SEC Contract Filing

Filing Date: 2020-05-11

Document Content:
<DOCUMENT>
<TYPE>EX-10.40
<SEQUENCE>11
<FILENAME>ex10-40.htm
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 6pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Exhibit
10.40</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 6pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED UNLESS SOLD PURSUANT TO RULE 144, RULE 144A OR REGULATION S UNDER SAID ACT
OR OTHERWISE IN A MANNER EXEMPT FROM REGISTRATION, AS MORE PARTICULARLY DISCUSSED IN SECTION 3(D).</B></FONT></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SENIOR
PROMISSORY NOTE</FONT></P>

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 <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>US
 $200,000.00</B></FONT></TD>
 <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>April
 29, 2020</B></FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOW
THEREFORE FOR VALUE RECEIVED, </B>the undersigned, FTE Networks, Inc. a Nevada corporation (the &ldquo;<B><U>Company</U></B>&rdquo;),
hereby promises to pay to the order of <B>LATERAL SMA AGENT, LLC (</B>the <B>&ldquo;Holder&rdquo;)</B>, <B>Two Hundred Thousand
Dollars ($200,000) </B>(the &ldquo;<B><U>Principal</U></B>&rdquo;) in lawful money of the United States of America, which shall
be legal tender, bearing interest and payable as provided herein. This Senior Promissory Note (this &ldquo;<B><U>Note</U></B>&rdquo;
or &ldquo;<B><U>Promissory Note</U></B>&rdquo;) has an effective date as noted above (the &ldquo;<B><U>Effective Date</U></B>&rdquo;).</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>1.
</B> Interest (&ldquo;<B><U>Interest</U></B>&rdquo;) shall accrue on the unpaid Principal amount of this Note at the rate of ten
percent (10%) simple interest per annum (the &ldquo;<B><U>Interest Rate</U></B>&rdquo;). All Interest payable hereunder shall
be calculated by multiplying the actual days elapsed in the period for which Interest is being calculated by a daily rate based
on the Interest Rate and a 365-day year. The Company will pay the principal plus accrued interest on the Maturity Date.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2.
</B> The &ldquo;<B><U>Maturity Date</U></B>&rdquo; of this Note shall mature on the earlier one of the following liquidity events:
(i) the date the Company receives loan proceeds from the Paycheck Protection Program under the CARES Act or (ii) the date the
Company receives cash in excess of $1,000,000, provided, however, that if neither of these events has taken place within ninety
(90) days of the date of this Note, the maturity date shall be November 15, 2020.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>3.
</B>Conversion.</FONT></P>

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