Document:

Exhibit
10.4

 

October
10, 2019

 

STANDSTILL
AGREEMENT

 

Fred
Sacramone

237
West 35th Street

Suite
806

New
York, NY 10001

 

Dear
Fred:

 

In
connection with the transactions contemplated by that certain Proposal For Surrender Of Collateral And Strict Foreclosure (the
“Proposal”), dated as of October 10, 2019, to FTE Networks, Inc. (“FTE”), and certain other parties
named therein, from Lateral Juscom Feeder LLC, in order to induce FTE to enter into the Proposal and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, you hereby agree as set forth herein.

 

Annex
A sets forth definitions for capitalized terms used in this letter agreement that are not defined in the body of this agreement.
Those definitions are a part of this agreement.

 

1.
You agree that, for a period of four (4) months from the date hereof (unless earlier terminated), neither you nor your Affiliates
(as defined below) nor any other person acting on your or their behalf will, in any manner, directly or indirectly, without the
prior written consent of FTE’s Board of Directors or an authorized committee thereof, in each case, except as contemplated
by the Proposal: (i) acquire, offer to acquire, or agree to acquire, directly or indirectly, by purchase or otherwise, any voting
securities or direct or indirect rights to acquire any voting securities of FTE or any subsidiary or affiliate thereof, or of
any successor to or person in control of FTE, or any assets of FTE or any subsidiary, division or affiliate thereof or of any
such successor or controlling person; (ii) make, or in any way participate in, directly or indirectly, any “solicitation”
of “proxies” to vote (as such terms are used in the rules of the Securities and Exchange Commission), or seek to influence
or control any person with respect to the voting of any voting securities of FTE; (iii) make any public announcement with respect
to, or submit a proposal for, or offer of (with or without conditions) any extraordinary transaction involving FTE or any of its
securities or assets; (iv) form, join or in any way participate in a “group” (as defined in Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended) with respect to any securities of FTE; (v) otherwise act, alone or in concert with
others, to seek to control or influence the management, Board of Directors or policies of FTE; (vi) publicly disclose any intention,
plan or arrangement inconsistent with the foregoing; (vii) take any action that would reasonably be expected to require FTE to
make a public announcement regarding the matters set forth described above; or (viii) file any application with any regulatory
authority seeking approval or authority in connection with any action described above. The provisions of this paragraph will not
be applicable in the event (i) any person shall have acquired or become the owner of, or entered into a definitive agreement with
FTE to acquire or become the owner of (in each case whether by tender offer, merger, consolidation, business combination or otherwise),
more than 50% of the voting securities of FTE or assets of FTE representing more than 50% of its consolidated earning power or
(ii) a third party makes a tender or exchange offer for more than 50% of the outstanding voting securities of FTE, which tender
offer FTE’s Board of Directors has not within ten business days of commencement recommended that stockholders of FTE reject,
provided that the provisions of this paragraph shall again be applicable in accordance with their terms upon the termination of
such definitive agreement (in the case of clause (i)) or the withdrawal or termination of the tender offer or rejection thereof
by FTE’s Board of Directors (in the case of clause (ii)).

 

2.
You agree that, without the prior written consent of FTE’s Board of Directors or an authorized committee thereof you will
not, Sell or Offer to Sell any Shares or Related Securities currently or hereafter owned by you, of record or beneficially (as
defined in Rule 13d-3 under the Exchange Act), except as contemplated by the Proposal.

 

3.
FTE agrees that it will use commercially reasonable efforts to take all customary actions reasonably requested by you to enable
you to sell the common stock of FTE held by you within the limitation of the exemption provided by Rule 144.

 

4.
This Agreement may be executed in two or more counterparts, each of which will be deemed to be an original copy of this Agreement,
and all of which, when taken together, shall be deemed to constitute one and the same agreement. The exchange of copies of this
Agreement and of signature pages by facsimile transmission or electronic mail in .pdf or similar format shall constitute effective
execution and delivery of this Agreement as to the parties. For purposes of this Agreement any reference to “written”
or “in writing” shall be deemed to include correspondence by signed letter or facsimile or by e-mail. 

 

5.
This Agreement (other than Paragraph 3 which shall survive the termination of this Agreement and remain in full force and effect
as long as you own shares of common stock of FTE) shall terminate on the date that all Shares currently or hereafter owned by
you, of record or beneficially, have been conveyed and transferred to FTE or its designee.

 

    	 

    	Fred Sacramone
October
                                         10, 2019
Page 2

    

 

If
you are in agreement with the foregoing, please so indicate by signing, dating and returning one copy of this Agreement, which
will constitute our agreement with respect to the matters set forth herein. 

 

Very
truly yours,

 

	FTE
    Networks, Inc.	 
	 	 	 
	By:	/s/
    Maria Fernandez	 
	 	Maria Fernandez	 
	 	Corporate Secretary	 
	 	 	 
	Confirmed and Agreed to:	 
	 	 	 
	By:	/s/
    Fred Sacramone	 
	 	FRED SACRAMONE	 

 

    	 

    	Fred Sacramone
October
                                         10, 2019
Page 3

    

 

ANNEX
A

 

For
purposes of the letter agreement to which this Annex A is attached and of which it is made a part:

 

“Affiliate”
shall have the meaning set forth in Rule 12b-2 promulgated by the Securities and Exchange Commission under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”).

 

“Call
Equivalent Position” shall have the meaning set forth in Rule 16a-1(b) under the Exchange Act.

 

“Put
Equivalent Position” shall have the meaning set forth in Rule 16a-1(h) under the Exchange Act.

 

“Related
Securities” shall mean any options or warrants or other rights to acquire Shares or any securities exchangeable or exercisable
for or convertible into Shares, or to acquire other securities or rights ultimately exchangeable or exercisable for or convertible
into Shares.

 

“Sell
or Offer to Sell” shall mean to:

 

	 	–	sell, offer to sell, contract
    to sell or lend,
	 	 	 
	 	–	effect any short sale or establish or increase
    a Put Equivalent Position or liquidate or decrease any Call Equivalent Position
	 	 	 
	 	–	pledge, hypothecate or grant any security interest
    in, or
	 	 	 
	 	–	in any other way transfer or dispose of,

 

in
each case whether effected directly or indirectly.

 

“Shares”
shall mean shares of Series H Preferred Stock of FTE.

 

Capitalized
terms not defined in this Annex A shall have the meanings given to them in the body of this lock-up agreement.Exhibit
10.5

 

October
10, 2019

 

STANDSTILL
AGREEMENT

 

Brian
McMahon

237
West 35th Street

Suite
806

New
York, NY 10001

 

Dear
Brian:

 

In
connection with the transactions contemplated by that certain Proposal For Surrender Of Collateral And Strict Foreclosure (the
“Proposal”), dated as of October 10, 2019, to FTE Networks, Inc. (“FTE”), and certain other parties
named therein, from Lateral Juscom Feeder LLC, in order to induce FTE to enter into the Proposal and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, you hereby agree as set forth herein.

 

Annex
A sets forth definitions for capitalized terms used in this letter agreement that are not defined in the body of this agreement.
Those definitions are a part of this agreement.

 

1.
You agree that, for a period of four (4) months from the date hereof (unless earlier terminated), neither you nor your Affiliates
(as defined below) nor any other person acting on your or their behalf will, in any manner, directly or indirectly, without the
prior written consent of FTE’s Board of Directors or an authorized committee thereof, in each case, except as contemplated
by the Proposal: (i) acquire, offer to acquire, or agree to acquire, directly or indirectly, by purchase or otherwise, any voting
securities or direct or indirect rights to acquire any voting securities of FTE or any subsidiary or affiliate thereof, or of
any successor to or person in control of FTE, or any assets of FTE or any subsidiary, division or affiliate thereof or of any
such successor or controlling person; (ii) make, or in any way participate in, directly or indirectly, any “solicitation”
of “proxies” to vote (as such terms are used in the rules of the Securities and Exchange Commission), or seek to influence
or control any person with respect to the voting of any voting securities of FTE; (iii) make any public announcement with respect
to, or submit a proposal for, or offer of (with or without conditions) any extraordinary transaction involving FTE or any of its
securities or assets; (iv) form, join or in any way participate in a “group” (as defined in Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended) with respect to any securities of FTE; (v) otherwise act, alone or in concert with
others, to seek to control or influence the management, Board of Directors or policies of FTE; (vi) publicly disclose any intention,
plan or arrangement inconsistent with the foregoing; (vii) take any action that would reasonably be expected to require FTE to
make a public announcement regarding the matters set forth described above; or (viii) file any application with any regulatory
authority seeking approval or authority in connection with any action described above. The provisions of this paragraph will not
be applicable in the event (i) any person shall have acquired or become the owner of, or entered into a definitive agreement with
FTE to acquire or become the owner of (in each case whether by tender offer, merger, consolidation, business combination or otherwise),
more than 50% of the voting securities of FTE or assets of FTE representing more than 50% of its consolidated earning power or
(ii) a third party makes a tender or exchange offer for more than 50% of the outstanding voting securities of FTE, which tender
offer FTE’s Board of Directors has not within ten business days of commencement recommended that stockholders of FTE reject,
provided that the provisions of this paragraph shall again be applicable in accordance with their terms upon the termination of
such definitive agreement (in the case of clause (i)) or the withdrawal or termination of the tender offer or rejection thereof
by FTE’s Board of Directors (in the case of clause (ii)).

 

2.
You agree that, without the prior written consent of FTE’s Board of Directors or an authorized committee thereof you will
not, Sell or Offer to Sell any Shares or Related Securities currently or hereafter owned by you, of record or beneficially (as
defined in Rule 13d-3 under the Exchange Act), except as contemplated by the Proposal.

 

3.
FTE agrees that it will use commercially reasonable efforts to take all customary actions reasonably requested by you to enable
you to sell the common stock of FTE held by you within the limitation of the exemption provided by Rule 144.

 

4.
This Agreement may be executed in two or more counterparts, each of which will be deemed to be an original copy of this Agreement,
and all of which, when taken together, shall be deemed to constitute one and the same agreement. The exchange of copies of this
Agreement and of signature pages by facsimile transmission or electronic mail in .pdf or similar format shall constitute effective
execution and delivery of this Agreement as to the parties. For purposes of this Agreement any reference to “written”
or “in writing” shall be deemed to include correspondence by signed letter or facsimile or by e-mail. 

 

5.
This Agreement (other than Paragraph 3 which shall survive the termination of this Agreement and remain in full force and effect
as long as you own shares of common stock of FTE) shall terminate on the date that all Shares currently or hereafter owned by
you, of record or beneficially, have been conveyed and transferred to FTE or its designee.

 

    	 

    	Brian McMahon
October
                                         10, 2019
Page 2

    

 

If
you are in agreement with the foregoing, please so indicate by signing, dating and returning one copy of this Agreement, which
will constitute our agreement with respect to the matters set forth herein. 

 

Very
truly yours,

 

	FTE
    Networks, Inc.	 
	 	 	 
	By:	/s/
    Maria Fernandez	 
	 	Maria
    Fernandez	 
	 	Corporate
    Secretary	 
	 	 	 
	Confirmed
    and Agreed to:	 
	 	 	 
	By:	/s/
    Brian McMahon	 
	 	BRIAN
                                         MCMAHON

	 

 

    	 

    	Brian McMahon
October
                                         10, 2019
Page 3

    

 

ANNEX
A

 

For
purposes of the letter agreement to which this Annex A is attached and of which it is made a part:

 

“Affiliate”
shall have the meaning set forth in Rule 12b-2 promulgated by the Securities and Exchange Commission under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”).

 

“Call
Equivalent Position” shall have the meaning set forth in Rule 16a-1(b) under the Exchange Act.

 

“Put
Equivalent Position” shall have the meaning set forth in Rule 16a-1(h) under the Exchange Act.

 

“Related
Securities” shall mean any options or warrants or other rights to acquire Shares or any securities exchangeable or exercisable
for or convertible into Shares, or to acquire other securities or rights ultimately exchangeable or exercisable for or convertible
into Shares.

 

“Sell
or Offer to Sell” shall mean to:

 

	 	–	sell,
    offer to sell, contract to sell or lend,
	 	 	 
	 	–	effect
    any short sale or establish or increase a Put Equivalent Position or liquidate or decrease any Call Equivalent Position
	 	 	 
	 	–	pledge,
    hypothecate or grant any security interest in, or
	 	 	 
	 	–	in
    any other way transfer or dispose of,

 

in
each case whether effected directly or indirectly.

 

“Shares”
shall mean shares of Series H Preferred Stock of FTE.

 

Capitalized
terms not defined in this Annex A shall have the meanings given to them in the body of this lock-up agreement.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00300-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00300-of-00352.parquet"}]]