FTE : Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement (Form 8-K)

On June 16, 2021, FTE Networks, Inc. ( 'FTE'), US Home Rentals LLC, FTE's wholly-owned subsidiary ('USHR'), and certain of FTE's affiliated entities (together with FTE and USHR, the 'Company') received a notice of default and election to accelerate (the 'Notice') from DLP Lending Fund, LLC (the 'Lender') in connection with various notes held by the Lender (assumed and refinanced as part of the Rental Home Portfolio Asset Purchase Agreement) in the aggregate principal of approximately $25,502,394 (the 'Notes'). The Notice informs the Company that the Notes are in default because of certain purported failures under the respective note agreements.

The Company is attempting to reach a negotiated settlement with the Lender and hopes to continue to work with the Lender to settle its obligations under the Notes. The Company intends to vigorously defend its position should a mutually amicable resolution prove unattainable; however, if the Lender exercises additional remedies, such remedies may have a material adverse effect on the Company's financial condition, cash flows and ability to continue to operate.