Document:

SUBSCRIPTION
AGREEMENT

 

This
SUBSCRIPTION AGREEMENT (this “Subscription Agreement”) is made by and between FTE Networks, Inc. a Nevada corporation
(the “Company”), and the undersigned (“Subscriber”) as of the time and date this Subscription
Agreement is accepted by the Company, as set forth on the Company’s signature page hereto.

 

WHEREAS,
on April 20, 2017 the Company issued to the Subscriber a convertible promissory note with a maturity date of April 20, 2019 and
a promissory note with a maturity date April 20, 2020 (collectively, the “Notes”);

 

WHEREAS,
the Subscriber has agreed to amend the Notes to extend both of their maturity dates to July 30, 2021 (the “Extensions”);

 

WHEREAS,
in consideration for the Extensions and subject to the terms and conditions set forth in this Agreement, and pursuant to Section
4(a)(2) and/or Regulation D of the Securities Act of 1933, as amended (the “Securities Act”), the Company desires
to issue to Subscriber that number of shares of the Company’s Series [A][A-1] Preferred Stock, $0.01 par value per share
(the “Shares”) set forth on the signature page hereto, in a private placement (the “Offering”);
and

 

WHEREAS,
Subscriber understands that the Offering is being made without registration of the Shares under the Securities Act, or any securities
law of any state of the United States or of any other jurisdiction, and is being made only to “accredited investors.”

 

NOW,
THEREFORE, for and in consideration of the premises and the mutual covenants hereinafter set forth, the parties hereto do hereby
agree as follows:

 

1.
Subscription for Shares.

 

(a)
Subscription for Shares. Subject to the terms and conditions hereinafter set forth, Subscriber hereby irrevocably subscribes
for such amounts of Shares as is set forth on the signature page hereof, and the Company agrees to issue such Shares to Subscriber,
in whole or in part, at the Closing (as defined below). Subscriber acknowledges that the Shares will be subject to restrictions
on transfer as set forth in this Subscription Agreement.

 

(b)
At the Closing: (i) Subscriber shall deliver the Extensions and (ii) the Company shall deliver a share certificate representing
the Shares to Subscriber that bears an appropriate legend referring to the fact that the Shares are subject to transfer restrictions
as set forth in the Securities Act.

 

    	 

    	 

    

 

2.
Representations and Warranties of Subscriber. Subscriber represents and warrants to the Company that:

 

(a)
Investment Purpose. Subscriber (i) understands that the Shares to be received hereunder have not been, and will not be,
registered under the Securities Act or under any state securities laws, and are being issued in reliance upon federal and state
exemptions for transactions not involving any public offering, (ii) is acquiring the Shares solely for his own account for investment
purposes, and not with a view to the distribution thereof, (iii) is an “accredited investor” within the meaning of
Rule 501 of Regulation D of the Securities Act and is a sophisticated investor with knowledge and experience in business and financial
matters, (iv) has received certain information concerning the Company and has had the opportunity to obtain additional information
as desired in order to evaluate the merits and the risks inherent in holding the Shares, and (v) is able to bear the economic
risk and lack of liquidity inherent in holding the Shares. Transferor’s address set forth in the signature page to this
Agreement is his current address, and his state of residence is the same state included in such address.

 

(b)
Due Authorization and Enforcement. Subscriber has all requisite legal capacity to execute, deliver and perform this Agreement
and consummate the transactions contemplated hereby. This Agreement constitutes a legal, valid and binding obligation of the Subscriber
and is enforceable according to its terms, subject as to enforceability to general principles of equity and to bankruptcy, insolvency,
moratorium, and other similar laws affecting the enforcement of creditors’ rights generally.

 

(c)
Tax Consequences. Subscriber acknowledges that the receipt of the Shares may involve tax consequences and that the contents
of the Subscription Agreement do not contain tax advice or information. Subscriber acknowledges that Subscriber must retain Subscriber’s
own professional advisors to evaluate the tax and other consequences of an investment in the Shares. Subscriber intends to acquire
the Shares without regard to tax consequences.

 

(d)
Transfer or Resale. Subscriber understands that the Shares have not been registered under the Securities Act or the securities
laws of any state. Subscriber acknowledges that the Shares are not transferable, except with the consent of the Company. Subscriber
understands and hereby acknowledges that the Company is under no obligation to register the Shares under the Securities Act.

 

(e)
Accuracy of Representations and Warranties. The information set forth herein concerning Subscriber is true and correct.

 

3.
Representations and Warranties of the Company.

 

The
Company represents and warrants to Subscriber that:

 

(a)
Organization. The Company is organized and validly existing in good standing under the laws of the state of Nevada.

 

(b)
Due Authorization and Enforcement. The Company has all requisite power and authority to execute, deliver and perform its
obligations under this Subscription Agreement, and when executed and delivered by the Company, this Subscription Agreement will
constitute legal, valid and binding agreements of the Company enforceable against the Company in accordance with its terms, except
as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’
and contracting parties’ rights generally, and except as enforceability may be subject to general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at law).

 

    	 

    	 

    

 

(c)
Valid Issuance. The Shares have been duly authorized and, when issued in connection with the execution of the Extensions
in accordance with the terms of this Subscription Agreement, will be duly and validly issued, fully paid and nonassessable, subject
to the terms of the Company’s Amended and Restated Articles of Incorporation in the form attached as Exhibit A hereto
(the “Articles”), and no preemptive rights will exist with respect to any of the Shares or the issuance and
sale thereof.

 

(e)
Noncontravention. The execution and delivery of this Subscription Agreement and the consummation of the transactions contemplated
hereby will not conflict with or constitute a violation of, or default under (i) any material agreement to which the Company is
a party or by which it or any of its properties are bound or (ii) the organizational documents of the Company.

 

4.
Legends.

 

The
certificates representing the Shares issued pursuant to this Subscription Agreement will be imprinted with legends in substantially
the following form:

 

“THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). SUCH
SHARES MAY NOT BE SOLD, PLEDGED, OR TRANSFERRED.”

 

Certificates
may also bear any other legend language that may be determined by the Company and its counsel from time to time.

 

5.
Miscellaneous

 

(a)
Notice. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this
Subscription Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally;
(ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one (1) business day after deposit with an overnight courier service, in each case
properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be:

 

	 	If to the Company: 	FTE Networks, Inc.237 W. 35th St., Suite 806

New York, NY 10001

Phone: 877-878-8136

E-mail: FSacramone@benchmark-ny.com

Attention: Fred Sacramone, Interim Chief Executive Officer

 

    	 

    	 

    

 

	 	with a copy to:	K&L Gates LLP

200 South Biscayne Boulevard

Suite 3900

Miami, FL 33131

Facsimile: (305) 359-3306

E-mail: clayton.parker@klgates.com

Attention: Clayton E. Parker, Esq.

 

If
to Subscriber, to its residence address (or mailing address, if different) and facsimile number set forth at the end of this Subscription
Agreement, or to such other address and/or facsimile number and/or to the attention of such other person as specified by written
notice given to the Company five (5) calendar days prior to the effectiveness of such change.

 

(b)
Entire Agreement; Amendment. This Subscription Agreement, which includes the exhibits and annexes referred to herein, supersedes
all other prior oral or written agreements between Subscriber, the Company, their affiliates and persons acting on their behalf
with respect to the matters discussed herein, and constitutes the entire understanding of the parties with respect to the matters
covered herein. No provision of this Subscription Agreement may be amended or waived other than by an instrument in writing signed
by the Company and Subscriber.

 

(c)
Severability. If any provision of this Subscription Agreement shall be invalid or unenforceable in any jurisdiction, such
invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Subscription Agreement
in that jurisdiction or the validity or enforceability of any provision of this Subscription Agreement in any other jurisdiction.

 

(d)
Governing Law. This Subscription Agreement shall be governed by and construed in accordance with the laws of the state
of Nevada, without giving effect to any choice of law or conflict of law provision or rule.

 

(e)
Successors and Assigns. This Subscription Agreement shall be binding upon and inure to the benefit of the parties and their
respective successors and assigns. Subscriber shall not assign its rights hereunder without the prior written consent of the Company.

 

(f)
No Third Party Beneficiaries. This Subscription Agreement is intended for the benefit of the parties hereto and their respective
permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

(g)
Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably
request in order to carry out the intent and accomplish the purposes of this Subscription Agreement and the consummation of the
transactions contemplated hereby.

 

    	 

    	 

    

 

(h)
Legal Representation. Subscriber acknowledges that: (i) Subscriber has read this Subscription Agreement and the exhibits
and annexes referred to herein; (ii) Subscriber understands that the Company has been represented in the preparation, negotiation
and execution of the Subscription Agreement; and (iii) Subscriber understands the terms and conditions of the Subscription Agreement
and is fully aware of their legal and binding effect.

 

(i)
Expenses. Each party will bear its own costs and expenses (including legal and accounting fees and expenses) incurred in
connection with this Subscription Agreement and the transactions contemplated hereby.

 

(j)
Counterparts. This Subscription Agreement may be executed in counterparts, all of which shall be considered one and the
same agreement. The exchange of signature pages by facsimile transmission, by electronic mail in “portable document format”
(“.pdf”) form or by any other electronic means intended to preserve the original graphic and pictorial appearance
of a document shall constitute effective execution and delivery of this Agreement as to the parties.

 

[SIGNATURE
PAGES FOLLOW]

 

    	 

    	 

    

 

SUBSCRIBER
SIGNATURE PAGE TO SUBSCRIPTION AGREEMENT

 

IN
WITNESS WHEREOF, and intending to be legally bound hereby, Subscriber has caused this Subscription Agreement to be duly executed
and, by executing this signature page, hereby executes, adopts and agrees to all terms, conditions, and representations contained
in the foregoing Subscription Agreement and hereby subscribes for the Shares offered by the Company in the amount set forth below.

 

SUBSCRIBER:

 

	 	 	 
	Signature
    	 	Social
    Security Number or
	 	 	Tax
    Identification Number (if any)
	 	 	 
	 	 	 
	Print
    Name	 	 

 

Date:
July 2, 2019

 

Number
of shares of Series [A][A-1] Preferred Stock subscribed for: ___________________

 

    	 

    	 

    

 

COMPANY
SIGNATURE PAGE TO SUBSCRIPTION AGREEMENT

 

	 	Accepted
    and Agreed:
	 	 
	 	FTE
    NETWORKS, INC.
	 	 	 
	 	By:	               
	 	Name:	
	 	Title:	
	 	 	 
	 	As
    of: [12:03 p.m.][12:01 p.m.], July 2, 2019AGREEMENT TO EXCHANGE

SERIES A AND A-1 CONVERTIBLE PREFERRED STOCK FOR SERIES H PREFERRED STOCK

 

THIS AGREEMENT (this
“Agreement”) effective as of 3:02 p.m., July 2, 2019 (the “Effective Time”), by and between
[Brian McMahon][Fred Sacramone] (“Holder”), and FTE Networks, Inc., a Nevada corporation (the “Company”).

 

RECITALS

 

WHEREAS, Holder
owns [number] shares of Series A Convertible Preferred Stock, par value $0.01 per share of the Company and [number]
shares of Series A-1 Convertible Preferred Stock, par value $0.01 per share of the Company (collectively, the “Series
A Preferred Stock”); and

 

WHEREAS, Holder
is willing to exchange the Series A Preferred Stock for [number] shares of the Company’s Series H Preferred Stock,
par value $0.01 per share (the “Series H Preferred Stock”), and the Company is willing to exchange Holder’s
Series A Preferred Stock for [number] shares of Series H Preferred Stock; and

 

WHEREAS, the Parties
intend that the exchange of Series A Preferred Stock for Series H Preferred Stock contemplated by this Agreement shall qualify
as a transaction in securities exempt from registration or qualification under section 4(a)(2) of the Securities Act of 1933, as
amended, as in effect on the date of this Agreement (the “Securities Act”); and

 

WHEREAS, the Parties
intend that the transaction contemplated by this Agreement shall constitute a tax free transaction pursuant to the Internal Revenue
Code of 1986, as amended.

 

AGREEMENT

 

NOW, THEREFORE,
in consideration of the promises, covenants and agreements contained herein and intending to be legally bound, the parties agree
as follows:

 

	1.	Exchange. Each of the Company and Holder agrees that, on the date hereof, Holder shall transfer and assign to the Company [number] shares of Series A Convertible Preferred Stock of the Company and [number] shares of Series A-1 Convertible Preferred Stock of the Company and the Company shall issue to Holder in exchange therefore [number] shares of Series H Preferred Stock. The exchange of the Series A Preferred Stock for the Series H Preferred Stock will be made in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act.
	 	 
	2.	Representations and Warranties of Holder. Holder hereby represents and warrants to the Company that, as of the date of this Agreement:

 

	 	2.1.	Holder has all requisite legal capacity to execute, deliver and perform this Agreement and consummate the transactions contemplated hereby. This Agreement constitutes a legal, valid and binding obligation of Holder and is enforceable according to its terms, subject as to enforceability to general principles of equity and to bankruptcy, insolvency, moratorium, and other similar laws affecting the enforcement of creditors’ rights generally.

 

 

    	 	 	 

    	 

    

 

	 	2.2.	Holder’s execution, delivery and performance of this Agreement do not contravene, conflict with, result in a breach of or constitute a default under any agreement to which Holder is a party.
	 	 	 
	 	2.3.	Holder has title to the Series A Preferred Stock free and clear of all encumbrances (other than federal and state securities laws). Holder has full right to assign, transfer, convey, and deliver the Series A Preferred Stock to Company as contemplated by this Agreement. 

 

	3.	Representations and Warranties of Company. Company hereby represents and warrants to Holder that, as of the date of this Agreement:

 

	 	3.1.	The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada and has all requisite corporate power and authority to carry on its business as now conducted and as proposed to be conducted. The Company is duly qualified to transact business and is in good standing in each jurisdiction in which the failure to so qualify would have a material adverse effect on the business or properties of the Company and its subsidiaries taken as a whole.
	 	 	 
	 	3.2.	This Agreement and the transactions contemplated hereby have been duly and validly authorized by the Company. This Agreement has been duly executed and delivered by the Company and is a valid and binding agreement of the Company enforceable in accordance with its terms, subject as to enforceability to general principles of equity and to bankruptcy, insolvency, moratorium, and other similar laws affecting the enforcement of creditors’ rights generally. 
	 	 	 
	 	3.3.	The execution and delivery of this Agreement by the Company, and the consummation by the Company of the other transactions contemplated by this Agreement do not and will not conflict with or result in a breach by the Company of any of the terms or provisions of, or constitute a default under (i) the articles of incorporation or by-laws of the Company, (ii) any indenture, mortgage, deed of trust, or other material agreement or instrument to which the Company is a party or by which it or any of its properties or assets are bound, (iii) any existing applicable law, rule, or regulation or any applicable decree, judgment, or (iv) any order of any court, United States federal or state regulatory body, administrative agency, or other governmental body having jurisdiction over the Company or any of its properties or assets, except such conflict, breach or default which would not have a material adverse effect on the transactions contemplated herein. The Company is not in violation of any material laws, governmental orders, rules, regulations or ordinances to which its property, real, personal, mixed, tangible or intangible, or its businesses related to such properties, are subject.

 

    	 	2	 

    	 

    

 

	 	3.4.	No authorization, approval or consent of any court, governmental body, regulatory agency, self-regulatory organization, or stock exchange or market is required to be obtained by the Company for the exchange of the Series A Preferred Stock for the Series H Preferred Stock as contemplated by this Agreement, except such authorizations, approvals and consents that have been obtained. The Series H Preferred Stock, when issued, sold and delivered in accordance with the terms hereof for the consideration expressed herein, will be validly issued, and, based in part upon the representations of Holder in this Agreement, will be issued in compliance with all applicable U.S. federal and state securities laws.
	 	 	 
	 	3.5.	The Series H Preferred Stock have been properly and validly issued and are fully paid and non-assessable.
	 	 	 
	 	3.6.	Without the prior written consent of Holder, the Company will not authorize or issue any shares of Series H Preferred Stock to any person or entity other than Holder.

 

	4.	The Investment Intent. Holder (i) understands that the Series H Preferred Stock to be received hereunder have not been, and will not be, registered under the Securities Act or under any state securities laws, and are being offered and sold in reliance upon federal and state exemptions for transactions not involving any public offering, (ii) is acquiring the Series H Preferred Stock solely for his own account for investment purposes, and not with a view to the distribution thereof, (iii) is an “accredited investor” within the meaning of Rule 501 of Regulation D of the Securities Act and is a sophisticated investor with knowledge and experience in business and financial matters, (iv) has received certain information concerning the Company and has had the opportunity to obtain additional information as desired in order to evaluate the merits and the risks inherent in holding the Series H Preferred Stock, and (v) is able to bear the economic risk and lack of liquidity inherent in holding the Series H Preferred Stock. Transferor’s address set forth in the signature page to this Agreement is his current address, and his state of residence is the same state included in such address.
	 	 
	5.	Entire Agreement; Counterparts. This Agreement contains the entire agreement and understanding between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, if any, relating to such subject matter. This Agreement may be executed by the parties in multiple counterparts which may be delivered by fax or email and shall be effective as of the Effective Time when each party shall have executed and delivered a counterpart hereof, whether or not the same counterpart is executed and delivered by each party. When so executed and delivered, each such counterpart shall be deemed an original and all such counterparts shall be deemed one and the same document.
	 	 
	6.	Governing Law. This Agreement shall be governed by, and construed under, the laws of the State of Nevada, all rights and remedies being governed by said laws.
	 	 
	7.	No Third Party Beneficiaries. This Agreement is not intended to confer any rights or remedies hereunder upon, and will not be enforceable by, any other person or entity, other than the parties to this Agreement.

 

Signature Page Follows

 

    	 	3	 

    	 

    

 

IN WITNESS WHEREOF,
the parties have duly executed this Agreement as of the day and year first above written.

 

	 	[HOLDER]
	 	 
	 	 
	 	[Holder]
	 	 
	 	FTE Networks, Inc.
	 	 
	 	 
	 	Fred Sacramone
	 	President

 

    	 	4

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