Document:

COLLATERAL
      AGENT AGREEMENT

    

    COLLATERAL
      AGENT AGREEMENT (this “Agreement”)
      dated
      as of September 12, 2007, among Eliezer Drew (the “Collateral
      Agent”),
      and
      the parties identified on Schedule A hereto (each, individually, a “Lender”
and
      collectively, the “Lenders”),
      who
      hold or will acquire promissory Notes issued or to be issued by Franklin Towers
      Enterprises Inc. (“Parent”), a Nevada corporation, at or about the date of this
      Agreement as described in the Security Agreement referred to in Section 1(a)
      below (collectively herein the “Notes”).

    

    WHEREAS,
      the Lenders have made, are making and will be making loans to Parent to be
      secured by certain collateral; and

    

    WHEREAS,
      it is desirable to provide for the orderly administration of such collateral
      by
      requiring each Lender to appoint the Collateral Agent, and the Collateral Agent
      has agreed to accept such appointment and to receive, hold and deliver such
      collateral, all upon the terms and subject to the conditions hereinafter set
      forth; and

    

    WHEREAS,
      it is desirable to allocate the enforcement of certain rights of the Lenders
      under the Notes for the orderly administration thereof.

    

    NOW,
      THEREFORE, in consideration of the premises set forth herein and for other
      good
      and valuable consideration, the parties hereto agree as follows:

    

    1. Collateral.

    

    (a) Contemporaneously
      with the execution and delivery of this Agreement by the Collateral Agent and
      the Lenders, (i) the Collateral Agent has or will have entered into a Security
      Agreement (“Security
      Agreement”)
      among
      the Collateral Agent, Parent, Chongqing Qiluo Textile Co., Ltd., a People’s
      Republic of China corporation (“Guarantor”),
      regarding the grant of a security interest in the Collateral
      to the
      Collateral Agent, for the benefit of the Lenders, (ii) the Guarantor will have
      executed and delivered a “Guaranty”
in
      favor of Lenders in connection with the Obligations (as defined in the Security
      Agreement), and (iii) Parent is issuing the Notes to the Lenders pursuant to
      a
“Subscription Agreement” dated at or about the date of this Agreement.
      Collectively, the Security Agreement, the Notes, Guaranty and Subscription
      Agreement and other agreements referred to therein are referred to herein as
      “Borrower
      Documents”.

    

    (b) The
      Collateral Agent hereby acknowledges that any Collateral held by the Collateral
      Agent is held for the benefit of the Lenders in accordance with this Agreement
      and the Borrower Documents. No reference to the Borrower Documents or any other
      instrument or document shall be deemed to incorporate any term or provision
      thereof into this Agreement unless expressly so provided.

    

    (c) The
      Collateral Agent is to distribute in accordance with the Borrower Documents
      any
      proceeds received from the Collateral which are distributable to the Lenders
      in
      proportion to their respective interests in the Obligations as defined in the
      Security Agreement.

    

    2. Appointment
      of the Collateral Agent.

    

    The
      Lenders hereby appoint the Collateral Agent (and the Collateral Agent hereby
      accepts such appointment) to take any action including, without limitation,
      the
      registration of any Collateral in the name of the Collateral Agent or its
      nominees prior to or during the continuance of an Event of Default (as defined
      in the Borrower Documents), the exercise of voting rights upon the occurrence
      and during the continuance of an Event of Default, 

     

    
      
        
        

      

      
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    the
      application of any cash collateral received by the Collateral Agent to the
      payment of the Obligations, the making of any demand under the Borrower
      Documents, the exercise of any remedies given to the Collateral Agent pursuant
      to the Borrower Documents and the exercise of any authority pursuant to the
      appointment of the Collateral Agent as an attorney-in-fact pursuant to the
      Security Agreement that the Collateral Agent deems necessary or proper for
      the
      administration of the Collateral pursuant to the Security Agreements. Upon
      disposition of the Collateral in accordance with the Borrower Documents, the
      Collateral Agent shall promptly distribute any cash or Collateral in accordance
      with Section 10.4 of the Security Agreement. Parent and Lenders must notify
      Collateral Agent in writing of the issuance of Notes to Lenders by Debtor.
      The
      Collateral Agent will not be required to act hereunder in connection with Notes
      the issuance of which was not disclosed in writing to the Collateral Agent
      nor
      will the Collateral Agent be required to act on behalf of any assignee of Notes
      without the written consent of Collateral Agent.

    

    3. Action
      by the Majority in Interest.

    

    (a) Certain
      Actions.
      Each of
      the Lenders covenants and agrees that only a Majority in Interest shall have
      the
      right, but not the obligation, to undertake the following actions (it being
      expressly understood that less than a Majority in Interest hereby expressly
      waive the following rights that they may otherwise have under the Borrower
      Documents):

    

    (i) Acceleration.
      If an
      Event of Default occurs, after the applicable cure period, if any, a Majority
      in
      Interest may, on behalf of all the Lenders (however each Lender may
      independently accelerate its own Note), instruct the Collateral Agent to provide
      to Debtors notice to cure such default and/or declare the unpaid principal
      amount of the Notes to be due and payable, together with any and all accrued
      interest thereon and all costs payable pursuant to such Notes;

    

    (ii) Enforcement.
      Upon
      the occurrence of any Event of Default after the applicable cure period, if
      any,
      a Majority in Interest may instruct the Collateral Agent to proceed to protect,
      exercise and enforce, on behalf of all the Lenders, their rights and remedies
      under the Borrower Documents against Debtors, and such other rights and remedies
      as are provided by law or equity; and

    

    (iii) Waiver
      of Past Defaults.
      A
      Majority in Interest may instruct the Collateral Agent to waive any Event of
      Default by written notice to Debtors, and the other Lenders, but not waive
      damages accrued or accruing until the effective date of such
      waiver.

    

    (b) Permitted
      Subordination and Release.
      A
      Majority in Interest may instruct the Collateral Agent to agree to release
      in
      whole or in part or to subordinate any Collateral to any claim or other actual
      or proposed security interest and may enter into any agreement with Debtors
      to
      evidence such subordination; provided,
      however,
      that
      subsequent to any such release or subordination, each Note shall remain
pari passu
      with the
      other Notes held by the Lenders.

    

    (c) Further
      Actions.
      A
      Majority in Interest may instruct the Collateral Agent to take any action that
      it may take under this Agreement by instructing the Collateral Agent in writing
      to take such action on behalf of all the Lenders.

    

    (d) Majority
      in Interest.
      For so
      long as any obligations remain outstanding on the Notes, Majority in Interest
      for the purposes of this Agreement and the Borrower Documents shall mean Lenders
      who hold not less than sixty-five percent (65%) of the outstanding principal
      amount of the Notes. 

    

    
      
        
        

      

      
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    4. Power
      of Attorney.

    

    (a) To
      effectuate the terms and provisions hereof, the Lenders hereby appoint the
      Collateral Agent as their attorney-in-fact (and the Collateral Agent hereby
      accepts such appointment) for the purpose of carrying out the provisions of
      this
      Agreement including, without limitation, taking any action on behalf of, or
      at
      the instruction of, the Majority in Interest at the written direction of the
      Majority in Interest and executing any consent authorized pursuant to this
      Agreement and taking any action and executing any instrument that the Collateral
      Agent may deem necessary or advisable (and lawful) to accomplish the purposes
      hereof.

    

    (b) All
      acts
      done under the foregoing authorization are hereby ratified and approved and
      neither the Collateral Agent nor any designee nor agent thereof shall be liable
      for any acts of commission or omission, for any error of judgment, for any
      mistake of fact or law except for acts of gross negligence or willful
      misconduct.

    

    (c) This
      power of attorney, being coupled with an interest, is irrevocable while this
      Agreement remains in effect.

    

    5. Expenses
      of the Collateral Agent.
      The
      Lenders shall pay any and all reasonable costs and expenses incurred by the
      Collateral Agent, including, without limitation, reasonable costs and expenses
      relating to all waivers, releases, discharges, satisfactions, modifications
      and
      amendments of this Agreement, the administration and holding of the Collateral,
      insurance expenses, and the enforcement, protection and adjudication of the
      parties’ rights hereunder by the Collateral Agent, including, without
      limitation, the reasonable disbursements, expenses and fees of the attorneys
      the
      Collateral Agent may retain, if any, each of the foregoing in proportion to
      their holdings of the Notes.

    

    6. Reliance
      on Documents and Experts.
      The
      Collateral Agent shall be entitled to rely upon any notice, consent,
      certificate, affidavit, statement, paper, document, writing or communication
      (which may be by telegram, cable, telex, telecopier, or telephone) reasonably
      believed by it to be genuine and to have been signed, sent or made by the proper
      person or persons, and upon opinions and advice of its own legal counsel,
      independent public accountants and other experts selected by the Collateral
      Agent.

    

    7. Duties
      of the Collateral Agent; Standard of Care.

    

    (a) The
      Collateral Agent’s only duties are those expressly set forth in this Agreement,
      and the Collateral Agent hereby is authorized to perform those duties in
      accordance with commercially reasonable practices. The Collateral Agent may
      exercise or otherwise enforce any of its rights, powers, privileges, remedies
      and interests under this Agreement and applicable law or perform any of its
      duties under this Agreement by or through its officers, employees, attorneys,
      or
      agents.

    

    (b) The
      Collateral Agent shall act in good faith and with that degree of care that
      an
      ordinarily prudent person in a like position would use under similar
      circumstances.

    

    (c) Any
      funds
      held by the Collateral Agent hereunder need not be segregated from other funds
      except to the extent required by law. The Collateral Agent shall be under no
      liability for interest on any funds received by it hereunder.

    

    8. Resignation.
      The
      Collateral Agent may resign and be discharged of its duties hereunder at any
      time by giving written notice of such resignation to the other parties hereto,
      stating the date such resignation is to take effect. Within five (5) days of
      the
      giving of such notice, a successor collateral agent shall be appointed by the
      Majority in Interest; provided,
      however,
      that if
      the Lenders are unable so to agree upon a successor within such time period,
      and

     

    
      
        
        

      

      
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    notify
      the Collateral Agent during such period of the identity of the successor
      collateral agent, the successor collateral agent may be a person designated
      by
      the Collateral Agent, and any and all fees of such successor collateral agent
      shall be the joint and several obligation of the Lenders. The Collateral Agent
      shall continue to serve until the effective date of the resignation or until
      its
      successor accepts the appointment and receives the Collateral held by the
      Collateral Agent but shall not be obligated to take any action hereunder. The
      Collateral Agent may deposit any Collateral with the Supreme Court of the State
      of New York for New York County or any such other court in New York State that
      accepts such Collateral.

    

    9. Exculpation.
      The
      Collateral Agent and its officers, employees, attorneys and agents, shall not
      incur any liability whatsoever for the holding or delivery of documents or
      the
      taking of any other action in accordance with the terms and provisions of this
      Agreement, for any mistake or error in judgment, for compliance with any
      applicable law or any attachment, order or other directive of any court or
      other
      authority (irrespective of any conflicting term or provision of this Agreement),
      or for any act or omission of any other person engaged by the Collateral Agent
      in connection with this Agreement, unless occasioned by the exculpated person’s
      own gross negligence or willful misconduct; and each party hereto hereby waives
      any and all claims and actions whatsoever against the Collateral Agent and
      its
      officers, employees, attorneys and agents, arising out of or related directly
      or
      indirectly to any or all of the foregoing acts, omissions and circumstances.
      

    

    10. Indemnification.
      The
      Lenders hereby agree to indemnify, reimburse and hold harmless the Collateral
      Agent and its directors, officers, employees, attorneys and agents, jointly
      and
      severally, from and against any and all claims, liabilities, losses and expenses
      that may be imposed upon, incurred by, or asserted against any of them, arising
      out of or related directly or indirectly to this Agreement or the Collateral,
      except such as are occasioned by the indemnified person’s own gross negligence
      or willful misconduct.

    

    11. Miscellaneous.

    

    (a) Rights
      and Remedies Not Waived.
      No act,
      omission or delay by the Collateral Agent shall constitute a waiver of the
      Collateral Agent’s rights and remedies hereunder or otherwise. No single or
      partial waiver by the Collateral Agent of any default hereunder or right or
      remedy that it may have shall operate as a waiver of any other default, right
      or
      remedy or of the same default, right or remedy on a future
      occasion.

    

    (b) Governing
      Law.
      This
      Agreement shall be governed by, and construed in accordance with, the laws
      of
      the State of New York without
      regard to conflicts
      of laws that
      would result
      in
      the application of the
      substantive laws of another
      jurisdiction.

    

    (c) Waiver
      of Jury Trial and Setoff; Consent to Jurisdiction; Etc.

    

    (i) In
      any
      litigation in any court with respect to, in connection with, or arising out
      of
      this Agreement or any instrument or document delivered pursuant to this
      Agreement, or the validity, protection, interpretation, collection or
      enforcement hereof or thereof, or any other claim or dispute howsoever arising,
      between the Collateral Agent and the Lenders or any Lender, then each Lender,
      to
      the fullest extent it may legally do so, (A) waives the right to interpose
      any
      setoff, recoupment, counterclaim or cross-claim in connection with any such
      litigation, irrespective of the nature of such setoff, recoupment, counterclaim
      or cross-claim, unless such setoff, recoupment, counterclaim or cross-claim
      could not, by reason of any applicable federal or state procedural laws, be
      interposed, pleaded or alleged in any other action; and (B) WAIVES
      TRIAL BY JURY IN CONNECTION WITH 

     

    
      
        
        

      

      
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    ANY
      SUCH LITIGATION AND ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH
      LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY
      DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES. EACH LENDER AGREES THAT
      THIS SECTION 11(c) IS A SPECIFIC AND MATERIAL ASPECT OF THIS AGREEMENT AND
      ACKNOWLEDGE THAT THE COLLATERAL AGENT WOULD NOT ENTER THIS AGREEMENT IF THIS
      SECTION 11(c) WERE NOT PART OF THIS AGREEMENT.

    

    (ii) Each
      Lender irrevocably consents to the exclusive jurisdiction of any State or
      Federal Court located within the County of New York, State of New York, in
      connection with any action or proceeding arising out of or relating to this
      Agreement or any document or instrument delivered pursuant to this Agreement
      or
      otherwise. In any such litigation, each Lender waives, to the fullest extent
      it
      may effectively do so, personal service of any summons, complaint or other
      process and agree that the service thereof may be made by certified or
      registered mail directed to such Lender at its address for notice determined
      in
      accordance with Section 11(e) hereof. Each Lender hereby waives, to the fullest
      extent it may effectively do so, the defenses of forum non conveniens and
      improper venue.

    

    (d) Admissibility
      of this Agreement.
      Each of
      the Lenders agrees that any copy of this Agreement signed by it and transmitted
      by telecopier for delivery to the Collateral Agent shall be admissible in
      evidence as the original itself in any judicial or administrative proceeding,
      whether or not the original is in existence.

    

    (e) Address
      for Notices.
      Any
      notice or other communication under the provisions of this Agreement shall
      be
      given in writing and delivered in person, by reputable overnight courier or
      delivery service, by facsimile machine (receipt confirmed) with a copy sent
      by
      first class mail on the date of transmissions, or by registered or certified
      mail, return receipt requested, directed to such party’s addresses set forth
      below (or to any new address of which any party hereto shall have informed
      the
      others by the giving of notice in the manner provided herein):

    

    In
      the
      case of the Collateral Agent, to:

    

    Eliezer
      Drew, Esq.

    c/o
      Grushko & Mittman, P.C.

    551
      Fifth
      Avenue, Suite 1601

    New
      York,
      New York 10176

    Fax:
      (212) 697-3575

    

    In
      the
      case of the Lenders, to:

    

    To
      the
      address and telecopier number set forth on 

    Schedule
      A hereto.

    

    In
      the
      case of Debtors, to:

    Franklin
      Towers Enterprises Inc.

    5
      Ash
      Drive

    Center
      Barnstead, New Hampshire 03225

    Attn:
      Kelly
      Fan, CEO

    Fax:
      (702)
      943-0714

    

    
      
        
        

      

      
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    With
      a
      copy by telecopier only to:

    

    David
      Lubin & Associates

    26
      East
      Hawthorne Avenue

    Valley
      Stream, NY 11580

    Attn:
      David Lubin, Esq.

    Fax:
      (516) 887-8250

    

    If
      to
      Debtor, Lender or Collateral Agent,

    with
      a
      copy by telecopier only to:

    

    Grushko
      & Mittman, P.C.

    551
      Fifth
      Avenue, Suite 1601

    New
      York,
      New York 10176

    Fax:
      (212) 697-3575

    

    (f) Amendments
      and Modification; Additional Lender.
      No
      provision hereof shall be modified, altered, waived or limited except by written
      instrument expressly referring to this Agreement and to such provision, and
      executed by the parties hereto. Any transferee of a Note who acquires a Note
      after the date hereof will become a party hereto by signing the signature page
      and sending an executed copy of this Agreement to the Collateral Agent and
      receiving a signed acknowledgement from the Collateral Agent.

    

    (g) Fee.
      Upon
      the occurrence of an Event of Default, the Lenders collectively shall pay the
      Collateral Agent the sum of $10,000 on account, to apply against an hourly
      fee
      of $350 to be paid to the Collateral Agent by the Lenders for services rendered
      pursuant to this Agreement. All payments due to the Collateral Agent under
      this
      Agreement including reimbursements must be paid when billed. The Collateral
      Agent may refuse to act on behalf of or make a distribution to any Lender who
      is
      not current in payments to the Collateral Agent. Payments required pursuant
      to
      this Agreement shall be pari passu
      to the
      Lenders’ interests in the Notes. The Collateral Agent is hereby authorized to
      deduct any sums due the Collateral Agent from Collateral in the Collateral
      Agent’s possession.

    

    (h) 
      Counterparts/Execution.
      This
      Agreement may be executed in any number of counterparts and by the different
      signatories hereto on separate counterparts, each of which, when so executed,
      shall be deemed an original, but all such counterparts shall constitute but
      one
      and the same instrument. This Agreement may be executed by facsimile signature
      and delivered by facsimile transmission.

    

    (i) Successors
      and Assigns.
      Whenever in this Agreement reference is made to any party, such reference shall
      be deemed to include the successors, assigns, heirs and legal representatives
      of
      such party. No party hereto may transfer any rights under this Agreement, unless
      the transferee agrees to be bound by, and comply with all of the terms and
      provisions of this Agreement, as if an original signatory hereto on the date
      hereof.

    

    (j) Captions:
      Certain Definitions.
      The
      captions of the various sections and paragraphs of this Agreement have been
      inserted only for the purposes of convenience; such captions are not a part
      of
      this Agreement and shall not be deemed in any manner to modify, explain, enlarge
      or restrict any of the provisions of this Agreement. As used in this Agreement
      the term “person”
shall
      mean and include an individual, a partnership, a joint venture, a corporation,
      a
      limited liability company, a trust, an unincorporated organization and a
      government or any department or agency thereof.

    

    
      
        
        

      

      
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    (k) Severability.
      In the
      event that any term or provision of this Agreement shall be finally determined
      to be superseded, invalid, illegal or otherwise unenforceable pursuant to
      applicable law by an authority having jurisdiction and venue, that determination
      shall not impair or otherwise affect the validity, legality or enforceability
      (i) by or before that authority of the remaining terms and provisions of this
      Agreement, which shall be enforced as if the unenforceable term or provision
      were deleted, or (ii) by or before any other authority of any of the terms
      and
      provisions of this Agreement.

    

    (l) Entire
      Agreement.
      This
      Agreement contains the entire agreement of the parties and supersedes all other
      agreements and understandings, oral or written, with respect to the matters
      contained herein.

    

    (m) Schedules.
      The
      Collateral Agent is authorized to annex hereto any schedules referred to
      herein.

    
 

    [THIS
      SPACE INTENTIONALLY LEFT BLANK]

    

    
      
        
        

      

      
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      IN
        WITNESS WHEREOF, the parties hereto have caused this Collateral Agent Agreement
        to be signed, by their respective duly authorized officers or directly, as
        of
        the date first written above.

      

      “LENDERS”

       

      
        	
                First
                  Mirage, Inc.

                 

                /s/
                  David A. Rapaport
                  
                  

                

                Name:
                  David A. Rapaport

                Title:
                  President

              	
                Generation
                  Capital Associates

                 

                /s/
                  David A. Rapaport
                  
                  

                

                Name:
                  David A. Rapaport

                Title:
                  Executive Vice President

              
	 	 
	
                The
                  Hart Organization Corp.

                 

                /s/
                  David A. Rapaport
                  
                  

                

                Name:
                  David A. Rapaport

                Title:
                  Executive Vice President

              	
                Truk
                  Opportunity Fund, LLC

                By:
                  Atoll Asset Management, LLC

                 

                /s/
                  Stephen Saltzstein
                  
                  

                

                Name:
                  Stephen Saltzstein

                Title:
                  

              
	 	 
	
                Truk
                  International Fund, LP

                By:
                  Atoll Asset Management, LLC

                 

                /s/
                  Stephen Saltzstein
                  
                  

                

                Name:
                  Stephen Saltzstein

                Title:

              	
                Alpha
                  Capital Anstalt

                 

                /s/
                  Konrad Ackerman
                  
                  

                

                Name:
                  Konrad Ackerman

                Title:
                  Director

              
	 	 
	
                Whalehaven
                  Capital Fund Limited

                 

                 

                /s/
                  Brian Mazzella
                  
                  

                

                Name:
                  Brian Mazzella

                Title:
                  President

              	
                Professional
                  Offshore Opportunity Fund, Ltd.

                 

                /s/
                  Marc K. Swickle
                  
                  

                

                Name:
                  Marc K. Swickle

                Title:
                  Manager

              
	 	 
	 	
                /s/ Eliezer Drew
                  
                  

                

                Eliezer Drew - Collateral
                  Agent

              

      

       

      Acknowledged
        and Agreed:

      

      “PARENT/DEBTOR”

      FRANKLIN
        TOWERS ENTERPRISES INC.

      

      By:
        /s/
        Kelly
        Fan

        
          

        

            Name:
          Kelly
          Fan

            Title:
          Chief
          Executive Officer

      

      
 

      “GUARANTOR/DEBTOR”

      CHONGQING
        QILUO TEXTILE CO., LTD.

      a
        People’s Republic of China corporation    

      

      By:
        /s/
Ding
        Liang Kuang

        
          

        

      

      Its:
        Chief Executive Officer

      

      

      This
        Collateral Agent Agreement may be signed by facsimile signature and delivered
        by
        confirmed facsimile transmission.

       

    

    
      
        
        

      

      
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    SCHEDULE
      A TO COLLATERAL AGENT AGREEMENT

     

    
      	
              LENDER

            	 	
              PRINCIPAL
                AMOUNT OF NOTE TO BE ISSUED ON THE CLOSING
                DATE

            
	 	 	 
	 	 	 
	 	 	 

    

     

    
      
        
        

      

      
        9STOCK
      PLEDGE AGREEMENT

     

    STOCK
      PLEDGE AGREEMENT
      (this
“Agreement”),
      dated
      September 12, 2007 by and between Xinshengxiang Industrial Development Co.,
      Ltd.
      (the “Pledgor”);
      the
      Lenders identified on Schedule A hereto (collectively, “Pledgee”);
      and
      the Collateral Agent;

     

    WITNESSETH:

     

    WHEREAS,
      the
      Pledgee will lend up to $5,000,000 to Franklin Towers Enterprises Inc., a Nevada
      corporation (“Borrower”),
      with
      such loan to be evidenced by one or more promissory notes (“Note”);
      and

     

    WHEREAS,
      the
      Pledgor is a shareholder of Borrower, and it is to his benefit and advantage
      that the loans be made and the Notes be issued; and

     

    WHEREAS,
      in
      order
      to induce Pledgee to make the loan and accept the Note, the Pledgor has agreed
      to secure all of the Borrower’s obligations under the Notes with the grant to
      the Collateral Agent of a first priority security interest in shares of $.0001
      Common Stock of the Borrower which Common Stock is owned of record and
      beneficially controlled by the Pledgor.

     

    NOW,
      THEREFORE,
      in
      consideration of the premises and the mutual covenants herein contained, and
      for
      other good and valuable consideration, the receipt and sufficiency of which
      are
      hereby acknowledged, the parties hereby agree as follows:

     

    1. Definitions.

     

    The
      following terms shall have the following meanings wherever used in this
      Agreement: 

     

    · “Collateral
      Agent” shall mean the person appointed pursuant to the Collateral Agent
      Agreement.

     

    · “Collateral
      Agent Agreement” shall mean the agreement dated at or about the date of this
      Agreement, entered into by the parties hereto, Borrower and the Collateral
      Agent
      pursuant to which the Collateral Agent was appointed to act on behalf of the
      Pledgees.

     

    · “Event
      of Default”
shall
      have the meaning given thereto in the Notes.

     

    · “Obligations”
shall
      mean all principal and interest and other payments which may be due and payable
      under the Notes, whether upon stated maturity, by acceleration, or otherwise,
      outstanding at any time and under this Agreement, and pursuant to the
“Transaction Documents” as defined in the “Subscription Agreement” pursuant to
      which the Notes are being issued.

     

    · “Pledged
      Stock”
shall
      mean in the aggregate, 17,100,000 shares of Common Stock of the Company, $0.0001
      par value.

     

    · “Satisfaction
      Date”
shall
      mean that date on which all of the Obligations have been paid or otherwise
      satisfied in full.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    · “Reissue
      Date”
shall
      mean the date that the Pledgor distributes the Pledged Stock to its
      shareholders.

     

    2.
      Pledge
      of the Pledged Stock/Additional Deposits.

     

    (a)
      As
      security for the due and timely payment and performance of all of the
      Obligations, the Pledgor pledges to the Pledgees, and grants to the Pledgees
      a
      first priority lien and security interest in, all of the Pledged Stock (as
      same
      are constituted from time to time), together with all cash dividends, stock
      dividends, interest, profits, premiums, redemptions, warrants, subscription
      rights, options, substitutions, exchanges and other distributions now or
      hereafter made on the Pledged Stock and all cash and non-cash proceeds thereof,
      until the earlier of the Reissue Date or the Satisfaction Date. The Pledged
      Stock and all property at any time pledged to the Pledgee hereunder or in which
      the Pledgee is granted a security interest (whether described herein or not)
      and
      all income therefrom and proceeds thereof are herein included in the definition
      of Pledged Stock.

     

    (b)
      In
      furtherance of the pledge hereunder, the Pledgor is, concurrently herewith,
      delivering to the Collateral Agent, the certificates representing all of the
      Pledged Stock, each of which now remains in the name of the Pledgor and
      accompanied by appropriate undated stock powers duly endorsed in blank by the
      Pledgor bearing “medallion” signature guarantees.

     

    (c)
      If,
      while
      this Agreement is in effect, the Pledgor becomes entitled to receive or receives
      any stock certificate (including, without limitation, any certificate
      representing a stock dividend or a distribution in connection with any
      reclassification, increase or reduction of capital or issued in connection
      with
      any reorganization), option or rights, whether as an addition to, in
      substitution of, or in exchange for, any Pledged Stock or otherwise, the Pledgor
      agrees to accept the same as agent for the Pledgee, to hold the same in trust
      on
      behalf of and for the benefit of the Pledgee, and to deliver the same forthwith
      to the Pledgee in the exact form received, with the endorsement of the Pledgor
      when necessary and/or appropriate undated “medallion” stock or other powers duly
      executed in blank, to be held by the Pledgee, subject to the terms hereof,
      as
      additional collateral security for the Obligations. Any sums paid on or in
      respect of the Pledged Stock on the liquidation or dissolution of the Pledgor
      shall be paid over to the Pledgee, to be held by the Pledgee, subject to the
      terms and conditions hereof, as additional collateral security for the
      Obligations.

    

    3.
      Retention
      of the Pledged Stock.

     

    (a)
      Except
      as
      otherwise provided herein, the Pledgee and Collateral Agent shall have no
      obligation with respect to the Pledged Stock, except to use reasonable care
      in
      the custody and preservation thereof, to the extent required by
      law.

     

    (b)
      The
      Collateral Agent shall hold the Pledged Stock in the form in which same are
      delivered herewith, unless and until there shall occur an Event of
      Default.

     

    4.
      Rights
      of the Pledgor.
      Throughout the term of this Agreement, so long as an Event of Default has not
      occurred and is continuing, the Pledgor shall have the right to vote the Pledged
      Stock in all matters presented to the stockholders of the Borrower for vote
      thereon, except in a manner inconsistent with the terms of this Agreement or
      detrimental to the interests of the Pledgee. 

     

    Notwithstanding
      anything contained herein to the contrary, the Pledgee agrees and acknowledges
      that the Pledgor shall be distributing the Pledged Stock to its shareholders
      whereupon this Agreement shall be automatically terminated and have no further
      force and effect.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    5.
      Event
      of Default; Power of Attorney.

     

    (a)
      Upon
      the
      occurrence and during the continuance of any Event of Default, the Collateral
      Agent shall have the right to: (i) exercise all voting and corporate rights
      of,
      and all rights of conversion, exchange, subscription or any other rights,
      privileges or options pertaining to, any Pledged Stock as if the Collateral
      Agent were the absolute owner thereof, including (without limitation) the right
      to exchange, at its discretion, any and all of the Pledged Stock upon the
      merger, consolidation, reorganization, recapitalization or other readjustment
      of
      the Pledgor or upon the exercise by the Pledgor or the Pledgee of any right,
      privilege or option pertaining to any of the Pledged Stock and, in connection
      therewith, to deposit and deliver any and all of the Pledged Stock with any
      committee, depository, transfer agent, registrar or other designated agency
      on
      such terms and conditions as the Pledgee may determine, all without liability
      except to account for property actually received by it; (ii) apply any funds
      or
      other property received in respect of the Pledged Stock to the Obligations,
      and
      receive in its own name any and all further distributions which may be paid
      in
      respect of the Pledged Stock, all of which shall, upon receipt by the Collateral
      Agent, be applied to the Obligations; (iii) transfer all or any portion of
      the
      Pledged Stock (as determined by the Pledgee in its discretion) on the books
      of
      the Pledgor to and in the name of the Pledgee, Collateral Agent or such other
      person or persons as the Pledgee may designate; (iv) effect any sale, transfer
      or disposition of all or any portion of the Pledged Stock and in furtherance
      thereof, take possession of and endorse any and all checks, drafts, bills of
      exchange, money orders or other documents and instruments received on account
      of
      the Pledged Stock; (v) collect, sue for and give acquittance for any money
      due
      on account of any of the foregoing; and (vi) take any and all other action
      contemplated by this Agreement, or as otherwise permitted by law, or as the
      Pledgee and/or Collateral Agent may reasonably deem necessary or appropriate,
      in
      order to accomplish the purposes of this Agreement.

     

    (b)
      In
      furtherance of the foregoing powers of the Pledgee, the Pledgor hereby
      authorizes and appoints the Collateral Agent, with full powers of substitution,
      as the true and lawful attorney-in-fact of the Pledgor, in his name, place
      and
      stead, to take any and all such action as the Collateral Agent, in its sole
      discretion, may deem necessary or appropriate in furtherance of the exercise
      of
      the aforesaid powers. Such power of attorney shall be coupled with an interest,
      and shall be irrevocable until the Satisfaction Date. Without limitation of
      the
      foregoing, such power of attorney shall not in any manner be affected or
      impaired by reason of any act of the Pledgor or by operation of law. Nothing
      herein contained, however, shall be deemed to require or impose any duty upon
      the Pledgee, and/or Collateral Agent to exercise any of the rights or powers
      granted herein.

     

    (c)
      The
      foregoing rights and powers granted to the Pledgee and Collateral Agent, and
      the
      foregoing power of attorney, shall be fully binding upon any person who may
      acquire any beneficial interest in any of the Pledged Stock or any other
      property held or received by the Pledgee and/or Collateral Agent
      hereunder.

     

    6.
      Foreclosure;
      Sale of Pledged Stock.

     

    (a) Without
      limitation of paragraph 5 above, in the event that the Collateral Agent shall
      make any sale or other disposition of any or all of the Pledged Stock following
      an Event of Default, the Pledgee may also:

     

    (i) offer
      and
      sell all or any portion of the Pledged Stock publicly through a registered
      broker-dealer, or by means of a private placement restricting the offer or
      sale
      to a limited number of prospective purchasers who meet such suitability
      standards as the Collateral Agent and its counsel may deem appropriate, and
      who
      may be required to represent that they are purchasing Pledged Stock for
      investment and not with a view to distribution;

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (ii) sell
      any
      or all of the Pledged Stock upon credit or for future delivery, without being
      in
      any way liable for failure of the purchaser to pay for the subject Pledged
      Stock; and

     

    (iii) 
      receive
      and collect the net proceeds of any sale or other disposition of any Pledged
      Stock, and apply same in such order and to such of the Obligations (including
      the customary costs and expenses of the sale or disposition of the Pledged
      Stock) as the Collateral Agent may, in its absolute discretion, deem
      appropriate.

     

    (b) Upon
      any
      sale of any of the Pledged Stock in accordance with this Agreement, the
      Collateral Agent shall have the right to assign, transfer and deliver the
      subject Pledged Stock to the purchaser(s) thereof, and each such purchaser
      shall
      be entitled to hold such Pledged Stock absolutely free from any right or claim
      of the Pledgor and/or any other person claiming any beneficial interest in
      the
      Pledged Stock, including any equity of redemption (which right and all other
      such rights are hereby waived by the Pledgor to the fullest extent permitted
      by
      law).

     

    (c) Following
      the occurrence and during the existence of an Event of Default, Pledgor and
      Borrower will cooperate and provide such certificate, resolutions,
      representations, legal opinions and all other matters necessary to facilitate
      a
      transfer or sale of any part of the Pledged Stock pursuant to Rule 144. Pledgor
      and Borrower are unaware of any impediment to the resale of the Pledged Stock
      in
      reliance on Rule 144 by the Pledgee upon an Event of Default. Pledgor and
      Borrower will not take any action that would impede or limit the Pledgee’s
      ability to sell all the Pledged Stock upon an Event of Default, pursuant to
      Rule
      144. For so long as any Pledged Stock is subject to this Agreement, the Pledgor
      will not sell any security of Borrower which sale would or could be aggregated
      with sales by the Pledgee and/or Collateral Agent pursuant to Rule 144. Borrower
      shall issue instructions to its transfer agent to comply with the foregoing
      sentence. Borrower will not permit the transfer of any security of Borrower
      if
      such transfer would or could aggregate for purposes of Rule 144 with sales
      of
      the Pledged Stock by the Pledgor or any sales of the Pledged Stock. Pledgor
      represents and warrants that he has not sold any security of Borrower during
      the
      ninety (90) days prior to the date of this Agreement. Borrower acknowledges
      that
      upon transfer of the Pledged Stock to the Pledgee or other transferee, the
      Pledgee’s holding period under subsections (d) and (k) of Rule 144 may be
“tacked” with the Pledgor’s holding period. Pledgor and Borrower further
      represent that the Notes were issued in a bona fide
      loan
      transaction. Schedule A hereto sets forth the holding periods of the components
      of the Pledged Stock as calculated pursuant to Rule 144.

     

    (d) Nothing
      herein contained shall be deemed to require the Pledgee and/or Collateral Agent
      to effect any sale or disposition of any Pledged Stock at any time, or to
      consummate any proposed public or private sale at the time and place at which
      same was initially called. It is the intention of the parties hereto that the
      Pledgee and Collateral Agent shall, subject to any further conditions imposed
      by
      this Agreement, at all times following the occurrence of an Event of Default,
      have the right to use or deal with the Pledged Stock as if the Pledgee and/or
      Collateral Agent were the outright owner thereof, and to exercise any and all
      rights and remedies, as a secured party in possession of collateral or
      otherwise, under any and all provisions of law.

    

    (e) The
      Pledgor may take action and exercise rights in connection with any portion
      of
      the Pledged Stock regardless of the existence of any other security for the
      Obligations.

    

    7.
      Covenants,
      Representations and Warranties.

     

    In
      connection with the transactions contemplated by this Agreement, and knowing
      that the Pledgee is and shall be relying hereon, the Pledgor hereby covenants,
      represents and warrants that:

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (a)
      the
      Pledged Stock has been and will be duly and validly issued, is and will be
      fully
      paid and non-assessable, and is and will be owned by the Pledgor free and clear
      of any and all restrictions, pledges, liens, encumbrances or other security
      interests of any kind, save and except for the pledge to the Collateral Agent
      pursuant to this Agreement; 

     

    (b)
      there
      are
      and will be no options, warrants or other rights in respect of the sale,
      transfer or other disposition of any of the Pledged Stock by the Pledgor, and
      the Pledgor has the absolute right to pledge the Pledged Stock hereunder without
      the necessity of any consent of any Person; 

    

    (c)
      neither
      the execution or delivery of this Agreement, nor the consummation of the
      transactions contemplated hereby, nor the compliance with or performance of
      this
      Agreement by the Pledgor, conflicts with or will result in the breach or
      violation of or a default under the terms, conditions or provisions of (i)
      any
      mortgage, security agreement, indenture, evidence of indebtedness, loan or
      financing agreement, or other agreement or instrument to which the Pledgor
      is a
      party or by which the Pledgor is bound, or (ii) any provision of law, any order
      of any court or administrative agency, or any rule or regulation applicable
      to
      the Pledgor;

     

    (d)
      this
      Agreement has been duly executed and delivered by the Pledgor, and constitutes
      the legal, valid and binding obligation of the Pledgor, enforceable against
      the
      Pledgor in accordance with its terms;

     

    (e)
      there
      are
      no actions, suits or proceedings pending or threatened against or affecting
      the
      Pledgor that involve or relate to the Pledged Stock; and

     

    (f) upon
      execution of this Agreement by Pledgor, the Pledgee shall have the senior
      security interest in the Pledged Stock.

    

    8. UCC
      Filings.
      Pledgor
      hereby grants to Collateral Agent the right and authority to file UCC Financing
      Statements in Nevada, New York and any other jurisdiction in the sole discretion
      of Pledgee to memorialize the security interest herein granted.

    

    9. Return
      of the Pledged Stock.
      To the
      extent that the Pledgee and/or Collateral Agent shall not previously have taken,
      acquired, sold, transferred, disposed of or otherwise realized value on the
      Pledged Stock in accordance with this Agreement, at the Satisfaction Date,
      any
      security interest in the Pledged Stock shall automatically terminate, cease
      to
      exist and be released, and the Pledgee and/or Collateral Agent shall forthwith
      return the Pledged Stock to and in the name of the Pledgor, and file, at
      Pledgor’s expenses, releases of Collateral Agent’s security interest in the
      Pledged Stock.

    

    10. Expenses
      of the Pledgee.
      All
      expenses incurred by the Pledgee and/or Collateral Agent including but not
      limited to reasonable attorneys’ fees) in connection with any actual or
      attempted sale or other disposition of Pledged Stock hereunder shall be
      reimbursed to the Pledgee by the Pledgor (jointly and severally) on demand,
      or,
      at the Pledgee’s option, such expenses may be added to the Obligations and shall
      be payable on demand.

    

    11. Further
      Assurances.
      From
      time to time hereafter, each party shall take any and all such further action,
      and shall execute and deliver any and all such further documents and/or
      instruments, as any other party may request in order to accomplish the purposes
      of and fulfill the parties’ obligations under this Agreement, in order to enable
      the Collateral Agent to exercise any of its rights hereunder, and/or in order
      to
      secure more fully the Collateral Agent’s interest in the Pledged
      Stock.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    12. Miscellaneous.

    

    (a) All
      notices, demands, requests, consents, approvals, and other communications
      required or permitted hereunder shall be in writing and, unless otherwise
      specified herein, shall be (i) personally served, (ii) deposited in the mail,
      registered or certified, return receipt requested, postage prepaid, (iii)
      delivered by reputable air courier service with charges prepaid, or (iv)
      transmitted by hand delivery, telegram, or facsimile, addressed as set forth
      below or to such other address as such party shall have specified most recently
      by written notice. Any notice or other communication required or permitted
      to be
      given hereunder shall be deemed effective (a) upon hand delivery or delivery
      by
      facsimile, with accurate confirmation generated by the transmitting facsimile
      machine, at the address or number designated below (if delivered on a business
      day during normal business hours where such notice is to be received), or the
      first business day following such delivery (if delivered other than on a
      business day during normal business hours where such notice is to be received)
      or (b) on the second business day following the date of mailing by express
      courier service, fully prepaid, addressed to such address, or upon actual
      receipt of such mailing, whichever shall first occur. The addresses for such
      communications shall be: (i) if to the Pledgor, to: c/o
      Franklin
      Towers Enterprises Inc., 5 Ash Drive, Center Barnstead, New Hampshire 03225,
      Attn: Kelly Fan, telecopier:
      (702) 943-0714, with a copy by telecopier only to: David Lubin & Associates,
      26 East Hawthorne Avenue, Valley Stream, NY 11580, Attn: David Lubin, Esq.,
      telecopier: (516) 887-8250, (ii) if to the Pledgees, to: the addresses and
      telecopier numbers identified on Schedule A hereto,
      with an
      additional copy by telecopier only to: Grushko & Mittman, P.C., 551 Fifth
      Avenue, Suite 1601, New York, New York 10176, telecopier: (212) 697-3575, and
      (iii) if to the Collateral Agent, to: Eliezer Drew, Esq., Grushko & Mittman,
      P.C., 551 Fifth Avenue, Suite 1601, New York, New York 10176, telecopier: (212)
      697-3575.

     

    (b) If
      any
      notice to Pledgor of the sale or other disposition of Pledged Stock is required
      by then applicable law, five (5) business days prior written notice (which
      Pledgor agrees is reasonable notice within the meaning of Section 9-504(3)
      of
      the Uniform Commercial Code) to Pledgor of the time and place of any sale of
      Pledged Stock which Pledgor agrees may be by private sale. The rights granted
      in
      this Section are in addition to any and all rights available to Pledgee under
      the Uniform Commercial Code.

    

    (c) The
      laws
      of the State of New York including but not limited to Article 9 of the Uniform
      Commercial Code as in effect from time to time, shall govern the construction
      and enforcement of this Agreement and the rights and remedies of the parties
      hereto. The parties hereby consent to the exclusive jurisdiction of all courts
      sitting in the State and County of New York, in connection with any action
      or
      proceeding under or relating to this Agreement, and waive trial by jury in
      any
      such action or proceeding.

     

    (d) This
      Agreement shall be binding upon and shall inure to the benefit of the parties
      hereto and their respective heirs, executors, administrators, personal
      representatives, successors and permitted assigns. The Pledgor shall not,
      however, assign any of its or his rights or obligations hereunder without the
      prior written consent of the Pledgee, and the Pledgee shall not assign its
      rights hereunder without simultaneously assigning its obligations hereunder
      to
      the subject assignee. Except as otherwise referred to herein, this Agreement,
      and the documents executed and delivered pursuant hereto, constitute the entire
      agreement between the parties relating to the specific subject matter
      hereof.

     

    (e) Neither
      any course of dealing between the Pledgor and the Pledgee nor any failure to
      exercise, or any delay in exercising, on the part of the Pledgee and/or
      Collateral Agent, any right, power or privilege hereunder shall operate as
      a
      waiver thereof; nor shall any single or partial exercise of any right, power
      or
      privilege operate as a waiver of any other exercise of such right, power or
      privilege or any other right, power or privilege.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (f) The
      Pledgee’s and Collateral Agent’s rights and remedies, whether hereunder or
      pursuant to any other agreements or by law or in equity, shall be cumulative
      and
      may be exercised singly or concurrently.

     

    (g) No
      change, amendment, modification, waiver, assignment of rights or obligations,
      cancellation or discharge hereof, or of any part hereof, shall be valid unless
      the Pledgee shall have consented thereto in writing.

     

    (h) The
      captions and paragraph headings in this Agreement are for convenience of
      reference only, and shall not in any way define, limit or describe the
      construction, terms or provisions of this Agreement.

     

    (i) If
      any
      provision of this Agreement is held invalid or unenforceable, either in its
      entirety or by virtue of its scope or application to given circumstances, such
      provision shall thereupon be deemed modified only to the extent necessary to
      render same valid, or not applicable to given circumstances, or excised from
      this Agreement, as the situation may require, and this Agreement shall be
      construed and enforced as if such provision had been included herein as so
      modified in scope or application, or had not been included herein, as the case
      may be.

     

    (j) All
      of
      the rights granted to the Pledge hereunder will be exercised by the Collateral
      Agent on behalf of Pledgee, pursuant to the Collateral Agent
      Agreement.

     

    (k) This
      Agreement may be executed in any number of counterparts and by the different
      signatories hereto on separate counterparts, each of which, when so executed,
      shall be deemed an original, but all such counterparts shall constitute but
      one
      and the same instrument. This Agreement may be executed by facsimile signature
      and delivered by facsimile transmission.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

      IN
        WITNESS WHEREOF,
        the
        parties hereto have executed this Stock Pledge Agreement on and as of the
        date
        first set forth above.

       

      PLEDGOR:      

      

      XINSHENGXIANG
        INDUSTRIAL DEVELOPMENT CO., LTD.

      

      /s/
        Ding
        Liang Kuang

        
          

        

      

      By:
        Ding
        Liang Kuang

      Its:
        Manager

       

       

      COLLATERAL
        AGENT:

      

      /s/
        Eliezer Drew

        
          

        

      

      Eliezer
        Drew

      

      

      ACKNOWLEDGEMENT:

      

      Franklin
        Towers Enterprises Inc. acknowledge and agrees to be bound by the terms of
        Section 5(d) of this Stock Pledge Agreement and will not take or allow any
        action contrary to the terms of this Stock Pledge Agreement that would impair
        the value of the Pledged Stock or Pledgees’ interests therein.

      
        	 	 	 
	 	FRANKLIN
                TOWERS
                ENTERPRISES INC.
	 
 	 
 	 
 
	 	By:  	/s/
                Kelly Fan 
	 	
                
Name:
                Kelly Fan
	 	Title:
                Chief Executive Officer 

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      A TO STOCK PLEDGE AGREEMENT

     

    
      	
              LENDER

            	
              PRINCIPAL
                AMOUNT 

              OF
                NOTE TO BE ISSUED ON THECLOSING DATE

            
	 	 
	 	 
	 	 

    

    

    
      
        
        

      

      
        9

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