Document:

EMPLOYMENT AGREEMENT

 

 

As of the 2nd day of
June 2014 (the “Effective Date”), this Employment Agreement (“Agreement”) is entered into by and between
FTE Networks, Inc. (the “Company”), and David Lethem (the “Employee”).

 

 

 

RECITALS

 

A. The Employee has agreed to serve as
Chief Financial Officer, for the Company and in such other capacities as are designated by the Company;

 

B. The Company and
Employee desire to enter into this Agreement setting forth the terms and conditions of Employee’s employment with the Company.

 

NOW, THEREFORE, in
consideration of the mutual promises and covenants set forth herein, the parties agree as follows:

 

		1.	Term: The Company shall employ Employee, and Employee hereby accepts employment
with the Company, upon the terms and conditions set forth in this Agreement for the period beginning on the Effective Date and
ending on the second anniversary thereafter, unless earlier terminated as provided herein (the “Term”). If this Agreement
has not been terminated as provided herein, this Agreement shall be extended on a year-to-year basis until terminated by either
party by providing thirty (30) days written notice to the other party.

 

		2.	Services and Exclusivity of Services: During the Term of this Agreement, Employee
shall devote his full business time, energy and ability to the matters related thereto, in order to perform duties as assigned
by senior Employees and the Company’s board of directors (the “Board”). Employee shall use Employee’s best
efforts and abilities to promote the Company’s interests and shall perform the services contemplated by this Agreement in
accordance with policies established by and under the direction of senior Employees and the Board. Employee agrees to serve without
additional remuneration in such Employee capacities for one or more Affiliates (as that term is defined herein) of the Company
as the Board may from time to time request. Employee agrees to faithfully and diligently promote the business, affairs and interests
of the Company and its Affiliates.

 

Without the
prior express written authorization of the Board, Employee shall not, directly or indirectly, during the Term of this Agreement
engage in any activity competitive with or adverse to the Company’s business, whether alone, as a partner, officer, director,
employee or significant investor of or in any other entity. (An investment of greater than 5% of the outstanding capital or equity
securities of an entity shall be deemed significant for these purposes.)

 

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Employee warrants and represents
to the Company that Employee (a) is not, to Employee’s knowledge, violating and will not violate any contractual, legal,
or fiduciary obligations or burdens to which Employee is subject as of the Effective Date by entering into this Agreement or providing
services under the Agreement’s terms; (b) is, to Employee’s knowledge, under no contractual, legal, or fiduciary obligation
or burden that will interfere with his ability to perform services under the Agreement’s terms; and (c) has no bankruptcies,
convictions, disputes with regulatory agencies, or other discloseable or disqualifying events that would have any material impact
on the Company or any Affiliate of the Company, or their ability to conduct securities offerings.

 

		3.	Duties and Responsibilities: During the Term, Employee shall serve as the Company’s
President of OSP and Wireless Business Units and in such other capacity or capacities as the Board shall reasonably delegate. Employee’s
duties shall include, without limitation, overall responsibility and authority, subject to authorities and limitations as established
by the Board, to implement and continue to develop the business strategies of the Company. In the performance of Employee’s
duties, Employee shall report to and shall be subject to the direction of the Company’s senior Employees and Board.

 

		4.	Compensation: During the Term of this Agreement, the Company shall pay Employee
a bi-weekly salary of FOUR THOUSAND SIX HUNDRED FIFTEEN DOLLARS and THRTY EIGHT CENTS ($4,615.38), less required withholdings (the
“Base Salary”), pursuant to the Company’s normal payroll practices.

 

		5.	Bonus: In addition to the Base Salary, during the Term, Employee will be eligible
to participate in the Company bonus program. Bonus compensation earned and payable pursuant to this Section 5, if any, shall be
paid in accordance with the Company’s customary practices.

 

		6.	Restricted Stock/Options: The Company shall recommend that during the Term Employee
receive, or have options for, restricted shares of common stock (the “Shares”) in the Company. The Company shall recommend
to the board that said Shares or options for Shares vest or become effective, provided this Agreement is in effect, as follows:
(1) 50,000 Shares within 60 days of the Effective Date of this Agreement; (2) 50,000 Shares within 6 months of the Effective Date
of this Agreement, (3) 50,000 Shares within 1 year of the Effective Date of this Agreement. The rights of Employee for the Shares
are subject to approval of, and terms and conditions to be determined by, the FTE Board of Directors and Compensation Committee.

 

All unvested Shares shall be
automatically forfeited upon termination of this Agreement; provided, however, that if (i) Company terminates this Agreement Without
Cause or (ii) Employee terminates this Agreement For Good Reason, Employee shall be entitled to receive a pro rata portion of the
Shares that Employee would have earned at the end of the then-current month. All shares that the Employee receives as a result
of this Agreement will be non-transferable, restricted shares and the Employee agrees, upon request of Company, to sign all documents
and take all actions reasonably requested by the Company in order to effectuate the award of such shares including, without limitation,
signing a written acknowledgement agreeing to be bound by the Company’s shareholders’ agreement. Such shares shall
be subject to adjustments such as stock splits and other modifications such that the number of shares stated above shall adjust
according to such forward or reverse splits in the Company’s stock.

 

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		7.	Additional Benefits: The Company shall provide Employee with the following benefits
during the Term:

 

		a)	Employee Benefits. Employee shall be entitled to participate in the benefit plans provided
by the Company for all employees generally, and for the Company’s Employee employees, including the availability of health
and dental insurance benefits. The Company shall be entitled to modify, amend or terminate these benefit plans in its sole discretion
at any time, provided such modification, amendment or termination is applicable to all employees generally. Any reimbursement of
expenses made under this Agreement shall only be made for eligible expenses incurred during the Term of this Agreement.

 

		b)	Vacation. Employee shall be entitled to three (3) weeks paid vacation in accordance with
the policies, practices and procedures established from time to time by the Company; provided. Any vacation time not used during
a calendar year may not be used during any subsequent period.

 

		c)	Business Expenses. During the Term of this Agreement, the Company shall reimburse Employee
promptly for business expenditures made and substantiated in accordance with policies, practices and procedures established from
time to time by the Company and incurred in the pursuit and furtherance of the Company’s business and good will.

 

 

		8.	Termination: The employment relationship between Employee and the Company created
under this Agreement and all obligations hereunder (except the obligations contained in Sections 9, 10, 11, 12, and 13, which shall
survive any termination hereunder) shall terminate before the expiration of the Term of this Agreement upon the occurrence of any
one of the following events:

 

		a)	Death or Disability of Employee. The death or disability of Employee. For the purposes of
this Agreement, disability shall mean the absence of Employee performing Employee’s duties with the Company on a full-time
basis for a period of six months, as a result of incapacity due to mental or physical illness which is determined to be total and
permanent by a physician selected by the Company or its insurers. If Employee shall become disabled, Employee’s employment
may be terminated by written notice from the Company to Employee.

 

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		b)	Termination by the Company for Cause. The Company may terminate Employee’s employment
hereunder for Cause (as such term is defined herein) at any time after providing written notice to Employee. For purposes of this
Agreement, the term “Cause” shall mean any of the following: (i) habitual failure of, or neglect by, Employee to perform
his duties pursuant to this Agreement; (ii) misconduct in connection with the performance of Employee’s duties, including,
without limitation, misappropriation of funds or property, or any violation of law or regulations to which Employee is subject;
(iii) commission by Employee of an act relating to moral turpitude, dishonesty, theft or unethical business conduct; and (iv) a
material breach by Employee of this Agreement.

 

		c)	Termination by the Company Without Cause. Subject to the Company’s obligations pursuant
to Section 9 of this Agreement, the Company may terminate this Agreement and Employee’s employment under this Agreement without
Cause at any time upon thirty days written notice to Employee, during which period Employee shall not be required to perform any
services for the Company other than to assist the Company in training his successor and generally preparing for an orderly transition.

 

		d)	Termination by Employee Without Good Reason. Employee may terminate this Agreement and his
employment under this Agreement without Good Reason (as such term is defined herein) at any time by giving the Company thirty days
prior written notice of the termination. Following any such notice, the Company may reduce or remove any and all of Employee’s
duties, positions and titles with the Company, and any such reduction or removal shall not constitute a termination by the Company
without Cause.

 

		e)	Termination by Employee With Good Reason. Employee may terminate this Agreement and his
employment under this Agreement with Good Reason by giving the Company thirty days prior written notice of the termination. For
purposes of this Agreement, the term “Good Reason” shall mean the occurrence of any of the following without Employee’s
prior written consent: (i) requiring Employee to relocate his offices more than forty miles from the current location; (ii) any
material breach by the Company of this Agreement; (iii) a material change in the principal line of business of the Company;
or (iv) a material diminution in Employee’s title, duties, responsibility or authority.

 

Any event described in (i) through
(iv) shall not constitute Good Reason unless Employee delivers to the Company a written notice of termination for Good Reason within
ninety days after Employee first learns of the existence of the circumstances giving rise to Good Reason, and within thirty days
following delivery of such notice, the Company has failed to cure the circumstances giving rise to Good Reason.

 

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		9.	Compensation Upon Termination: Upon the termination of Employee’s employment
under this Agreement before the expiration of the Term, Employee shall be entitled to the following:

 

a)    Termination
As a Result of Death, Disability, by the Company for Cause, or by Employee Without Good Reason. In the event that Employee’s
employment is terminated as a result of death, disability, by the Company for Cause, or by Employee without Good Reason, the Company
shall, in addition to any benefits provided under any employee benefit plan or program of the Company, pay the following amounts
to Employee (or his estate or other legal representative, as the case may be) within the time period required by applicable law
(and in all events within thirty days of such termination):

 

(i) any
accrued but unpaid Base Salary for services rendered to the date of termination; and

 

(ii) any
accrued but unpaid expenses required to be reimbursed pursuant to this Agreement; and

 

The amounts described in Sections
9(a)(i)-(ii) above, together with benefits provided under any employee benefit plan or program of the Company, shall be referred
to herein as the “Accrued Obligations.”

 

b)    Termination
by the Company Without Cause, or by Employee for Good Reason. In the event that Employee’s employment is terminated by
the Company without Cause or by Employee for Good Reason, Employee shall be entitled to the following:

 

(i)the
Accrued Obligations within the time period required by applicable law (and in all events within thirty days of such termination);
and

 

(ii)subject
to compliance with the restrictive covenants in Section 11 of this Agreement, and the execution and timely return by Employee of
a release of claims in a form reasonably satisfactory to the Company (the “Release”) which the Company shall deliver
to Employee within five business days following the termination of Employee’s employment, the Company shall pay Employee
an amount equal to six months Base Salary, payable in six equal monthly installments (the “Severance Period”). The
first installment shall commence on the sixtieth day following the termination of Employee’s employment but shall include
all installment amounts that would have been paid during the first sixty days following the termination of Employee’s employment
had installments commenced immediately following the date of termination;

 

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		10.	Obligations of Employee upon Termination or Expiration of this Agreement. Upon the
termination or expiration of this Agreement, Employee shall immediately:

 

		a)	Return all of the Company’s property;

 

		b)	Discontinue the use of any and all of the Company’s property and proprietary and confidential
information including methods, designs, marketing techniques, contracts, etc., in connection with the operation of the Company;

 

		c)	Discontinue the use of all of the Company’s trademarks, service marks, slogans or logos and
materials that contain such or any colorable imitations or variations thereof. This shall include the immediate cessation and use
of all telephone numbers, advertising products, signs, etc., which contain such trademarks, service marks, slogans or logos;

 

		d)	Discontinue the use of and return to the Company any and all information documentation in which
Employee prepared and/or received while employed by the Company, including, but not limited to, employee manuals, plans, reports,
licenses, contracts, purchase orders, letters, memoranda, work product and communications with the Company, its customers and parties
relating to matters concerning the Company; and

 

		e)	Upon request of the Company, assist and cooperate with and provide all information and documentation
to the Company in and concerning matters in which the Employee was involved in any capacity while employed by the Company.

 

 

		11.	Confidential Information. Employee acknowledges that the nature of Employee’s
engagement by the Company is such that Employee shall have access to information of a confidential nature. Such information includes
financial, legal, or any other secret or confidential information relating to the business affairs of the Company or its Affiliates
(the “Confidential Information”). Employee shall keep all such Confidential Information in confidence during the term
of this Agreement and at any time thereafter and shall not disclose any of such Confidential Information to any other person, except
to the extend such disclosure is (i) required by applicable law, (ii) lawfully obtainable from other sources, or (iii) authorized
in writing by the Company. Upon termination of Employee’s employment with the Company for any reason, Employee shall deliver
to the Company all documents, records, notebooks, work-papers and all similar material containing any of the foregoing information,
whether prepared by Employee, the Company or anyone else.

 

		12.	Restrictive Covenants. In consideration for (i) the Company’s promise to provide
Confidential Information to Employee and Employee’s return promise to hold the Company’s Confidential Information in
trust, (ii) the substantial economic investment made by the Company in the Confidential Information and goodwill of the Company,
and the business opportunities disclosed or entrusted to Employee, (iii) the compensation and other benefits provided by the Company
to Employee, and (iv) the Company’s employment of Employee pursuant to this Agreement, and to protect the Company’s
Confidential Information, customer relationships, and goodwill, Employee agrees to enter into the following restrictive covenants:

 

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a)  Non-Solicitation.
Employee agrees that, during the Term and thereafter during the Restricted Period (as such term is defined herein), other than
in connection with his authorized duties under this Agreement, Employee shall not, directly or indirectly, either as a principal,
manager, agent, employee, consultant, officer, director, stockholder, partner, investor, owner, or lender or in any other capacity,
and whether personally or through other persons or entities:

 

(i)Solicit
or attempt to solicit business from, interfere with or attempt to interfere with, or do business with any customer or client of
the Company or any Affiliate with whom the Company or any Affiliate did business or who the Company or any Affiliate solicited
within the eighteen month period preceding the termination of Employee’s employment. This restriction shall only prohibit
soliciting, attempting to solicit or transacting business with any person or entity, other than the Company or any Affiliate, engaged
in the Business (as such term is defined herein) of the Company or any Affiliate; or

 

(ii)Solicit,
induce or attempt to solicit or induce, engage, or hire, on behalf of himself or any other person or entity, any person who is
an employee or consultant of the Company or any Affiliate or who was employed by the Company or any Affiliate within the twelve
month period preceding the termination of Employee’s employment (general advertisements and similar solicitations not directed
at any specific individuals shall not be considered solicitation for this purpose).

 

For purposes of this Agreement:

 

“Restricted Period”
means a period of twelve (12) months immediately following the date of Employee’s termination from employment for any reason.

 

“Business”
means a person or entity whose business is similar to or in any way competitive with the line of business engaged in by the Company
or any Affiliate; or any other business the Company or any Affiliate engages in during Employee’s employment and in which
Employee participated or of which Employee had knowledge of Confidential Information.

 

“Affiliate”
means, any entity which directly or indirectly controls, is controlled by, or is under common control with the Company for so long
as such control exists, where “control” means the decision-making authority as to such entity and, further, where such
control shall be presumed to exist where an entity owns more than fifty percent (50%) of the equity having the power to vote on
or direct the affairs of the other entity.

 

b)    Tolling.
If Employee violates any of the restrictions contained in this Section 12, the Restricted Period shall be suspended and will not
run in favor of Employee from the time of the commencement of any violation until the time when Employee cures the violation.

 

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c)    Remedies.
Employee acknowledges that the restrictions contained in this Section 12, in view of the nature of the Company’s business
and his position with the Company, are reasonable and necessary to protect the Company’s legitimate business interests, Confidential
Information and goodwill and that any violation of this Section 12 may result in irreparable injury to the Company. In the event
of a breach or threatened breach by Employee of this Section 12, the Company may seek a temporary restraining order and injunctive
relief restraining Employee from the commission of any breach. Nothing contained in this Agreement shall be construed as prohibiting
the Company from pursuing any other remedies available to it for any breach or threatened breach, including, without limitation,
the recovery of money damages. The existence of any claim or cause of action by Employee against the Company not predicated on
this Agreement shall not constitute a defense to the enforcement by the Company of this Section 12. If Employee, during the Restricted
Period, seeks or is offered employment, or any other position or capacity with another person or entity, Employee agrees to inform
each such person or entity of the restrictions in this Section 12. The Company shall be entitled to advise such person or entity
of the provisions of this Section 12 and to otherwise deal with such person or entity to ensure that the provisions of this Section
12 are enforced.

 

d)    Reformation.
The courts shall be entitled to modify the duration and scope of any restriction contained herein to the extent such restriction
would otherwise be unenforceable, and such restriction as modified shall be enforceable. Employee acknowledges that the restrictions
imposed by this Agreement are legitimate, reasonable and necessary to protect the Company’s investment in its Confidential
Information, businesses, customer relationships and the goodwill thereof.

 

		13.	Inventions:

 

a)   “Inventions”
means all ideas, inventions, discoveries, improvements, trade secrets, formulae, techniques, data, software, programs, systems,
specifications, developments, system architectures, documentation, algorithms, flow charts, logic diagrams, source code, methods,
processes, and other information, including works-in-progress, whether or not subject to statutory protection, whether or not reduced
to practice, which are conceived, created, authored, developed, or reduced to practice by Employee, either alone or jointly with
others, whether on the premises of the Company or not, during any consulting relationship (including, without limitation, all periods
of consultancy with or provision of any services to the Company prior to the Effective Date); provided, however, that any of the
foregoing occurring neither on the premises of nor through the use of the property of nor at the direction of the Company and which
(i) do not relate to the actual or anticipated business, activities, research or investigations of the Company, and (ii) do not
result from or are not suggested by work performed by Employee for the Company (whether or not made or conceived during normal
working hours or on the premises of the Company) shall not constitute Inventions for purposes of this Agreement.

 

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b)    Employee
hereby acknowledges and agrees that all copyrightable works included in the Inventions shall be “works made for hire”
within the meaning of the Copyright Act of 1976, as amended (17 U.S.C. §101) (the “Act”), and that the Company
is to be the “author” within the meaning of the Act. Employee acknowledges and agrees that all Inventions are the sole
and exclusive property of the Company. In the event that title to any or all of the Inventions does not or may not, by operation
of law, vest in the Company, Employee hereby assigns to Company all its right, title and interest in all Inventions and all copies
of them, in whatever medium fixed or embodied, and in all writing relating thereto in Employee’s possession or control. Employee
hereby expressly waives any moral rights or similar rights in any Invention or any such work made for hire.

 

c)    Employee
agrees not to file any patent, copyright or trademark applications relating to any Invention. Employee agrees to assist the Company
whether before or after the termination or expiration of this Agreement or any consulting relationship with Company, in perfecting,
registering, maintaining, and enforcing, in any jurisdiction, the Company’s rights in the Inventions by performing promptly
all acts and executing all documents deemed necessary or convenient by the Company.

 

d)    If
the Company is unable, after duly reasonable effort, to secure Employee’s signature on any such documents, Employee hereby
irrevocably designates and appoints the Company and its duly authorized officers and agents as Employee’s agent and attorney-in-fact,
to do all lawfully permitted acts (including, but not limited to, the execution, verification and filing of applicable documents)
with the same legal force and effect as if performed by Employee.

 

		14.	Severability: If any provision of this
Agreement is held to be unenforceable for any reason, it shall be adjusted rather than voided, if possible, to achieve the intent
of the parties to the extent possible. In any event, all other provisions of this Agreement shall be deemed valid and enforceable
to the extent possible.

 

		15.	Succession: This Agreement shall inure to the benefit of and be binding upon the
Company and its successors and assigns and any such successor or assignee shall be deemed substituted for the Company under the
terms of this Agreement for all purposes. As used herein, “successor” and “assignee” shall include any
person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly
acquires the stock of the Company or to which the Company assigns this Agreement by operation of law or otherwise. The obligations
and duties of Employee hereunder are personal and otherwise not assignable. Employee’s obligations and representations under
this Agreement will survive the termination of Employee’s employment, regardless of the manner of such termination.

 

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		16.	Notices: Any notice or other communication
provided for in this Agreement shall be in writing and sent if to the Company to its office at:

 

5495 Bryson Drive, Suite 423

Naples, Florida 34109

 

if to Employee at:

 

12378 Rock Ridge Lane

Ft Myers, Florida 33913

 

or at such other address as the
Company may from time to time in writing designate, and if to Employee at such address as Employee may from time to time in writing
designate.

 

		17.	Entire Agreement: This Agreement contains
the entire agreement of the parties relating to the subject matter hereof and supersedes any prior agreements, undertakings, commitments
and practices relating to Employee’s employment by the Company.

 

		18.	Amendments: No amendment or modification
of the terms of this Agreement shall be valid unless made in writing and duly executed by both parties.

 

		19.	Waiver: No failure on the part of any party
to exercise or delay in exercising any right hereunder shall be deemed a waiver thereof or of any other right, nor shall any single
or partial exercise preclude any further or other exercise of such right or any other right.

 

		20.	Governing Law: This Agreement, and the
legal relations between the parties, shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania
without regard to conflicts of law doctrine.

 

		21.	Arbitration: Employee and the Company agree
that any claim, controversy or dispute between Employee and the Company or any Affiliate (including, without limitation, their
respective stockholders, directors, officers, employees, representatives or agents) arising out of or relating to this Agreement,
except for any alleged breach of Section 12 of this Agreement, shall be submitted to and be settled by binding arbitration in
a forum of the American Arbitration Association (“AAA”) located in Lehigh County, the Commonwealth of Pennsylvania.
In such arbitration: (a) the arbitrator shall agree to treat as confidential evidence and other information presented by the parties
to the same extent as Confidential Information under this Agreement must be held confidential by Employee and (b) the arbitrator
shall have no authority to amend or modify any of the terms of this Agreement. Any arbitration award shall be final and binding
upon the parties, and any court (state or federal) having jurisdiction may enter a judgment on the award.

 

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		22.	Counterparts: This Agreement and any amendments
hereto may be executed in one or more counterparts. All of such counterparts shall constitute one and the same agreement and shall
become effective when a copy signed by each party has been delivered to the other party.

 

		23.	Headings: Section and other headings contained
in this Agreement are for convenience of reference only and shall not affect in any way the meaning or interpretation of this
Agreement.

 

		24.	Representation By Counsel; Interpretation:
The Company and Employee each acknowledges that each party to this Agreement has been represented by counsel in connection with
this Agreement and the matters contemplated by this Agreement. Accordingly, any rule of law, or any legal decision that would
require interpretation of any claimed ambiguities in this Agreement against the party that drafted it has no application and is
expressly waived. The provision of this Agreement shall be interpreted in a reasonable manner to effect the intent of the parties.

 

		25.	Section
                                         409A:

 

			a) The Company and Employee intend that the payments and benefits provided for in this Agreement
either be exempt from Section 409A of the Internal Revenue Code, as amended (the “Code”), or be provided in a manner
that complies with Section 409A, and any ambiguity herein shall be interpreted so as to be consistent with the intent of this Section 25.
In no event whatsoever shall the Company be liable for any additional tax, interest or penalty that may be imposed on Employee
by Section 409A or damages for failing to comply with Section 409A. Notwithstanding anything contained herein to the contrary,
all payments and benefits under Section 9 of this Agreement shall be paid or provided only at the time of a termination of
Employee’s employment that constitutes a “separation from service” from the Company within the meaning of Section
409A and the regulations and guidance promulgated thereunder (determined after applying the presumptions set forth in Treas. Reg.
Section 1.409A-1(h)(1)). Further, if at the time of Employee’s termination of employment with the Company, Employee is a
“specified employee” as defined in Section 409A as determined by the Company in accordance with Section 409A, and the
deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such termination of employment
is necessary in order to prevent any accelerated or additional tax under Section 409A, then the Company will defer the commencement
of the payment of any such payments or benefits hereunder (without any reduction in payments or benefits ultimately paid or provided
to Employee) until the date that is at least six months following Employee’s termination of employment with the Company (or
the earliest date permitted under Section 409A of the Code) (the “Permitted Payment Date”). Thereafter, payments will
commence and continue in accordance with this Agreement until paid in full; provided that any payment that is delayed pursuant
to the provisions of the immediately preceding sentence shall instead be paid in a lump sum (subject to all applicable withholding)
promptly following the Permitted Payment Date.

 

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b) Notwithstanding anything to the contrary in this
Agreement, in-kind benefits and reimbursements provided under this Agreement during any calendar year shall not affect in-kind
benefits or reimbursements to be provided in any other calendar year, other than an arrangement providing for the reimbursement
of medical expenses referred to in Section 105(b) of the Code, and are not subject to liquidation or exchange for another benefit.
Notwithstanding anything to the contrary in this Agreement, reimbursement requests must be timely submitted by Employee and, if
timely submitted, reimbursement payments shall be promptly made to Employee following such submission, but in no event later than
December 31 of the calendar year following the calendar year in which the expense was incurred. In no event shall Employee be entitled
to any reimbursement payments after December 31 of the calendar year following the calendar year in which the expense was incurred.
This Section 25 shall only apply to in-kind benefits and reimbursements that would result in taxable compensation income to Employee.

 

IN WITNESS
WHEREOF, the parties have executed this Agreement as of the date first above written.

 

THE COMPANY:

 

FTE Networks, Inc.

 

/s/ Michael Palleschi

By: Michael Palleschi

Title: Chief Executive
Officer

 

 

EMPLOYEE:

 

/s/ David Lethem

By: David Lethem

 

    	-12-EXECUTIVE EMPLOYMENT AGREEMENT

 

This EXECUTIVE EMPLOYMENT
AGREEMENT (the “Agreement”) dated June 3, 2014 (the “Effective Date”) by and between Tonix
Pharmaceuticals Holding Corp., a company incorporated under the laws of Nevada (the “Company”), and Gregory
Sullivan, MD, an individual (the “Executive”).

 

WHEREAS, the Company
previously entered into a consulting agreement with Executive, dated September 1, 2013, as amended on April 15, 2014 (the “Consulting
Agreement”) relating to, among other things, compensation to be paid for services; and

 

WHEREAS, the parties
wish to enter into this Agreement directly between Executive and the Company, on the terms and conditions contained in this Agreement,
which will supersede the Consulting Agreement (and which Consulting Agreement will terminate simultaneously with the execution
of this Agreement) and all prior agreements and understandings between the Company and Executive, oral or written with respect
to its subject matter.

 

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

 

1.            Definitions.
As used in this Agreement, the following terms shall have the following meanings:

 

		(a)	“Board” means the Board of Directors
of the Company.

 

		(b)	“Cause” means any of the following:

 

		(i)	the commission of an act of fraud, embezzlement or dishonesty by Executive, or the commission of
some other illegal act by Executive (other than traffic violations or other offenses or violations outside of the course of Executive’s
employment), that has a demonstrable material adverse impact on the Company or any successor or affiliate thereof;

 

		(ii)	a conviction of, or plea of “guilty” or “no contest” to, a felony by Executive;

 

		(iii)	any unauthorized use or disclosure by Executive of confidential information or trade secrets of
the Company or any successor or affiliate thereof that has, or may reasonably be expected to have, a material adverse impact on
any such entity;

 

		(iv)	Executive’s gross negligence, failure to follow a material, lawful and reasonable request
of the Company or material violation of any duty of loyalty to the Company or any successor or affiliate thereof, or any other
demonstrable material misconduct on the part of Executive;

 

    	 

    	 

    

 

		(v)	Executive’s ongoing and repeated failure or refusal to perform or neglect of Executive’s
duties as required by this Agreement, which failure, refusal or neglect continues for thirty (30) days following Executive’s
receipt of written notice from the Company stating with specificity the nature of such failure, refusal or neglect; or

 

		(vi)	Executive’s material breach of any Company policy or any material provision of this Agreement;

 

provided, however,
that prior to the determination that “Cause” under this Section 1(b) has occurred, the Board shall (A) provide to Executive
in writing, in reasonable detail, the reasons for the determination that such “Cause” exists, (B) only with respect
to clause (vi) above, afford Executive a reasonable opportunity to remedy any such breach, (C) provide Executive an opportunity
to be heard prior to the final decision to terminate Executive’s employment hereunder for such “Cause” and (D)
make any decision that such “Cause” exists in good faith.

 

The foregoing definition
shall not in any way preclude or restrict the right of the Company or any successor or affiliate thereof to discharge or dismiss
Executive for any other acts or omissions, but such other acts or omissions shall not be deemed, for purposes of this Agreement,
to constitute grounds for termination for Cause.

 

(c)         “Code”
means the Internal Revenue Code of 1986, as amended from time to time, and the Treasury Regulations and other interpretive guidance
issued thereunder.

 

(d)         “Good
Reason” means the occurrence of any of the following events or conditions without Executive’s written consent:

 

		(i)	a material reduction of Executive’s title, authority, duties or responsibilities, or the
assignment to Executive of duties materially inconsistent with Executive’s positions with the Company as stated in Section
2(a) hereof;

 

		(ii)	a material diminution in Executive’s base compensation, unless a similar reduction is imposed
across-the-board to senior management of the Company and is not greater than 15%;

 

		(iii)	a material change in the geographic location at which Executive must perform his duties (and the
parties acknowledge that a relocation of Executive’s principal office to a location more than fifty (50) miles from the Company’s
then current offices (excepting reasonable travel on the Company’s business) shall constitute a material change for purposes
of this clause (iii));

 

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		(iv)	any other action or inaction that constitutes a material breach by the Company or any successor
or affiliate of its obligations to Executive under this Agreement; or

 

		(v)	the Company’s delivery of a Non-Renewal Notice (as hereinafter defined).

 

Executive must provide
written notice to the Company of the occurrence of any of the foregoing events or conditions without Executive’s written
consent within ninety (90) days of the occurrence of such event. The Company or any successor or affiliate shall have a period
of thirty (30) days to cure such event or condition after receipt of written notice of such event from Executive. “Good Reason”
shall not exist unless and until the Company fails to cure the condition within the allotted timeframe.

 

(e)         “Involuntary
Termination” means (i) Executive’s Separation from Service by reason of Executive’s discharge by the Company
other than for Cause, or (ii) Executive’s Separation from Service by reason of Executive’s resignation of employment
with the Company for Good Reason. Executive’s Separation from Service by reason of Executive’s death or discharge by
the Company following Executive’s Permanent Disability shall not constitute an Involuntary Termination. Executive’s
Separation from Service by reason of resignation from employment with the Company for Good Reason shall be an “Involuntary
Termination” only if such Separation from Service occurs within six (6) months following the initial existence of the act
or failure to act constituting Good Reason, and then only after an opportunity to cure has been provided in accordance with Section
1(d).

 

(f)        “Permanent
Disability” of Executive shall be deemed to have occurred if Executive shall become physically or mentally incapacitated
or disabled or otherwise unable fully to discharge his duties hereunder for a period of ninety (90) consecutive calendar days or
for one hundred twenty (120) calendar days in any one hundred eighty (180) calendar-day period. The existence of Executive’s
Permanent Disability shall be determined by the Company on the advice of a physician chosen by the Company and the Company reserves
the right to have Executive examined by a physician chosen by the Company at the Company’s expense.

 

(g)        “Separation
from Service,” with respect to Executive, means Executive’s “separation from service,” as defined in
Treasury Regulation Section 1.409A-1(h).    

 

(h)        “Stock
Awards” means all stock options, restricted stock and such other awards granted pursuant to the Company’s stock
option and equity incentive award plans or agreements and any shares of stock issued upon exercise thereof.

 

2.            Services to
Be Rendered.

 

(a)        Duties and
Responsibilities. Executive shall serve as Chief Medical Officer of the Company. In the performance of such duties, Executive
shall report directly to and shall be subject to the direction of the President. Executive shall be employed by the Company on
a full time basis. Executive’s primary place of work shall be the Company’s executive offices in New York, New York,
or such other location within the New York City area as may be designated by the Company from time to time. Executive shall also
render services at such other places within or outside the United States as the Company may direct from time to time.
Executive shall be subject to and comply with the policies and procedures generally applicable to senior executives of the Company
to the extent the same are not inconsistent with any term of this Agreement.

 

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(b)        Exclusive Services.
Executive shall at all times faithfully, industriously and to the best of his ability, experience and talent perform to the satisfaction
of the Company all of the duties that may be assigned to Executive hereunder and shall devote substantially all of his productive
time and efforts to the performance of such duties. Executive agrees that he will not join any boards, other than community and
civic boards (which do not interfere with his duties to the Company), without the prior approval of the Company. Except
as provided below, the Company shall be entitled to all benefits, profits or other issues arising from or incidental to all work,
services and advice performed or provided by Executive. Provided that the activities listed below do not interfere with the duties
and responsibilities under this Agreement, nothing in this Agreement shall preclude Employee from devoting reasonable periods required
for:

 

			

		(i)	Serving as a member or owner of any organization involving no conflict of interest with the Company,
provided that Executive must obtain the prior approval of the Board;

 

		(ii)	Serving as a consultant in his area of expertise to government, commercial and academic panels
where it does not conflict with the interests of the Company; and

 

		(iii)	Managing his personal investments, including owning shares of companies whose securities are publicly
traded, so long as such securities do not constitute more than five percent (5%) of the outstanding securities of any such company.

 

3.            Compensation
and Benefits. The Company shall pay or provide, as the case may be, to Executive the compensation and other benefits and rights
set forth in this Section 3.

 

(a)        Base Salary.
The Company shall pay to Executive a base salary of $225,000 per year, payable in accordance with the Company’s usual pay
practices (and in any event no less frequently than monthly). Executive’s base salary shall be subject to review annually
by and at the sole discretion of the Board and/or the Compensation Committee of the Board or its designee.

 

(b)        Annual Bonus.
Executive shall be entitled to participate in any bonus plan that the Board or its designee may approve for the senior executives
of the Company. Any bonus awarded under this Section 3(c) shall be calculated following the close of the fiscal year to which the
bonus relates, and paid in a lump sum by no later than two and one-half (2 1⁄2) months following the end of the fiscal year
in which such bonus award is earned, provided that Executive remains employed on the date of payment (and has not given notice
of resignation).

 

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(c)        Benefits.
Executive shall be entitled to participate in benefits under the Company’s benefit plans and arrangements, including, without
limitation, any employee benefit plan or arrangement made available in the future by the Company to its senior executives, subject
to and on a basis consistent with the terms, conditions and overall administration of such plans and arrangements. The Company
shall have the right to amend or delete any such benefit plan or arrangement made available by the Company to its senior executives
and not otherwise specifically provided for herein.

 

(d)        Expenses.
The Company shall reimburse Executive for reasonable out-of-pocket business expenses incurred in connection with the performance
of his duties hereunder, subject to (i) such policies as the Company may from time to time establish, (ii) Executive
furnishing the Company with evidence in the form of receipts satisfactory to the Company substantiating the claimed expenditures,
and (iii) Executive receiving advance approval from the President in the case of expenses (or a series of related expenses) in
excess of $5,000.

 

(e)        Vacation.
Executive shall have the right to four weeks of vacation during each successive one year period of his employment by the Company,
which vacation time shall be taken at such time or times in each such one year period so as not to materially and adversely interfere
with the performance of his responsibilities under this Agreement. Executive shall not be entitled to carry over any unused vacation
time from one year to the next and any accrued but unused vacation time will be waived. In addition, Executive shall be entitled
to additional paid time off in accordance with the policies of the Company applicable to senior management personnel from
time to time.

 

(f)        Withholding.
The Company shall be entitled to withhold from amounts payable or benefits accorded to Executive under this Agreement all federal,
state and local income, employment and other taxes, as and in such amounts as may be required by applicable law.

 

(g)        Equity Awards.
Executive shall be entitled to participate in any equity or other employee benefit plan that is generally available to senior executive
officers, as distinguished from general management, of the Company. Except as otherwise provided in this Agreement, Executive’s
participation in and benefits under any such plan shall be on the terms and subject to the conditions specified in the governing
document of the particular plan.

 

4.            Employment
Term. The term of this Agreement (as it may be extended by the following sentence or terminated earlier pursuant to Section
5, the “Employment Term”) shall begin on June 3, 2014 and end on the close of business on June 2, 2015. The
Employment Term shall be automatically extended for additional one-year periods unless, at least sixty (60) days prior to
the end of the expiration of the Employment Term, Executive or the Company notifies the other party in writing (a “Non-Renewal
Notice”) that it does not wish to extend such Employment Term. Executive’s employment hereunder shall be coterminous
with the Employment Term, unless sooner terminated as provided in Section 5.

 

    	5

    	 

    

 

5.            Termination;
Severance. Executive shall be entitled to receive benefits upon a Separation from Service only as set forth in this Section
5:

 

(a)        General.
Either the Company or Executive may terminate Executive’s employment hereunder, for any reason, at any time prior to the
expiration of the Employment Term, upon thirty (30) days prior written notice to the other party. Upon termination of Executive’s
employment hereunder for any reason, Executive shall be deemed simultaneously to have resigned from any position or office he may
at the time hold with the Company or any of its affiliates. In addition, upon expiration of the Employment Term, the Company shall
(i) reimburse Executive for any expenses properly incurred under Section 3(d) and which have not previously been reimbursed
as of the effective date of the termination, (ii) pay Executive for any accrued, but unused, vacation time as of the effective
date of the termination, and (iii) pay Executive for any accrued and unpaid base salary through and including the effective
date of termination (collectively, the “Accrued Compensation”). The Accrued Compensation will be paid in a lump
sum on the first regularly scheduled payroll date following the effective date of the termination of Executive’s employment
with the Company.

 

(b)        Separation
from Service by Death or Following Permanent Disability. Subject to Sections 5(e) and 10(p) and Executive’s continued
compliance with Section 6, in the event of Executive’s Separation from Service as a result of Executive’s death or
discharge by the Company following Executive’s Permanent Disability, Executive or Executive’s estate, as applicable,
shall be entitled to receive his base salary through the end of the month in which Executive’s Separation from Service occurs
as a result of Executive’s death or Permanent Disability.

 

(c)        Severance upon
Involuntary Termination. Subject to Sections 5(e) and 10(p) and Executive’s continued compliance with Section 6, if Executive’s
employment is Involuntarily Terminated, Executive shall be entitled to receive, in lieu of any severance benefits to which Executive
may otherwise be entitled under any severance plan or program of the Company, the benefits provided below, which, with respect
to clause (ii) and the last sentence of clause (iii) (if applicable) will be payable in a lump sum within ten (10) days following
the effective date of Executive’s Release (as hereinafter defined):

 

		(i)	the Company shall pay to Executive his fully earned but unpaid base salary, when due, through the
date of Executive’s Involuntary Termination at the rate then in effect (without regard to any reduction in salary that gave
rise to an event of Good Reason), plus all other benefits, if any, under any Company group retirement plan, nonqualified deferred
compensation plan, equity award plan or agreement, health benefits plan or other Company group benefit plan to which Executive
may be entitled pursuant to the terms of such plans or agreements at the time of Executive’s Involuntary Termination;

 

		(ii)	Executive shall be entitled to receive severance pay in an amount equal to the base salary payable
to Executive under Section 3(a) of this Agreement from the date of Executive’s Involuntary Termination until the one year
anniversary of such Involuntary Termination (the “Severance Period”);

 

    	6

    	 

    

 

		(iii)	During the Severance Period (or, if earlier, until the date on which the applicable continuation
period under COBRA expires), the Company shall arrange to provide Executive and his eligible dependents who were covered under
the Company’s health insurance plans as of the date of Executive’s Involuntary Termination with health (including medical,
dental and vision) insurance benefits substantially similar to those provided to Executive and his dependents immediately prior
to the date of such Involuntary Termination. If any of the Company’s health benefits are self-funded as of the date of Executive’s
Involuntary Termination, or if the Company cannot provide the foregoing benefits in a manner that is exempt from Section 409A (as
defined below) or that is otherwise compliant with applicable law (including, without limitation, Section 2716 of the Public Health
Service Act), instead of providing continued health insurance benefits as set forth above, the Company shall instead pay to Executive
an amount equal to (A) the number of months from the date of Executive’s Involuntary Termination until the end of the Employment
Term, as appropriate multiplied by (B) the monthly premium Executive would be required to pay for continuation coverage pursuant
to COBRA for Executive and his eligible dependents who were covered under the Company’s health plans as of the date of Executive’s
Involuntary Termination (calculated by reference to the premium as of the date of Involuntary Termination); and

 

		(iv)	That portion of the Stock Awards that would have vested over the Severance Period shall be automatically
accelerated so as to be immediately vested as of the date of Involuntary Termination and any vested options or similar award (e.g.,
a stock appreciation right) may be exercised at any time during the Severance Period (subject to earlier termination (A) in connection
with a recapitalization or similar transaction pursuant to the Company’s equity incentive plans governing such Stock Awards
or (B) the contractual term of the Stock Award), or if longer, through the date such vested options or similar award are exercisable
under the terms of the applicable Stock Award.

 

(d)        Termination
for Cause or Voluntary Resignation Without Good Reason. In the event of Executive’s termination of employment as a result
of Executive’s discharge by the Company for Cause or Executive’s resignation without Good Reason (other than as a result
of Executive’s death or Separation from Service by reason of discharge by the Company following Executive’s Permanent
Disability), the Company shall not have any other or further obligations to Executive under this Agreement (including any financial
obligations) except that Executive shall be entitled to receive the Accrued Compensation. In addition, in the event of Executive’s
Separation from Service as a result of Executive’s discharge by the Company for Cause or Executive’s resignation without
Good Reason (other than as a result of Executive’s death or Separation from Service by reason of discharge by the Company
following Executive’s Permanent Disability), all vesting of Executive’s unvested Stock Awards previously granted to
him by the Company shall cease and none of such unvested Stock Awards shall be exercisable following the date of such termination.
The foregoing shall be in addition to, and not in lieu of, any and all other rights and remedies which may be available to the
Company under the circumstances, whether at law or in equity.

 

    	7

    	 

    

 

(e)        Release.
As a condition to Executive’s receipt of any post-termination benefits pursuant to Sections 5(b) or (c) above, Executive
(or, in the event of Executive’s incapacity as a result of his Permanent Disability, Executive’s legal representative)
shall execute and not revoke a general release of all claims in favor of the Company (the “Release”) in a form
reasonably acceptable to the Company. In the event the Release does not become effective within the fifty-five (55) day period
following the date of Executive’s Separation from Service, Executive shall not be entitled to the aforesaid payments and
benefits.

 

(f)        Exclusive Remedy.
Except as otherwise expressly required by law (e.g., COBRA) or as specifically provided herein, all of Executive’s rights
to salary, severance pay, benefits, bonuses and other amounts hereunder (if any) accruing after the termination of Executive’s
employment shall cease upon such termination. In the event of Executive’s termination of employment with the Company, Executive’s
sole remedy shall be to receive the payments and benefits described in this Section 5. In addition, Executive acknowledges and
agrees that he is not entitled to any reimbursement by the Company for any taxes payable by Executive as a result of the payments
and benefits received by Executive pursuant to this Section 5, including, without limitation, any excise tax imposed by Section
4999 of the Code.

 

(g)        No Mitigation.
Executive shall not be required to mitigate the amount of any payment provided for in this Section 5 by seeking other employment
or otherwise, nor shall the amount of any payment or benefit provided for in this Section 5 be reduced by any compensation earned
by Executive as the result of employment by another employer or self-employment or by retirement benefits; provided, however,
that loans, advances or other amounts owed by Executive to the Company may be offset by the Company against amounts payable to
Executive under this Section 5.

 

(h)        Return of the
Company’s Property. In the event of Executive’s termination of employment for any reason, the Company shall have
the right, at its option, to require Executive to vacate his offices prior to or on the effective date of separation and to cease
all activities on the Company’s behalf. Upon Executive’s termination of employment in any manner, as a condition to
Executive’s receipt of any severance benefits described in this Agreement, Executive shall immediately surrender to the Company
all lists, books and records of, or in connection with, the Company’s business, and all other property belonging to the Company,
it being distinctly understood that all such lists, books and records, and other documents, are the property of the Company. Executive
shall deliver to the Company a signed statement certifying compliance with this Section 5(h) prior to the receipt of any severance
benefits described in this Agreement.

 

    	8

    	 

    

 

6.        Certain Covenants.

 

(a)        Restrictive
Covenant. Executive hereby covenants and agrees that during the Employment Term and for a period of one year following the
end of the Employment Term (the “Restricted Period”), Executive will not, without the prior written consent
of the Company, directly or indirectly, on his own behalf or in the service or on behalf of others, whether or not for compensation,
engage in any business activity, or have any interest in any person, firm, corporation or business, through a subsidiary or parent
entity or other entity (whether as a shareholder, agent, joint venture, security holder, trustee, partner, executive, creditor
lending credit or money for the purpose of establishing or operating any such business, partner or otherwise) with any Competing
Business in the Covered Area. For the purpose of this Section 6(a), (i) "Competing Business" means any biotechnology
or pharmaceutical company, any contract manufacturer, any research laboratory or other company or entity (whether or not organized
for profit) that has, or is seeking to develop, one or more products or therapies that is related to (A) treatment of disorders
of the central nervous system, including fibromyalgia, post-traumatic stress disorder, headaches or (B) any other disorders that
are addressed by the Company’s pipeline programs and intellectual property portfolio and (ii) "Covered Area" means
all geographical areas of the United States and foreign jurisdictions where the Company (or its subsidiaries) then have offices
and/or is developing or selling its products directly or indirectly through distributors and/or other sales agents. Company acknowledges
that Executive, immediately prior to entering into this Agreement, served as Assistant Professor of Clinical Psychiatry in the
Department of Psychiatry at Columbia University, and his areas of expertise include the diagnosis, treatment, and neurobiology
of anxiety and mood disorders, and notwithstanding the foregoing, starting the date immediately after the Employment Term and through
the end of the Restricted Period, Executive may engage in activities similar to those conducted prior to entry into this Agreement
for a hospital or academic institution, provided that he does not act engage in activities prohibited by the first sentence of
this paragraph 6(a) for a biotechnology or pharmaceutical company or other business entity engaged in the sale or development of
drugs. Passive ownership of less than five percent (5%) of a public company shall not be a violation of this Section 6(a).

 

 

    	9

    	 

    

 

(b)        Confidential
Information. Executive recognizes and acknowledges that by reason of Executive’s employment by and service to the Company
before, during and, if applicable, after the Employment Term, Executive will have access to certain confidential and proprietary
information relating to the Company’s business, which may include, but is not limited to, unique business strategies, theories
and concepts, information regarding plans, strategies, opportunities, processes, ideas, research and know-how developed by or for
the Company, trade secrets, patents, other intellectual property, clinical studies, regulatory dossiers, manufacturing, marketing,
personnel, financial data, technical information, methods, processes, formulae and information which Company has obtained from
third parties (collectively referred to as “Confidential Information”). Executive acknowledges that such Confidential
Information is a valuable and unique asset of the Company and Executive covenants that he will not, unless expressly authorized
in writing by the Company, at any time during the course of Executive’s employment use any Confidential Information or divulge
or disclose any Confidential Information to any person, firm or corporation except in connection with the performance of Executive’s
duties for the Company and in a manner consistent with the Company’s policies regarding Confidential Information. Executive
also covenants that at any time after the termination of such employment, directly or indirectly, he will not use any Confidential
Information or divulge or disclose any Confidential Information to any person, firm or corporation, unless such information is
in the public domain through no fault of Executive or except when required to do so by a court of law, by any governmental agency
having supervisory authority over the business of the Company or by any administrative or legislative body (including a committee
thereof) with apparent jurisdiction to order Executive to divulge, disclose or make accessible such information. All written Confidential
Information (including, without limitation, in any computer or other electronic format) which comes into Executive’s possession
during the course of Executive’s employment shall remain the property of the Company. Except as required in the performance
of Executive’s duties for the Company, or unless expressly authorized in writing by the Company, Executive shall not remove
any written Confidential Information from the Company's premises, except in connection with the performance of Executive’s
duties for the Company and in a manner consistent with the Company’s policies regarding Confidential Information. Upon termination
of Executive’s employment, Executive agrees to return immediately to the Company all written Confidential Information (including,
without limitation, in any computer or other electronic format) in Executive's possession. Notwithstanding anything to the contrary
contained in this Agreement, Executive shall not be prohibited from disclosing to third parties, or using without the prior written
consent of Company, information that (a) was, on the date of this Agreement, generally known to the public, (b) is as of the date
of this Agreement, lawfully in the possession of Executive, as evidenced by written dated records (c) is subsequently disclosed
to Executive by a third party who is in lawful possession of such information and is not under an obligation of confidence, (d)
is disclosed by Company to third parties without restriction on use and disclosure, or (e) is required to be disclosed by law or
a final order of a court or other governmental agency or authority of competent jurisdiction provided, however, Executive give
prompt notice to the Company prior to any disclosure, which would allow the Company sufficient time to seek injunctive relief or
other appropriate remedy in respect to such disclosure. As a condition of Executive’s continued employment with the Company
and in order to protect the Company’s interest in such proprietary information, the Company shall be allowed to require Executive’s
execution of a confidentiality agreement and/or proprietary information and inventions agreement, as reasonably requested by the
Company not inconsistent with the provisions of this paragraph 6(b).

  

(c)        Solicitation
of Employees. During the Restricted Period, Executive shall not, directly or indirectly, solicit or encourage to leave the
employment of the Company or any of its affiliates, any person known or reasonably expected to be known to Executive to be an employee
of the Company or any of its affiliates.

 

(d)        Solicitation
of Consultants and other Third Parties. During the Restricted Period, Executive shall not, directly or indirectly, hire, solicit
or encourage to cease work with the Company or any of its affiliates any consultant, distributor, licensee or other third party
partner known or reasonably expected to be known to Executive to be then under contract with the Company or any of its affiliates.

 

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(e)        Rights and
Remedies Upon Breach. If Executive breaches or threatens to commit a breach of any of the provisions of this Section 6
(the “Restrictive Covenants”), the Company shall have the following rights and remedies, each of which rights
and remedies shall be independent of the other and severally enforceable, and all of which rights and remedies shall be in addition
to, and not in lieu of, any other rights and remedies available to the Company under law or in equity:

 

		(i)	Specific Performance. The right and remedy to have the Restrictive Covenants specifically
enforced by any court having equity jurisdiction by way of a temporary restraining order, preliminary injunction, permanent injunction,
or other equitable remedy, all without the need to post a bond or any other security or to prove any amount of actual damage or
that money damages would not provide an adequate remedy, it being acknowledged and agreed that any such breach or threatened breach
may cause irreparable injury to the Company and that money damages will not provide adequate remedy to the Company; and

 

		(ii)	Accounting and Indemnification. The right and remedy to require Executive (A) to account
for and pay over to the Company all compensation, profits, monies, accruals, increments or other benefits derived or received by
Executive or any associated party deriving such benefits as a result of any such breach of the Restrictive Covenants; and (B) to
indemnify the Company against any other losses, damages (including special and consequential damages), costs and expenses, including
actual reasonable attorneys’ fees and court costs, which may be incurred by them and which result from or arise out of any
such breach or threatened breach of the Restrictive Covenants.

 

(f)        Severability
of Covenants/Blue Penciling. If any court determines that any of the Restrictive Covenants, or any part thereof, is invalid
or unenforceable, the remainder of the Restrictive Covenants shall not thereby be affected and shall be given full effect, without
regard to the invalid portions. If any court determines that any of the Restrictive Covenants, or any part thereof, are unenforceable
because of the duration of such provision or the area or scope covered thereby, such court shall have the power to reduce the duration,
area or scope of such provision and, in its reduced form, such provision shall then be enforceable and shall be enforced. Executive
hereby waives any and all right to attack the validity of the Restrictive Covenants on the grounds of the breadth of their scope
or the length of their term.

 

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(g)        Definitions.
For purposes of this Section 6, the term “Company” means not only Tonix Pharmaceuticals Holding Corp., but also
any company, partnership or entity which, directly or indirectly, controls, is controlled by or is under common control with Tonix
Pharmaceuticals Holding Corp.

 

7.        Insurance; Indemnification.

 

(a)        Insurance.
The Company shall have the right to take out life, health, accident, “key-man” or other insurance covering Executive,
in the name of the Company and at the Company’s expense in any amount deemed appropriate by the Company. Executive shall
assist the Company in obtaining such insurance, including, without limitation, submitting to any required examinations and providing
information and data required by insurance companies.

 

(b)        Indemnification.
Executive will be provided with indemnification against third party claims related to his work for the Company in accordance with
the Company’s articles of incorporation and bylaws (as may be amended from time to time) and Nevada law. The Company shall
provide Executive with directors and officers liability insurance coverage at least as favorable as that which the Company may
maintain from time to time for members of the Board and other executive officers.

 

8.        General Relationship.
Executive shall be considered an employee of the Company within the meaning of all federal, state and local laws and regulations
including, but not limited to, laws and regulations governing unemployment insurance, workers’ compensation, industrial accident,
labor and taxes.

 

9.        Representations
and Warranties of Executive. Executive hereby represents and warrants to the Company that (a) the execution, delivery and performance
of this Agreement by Executive does not and shall not conflict with, breach, violate or cause a default under any agreement, contract
or instrument to which the Executive is a party or any judgment, order or decree to which Executive is subject, (b) Executive is
not a party to or bound by any employment agreement, (c) Executive is not a party to or bound by any consulting agreement, non-compete
agreement, confidentiality agreement or similar agreement with any other person or entity that would affect the Company or the
obligations of Executive hereunder and (d) upon the execution and delivery of this Agreement by the Company and Executive, this
Agreement will be a valid and binding obligation of Executive, enforceable in accordance with its terms.

 

10.        Miscellaneous.

 

(a)        Modification;
Prior Claims. This Agreement sets forth the entire understanding of the parties with respect to the subject matter hereof,
supersedes all existing agreements between them concerning such subject matter, including, without limitation, the Consulting Agreement.
This Agreement may be amended or modified only with the written consent of Executive and an authorized representative of the Company.
No oral waiver, amendment or modification will be effective under any circumstances whatsoever.

 

(b)        Assignment;
Assumption by Successor. The rights of the Company under this Agreement may, without the consent of Executive, be assigned
by the Company, in its sole and unfettered discretion, to any person, firm, corporation or other business entity which at any time,
whether by purchase, merger or otherwise, directly or indirectly, acquires all or substantially all of the assets or business of
the Company. The Company will require any successor (whether direct or indirect, by purchase, merger or otherwise) to all or substantially
all of the business or assets of the Company expressly to assume and to agree to perform this Agreement in the same manner and
to the same extent that the Company would be required to perform it if no such succession had taken place; provided, however,
that no such assumption shall relieve the Company of its obligations hereunder.  As used in this Agreement, the “Company”
shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees
to perform this Agreement by operation of law or otherwise.

 

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(c)        Survival.
The covenants, agreements, representations and warranties contained in or made in Sections 3(f), 3(g), 5, 6, 7, 9 and 10 of
this Agreement shall survive the termination of Executive’s employment.

 

(d)        Third-Party
Beneficiaries. This Agreement does not create, and shall not be construed as creating, any rights enforceable by any person
not a party to this Agreement.

 

(e)        Waiver.
The failure of either party hereto at any time to enforce performance by the other party of any provision of this Agreement shall
in no way affect such party’s rights thereafter to enforce the same, nor shall the waiver by either party of any breach of
any provision hereof be deemed to be a waiver by such party of any other breach of the same or any other provision hereof.

 

(f)        Section Headings.
The headings of the several sections in this Agreement are inserted solely for the convenience of the parties and are not a part
of and are not intended to govern, limit or aid in the construction of any term or provision hereof.

 

(g)        Notices.
Any notice required or permitted by this Agreement shall be in writing and shall be delivered as follows with notice deemed given
as indicated: (i) by personal delivery when delivered personally; (ii) by overnight courier upon written verification of receipt;
(iii) by email, telecopy or facsimile transmission upon acknowledgment of receipt of electronic transmission; or (iv) by certified
or registered mail, return receipt requested, upon verification of receipt. Notice shall be sent to Executive at the address listed
on the Company’s personnel records and to the Company at its principal place of business, or such other address as either
party may specify in writing.

      

(h)        Severability.
All Sections, clauses and covenants contained in this Agreement are severable, and in the event any of them shall be held to be
invalid by any court, this Agreement shall be interpreted as if such invalid Sections, clauses or covenants were not contained
herein.

 

(i)        Governing Law.
This Agreement shall be governed by, and construed in accordance with and subject to, the laws of the State of New York applicable
to agreements made and to be performed entirely within such state without regard to its conflicts of law rules.

 

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(j)        Jurisdiction
and Venue.

 

		(i)	The Company and Executive hereby irrevocably and unconditionally submit, for themselves and their
property, to the exclusive jurisdiction of any New York State court or federal court of the United States of America sitting in
the City of New York and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement
or for recognition or enforcement of any judgment, and the Company and Executive hereby irrevocably and unconditionally agree that
all claims in respect of any such action or proceeding may be heard and determined in any such New York State court or, to the
extent permitted by law, in such federal court. The Company and Executive irrevocably waive, to the fullest extent permitted by
law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. The Company and Executive
agree that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law. Executive agrees not to commence a claim or proceeding hereunder in
a court other than a New York State court or federal court located in the City of New York, except if Executive has first brought
such claim or proceeding in such New York State court or federal court located in the City of New York, and such court or courts
have denied jurisdiction over such claim or proceeding.

 

		(ii)	The Company and Executive irrevocably and unconditionally waive, to the fullest extent they may
legally and effectively do so, any objection that they may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement in any New York State court or federal court of the United States of America
sitting in the City of New York and any appellate court from any thereof.

 

		(iii)	The parties further agree that the mailing by certified or registered mail, return receipt requested
to both (x) the other party and (y) counsel for the other party (or such substitute counsel as such party may have given written
notice of prior to the date of such mailing), of any process required by any such court shall constitute valid and lawful service
of process against them, without the necessity for service by any other means provided by law. Notwithstanding the foregoing, if
and to the extent that a court holds such means to be unenforceable, each of the parties’ respective counsel (as referred
to above) shall be deemed to have been designated agent for service of process on behalf of its respective client, and any service
upon such respective counsel effected in a manner which is permitted by New York law shall constitute valid and lawful service
of process against the applicable party.

 

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(k)        Non-transferability
of Interest. None of the rights of Executive to receive any form of compensation payable pursuant to this Agreement shall be
assignable or transferable except through a testamentary disposition or by the laws of descent and distribution upon the death
of Executive. Any attempted assignment, transfer, conveyance, or other disposition (other than as aforesaid) of any interest in
the rights of Executive to receive any form of compensation to be made by the Company pursuant to this Agreement shall be void.

 

(l)        Gender.
Where the context so requires, the use of the masculine gender shall include the feminine and/or neuter genders and the singular
shall include the plural, and vice versa, and the word “person” shall include any corporation, firm, partnership or
other form of association.

 

(m)        Counterparts.
The parties may execute this Agreement in multiple counterparts, each of which constitutes an original as against the party that
signed it, and both of which together constitute one agreement. The signatures of both parties need not appear on the same counterpart.
In the event that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format
(.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party executing
(or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original thereof.

 

(n)        Construction.
The language in all parts of this Agreement shall in all cases be construed simply, according to its fair meaning, and not strictly
for or against any of the parties hereto. Without limitation, there shall be no presumption against any party on the ground that
such party was responsible for drafting this Agreement or any part thereof.

 

(o)        Withholding
and other Deductions. All compensation payable to Executive hereunder shall be subject to such deductions as the Company is
from time to time required to make pursuant to law, governmental regulation or order.

 

(p)        Code Section
409A.

 

		(i)	This Agreement is not intended to provide for any deferral of compensation subject to Section 409A
of the Code, and, accordingly, the severance payments payable under Sections 5(c)(ii) and 5(c)(iii) shall be paid no later than
the later of: (A) the fifteenth (15th) day of the third month following Executive’s first taxable year in which such severance
benefit is no longer subject to a substantial risk of forfeiture, and (B) the fifteenth (15th) day of the third month following
first taxable year of the Company in which such severance benefit is no longer subject to substantial risk of forfeiture, as determined
in accordance with Code Section 409A and any Treasury Regulations and other guidance issued thereunder. To the extent applicable,
this Agreement shall be interpreted in accordance with Code Section 409A and Department of Treasury regulations and other interpretive
guidance issued thereunder.

 

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		(ii)	If Executive is a “specified employee” (as defined in Section 409A of the Code), as
determined by the Company in accordance with Section 409A of the Code, on the date of Executive’s Separation from Service,
to the extent that the payments or benefits under this Agreement are subject to Section 409A of the Code and the delayed payment
or distribution of all or any portion of such amounts to which Executive is entitled under this Agreement is required in order
to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, then such portion deferred pursuant to this Section
9(p)(ii) shall be paid or distributed to Executive in a lump sum on the earlier of (A) the date that is six (6)-months following
Executive’s Separation from Service, (B) the date of Executive’s death or (C) the earliest date as is permitted under
Section 409A of the Code. Any remaining payments due under the Agreement shall be paid as otherwise provided herein.

 

		(iii)	To the extent applicable, this Agreement shall be interpreted in accordance with the applicable
exemptions from Section 409A of the Code. If Executive and the Company determine that any payments or benefits payable under this
Agreement intended to comply with Sections 409A(a)(2), (3) and (4) of the Code do not comply with Section 409A of the Code, Executive
and the Company agree to amend this Agreement, or take such other actions as Executive and the Company deem reasonably necessary
or appropriate, to comply with the requirements of Section 409A of the Code and the Treasury Regulations thereunder (and any applicable
transition relief) while preserving the economic agreement of the parties. To the extent that any provision in this Agreement is
ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner that no payments payable
under this Agreement shall be subject to an “additional tax” as defined in Section 409A(a)(1)(B) of the Code.

 

		(iv)	Any reimbursement of expenses or in-kind benefits payable under this Agreement shall be made in
accordance with Treasury Regulation Section 1.409A-3(i)(1)(iv) and shall be paid on or before the last day of Executive’s
taxable year following the taxable year in which Executive incurred the expenses. The amount of expenses reimbursed or in-kind
benefits payable in one year shall not affect the amount eligible for reimbursement or in-kind benefits payable in any other taxable
year of Executive’s, and Executive’s right to reimbursement for such amounts shall not be subject to liquidation or
exchange for any other benefit.

 

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		(v)	In the event that the amounts payable under Sections 5(c)(ii) and 5(c)(iii) are subject to Section
409A of the Code and the timing of the delivery of Executive’s Release could cause such amounts to be paid in one or another
taxable year, then notwithstanding the payment timing set forth in such sections, such amounts shall not be payable until the later
of (A) the payment date specified in such Section or (B) the first business day of the taxable year following Executive’s
Separation from Service.

 

IN WITNESS WHEREOF, the undersigned, intending
to be legally bound, have executed this Agreement as of the date first written above.

 

	EXECUTIVE:	 	TONIX PHARMACEUTICALS HOLDING CORP.
	/s/ GREGORY SULLIVAN	 	/s/ SETH LEDERMAN
	Gregory Sullivan, MD	 	Name:  Seth Lederman, MD
	 	 	Title: Chief Executive Officer

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