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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 4)*
Franklin Capital Corp.
________________________________________________________________________________
(Name of Issuer)
Common Stock, $1.00 par value
________________________________________________________________________________
(Title of Class Securities)
35252P105
_______________________________________________________________________________
(CUSIP Number)
Lynne Silverstein (310) 752-1442
Ault Glazer & Company Investment Management LLC,
100 Wilshire Blvd, 15th Floor, Santa Monica, CA 90401
________________________________________________________________________________
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications
June 1, 2004
________________________________________________________________________________
(Date of Event Which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of Sections 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check
the following box. |_|
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Section 240.13d-7 for other
parties to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosure provided in a prior cover page.
The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
Potential persons who are to respond to the collection of information contained
in this form are not required to respond unless the form displays a current
valid OMB control number.
Page 3 of 17 pages
CUSIP No. 35252P105
1. Name of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Ault Glazer & Company Investment Management LLC
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
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(b)|_|..................................................................
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3. SEC Use Only............................................................
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4. Source of Funds (See Instructions) OO...................................
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5. Check if Disclosure of Legal Proceeding Is Required Pursuant to Items
2(d) or 2(e)............................................................
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6. Citizenship or Place of Organization Delaware.......................
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7. Sole Voting Power 329,727..........................
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Number of ---------------------------------------------------------------
Shares 8. Shared Voting Power 0.............................
Beneficially ------------------------------------
Owned by Each ---------------------------------------------------------------
Reporting 9. Sole Dispositive Power 329,727.......................
Person With: ---------------------------------
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10. Shared Dispositive Power ..........................
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11. Aggregate Amount Beneficially Owned by Each Reporting Person 329,727.
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12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) .................................................
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13. Percent of Class Represented by Amount in Row (11) 32.32%...........
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14. Type of Reporting Person (See Instructions)
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IA......................................................................
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Page 4 of 17 pages
CUSIP No. 35252P105
1. Name of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Milton C. Ault, III
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a)|_|..................................................................
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(b)|_|..................................................................
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3. SEC Use Only............................................................
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4. Source of Funds (See Instructions) OO...................................
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5. Check if Disclosure of Legal Proceeding Is Required Pursuant to Items
2(d) or 2(e)............................................................
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6. Citizenship or Place of Organization USA............................
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7. Sole Voting Power 329,727..........................
--------------------------------------
Number of ---------------------------------------------------------------
Shares 8. Shared Voting Power 0.............................
Beneficially ------------------------------------
Owned by Each ---------------------------------------------------------------
Reporting 9. Sole Dispositive Power 329,727.......................
Person With: ---------------------------------
---------------------------------------------------------------
10. Shared Dispositive Power 0..........................
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11. Aggregate Amount Beneficially Owned by Each Reporting Person 329,727.
----------
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) .................................................
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13. Percent of Class Represented by Amount in Row (11) 32.32%...........
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14. Type of Reporting Person (See Instructions)
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IN/HC...................................................................
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Page 5 of 17 pages
Page 6 of 17
Item 1 Security and Issuer
This statement relates to the Class A Common Stock, $1.00 par value
("Common Stock"), issued by Franklin Capital Corp. ("FCC"), a
Delaware Corporation. The address of the principal executive offices
of FCC is 450 Park Avenue, 29th Floor, New York, New York 10022.
Item 2 Identity and Background
Name: Ault Glazer & Company Investment Management LLC ("Adviser")
Place of Organization: Delaware
Principal Business: Investment Adviser
Address: 100 Wilshire Blvd., 15th Floor, Santa Monica, CA 90401
Criminal Proceedings: None
Applicable Civil, Judicial or Administrative Proceedings: None
Name: Milton C. Ault, III ("Ault")
Address: 100 Wilshire Blvd., 15th Floor, Santa Monica, CA 90401
Criminal Proceedings: None
Applicable Civil, Judicial or Administrative Proceedings: None
Citizenship: United States
Ault is the controlling and managing member of Adviser. Adviser's
beneficial ownership of the Common Stock is direct as a result of
Adviser's discretionary authority to buy, sell and vote shares of
such Common Stock for its investment advisory clients. Ault's
beneficial ownership of the Common Stock is indirect as a result of
Ault's control of Adviser.
Item 3 Source and amount of Funds or other Consideration
The aggregate amount of funds used by Adviser to purchase FCC shares
of Common Stock was approximately $1,454,261. Such amount was derived
from advisory client accounts.
Item 4 Purpose of Transaction
The Reporting Persons continue to have concerns regarding the ability
and willingness of current FCC management to maximize shareholder
value. Adviser intends to recommend that FCC management work with
Adviser to unlock what Adviser believes to be the true shareholder
value of FCC. The Adviser has requested that FCC's incumbent Board
resign immediately and that a slate of new independent Board members
to be selected by Adviser replace the resigning Board members.
Adviser may also attempt to effect one or more of the following
changes: an extraordinary corporate transaction (which could include
the sale or spinoff of one or more of FCC's business lines); a change
in the present Board of Directors or management of FCC; a sale or
transfer of a material amount of assets of FCC; a material change in
the
Page 6 of 17 pages
Page 7 of 17
present capitalization or dividend policy of FCC, and a class of
equity securities of FCC becoming eligible for termination of
registration pursuant to Section 12(g)(4) of the Securities Exchange
Act of 1934.
Subject to availability at prices deemed favorable, the Reporting
Persons may acquire additional shares of Common Stock of FCC from
time to time in the open market, in privately negotiated transactions
or otherwise. The Reporting Persons may dispose of shares of Common
Stock of FCC from time to time in the open market, in privately
negotiated transactions or otherwise.
Although the foregoing represents the range of activities presently
contemplated by the Reporting Persons with respect to FCC and the
Common Stock, it should be noted that the possible activities of the
Reporting Persons are subject to change at any time
Except as set forth above, the Reporting Persons has no present plans
or intentions that relate to or that would result in any of the
transactions described in clauses (a) through (j) of Item 4 of
Schedule 13D.
Item 5 Interest in Securities of the Issuer
(a) As of May 27, 2004, the Reporting Persons directly or indirectly
beneficially owned 329,727 shares, or 32.32%, of Common Stock of FCC
(the percentage of the shares of Common Stock owned is based on
1,020,100 shares of Common Stock outstanding as of March 9, 2004, as
reported by FCC in its Form 10-Q filed on March 30, 2004).
(1) Adviser owned 329,727 shares (32.32%)
(2) Ault owned 329,727 shares (32.32%)
(b) The responses of the Reporting Persons to Items 7 through 11 of
the portions of the cover page of this Schedule 13D which relate to
beneficial ownership of shares of the Common Stock are incorporated
herein by reference.
(c) A list of transactions in the past 60 days.
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Party Date Amount Bought Price per Share Where & How
(Sold) Effected
-----------------------------------------------------------------------------------------
Adviser 05/27/04 (100) 5.140 Open market
-----------------------------------------------------------------------------------------
Adviser 05/26/04 (100) 5.220 Open market
-----------------------------------------------------------------------------------------
Adviser 05/26/04 (500) 5.090 Open market
-----------------------------------------------------------------------------------------
Adviser 05/26/04 (500) 5.060 Open market
-----------------------------------------------------------------------------------------
Adviser 05/26/04 (600) 5.040 Open market
-----------------------------------------------------------------------------------------
Adviser 05/26/04 (1,400) 5.030 Open market
-----------------------------------------------------------------------------------------
Adviser 05/19/04 (500) 5.100 Open market
-----------------------------------------------------------------------------------------
Adviser 05/19/04 (500) 5.500 Open market
-----------------------------------------------------------------------------------------
Adviser 05/19/04 (400) 5.510 Open market
-----------------------------------------------------------------------------------------
Adviser 05/19/04 (100) 5.700 Open market
-----------------------------------------------------------------------------------------
Adviser 05/18/04 (100) 6.710 Open market
-----------------------------------------------------------------------------------------
Adviser 05/18/04 (400) 6.750 Open market
-----------------------------------------------------------------------------------------
Page 8 of 17 pages
-----------------------------------------------------------------------------------------
Party Date Amount Bought Price per Share Where & How
(Sold) Effected
-----------------------------------------------------------------------------------------
Adviser 05/18/04 (500) 6.850 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 800 5.300 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 200 5.800 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 200 5.810 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 2,400 5.940 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 800 5.950 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 400 5.980 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 1,000 6.000 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 1,000 6.150 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 1,000 6.250 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 200 6.300 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 200 6.450 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 1,000 6.500 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 400 6.550 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 400 6.665 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 300 6.700 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 200 6.740 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 2,000 6.750 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 1,000 6.850 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 33,500 6.8909 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 1,000 6.900 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 400 6.940 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 1,000 6.950 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 400 7.360 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 500 7.400 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 200 7.850 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 800 7.900 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 100 8.700 Open market
-----------------------------------------------------------------------------------------
Adviser 05/17/04 900 8.750 Open market
-----------------------------------------------------------------------------------------
Adviser 05/14/04 1,000 3.9041 Open market
-----------------------------------------------------------------------------------------
Adviser 05/14/04 3,000 4.3933 Open market
-----------------------------------------------------------------------------------------
Adviser 05/14/04 200 4.930 Open market
-----------------------------------------------------------------------------------------
Adviser 05/14/04 400 4.970 Open market
-----------------------------------------------------------------------------------------
Adviser 05/14/04 300 4.990 Open market
-----------------------------------------------------------------------------------------
Adviser 05/14/04 8,100 5.000 Open market
-----------------------------------------------------------------------------------------
Adviser 05/14/04 200 5.100 Open market
-----------------------------------------------------------------------------------------
Adviser 05/14/04 100 5.150 Open market
-----------------------------------------------------------------------------------------
Adviser 05/14/04 35,000 5.5036 Open market
-----------------------------------------------------------------------------------------
Adviser 05/14/04 500 5.650 Open market
-----------------------------------------------------------------------------------------
Adviser 05/14/04 200 5.780 Open market
-----------------------------------------------------------------------------------------
Adviser 05/14/04 1,000 5.830 Open market
-----------------------------------------------------------------------------------------
Adviser 05/14/04 1,800 5.900 Open market
-----------------------------------------------------------------------------------------
Adviser 05/14/04 700 5.910 Open market
-----------------------------------------------------------------------------------------
Adviser 05/14/04 2,300 5.950 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 100 2.970 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 2,100 2.980 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 13,000 3.000 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 100 3.050 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 1,500 3.100 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 100 3.150 Open market
-----------------------------------------------------------------------------------------
Page 9 of 17 pages
-----------------------------------------------------------------------------------------
Party Date Amount Bought Price per Share Where & How
(Sold) Effected
-----------------------------------------------------------------------------------------
Adviser 05/13/04 100 3.190 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 600 3.200 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 100 3.300 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 2,200 3.500 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 1,000 3.530 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 1,000 3.600 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 300 3.650 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 6,000 3.730 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 1,000 3.850 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 1,000 3.970 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 3,000 3.990 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 5,900 4.000 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 11,600 4.100 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 1,000 4.220 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 1,000 4.240 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 200 4.250 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 800 4.300 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 1,000 4.360 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 1,200 4.400 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 800 4.450 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 1,200 4.650 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 1,000 4.690 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 2,100 4.700 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 2,000 4.710 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 1,200 4.750 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 1,600 4.800 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 1,000 4.880 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 1,500 4.900 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 200 4.950 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 6,400 5.000 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 1,000 5.010 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 1,500 5.050 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 1,600 5.100 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 200 5.120 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 1,500 5.200 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 2,300 5.250 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 2,500 5.260 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 300 5.270 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 300 5.280 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 3,100 5.290 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 2,800 5.300 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 3,700 5.350 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 10,000 5.400 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 13,500 5.4148 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 900 5.450 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 700 5.480 Open market
-----------------------------------------------------------------------------------------
Adviser 05/13/04 2,627 5.500 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 200 1.580 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 400 1.620 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 400 1.700 Open market
-----------------------------------------------------------------------------------------
Page 10 of 17 pages
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Party Date Amount Bought Price per Share Where & How
(Sold) Effected
-----------------------------------------------------------------------------------------
Adviser 05/12/04 400 1.780 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 200 1.790 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 200 1.820 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 1,300 2.400 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 100 2.450 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 2,000 2.500 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 200 2.520 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 800 2.600 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 1,000 2.700 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 500 2.750 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 500 2.800 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 1,000 2.900 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 1,400 3.400 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 200 3.500 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 400 3.510 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 1,700 3.600 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 400 3.700 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 500 3.730 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 1,000 3.740 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 1,000 3.750 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 1,000 3.800 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 2,000 3.810 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 1,500 3.850 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 500 3.950 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 1,200 4.050 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 5,000 4.100 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 1,000 4.200 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 1,000 4.220 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 1,000 4.240 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 1,000 4.250 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 3,000 4.300 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 2,000 4.350 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 1,800 4.400 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 1,000 4.420 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 3,200 4.480 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 1,000 4.500 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 4,000 4.600 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 2,900 4.700 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 1,600 4.800 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 1,000 4.820 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 (1,000) 3.850 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 (500) 3.950 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 (600) 4.000 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 (2,400) 4.100 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 (700) 4.200 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 (1,000) 4.230 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 (2,500) 4.250 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 (500) 4.350 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 (2,000) 4.900 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 (1,000) 5.150 Open market
-----------------------------------------------------------------------------------------
Page 11 of 17 pages
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Party Date Amount Bought Price per Share Where & How
(Sold) Effected
-----------------------------------------------------------------------------------------
Adviser 05/12/04 (1,000) 5.250 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 (2,000) 5.350 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 (1,000) 5.500 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 (1,000) 5.550 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 (400) 5.850 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 (600) 6.000 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 (300) 4.320 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 24,100 3.8654 Open market
-----------------------------------------------------------------------------------------
Adviser 05/12/04 30,300 4.0266 Open market
-----------------------------------------------------------------------------------------
Adviser 05/11/04 500 1.3000 Open market
-----------------------------------------------------------------------------------------
Adviser 05/11/04 4,500 1.4000 Open market
-----------------------------------------------------------------------------------------
Adviser 05/11/04 20,000 1.5000 Open market
-----------------------------------------------------------------------------------------
Adviser 05/11/04 200 1.1500 Open market
-----------------------------------------------------------------------------------------
Adviser 05/11/04 600 1.2000 Open market
-----------------------------------------------------------------------------------------
Adviser 05/11/04 400 1.2500 Open market
-----------------------------------------------------------------------------------------
Adviser 05/11/04 500 1.4500 Open market
-----------------------------------------------------------------------------------------
(d) Not Applicable
(e) Not Applicable
Item 6 Contracts, Arrangements, Understandings or Relationships with Respect
to Securities of the Issuer
Ault controls and manages the Adviser who makes voting and
dispositive decisions for its investment advisory clients.
Item 7 Material to Be Filed as Exhibits
Exhibit A: Joint Filing Agreement Pursuant to Rule 13d-1
Exhibit B: Confidentiality Agreement
After reasonable inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.
Date: June 1, 2004
Ault Glazer & Company Investment
Management LLC
/s/ Milton C. Ault
------------------------------------------
Milton C. Ault, III, Managing Member
Milton C. Ault, III
/s/ Milton C. Ault
------------------------------------------
Page 12 of 17 pages
EXHIBIT A
---------
Joint Filing Agreement Pursuant to Rule 13d-1
---------------------------------------------
This agreement is made pursuant to Rule 13d-1(k)(1) under the Securities and
Exchange Act of 1934 (the "Act") by and among the parties listed below, each
referred to herein as a "Joint Filer." The Joint Filers agree that a statement
of beneficial ownership as required by Sections 13(g) or 13(d) of the Act and
the Rules thereunder may be filed on each of their behalf on Schedule 13G or
Schedule 13D, as appropriate, and that said joint filing may thereafter be
amended by further joint filings. The Joint Filers state that they each satisfy
the requirements for making a joint filing under Rule 13d-1.
Dated: June 1, 2004
Ault Glazer & Company Investment
Management LLC
/s/ Milton C. Ault
------------------------------------------
Milton C. Ault, III, Managing Member
Milton C. Ault, III
/s/ Milton C. Ault
------------------------------------------
Page 13 of 17 pages
EXHIBIT B
---------
Confidentiality Agreement
-------------------------
STRICTLY CONFIDENTIAL
---------------------
May 19, 2004
Franklin Capital Corp.
450 Park Avenue
New York, New York 10022
Attention: Stephen L. Brown
Chairman and Chief Executive Officer
Dear Mr. Brown:
As you are aware, Franklin Capital Corp. ("Franklin"), and Ault Glazer & Co.
Investment Management, LLC ("Ault Glazer," and Franklin and Ault Glazer,
collectively, the "Parties") desire to discuss a business opportunity of mutual
interest (the "Transaction"). In order for Ault Glazer to assess the feasibility
of the Transaction, Franklin intends to disclose (in such capacity, the
"Disclosing Party") to Ault Glazer (in such capacity, the "Receiving Party")
certain information that it deems confidential or proprietary. As a condition to
such disclosure, Franklin and Ault Glazer hereby agree as follows:
Confidentiality of Evaluation Materials: As a condition to the Disclosing Party
furnishing the Receiving Party with Evaluation Material (as defined below) of
the Disclosing Party, the Receiving Party agrees to treat the Evaluation
Material of the Disclosing Party in accordance with the provisions of this
agreement. As used herein, the term "Evaluation Material" of the Disclosing
Party means any information concerning the Disclosing Party which is furnished
to the Receiving Party or any of its directors, officers, employees, affiliates,
agents or advisors (including, without limitation, attorneys, accountants,
consultants, bankers, financial advisors and any representatives of its
advisors) (collectively, "Representatives") by or on behalf of the Disclosing
Party, after the date of this letter and regardless of the manner in which it is
furnished, together with analyses, compilations, studies, notes, or other
documents or records (including extracts or reproductions, in whole or in part)
prepared by or for the Receiving Party and or its Representatives to the extent
that such analyses, compilations, studies, notes, documents or records contain
or otherwise reflect or are generated from such information. The term
"Evaluation Material" does not include information which (i) as of the date
hereof is, or later becomes generally available to the public other than as a
result of a disclosure by the Receiving Party or its Representatives, (ii) as of
the date hereof is, or later becomes available to the Receiving Party or its
Representatives from a source other than the Disclosing Party or its
Representatives, provided that such source is not reasonably known by the
Receiving Party or its Representatives to be bound by a
Page 14 of 17 pages
confidentiality agreement with the Disclosing Party or otherwise prohibited from
transmitting the information to the Receiving Party or its Representatives by a
contractual, legal or fiduciary obligation, (iii) was within the Receiving
Party's or its Representative's possession prior to its being furnished by or on
behalf of the Disclosing Party, as evidenced by the Receiving Party's or its
Representative's internal documentation, provided that the source of such
information was not reasonably known by the Receiving Party or its
Representatives to be bound by a confidentiality agreement with the Disclosing
Party or otherwise prohibited from transmitting the information to the Receiving
Party or its Representatives by a contractual, legal or fiduciary obligation, or
(iv) is required by law or administrative or legal proceeding to be disclosed by
the Receiving Party, provided, that the Receiving Party complies with the other
terms and conditions of this agreement before disclosing any Evaluation Material
of the Disclosing Party.
Restrictions on Disclosure and Use: The Receiving Party hereby agrees that the
Evaluation Material of the Disclosing Party will be kept confidential and will
be used solely for the purpose of evaluating a possible Transaction, and not
used for any commercial or other purpose, and that such Evaluation Material will
be kept confidential by the Receiving Party and its Representatives; provided,
however, that (i) such Evaluation Material may be disclosed to the Receiving
Party's Representatives who need to know such information for the purpose of
evaluating the Transaction (it being understood that such Representatives shall
have been informed by the Receiving Party of the confidential and proprietary
nature of the Evaluation Material, advised of this agreement and shall have
agreed to be bound by the provisions hereof), and (ii) any disclosure of such
Evaluation Material may be made by the Receiving Party if, prior to such
disclosure, the Disclosing Party consents in writing to such disclosure and the
disclosure is consistent with the terms of such consent. In any event, the
Receiving Party shall be responsible for any breach of this agreement by any of
its Representatives and agrees, at its sole cost and expense, to take all
commercially reasonable measures to restrain its Representatives from prohibited
or unauthorized disclosure or use of the Evaluation Material. The Receiving
Party further agrees that the Evaluation Material that is in written or other
tangible form shall not be copied or reproduced at any time without the prior
written consent of the Disclosing Party, except for distribution to its
Representatives in accordance with and subject to the provisions of this
agreement.
In addition, except as required by law or stock exchange rule, each Party agrees
that, without the prior written consent of the other Party, it will not, and
will use commercially reasonable efforts to cause its Representatives not to,
disclose to any person or entity (i) the existence of this agreement, (ii) that
discussions or negotiations are taking place concerning a possible Transaction,
or (iii) any terms, conditions or other facts with respect to any such possible
Transaction, including the status thereof.
In the event that the Receiving Party is requested or required (by oral
questions, interrogatories, requests for information or documents, subpoena,
civil investigative demand, other process, or otherwise) to disclose any
Evaluation Material of the
Page 15 of 17 pages
Disclosing Party, it will provide the Disclosing Party with prompt written
notice of any such request or requirement (and if such request or requirement is
in written form, a copy thereof) so that the Disclosing Party may timely seek an
appropriate protective order or waive compliance with the provisions of this
agreement. If, failing the entry of a protective order or the receipt of a
waiver hereunder, a Receiving Party or any of its Representatives are
nonetheless legally compelled to disclose Evaluation Material of the Disclosing
Party, it may disclose only that portion of the Evaluation Material which it is
legally compelled to disclose and will exercise reasonable efforts to obtain
assurance that confidential treatment will be accorded to that portion of the
Evaluation Material which is being disclosed. In any event, the Receiving Party
will not oppose action by the Disclosing Party to obtain an appropriate
protective order or other reliable assurance that confidential treatment will be
accorded the Evaluation Material of the Disclosing Party.
Standstill: In consideration of Ault Glazer being furnished Evaluation Materials
of Franklin, and in view of the fact that the Evaluation Materials may consist
and will consist of confidential, non-public and proprietary information, Ault
Glazer agrees that, for a period of ten (10) days from the date of this
agreement, without the prior authorization of the Board of Directors of
Franklin, it will not, directly or indirectly, alone or in concert with others:
(i) acquire, offer or agree to acquire, or announce an intention to acquire
beneficial ownership of (except and only to the extent that such announcement is
required by law or stock exchange rule) any securities of Franklin, or rights or
options to acquire the same; (ii) acquire, offer or agree to acquire or announce
an intention to acquire (except and only to the extent that such announcement is
required by law or stock exchange rule) any material assets of the other Party
or any subsidiary of the other Party, (iii) make, or in any way participate in
any "solicitation" of "proxies" to vote or "consents" (as such terms are used in
the rules and regulations of the Securities and Exchange Commission), or seek to
advise or influence any person or entity with respect to the voting of any
voting securities of the other Party; (iv) initiate or support any stockholder
proposal with respect to the other Party; (v) make any public statements and/or
announcement with respect to, or submit a proposal for, or offer of (with or
without conditions) any extraordinary transaction involving the other Party or
its securities, material assets or business or any subsidiary or division
thereof, or of any successor thereto or any controlling person thereof; (vi)
seek or propose to influence or control the other Party's management, board of
directors, policies or affairs; (vii) disclose any intention, plan or
arrangement inconsistent with the foregoing; or (viii) take any action that, in
the reasonable judgment of the other Party, may require the other Party to make
a public announcement concerning any of the foregoing.
No Warranty: The Receiving Party understands and acknowledges that any and all
information contained in the Evaluation Material of the Disclosing Party is
being provided without any representation or warranty, express or implied, as to
the accuracy or completeness of the Evaluation Material, on the part of the
Disclosing Party or its Representatives. The Receiving Party further agrees that
the Disclosing Party or its Representatives shall not have any liability to the
Receiving Party or any of its Representatives resulting from the use of this
Evaluation Material. It is understood that
Page 16 of 17 pages
the scope of any representations and warranties to be given by each Party will
be negotiated along with other terms and conditions in arriving at a mutually
acceptable form of definitive agreement for a Transaction should discussions
progress to such a point.
Ownership and Return of the Evaluation Material: All Evaluation Material
disclosed by the Disclosing Party is and shall remain the property of the
Disclosing Party. No later than five business days after being so requested by
the Disclosing Party, the Receiving Party shall return or destroy all Evaluation
Material of the Disclosing Party. Except to the extent the Receiving Party is
advised by counsel such destruction may prohibited by law, the Receiving Party
will also return to the Disclosing Party or destroy all written material,
memoranda, notes, copies, excerpts and other writings or recordings whatsoever
prepared by it or its Representatives based upon, containing or otherwise
reflecting any Evaluation Material. Any destruction of materials shall be
verified in a writing signed by a duly authorized officer of the Receiving
Party. Notwithstanding the foregoing, the Receiving Party may retain one (1)
copy of the Evaluation Materials, archived by its legal department, as a record
of the disclosures made hereunder for the purpose of determining its obligations
hereunder.
No Obligation: Each Party agrees that unless and until a definitive agreement
regarding a Transaction has been executed, neither Party will be under any legal
obligation of any kind whatsoever with respect to such a Transaction by virtue
of this agreement except for the matters specifically agreed to herein. Each
Party further reserves the right, in its sole discretion, to reject any and all
proposals made by the other Party or any of its Representatives with regard to a
Transaction, to terminate discussions and negotiations at any time, and to
conduct any process for a transaction involving such Party as it may determine.
Governing Law; Jurisdiction: This agreement shall be governed and construed in
accordance with the laws of the State of New York, regardless of the laws that
might otherwise govern under applicable principles of conflicts of law thereof.
Each Party agrees, on behalf of itself and its Representatives, to submit to the
jurisdiction of any court of competent jurisdiction located in the State of New
York to resolve any dispute relating to this agreement and waive any right to
move to dismiss or transfer any such action brought in any such court on the
basis of any objection to personal jurisdiction or venue.
Term: Except as otherwise set forth herein, this agreement shall expire ten (10)
days from the date hereof; it being understood that any such expiration shall
not affect in any way any liability or obligation that either Party may have to
the other for a breach of this agreement.
This agreement may be executed by facsimile signature and in counterparts, each
of which shall be deemed to be an original, but all of which shall constitute
one and the same agreement.
Page 17 of 17 pages
Please confirm that the foregoing is in accordance with your understanding of
our agreement by signing and returning to us a copy of this letter.
Very truly yours,
Ault Glazer & Co. Investment Management, LLC
By: /s/ Milton C. Ault, III
-------------------------------------------
Mr. Milton "Todd" C. Ault, III
Manager
Accepted and agreed as of the date first written above:
Franklin Capital Corp.
By: /s/ Stephen D. Brown
-------------------------------------------
Mr. Stephen L. Brown
Chairman and Chief Executive Officer