total voting
power represented by the outstanding voting securities of the Obligor or such other surviving or resulting entity (or if the Obligor
or such other surviving or resulting entity is a wholly-owned subsidiary immediately following such acquisition, its parent) immediately
after such transaction or series of related transactions; (ii) a sale, lease or other disposition of all or more than 50% of the
assets of the Obligor and its subsidiaries taken as a whole by means of any transaction or series of related transactions, except
where such sale, lease or other disposition is to a wholly-owned subsidiary of the Obligor; or (iii) any bankruptcy, liquidation,
dissolution or winding up of the Obligor whether voluntary or involuntary.

 

Miscellaneous.

 

With
regard to all dates and time periods set forth or referred to in this Note, time is of the essence. Unless specified otherwise,
any action required hereunder to be taken within a certain number of days shall be taken within that number of calendar days (and
not Business Days), provided, however, that if the last day for taking such action falls on a weekend or a holiday in New York,
New York, the period during which such action may be taken shall be automatically extended to the next Business Day.

 

Wherever
possible, each provision of this Note shall be interpreted in such manner as to be effective and valid under applicable law, but
if any provision of this Note shall be prohibited or invalid under applicable law, such provision shall be ineffective to the
extent of such prohibition or invalidity without invalidating the remainder of such provision or remaining provisions of this
Note. No delay or failure on the part of the Holder in the exercise of any right or remedy hereunder shall operate as a waiver
thereof, nor as an acquiescence in any default, nor shall any single or partial exercise by the Holder of any right or remedy
preclude any other right or remedy.

 

    	 	9	 

    	 	 	 

    

 

The
Obligor or the Holder (i) may, but shall not be obligated to, request in writing the issuance of a replacement note to evidence
any increases or decreases in the balance of the Principal Amount pursuant to Paragraphs ‎1 and ‎4, (ii)
shall request in writing the issuance of a replacement note to evidence any permitted assignment pursuant to Paragraph ‎12,
and (iii) shall request in writing the issuance of a replacement note to evidence the mutilation, destruction, loss or theft of
this Note (or any replacement note) and the ownership thereof, in each case, such replacement note being identical in form and
substance in all respects to this Note (other than to reflect such changes as set forth in this Subparagraph ‎15(c)).
Upon any such request or requirement, the Obligor shall issue such replacement notes and the Holder(s) of this Note or such replacement
notes shall return such notes to be replaced to the Obligor, in each case marked “cancelled”, or deliver to the Obligor
a lost note indemnity form in substance satisfactory to the Obligor and, with respect to any replaced notes, such notes shall
thereafter be deemed no longer unpaid and/or outstanding hereunder.

 

After
the Principal Amount and all interest due thereon, and any other amounts at any time owed on this Note has been paid in full (or
deemed paid in full), this Note shall be surrendered to the Obligor for cancellation and shall not be reissued.

 

Notwithstanding
any business or personal relationship between the Obligor and the Holder, or any officer, director, member, manager or employee
of the Holder, that may exist or have existed, the relationship between the Obligor and the Holder under and with respect to this
Note is solely that of debtor and creditor, the Holder has no fiduciary or other special relationship with the Obligor by virtue
of this Note, the Obligor and the Holder are not partners or joint venturers, and no term or condition of any of this Note will
be construed so as to deem the relationship between the Obligor and the Holder to be other than that of debtor and creditor.

 

Paragraph
headings are for the convenience of reference only and are not a part of this Note and shall not affect its interpretation.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 	10	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, the Obligor has caused this Note to be executed as of the Effective Date.

 

	“OBLIGOR”:	 
	 	 	 
	FTE NETWORKS, INC.	 
	 	 	 
	By:	 	 
	Name:	Michael
    Palleschi	 
	Its:	Chief
    Executive Officer	 

 

[Signature
Page to CONVERTIBLE PROMISSORY NOTE]

 

    	 	 	 

    	 	 	 

    

 

NOTICE
OF CONVERSION

 

(To
be executed by the Holder in order to Convert the Note)

 

	TO:
    

 

Reference
is hereby made to that certain Convertible Promissory Note, dated April 20, 2017, made by FTE Networks, Inc. in favor of [_______________]
(the “Note”). Capitalized terms used but not defined herein shall have the meanings ascribed to them in the
Note

 

The
undersigned hereby irrevocably elects to convert $                                     
of the Conversion Amount of the Note into Conversion Shares according to the conditions stated therein, as of the Conversion
Date written below.

 

	Conversion
    Date:	 	                                                                                                                              
	 	 	 
	Conversion
    Amount to be converted:	 	$                                                                                                                            
	 	 	 
	Number
    of Conversion Shares to be issued:	 	                                                                                                                              
	 	 	 
	Amount
    of Note Unconverted:	 	$
	 	 	 
	Please issue the Conversion Shares in the following name and to the following address:
	 	 	 
	Issue
    to:	 	                                                                                                                              
	 	 	                                                                                                                              
	 	 	                                                                                                                              
	 	 	                                                                                                                              
	 	 	 
	 	 	 
	Authorized
    Signature:	 	                                                                                                                              
	 	 	 
	Name:	 	                                                                                                                              
	 	 	 
	Title:	 	                                                                                                                              
	 	 	 
	Broker
    DTC Participant Code:	 	 
	 	 	 
	Account
    Number:	 	 

 

ATTACHMENT
2 - SERIES B NOTE/EXHIBIT J

 

    	 	 	 

    	 	 	 

    

 

ATTACHMENT
2

 

ATTACHMENT
2 - SERIES B NOTE/EXHIBIT J

 

    	 	 	 

    	 	 	 

    

 

This
instrument and the rights and obligations evidenced hereby are subordinate in the manner and to the extent set forth in that certain
Subordination and Intercreditor Agreement (the “Subordination Agreement”) dated as of April 20, 2017 among
(inter alios) Brian McMahon, a natural person, as an Initial Subordinated Creditor, Fred Sacramone, a natural person, as an Initial
Subordinated Creditor, the Obligor, and LATERAL JUSCOM FEEDER LLC, as Administrative Agent (the “Senior Agent”),
to the indebtedness (including interest) owed by the Obligor and its subsidiaries, pursuant to that certain Credit Agreement dated
as of October 28, 2015 among The Obligor, its subsidiaries party thereto, Senior Agent and the lenders from time to time party
thereto (the “Senior Credit Agreement”) and the other Senior Debt Documents (as defined in the Subordination
Agreement), as such Senior Credit Agreement and other Senior Debt Documents have been and hereafter may be amended, supplemented
or otherwise modified from time to time and to indebtedness refinancing the indebtedness under those agreements as contemplated
by the Subordination Agreement; and each holder of this instrument, by its acceptance hereof, irrevocably agrees to be bound by
the provisions of the Subordination Agreement.

 

Series
B PROMISSORY NOTE

 

	$[____________]	April
    __, 2017

 

The
undersigned, FTE Networks, Inc., a Nevada corporation (the “Obligor”), hereby promises to pay to [____________],
(the “Holder”), with an address at [____________________], subject to the terms and conditions set forth herein
and in the manner and at the place hereafter set forth, the principal sum of [____________] Dollars ($[____________] USD) (the
“Principal Amount”), which such amount shall be paid in accordance herewith, together with interest accrued
thereon, computed at the rate of three percent (3%) per annum on the outstanding, unpaid Principal Amount hereof, from April 20,
2017 (the “Effective Date”) until the date such outstanding Principal Amount has been paid in full in accordance
with the provisions of this Series B Promissory Note (as the same may be amended, supplemented, restated or otherwise modified
from time to time in accordance with its terms, this “Note”). The Obligor and the Holder are sometimes hereinafter
collectively called the “Parties” and each individually called a “Party”. The “Obligations”
include the outstanding Principal Amount, together with any accrued and unpaid interest thereon and all fees, costs and expenses
owed to the Holder under this Note, whether incurred before or after the commencement of a proceeding under the U.S. Bankruptcy
Code.

 

This
Note is being issued pursuant to that certain Stock Purchase Agreement dated as of March 9, 2017, and amended as of April 20,
2017, by and between the Obligor, Benchmark Builders, Inc., a New York corporation (“BBI”), and the stockholders
of BBI, including the Holder (as the same may be amended, supplemented, restated or otherwise modified from time to time in accordance
with its terms, the “Purchase Agreement”), pursuant to which the Obligor acquired one hundred percent (100%)
of the issued and outstanding capital stock of BBI. This Note is one of the “Series B Notes” referred to in the Purchase
Agreement. Except as defined or unless otherwise indicated herein, capitalized terms used in this Note have the same meanings
set forth in the Purchase Agreement.

 

    	 	 	 

    	 	 	 

    

 

Mandatory
Payments.

 

Payments.
Following satisfaction in full of all obligations under the Series C Notes and subject to the satisfaction of the conditions set
forth in the Subordination Agreement, the Obligor shall be entitled to make, and the Holder shall be entitled to accept, Permitted
Subordinated Debt Payments (as defined in the Subordination Agreement). Simultaneously with the delivery to the Senior Agent,
and in any event within twenty-five (25) days of the end of each fiscal month, the Obligor shall deliver to the Holder a certificate
executed by the Chief Financial Officer of the Obligor setting forth calculations of the Monthly Excess Cash Flow (as defined
in the Subordination Agreement) and the Monthly Excess Cash Flow Amount (as defined in the Subordination Agreement) for such fiscal
month (the “Monthly Statements”).

 

Maturity
Date; Acceleration. In addition to the Obligor’s payments made pursuant to Paragraph ‎1(a), so long as no
Senior Default (as defined in the Subordination Agreement) has occurred and is continuing or would result therefrom, the Obligor
shall pay in full the Principal Amount of and any accrued and unpaid interest on the Series B Notes on the earliest to occur (the
“Maturity Date”) of (a) April 20, 2020, (b) the acceleration of the maturity of this Note by the Holder upon
the occurrence of an Event of Default, and (c) a Sale of Obligor (as defined below).

 

Interest.
Subject to Paragraph ‎8(c), commencing on and including the Effective Date, this Note will bear interest at a per annum
rate equal to three percent (3%) with respect to the unpaid Principal Amount of this Note, payable in arrears on each March 31,
June 30, September 30 and December 31 commencing on June 30, 2017 by capitalizing such interest and adding it to the Principal
Amount on such date, based on the actual days outstanding and 365 day year. Accrued but unpaid interest shall be paid in cash
in accordance with Paragraph ‎1.

 

Location
of Payment. The payments due under this Note shall be paid in lawful money of the United States of America in immediately
available funds and delivered to the Holder by wire transfer to an account of the Holder designated in writing by the Holder for
such purpose or, if no such account is so designated by the Holder, then by check to the Holder at the address set forth above.
If the date on which any payment is due hereunder falls on a day other than a Business Day, the payment thereof shall be extended
to the next Business Day. For the purposes of this Note, “Business Day” shall mean any day other than a Saturday,
a Sunday or a day on which banks in New York, New York are authorized or required by applicable law to be closed.

 

Prepayment.
If permitted by the Subordination Agreement or otherwise with the prior written consent of the Senior Agent, the Obligor shall
have the right to prepay all or any part of the balance of the Obligations, without penalty or premium. Any such prepayment of
the Obligations, and any amounts paid in respect of this Note pursuant to Paragraph ‎1 hereof, shall be applied first,
to fees, expenses and other amounts due under this Note (excluding principal and interest), if any, second, to accrued
and unpaid interest on the Principal Amount to the date of such prepayment, and third, to the Principal Amount.

 

    	 	2	 

    	 	 	 

    

 

Subordination.
The indebtedness of the Obligor evidenced by this Note, including the principal and interest on this Note, shall be subordinate
and junior in right of payment to the prior payment in full of all existing claims of the holders of the Series C Notes. In the
event of liquidation of the Obligor, holders of Series C Notes shall be entitled to be paid in full with such interest as may
be provided by law before any payment shall be made on account of principal of or interest on this Note. Additionally, in the
event of any insolvency, dissolution, assignment for the benefit of creditors or any liquidation or winding up of or relating
to the Obligor, whether voluntary or involuntary, holders of Series C Notes shall be entitled to be paid in full before any payment
shall be made on account of the principal of or interest on the Series B Notes, including this Note. If there shall have occurred
and be continuing (i) a default in any payment with respect to any Series C Note or (ii) an event of default with respect to any
Series C Note as a result of which the maturity thereof is accelerated, unless and until such payment default or event of default
shall have been cured or waived or shall have ceased to exist, no payments shall be made by the Company with respect to the Series
B Notes.

 

Priority.
Payment of this Note shall be made pari passu with payment of interest and principal on all other Series B Notes.

 

Events
of Default. For purposes of this Note, each of the following shall constitute an “Event of Default” hereunder:

 

the
failure of the Obligor to make any payment when due of the outstanding, unpaid principal amount on this Note, or of any amount
due under Section 2.2 of the Purchase Agreement, whether at maturity, upon acceleration or otherwise;

 

the
failure of the Obligor to make any payment of interest on this Note, or any other amounts due under this Note (other than principal)
when due, whether on a date specified in Paragraph ‎1, at maturity, upon acceleration or otherwise, or the failure
of the Obligor to perform or comply with any other duty or obligation of the Obligor under this Note, and such failure continues
for more than thirty (30) days after delivery by the Holder of written notice thereof; provided, however, that any
failure to make any such foregoing payment due to the Obligor’s exercise of its Offset Rights shall not constitute Events
of Default;

 

the
failure of the Obligor to deliver any Monthly Statements;

 

there
shall have occurred an acceleration of the stated maturity of any Indebtedness of the Obligor and/or its subsidiaries of $5,000,000
or more in aggregate principal amount, other than any acceleration resulting from the sale or other disposition of assets that
were financed with the proceeds of such Indebtedness, so long as such Indebtedness is repaid with the proceeds of such sale or
other disposition;

 

if
the Obligor shall admit in writing that it has become insolvent or cannot pay its debts generally as they become due;

 

    	 	3	 

    	 	 	 

    

 

if
the Obligor files a petition to take advantage of any bankruptcy or insolvency law;

 

an
order, judgment or decree is entered adjudicating the Obligor or any subsidiary thereof as bankrupt or insolvent; or any order
for relief with respect to the Obligor or any subsidiary thereof is entered under the Federal Bankruptcy Code or any other bankruptcy
or insolvency law; or the Obligor or any subsidiary thereof petitions or applies to any tribunal for the appointment of a custodian,
trustee, receiver or liquidator of the Obligor or any subsidiary thereof or of any substantial part of the assets of the Obligor
or any subsidiary thereof, or commences any proceeding relating to it under any bankruptcy, reorganization, arrangement, insolvency,
readjustment of debt, dissolution or liquidation law of any jurisdiction; or any such petition or application is filed, or any
such proceeding is commenced, against the Obligor or any subsidiary thereof and either (i) the Obligor or such subsidiary by any
act indicates its approval thereof, consents thereto or acquiescence therein or (ii) such petition application or proceeding is
not dismissed within sixty (60) days;

 

if
any general assignment for the benefit of the Obligor’s creditors shall be made;

 

there
shall have occurred and be continuing any default or material breach by the Obligor or its subsidiaries under this Note, any of
the Ancillary Agreements or the Purchase Agreement (collectively, the “Transaction Documents”), which default
or breach remains uncured for a period of thirty (30) days following the Obligor’s receipt of an initial written notice
from the Holder to the Obligor of the occurrence or existence of such default or breach;

 

one
or more final non-monetary judgments, orders or decrees shall be rendered against the Obligor which have, either individually
or in the aggregate, a material adverse effect upon the Obligor, and there shall be any period of thirty (30) consecutive days
during which a stay of enforcement of such judgment, order, or decree, by reason of a pending appeal or otherwise, shall not be
in effect;

 

a
final, non-appealable judgment which, in the aggregate with other outstanding final judgments against the Obligor and its subsidiaries,
exceeds $5,000,000 (exclusive of amounts reasonably anticipated to be covered by insurance) shall be rendered against the Obligor
or any subsidiary thereof and within sixty (60) days after entry thereof, such judgment is not discharged or execution thereof
stayed pending appeal, or within sixty (60) days after the expiration of such stay, such judgment is not discharged, or the initiation
of any action, suit, proceeding or investigation that questions the validity of this Note or any of the other Transaction Documents
or the right of the Obligor to enter into any of such agreements, or to consummate the transactions contemplated hereby or thereby;
or

 

any
provision of this Note or any of the other Transaction Documents shall for any reason not be now or cease to be in the future,
valid, binding and enforceable in accordance with its terms, and any of such conditions remains uncured for a period of fifteen
(15) days following the Obligor’s receipt of an initial written notice from Holder to Obligor of the occurrence or existence
of such condition.

 

    	 	4	 

    	 	 	 

    

 

For
so long as any Obligation under this Note remains outstanding (other than inchoate indemnity obligations), and in addition to
any obligations on and covenants of the Obligor made pursuant to the Transaction Documents, the Obligor covenants and agrees with
the Holder that, unless otherwise approved by the Holder in its sole discretion, the Obligor will and will cause each of its subsidiaries
to, at all times promptly notify the Holder in writing of (i) the occurrence of an Event of Default, (ii) the occurrence of any
event or condition which, with the giving of notice or the lapse of time (or both) would constitute an Event of Default and (iii)
the occurrence of any Senior Default or other event of default under any documentation governing Indebtedness.

 

Consequences
of the Occurrence of an Event of Default.

 

If
an Event of Default set forth in Subparagraph ‎7(a) through ‎7(d), and ‎7(i) through ‎7(l)
has occurred and is continuing, which Event of Default remains uncured for a period of ten (10) days following the date of such
Event of Default (unless a different cure period is specified therein) regardless of notice to the Obligor (unless otherwise specified
therein), the Holder may, subject to the terms and conditions of this Note and the Subordination Agreement, declare all or any
portion of the outstanding, unpaid Principal Amount, accrued interest, and other amounts owing under this Note, due and payable
and demand immediate payment thereof, by cash or Buyer Common Stock at the election of the Holder, and, under such circumstances,
if the Holder demands immediate payment thereof, the Obligor shall immediately pay to the Holder the such amounts requested to
be paid. Upon the occurrence of any Event of Default as defined under Subparagraph ‎7(e) through ‎7(h),
the outstanding, unpaid Principal Amount, accrued interest, and other amounts owing under this Note shall automatically become
immediately due and payable in full, without presentment, demand, protest or other requirements of any kind, all of which are
hereby expressly waived by the Obligor.

 

Notwithstanding
and without limiting Paragraph ‎8(a), upon the occurrence and during the continuance of any Event of Default, but otherwise
subject to the Subordination Agreement, the Holder may pursue any available remedy, whether at law or in equity, including, without
limitation, exercising its rights under any of the other Transaction Documents.

 

Outstanding
and unpaid Principal Amount and, to the extent permitted by applicable law, overdue interest and fees or any other amounts payable
under this Note shall bear interest from and including the due date thereof until paid at a rate per annum equal to fifteen percent
(15%) or the highest interest rate permitted by applicable law, whichever is lower (the “Default Rate”). Upon
the occurrence and during the continuance of an Event of Default, the outstanding and unpaid Principal Amount shall bear interest
at the Default Rate until such time as the Event of Default has been cured or waived.

 

The
Obligor shall pay to the Holder the reasonable attorneys’ fees and disbursements and all other reasonable out-of-pocket
costs incurred by the Holder in order to collect amounts due and owing under this Note or otherwise to enforce the Holder’s
rights and remedies hereunder.

 

Tax
Treatment. The Holder and the Obligor agree to treat this Note and the Obligations evidenced hereby as indebtedness for federal,
state, local and foreign tax purposes.

 

    	 	5	 

    	 	 	 

    

 

No
Impairment. The Obligor will not by amendment of its certificate of incorporation or bylaws, or through reorganization, consolidation,
merger, dissolution, issue or sale of securities, sale of assets or any other voluntary action, willfully avoid or seek to avoid
the observance or performance of any of the terms of this Note, but will at all times in good faith assist in the carrying out
of all such terms and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the
Holder under this Note against wrongful impairment.

 

Governing
Law and Venue. This Note shall be governed by and construed in accordance with the laws of the State of New York without regard
to principles of conflicts of laws. Section 9.5 of the Purchase Agreement is applicable to any proceeding in respect of
this Note.

 

Amendments;
Waiver. All amendments to this Note must be in writing and signed by the Holder and the Obligor. No delay or omission on the
part of the Holder in exercising any right of the Holder hereunder shall operate as a waiver of such right or of any other right
of the Holder under this Note. No waiver of any right of the Holder contained in this Note shall be effective unless in writing
and signed by the Holder, nor shall a waiver on one occasion be construed as a waiver of any such right on any future occasion.
Without limiting the generality of the foregoing, the acceptance by the Holder of any late payment shall not be deemed to be a
waiver of the Event of Default arising as a consequence thereof. The Obligor waives presentment, demand, notice, protest and all
other demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this Note.

 

Assignment.
The rights and obligations of Obligor and Holder shall be binding upon and benefit the successors and permitted assigns and transferees
of Obligor and Holder; provided, that Obligor shall not be permitted to assign this Note or its rights or obligations hereunder
without the prior written consent of the Holder in each instance, in the Holder’s sole and absolute discretion, and provided,
further, that (1) in no event shall Holder sell, exchange, assign, pledge, hypothecate, transfer or otherwise dispose (each,
a “Transfer”) of this Note or any interest of Holder therein without Obligor’s prior written consent,
in its sole and absolute discretion, and (2) any Transfer by Holder of this Note shall be subject to the terms of the Subordination
Agreement. In the event of any permitted Transfer hereunder, (i) the Holder agrees to pay for all costs associated with documenting,
implementing or otherwise accommodating such Transfer, including without limitation, any cost incurred in connection with the
issuance of a replacement note as required under Subparagraph ‎16(c), (ii) each prospective Holder shall be, and shall
provide a representation that it is, entering into such Transfer for its own account and not with a view to, or for sale in connection
with, any subsequent distribution), and (iii) each prospective Holder shall become a party to this Note (or any replacement note).
Any Transfer by the Holder or assignment by the Obligor made other than in strict accordance with this Paragraph ‎13
shall be null and void. Any permitted transferee of the Holder’s rights and obligations under this Note in accordance with
this Paragraph ‎13 shall be deemed to be the “Holder” for purposes of this Note.

 

Notice.
All notices and other communications given or made pursuant to this Note shall be in writing and shall be deemed effectively given:
(a) upon personal delivery to the Party to be notified, (b) two (2) days after having been sent by registered or certified mail,
return receipt requested, postage prepaid, or (c) upon receipt after deposit with a nationally recognized overnight courier, specifying
next day delivery, with written verification of receipt. All communications shall be sent to the Holder at the address set forth
above, or to the Obligor in accordance with Section 9.4 of the Purchase Agreement, or to such address as may be subsequently
provided by a Party by written notice to the other Party given in accordance with this Paragraph ‎14. 

 

    	 	6	 

    	 	 	 

    

 

Certain
Definitions.

 

“Capital
Stock” means any and all shares, interests, participations, units or other equivalents (however designated) of capital
stock of a corporation, membership interests in a limited liability company, partnership interests of a limited partnership, any
and all equivalent ownership interests in a Person and any and all warrants, rights or options to purchase any of the foregoing.

 

“Disqualified
Capital Stock” shall mean any Capital Stock that, by its terms (or by the terms of any security or other Capital Stock
into which it is convertible or for which it is exchangeable) or upon the happening of any event or condition, (a) matures or
is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, (b) is redeemable at the option of the holder thereof,
in whole or in part, (c) provides for the scheduled payment of dividends in cash or (d) is or becomes convertible into or exchangeable
for Indebtedness or any other Capital Stock that would constitute Disqualified Capital Stock; provided, that if such Capital
Stock is issued pursuant to a plan for the benefit of employees or consultants of the Obligor or its subsidiaries or by any such
plan to such employees or consultants, such Capital Stock shall not constitute Disqualified Capital Stock solely because it may
be required to be repurchased by the Obligor or its subsidiaries in order to satisfy applicable statutory or regulatory obligations.

 

“Indebtedness”
means, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness
or liabilities in accordance with GAAP: (a) all indebtedness of such Person for borrowed money and all indebtedness of such Person
evidenced by bonds, debentures, notes, loan agreements or other similar instruments; (b) the maximum amount (after giving effect
to any prior drawings or reductions which may have been reimbursed) of all letters of credit (including standby and commercial),
bankers’ acceptances, bank guaranties, surety bonds, performance bonds and similar instruments issued or created by or for
the account of such Person; (c) all obligations of such Person to pay the deferred purchase price of property or services other
than trade accounts payable in the ordinary course of business; (d) indebtedness (excluding prepaid interest thereon) secured
by a Lien on property owned or being purchased by such Person (including indebtedness arising under conditional sales or other
title retention agreements and mortgage, industrial revenue bond, industrial development bond and similar financings), whether
or not such indebtedness shall have been assumed by such Person or is limited in recourse; (e) the capitalized amount of any lease
of such Person that would appear as a liability on a balance sheet of such Person prepared as of such date in accordance with
GAAP; (f) all obligations of such Person in respect of Disqualified Capital Stock; and (g) any contingent liability of such Person
or other obligation of such Person guaranteeing or intended to guarantee any Indebtedness of any other Person in any manner, whether
directly or indirectly.

 

“Sale
of Obligor” means (i) the acquisition of the Obligor by another Person or group of related Persons by means of any transaction
or series of related transactions (including any acquisition of Obligor securities or derivative securities, reorganization, merger
or consolidation; (ii) a sale, lease or other disposition of all or more than 50% of the assets of the Obligor and its subsidiaries
taken as a whole by means of any transaction or series of related transactions, except where such sale, lease or other disposition
is to a wholly-owned subsidiary of the Obligor; or (iii) any bankruptcy, liquidation, dissolution or winding up of the Obligor
whether voluntary or involuntary.

 

    	 	7	 

    	 	 	 

    

 

Miscellaneous.

 

With
regard to all dates and time periods set forth or referred to in this Note, time is of the essence. Unless specified otherwise,
any action required hereunder to be taken within a certain number of days shall be taken within that number of calendar days (and
not Business Days), provided, however, that if the last day for taking such action falls on a weekend or a holiday in New York,
New York, the period during which such action may be taken shall be automatically extended to the next Business Day.

 

Wherever
possible, each provision of this Note shall be interpreted in such manner as to be effective and valid under applicable law, but
if any provision of this Note shall be prohibited or invalid under applicable law, such provision shall be ineffective to the
extent of such prohibition or invalidity without invalidating the remainder of such provision or remaining provisions of this
Note. No delay or failure on the part of the Holder in the exercise of any right or remedy hereunder shall operate as a waiver
thereof, nor as an acquiescence in any default, nor shall any single or partial exercise by the Holder of any right or remedy
preclude any other right or remedy.

 

The
Obligor or the Holder (i) may, but shall not be obligated to, request in writing the issuance of a replacement note to evidence
any increases or decreases in the balance of the Principal Amount pursuant to Paragraphs ‎1 and ‎4, (ii)
shall request in writing the issuance of a replacement note to evidence any permitted assignment pursuant to Paragraph ‎13,
and (iii) shall request in writing the issuance of a replacement note to evidence the mutilation, destruction, loss or theft of
this Note (or any replacement note) and the ownership thereof, in each case, such replacement note being identical in form and
substance in all respects to this Note (other than to reflect such changes as set forth in this Subparagraph ‎16(c)).
Upon any such request or requirement, the Obligor shall issue such replacement notes and the Holder(s) of this Note or such replacement
notes shall return such notes to be replaced to the Obligor, in each case marked “cancelled”, or deliver to the Obligor
a lost note indemnity form in substance satisfactory to the Obligor and, with respect to any replaced notes, such notes shall
thereafter be deemed no longer unpaid and/or outstanding hereunder.

 

After
the Principal Amount and all interest due thereon, and any other amounts at any time owed on this Note has been paid in full (or
deemed paid in full), this Note shall be surrendered to the Obligor for cancellation and shall not be reissued.

 

Notwithstanding
any business or personal relationship between the Obligor and the Holder, or any officer, director, member, manager or employee
of the Holder, that may exist or have existed, the relationship between the Obligor and the Holder under and with respect to this
Note is solely that of debtor and creditor, the Holder has no fiduciary or other special relationship with the Obligor by virtue
of this Note, the Obligor and the Holder are not partners or joint venturers, and no term or condition of any of this Note will
be construed so as to deem the relationship between the Obligor and the Holder to be other than that of debtor and creditor.

 

Paragraph
headings are for the convenience of reference only and are not a part of this Note and shall not affect its interpretation.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 	8	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, the Obligor has caused this Note to be executed as of the Effective Date.

 

	“OBLIGOR”:	 
	 	 	 
	FTE NETWORKS, INC.	 
	 	 	 
	By:		 
	Name:	Michael
    Palleschi	 
	Its:	Chief
    Executive Officer	 

 

    	 	 	 

    	 	 	 

    

 

ATTACHMENT
3

 

    	 	2	 

    	 	 	 

    

 

Series
C PROMISSORY NOTE

 

	$[___________]	April
    , 2017

 

The
undersigned, FTE Networks, Inc., a Nevada corporation (the “Obligor”), hereby promises to pay to [___________],
(the “Holder”), with an address at [__________________], subject to the terms and conditions set forth herein
and in the manner and at the place hereafter set forth, the principal sum of [___________] Dollars ($[___________] USD) (the “Principal
Amount”), which such amount shall be paid in accordance herewith, together with interest accrued thereon, computed at
the rate of three percent (3%) per annum on the outstanding, unpaid Principal Amount hereof, from April 20, 2017 (the “Effective
Date”) until the date such outstanding Principal Amount has been paid in full in accordance with the provisions of this
Series C Promissory Note (as the same may be amended, supplemented, restated or otherwise modified from time to time in accordance
with its terms, this “Note”). The Obligor and the Holder are sometimes hereinafter collectively called the
“Parties” and each individually called a “Party”. The “Obligations” include
the outstanding Principal Amount, together with any accrued and unpaid interest thereon and all fees, costs and expenses owed
to the Holder under this Note, whether incurred before or after the commencement of a proceeding under the U.S. Bankruptcy Code.

 

This
Note is being issued pursuant to that certain Stock Purchase Agreement dated as of March 9, 2017, and amended as of April 20,
2017, by and between the Obligor, Benchmark Builders, Inc., a New York corporation (“BBI”), and the stockholders
of BBI, including the Holder (as the same may be amended, supplemented, restated or otherwise modified from time to time in accordance
with its terms, the “Purchase Agreement”), pursuant to which the Obligor acquired one hundred percent (100%)
of the issued and outstanding capital stock of BBI. This Note is one of the “Series C Notes” referred to in the Purchase
Agreement. Except as defined or unless otherwise indicated herein, capitalized terms used in this Note have the same meanings
set forth in the Purchase Agreement. For purposes of this Note, the following terms have the following meanings:

 

“Monthly
Excess Cash Flow” shall mean, for each fiscal month of the Obligor, without duplication, the result of (a) the net income
of the Obligor for such month, plus (b) the sum of (i) depreciation for such month, and (ii) amortization for such month, minus
(c) the sum of (i) tax obligations (including a reserve for estimated tax liabilities), capital expenditures and other investments
made during such month, (ii) payments made on account of the Senior Debt Documents and equipment financings during such month,
and (iii) the amount (to the extent a positive number) by which accounts payable exceeds billed and unbilled accounts receivable
as of the end of such month, in each case, determined on a consolidated basis in accordance with generally accepted accounting
principles.

 

“Monthly
Excess Cash Flow Amount” shall mean, for any fiscal month of the Obligor, an amount equal to 80% of Monthly Excess Cash
Flow for such month.

 

“Senior
Debt Documents” shall mean, collectively, the Credit Agreement dated as of October 28, 2015 (as the same may be amended,
restated, supplemented, modified, replace or refinanced from time to time) among (inter alios) the Obligor and Lateral Juscom
Feeder LLC, as administrative agent (the “Senior Agent”), including all notes, guaranties, security documents
and other agreements and documents entered into in connection with the foregoing or any replacement or refinancing thereof.

 

    	 	3	 

    	 	 	 

    

 

Mandatory
Payments.

 

The
Obligor shall repay the principal balance of this Note, as follows:

 

twice
per fiscal month (plus such additional payments as the Senior Agent may approve from time to time) provided that immediately after
giving effect to any such payment, BBI has unrestricted cash and cash equivalents of not less than $4,000,000, in an amount not
to exceed a ratable portion (together with all other Series C Notes) of the Monthly Excess Cash Flow Amount for the fiscal month
most recently ended prior to the repayment date for which financial statements, and supporting calculations supporting the calculation
of the Monthly Excess Cash Flow Amount, have been delivered to and approved by the Senior Agent; and

 

within
five (5) business days of the receipt thereof, in an amount not to exceed a ratable portion (together with all other Series C
Notes) of 80% of the identifiable net cash proceeds of an offering of equity securities of the Obligor or any subsidiary thereof
(and (I) if such proceeds represent proceeds from an offering of convertible debt securities, the issuance of such convertible
debt securities is permitted in accordance with the Senior Debt Documents as in effect from time to time and (II) in the case
of any offering of equity securities by a subsidiary of the Obligor solely to the extent representing net cash proceeds received
from a Person other than the Obligor or another subsidiary of the Obligor).

 

In
addition to the Obligor’s payments made pursuant to Paragraph ‎1(a), the Obligor shall pay in full the Principal
Amount of and any accrued and unpaid interest on the Series C Notes on the earliest to occur (the “Maturity Date”)
of (a) October 20, 2018, (b) the acceleration of the maturity of this Note by the Holder upon the occurrence of an Event of Default,
and (c) a Sale of Obligor (as defined below).

 

Simultaneously
with the delivery to the Senior Agent, and in any event within twenty-five (25) days of the end of each fiscal month, the Obligor
shall deliver to the Holder a certificate executed by the Chief Financial Officer of the Obligor setting forth calculations of
the Monthly Excess Cash Flow and the Monthly Excess Cash Flow Amount for such fiscal month (the “Monthly Statements”).

 

Interest.
Subject to Paragraph ‎7(c), commencing on and including the Effective Date, this Note will bear interest at a per annum
rate equal to three percent (3%) with respect to the unpaid Principal Amount of this Note, payable in arrears on each March 31,
June 30, September 30 and December 31 by capitalizing such interest and adding it to the Principal Amount on such date, quarterly
based on the actual days outstanding and 365 day year. Accrued but unpaid interest shall be paid in cash in accordance with Paragraph
‎1.

 

Location
of Payment. The payments due under this Note shall be paid in lawful money of the United States of America in immediately
available funds and delivered to the Holder by wire transfer to an account of the Holder designated in writing by the Holder for
such purpose or, if no such account is so designated by the Holder, then by check to the Holder at the address set forth above.
If the date on which any payment is due hereunder falls on a day other than a Business Day, the payment thereof shall be extended
to the next Business Day. For the purposes of this Note, “Business Day” shall mean any day other than a Saturday,
a Sunday or a day on which banks in New York, New York are authorized or required by applicable law to be closed.

 

    	 	4	 

    	 	 	 

    

 

Prepayment.
The Obligor shall have the right to prepay all or any part of the balance of the Obligations, without penalty or premium. Any
such prepayment of the Obligations, and any amounts paid in respect of this Note pursuant to Paragraph ‎1 hereof, shall
be applied first, to fees, expenses and other amounts due under this Note (excluding principal and interest), if any, second,
to accrued and unpaid interest on the Principal Amount to the date of such prepayment, and third, to the Principal Amount.

 

Priority.
Payment of this Note shall be made pari passu with payment of interest and principal on all Series C Notes, and the Obligor
shall make all payments on the Series C Notes and shall satisfy the Obligations hereunder and thereunder in full prior to making
any payments with respect to any Series A Note or any Series B Note.

 

Events
of Default. For purposes of this Note, each of the following shall constitute an “Event of Default” hereunder:

 

the
failure of the Obligor to make any payment when due of the outstanding, unpaid principal amount on this Note, or of any amount
due under Section 2.2 of the Purchase Agreement, whether at maturity, upon acceleration or otherwise;

 

the
failure of the Obligor to make any payment of interest on this Note, or any other amounts due under this Note (other than principal)
when due, whether on a date specified in Paragraph ‎1, at maturity, upon acceleration or otherwise, or the failure
of the Obligor to perform or comply with any other duty or obligation of the Obligor under this Note, and such failure continues
for more than thirty (30) days after delivery by the Holder of written notice thereof; provided, however, that any
failure to make any such foregoing payment due to the Obligor’s exercise of its Offset Rights shall not constitute Events
of Default;

 

the
failure of the Obligor to deliver any Monthly Statements;

 

there
shall have occurred an acceleration of the stated maturity of any Indebtedness of the Obligor and/or its subsidiaries of $5,000,000
or more in aggregate principal amount, other than any acceleration resulting from the sale or other disposition of assets that
were financed with the proceeds of such Indebtedness, so long as such Indebtedness is repaid with the proceeds of such sale or
other disposition;

 

if
the Obligor shall admit in writing that it has become insolvent or cannot pay its debts generally as they become due;

 

if
the Obligor files a petition to take advantage of any bankruptcy or insolvency law;

 

    	 	5	 

    	 	 	 

    

 

an
order, judgment or decree is entered adjudicating the Obligor or any subsidiary thereof as bankrupt or insolvent; or any order
for relief with respect to the Obligor or any subsidiary thereof is entered under the Federal Bankruptcy Code or any other bankruptcy
or insolvency law; or the Obligor or any subsidiary thereof petitions or applies to any tribunal for the appointment of a custodian,
trustee, receiver or liquidator of the Obligor or any subsidiary thereof or of any substantial part of the assets of the Obligor
or any subsidiary thereof, or commences any proceeding relating to it under any bankruptcy, reorganization, arrangement, insolvency,
readjustment of debt, dissolution or liquidation law of any jurisdiction; or any such petition or application is filed, or any
such proceeding is commenced, against the Obligor or any subsidiary thereof and either (i) the Obligor or such subsidiariy by
any act indicates its approval thereof, consents thereto or acquiescence therein or (ii) such petition application or proceeding
is not dismissed within sixty (60) days;

 

if
any general assignment for the benefit of the Obligor’s creditors shall be made;

 

there
shall occurred and be continuing any default or material breach by the Obligor or its subsidiaries under this Note, any of the
Ancillary Agreements or the Purchase Agreement (collectively, the “Transaction Documents”), which default or
breach remains uncured for a period of thirty (30) days following the Obligor’s receipt of an initial written notice from
the Holder to the Obligor of the occurrence or existence of such default or breach;

 

one
or more final non-monetary judgments, orders or decrees shall be rendered against the Obligor which have, either individually
or in the aggregate, a material adverse effect upon the Obligor, and there shall be any period of thirty (30) consecutive days
during which a stay of enforcement of such judgment, order, or decree, by reason of a pending appeal or otherwise, shall not be
in effect;

 

a
final, non-appealable judgment which, in the aggregate with other outstanding final judgments against the Obligor and its subsidiaries,
exceeds $5,000,000 (exclusive of amounts reasonably anticipated to be covered by insurance) shall be rendered against the Obligor
or any subsidiary thereof and within sixty (60) days after entry thereof, such judgment is not discharged or execution thereof
stayed pending appeal, or within sixty (60) days after the expiration of such stay, such judgment is not discharged, or the initiation
of any action, suit, proceeding or investigation that questions the validity of this Note or any of the other Transaction Documents
or the right of the Obligor to enter into any of such agreements, or to consummate the transactions contemplated hereby or thereby;
or

 

any
provision of this Note or any of the other Transaction Documents shall for any reason not be now or cease to be in the future,
valid, binding and enforceable in accordance with its terms, and any of such conditions remains uncured for a period of fifteen
(15) days following the Obligor’s receipt of an initial written notice from Holder to Obligor of the occurrence or existence
of such condition.

 

For
so long as any Obligation under this Note remains outstanding (other than inchoate indemnity obligations), and in addition to
any obligations on and covenants of the Obligor made pursuant to the Transaction Documents, the Obligor covenants and agrees with
the Holder that, unless otherwise approved by the Holder in its sole discretion, the Obligor will and will cause each of its subsidiaries
to, at all times promptly notify the Holder in writing of (i) the occurrence of an Event of Default, (ii) the occurrence of any
event or condition which, with the giving of notice or the lapse of time (or both) would constitute an Event of Default and (iii)
the occurrence of any event of default under any documentation governing Indebtedness.

 

    	 	6	 

    	 	 	 

    

 

Consequences
of the Occurrence of an Event of Default.

 

If
an Event of Default set forth in Subparagraph ‎6(a) through ‎6(d), and ‎6(i) through ‎6(l)
has occurred and is continuing, which Event of Default remains uncured for a period of ten (10) days following the date of such
Event of Default (unless a different cure period is specified therein) regardless of notice to the Obligor (unless otherwise specified
therein), the Holder may, subject to the terms and conditions of this Note, declare all or any portion of the outstanding, unpaid
Principal Amount, accrued interest, and other amounts owing under this Note, due and payable and demand immediate payment thereof,
by cash or Buyer Common Stock at the election of the Holder, and, under such circumstances, if the Holder demands immediate payment
thereof, the Obligor shall immediately pay to the Holder the such amounts requested to be paid. Upon the occurrence of any Event
of Default as defined under Subparagraph ‎6(e) through ‎6(h), the outstanding, unpaid Principal Amount,
accrued interest, and other amounts owing under this Note shall automatically become immediately due and payable in full, without
presentment, demand, protest or other requirements of any kind, all of which are hereby expressly waived by the Obligor.

 

Notwithstanding
and without limiting Paragraph ‎7(a), upon the occurrence and during the continuance of any Event of Default, the Holder
may pursue any available remedy, whether at law or in equity, including, without limitation, exercising its rights under any of
the other Transaction Documents.

 

Outstanding
and unpaid Principal Amount and, to the extent permitted by applicable law, overdue interest and fees or any other amounts payable
under this Note shall bear interest from and including the due date thereof until paid at a rate per annum equal to fifteen percent
(15%) or the highest interest rate permitted by applicable law, whichever is lower (the “Default Rate”). Upon
the occurrence and during the continuance of an Event of Default, the outstanding and unpaid Principal Amount shall bear interest
at the Default Rate until such time as the Event of Default has been cured or waived.

 

The
Obligor shall pay to the Holder the reasonable attorneys’ fees and disbursements and all other reasonable out-of-pocket
costs incurred by the Holder in order to collect amounts due and owing under this Note or otherwise to enforce the Holder’s
rights and remedies hereunder.

 

Tax
Treatment. The Holder and the Obligor agree to treat this Note and the Obligations evidenced hereby as indebtedness for federal,
state, local and foreign tax purposes.

 

No
Impairment. The Obligor will not by amendment of its certificate of incorporation or bylaws, or through reorganization, consolidation,
merger, dissolution, issue or sale of securities, sale of assets or any other voluntary action, willfully avoid or seek to avoid
the observance or performance of any of the terms of this Note, but will at all times in good faith assist in the carrying out
of all such terms and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the
Holder under this Note against wrongful impairment.

 

    	 	7	 

    	 	 	 

    

 

Governing
Law and Venue. This Note shall be governed by and construed in accordance with the laws of the State of New York without regard
to principles of conflicts of laws. Section 9.5 of the Purchase Agreement is applicable to any proceeding in respect of
this Note.

 

Amendments;
Waiver. All amendments to this Note must be in writing, signed by the Holder and the Obligor. No delay or omission on the
part of the Holder in exercising any right of the Holder hereunder shall operate as a waiver of such right or of any other right
of the Holder under this Note. No waiver of any right of the Holder contained in this Note shall be effective unless in writing
and signed by the Holder, nor shall a waiver on one occasion be construed as a waiver of any such right on any future occasion.
Without limiting the generality of the foregoing, the acceptance by the Holder of any late payment shall not be deemed to be a
waiver of the Event of Default arising as a consequence thereof. The Obligor waives presentment, demand, notice, protest and all
other demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this Note.

 

Assignment.
The rights and obligations of Obligor and Holder shall be binding upon and benefit the successors and permitted assigns and transferees
of Obligor and Holder; provided, that Obligor shall not be permitted to assign this Note or its rights or obligations hereunder
without the prior written consent of the Holder in each instance, in the Holder’s sole and absolute discretion, and provided,
further, that in no event shall Holder sell, exchange, assign, pledge, hypothecate, transfer or otherwise dispose (each,
a “Transfer”) of this Note or any interest of Holder therein without Obligor’s prior written consent,
in its sole and absolute discretion. In the event of any permitted Transfer hereunder, (i) the Holder agrees to pay for all costs
associated with documenting, implementing or otherwise accommodating such Transfer, including without limitation, any cost incurred
in connection with the issuance of a replacement note as required under Subparagraph ‎15(c), (ii) each prospective
Holder shall be, and shall provide a representation that it is, entering into such Transfer for its own account and not with a
view to, or for sale in connection with, any subsequent distribution), and (iii) each prospective Holder shall become a party
to this Note (or any replacement note). Any Transfer by the Holder or assignment by the Obligor made other than in strict accordance
with this Paragraph ‎12 shall be null and void. Any permitted transferee of the Holder’s rights and obligations
under this Note in accordance with this Paragraph ‎12 shall be deemed to be the “Holder” for purposes of
this Note.

 

Notice.
All notices and other communications given or made pursuant to this Note shall be in writing and shall be deemed effectively given:
(a) upon personal delivery to the Party to be notified, (b) two (2) days after having been sent by registered or certified mail,
return receipt requested, postage prepaid, or (c) upon receipt after deposit with a nationally recognized overnight courier, specifying
next day delivery, with written verification of receipt. All communications shall be sent to the Holder at the address set forth
above, or to the Obligor in accordance with Section 9.4 of the Purchase Agreement, or to such address as may be subsequently
provided by a Party by written notice to the other Party given in accordance with this Paragraph ‎13. 

 

    	 	8	 

    	 	 	 

    

 

Certain
Definitions.

 

“Capital
Stock” means any and all shares, interests, participations, units or other equivalents (however designated) of capital
stock of a corporation, membership interests in a limited liability company, partnership interests of a limited partnership, any
and all equivalent ownership interests in a Person and any and all warrants, rights or options to purchase any of the foregoing.

 

“Disqualified
Capital Stock” shall mean any Capital Stock that, by its terms (or by the terms of any security or other Capital Stock
into which it is convertible or for which it is exchangeable) or upon the happening of any event or condition, (a) matures or
is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, (b) is redeemable at the option of the holder thereof,
in whole or in part, (c) provides for the scheduled payment of dividends in cash or (d) is or becomes convertible into or exchangeable
for Indebtedness or any other Capital Stock that would constitute Disqualified Capital Stock; provided, that if such Capital
Stock is issued pursuant to a plan for the benefit of employees or consultants of the Obligor or its subsidiaries or by any such
plan to such employees or consultants, such Capital Stock shall not constitute Disqualified Capital Stock solely because it may
be required to be repurchased by the Obligor or its subsidiaries in order to satisfy applicable statutory or regulatory obligations.

 

“Indebtedness”
means, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness
or liabilities in accordance with GAAP: (a) all indebtedness of such Person for borrowed money and all indebtedness of such Person
evidenced by bonds, debentures, notes, loan agreements or other similar instruments; (b) the maximum amount (after giving effect
to any prior drawings or reductions which may have been reimbursed) of all letters of credit (including standby and commercial),
bankers’ acceptances, bank guaranties, surety bonds, performance bonds and similar instruments issued or created by or for
the account of such Person; (c) all obligations of such Person to pay the deferred purchase price of property or services other
than trade accounts payable in the ordinary course of business; (d) indebtedness (excluding prepaid interest thereon) secured
by a Lien on property owned or being purchased by such Person (including indebtedness arising under conditional sales or other
title retention agreements and mortgage, industrial revenue bond, industrial development bond and similar financings), whether
or not such indebtedness shall have been assumed by such Person or is limited in recourse; (e) the capitalized amount of any lease
of such Person that would appear as a liability on a balance sheet of such Person prepared as of such date in accordance with
GAAP; (f) all obligations of such Person in respect of Disqualified Capital Stock; and (g) any contingent liability of such Person
or other obligation of such Person guaranteeing or intended to guarantee any Indebtedness of any other Person in any manner, whether
directly or indirectly.

 

“Sale
of Obligor” means (i) the acquisition of the Obligor by another Person or group of related Persons by means of any transaction
or series of related transactions (including any acquisition of Obligor securities or derivative securities, reorganization, merger
or consolidation; (ii) a sale, lease or other disposition of all or more than 50% of the assets of the Obligor and its subsidiaries
taken as a whole by means of any transaction or series of related transactions, except where such sale, lease or other disposition
is to a wholly-owned subsidiary of the Obligor; or (iii) any bankruptcy, liquidation, dissolution or winding up of the Obligor
whether voluntary or involuntary.

 

    	 	9	 

    	 	 	 

    

 

Miscellaneous.

 

With
regard to all dates and time periods set forth or referred to in this Note, time is of the essence. Unless specified otherwise,
any action required hereunder to be taken within a certain number of days shall be taken within that number of calendar days (and
not Business Days), provided, however, that if the last day for taking such action falls on a weekend or a holiday in New York,
New York, the period during which such action may be taken shall be automatically extended to the next Business Day.

 

Wherever
possible, each provision of this Note shall be interpreted in such manner as to be effective and valid under applicable law, but
if any provision of this Note shall be prohibited or invalid under applicable law, such provision shall be ineffective to the
extent of such prohibition or invalidity without invalidating the remainder of such provision or remaining provisions of this
Note. No delay or failure on the part of the Holder in the exercise of any right or remedy hereunder shall operate as a waiver
thereof, nor as an acquiescence in any default, nor shall any single or partial exercise by the Holder of any right or remedy
preclude any other right or remedy.

 

The
Obligor or the Holder (i) may, but shall not be obligated to, request in writing the issuance of a replacement note to evidence
any increases or decreases in the balance of the Principal Amount pursuant to Paragraphs ‎1 and ‎4, (ii)
shall request in writing the issuance of a replacement note to evidence any permitted assignment pursuant to Paragraph ‎12,
and (iii) shall request in writing the issuance of a replacement note to evidence the mutilation, destruction, loss or theft of
this Note (or any replacement note) and the ownership thereof, in each case, such replacement note being identical in form and
substance in all respects to this Note (other than to reflect such changes as set forth in this Subparagraph ‎15(c)).
Upon any such request or requirement, the Obligor shall issue such replacement notes and the Holder(s) of this Note or such replacement
notes shall return such notes to be replaced to the Obligor, in each case marked “cancelled”, or deliver to the Obligor
a lost note indemnity form in substance satisfactory to the Obligor and, with respect to any replaced notes, such notes shall
thereafter be deemed no longer unpaid and/or outstanding hereunder.

 

After
the Principal Amount and all interest due thereon, and any other amounts at any time owed on this Note has been paid in full (or
deemed paid in full), this Note shall be surrendered to the Obligor for cancellation and shall not be reissued.

 

Notwithstanding
any business or personal relationship between the Obligor and the Holder, or any officer, director, member, manager or employee
of the Holder, that may exist or have existed, the relationship between the Obligor and the Holder under and with respect to this
Note is solely that of debtor and creditor, the Holder has no fiduciary or other special relationship with the Obligor by virtue
of this Note, the Obligor and the Holder are not partners or joint venturers, and no term or condition of any of this Note will
be construed so as to deem the relationship between the Obligor and the Holder to be other than that of debtor and creditor.

 

Paragraph
headings are for the convenience of reference only and are not a part of this Note and shall not affect its interpretation.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 	10	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, the Obligor has caused this Note to be executed as of the Effective Date.

 

	“OBLIGOR”:	 
	 	 	 
	FTE NETWORKS, INC.	 
	 	 	 
	By:	 	 
	Name:
    	Michael
    Palleschi	 
	Its:
    	Chief
    Executive Officer	 

 

ATTACHMENT
3 - SERIES C NOTE/EXHIBIT KREGISTRATION
RIGHTS AGREEMENT

 

This
Registration Rights Agreement (this “Agreement”) is made and entered into as of April 20, 2017 by and among
FTE Networks, Inc., a Nevada corporation (the “Company”), and each of the several sellers signatory hereto
(each such Seller, a “Seller” and, collectively, the “Sellers”).

 

WHEREAS,
in connection with that certain Stock Purchase Agreement dated as of March 9, 2017 by and between the Company, Benchmark Builders,
Inc., a New York corporation (“Benchmark”) and the Sellers (the “Purchase Agreement”), the
Sellers have received shares of common stock in the Company, par value $0.001 per share, in the individual amounts set forth on
Schedule 2.2(b) of the Purchase Agreement (the “Purchase Agreement Shares”) as consideration, in part,
for their sale to the Company of all of the issued and outstanding capital stock in Benchmark; and

 

WHEREAS,
to induce the Sellers to enter into the Purchase Agreement, the Company has agreed to grant the Sellers certain rights with respect
to registration of Registrable Securities (as defined below) under the Securities Act pursuant to the terms of this Agreement.

 

NOW,
THEREFORE, the Company and each Seller hereby agree as follows:

 

1.
Definitions.

 

Capitalized
terms used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given such terms
in the Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings:

 

“Advice”
shall have the meaning set forth in Section 6(c).

 

“Cut-Off
Date” shall have the meaning set forth in Section 2(a).

 

“Demand
Registration Statement” shall have the meaning set forth in Section 2(b).

 

“Effectiveness
Date” means, with respect to the Initial Registration Statement or a Demand Registration Statement required to be filed
hereunder, the 120th calendar day following the Filing Date and with respect to any additional Registration Statements
which may be required pursuant to Section 2(d) or Section 3(c), the 90th calendar day following the date
on which an additional Registration Statement is required to be filed hereunder; provided, however, that in the
event the Company is notified by the Commission that one or more of the above Registration Statements will not be reviewed or
is no longer subject to further review and comments, the Effectiveness Date as to such Registration Statement shall be the 10th
calendar day following the date on which the Company is so notified if such date precedes the dates otherwise required above
(unless the Company is required to update its financial statements prior to requesting acceleration of such Registration Statement,
which will require the Company to file an amendment to such Registration Statement, in which case the Company shall file any necessary
amendment to such Registration Statement and request effectiveness thereof as soon as reasonably practicable and in no event later
than the 60th calendar day following the Filing Date); provided, further, if such Effectiveness Date
falls on a day that is not a Trading Day, then the Effectiveness Date shall be the next succeeding Trading Day.

 

“Effectiveness
Period” shall have the meaning set forth in Section 2(a).

 

“Filing
Date” means, with respect to (a) the Initial Registration Statement required hereunder, the later of (i) the 90th
calendar day following the Closing Date or (ii) the 45th calendar day following the Company’s completion of all of
its 2016 fiscal year end audits; (b) with respect to a Demand Registration Statement, the filing date specified in Section
2(b); and (c) with respect to any additional Registration Statements, which may be required pursuant to Section 2(b),
Section 2(d) or Section 3(c), the earliest practical date on which the Company is permitted by SEC Guidance to file
such additional Registration Statement related to the Registrable Securities.

 

    	 		 

    	 

    

 

“Holder”
or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities.

 

“Indemnified
Party” shall have the meaning set forth in Section 5(c).

 

“Indemnifying
Party” shall have the meaning set forth in Section 5(c).

 

“Initial
Registration Statement” means the initial Registration Statement filed pursuant to this Agreement.

 

“Losses”
shall have the meaning set forth in Section 5(a).

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated
by the Commission pursuant to the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the
terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments
and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to
be incorporated by reference in such Prospectus.

 

“Purchase
Agreement Shares” means the shares of common stock issued to the Sellers pursuant to the Purchase Agreement.

 

“Registrable
Securities” means, as of any date of determination, (a) all of the Purchase Agreement Shares and (b) any securities
issued or then issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to
the foregoing; provided, however, that any such Registrable Securities shall cease to be Registrable Securities (and the
Company shall not be required to maintain the effectiveness of any, or file another, Registration Statement hereunder with respect
thereto) for so long as (a) a Registration Statement with respect to the sale of such Registrable Securities is declared effective
by the Commission under the Securities Act and such Registrable Securities have been disposed of by the Holder in accordance with
such effective Registration Statement, (b) such Registrable Securities have been previously sold in accordance with Rule 144,
or (c) such securities become eligible for resale under Rule 144 without restriction or limitation, as determined by counsel to
the Company pursuant to a written opinion letter to such effect, addressed, delivered and acceptable to the Transfer Agent and
the affected Holders, as reasonably determined by the Company, upon the advice of counsel to the Company. For the avoidance of
doubt, any such Registrable Securities shall cease to be Registrable Securities after the Cut-Off Date.

 

“Registration
Statement” means any registration statement required to be filed hereunder pursuant to Section 2(a) and Section
2(b), including a Demand Registration Statement, and any additional registration statements contemplated by Section 2(d)
or Section 3(c), including (in each case) the Prospectus, amendments and supplements to any such registration statement
or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference
or deemed to be incorporated by reference in any such registration statement.

 

    	2 

    	 		 

    

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“Rule
415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“Selling
Stockholder Questionnaire” shall have the meaning set forth in Section 3(a).

 

“SEC
Guidance” means (i) any publicly-available written or oral guidance of the Commission staff, or any comments, requirements
or requests of the Commission staff and (ii) the Securities Act.

 

2.
Registration.

 

(a)
On or prior to each Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering the
resale of all of the Registrable Securities that are not then registered on an effective Registration Statement for an offering
to be made on a continuous basis pursuant to Rule 415. Each Registration Statement filed hereunder shall be on Form S-1, unless
expressly specified otherwise, or such other Securities Act form available to the Company for such filing. Subject to the terms
of this Agreement, the Company shall use its commercially reasonable efforts to cause a Registration Statement filed under this
Agreement (including, without limitation, under Section 3(c)) to be declared effective under the Securities Act as promptly
as possible after the filing thereof, but in any event no later than the applicable Effectiveness Date, and shall use its commercially
reasonable efforts to keep such Registration Statement continuously effective under the Securities Act until the first to occur
of: (A) the date that is three (3) years from the date the Registration Statement is declared effective by the Commission (the
“Cut-Off Date”) and (B) the date that all Registrable Securities covered by such Registration Statement (i)
have been sold, thereunder or pursuant to Rule 144, or (ii) may be sold Rule 144 without restriction or limitation, as determined
by the counsel to the Company pursuant to a written opinion letter which shall be obtained at the Company’s expense, to
such effect, addressed, delivered and acceptable to the Transfer Agent and the affected Holders (the “Effectiveness Period”).
The Company shall telephonically request effectiveness of a Registration Statement as of 5:00 p.m. Eastern Time on a Trading Day.
The Company shall immediately notify the Holders via facsimile or by e-mail of the effectiveness of a Registration Statement on
the same Trading Day that the Company telephonically confirms effectiveness with the Commission, which shall be the date requested
for effectiveness of such Registration Statement. The Company shall, by 9:30 a.m. Eastern Time on the Trading Day after the effective
date of such Registration Statement, file a final Prospectus with the Commission as required by Rule 424.

 

(b)
Demand Rights.

 

(i)
If at any time after the filing of the Initial Registration Statement and when it is eligible to use a Form S-3 registration statement,
the Company shall receive from any Holder (and the Holder remains the owner of at least thirty percent (30%) of the Registrable
Securities then outstanding) a written request or requests that the Company file a Registration Statement on Form S-3 (“Demand
Registration Statement”) with respect to all or a part of the Registrable Securities owned by such Holder or Holders,
the Company will promptly give written notice of the proposed registration, and any related qualification or compliance, to all
other Holders of Registrable Securities within ten (10) Business Days thereafter, and as soon as practicable, but in any event
within sixty (60) days after the date such request is given by the initiating Holders in accordance with this Section,
file such Demand Registration Statement as may be so requested and as would permit or facilitate the sale and distribution of
all or such portion of such Holder’s or Holders’ Registrable Securities as are specified in such request, together
with all or such portion of the Registrable Securities of any other Holder or Holders joining in such request as are specified
in a written request given within ten (10) days after receipt of such written notice from the Company.

 

    	3 

    	 		 

    

 

(ii)
Notwithstanding the foregoing obligations, if the Company furnishes to a Holder, after requesting a registration pursuant to Section
2(b)(i), a certificate signed by the Company’s chief executive officer stating that in the good faith judgment of the
Company’s board of directors it would be materially detrimental to the Company and its stockholders for such registration
statement to either become effective or remain effective, because (i) the Company has engaged or has fixed to engage within ninety
(90) days of such request in a registered public offering as to which the Company’s stockholders may include Registrable
Shares or (ii) the Company is engaged in any other activity that, in the good faith determination of the Company’s board
of directors, would be adversely affected by the requested registration to the material detriment of the Company, then the Company
shall have the right to defer taking action with respect to such filing for a period of not more than one hundred eighty (180)
days after the later of (x) the date the request of the Holder is given and (y) the effective date of such offering, the date
of commencement of such other material activity, or the date of such written opinion of the Company’s investment banker,
as applicable; provided, however, that the Company may not invoke this right more than once in any twelve (12) month period.

 

(iii)
The Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to Subsection 2(b)(i)
during the period that is thirty (30) days before the Company’s good faith estimate of the date of filing of, and ending
on a date that is ninety (90) days after the effective date of, a Company initiated registration, provided, that the Company is
actively employing in good faith commercially reasonable efforts to cause such Registration Statement to become effective; nor
shall the Company be obligated to effect, or to take any action to effect, more than one registration pursuant to Section 2(b)(i).
A registration shall not be counted as “effected” for purposes of this Subsection 2(b)(i) until such time as
the applicable Registration Statement has been declared effective by the SEC, unless the Holder withdraws its request for such
registration, elects not to pay the registration expenses therefor, and forfeits its right to one demand registration statement
pursuant to this Section, in which case such withdrawn registration statement shall be counted as “effected”
for purposes of this Section.

 

(c)
Notwithstanding the registration obligations set forth in Sections 2(a) and 2(b), if the Commission informs the
Company that all of the Registrable Securities cannot, as a result of the application of Rule 415, be registered for resale as
a secondary offering on a single registration statement, the Company agrees to promptly inform each of the Holders thereof and
use its commercially reasonable efforts to file amendments to the Initial Registration Statement as required by the Commission,
covering the maximum number of Registrable Securities permitted to be registered by the Commission, on Form S-1 or Form S-3.

 

    	4 

    	 		 

    

 

(d)
Notwithstanding any other provision of this Agreement, if the Commission or any SEC Guidance sets forth a limitation on the number
of Registrable Securities permitted to be registered on a particular Registration Statement as a secondary offering (and notwithstanding
that the Company used diligent efforts to advocate with the Commission for the registration of all or a greater portion of Registrable
Securities), the Company shall give the Holder at least five (5) Trading Days prior written notice along with the calculations
as to such Holder’s allotment as anticipated by the Company. In the event the Company amends the Initial Registration Statement
in connection with the foregoing, the Company will use its commercially reasonable efforts to file with the Commission, as promptly
as allowed by the Commission or SEC Guidance provided to the Company or to registrants of securities in general, one or more registration
statements on Form S-1, Form S-3, or such other form available to register for resale those Registrable Securities that were not
registered for resale on the Initial Registration Statement, as amended.

 

3.
Registration Procedures.

 

In
connection with the Company’s registration obligations hereunder, the Company shall:

 

(a)
Not less than five (5) Trading Days prior to the filing of each Registration Statement and not less than one (1) Trading Day prior
to the filing of any related Prospectus or any amendment or supplement thereto (including any document that would be incorporated
or deemed to be incorporated therein by reference), the Company shall (i) furnish to each Holder copies of all such documents
proposed to be filed, which documents (other than those incorporated or deemed to be incorporated by reference) will be subject
to the review of such Holders, and (ii) cause its officers and directors, counsel and independent registered public accountants
to respond to such inquiries as shall be necessary, in the reasonable opinion of respective counsel to each Holder, to conduct
a reasonable investigation within the meaning of the Securities Act. Notwithstanding the above, the Company shall not be obligated
to provide the Holders advance copies of any universal shelf registration statement registering securities in addition to those
required hereunder, or any Prospectus prepared thereto. The Company shall not file a Registration Statement or any such Prospectus
or any amendments or supplements thereto to which the Holders of 67% or more of the Registrable Securities shall reasonably object
in good faith, provided that, the Company is notified of such objection in writing no later than three (3) Trading Days after
the Holders have been so furnished copies of a Registration Statement or one (1) Trading Day after the Holders have been so furnished
copies of any related Prospectus or amendments or supplements thereto. Each Holder agrees to furnish to the Company a completed
questionnaire in the form attached to this Agreement as Annex A (a “Selling Stockholder Questionnaire”)
on a date that is not less than three (3) Trading Days prior to the Filing Date or by the end of the third (3rd) Trading
Day following the date on which such Holder receives draft materials in accordance with this Section. The Company shall furnish
to each Holder (A) a Selling Stockholder Questionnaire for completion at least ten (10) Trading Days prior to the Filing Date,
together with a request that such Selling Stockholder Questionnaire be completed and returned to the Company in a timely manner
and (B) a specific reference to this Section 3(a).

 

(b)
(i) Prepare and file with the Commission such amendments, including post-effective amendments, to a Registration Statement and
the Prospectus used in connection therewith as may be necessary to keep a Registration Statement continuously effective as to
the applicable Registrable Securities for the Effectiveness Period and prepare and file with the Commission such additional Registration
Statements in order to register for resale under the Securities Act all of the Registrable Securities, (ii) cause the related
Prospectus to be amended or supplemented by any required Prospectus supplement (subject to the terms of this Agreement), and,
as so supplemented or amended, to be filed pursuant to Rule 424, (iii) respond as promptly as reasonably possible to any comments
received from the Commission with respect to a Registration Statement or any amendment thereto and provide as promptly as reasonably
possible to the Holders true and complete copies of all correspondence from and to the Commission relating to a Registration Statement
(provided that, the Company shall excise any information contained therein which would constitute material non-public information
regarding the Company), and (iv) comply in all material respects with the applicable provisions of the Securities Act and the
Exchange Act with respect to the disposition of all Registrable Securities covered by a Registration Statement during the applicable
period in accordance (subject to the terms of this Agreement) with the intended methods of disposition by the Holders thereof
set forth in such Registration Statement as so amended or in such Prospectus as so supplemented.

 

    	5 

    	 		 

    

 

(c)
If during the Effectiveness Period, the number of Registrable Securities at any time exceeds 100% of the number of shares of Common
Stock then registered in a Registration Statement, then the Company shall file as soon as reasonably practicable, but in any case,
prior to the applicable Filing Date, an additional Registration Statement covering the resale by the Holders of not less than
the number of such Registrable Securities.

 

(d)
Notify the Holders of Registrable Securities to be sold (which notice shall, pursuant to clauses (iii) through (vi) hereof, be
accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have been made) as promptly as
reasonably possible (and, in the case of (i)(A) below, not less than one (1) Trading Day prior to such filing) and (if requested
by any such Person) confirm such notice in writing no later than one (1) Trading Day following the day (i)(A) when a Prospectus
or any Prospectus supplement or post-effective amendment to a Registration Statement is proposed to be filed, (B) when the Commission
notifies the Company whether there will be a “review” of such Registration Statement and whenever the Commission comments
in writing on such Registration Statement, and (C) with respect to a Registration Statement or any post-effective amendment, when
the same has become effective, (ii) of any request by the Commission or any other federal or state governmental authority for
amendments or supplements to a Registration Statement or Prospectus or for additional information, (iii) of the issuance by the
Commission or any other federal or state governmental authority of any stop order suspending the effectiveness of a Registration
Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose, (iv) of the
receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification
of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such
purpose, (v) of the occurrence of any event or passage of time that makes the financial statements included in a Registration
Statement ineligible for inclusion therein or any statement made in a Registration Statement or Prospectus or any document incorporated
or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to a Registration
Statement, Prospectus or other documents so that, in the case of a Registration Statement or the Prospectus, as the case may be,
it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and (vi) of
the occurrence or existence of any pending corporate development with respect to the Company that the Company believes may be
material and that, in the determination of the Company, makes it not in the best interest of the Company to allow continued availability
of a Registration Statement or Prospectus, provided, however, in no event shall any such notice contain any information
which would constitute material, non-public information regarding the Company.

 

(e)
Use its reasonable best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order stopping or suspending
the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of
any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment.

 

    	6 

    	 		 

    

 

(f)
Furnish to each Holder, without charge, at least one conformed copy of each such Registration Statement and each amendment thereto,
including financial statements and schedules, all documents incorporated or deemed to be incorporated therein by reference to
the extent requested by such Person, and all exhibits to the extent requested by such Person (including those previously furnished
or incorporated by reference) promptly after the filing of such documents with the Commission; provided, that any such item which
is available on the EDGAR system (or successor thereto) need not be furnished in physical form.

 

(g)
Subject to the terms of this Agreement, the Company hereby consents to the use of such Prospectus and each amendment or supplement
thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such
Prospectus and any amendment or supplement thereto, except after the giving of any notice pursuant to Section 3(d).

 

(h)
The Company shall cooperate with any broker-dealer through which a Holder proposes to resell its Registrable Securities in effecting
a filing with the FINRA Corporate Financing Department pursuant to FINRA Rule 5110, as requested by any such Holder.

 

(i)
Prior to any resale of Registrable Securities by a Holder, use its commercially reasonable efforts to register or qualify or cooperate
with the selling Holders in connection with the registration or qualification (or exemption from the registration or qualification)
of such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within
such states as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom)
effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition
in such jurisdictions of the Registrable Securities covered by each Registration Statement; provided, that, the Company shall
not be required to qualify generally to do business in any jurisdiction where it is not then so qualified, subject the Company
to any material tax in any such jurisdiction where it is not then so subject or file a general consent to service of process in
any such jurisdiction.

 

(j)
If requested by a Holder, cooperate with such Holder to facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be delivered to a transferee pursuant to a Registration Statement, which certificates shall be free,
to the extent permitted by the Purchase Agreement and applicable law, of all restrictive legends, and to enable such Registrable
Securities to be in such denominations and registered in such names as any such Holder may request.

 

(k)
Upon the occurrence of any event contemplated by Section 3(d), as promptly as reasonably possible under the circumstances
taking into account the Company’s good faith assessment of any adverse consequences to the Company and its stockholders
of the premature disclosure of such event, prepare a supplement or amendment, including a post-effective amendment, to a Registration
Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference,
and file any other required document so that, as thereafter delivered, neither a Registration Statement nor such Prospectus will
contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were made, not misleading. If the Company notifies
the Holders in accordance with clauses (iii) through (vi) of Section 3(d) above to suspend the use of any Prospectus until
the requisite changes to such Prospectus have been made, then the Holders shall suspend use of such Prospectus. The Company will
use its reasonable best efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable. The Company
shall be entitled to exercise its right under this Section 3(k) to suspend the availability of a Registration Statement and Prospectus,
subject to the payment of partial liquidated damages otherwise required pursuant to Section 3(d), for a period not to exceed
60 calendar days (which need not be consecutive days) in any 12-month period.

 

    	7 

    	 		 

    

 

(l)
Comply with all applicable rules and regulations of the Commission.

 

(m)
The Company shall use its reasonable best efforts to maintain eligibility for use of Form S-1 (or any successor form thereto)
for the registration of the resale of Registrable Securities.

 

(n)
The Company may require each selling Holder to furnish to the Company a certified statement as to the number of shares of Common
Stock beneficially owned by such Holder and, if required by the Commission, the natural persons thereof that have voting and dispositive
control over the shares. During any periods that the Company is unable to meet its obligations hereunder with respect to the registration
of the Registrable Securities solely because any Holder fails to furnish such information within three Trading Days of the Company’s
request, any breach that may otherwise occur because of such delay shall be suspended as to such Holder only, until such information
is delivered to the Company.

 

4.
Registration Expenses. All fees and expenses incident to the performance of or compliance with, this Agreement by the Company
shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees
and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including,
without limitation, fees and expenses of the Company’s counsel and independent registered public accountants) (A) with respect
to filings made with the Commission, (B) with respect to filings required to be made with any Trading Market on which the Common
Stock is then listed for trading, (C) in compliance with applicable state securities or Blue Sky laws reasonably agreed to by
the Company in writing (including, without limitation, fees and disbursements of counsel for the Company in connection with Blue
Sky qualifications or exemptions of the Registrable Securities) and (D) if not previously paid by the Company, with respect to
any filing that may be required to be made by any broker through which a Holder intends to make sales of Registrable Securities
with FINRA pursuant to FINRA Rule 5110, so long as the broker is receiving no more than a customary brokerage commission in connection
with such sale, (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities),
(iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) Securities Act liability
insurance, if the Company so desires such insurance, and (vi) fees and expenses of all other Persons retained by the Company in
connection with the consummation of the transactions contemplated by this Agreement.

 

5.
Indemnification.

 

(a)
Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold
harmless each Holder, the officers, directors, members, partners, agents, brokers (including brokers who offer and sell Registrable
Securities as principal as a result of a pledge or any failure to perform under a margin call of Common Stock), investment advisors
and employees (and any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack
of such title or any other title) of each of them, each Person who controls any such Holder (within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, members, stockholders, partners, agents
and employees (and any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack
of such title or any other title) of each such controlling Person, to the fullest extent permitted by applicable law, from and
against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys’ fees)
and expenses (collectively, “Losses”), as incurred, arising out of or relating to (1) any untrue or alleged
untrue statement of a material fact contained in a Registration Statement, any Prospectus or any form of prospectus or in any
amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission
of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or
supplement thereto, in light of the circumstances under which they were made) not misleading or (2) any violation or alleged violation
by the Company of the Securities Act, the Exchange Act or any state securities law, or any rule or regulation thereunder, in connection
with the performance of its obligations under this Agreement, except to the extent that (i) such untrue statements or omissions
are based upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein,
or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable
Securities or (ii) in the case of an occurrence of an event of the type specified in Section 3(d)(iii)-(vi), the use by
such Holder of an outdated, defective or otherwise unavailable Prospectus after the Company has notified such Holder in writing
that the Prospectus is outdated, defective or otherwise unavailable for use by such Holder. The Company shall notify the Holders
promptly of the institution, threat or assertion of any Proceeding arising from or in connection with the transactions contemplated
by this Agreement of which the Company is aware.

 

    	8 

    	 		 

    

 

(b)
Indemnification by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its
directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities
Act and Section 20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons (and any
other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack of such title or any
other title), to the fullest extent permitted by applicable law, from and against all Losses, as incurred, to the extent arising
out of or based solely upon: (x) such Holder’s failure to comply with any applicable prospectus delivery requirements of
the Securities Act or the plan of distribution in any Registration Statement through no fault of the Company or (y) any untrue
or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus, or in any amendment or
supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or supplement thereto,
in light of the circumstances under which they were made) not misleading (i) to the extent that such untrue statement or omission
is contained in any information so furnished in writing by such Holder to the Company expressly for inclusion in such Registration
Statement or such Prospectus or (ii) to the extent that such information relates to such Holder’s proposed method of distribution
of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in a Registration
Statement, such Prospectus or in any amendment or supplement thereto or (iii) in the case of an occurrence of an event of the
type specified in Section 3(d)(iii)-(vi), to the extent related to the use by such Holder of an outdated, defective or
otherwise unavailable Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated, defective
or otherwise unavailable for use by such Holder.

 

(c)
Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity
hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity
is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall have the right to assume
the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all
fees and expenses incurred in connection with defense thereof; provided, that, the failure of any Indemnified Party to give such
notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only)
to the extent that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to
appeal or further review) that such failure shall have materially and adversely prejudiced the Indemnifying Party.

 

An
Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof,
but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying
Party has agreed in writing to pay such fees and expenses, (2) the Indemnifying Party shall have failed promptly to assume the
defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding, or
(3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying
Party, and counsel to the Indemnified Party shall reasonably believe that a material conflict of interest is likely to exist if
the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party
notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party,
the Indemnifying Party shall not have the right to assume the defense thereof and the reasonable fees and expenses of no more
than one separate counsel shall be at the expense of the Indemnifying Party). The Indemnifying Party shall not be liable for any
settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld or delayed.
No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending
Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such
Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

 

    	9 

    	 		 

    

 

Subject
to the terms of this Agreement, all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses
to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with
this Section) shall be paid to the Indemnified Party, as incurred, within ten Trading Days of written notice thereof to the Indemnifying
Party; provided, that, the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and
expenses applicable to such actions for which such Indemnified Party is finally determined by a court of competent jurisdiction
(which determination is not subject to appeal or further review) not to be entitled to indemnification hereunder.

 

6.
Miscellaneous.

 

(a)
Remedies. In the event of a breach by the Company or by a Holder of any of their respective obligations under this Agreement,
each Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under
this Agreement, including recovery of damages, shall be entitled to specific performance of its rights under this Agreement. Each
of the Company and each Holder agrees that monetary damages would not provide adequate compensation for any losses incurred by
reason of a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action
for specific performance in respect of such breach, it shall not assert or shall waive the defense that a remedy at law would
be adequate.

 

(b)
Compliance. Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities
Act as applicable to it (unless an exemption therefrom is available) in connection with sales of Registrable Securities pursuant
to a Registration Statement.

 

(c)
Discontinued Disposition. By its acquisition of Registrable Securities, each Holder agrees that, upon receipt of a notice
from the Company of the occurrence of any event of the kind described in Section 3(d)(iii) through (vi), such Holder
will forthwith discontinue disposition of such Registrable Securities under a Registration Statement until it is advised in writing
(the “Advice”) by the Company that the use of the applicable Prospectus (as it may have been supplemented or
amended) may be resumed. The Company will use its commercially reasonable efforts to ensure that the use of the Prospectus may
be resumed as promptly as is practicable.

 

(d)
Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall
be in writing and signed by the Company and the Holders of 67% or more of the then outstanding Registrable Securities (for purposes
of clarification, this includes any Registrable Securities issuable upon exercise or conversion of any Security). If a Registration
Statement does not register all of the Registrable Securities pursuant to a waiver or amendment done in compliance with the previous
sentence, then the number of Registrable Securities to be registered for each Holder shall be reduced pro rata among all Holders
and each Holder shall have the right to designate which of its Registrable Securities shall be omitted from such Registration
Statement. Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that
relates exclusively to the rights of a Holder or some Holders and that does not directly or indirectly affect the rights of other
Holders may be given only by such Holder or Holders of all of the Registrable Securities to which such waiver or consent relates;
provided, however, that the provisions of this sentence may not be amended, modified, or supplemented except in
accordance with the provisions of the first sentence of this Section 6(d). No consideration shall be offered or paid to
any Person to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration also
is offered to all of the parties to this Agreement.

 

    	10 

    	 		 

    

 

(e)
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall
be delivered as set forth in the Purchase Agreement.

 

(f)
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns
of each of the parties and shall inure to the benefit of each Holder. The Company may not assign (except by merger) its rights
or obligations hereunder without the prior written consent of all of the Holders of the then outstanding Registrable Securities.
Each Holder may assign their respective rights hereunder only in the manner and to such Persons as may permitted under the Purchase
Agreement.

 

(g)
No Inconsistent Agreements. The Company has not entered, as of the date hereof, and the Company shall not, on or after
the date of this Agreement, enter into any agreement with respect to its securities, that would have the effect of impairing the
rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. The Company has not previously
entered into any agreement granting any registration rights with respect to any of its securities to any Person that have not
been satisfied in full.

 

(h)
Execution and Counterparts. This Agreement may be executed in two or more counterparts, all of which when taken together
shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and
delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any
signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature
shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same
force and effect as if such facsimile or “.pdf” signature page were an original thereof.

 

(i)
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall
be determined in accordance with the provisions of the Purchase Agreement.

 

(j)
Cumulative Remedies. The remedies provided herein are cumulative and not exclusive of any other remedies provided by law.

 

(k)
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use
their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result
as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention
of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any
of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

    	11 

    	 		 

    

 

(l)
Headings. The headings in this Agreement are for convenience only, do not constitute a part of the Agreement and shall
not be deemed to limit or affect any of the provisions hereof.

 

(m)
Independent Nature of Holders’ Obligations and Rights. The obligations of each Holder hereunder are several and not
joint with the obligations of any other Holder hereunder, and no Holder shall be responsible in any way for the performance of
the obligations of any other Holder hereunder. Nothing contained herein or in any other agreement or document delivered at any
closing, and no action taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership,
an association, a joint venture or any other kind of group or entity, or create a presumption that the Holders are in any way
acting in concert or as a group or entity with respect to such obligations or the transactions contemplated by this Agreement
or any other matters, and the Company acknowledges that the Holders are not acting in concert or as a group, and the Company shall
not assert any such claim, with respect to such obligations or transactions. Each Holder shall be entitled to protect and enforce
its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for any other
Holder to be joined as an additional party in any proceeding for such purpose. The use of a single agreement with respect to the
obligations of the Company contained was solely in the control of the Company, not the action or decision of any Holder, and was
done solely for the convenience of the Company and not because it was required or requested to do so by any Holder. It is expressly
understood and agreed that each provision contained in this Agreement is between the Company and a Holder, solely, and not between
the Company and the Holders collectively and not between and among Holders.

 

********************

 

(Signature
Pages Follow)

 

    	12 

    	 		 

    

 

IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the Execution Date.

 

	 	THE
    COMPANY:
	 	 	 
	 	FTE
    NETWORKS, INC.
	 	 	 
	 	By:	 
	 	Name:	Michael
    Palleschi
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	THE
    SELLERS:
	 	 	 
	 	By:	 
	 	Name:	Brian
    McMahon
	 	 	 
	 	By:	 
	 	Name:	Fred
    Sacramone

 

SIGNATURE
PAGE TO REGISTRATION RIGHTS AGREEMENT

 

    	 		 

    	 

    

 

Annex
A

 

Selling
Stockholder Notice and Questionnaire

 

FTE
Networks, Inc.

 

Selling
Stockholder Notice and Questionnaire

 

The
undersigned beneficial owners of shares of the Company’s common stock, par value $0.001 per share (the “Common
Stock”) of FTE Networks, Inc. (the “Company”), understand that the Company has filed or intends to
file with the Securities and Exchange Commission (the “Commission”) a registration statement on Form S-1 (the
“Registration Statement”) under the Securities Act of 1933, as amended (the “Securities Act”)
for the registration of the resale of the shares of Common Stock held by the undersigned (the “Registrable Securities”).
This Questionnaire is being furnished to you and other stockholders whose Common Stock will be included in the Registration Statement.
This Questionnaire seeks information necessary to complete the registration of these shares with the Commission.

 

To
sell or otherwise dispose of any Registrable Securities in the offering, a holder or beneficial owner of Registrable Securities
will be required to agree to be named as a selling stockholder in the related prospectus and execute and return this Selling Stockholder
Questionnaire.

 

Please
respond to every question unless otherwise directed. If the answer is “none” or “not applicable,”
please so state. Please include all information sought by the related question. Unless stated otherwise, answers should be given
as of the date you complete this Questionnaire. If there is any response or underlying factual matter about which you are uncertain,
please discuss the matter fully and include any additional explanation or information which you believe is helpful.

 

Certain
legal consequences arise from being named as a selling stockholder in the Registration Statement and the related prospectus. Accordingly,
holders and beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the
consequences of being named or not being named as a selling stockholder in the Registration Statement and the related prospectus.

 

Please
complete, sign, date, and email or fax this Questionnaire as soon as possible to David Lethem, CFO at FTE Networks, Inc, fax:
1-877-781-2583, email: dlethem@ftenet.com. Please call David Lethem at 239-561-9935 with any questions regarding this Questionnaire.

 

NOTICE

 

The
undersigned beneficial owner (the “Selling Stockholder”) of Registrable Securities hereby elects to register
for resale the Registrable Securities owned by it and listed below in Question 5 (unless otherwise specified under such Question
5) in the Registration Statement.

 

    	A-1 

    	 		 

    

 

The
undersigned hereby provides the following information to the Company and represents and warrants that such information is accurate:

 

QUESTIONNAIRE

 

	1.	Name.
    Full Legal Name of Selling Stockholder:

 

	 

 

	2.
    	Address
    for Notices to Selling Stockholder.

 

	 
	 
	 
	 
	 

 

	Telephone:	 
	 	 
	Fax:	 
	 	 
	Email
    address:	 
	 	 
	Contact
    Person:	 

 

	3.	Relationship
    with the Company.

 

Describe
the nature of any position, office or other material relationship the Selling Stockholder has had with the Company during the
past three years:

 

	 	 
	 	 

 

	4.	Organizational
    Structure. Please indicate or (if applicable) describe how the Selling Stockholder is organized.

 

	 	(a)	Is
    the Selling Stockholder a natural person? (If so, please mark the box and skip to Question 5.)

 

	Yes
    [  ]	No
    [  ]

 

    	A-2 

    	 		 

    

 

	 	(b)	Is
    the Selling Stockholder a reporting company under the Securities Exchange Act of 1934, as amended (the “Exchange
    Act”)? (If so, please mark the box and skip to Question 5.)

 

	Yes
    [  ]	No
    [  ]

 

	 	(c)	Is
    the Selling Stockholder a majority-owned subsidiary of a reporting company under the Exchange Act? (If so, please mark
    the box and skip to Question 5.)

 

	Yes
    [  ]	No
    [  ]

 

	 	(d)	Is
    the Selling Stockholder a registered investment company under the Investment Company Act of 1940? (If so, please mark the
    box and skip to Question 5.)

 

	Yes
    [  ]	No
    [  ]

 

If
the answer to all of the foregoing questions is “no,” please complete the following:

 

	 	(e)	Legal
    Description of Selling Stockholder:
	 	 	 
	 	 	Please
    describe the type of legal entity that the Selling Stockholder is (e.g., corporation, partnership, limited liability company,
    etc.);
	 	 	 
	 	 	 

 

	 	(f)	Please
    indicate whether the Selling Stockholder is controlled by another entity (such as a parent company, a corporate member,
    corporate shareholder, etc.) or is controlled by a natural person.

 

  Controlled by:                         Natural Person(s) [  ]              Entity [  ]  

 

If
you checked “Natural Person(s)”:

 

Please
indicate the name of the natural person(s) who has voting or investment control over the shares held by the Selling Stockholder
and the position of control that person(s) holds in or over the Selling Stockholder, then move to Question 5.

 

Name
of natural person(s):_____________________________________

 

Controlling
position in Selling Stockholder (e.g., sole member, controlling shareholder, sole stockholder, trustee, etc.): _____________ __________________________________________________________

 

If
you checked “Entity”:

 

Please
indicate the name and type of entity that controls the Selling Stockholder.

 

Name
of controlling entity: ____________________________________

 

    	A-3 

    	 		 

    

 

Type
of legal entity (e.g., corporation, partnership, limited liability company, etc.): ______________________________________________

 

Is
this entity controlled by another entity (such as a parent company, a corporate member, corporate shareholder, etc.)
or is it controlled by a natural person?

 

Controlled
by:    Natural Person(s) [  ] Entity* [  ]

 

If
you checked “Natural Person(s)”:

 

Name
of natural person(s) who controls this entity and has voting or investment control over the shares held by the Selling Stockholder
the Selling Stockholder: ____________________________________________________

 

Natural
person’s position in this entity (e.g., sole member, controlling shareholder, sole stockholder, trustee, etc.): ___________________________________________

 

*If
you answered “Entity” here, please repeat step (f) for each controlling entity moving up the corporate chain of control
until you reach the level at which there is only a natural person or persons in control (e.g., Acme LLC is controlled by ABC Corp.,
its member, which is controlled by X shareholder, its controlling shareholder). List the name of the entities along that chain
of control, the types of entity each is, the natural person(s) in control of the ultimately controlling entity, and his or her
control position over that entity in the lines below:

 

	 
	 
	 
	 

 

(Continued
on next page...)

 

    	A-4 

    	 		 

    

 

	5.	Beneficial
    Ownership of Registrable Securities:\

 

This
question covers beneficial ownership of the Company’s securities.

 

	 	(a)	Please
    state the number of shares of the Company’s Common Stock that the Selling Stockholder beneficially owns as of the date
    of this Questionnaire: 

 

	 	 
	 	 
	 	 
	 	 

 

	 	(b)	Please
    state the number of shares of the Registrable Securities that the Selling Stockholder wishes to have registered for resale
    in the Registration Statement. 
	 	 	 
	 	 	Common
    Stock: ______________________

 

	6.	Broker-Dealer
    Status:

 

	 	(a)	Is
    the Selling Stockholder a broker-dealer?

 

	Yes
    [  ]	No
    [  ]

 

	 	(b)	If
    “yes” to Question 6(a), did the Selling Stockholder receive the Registrable Securities as compensation for investment
    banking services to the Company?

 

	Yes
    [  ]	No
    [  ]

 

	 	Note:	If
    the answer to Question 6(b) is no, Commission’s staff has indicated that you should be identified as an underwriter
    in the Registration Statement.

 

	 	(c)	Is
    the Selling Stockholder an affiliate of a broker-dealer?

 

	Yes
    [  ]	No
    [  ]

 

	 	(d)	If
    the Selling Stockholder is an affiliate of a broker-dealer, does the Selling Stockholder certify that it purchased the Registrable
    Securities in the ordinary course of business, and at the time of the purchase of the Registrable Securities to be resold,
    the Selling Stockholder had no agreements or understandings, directly or indirectly, with any person to distribute the Registrable
    Securities?

 

	Yes
    [  ]	No
    [  ]

 

	 	Note:	If
    the answer to Question 6(d) no, the Commission’s staff has indicated that you should be identified as an underwriter
    in the Registration Statement.

 

	7.	Legal
    Proceedings with the Company. Is the Company a party to any pending legal proceeding in which the Selling Stockholder
    is named as an adverse party?

 

	Yes
    [  ]	No
    [  ]

 

    	A-5 

    	 		 

    

 

State
any exceptions here:

 

	 	 

 

	8.	Reliance
    on Responses. The undersigned acknowledges and agrees that the Company and its legal counsel shall be entitled to rely
    on its responses in this Questionnaire in all matters pertaining to the Registration Statement and the sale of any Registrable
    Securities pursuant to the Registration Statement.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	A-6 

    	 		 

    

 

The
undersigned agrees to promptly notify the Company of any inaccuracies or changes in the information provided herein that may occur
subsequent to the date hereof at any time while the Registration Statement remains effective.

 

By
signing below, the undersigned consents to the disclosure of the information contained herein in its answers to Questions 1 through
7 and the inclusion of such information in the Registration Statement and the related prospectus and any amendments or supplements
thereto.

 

IN
WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered
either in person or by its duly authorized agent.

 

	BENEFICIAL
    OWNER (individual)	 	BENEFICIAL
    OWNER (entity)
	 	 	 
	 	 	 
	Print
    Name	 	Name
    of Entity
	 	 	 
	 	 	 
	Signature	 	Signature
	 	 	 
	 	 	Print
    Name: 	 
	Signature
    (if Joint Tenants or Tenants in Common)	 	 
	 	 	Title:	 
	 	 	 	 	 

PLEASE
FAX OR PDF A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN THE ORIGINAL TO:

 

FTE
Networks, Inc.

 

999
Vanderbilt Beach Road, Suite 601

 

Naples,
FL 34108

 

ATTN:
David Lethem, CFO

 

FAX:
1-877-781-2583

 

Email:
dlethem@ftenet.com

 

    	A-7

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