Document:

THIS
        NOTE AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT
        BEEN
        REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS NOTE AND THE
        COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE MAY NOT BE SOLD, OFFERED
        FOR
        SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
        STATEMENT AS TO THIS NOTE UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY
        SATISFACTORY TO FRANKLIN TOWERS ENTERPRISES INC. THAT SUCH REGISTRATION IS
        NOT
        REQUIRED.

      

      
        	
                Principal
                  Amount: $____________

              	
                Issue
                  Date: September ___, 2007

              

      

      

      SECURED
        CONVERTIBLE PROMISSORY NOTE

      

      FOR
        VALUE
        RECEIVED, FRANKLIN TOWERS ENTERPRISES INC., a Nevada corporation (hereinafter
        called “Borrower”), hereby promises to pay to ____________________________,
        ___________________________________________________________, (the “Holder”) or
        its registered assigns or successors in interest or order, without demand,
        the
        sum of ____________________________ Dollars ($__________) (“Principal Amount”),
        on August ___, 2009 (the “Maturity Date”), if not sooner paid.

      

      This
        Note
        has been entered into pursuant to the terms of a subscription agreement between
        the Borrower, the Holder and certain other holders (the “Other Holders”) of
        convertible promissory notes (the “Other Notes”), dated of even date herewith
        (the “Subscription Agreement”), and shall be governed by the terms of such
        Subscription Agreement. Unless otherwise separately defined herein, all
        capitalized terms used in this Note shall have the same meaning as is set
        forth
        in the Subscription Agreement. The following terms shall apply to this
        Note:

      

      ARTICLE
        I

      

      INTEREST;
        AMORTIZATION

      

      1.1. Interest
        Rate.
        Subject
        to Section 5.7 hereof, interest payable on this Note shall accrue on the
        outstanding Principal Amount at a rate per annum (the “Interest Rate”) of ten
        percent (10%). Interest on the outstanding Principal Amount shall accrue
        from
        the date of this Note and shall be payable in arrears together with, at the
        same
        time and in the same manner as payment of Principal Amount and on the Maturity
        Date, whether by acceleration or otherwise. For purposes of calculating the
        conversion price pursuant to Section 2.1(ii)(B), each interest due date shall
        be
        deemed the Repayment Date, as defined in Section 1.2.

      

      1.2. Minimum
        Monthly Principal Payments.
        Amortizing payments of the outstanding Principal Amount of this Note and
        accrued
        interest shall commence on the sixth month anniversary date of this Note
        and on
        the same day of each month thereafter (each a “Repayment Date”) until the
        Principal Amount has been repaid in full, whether by the payment of cash
        or by
        the conversion of such Principal Amount and interest into Common Stock pursuant
        to the terms hereof. Subject to Section 2.1 and Article 3 below, on each
        Repayment Date, the Borrower shall make payments to the Holder in an amount
        equal to 5.55% of the initial Principal Amount, the amount of accrued but
        unpaid
        or unconverted interest on the entire Principal Amount as of such Repayment
        Date, and any other amounts which are then owing under this Note that have
        not
        been paid
        (collectively, the “Monthly Amount”). Amounts of conversions of Principal Amount
        and made by the Holder or Borrower pursuant to Section 2.1 or Article III
        and
        amounts redeemed pursuant to Section
        2.3 of this Note shall
        be
        applied first against outstanding fees and damages, then outstanding already
        payable accrued interest and then to Principal Amounts of not yet due Monthly
        Amounts commencing with the last Monthly Amount next payable and thereafter
        to
        Monthly Amounts in reverse chronological order. Any Principal Amount, interest
        and any other sum arising under this Note and the Subscription Agreement
        that
        remains outstanding on the Maturity Date shall be due and payable on the
        Maturity Date.

      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      1.3.
        Default
        Interest Rate.
        Following the occurrence and during the continuance of an Event of Default
        (as
        defined in Article IV), which, if susceptible to cure is not cured within
        five
        (5) days, otherwise then from the first date of such occurrence, the annual
        interest rate on this Note shall (subject to Section 4.7) be fifteen percent
        (15%). Such interest shall be due and payable together with regular scheduled
        Monthly Amounts. 

      

      ARTICLE
        II

      

      CONVERSION
        AND REPAYMENT

      

        2.1.
        Payment
        of Monthly Amount in Cash or Common Stock.
        Subject
        to Section 3.2 hereof, the Borrower shall pay the Monthly Amount, at the
        Borrower’s election, in either of the following manners: (i) in cash in an
        amount equal to 115% of the Principal Amount component of the Monthly Amount
        and
        100% of all other components of the Monthly Amount within three (3) business
        days after the applicable Repayment Date, or (ii) in registered Common Stock
        at
        an applied conversion rate equal to the lesser of (A) the Fixed Conversion
        Price
        (as defined in section 3.1 hereof), or (B) seventy-five percent (75%) of
        the
        average of the closing bid price of the Common Stock as reported by Bloomberg
        L.P. for the Principal Market for the five trading days preceding such Repayment
        Date (as such amount may be adjusted as described herein). Amounts paid with
        shares of Common Stock must be delivered to the Holder not later than three
        (3)
        business days after the applicable Repayment Date. The Borrower must send
        notice
        to the Holder by confirmed telecopier not later than 6:00 PM, New York City
        time
        on the twenty-second trading day preceding a Repayment Date notifying Holder
        of
        Borrower’s election to pay the Monthly Amount in cash or Common Stock. The
        Notice must state the amount of the Monthly Amount including a description
        of
        the components of such Monthly Amount and include supporting calculations.
        Elections by the Borrower must be made to all Other Holders in proportion
        to the
        relative Note principal held by the Holder and the Other Holders. If such
        notice
        is not timely sent or if the Monthly Redemption Amount is not timely delivered
        or if the Borrower elects to pay the Monthly Amount with Common Stock, then
        Holder shall have the right, instead of the Company, to elect in writing,
        whether to be paid in cash or Common Stock or defer the payment of the relevant
        Monthly Amount until three (3) business days after demand therefore by the
        Holder. Any payments due after the Holder makes its election shall be due
        the
        later of three (3) days after written notice by the Holder or the applicable
        Repayment Date. The conversion price in connection with such deferred Monthly
        Amount shall be the lowest conversion price that could be calculated for
        any
        Repayment Date from the Repayment Date for such deferred Monthly Amount until
        such Monthly Amount is actually paid. Such Holder’s election shall not be
        construed to be a waiver of any default by Borrower relating to non-timely
        compliance by Borrower with any of its obligations under this Note.

      

      2.2. No
        Effective Registration.
        Notwithstanding anything to the contrary herein, no amount payable hereunder
        may
        be
        paid in
        shares
        of Common
        Stock by
        the Borrower without the Holder’s consent unless (a) either (i) an effective
        current Registration Statement covering the shares of Common Stock to be
        issued
        in satisfaction of such obligations exists, or (ii) an exemption from
        registration of the resale of shares of Common Stock to be issued in
        satisfaction of such obligations is available pursuant to Rule 144(k) of
        the
        1933 Act, (b) no Event of Default hereunder (or an event that with the passage
        of time or the giving of notice could become an Event of Default), has occurred
        or is otherwise waived in writing by the Holder in whole or in part at the
        Holder’s option, and (c) the Principal Market is either the OTC Bulletin Board,
        American Stock Exchange, Nasdaq Capital Market, Nasdaq National Market, or
        New
        York Stock Exchange (“Listing Condition”) from and after thirty (30) days prior
        to a Repayment Date.

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      2.3. Optional
        Redemption of Principal Amount.
        Provided an Event of Default or an event which with the passage of time or
        the
        giving of notice could become an Event of Default has not occurred, whether
        or
        not such Event of Default has been cured, the Borrower will have the option
        of
        prepaying the outstanding Principal amount of this Note (“Optional Redemption”),
        in whole or in part, by paying to the Holder a sum of money equal to one
        hundred
        and thirty percent (130%) of the Principal amount to be redeemed, together
        with
        accrued but unpaid interest thereon and any and all other sums due, accrued
        or
        payable to the Holder arising under this Note or any Transaction Document
        through the Redemption Payment Date as defined below (the “Redemption Amount”).
        Borrower’s election to exercise its right to prepay must be by notice in writing
        (“Notice of Redemption”). The Notice of Redemption shall specify the date for
        such Optional Redemption (the “Redemption Payment Date”), which date shall be
        thirty (30) business days after the date of the Notice of Redemption (the
        “Redemption Period”). A Notice of Redemption shall not be effective with respect
        to any portion of the Principal Amount for which the Holder has a pending
        election to convert, or for conversions initiated or made by the Holder during
        the Redemption Period. On the Redemption Payment Date, the Redemption Amount,
        less any portion of the Redemption Amount against which the Holder has exercised
        its conversion rights, shall be paid in good funds to the Holder. In the
        event
        the Borrower fails to pay the Redemption Amount on the Redemption Payment
        Date
        as set forth herein, then (i) such Notice of Redemption will be null and
        void,
        (ii) Borrower will have no right to deliver another Notice of Redemption,
        and
        (iii) Borrower’s failure may be deemed by Holder to be a non-curable Event of
        Default. A Redemption Notice may be given only at a time a Registration
        Statement is effective. A Notice of Redemption may not be given nor may the
        Borrower effectuate a Redemption without the consent of the Holder, if at
        any
        time during the Redemption Period an Event of Default or an Event which with
        the
        passage of time or giving of notice could become an Event of Default (whether
        or
        not such Event of Default has been cured), has occurred or the Registration
        Statement registering the Registrable Securities is not effective each day
        during the Redemption Period.

      

      ARTICLE
        III

      

      CONVERSION
        RIGHTS

      

      3.1. Holder’s
        Conversion Rights.
        Subject
        to Section 3.2, the Holder shall have the right, but not the obligation,
        to
        convert all or any portion of the then aggregate outstanding Principal Amount
        of
        this Note, together with interest and fees due hereon, and any sum arising
        under
        the Subscription Agreement, and the Transaction Documents, including but
        not
        limited to Liquidated Damages, into shares of Common Stock, subject to the
        terms
        and conditions set forth in this Article III, at the rate of $0.25 per share
        of
        Common Stock (“Fixed Conversion Price”), as the same may be adjusted pursuant to
        this Note and the Subscription Agreement. The Holder may exercise such right
        by
        delivery to the Borrower of a written Notice of Conversion pursuant to Section
        3.3.

      

      3.2. Conversion
        Limitation.
        Neither
Holder
        nor the Borrower may convert on any date that amount of the Note Principal
        or
        interest in connection with that number of shares of Common Stock which would
        be
        in excess of the sum of (i) the number of shares of Common Stock beneficially
        owned by the Holder and its affiliates on a Conversion Date, Repayment Date,
        or
        interest payment date, as the case may be, (ii) any Common Stock issuable
        in
        connection with the unconverted portion of the Note, and (iii) the number
        of
        shares of Common Stock issuable upon the conversion of the Note with respect
        to
        which the determination of this provision is being made, which would result
        in
        beneficial ownership by the Holder and its affiliates of more than 4.99%
        of the
        outstanding shares of Common Stock of the Borrower on such Conversion Date.
        For
        the purposes of the provision to the immediately preceding sentence, beneficial
        ownership shall be determined in accordance with Section 13(d) of the Securities
        Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder. Subject
        to
        the foregoing, the Holder shall not be limited to aggregate conversions of
        only
        4.99% and aggregate conversion by the Holder may exceed 4.99%. The Holder
        shall
        have the authority and obligation to determine whether the restriction contained
        in this Section 3.2 will limit any conversion hereunder and to the extent
        that
        the Holder determines that the limitation contained in this Section applies,
        the
        determination of which portion of the Notes are convertible shall be the
        responsibility and obligation of the Holder. The Holder may waive the conversion
        limitation described in this Section 3.2, in whole or in part, upon and
        effective after 61 days prior written notice to the Borrower to increase
        such
        percentage to up to 9.99%.

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      3.3. Mechanics
        of Holder’s Conversion.
        

      

      (a) In
        the
        event that the Holder elects to convert any amounts outstanding under this
        Note
        into Common Stock, the Holder shall give notice of such election by delivering
        an executed and completed notice of conversion (a “Notice of Conversion”) to the
        Borrower, which Notice of Conversion shall provide a breakdown in reasonable
        detail of the Principal Amount, accrued interest and amounts being converted.
        The original Note is not
        required
        to be surrendered to the Borrower
        until
        all sums due under the Note have been paid. On each Conversion Date (as
        hereinafter defined) and in accordance with its Notice of Conversion, the
        Holder
        shall make the appropriate reduction to the Principal Amount, accrued interest
        and fees as entered in its records.
        Each
        date
        on which a Notice of Conversion is delivered or telecopied to the Borrower
        in
        accordance with the provisions hereof shall be deemed a “Conversion Date.” A
        form of Notice of Conversion
        to be employed by the Holder is annexed hereto as Exhibit A.

      

      (b) Pursuant
        to the terms of a Notice of Conversion, the Borrower will issue instructions
        to
        the transfer agent accompanied by an opinion of counsel (if so required by
        the
        Borrower’s transfer agent), and, except as otherwise provided below, shall cause
        the transfer agent to transmit the certificates representing the Conversion
        Shares to the Holder by crediting the account of the Holder’s designated broker
        with the Depository Trust Corporation (“DTC”) through its Deposit Withdrawal
        Agent Commission (“DWAC”) system within three (3) business days after receipt by
        the Borrower of the Notice of Conversion (the “Delivery Date”). In the case of
        the exercise of the conversion rights set forth herein, the conversion privilege
        shall be deemed to have been exercised and the Conversion Shares issuable
        upon
        such conversion shall be deemed to have been issued upon the date of receipt
        by
        the Borrower of the Notice of Conversion. The Holder shall be treated for
        all
        purposes as the beneficial holder of such shares of Common Stock, or, in
        the
        case that Borrower delivers physical certificates as set forth below, the
        record
        holder of such shares of Common Stock, unless the Holder provides the Borrower
        written instructions to the contrary.  Notwithstanding
        the foregoing to the contrary, the Borrower or its transfer agent shall only
        be
        obligated to issue and deliver the shares to the DTC on the Holder’s behalf via
        DWAC (or certificates free of restrictive legends) if the registration statement
        providing for the resale of the shares of Common Stock issuable upon the
        conversion of this Note is effective and the Holder has complied with all
        applicable securities laws in connection with the sale of the Common Stock,
        including, without limitation, the prospectus delivery requirements and has
        provided representations accordingly. In the event that Conversion Shares
        cannot
        be delivered to the Holder via DWAC, the Borrower shall deliver physical
        certificates representing the Conversion Shares by the Delivery Date to an
        address designated by Holder in the U.S.

      

      3.4. Conversion
        Mechanics.

      

      (a) The
        number of shares of Common Stock to be issued upon each conversion of this
        Note
        pursuant to this Article III shall be determined by dividing that portion
        of the
        Principal Amount and interest and fees to be converted, if any, by the then
        applicable Fixed Conversion Price.

      

      (b) The
        Fixed
        Conversion Price and number and kind of shares or other securities to be
        issued
        upon conversion shall be subject to adjustment from time to time upon the
        happening of certain events while this conversion right remains outstanding,
        as
        follows:

      

      A. Merger,
        Sale of Assets, etc.
        If the
        Borrower at any time shall consolidate with or merge into or sell or convey
        all
        or substantially all its assets to any other corporation, this Note, as to
        the
        unpaid principal portion thereof and accrued interest thereon, shall thereafter
        be deemed to evidence the right to convert into such number and kind of shares
        or other securities and property as would have been issuable or distributable
        on
        account of such consolidation, merger, sale or conveyance, upon or with respect
        to the securities subject to the conversion right immediately prior to such
        consolidation, merger, sale, or conveyance. The foregoing provision shall
        similarly apply to successive transactions of a similar nature by any such
        successor or purchaser. Without limiting the generality of the foregoing,
        the
        anti-dilution provisions of this Section shall apply to such securities of
        such
        successor or purchaser after any such consolidation, merger, sale, or
        conveyance.

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      B. Reclassification,
        etc.
        If the
        Borrower at any time shall, by reclassification or otherwise, change the
        Common
        Stock into the same or a different number of securities of any class or classes,
        this Note, as to the unpaid principal portion hereof and accrued interest
        hereon, shall thereafter be deemed to evidence the right to convert into
        an
        adjusted number of such securities and kind of securities as would have been
        issuable as the result of such change with respect to the Common Stock
        immediately prior to such reclassification or other change.

      

      C. Stock
        Splits, Combinations and Dividends.
        If the
        shares of Common Stock are subdivided or combined into a greater or smaller
        number of shares of Common Stock, or if a dividend is paid on the Common
        Stock
        in shares of Common Stock, the Conversion Price shall be proportionately
        reduced
        in case of subdivision of shares or stock dividend or proportionately increased
        in the case of combination of shares, in each such case by the ratio which
        the
        total number of shares of Common Stock outstanding immediately after such
        event
        bears to the total number of shares of Common Stock outstanding immediately
        prior to such event.

      

      D. Share
        Issuance.
        So long
        as this Note is outstanding, if the Borrower shall issue any Common Stock
        except
        for the Excepted Issuances (as defined in the Subscription Agreement), prior
        to
        the complete conversion or payment of this Note, for a consideration less
        than
        the Fixed Conversion Price that would be in effect at the time of such issue,
        then, and thereafter successively upon each such issuance, the Fixed Conversion
        Price shall be reduced to such other lower issue price. For purposes of this
        adjustment, the issuance of any security or debt instrument of the Borrower
        carrying the right to convert such security or debt instrument into Common
        Stock
        or of any warrant, right or option to purchase Common Stock shall result
        in an
        adjustment to the Fixed Conversion Price upon the issuance of the
        above-described security, debt instrument, warrant, right, or option and
        again
        upon the issuance of shares of Common Stock upon exercise of such conversion
        or
        purchase rights if such issuance is at a price lower than the then applicable
        Conversion Price. The reduction of the Fixed Conversion Price described in
        this
        paragraph is in addition to the other rights of the Holder described in the
        Subscription Agreement.

      

      (c) Whenever
        the Conversion Price is adjusted pursuant to Section 3.4(b) above, the Borrower
        shall promptly mail to the Holder a notice setting forth the Conversion Price
        after such adjustment and setting forth a statement of the facts requiring
        such
        adjustment.

      

      3.5. Reservation.
        During
        the period the conversion right exists, Borrower will reserve from its
        authorized and unissued Common Stock not less than
        one
        hundred
        fifty percent
        (150%)
        of the
        number of shares to provide for the issuance of Common Stock upon the full
        conversion of this Note.
        Borrower represents that upon issuance, such shares will be duly and validly
        issued, fully
        paid and
        non-assessable. Borrower agrees that its issuance of this Note shall constitute
        full authority to its officers, agents, and transfer agents who are charged
        with
        the duty of executing and issuing stock certificates to execute and issue
        the
        necessary certificates for shares of Common Stock upon the conversion of
        this
        Note.

      

      3.6 Issuance
        of Replacement Note.
        Upon
        any partial conversion of this Note, a replacement Note containing the same
        date
        and provisions of this Note shall,
        at the
        written request of the Holder, be
        issued
        by the Borrower to the Holder for the outstanding Principal Amount of this
        Note
        and accrued interest which shall not have been converted or paid, provided
        Holder has surrendered an original Note to the Borrower. In the event that
        the
        Holder elects not to surrender a Note for reissuance upon partial payment
        or
        conversion, the Holder hereby indemnifies the Borrower against any and all
        loss
        or damage attributable to a third-party claim in an amount in excess of the
        actual amount then due under the Note, and the
        Borrower is hereby expressly authorized to offset any such amounts mutually
        agreed upon by Borrower and Holder or pursuant to a judgment in Borrower’s favor
        against amounts then due under the Note.

      

      
        
          
          

        

        
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      ARTICLE
        IV

      

      EVENTS
        OF DEFAULT

      

      The
        occurrence of any of the following events of default (“Event of Default”) shall,
        at the option of the Holder hereof, make all sums of principal and interest
        then
        remaining unpaid hereon and all other amounts payable hereunder immediately
        due
        and payable, upon demand, without presentment, or grace period, all of which
        hereby are expressly waived, except as set forth below:

      

      4.1 Failure
        to Pay Principal or Interest.
        The
        Borrower fails to pay any installment of Principal Amount, interest or other
        sum
        due under this Note or any Transaction Document when due and such failure
        continues for a period of five (5) business days after the due
        date.

      

      4.2 Breach
        of Covenant.
        The
        Borrower breaches any material covenant or other term or condition of the
        Subscription Agreement, this Note or Transaction Document in any material
        respect and such breach, if subject to cure, continues for a period of ten
        (10)
        business days after written notice to the Borrower from the Holder.

      

      4.3 Breach
        of Representations and Warranties.
        Any
        material representation or warranty of the Borrower made herein, in the
        Subscription Agreement, Transaction Document or in any agreement, statement
        or
        certificate given in writing pursuant hereto or in connection herewith or
        therewith shall be false or misleading in any material respect as of the
        date
        made and the Closing Date.

      

      4.4 Receiver
        or Trustee.
        The
        Borrower or any Subsidiary of Borrower shall make an assignment for the benefit
        of creditors, or apply for or consent to the appointment of a receiver or
        trustee for them or for a substantial part of their property or business;
        or
        such a receiver or trustee shall otherwise be appointed.

      

      4.5 Judgments.
        Any
        money judgment, writ or similar final process shall be entered or filed against
        Borrower or any subsidiary of Borrower or any of their property or other
        assets
        for more than $50,000,
        and
        shall remain unvacated, unbonded, unappealed, unsatisfied, or unstayed for
        a
        period of forty-five (45) days.

      

      4.6 Non-Payment.
        A
        default by the Borrower under any one or more obligations in an aggregate
        monetary amount in excess of $100,000 for more than twenty (20) days after
        the
        due date, unless the Borrower is contesting the validity of such obligation
        in
        good faith.

      

      4.7 Bankruptcy.
        Bankruptcy, insolvency, reorganization, or liquidation proceedings or other
        proceedings or relief under any bankruptcy law or any law, or the issuance
        of
        any notice in relation to such event, for the relief of debtors shall be
        instituted by or against the Borrower or any Subsidiary of Borrower and if
        instituted against them are not dismissed within forty-five (45) days
        of
        initiation.

      

      4.8 Delisting.
        Delisting of the Common Stock from any Principal Market for a period of seven
        consecutive trading days; or notification from a Principal Market that the
        Borrower is not in compliance with the conditions for such continued listing
        on
        such Principal Market.

      

      4.9 Stop
        Trade.
        An SEC
        or judicial stop trade order or Principal Market trading suspension with
        respect
        to Borrower’s Common Stock that lasts for five or more consecutive trading
        days.

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      4.10 Failure
        to Deliver Common Stock or Replacement Note.
        Borrower’s failure to timely deliver Common Stock to the Holder pursuant to and
        in the form required by this Note or the Subscription Agreement,
        or if
        required, a replacement Note.

      

      4.11 Non-Registration
        Event.
        The
        occurrence of a Non-Registration Event as described in Section 11.4 of the
        Subscription Agreement.

      

      4.12 Reverse
        Splits.
        The
        Borrower effectuates a reverse split of its Common Stock without twenty days
        prior written notice to the Holder.

      

      4.13 Material
        Breach of Security Agreement.
        Any
        default by the Company of any of its material obligations pursuant to the
        Security Agreement.

      

      4.14 Cross
        Default.
        A
        default by the Borrower of a material term, covenant, warranty or undertaking
        of
        any Transaction Document or other agreement to which the Borrower and Holder
        are
        parties, or the occurrence of a material event of default under any such
        other
        agreement which is not cured after any required notice and/or cure
        period.

      

      4.15 Reservation
        Default.
        Failure
        by the Borrower to have reserved for issuance upon conversion of the Note
        the
        amount of Common Stock as set forth in this Note and the Subscription
        Agreement.

      

      4.16 Financial
        Statement Restatement.  
        The restatement of any financial statements filed by the Borrower for any
        date
        or period from two years prior to the Issue Date of this Note and until this
        Note is no longer outstanding, if the result of such restatement would, by
        comparison to the unrestated financial statements, have constituted a Material
        Adverse Effect.

      

      ARTICLE
        V

      

      SECURITY
        INTEREST

      

      5. Security
        Interest/Waiver of Automatic Stay.
        This
        Note is secured by a security interest granted to the Collateral Agent for
        the
        benefit of the Holder pursuant to a Security Agreement, as delivered by Borrower
        to Holder. The Borrower acknowledges and agrees that should a proceeding
        under
        any bankruptcy or insolvency law be commenced by or against the Borrower,
        or if
        any of the Collateral (as defined in the Security Agreement) should become
        the
        subject of any bankruptcy or insolvency proceeding, then the Holder should
        be
        entitled to, among other relief to which the Holder may be entitled under
        the
        Transaction Documents and any other agreement to which the Borrower and Holder
        are parties (collectively, “Loan Documents”) and/or applicable law, an order
        from the court granting immediate relief from the automatic stay pursuant
        to 11
        U.S.C. Section 362 to permit the Holder to exercise all of its rights and
        remedies pursuant to the Loan Documents and/or applicable law. TO THE EXTENT
        PERMITTED BY LAW, THE BORROWER EXPRESSLY WAIVES THE BENEFIT OF THE AUTOMATIC
        STAY IMPOSED BY 11 U.S.C. SECTION 362. FURTHERMORE, THE BORROWER EXPRESSLY
        ACKNOWLEDGES AND AGREES THAT NEITHER 11 U.S.C. SECTION 362 NOR ANY OTHER
        SECTION
        OF THE BANKRUPTCY CODE OR OTHER STATUTE OR RULE (INCLUDING, WITHOUT LIMITATION,
        11 U.S.C. SECTION 105) SHALL STAY, INTERDICT, CONDITION, REDUCE OR INHIBIT
        IN
        ANY WAY THE ABILITY OF THE HOLDER TO ENFORCE ANY OF ITS RIGHTS AND REMEDIES
        UNDER THE LOAN DOCUMENTS AND/OR APPLICABLE LAW. The Borrower hereby consents
        to
        any motion for relief from stay that may be filed by the Holder in any
        bankruptcy or insolvency proceeding initiated by or against the Borrower
        and,
        further, agrees not to file any opposition to any motion for relief from
        stay
        filed by the Holder. The Borrower represents, acknowledges and agrees that
        this
        provision is a specific and material aspect of the Loan Documents, and that
        the
        Holder would not agree to the terms of the Loan Documents if this waiver
        were
        not a part of this Note. The Borrower further represents, acknowledges and
        agrees that this waiver is knowingly, intelligently and voluntarily made,
        that
        neither the Holder nor any person acting on behalf of the Holder has made
        any
        representations to induce this waiver, that the Borrower has been represented
        (or has had the opportunity to he represented) in the signing of this Note
        and
        the Loan Documents and in the making of this waiver by independent legal
        counsel
        selected by the Borrower and that the Borrower has discussed this waiver
        with
        counsel.

      

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      ARTICLE
        VI

      

      MISCELLANEOUS

      

      6.1 Failure
        or Indulgence Not Waiver.
        No
        failure or delay on the part of Holder hereof in the exercise of any power,
        right or privilege hereunder shall operate as a waiver thereof, nor shall
        any
        single or partial exercise of any such power, right or privilege preclude
        other
        or further exercise thereof or of any other right, power or privilege. All
        rights and remedies existing hereunder are cumulative to, and not exclusive
        of,
        any rights or remedies otherwise available.

      

      6.2 Notices.
        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 Borrower to: 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, and (ii) if to the Holder, to the name, address
        and
        telecopy number set forth on the front page of this Note, with a copy by
        telecopier
        only to
        Grushko & Mittman, P.C., 551 Fifth Avenue, Suite 1601, New York, New York
        10176, telecopier number: (212) 697-3575.

      

      6.3 Amendment
        Provision.
        The
        term “Note” and all reference thereto, as used throughout this instrument, shall
        mean this instrument as originally executed, or if later amended or
        supplemented, then as so amended or supplemented.

      

      6.4 Assignability.
        This
        Note shall be binding upon the Borrower and its successors and assigns, and
        shall inure to the benefit of the Holder and its successors and
        assigns.

      

      6.5 Cost
        of Collection.
        If
        default is made in the payment of this Note, Borrower shall pay the Holder
        hereof reasonable costs of collection, including reasonable attorneys’
fees.

      

      6.6 Governing
        Law.
        This
        Note
        shall be governed by and construed in accordance with the laws of the State
        of
        New York, without regard to conflicts
        of laws
        principles that would result in the application of the substantive laws of
        another jurisdiction. Any
        action brought by either party against the other concerning the transactions
        contemplated by this Agreement shall be brought only in the state courts
        and
        Federal courts located in the State and County of New York. Both parties
        and the
        individual signing this Note on behalf of the Borrower agree to
        submit
        to the
        jurisdiction of such courts. The prevailing party shall be entitled to recover
        from the other party its reasonable attorney’s fees and costs. In the event that
        any provision of this Note is invalid or unenforceable under any applicable
        statute or rule of law, then such provision shall be deemed inoperative to
        the
        extent that it may conflict therewith and shall be deemed modified to conform
        with such statute or rule of law. Any such provision which may prove invalid
        or
        unenforceable under any law shall not affect the validity or unenforceability
        of
        any other provision of this Note. Nothing contained herein shall be deemed
        or
        operate to preclude the Holder from bringing suit or taking other legal action
        against the Borrower in any other jurisdiction to collect on the Borrower’s
        obligations to Holder, to realize on any collateral or any other security
        for
        such obligations, or to enforce a judgment or other court in favor of the
        Holder.

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      6.7 Maximum
        Payments.
        Nothing
        contained herein shall be deemed to establish or require the payment of a
        rate
        of interest or other charges in excess of the maximum permitted by applicable
        law. In the event that the rate of interest required to be paid or other
        charges
        hereunder exceed the maximum permitted by such law, any payments in excess
        of
        such maximum shall be credited against amounts owed by the Borrower to the
        Holder and thus refunded to the Borrower.

      

      6.8. Construction.
        Each
        party acknowledges that its legal counsel participated in the preparation
        of
        this Note and, therefore, stipulates that the rule of construction that
        ambiguities are to be resolved against the drafting party shall not be applied
        in the interpretation of this Note to favor any party

      against
        the other.

      

      6.9 Redemption.
        This
        Note may not be redeemed or called without the consent of the Holder except
        as
        described in this Note or the Subscription Agreement.

      

      6.10 Shareholder
        Status.
        The
        Holder shall not have rights as a shareholder of the Borrower with respect
        to
        unconverted portions of this Note. However, the Holder will have the rights
        of a
        shareholder of the Borrower with respect to the Shares of Common Stock to
        be
        received after delivery by the Holder of a Conversion Notice to the
        Borrower.

      

      6.11 Remedies.
        This
        Note shall be deemed an unconditional obligation of Borrower for the payment
        of
        money and, without limitation to any other remedies available to Holder.
        This
        Note may be enforced against Borrower by summary proceeding pursuant to N.Y.
        Civil Procedure Law and rules Sect. 3213 or any similar rule or statute in
        the
        jurisdiction where enforcement is sought.

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        Borrower has caused this Note to be signed in its name by an authorized officer
        as of the ____ day of September, 2007.

       

      
        
          	 	 	 
	 	FRANKLIN
                  TOWERS
                  ENTERPRISES INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
                  
                    

                  

                  Name: 

                  Title: 

                
	 	 

        

        
          	WITNESS: 	 	 	 
	 	 	 	 
	 	 	 	 
	
                  

                	 	 	
                

        

      

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      NOTICE
        OF CONVERSION

      

      (To
        be
        executed by the Registered Holder in order to convert the Note)

      

      

      The
        undersigned hereby elects to convert $_________ of the principal and $_________
        of the interest due on the Note issued by Franklin Towers Enterprises Inc.
        on
        September ___, 2007 into Shares of Common Stock of Franklin Towers Enterprises
        Inc. (the “Borrower”) according to the conditions set forth in such Note, as of
        the date written below.

      

      

      

      Date
        of
        Conversion:____________________________________________________________________

      

      

      Conversion
        Price:______________________________________________________________________

      

      

      Number
        of
        Shares of Common Stock Beneficially Owned on the Conversion Date:
        Less
        than 5% of the outstanding Common Stock of Franklin Towers Enterprises
        Inc.

      

      

      Shares
        To
        Be
        Delivered:_________________________________________________________________

      

      

      Signature:____________________________________________________________________________

      

      

      Print
        Name:__________________________________________________________________________

      

      

      Address:_____________________________________________________________________________

      

      ____________________________________________________________________________

      

      
        
          
          

        

        
          11THIS
      WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT
      AND
      THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,
      OFFERED FOR SALE, PLEDGED, OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
      REGISTRATION STATEMENT UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO FRANKLIN TOWERS ENTERPRISES INC. THAT SUCH REGISTRATION IS
      NOT
      REQUIRED.

    

    
      	 	
              Right
                to Purchase ____________ shares of Common Stock of Franklin Towers
                Enterprises Inc. (subject to adjustment as provided
                herein)

            

    

    

    FORM
      OF CLASS A, CLASS B AND BROKER’S

    COMMON
      STOCK PURCHASE WARRANT

    

    

    No. 2007-A/B/F-001      Issue
      Date: September ___, 2007

    

    FRANKLIN
      TOWERS ENTERPRISES INC., a corporation organized under the laws of the State
      of
      Nevada (the “Company”), hereby certifies that, for value received,
      __________________________,
      _____________________________________________________________, or its assigns
      (the “Holder”), is entitled, subject to the terms set forth below, to purchase
      from the Company at any time after the Issue Date until 5:00 p.m., E.S.T on
      the
      fifth anniversary of the Actual
      Effective Date (as defined in Section 11.1(iv) of the Subscription Agreement)
      (the
      “Expiration Date”), up to ____________ fully paid and nonassessable shares of
      Common Stock at a per share purchase price of [$0.50
      for Class A Warrants, $1.75 for Class B Warrants, $0.25 for Broker’s
      Warrants].
      The
      aforedescribed purchase price per share, as adjusted from time to time as herein
      provided, is referred to herein as the “Purchase Price.” The number and
      character of such shares of Common Stock and the Purchase Price are subject
      to
      adjustment as provided herein. The Company may reduce the Purchase Price for
      some or all of the Warrants, temporarily or permanently. Capitalized terms
      used
      and not otherwise defined herein shall have the meanings set forth in that
      certain Subscription Agreement (the “Subscription
      Agreement”),
      dated
      as of September ___, 2007, entered into by the Company and the
      Holder.

     

    As
      used
      herein the following terms, unless the context otherwise requires, have the
      following respective meanings: 

    

    (a) The
      term
“Company” shall include Franklin Towers Enterprises Inc. and any corporation
      which shall succeed or assume the obligations of Franklin Towers Enterprises
      Inc. hereunder. 

    

    (b) The
      term
“Common Stock” includes (a) the Company’s Common Stock, $0.0001 par value
      per share, as authorized on the date of the Subscription Agreement, and (b)
      any
      other securities into which or for which any of the securities described in
      (a) may be converted or exchanged pursuant to a plan of recapitalization,
      reorganization, merger, sale of assets or otherwise.

    

    (c) The
      term
“Other Securities” refers to any stock (other than Common Stock) and other
      securities of the Company or any other person (corporate or otherwise) which
      the
      holder of the Warrant at any time shall be entitled to receive, or shall have
      received, on the exercise of the Warrant, in lieu of or in addition to Common
      Stock, or which at any time shall be issuable or shall have been issued in
      exchange for or in replacement of Common Stock or Other Securities pursuant
      to
      Section 4 or otherwise. 

    

    (d) The
      term
“Warrant Shares” shall mean the Common Stock issuable upon exercise of this
      Warrant.

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    1. Exercise
      of Warrant.

    

    1.1. Number
      of Shares Issuable upon Exercise.
      From
      and after the Issue Date through and including the Expiration Date, the Holder
      hereof shall be entitled to receive, upon exercise of this Warrant in whole
      in
      accordance with the terms of subsection 1.2 or upon exercise of this
      Warrant in part in accordance with subsection 1.3, shares of Common Stock
      of the Company, subject to adjustment pursuant to Section 4.

    

    1.2. Full
      Exercise.
      This
      Warrant may be exercised in full by the Holder hereof by delivery of an original
      or facsimile copy of the form of subscription attached as Exhibit A hereto
      (the “Subscription Form”) duly executed by such Holder and delivery within two
      days thereafter of payment, in cash, wire transfer or by certified or official
      bank check payable to the order of the Company, in the amount obtained by
      multiplying the number of shares of Common Stock for which this Warrant is
      then
      exercisable by the Purchase Price then in effect. The original Warrant is not
      required to be surrendered to the Company until it has been fully exercised.
      

    

    1.3. Partial
      Exercise.
      This
      Warrant may be exercised in part (but not for a fractional share) by by delivery
      of an original or facsimile copy of the form of subscription attached as
      Exhibit A hereto except that the amount payable by the Holder on such
      partial exercise shall be the amount obtained by multiplying (a) the number
      of whole shares of Common Stock designated by the Holder in the Subscription
      Form by (b) the Purchase Price then in effect. On any such partial exercise
      provided the Holder has surrendered the original Warrant, the Company, at its
      expense, will forthwith issue and deliver to or upon the order of the Holder
      hereof a new Warrant of like tenor, in the name of the Holder hereof or as
      such
      Holder (upon payment by such Holder of any applicable transfer taxes) may
      request, the whole number of shares of Common Stock for which such Warrant
      may
      still be exercised for the balance of.

    

    1.4. Fair
      Market Value.
      Fair
      Market Value of a share of Common Stock as of a particular date (the
“Determination Date”) shall mean: 

    

    (a) If
      the
      Company’s Common Stock is traded on an exchange or is quoted on the National
      Association of Securities Dealers, Inc. Automated Quotation (“NASDAQ”), Global
      Market, Nasdaq Global Select Market, the NASDAQ Capital Market or the American
      Stock Exchange, LLC, then the closing or last sale price, respectively, reported
      for the last business day immediately preceding the Determination
      Date;

    

    (b) If
      the
      Company’s Common Stock is not traded on an exchange or on the NASDAQ Global
      Market, the NASDAQ Capital Market or the American Stock Exchange, Inc., but
      is
      traded in the over-the-counter market, then the average of the closing bid
      and
      ask prices reported for the last business day immediately preceding the
      Determination Date;

    

    (c) Except
      as
      provided in clause (d) below, if the Company’s Common Stock is not publicly
      traded, then as the Holder and the Company agree, or in the absence of such
      an
      agreement, by arbitration in accordance with the rules then standing of the
      American Arbitration Association, before a single arbitrator to be chosen from
      a
      panel of persons qualified by education and training to pass on the matter
      to be
      decided; or

    

    (d) If
      the
      Determination Date is the date of a liquidation, dissolution or winding up,
      or
      any event deemed to be a liquidation, dissolution or winding up pursuant to
      the
      Company’s charter, then all amounts to be payable per share to holders of the
      Common Stock pursuant to the charter in the event of such liquidation,
      dissolution or winding up, plus all other amounts to be payable per share in
      respect of the Common Stock in liquidation under the charter, assuming for
      the
      purposes of this clause (d) that all of the shares of Common Stock then
      issuable upon exercise of all of the Warrants are outstanding at the
      Determination Date.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    1.5. Company
      Acknowledgment.
      The
      Company will, at the time of the exercise of the Warrant, upon the request
      of
      the Holder hereof acknowledge in writing its continuing obligation to afford
      to
      such Holder any rights to which such Holder shall continue to be entitled after
      such exercise in accordance with the provisions of this Warrant. If the Holder
      shall fail to make any such request, such failure shall not affect the
      continuing obligation of the Company to afford to such Holder any such
      rights.

    

    1.6. Trustee
      for Warrant Holders.
      In the
      event that a bank or trust company shall have been appointed as trustee for
      the
      Holder of the Warrants pursuant to Subsection 3.2, such bank or trust
      company shall have all the powers and duties of a warrant agent (as hereinafter
      described) and shall accept, in its own name for the account of the Company
      or
      such successor person as may be entitled thereto, all amounts otherwise payable
      to the Company or such successor, as the case may be, on exercise of this
      Warrant pursuant to this Section 1. 

    

    1.7. Delivery
      of Stock Certificates, etc. on Exercise.
      The
      Company agrees that the shares of Common Stock purchased upon exercise of this
      Warrant shall be deemed to be issued to the Holder hereof as the record owner
      of
      such shares as of the close of business on the date on which payment is made
      for
      such shares as aforesaid. As soon as practicable after the exercise of this
      Warrant in full or in part, and in any event within three (3)
      business
      days
      thereafter (“Warrant Share Delivery Date”), the Company at its expense
      (including the payment by it of any applicable issue taxes) will cause to be
      issued in the name of and delivered to the Holder hereof, or as such Holder
      (upon payment by such Holder of any applicable transfer taxes) may direct in
      compliance with applicable securities laws, a certificate or certificates for
      the number of duly and validly issued, fully paid and non-assessable shares
      of
      Common Stock (or Other Securities) to which such Holder shall be entitled on
      such exercise, plus, in lieu of any fractional share to which such Holder would
      otherwise be entitled, cash equal to such fraction multiplied by the then Fair
      Market Value of one full share of Common Stock, together with any other stock
      or
      other securities and property (including cash, where applicable) to which such
      Holder is entitled upon such exercise pursuant to Section 1 or otherwise.
      The Company understands that a delay in the delivery of the Warrant Shares
      after
      the Warrant Share Delivery Date could result in economic loss to the Holder.
      As
      compensation to the Holder for such loss, the Company agrees to pay (as
      liquidated damages and not as a penalty) to the Holder for late issuance of
      Warrant Shares upon exercise of this Warrant the proportionate amount of $100
      per business day after the Warrant Share Delivery Date for each $10,000 of
      Purchase Price of Warrant Shares for which this Warrant is exercised which
      are
      not timely delivered. The Company shall pay any payments incurred under this
      Section in immediately available funds upon demand. Furthermore, in addition
      to
      any other remedies which may be available to the Holder, in the event that
      the
      Company fails for any reason to effect delivery of the Warrant Shares by the
      Warrant Share Delivery Date, the Holder may revoke all or part of the relevant
      Warrant exercise by delivery of a notice to such effect to the Company,
      whereupon the Company and the Holder shall each be restored to their respective
      positions immediately prior to the exercise of the relevant portion of this
      Warrant, except that the liquidated damages described above shall be payable
      through the date notice of revocation or rescission is given to the Company.
      

    

    1.8 Buy-In.
      In
      addition to any other rights available to the Holder, if the Company fails
      to
      deliver to a Holder the Warrant Shares as required pursuant to this Warrant,
      within seven (7) business days after the Warrant Share Delivery Date and the
      Holder or a broker on the Holder’s behalf, purchases (in an open market
      transaction or otherwise) shares of common stock to deliver in satisfaction
      of a
      sale by such Holder of the Warrant Shares which the Holder was entitled to
      receive from the Company (a “Buy-In”),
      then
      the Company shall pay in cash to the Holder (in addition to any remedies
      available to or elected by the Holder) the amount by which (A) the Holder’s
      total purchase price (including brokerage commissions, if any) for the shares
      of
      common stock so purchased exceeds (B) the aggregate Purchase Price of the
      Warrant Shares
      required
      to have been delivered together
      with interest thereon at a rate of 15% per annum, accruing until such amount
      and
      any accrued interest thereon is paid in full (which amount shall be paid as
      liquidated damages and not as a penalty). For
      example, if a Holder purchases shares of Common Stock having a total purchase
      price of $11,000 to cover a Buy-In with respect to $10,000 of Purchase Price
      of
      Warrant Shares to have been received upon exercise of this Warrant, the Company
      shall be required to pay the Holder $1,000,
      plus interest. The
      Holder shall provide the Company written notice indicating the amounts payable
      to the Holder in respect of the Buy-In.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    2. Cashless
      Exercise.

    

    (a) This
      Warrant in whole or in part cash as set forth in Sectiuon 1 above from the
      Issue
      Date. Additionally, commencing six months after the Issue Date, payment upon
      exercise may be made at the option of the Holder either in (i) cash, wire
      transfer or by certified or official bank check payable to the order of the
      Company equal to the applicable aggregate Purchase Price, (ii) by delivery
      of
      Common Stock issuable upon exercise of the Warrants in accordance with
      Section (b) below or (iii) by a combination of any of the
      foregoing methods, for the number of Common Stock specified in such form (as
      such exercise number shall be adjusted to reflect any adjustment in the total
      number of shares of Common Stock issuable to the holder per the terms of this
      Warrant) and the holder shall thereupon be entitled to receive the number of
      duly authorized, validly issued, fully-paid and non-assessable shares of Common
      Stock (or Other Securities) determined as provided herein.

    

    (b) Subject
      to the provisions herein to the contrary, if the Fair Market Value of one share
      of Common Stock is greater than the Purchase Price (at the date of calculation
      as set forth below), in lieu of exercising this Warrant for cash, the holder
      may
      elect to receive shares equal to the value (as determined below) of this Warrant
      (or the portion thereof being cancelled) by by
      delivery of an original or facsimile copy of the form of subscription attached
      as Exhibit A hereto
      in which
      event the Company shall issue to the holder a number of shares of Common Stock
      computed using the following formula:

    

    X=Y
      (A-B)

    A

    
      
        	 	
                Where
                  X=

              	
                the
                  number of shares of Common Stock to be issued to the
                  holder

              

      

       

    

    
      	 	
              Y=

            	
              the
                number of shares of Common Stock purchasable under the Warrant or,
                if only
                a portion of the Warrant is being exercised, the portion of the Warrant
                being exercised (at the date of such
                calculation)

            

    

    

    
      	 	
              A=

            	
              the
                average of the closing sale prices of the Common Stock for the five
                (5)
                Trading Days immediately prior to (but not including) the Exercise
                Date,
                or Fair Market Value, whichever is
                less

            

    

    

    
      	 	
              B=

            	
              Purchase
                Price (as adjusted to the date of such
                calculation)

            

    

    

    For
      purposes of Rule 144 promulgated under the 1933 Act, it is intended, understood
      and acknowledged that the Warrant Shares issued in a cashless exercise
      transaction shall be deemed to have been acquired by the Holder, and the holding
      period for the Warrant Shares shall be deemed to have commenced, on the date
      this Warrant was originally issued pursuant to the Subscription
      Agreement.

    

    3. Adjustment
      for Reorganization, Consolidation, Merger, etc.

    

    3.1. Reorganization,
      Consolidation, Merger, etc.
      In case
      at any time or from time to time, the Company shall (a) effect a
      reorganization, (b) consolidate with or merge into any other person or
      (c) transfer all or substantially all of its properties or assets to any
      other person under any plan or arrangement contemplating the dissolution of
      the
      Company, then, in each such case, as a condition to the consummation of such
      a
      transaction, proper and adequate provision shall be made by the Company whereby
      the Holder of this Warrant, on the exercise hereof as provided in
      Section 1, at any time after the consummation of such reorganization,
      consolidation or merger or the effective date of such dissolution, as the case
      may be, shall receive, in lieu of the Common Stock (or Other Securities)
      issuable on such exercise prior to such consummation or such effective date,
      the
      stock and other securities and property (including cash) to which such Holder
      would have been entitled upon such consummation or in connection with such
      dissolution, as the case may be, if such Holder had so exercised this Warrant,
      immediately prior thereto, all subject to further adjustment thereafter as
      provided in Section 4.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    3.2. Dissolution.
      In the
      event of any dissolution of the Company following the transfer of all or
      substantially all of its properties or assets, the Company, prior to such
      dissolution, shall at its expense deliver or cause to be delivered the stock
      and
      other securities and property (including cash, where applicable) receivable
      by
      the Holder of the Warrants after the effective date of such dissolution pursuant
      to this Section 3 to a bank or trust company (a “Trustee”) having its
      principal office in New York, NY, as trustee for the Holder of the
      Warrants. 

    

    3.3. Continuation
      of Terms.
      Upon
      any reorganization, consolidation, merger or transfer (and any dissolution
      following any transfer) referred to in this Section 3, this Warrant shall
      continue in full force and effect and the terms hereof shall be applicable
      to
      the Other Securities and property receivable on the exercise of this Warrant
      after the consummation of such reorganization, consolidation or merger or the
      effective date of dissolution following any such transfer, as the case may
      be,
      and shall be binding upon the issuer of any Other Securities, including, in
      the
      case of any such transfer, the person acquiring all or substantially all of
      the
      properties or assets of the Company, whether or not such person shall have
      expressly assumed the terms of this Warrant as provided in Section 4. In
      the event this Warrant does not continue in full force and effect after the
      consummation of the transaction described in this Section 3, then only in
      such event will the Company’s securities and property (including cash, where
      applicable) receivable by the Holder of the Warrants be delivered to the Trustee
      as contemplated by Section 3.2.

    

    3.4 Share
      Issuance.
      Until
      the Expiration Date, if the Company shall issue any Common Stock except for
      the
      Excepted Issuances (as defined in the Subscription Agreement), prior to the
      complete exercise of this Warrant for a consideration less than the Purchase
      Price that would be in effect at the time of such issue, then, and thereafter
      successively upon each such issue, the Purchase Price shall be reduced to such
      other lower price for then outstanding Warrants. For purposes of this
      adjustment, the issuance of any security or debt instrument of the Company
      carrying the right to convert such security or debt instrument into Common
      Stock
      or of any warrant, right or option to purchase Common Stock shall result in
      an
      adjustment to the Purchase Price upon the issuance of the above-described
      security, debt instrument, warrant, right, or option if such issuance is at
      a
      price lower than the Purchase Price in effect upon such issuance and again
      at
      any time upon any subsequent issuances of shares of Common Stock upon exercise
      of such conversion or purchase rights if such issuance is at a price lower
      than
      the Purchase Price in effect upon such issuance. The reduction of the Purchase
      Price described in this Section 3.4 is subject to the provisions of, and in
      addition to the other rights of the Holder described in, the Subscription
      Agreement. The
      number of shares of Common Stock that the Holder of this Warrant shall
      thereafter, on the exercise hereof, be entitled to receive shall be adjusted
      to
      a number determined by multiplying the number of shares of Common Stock that
      would otherwise (but for the provisions of this Section 3.4 be issuable on
      such
      exercise by a fraction of which (a) the numerator is the Purchase Price that
      would otherwise (but for the provisions of this Section 3.4 be in effect, and
      (b) the denominator is the Purchase Price in effect on the date of such
      exercise.

    

    4. Extraordinary
      Events Regarding Common Stock.
      In the
      event that the Company shall (a) issue additional shares of the Common
      Stock as a dividend or other distribution on outstanding Common Stock,
      (b) subdivide its outstanding shares of Common Stock, or (c) combine
      its outstanding shares of the Common Stock into a smaller number of shares
      of
      the Common Stock, then, in each such event, the Purchase Price shall,
      simultaneously with the happening of such event, be adjusted by multiplying
      the
      then Purchase Price by a fraction, the numerator of which shall be the number
      of
      shares of Common Stock outstanding immediately prior to such event and the
      denominator of which shall be the number of shares of Common Stock outstanding
      immediately after such event, and the product so obtained shall thereafter
      be
      the Purchase Price then in effect. The Purchase Price, as so adjusted, shall
      be
      readjusted in the same manner upon the happening of any successive event or
      events described herein in this Section 4. The number of shares of Common
      Stock that the Holder of this Warrant shall thereafter, on the exercise hereof,
      be entitled to receive shall be adjusted to a number determined by multiplying
      the number of shares of Common Stock that would otherwise (but for the
      provisions of this Section 4 be issuable on such exercise by a fraction of
      which
      (a) the numerator is the Purchase Price that would otherwise (but for the
      provisions of this Section 4 be in effect, and (b) the denominator is the
      Purchase Price in effect on the date of such exercise.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    5. Certificate
      as to Adjustments.
      In each
      case of any adjustment or readjustment in the shares of Common Stock (or Other
      Securities) issuable on the exercise of the Warrants, the Company at its expense
      will promptly cause its Chief Financial Officer or other appropriate designee
      to
      compute such adjustment or readjustment in accordance with the terms of the
      Warrant and prepare a certificate setting forth such adjustment or readjustment
      and showing in detail the facts upon which such adjustment or readjustment
      is
      based, including a statement of (a) the consideration received or
      receivable by the Company for any additional shares of Common Stock (or Other
      Securities) issued or sold or deemed to have been issued or sold, (b) the
      number of shares of Common Stock (or Other Securities) outstanding or deemed
      to
      be outstanding, and (c) the Purchase Price and the number of shares of
      Common Stock to be received upon exercise of this Warrant, in effect immediately
      prior to such adjustment or readjustment and as adjusted or readjusted as
      provided in this Warrant. The Company will forthwith mail a copy of each such
      certificate to the Holder of the Warrant and any Warrant Agent of the Company
      (appointed pursuant to Section 11 hereof).

    

    6. Reservation
      of Stock, etc. Issuable on Exercise of Warrant; Financial
      Statements.
      The
      Company will at all times reserve and keep available, solely for issuance and
      delivery on the exercise of the Warrants, all shares of Common Stock (or Other
      Securities) from time to time issuable on the exercise of the Warrant. This
      Warrant entitles the Holder hereof to receive copies of all financial and other
      information distributed or required to be distributed to the holders of the
      Company’s Common Stock. 

    

    7. Assignment;
      Exchange of Warrant.
      Subject
      to compliance with applicable securities laws, this Warrant, and the rights
      evidenced hereby, may be transferred by any registered holder hereof (a
“Transferor”). On the surrender for exchange of this Warrant, with the
      Transferor’s endorsement in the form of Exhibit B attached hereto (the
“Transferor Endorsement Form”) and together with an opinion of counsel
      reasonably satisfactory to the Company that the transfer of this Warrant will
      be
      in compliance with applicable securities laws, the Company will issue and
      deliver to or on the order of the Transferor thereof a new Warrant or Warrants
      of like tenor, in the name of the Transferor and/or the transferee(s) specified
      in such Transferor Endorsement Form (each a “Transferee”), calling in the
      aggregate on the face or faces thereof for the number of shares of Common Stock
      called for on the face or faces of the Warrant so surrendered by the
      Transferor.

    

    8. Replacement
      of Warrant.
      On
      receipt of evidence reasonably satisfactory to the Company of the loss, theft,
      destruction or mutilation of this Warrant and, in the case of any such loss,
      theft or destruction of this Warrant, on delivery of an indemnity agreement
      or
      security reasonably satisfactory in form and amount to the Company or, in the
      case of any such mutilation, on surrender and cancellation of this Warrant,
      the
      Company at its expense, twice only, will execute and deliver, in lieu thereof,
      a
      new Warrant of like tenor.

    

    9. [Left
      Intentionally Blank]

    

    10. Maximum
      Exercise.
      The
      Holder shall not be entitled to exercise this Warrant on an exercise
      date, in
      connection with that number of shares of Common Stock which would be in excess
      of the sum of (i) the number of shares of Common Stock beneficially owned
      by the Holder and its affiliates on an exercise date, and (ii) the number
      of shares of Common Stock issuable upon the exercise of this Warrant with
      respect to which the determination of this limitation is being made on an
      exercise date, which would result in beneficial ownership by the Holder and
      its
      affiliates of more than 4.99% of the outstanding shares of Common Stock on
      such
      date. For the purposes of the 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    immediately
      preceding sentence, beneficial ownership shall be determined in accordance
      with
      Section 13(d) of the Securities Exchange Act of 1934, as amended, and
      Regulation 13d-3 thereunder. Subject to the foregoing, the Holder shall not
      be
      limited to aggregate exercises which would result in the issuance of more than
      4.99%. The
      restriction described in this paragraph may be waived, in whole or in part,
      upon sixty-one (61) days prior notice from the Holder to the Company to increase
      such percentage to up to 9.99%, but not in excess of 9.99%. The Holder may
      decide whether to convert a Convertible Note or exercise this Warrant to achieve
      an actual 4.99% or up to 9.99% ownership position as described above, but not
      in
      excess of 9.99%.

    

    11. Warrant
      Agent.
      The
      Company may, by written notice to the Holder of the Warrant, appoint an agent
      (a
“Warrant Agent”) for the purpose of issuing Common Stock (or Other Securities)
      on the exercise of this Warrant pursuant to Section 1, exchanging this
      Warrant pursuant to Section 7, and replacing this Warrant pursuant to
      Section 8, or any of the foregoing, and thereafter any such issuance,
      exchange or replacement, as the case may be, shall be made at such office by
      such Warrant Agent. 

    

    12. Transfer
      on the Company’s Books.
      Until
      this Warrant is transferred on the books of the Company, the Company may treat
      the registered holder hereof as the absolute owner hereof for all purposes,
      notwithstanding any notice to the contrary. 

    

    13. Warrant
      Exercise Compensation.
      The
      Company has agreed to pay to the Broker identified on Schedule 8 to the
      Subscription Agreement (“Broker”) Warrant Exercise Compensation as described in
      the Subscription Agreement equal to ten percent (10%) of the cash proceeds
      payable to the Company upon exercise of the Warrant. The Warrant Exercise
      Compensation will be paid by the Company to the Broker not later than the fifth
      (5th)
      business day after the Company receives cash proceeds from the exercise of
      this
      Warrant. The Holder of the Warrant has no obligation or responsibility to pay
      Warrant Exercise Compensation. [THIS
      PARAGRAPH WILL BE RESERVED IN THE BROKER’S WARRANT.]

     

    14. Notices.
      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: if to the Company, to: Franklin
      Towers Enterprises Inc., 5 Ash Drive, Center Barnstead, New Hampshire 03225,
      Attn: Kelly Fan, CEO, 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, and (ii) if to the Holder, to the address and
      telecopier number listed on the first paragraph of this Warrant, with a copy
      by
      telecopier only to: Grushko & Mittman, P.C., 551 Fifth Avenue, Suite 1601,
      New York, New York 10176, telecopier number: (212) 697-3575.

    

    15. Law
      Governing This Warrant.
      This
      Warrant shall be governed by and construed in accordance with the laws of the
      State of New York without regard to principles of conflicts of laws. Any action
      brought by either party against the other concerning the transactions
      contemplated by this Warrant shall be brought only in the state or federal
      courts located in the state and county of New York. The parties to this Warrant
      hereby irrevocably waive any 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    objection
      to jurisdiction and venue of any action instituted hereunder and shall not
      assert any defense based on lack of jurisdiction or venue or based upon
forum
      non conveniens.
      The
      Company and Holder waive trial by jury.
      The
      prevailing party shall be entitled to recover from the other party its
      reasonable attorney’s fees and costs. In the event that any provision of this
      Warrant or any other agreement delivered in connection herewith is invalid
      or
      unenforceable under any applicable statute or rule of law, then such provision
      shall be deemed inoperative to the extent that it may conflict therewith and
      shall be deemed modified to conform with such statute or rule of law. Any such
      provision which may prove invalid or unenforceable under any law shall not
      affect the validity or enforceability of any other provision of any
      agreement.

    

    IN
      WITNESS WHEREOF, the Company has executed this Warrant as of the date first
      written above. 

     

    
      	 	 	 
	 	FRANKLIN
              TOWERS
              ENTERPRISES INC. 
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:

 

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    Exhibit A

    

    FORM
      OF
      SUBSCRIPTION

    (to
      be
      signed only on exercise of Warrant)

     

    TO:
      FRANKLIN TOWERS ENTERPRISES INC. 

     

    The
      undersigned, pursuant to the provisions set forth in the attached Warrant
      (No.____), hereby irrevocably elects to purchase (check applicable
      box):

    

    ___ ________
      shares of the Common Stock covered by such Warrant; or

     

    ___ the
      maximum number of shares of Common Stock covered by such Warrant pursuant to
      the
      cashless exercise procedure set forth in Section 2.

    

    The
      undersigned herewith makes payment of the full purchase price for such shares
      at
      the price per share provided for in such Warrant, which is $___________. Such
      payment takes the form of (check applicable box or boxes):

    

    ___ $__________
      in lawful money of the United States; and/or

     

    ___ the
      cancellation of such portion of the attached Warrant as is exercisable for
      a
      total of _______ shares of Common Stock (using a Fair Market Value of $_______
      per share for purposes of this calculation); and/or

    

    ___ the
      cancellation of such number of shares of Common Stock as is necessary, in
      accordance with the formula set forth in Section 2, to exercise this
      Warrant with respect to the maximum number of shares of Common Stock purchasable
      pursuant to the cashless exercise procedure set forth in
      Section 2.

    

    The
      undersigned requests that the certificates for such shares be issued in the
      name
      of, and delivered to _____________________________________________________
      whose
      address is _______________________________________________________________________________________ .

    

    The
      undersigned represents and warrants that all offers and sales by the undersigned
      of the securities issuable upon exercise of the within Warrant shall be made
      pursuant to registration of the Common Stock under the Securities Act of 1933,
      as amended (the “Securities Act”), or pursuant to an exemption from registration
      under the Securities Act.

     

    
      
        	 	 	 
	 
 	 
 	 
 
	Dated: 	 	 
	 	
                

              	
                
(Signature
                must conform to name of holder as specified on the
                face of the Warrant) 
	 	 
	 	 
	 	 
	 	
                

                (Address)
 

      

       

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    Exhibit B

     

    FORM
      OF
      TRANSFEROR ENDORSEMENT

    (To
      be
      signed only on transfer of Warrant)

     

    For
      value
      received, the undersigned hereby sells, assigns, and transfers unto the
      person(s) named below under the heading “Transferees” the right represented by
      the within Warrant to purchase the percentage and number of shares of Common
      Stock of FRANKLIN TOWERS ENTERPRISES INC. to which the within Warrant relates
      specified under the headings “Percentage Transferred” and “Number Transferred,”
respectively, opposite the name(s) of such person(s) and appoints each such
      person Attorney to transfer its respective right on the books of FRANKLIN TOWERS
      ENTERPRISES INC. with full power of substitution in the premises.

    

    
      	
              Transferees

            	
               

            	
              Percentage
                Transferred

            	
               

            	
              Number
                Transferred

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

     

    
      
        
          	 	 	 
	 
 	 
 	 
 
	Dated: 	 	 
	 	
                  

                	
                  
(Signature
                  must conform to name of holder as specified on the
                  face of the Warrant) 
	 	 	 
	Signed in the presence
                  of:	 
	 	 	 
	 	 	 
	
                  
(Name)	
                  

                
	 	 	 
	 	 	
                  

                  (Address) 

                
	 	 	 
	 
                  ACCEPTED
                    AND AGREED:

                  [TRANSFEREE] 

                	 
	 	 
	 	 
	
                  
                    
(Name)

                	
                  
                    

                  

                
	 	 
	 	
                  

                  (Address) 

                
	 	 

        

         

      

      
        
          
          

        

        
          10

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