EXHIBIT A
STOCK PURCHASE AGREEMENT
THIS STOCK PURCHASE AGREEMENT (this "AGREEMENT") is entered into on
July 16, 2004 (the "EFFECTIVE DATE"), by and among the individuals listed on
EXHIBIT A hereto under the heading "Sellers" (each, a "SELLER" and collectively,
the "SELLERS") and the entities listed on EXHIBIT A hereto under the heading
"Purchasers" (each, a "PURCHASER" and collectively, the "PURCHASERS").
RECITALS
WHEREAS, the Sellers desire to sell to the Purchasers, and the
Purchasers desire to purchase from the Sellers, an aggregate of 28,757 shares of
Common Stock, par value $1.00 per share (the "SHARES") of Franklin Capital
Corporation, a Delaware corporation (the "COMPANY"), on the terms and conditions
set forth herein.
NOW, THEREFORE, in consideration of the mutual covenants contained
herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:
AGREEMENT
1. PURCHASE AND SALE OF THE SHARES.
1.1 CLOSING. At the Closing (as defined below), each Seller
shall sell to the appropriate Purchasers, and each Purchaser shall purchase from
the appropriate Sellers, that number of Shares set forth opposite each such
Seller's and Purchaser's name on EXHIBIT B hereto, at a price of $4.32 per share
(the "PURCHASE PRICE"). The closing of the sale and purchase of the Shares
pursuant to the terms and conditions of this Agreement (the "CLOSING") shall
occur at 2:00 p.m. California time on the Effective Date, at the offices of
Paul, Hastings, Xxxxxxxx & Xxxxxx LLP, 0000 Xxxxxx Xxxxxx Xxxxx, Xxx Xxxxx, XX
00000, or at such other time or place as the parties may mutually agree.
1.2 DELIVERIES AT CLOSING. At the Closing: (i) each Purchaser
shall deliver to each appropriate Seller, by wire transfer of immediately
available funds to such Seller's account (as designated by such Seller), the
amount of the aggregate Purchase Price for the Shares being purchased by such
Purchaser from such Seller, as set forth on EXHIBIT B hereto; (ii) each Seller
shall deliver to ChaseMellon Shareholder Services, L.L.C., as transfer agent for
the Shares (the "TRANSFER AGENT"), the original stock certificate(s)
representing the Shares being sold by such Seller; and (iii) the Sellers shall
deliver to the Transfer Agent (a) a stock power in the form attached hereto as
EXHIBIT C, executed by each of the Sellers in favor of the appropriate
Purchasers and (b) a letter in the form attached hereto as EXHIBIT D, executed
by each of the Sellers, instructing the Transfer Agent to transfer the Shares
standing in the name of each Seller on the books of the Company to the
appropriate Purchasers. As soon as practicable following the Closing, the
Transfer Agent shall deliver to each of the Purchasers one or more stock
certificate(s) representing the Shares purchased by each such Purchaser.
2. REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS. In connection
with the Purchasers' purchase of Shares pursuant to this Agreement, each
Purchaser, severally and not jointly, represents and warrants to the Sellers
that: (i) such Purchaser is an accredited investor within the meaning of
Regulation D under the Securities Act of 1933, as amended; (ii) such Purchaser
has all requisite legal power and authority to execute and deliver this
Agreement and to perform such Purchaser's obligations hereunder; and (iii) this
Agreement constitutes the valid and binding obligation of such Purchaser.
3. REPRESENTATIONS AND WARRANTIES OF THE SELLERS. In connection with
such Seller's sale of Shares pursuant to this Agreement, each Seller, severally
and not jointly, represents and warrants to the appropriate Purchasers (as set
forth on EXHIBIT B hereto) that: (i) such Seller has, and upon the Closing, will
transfer to such Purchasers, good and valid title to that number of Shares
listed opposite such Seller's name on EXHIBIT B hereto, free and clear of all
liens, encumbrances, equities or claims other than restrictions arising under
securities laws; (ii) such Seller has all requisite legal power and authority to
execute and deliver this Agreement and to perform such Seller's obligations
hereunder; and (iii) this Agreement constitutes the valid and binding obligation
of such Seller.
4. MISCELLANEOUS.
4.1 GOVERNING LAW. This Agreement shall be governed in all
respects by the laws of the State of Delaware as such laws are applied to
agreements between Delaware residents entered into and performed entirely in
Delaware.
4.2 SEVERABILITY. In case any provision of the Agreement shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.
4.3 AMENDMENT AND WAIVER. This Agreement may be amended or
modified only upon the written consent of the Sellers and the Purchasers.
4.4 ENTIRE AGREEMENT. This Agreement, together with that certain
letter agreement among the parties hereto dated as of July 16, 2004, constitute
the full and entire understanding and agreement between the parties with regard
to the subject matter hereof.
4.5 COUNTERPARTS. This Agreement may be executed in any number
of counterparts, each of which shall be an original, but all of which together
shall constitute one and the same instrument.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement
as of the Effective Date.
SELLERS: PURCHASERS:
FIRST TENNESSEE BANK, NATIONAL ASSOCIATION,
ACCOUNT CO-TRUSTEE XXXXXXXX X. XXXXXX TRUST
FBO XXXXXXX XXXXXX XXXXXX, CREATED
12/15/99, ACCOUNT NO. 0000000
/s/ Xxxxxxx X. Xxxxx By: /s/ Xxxxxx X. Xxxx III
-------------------------------------- --------------------------------------
XXXXXXX X. XXXXX Xxxxxx X. Xxxx III
Investment Adviser
ZEALOUS PARTNERS, LLC
/s/ Xxxxxxx X. Xxxxx By: /s/ Xxxxxx X. Xxxx III
-------------------------------------- --------------------------------------
XXXXXXX X. XXXXX Xxxxxx X. Xxxx III
Investment Adviser
ZEALOUS TRADING PARTNERS, LP
/s/ Xxxxxxx X. Xxxxx By: /s/ Xxxxxx X. Xxxx III
-------------------------------------- --------------------------------------
XXXXXXX X. XXXXX U/G/M XXXXXX X. XXXXX Xxxxxx X. Xxxx III
Investment Adviser
ZODIAC INVESTMENTS, L.P.
By: /s/ Xxxxxx X. Xxxx III
--------------------------------------
Xxxxxx X. Xxxx III
Investment Adviser
XXXXXX X. XXXX III AND XXXXXXXX XXXXXX XXXXXX
JOINT ACCOUNT WITH RIGHT OF SURVIVORSHIP
By: /s/ Xxxxxx X. Xxxx III
--------------------------------
Xxxxxx X. Xxxx III
Investment Adviser
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EXHIBIT A
SELLERS:
Xxxxxxx X. Xxxxx
Xxxxxxx X. Xxxxx
Xxxxxx X. Xxxxx
PURCHASERS:
First Tennessee Bank, National Association, Account Co-Trustee Xxxxxxxx X.
Xxxxxx Trust FBO Xxxxxxx Xxxxxx Xxxxxx, Created 12/15/99, Account No. 0000000
Zealous Partners, LLC
Zealous Trading Partners, LP
Zodiac Investments, L.P.
Xxxxxx X. Xxxx III and Xxxxxxxx Xxxxxx Xxxxxx Joint Account with Right of
Survivorship
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EXHIBIT B
--------------------------- ------------------------------------------------------ ------------------------------ ------------------
SELLER PURCHASER NUMBER OF SHARES AGGREGATE
SOLD/PURCHASED PURCHASE PRICE
--------------------------- ------------------------------------------------------ ------------------------------ ------------------
Xxxxxxx X. Xxxxx First Tennessee Bank, National Association, Account 12,134 $52,418.88
Co-Trustee Xxxxxxxx X. Xxxxxx Trust FBO Xxxxxxx
Xxxxxx Xxxxxx, Created 12/15/99, Account No. 0000000
--------------------------- ------------------------------------------------------ ------------------------------ ------------------
Zealous Partners, LLC 5,042 $21,781.44
--------------------------- ------------------------------------------------------ ------------------------------ ------------------
Zealous Trading Partners, L.P. 4,347 $18,779.04
--------------------------- ------------------------------------------------------ ------------------------------ ------------------
Zodiac Investments, L.P. 2,608 $11,266.56
--------------------------- ------------------------------------------------------ ------------------------------ ------------------
Xxxxxx X. Xxxx and Xxxxxxxx Xxxxxx Xxxxxx Joint 869 $3,754.08
Account with Right of Survivorship
---------------------------------------------------------------------------------- ------------------------------ ------------------
Subtotal: 25,000 $108,000.00
--------------------------- ------------------------------------------------------ ------------------------------ ------------------
Xxxxxxx X. Xxxxx First Tennessee Bank, National Association, Account 974 $4,207.68
Co-Trustee Xxxxxxxx X. Xxxxxx Trust FBO Xxxxxxx
Xxxxxx Xxxxxx, Created 12/15/99, Account No. 0000000
--------------------------- ------------------------------------------------------ ------------------------------ ------------------
Zealous Partners, LLC 405 $1,749.60
--------------------------- ------------------------------------------------------ ------------------------------ ------------------
Zealous Trading Partners, L.P. 349 $1,507.68
--------------------------- ------------------------------------------------------ ------------------------------ ------------------
Zodiac Investments, L.P. 209 $902.88
--------------------------- ------------------------------------------------------ ------------------------------ ------------------
Xxxxxx X. Xxxx and Xxxxxxxx Xxxxxx Xxxxxx Joint 70 $302.40
Account with Right of Survivorship
---------------------------------------------------------------------------------- ------------------------------ ------------------
Subtotal: 2,007 $8,670.00
--------------------------- ------------------------------------------------------ ------------------------------ ------------------
Xxxxxx X. Xxxxx First Tennessee Bank, National Association, Account 849 $3,667.68
Co-Trustee Xxxxxxxx X. Xxxxxx Trust FBO Xxxxxxx
Xxxxxx Xxxxxx, Created 12/15/99, Account No. 0000000
--------------------------- ------------------------------------------------------ ------------------------------ ------------------
Zealous Partners, LLC 353 $1,524.96
--------------------------- ------------------------------------------------------ ------------------------------ ------------------
Zealous Trading Partners, L.P. 304 $1,313.28
--------------------------- ------------------------------------------------------ ------------------------------ ------------------
Zodiac Investments, L.P. 183 $790.56
--------------------------- ------------------------------------------------------ ------------------------------ ------------------
Xxxxxx X. Xxxx and Xxxxxxxx Xxxxxx Xxxxxx Joint 61 $263.52
Account with Right of Survivorship
---------------------------------------------------------------------------------- ------------------------------ ------------------
Subtotal: 1,750 $7,560.00
---------------------------------------------------------------------------------- ------------------------------ ------------------
TOTAL 28,757 $124,230.24
---------------------------------------------------------------------------------- ------------------------------ ------------------
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EXHIBIT C
STOCK POWER
For value received, each of the undersigned parties (each, a
"SELLER"), does hereby sell, assign and transfer unto each party listed opposite
such Seller's name under the heading "Purchaser" on Schedule 1 hereto that
number of shares of Common Stock, par value $1.00 (the "COMMON STOCK"), of
FRANKLIN CAPITAL CORPORATION, a Delaware corporation (the "COMPANY"), indicated
on Schedule 1 hereto and standing in the name of Seller on the books of the
Company represented by the stock certificates herewith (as indicated on Schedule
1 hereto) and does hereby irrevocably constitute and appoint ChaseMellon
Shareholder Services, L.L.C. as Seller's attorney to transfer such shares of
Common Stock on the books of the Company with full power of substitution in the
premises.
Dated: July 16, 2004
SELLERS:
/s/ Xxxxxxx X. Xxxxx
-----------------------------------------------
XXXXXXX X. XXXXX
/s/ Xxxxxxx X. Xxxxx
-----------------------------------------------
XXXXXXX X. XXXXX
/s/ Xxxxxxx X. Xxxxx
-----------------------------------------------
XXXXXXX X. XXXXX U/G/M XXXXXX X. XXXXX
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SCHEDULE 1
------------------------ --------------------------------------------------------- ------------------------------ ------------------
SELLER PURCHASER NUMBER OF SHARES TO BE CERTIFICATE NOS.
TRANSFERRED
------------------------ --------------------------------------------------------- ------------------------------ ------------------
Xxxxxxx X. Xxxxx First Tennessee Bank, National Association, Account 12,134 CU 14569
Co-Trustee Xxxxxxxx X. Xxxxxx Trust FBO Xxxxxxx Xxxxxx CU 14570
Xxxxxx, Created 12/15/99, Account No. 0000000 CU 16108
------------------------ --------------------------------------------------------- ------------------------------ ------------------
Zealous Partners, LLC 5,042
------------------------ --------------------------------------------------------- ------------------------------ ------------------
Zealous Trading Partners, L.P. 4,347
------------------------ --------------------------------------------------------- ------------------------------ ------------------
Zodiac Investments, L.P. 2,608
------------------------ --------------------------------------------------------- ------------------------------ ------------------
Xxxxxx X. Xxxx and Xxxxxxxx Xxxxxx Xxxxxx Joint Account 869
with Right of Survivorship
------------------------------------------------------------------------------------------------------------------------------------
------------------------ --------------------------------------------------------- ------------------------------ ------------------
Xxxxxxx X. Xxxxx First Tennessee Bank, National Association, Account 974 CU 14579
Co-Trustee Xxxxxxxx X. Xxxxxx Trust FBO Xxxxxxx Xxxxxx CU 15558
Xxxxxx, Created 12/15/99, Account No. 0000000
------------------------ --------------------------------------------------------- ------------------------------ ------------------
Zealous Partners, LLC 405
------------------------ --------------------------------------------------------- ------------------------------ ------------------
Zealous Trading Partners, L.P. 349
------------------------ --------------------------------------------------------- ------------------------------ ------------------
Zodiac Investments, L.P. 209
------------------------ --------------------------------------------------------- ------------------------------ ------------------
Xxxxxx X. Xxxx and Xxxxxxxx Xxxxxx Xxxxxx Joint Account 70
with Right of Survivorship
------------------------------------------------------------------------------------------------------------------------------------
------------------------ --------------------------------------------------------- ------------------------------ ------------------
Xxxxxx X. Xxxxx First Tennessee Bank, National Association, Account 849 CU 14608
Co-Trustee Xxxxxxxx X. Xxxxxx Trust FBO Xxxxxxx Xxxxxx CU 15557
Xxxxxx, Created 12/15/99, Account No. 0000000 CU 16113
------------------------ --------------------------------------------------------- ------------------------------ ------------------
Zealous Partners, LLC 353
------------------------ --------------------------------------------------------- ------------------------------ ------------------
Zealous Trading Partners, L.P. 304
------------------------ --------------------------------------------------------- ------------------------------ ------------------
Zodiac Investments, L.P. 183
------------------------ --------------------------------------------------------- ------------------------------ ------------------
Xxxxxx X. Xxxx and Xxxxxxxx Xxxxxx Xxxxxx Joint Account 61
with Right of Survivorship
------------------------ --------------------------------------------------------- ------------------------------ ------------------
EXHIBIT D
INSTRUCTION LETTER TO TRANSFER AGENT
July 16, 2004
ChaseMellon Shareholder Services, L.L.C.
Overpeck Centre
00 Xxxxxxxxxx Xxxx
Xxxxxxxxxx Xxxx, XX 00000
RE: TRANSFER OF SHARES OF FRANKLIN CAPITAL CORPORATION
Ladies and Gentlemen:
Reference is made to that certain Stock Purchase Agreement, dated as of the date
hereof (the "PURCHASE AGREEMENT"), by and between the undersigned parties (each,
a "SELLER" and collectively, the "SELLERS") and purchasers listed in the
Purchase Agreement (the "PURCHASERS"). Pursuant to the Purchase Agreement, each
undersigned Seller has agreed to transfer to Purchaser listed opposite such
Seller's name under the heading "Purchaser" on Schedule 1 hereto that number of
shares of Common Stock, par value $1.00 (the "SHARES"), of FRANKLIN CAPITAL
CORPORATION, a Delaware corporation (the "COMPANY"), indicated on Schedule 1
hereto and standing in the name of the undersigned Seller on the books of the
Company. A stock power for the contemplated transfer of the Shares by each of
the Sellers to the appropriate Purchasers is also provided herewith.
Accordingly, each of the undersigned Sellers hereby directs you to issue a
certificate representing that number of Shares transferred to each appropriate
Purchaser, in accordance with Schedule 1 hereto. In connection with such
transfers, the Sellers further direct you that each new certificate evidencing
Shares shall bear the following legend:
THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR
PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT
TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF
COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE
REASONABLY ACCEPTABLE TO THE COMPANY.
Sincerely,
/s/ Xxxxxxx X. Xxxxx
----------------------------------------------
XXXXXXX X. XXXXX
/s/ Xxxxxxx X. Xxxxx
----------------------------------------------
XXXXXXX X. XXXXX
/s/ Xxxxxxx X. Xxxxx
----------------------------------------------
XXXXXXX X. XXXXX U/G/M XXXXXX X. XXXXX
SCHEDULE 1
-------------------------- --------------------------------------------------------- ----------------------------- -----------------
SELLER PURCHASER NUMBER OF SHARES TO BE CERTIFICATE NOS.
TRANSFERRED
-------------------------- --------------------------------------------------------- ----------------------------- -----------------
Xxxxxxx X. Xxxxx First Tennessee Bank, National Association, Account 12,134 CU 14569
Co-Trustee Xxxxxxxx X. Xxxxxx Trust FBO Xxxxxxx Xxxxxx CU 14570
Xxxxxx, Created 12/15/99, Account No. 0000000 CU 16108
-------------------------- --------------------------------------------------------- ----------------------------- -----------------
Zealous Partners, LLC 5,042
-------------------------- --------------------------------------------------------- ----------------------------- -----------------
Zealous Trading Partners, L.P. 4,347
-------------------------- --------------------------------------------------------- ----------------------------- -----------------
Zodiac Investments, L.P. 2,608
-------------------------- --------------------------------------------------------- ----------------------------- -----------------
Xxxxxx X. Xxxx and Xxxxxxxx Xxxxxx Xxxxxx Joint Account 869
with Right of Survivorship
------------------------------------------------------------------------------------------------------------------------------------
-------------------------- --------------------------------------------------------- ----------------------------- -----------------
Xxxxxxx X. Xxxxx First Tennessee Bank, National Association, Account 974 CU 14579
Co-Trustee Xxxxxxxx X. Xxxxxx Trust FBO Xxxxxxx Xxxxxx CU 15558
Xxxxxx, Created 12/15/99, Account No. 0000000
-------------------------- --------------------------------------------------------- ----------------------------- -----------------
Zealous Partners, LLC 405
-------------------------- --------------------------------------------------------- ----------------------------- -----------------
Zealous Trading Partners, L.P. 349
-------------------------- --------------------------------------------------------- ----------------------------- -----------------
Zodiac Investments, L.P. 209
-------------------------- --------------------------------------------------------- ----------------------------- -----------------
Xxxxxx X. Xxxx and Xxxxxxxx Xxxxxx Xxxxxx Joint Account 70
with Right of Survivorship
------------------------------------------------------------------------------------------------------------------------------------
-------------------------- --------------------------------------------------------- ----------------------------- -----------------
Xxxxxx X. Xxxxx First Tennessee Bank, National Association, Account 849 CU 14608
Co-Trustee Xxxxxxxx X. Xxxxxx Trust FBO Xxxxxxx Xxxxxx CU 15557
Xxxxxx, Created 12/15/99, Account No. 0000000 CU 16113
-------------------------- --------------------------------------------------------- ----------------------------- -----------------
Zealous Partners, LLC 353
-------------------------- --------------------------------------------------------- ----------------------------- -----------------
Zealous Trading Partners, L.P. 304
-------------------------- --------------------------------------------------------- ----------------------------- -----------------
Zodiac Investments, L.P. 183
-------------------------- --------------------------------------------------------- ----------------------------- -----------------
Xxxxxx X. Xxxx and Xxxxxxxx Xxxxxx Xxxxxx Joint Account 61
with Right of Survivorship
-------------------------- --------------------------------------------------------- ----------------------------- -----------------
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