Document:

INVESTOR
RIGHTS AGREEMENT

 

This
Investor Rights Agreement (this “Agreement”) is entered into as of July 2, 2019, by and between
FTE Networks, Inc., a Nevada corporation (the “Company”), on the one hand, and Lateral Juscom Feeder LLC,
a Delaware limited liability company (“Lateral”), on the other hand. Each of the Company and Lateral are a
“Party” and, collectively, the “Parties.”

 

RECITALS

 

WHEREAS,
as of the date hereof, Lateral beneficially owns 7,366,938 shares of the common stock, par value $0.001 per share (the “Common
Shares”), of the Company, or approximately 25% of the Common Shares issued and outstanding on the date hereof, including
(i) 1,500,000 Common Shares delivered by the Company to Lateral on the date hereof, (ii) 1,586,865 Common Shares underlying Series
A-1 Warrants, pursuant to that certain Series A-1 Warrant Agreement, dated as of the date hereof (the “Series A Warrant
Agreement”), and (iii) 1,586,865 Series A-2 Warrants, pursuant to that certain Series A-2 Warrant Agreement, dated as
of the date hereof (the “Series A-2 Warrant Agreement”), each to purchase one Common Share at a price of $3.00
per share, in each case on the terms and conditions set forth in the Series A-1 Warrant Agreement and Series A-1 Warrant Agreement,
as applicable;

 

WHEREAS,
prior to the date hereof, Luisa Ingargiola, Christopher Ferguson, Patrick O’Hare and Brad Mitchell resigned from the Board
of Directors of the Company (the “Board of Directors”);

 

WHEREAS,
as of the date hereof, the Company and Lateral are each party to that certain Amended and Restated Credit Agreement, dated as
of July 2, 2019 (as may be amended, modified and/or restated from time to time) among Jus-Com, Inc., an Indiana corporation, the
Company, Benchmark Builders, Inc., a New York corporation, the other Credit Parties thereto, the lenders party thereto, and Lateral
Juscom Feeder LLC, as administrative agent (the “Credit Agreement”), pursuant to which Lateral has loaned to
the Company $49,502,530.21 (plus accrued interest) as of the date hereof; and

 

WHEREAS,
the Company has agreed to execute an agreement providing certain director nominations and other governance rights, as set forth
herein.

 

NOW,
THEREFORE, the Parties agree as follows:

 

1.
Board Composition.

 

(a)
Board Composition. Within 60 days of the execution of this Agreement, the Company, acting through the Board of Directors
and all applicable committees of the Board of Directors, will use reasonable best efforts to take all necessary actions (including
by increasing the size of the Board of Directors) to cause the Board of Directors to be comprised of seven directors, (i) one
of whom shall be Mr. Fred Sacramone, (ii) one of whom shall be designated by Lateral (the “Lateral Director”)
and (iii) five of whom shall be independent directors reasonably acceptable to Lateral, and whom shall initially include Mr. James
Shiah (each, an “Independent Director”). Each Director shall, in the good faith judgment of the Governance
Committee of the Board of Directors, satisfy the Director Criteria (as defined below), except that Mr. Sacramone and the Lateral
Director may fail to qualify as “independent” within the meaning of the NYSE-American listing standards (or the applicable
requirements of such other national securities exchange on which the Common Shares are then listed for trading).

 

    	 	 	 

    	 

    

 

(b)
Lateral Board Representation. Subject to the terms and conditions of this Agreement, the Company, acting through the Board
of Directors and all applicable committees of the Board of Directors, shall take all necessary action such that, with respect
to each meeting of shareholders at which directors are to be elected, there shall be included in the slate of nominees recommended
by the Board of Directors for election as a director the individual designated by Lateral that, if elected, will result in Lateral
having one Lateral Director serving on the Board of Directors; provided, that the Company’s obligations and Lateral’s
rights under this Section 1 shall terminate upon the later of (i) repayment in full of all indebtedness owed under the
Credit Agreement and (ii) Lateral ceasing to beneficially own at least 10.0% of the Common Shares on a fully diluted basis at
such time (such later date, the “Termination Date”).

 

(c)
Resignation. Upon termination of Lateral’s right to appoint the Lateral Director as provide for in Section 1(b),
Lateral shall take all necessary action to cause the Lateral Director to tender his or her resignation.

 

(d)
Lateral Vacancy. Except as provided in Section 1(b), prior to the Termination Date, (i) Lateral shall have the exclusive
right to remove its designee from the Board of Directors, and the Company shall take all necessary action to cause the removal
of any such designee at the request of Lateral and (ii) Lateral shall have the exclusive right to designate for election to the
Board of Directors a director to fill the vacancy created by reason of death, removal or resignation of its designee to the Board
of Directors, and the Company shall take all necessary action to cause any such vacancy to be filled by a replacement director
designated by Lateral as promptly as reasonably practicable.

 

(e)
Independent Director Vacancy. In the event that there is a vacancy on the Board of Directors created by reason of death,
removal or resignation of an Independent Director prior to the repayment in full of all indebtedness owed under the Credit Agreement,
the Company shall take all necessary action to cause any such vacancy to be filled by a replacement director reasonably acceptable
to Lateral.

 

(f)
Board Size. For so long as Lateral has the right to designate a director for nomination under this Agreement and subject
to applicable laws and stock exchange regulations, the Company will take all necessary action to ensure that the number of directors
serving on the Board of Directors shall not exceed seven, except with the prior consent of Lateral.

 

    	 	2	 

    	 

    

 

(g)
Committees. Subject to applicable laws and stock exchange regulations, Lateral shall have the right to have a representative
appointed to serve on each committee of the Board of Directors for so long as Lateral has the right to designate a director for
election to the Board of Directors. Subject to applicable laws and stock exchange regulations, Lateral shall have the right to
have a representative appointed as an observer to any committee of the Board of Directors to which Lateral (i) does not elect
or is not permitted under this Agreement to have a representative appointed or (ii) is prohibited by applicable laws or stock
exchange regulations from having a representative appointed, in each case for so long as Lateral has the right to designate a
director for nomination under this Agreement.

 

(h)
Rights and Benefits. The Lateral Director will be entitled to the same director benefits as other members of the Board
of Directors, including (i) compensation for his or her service as a director and reimbursement for his or her expenses on the
same basis as all other non-employee directors of the Company, (ii) equity-based compensation grants and other benefits on the
same basis as all other non-employee directors of the Company and (iii) the same rights of indemnification and directors’
and officers’ liability insurance coverage as the other non-employee directors of the Company, as such rights may exist
from time to time; provided that in the event that the Lateral Director is an employee of Lateral Investment Management,
LLC or its affiliates, the Lateral Director shall not be entitled to compensation (including equity-based compensation grants
or other benefits) with respect to his or her service as a member of the Board of Directors or any committee thereof.

 

(i)
Executive Committees. For so long as Lateral has the right to nominate or appoint a director for election to the Board
of Directors under this Agreement, the Company agrees that it will not form new committees or subcommittees of the Board of Directors
unless such committee is formed for a specific purpose such as reviewing a transaction or proposed transaction, investigating
alleged misconduct or a possible claim, in which event such committee will be composed of such directors as the Board of Directors
determines in good faith, after consultation with counsel in a meeting in which all directors are invited to participate, would
be best suited in the circumstances.

 

(j)
Director Criteria. The Company’s obligations to nominate or appoint the Lateral Director under this Agreement shall
be subject to a good faith determination by the Governance Committee of the Board of Directors that such individual fulfills the
Director Criteria. For purposes of this Agreement, satisfaction of the “Director Criteria”shall mean that the individual in question (i) is reasonably
acceptable to the Board of Directors in the exercise of their fiduciary duties, (ii) is “independent” within the meaning
of the NYSE American listing standards (or applicable requirements of such other national securities exchange designated as the
primary market on which the Common Shares are then listed for trading), and (iii) meets the Company’s publicly disclosed
guidelines and policies with respect to service on the Board of Directors as in effect at any relevant time.

 

2.
Additional Agreements.

 

(a)
Prior to any applicable nomination or appointment under this Agreement, any prospective Lateral Director shall submit to the Company
an accurately completed copy of the Company’s standard director and officer questionnaire and an executed authorization
form to conduct a background check, as requested by the Company in connection with the appointment or election of new members
of the Board of Directors.

 

    	 	3	 

    	 

    

 

(b)
Lateral agrees that the Board of Directors or any committee thereof, in the exercise of its fiduciary duties, may cause (A) any
director who is nominated by Lateral or any Board or committee observer appointed by Lateral to recuse himself or herself from
any Board or committee meeting or portion thereof at which the Board of Directors or any such committee is evaluating and/or taking
action with respect to (i) the exercise of any of the Company’s rights or enforcement of any of the obligations under this
Agreement, (ii) any action taken in response to actions taken or proposed by Lateral or its respective Affiliates or Associates
with respect to the Company, or (iii) any proposed transaction between the Company and Lateral or its Affiliates or Associates
or (B) any Board or committee observer appointed by Lateral to recuse himself or herself from any Board or committee meeting to
the extent that a majority of the members of the Board of Directors believe in good faith after consultation with counsel that
such exclusion is necessary in order to preserve any attorney-client privilege, attorney-work product privilege or other similar
legal privilege or such attendance is otherwise prohibited by applicable law.

 

(c)
So long as Lateral has any director nominee on the Board of Directors or Board observer participating in meetings of the Board
of Directors or any committee thereof, Lateral and any such director or observer shall be bound by, and shall observe and comply
with, any corporate governance guidelines, codes of conduct or ethics, insider trading policy, public disclosure policy, related
person policy and other governance policies the Board of Directors shall from time to time adopt and as shall be applicable to
other directors of the Company.

 

(d)
Lateral agrees that prior to December 31, 2019, it shall not transfer any of its Common Shares to any person other than its affiliates
or another lender under the Credit Agreement.

 

3.
Representations and Warranties. 

 

(a)
Lateral, severally and not jointly, represents and warrants to the Company that: (i) the authorized signatory of Lateral set forth
on the signature page hereto has the power and authority to execute this Agreement and any other documents or agreements to be
entered into in connection with this Agreement and to bind Lateral thereto; (ii) this Agreement has been duly authorized, executed
and delivered by Lateral, and is a valid and binding obligation of Lateral, enforceable against it in accordance with its terms,
except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance
or similar laws generally affecting the rights of creditors and subject to general equity principles; (iii) the execution of this
Agreement, the consummation of any of the transactions contemplated hereby, and the fulfillment of the terms hereof, in each case
in accordance with the terms hereof, will not conflict with, or result in a breach or violation of the organizational documents
of Lateral as currently in effect; (iv) the execution, delivery and performance of this Agreement by Lateral does not and will
not (A) violate or conflict with any law, rule, regulation, order, judgment or decree applicable to it, or (B) result in any breach
or violation of or constitute a default (or an event which with notice or lapse of time or both would constitute such a breach,
violation or default) under or pursuant to, or result in the loss of a material benefit under, or give any right of termination,
amendment, acceleration or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement
to which it is a party or by which it is bound; (v) as of the date of this Agreement, Lateral’s ownership of Common Shares
is as set out in this Agreement; and (vi) as of the date hereof, other than the Issuance Transaction or as otherwise disclosed
in this Agreement, Lateral does not currently have, and does not currently have any right to acquire, any interest in any other
securities of the Company (or any rights, options or other securities convertible into or exercisable or exchangeable (whether
or not convertible, exercisable or exchangeable immediately or only after the passage of time or the occurrence of a specified
event) for such securities or any obligations measured by the price or value of any securities of the Company or any of its controlled
Affiliates, including any swaps or other derivative arrangements designed to produce economic benefits and risks that correspond
to the ownership of Common Shares, whether or not any of the foregoing would give rise to beneficial ownership, and whether or
not to be settled by delivery of Common Shares, payment of cash or by other consideration, and without regard to any short position
under any such contract or arrangement).

 

    	 	4	 

    	 

    

 

(b)
The Company represents and warrants to Lateral that: (i) the authorized signatory of the Company set forth on the signature page
hereto has the power and authority to execute this Agreement and any other documents or agreements to be entered into in connection
with this Agreement and to bind the Company thereto; (ii) this Agreement has been duly authorized, executed and delivered by the
Company, and is a valid and binding obligation of the Company, enforceable against it in accordance with its terms, except as
enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or
similar laws generally affecting the rights of creditors and subject to general equity principles; (iii) the execution of this
Agreement, the consummation of any of the transactions contemplated hereby, and the fulfillment of the terms hereof, in each case
in accordance with the terms hereof, will not conflict with, or result in a breach or violation of the organizational documents
of the Company as currently in effect; (iv) the execution, delivery and performance of this Agreement by the Company does not
and will not (A) violate or conflict with any law, rule, regulation, order, judgment or decree applicable to it, or (B) result
in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both would constitute
such a breach, violation or default) under or pursuant to, or result in the loss of a material benefit under, or give any right
of termination, amendment, acceleration or cancellation of, any organizational document, agreement, contract, commitment, understanding
or arrangement to which it is a party or by which it is bound.

 

4.
SEC Filings.

 

(a)
Promptly and in any event no later than four business days following the date of this Agreement, the Company will file with the
SEC a Current Report on Form 8-K reporting its entry into this Agreement, disclosing applicable items to conform to its obligations
under this Agreement and appending this Agreement as an exhibit (the “Form 8-K”). The Company will provide
Lateral and their legal counsel with a reasonable opportunity to review and comment on the Form 8-K prior to the filing with the
SEC and consider in good faith any comments of Lateral.

 

(b)
Promptly and in any event no later than two business days following the date of this Agreement, Lateral will file with the SEC
an amendment to its Schedule 13D in compliance with Section 13 of the Exchange Act reporting their entry into this Agreement,
disclosing applicable items to conform to its obligations under this Agreement and appending this Agreement as an exhibit (the
“Schedule 13D Amendment”). Lateral will provide the Company and its legal counsel with a reasonable opportunity
to review the Schedule 13D Amendment prior to it being filed with the SEC and consider in good faith any comments of the Company.

 

    	 	5	 

    	 

    

 

5.
Non-Disparagement. Subject to applicable law, Lateral covenants and agrees that, for so long as Lateral has the right to
designate a director for election to the Board of Directors under this Agreement, or if earlier, until such time as the other
Party or any of its agents, subsidiaries, affiliates, successors, assigns, officers, key employees or directors shall have breached
this Section 6, neither Lateral nor any of its respective Affiliates or designated spokespersons shall in any way publicly
disparage any other Party or such other Party’s Affiliates (including any current officer of a Party or a Party’s
subsidiaries who no longer serves in such capacity following the execution of this Agreement), directors (including any current
director of a Party or a Party’s subsidiaries who no longer serves in such capacity following the execution of this Agreement),
officers, attorneys or representatives, or any of their businesses, products or services, in a manner that would reasonably be
expected to damage the business or reputation of such other Party. Notwithstanding the foregoing, any statements made in any action,
suit or proceeding or regarding a Party’s operational or financial performance or any strategy, plans or proposals not supported
by the other Party (“Opposition Statements”) will not be deemed to be a breach of this Section 6 (subject
to, for the avoidance of doubt, any obligations of confidentiality that a member of the Board of Directors may otherwise have),
it being understood that if any Opposition Statement is made by a Party, the other Party will be permitted to publicly respond
as it determines in good faith to be appropriate. This Section 6 will not apply to any statement made in connection with
any action to enforce this Agreement.

 

6.
Specific Performance. Each of Lateral, on the one hand, and the Company, on the other hand, acknowledges and agrees that
irreparable injury to the other Party would occur in the event any of the provisions of this Agreement were not performed in accordance
with their specific terms or were otherwise breached and that such injury would not be adequately compensable by the remedies
available at law (including the payment of money damages). It is accordingly agreed that each party (as applicable, the “Moving
Party”), will each be entitled to specific enforcement of, and injunctive relief to prevent any violation of, the terms
hereof, and the other Party will not take action, directly or indirectly, in opposition to the Moving Party seeking such relief
on the grounds that any other remedy or relief is available at law. This Section 7 is not the exclusive remedy for any
violation of this Agreement.

 

7.
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement will
remain in full force and effect and will in no way be affected, impaired or invalidated. It is hereby stipulated and declared
to be the intention of the Parties that the Parties would have executed the remaining terms, provisions, covenants and restrictions
without including any of such which may be hereafter declared invalid, void or unenforceable. In addition, the Parties agree to
use their reasonable best efforts to agree upon and substitute a valid and enforceable term, provision, covenant or restriction
for any of such that is held invalid, void or enforceable by a court of competent jurisdiction.

 

    	 	6	 

    	 

    

 

8.
Notices. Any notices, consents, determinations, waivers or other communications required or permitted to be given under
the terms of this Agreement must be in writing and will be deemed to have been delivered (a) upon receipt, when delivered personally,
(b) upon confirmation of receipt, when sent by email (provided such confirmation is not automatically generated), or (c) one business
day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the Party to receive
the same. The addresses and emails for such communications:

 

If
to the Company:

 

FTE
Networks, Inc.

 

237
West 35th Street, Suite 806

New
York, NY 10001

Attention:
General Counsel

Email:
pamcfillin@ftenet.com

 

with
a copy (which will not constitute notice) to:

 

K&L
Gates

Southeast
Financial Center, Suite 3900

200
South Biscayne Boulevard

Miami,
Florida 33131-2399

Attention:
Clayton E. Parker

Email:
clayton.parker@klgates.com

 

If
to Lateral:

 

Lateral
Investment Management, LLC

400
South El Camino Real, Suite 1100,

San
Mateo, CA 94402

650-396-2200

Attention:
Dhamitha Richard de Silva, Managing Partner

Email:
Rd@lateralim.com

 

with
a copy (which will not constitute notice) to 

 

King
& Spalding LLP

1185
Avenue of the Americas

New
York, NY 10036

Attention:
Kevin E. Manz

Email:
kmanz@kslaw.com

 

    	 	7	 

    	 

    

 

9.
Applicable Law. This Agreement will be governed by and construed and enforced in accordance with the laws of the State
of New York without reference to the conflict of laws principles thereof. Each of the Parties irrevocably agrees that any legal
action or proceeding with respect to this Agreement and the rights and obligations arising hereunder, or for recognition and enforcement
of any judgment in respect of this Agreement and the rights and obligations arising hereunder brought by another Party or its
successors or assigns, will be brought and determined exclusively in the courts of the State of New York (or, if a New York state
court declines to accept jurisdiction over a particular matter, any federal court within the Southern District of New York). Each
of the Parties hereby irrevocably submits with regard to any such action or proceeding for itself and in respect of its property,
generally and unconditionally, to the personal jurisdiction of the aforesaid courts and agrees that it will not bring any action
relating to this Agreement in any court other than the aforesaid courts. Each of the Parties hereby irrevocably waives, and agrees
not to assert in any action or proceeding with respect to this Agreement, (a) any claim that it is not personally subject to the
jurisdiction of the above-named courts for any reason, (b) any claim that it or its property is exempt or immune from jurisdiction
of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment,
attachment in aid of execution of judgment, execution of judgment or otherwise), and (c) to the fullest extent permitted by applicable
legal requirements, any claim that (i) the suit, action or proceeding in such court is brought in an inconvenient forum, (ii)
the venue of such suit, action or proceeding is improper, or (iii) this Agreement, or the subject matter hereof, may not be enforced
in or by such courts.

 

10.
Counterparts. This Agreement may be executed in two or more textually identical counterparts, each of which will be considered
one and the same agreement and will become effective when counterparts have been signed by each of the Parties and delivered to
the other Party (including by means of electronic delivery or facsimile).

 

11.
Confidentiality. Any director of the Company who is an employee of Lateral, if he or she wishes to do so, subject to Section
12, may provide confidential information of the Company that such director learns in his or her capacity as a director of
the Company, including discussions or matters considered in meetings of the Board of Directors or committees of the Board of Directors
(collectively, “Company Confidential Information”), to Lateral, its controlled Affiliates and Associates and
legal counsel (collectively, “Lateral Representatives”), in each case solely to the extent that such Lateral
Representatives need to know such information in connection with Lateral’s investment in the Company; provided, however,
that such director (a) will inform such Lateral Representatives of the confidential nature of any such Company Confidential Information
and (b) will instruct such Lateral Representatives to refrain from disclosing such Company Confidential Information to anyone
(whether to any company in which Lateral has an investment or otherwise), by any means, or otherwise from using the information
in any way other than in connection with Lateral’s investment in the Company. Lateral will be responsible for maintaining
the continuing confidentiality of Company Confidential Information and compliance with Section 12.

 

12.
Securities Laws. Lateral acknowledges that it is aware, and will advise each of its representatives who are informed as
to the matters that are the subject of this Agreement, that the United States securities laws may prohibit any person who has
received from an issuer material, non-public information from purchasing or selling securities of such issuer or from communicating
such information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase
or sell such securities.

 

    	 	8	 

    	 

    

 

13.
Entire Agreement; Amendment and Waiver; Successors and Assigns; Third Party Beneficiaries; Term. This Agreement, the Credit
Agreement, the Registration Rights Agreement, the Series A-1 Warrant Agreement, and the Series A-2 Warrant Agreement, together
constitute the entire agreement of the Parties with respect to the subject matter discussed herein and together supersede all
prior agreements, arrangements, or understandings, whether written or oral, between the parties with respect to the transactions
contemplated hereby. No modifications of this Agreement can be made except in writing signed by an authorized representative of
each Party. No failure on the part of any Party to exercise, and no delay in exercising, any right, power or remedy hereunder
will operate as a waiver thereof, nor will any single or partial exercise of such right, power or remedy by such Party preclude
any other or further exercise thereof or the exercise of any other right, power or remedy. All remedies hereunder are cumulative
and are not exclusive of any other remedies provided by law. The terms and conditions of this Agreement will be binding upon,
inure to the benefit of, and be enforceable by the Parties and their respective successors, heirs, executors, legal representatives,
and permitted assigns. No Party will assign or delegate this Agreement or any rights or obligations hereunder without, with respect
to Lateral, the prior written consent of the Company, and with respect to the Company, the prior written consent of Lateral. This
Agreement is solely for the benefit of the Parties and is not enforceable by any other persons or entities. This Agreement will
terminate upon such time as Lateral no longer has the right to designate a director for election to the Board of Directors under
this Agreement, except the provisions of this Section 13 hereof, which will survive such termination, and no termination
of this Agreement will relieve a person from any liability for any prior breach.

 

14.
Interpretation. When a reference is made in this Agreement to “Sections,” or “Exhibits,” such reference
shall be to a Section of or Exhibit to this Agreement unless otherwise indicated. Defined terms used but not otherwise defined
herein shall have their respective meanings set forth in the Credit Agreement. The terms defined in the singular have a comparable
meaning when used in the plural, and vice versa. The headings contained in this Agreement are for reference purposes only and
are not part of this Agreement. Whenever the words “include,” “includes” or “including” are
used in this Agreement, they shall be deemed followed by the words “without limitation.” No rule of construction against
the draftsperson shall be applied in connection with the interpretation or enforcement of this Agreement, as this Agreement is
the product of negotiation between sophisticated parties advised by counsel. All references to “$” or “dollars”
mean the lawful currency of the United States of America. Except as expressly stated in this Agreement, all references to any
statute, rule or regulation are to the statute, rule or regulation as amended, modified, supplemented or replaced from time to
time (and, in the case of statutes, include any rules and regulations promulgated under the statute) and to any section of any
statute, rule or regulation include any successor to the section. Whenever the words “hereof”, “hereby”,
“herein” and “hereunder” and words of like import are used in this Agreement, they shall refer to this
Agreement as a whole and not to any particular provision of this Agreement.

 

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    	 	9	 

    	 

    

 

IN
WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized signatories of the Parties as of the
date first indicated above.

 

	 	FTE NETWORKS, INC.
	 	 
	 	By:	                                
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Lateral Juscom Feeder LLC
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

[Signature
Page to Investor Rights Agreement]THIS
INSTRUMENT AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE IN THE MANNER AND TO THE EXTENT SET FORTH IN THAT CERTAIN
AMENDED AND RESTATED SUBORDINATION AND INTERCREDITOR AGREEMENT (THE “SUBORDINATION AGREEMENT”) DATED AS OF
JULY 2, 2019 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 AMENDED AND RESTATED CREDIT AGREEMENT DATED AS OF JULY 2, 2019 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.

 

AMENDED
AND RESTATED CONVERTIBLE PROMISSORY NOTE

 

	$
    4,166,666.67	July
    2, 2019

 

This
Note amends and restates the Convertible Promissory Note, dated as of April 20, 2017 (the “Original Note”),
by the Obligor (as hereinafter defined) in favor of the Holder (as hereinafter defined). This Note is not being given by the Obligor
or accepted by the Holder in satisfaction of said indebtedness or as a novation with respect thereto. The undersigned, FTE Networks,
Inc., a Nevada corporation (the “Obligor”), hereby promises to pay to Fred Sacramone, (the “Holder”),
with an address at 34 Haas Road, Basking Ridge, New Jersey 07920, subject to the terms and conditions set forth herein and in
the manner and at the place hereafter set forth, the principal sum of Four Million One Hundred Sixty-Six Thousand Six Hundred
Sixty-Six and 67/100 Dollars ($4,166,666.67 USD) (the “Principal Amount”), which such amount shall be paid
in accordance herewith, together with interest accrued thereon, computed at the rate of (i) five percent (5%) per annum on the
outstanding, unpaid Principal Amount hereof, from April 20, 2017 (the “Effective Date”) to and including July
2, 2019 and (ii) eight percent (8%) per annum on the outstanding, unpaid Principal Amount hereof, from and after July 2, 2019
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 was initially 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.

 

1.
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) July 30, 2021, (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. Notwithstanding the foregoing, all
cash payments provided for herein shall be made in accordance with Section 1.8(d) of the Senior Credit Agreement.

 

2.
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.

 

3.
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.

 

4.
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.

 

    	2

    	 

    

 

5.
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.

 

(a)
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.

 

(b)
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.

 

(c)
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

    	 

    

 

(d)
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.

 

(e)
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:

 

(i)
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.

 

(ii)
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

    	 

    

 

(iii)
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).

 

(iv)
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.

 

6.
Events of Default. For purposes of this Note, each of the following shall constitute an “Event of Default”
hereunder:

 

(a)
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;

 

(b)
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;

 

(c)
[reserved];

 

(d)
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;

 

    	5

    	 

    

 

(e)
if the Obligor shall admit in writing that it cannot pay its debts generally as they become due;

 

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

 

(g)
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;

 

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

 

(i)
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, the Senior Credit Agreement 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;

 

(j)
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;

 

(k)
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

 

    	6

    	 

    

 

(l)
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.

 

7.
Consequences of the Occurrence of an Event of Default.

 

(a)
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.

 

(b)
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.

 

(c)
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.

 

(d)
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.

 

    	7

    	 

    

 

8.
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.

 

9.
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.

 

10.
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.

 

11.
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.

 

12.
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.

 

    	8

    	 

    

 

13.
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.

 

14.
Certain Definitions.

 

(a)
“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.

 

(b)
“Conversion Price Per Share” means $3.00 (subject to adjustment as provided herein).

 

(c)
“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.

 

(d)
“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.

 

    	9

    	 

    

 

15.
Miscellaneous.

 

(a)
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.

 

(b)
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.

 

(c)
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.

 

(d)
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.

 

(e)
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.

 

(f)
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:
    	Anthony
    Sirotka	 
	Its:
    	Interim
    Chief Executive Officer	 

 

[Signature
Page To $4.1M Note]

 

    	 

    	 

    

 

NOTICE
OF CONVERSION

 

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

 

TO:

 

Reference
is hereby made to that certain Amended and Restated Convertible Promissory Note, dated April 20, 2017, made by FTE Networks, Inc.
in favor of Fred Sacramone (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:	 	 

 

    	 

    	 

    

 

THIS
INSTRUMENT AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE IN THE MANNER AND TO THE EXTENT SET FORTH IN THAT CERTAIN
AMENDED AND RESTATED SUBORDINATION AND INTERCREDITOR AGREEMENT (THE “SUBORDINATION AGREEMENT”) DATED AS OF
JULY 2, 2019 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 AMENDED AND RESTATED CREDIT AGREEMENT DATED AS OF JULY 2, 2019 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.

 

AMENDED
AND RESTATED CONVERTIBLE PROMISSORY NOTE

 

	$8,333,333.33
    	July
    2, 2019 

 

This
Note amends and restates the Convertible Promissory Note, dated as of April 20, 2017 (the “Original Note”),
by the Obligor (as hereinafter defined) in favor of the Holder (as hereinafter defined). This Note is not being given by the Obligor
or accepted by the Holder in satisfaction of said indebtedness or as a novation with respect thereto. The undersigned, FTE Networks,
Inc., a Nevada corporation (the “Obligor”), hereby promises to pay to Brian McMahon, (the “Holder”),
with an address at 101 Horseshoe Road, Millneck, New York 11765, subject to the terms and conditions set forth herein and in the
manner and at the place hereafter set forth, the principal sum of Eight Million Three Hundred Thirty-Three Thousand Three Hundred
Thirty-Three and 33/100 Dollars ($8,333,333.33 USD) (the “Principal Amount”), which such amount shall be paid
in accordance herewith, together with interest accrued thereon, computed at the rate of (i) five percent (5%) per annum on the
outstanding, unpaid Principal Amount hereof, from April 20, 2017 (the “Effective Date”) to and including July
2, 2019 and (ii) eight percent (8%) per annum on the outstanding, unpaid Principal Amount hereof, from and after July 2, 2019
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 was initially 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.

 

1.
Repayment. The Obligor shall pay the Principal Amount in one (1) installment of Eight Million Three Hundred Thirty-Three
Thousand Three Hundred Thirty-Three and 33/100 Dollars ($8,333,333.33 USD) on the earliest to occur (the “Maturity Date”)
of (a) July 30, 2021, (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. Notwithstanding the foregoing, all
cash payments provided for herein shall be made in accordance with Section 1.8(d) of the Senior Credit Agreement.

 

2.
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.

 

3.
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.

 

4.
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.

 

    	2

    	 

    

 

5.
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.

 

(a)
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.

 

(b)
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.

 

(c)
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

    	 

    

 

(d)
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.

 

(e)
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:

 

(i)
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.

 

(ii)
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

    	 

    

 

(iii)
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).

 

(iv)
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.

 

6.
Events of Default. For purposes of this Note, each of the following shall constitute an “Event of Default”
hereunder:

 

(a)
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;

 

(b)
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;

 

(c)
[reserved];

 

(d)
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;

 

    	5

    	 

    

 

(e)
if the Obligor shall admit in writing that it cannot pay its debts generally as they become due;

 

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

 

(g)
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;

 

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

 

(i)
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, the Senior Credit Agreement 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;

 

(j)
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;

 

(k)
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

 

    	6

    	 

    

 

(l)
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.

 

7.
Consequences of the Occurrence of an Event of Default.

 

(a)
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.

 

(b)
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.

 

(c)
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.

 

(d)
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.

 

    	7

    	 

    

 

8.
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.

 

9.
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.

 

10.
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.

 

11.
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.

 

12.
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.

 

    	8

    	 

    

 

13.
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.

 

14.
Certain Definitions.

 

(a)
“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.

 

(b)
“Conversion Price Per Share” means $3.00 (subject to adjustment as provided herein).

 

(c)
“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.

 

(d)
“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.

 

    	9

    	 

    

 

15.
Miscellaneous.

 

(a)
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.

 

(b)
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.

 

(c)
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.

 

(d)
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.

 

(e)
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.

 

(f)
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:
    	Anthony
    Sirotka	 
	Its:
    	Interim
    Chief Executive Officer	 

 

[Signature
Page To $8.3M Note] 

 

    	 

    	 

    

 

NOTICE
OF CONVERSION

 

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

 

TO:

 

Reference
is hereby made to that certain Amended and Restated Convertible Promissory Note, dated April 20, 2017, made by FTE Networks, Inc.
in favor of Brian McMahon (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:

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