-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Fvk2lt17duZDSUry0CloY4K4SOZN00hlow5x5eerKpxITR8XBjQtkZ5EE7t6rgM9 vwkYCTRFt8qcyplb9exPYg== 0000909518-04-000623.txt : 20040721 0000909518-04-000623.hdr.sgml : 20040721 20040721163616 ACCESSION NUMBER: 0000909518-04-000623 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20040721 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: FRANKLIN CAPITAL CORP CENTRAL INDEX KEY: 0000812301 IRS NUMBER: 133419202 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-38889 FILM NUMBER: 04924708 BUSINESS ADDRESS: STREET 1: 450 PARK AVE CITY: NEW YORK STATE: NY ZIP: 10022 BUSINESS PHONE: 2124862323 MAIL ADDRESS: STREET 1: 450 PARK AVE CITY: NEW YORK STATE: NY ZIP: 10022 FORMER COMPANY: FORMER CONFORMED NAME: FRANKLIN CAPITAL CORP/ DE DATE OF NAME CHANGE: 19990407 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: BROWN STEPHEN L CENTRAL INDEX KEY: 0000014798 IRS NUMBER: 043480302 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 450 PARK AVE CITY: NEW YORK STATE: NY ZIP: 10022 BUSINESS PHONE: 6175729183 MAIL ADDRESS: STREET 1: 450 PARK AVE CITY: NEW YORK STATE: NY ZIP: 10022 SC 13D/A 1 jd7-21_13da14.txt ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ---------------- SCHEDULE 13D INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a) (AMENDMENT NO. 14) ---------------- FRANKLIN CAPITAL CORPORATION - -------------------------------------------------------------------------------- (Name of Issuer) COMMON STOCK, $1.00 PAR VALUE 35252P105 ------------------------------ ------------------------------ (Title of class of securities) (CUSIP number) STEPHEN L. BROWN, CHAIRMAN, - -------------------------------------------------------------------------------- 450 PARK AVENUE, NEW YORK, NEW YORK 10022 (212) 486-2323 - -------------------------------------------------------------------------------- (Name, address and telephone number of person authorized to receive notices and communications) JULY 16, 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 Rules 13d-1(e), 13d-1(f) or 13d-1(g), check the following box [_]. ================================================================================
- ------------------------------------------------------- ------------------------------------------------------- CUSIP NO. 35252P105 13D Page 2 - ------------------------------------------------------- -------------------------------------------------------- - ---------------- -------------------------------------- ------------------------------------------------------------------- 1 NAME OF REPORTING PERSON: STEPHEN L. BROWN I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY): - ---------------- ---------------------------------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (A) [ ] (B) [X] - ---------------- ---------------------------------------------------------------------------------------------------------- 3 SEC USE ONLY - ---------------- ---------------------- ----------------------------------------------------------------------------------- 4 SOURCE OF FUNDS: Not Applicable - ---------------- ---------------------------------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [_] - ---------------- ------------------------------------------------- -------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION: UNITED STATES - ------------------------- ------ --------------------------------- -------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER: 58,774 SHARES ------ --------------------------------- -------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER: 0 OWNED BY ------ --------------------------------- -------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER: 58,774 REPORTING ------ --------------------------------- -------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER: 0 - ---------------- ---------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON: 58,774 - ---------------- ---------------------------------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [_] - ---------------- ---------------------------------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 5.76% - ---------------- -------------------------------------- ------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON: IN - ---------------- -------------------------------------- -------------------------------------------------------------------
2 INTRODUCTION - ------------ Items 4 through 7 of the Schedule 13D filed May 2, 1986, as amended by Amendments 1 through 13 (the "Schedule 13D"), relating to the common stock, par value $1.00 per share (the "Common Stock"), of Franklin Capital Corporation filed on behalf of the Reporting Person, is hereby amended by this Amendment No. 14 to the Schedule 13D to read in their entirety as follows: ITEM 4. PURPOSE OF THE TRANSACTION. - ----------------------------------- On July 16, 2004, the Reporting Person sold 25,000 shares of Common Stock to First Tennessee Bank, National Association, Account Co-Trustee Lynnette T. Morris Trust FBO Melanie Morris Glazer, Created 12/15/99, Account No. 5001052, Zealous Partners, LLC, Zealous Trading Partners, LP, Zodiac Investments, L.P. and Milton C. Ault III and Kristine Louise Larson Joint Account with Right of Survivorship (collectively, the "Purchasers") pursuant to that certain Stock Purchase Agreement, dated July 16, 2004 by and among the Purchasers, the Reporting Person, Spencer L. Brown, and Maggie L. Brown. ITEM 5. INTEREST IN SECURITIES OF THE ISSUER. - --------------------------------------------- (a) As of the date of this statement, the aggregate number and percentage of Common Stock beneficially owned by the Reporting Person is 58,774 shares of Common Stock and approximately 5.76%, respectively. Such amount includes 2,574 shares owned of record by his wife. This is based on 1,020,100 shares outstanding, as reported in the most recent Quarterly Report on Form 10-Q, for the quarterly period ended March 31, 2004, of Franklin Capital Corporation. (b) Since the most recent filing on Schedule 13D, on July 16, 2004, the Reporting Person sold 25,000 shares of Common Stock to Purchasers pursuant to that certain Stock Purchase Agreement, dated July 16, 2004, by and among the Purchasers, the Reporting Person, Spencer L. Brown, and Maggie L. Brown at a per share purchase price of $4.32. ITEMS 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS. - ------------------------------------------------------------------ Pursuant to that certain Stock Purchase Agreement entered into on July 16, 2004, the Reporting Person, Spencer L. Brown and Maggie L. Brown agreed to sell to the Purchasers, an aggregate of 28,757 shares of Common Stock at a per share purchase price of $4.32. ITEMS 7. MATERIALS TO BE FILED AS EXHIBITS. - ------------------------------------------ Exhibit A Stock Purchase Agreement, dated July 16, 2004, by and among, First Tennessee Bank, National Association, Account Co-Trustee Lynnette T. Morris Trust FBO Melanie Morris Glazer, Created 12/15/99, Account No. 5001052, Zealous Partners, LLC, Zealous Trading Partners, LP, Zodiac Investments, L.P. and Milton C. Ault III and Kristine Louise Larson Joint Account with Right of Survivorship, Stephen L. Brown, Spencer L. Brown and Maggie L. Brown. 3 SIGNATURE 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. Dated: July 21, 2004 /s/ STEPHEN L. BROWN ------------------------- STEPHEN L. BROWN EX-1 2 jd7-21ex_a.txt A 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, Janofsky & Walker LLP, 3579 Valley Centre Drive, San Diego, CA 92130, 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] 5 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 LYNNETTE T. MORRIS TRUST FBO MELANIE MORRIS GLAZER, CREATED 12/15/99, ACCOUNT NO. 5001052 /s/ Stephen L. Brown By: /s/ Milton C. Ault III - -------------------------------------- -------------------------------------- STEPHEN L. BROWN Milton C. Ault III Investment Adviser ZEALOUS PARTNERS, LLC /s/ Spencer L. Brown By: /s/ Milton C. Ault III - -------------------------------------- -------------------------------------- SPENCER L. BROWN Milton C. Ault III Investment Adviser ZEALOUS TRADING PARTNERS, LP /s/ Spencer L. Brown By: /s/ Milton C. Ault III - -------------------------------------- -------------------------------------- SPENCER L. BROWN U/G/M MAGGIE L. BROWN Milton C. Ault III Investment Adviser ZODIAC INVESTMENTS, L.P. By: /s/ Milton C. Ault III -------------------------------------- Milton C. Ault III Investment Adviser MILTON C. AULT III AND KRISTINE LOUISE LARSON JOINT ACCOUNT WITH RIGHT OF SURVIVORSHIP By: /s/ Milton C. Ault III -------------------------------- Milton C. Ault III Investment Adviser
6 EXHIBIT A SELLERS: Stephen L. Brown Spencer L. Brown Maggie L. Brown PURCHASERS: First Tennessee Bank, National Association, Account Co-Trustee Lynnette T. Morris Trust FBO Melanie Morris Glazer, Created 12/15/99, Account No. 5001052 Zealous Partners, LLC Zealous Trading Partners, LP Zodiac Investments, L.P. Milton C. Ault III and Kristine Louise Larson Joint Account with Right of Survivorship 7 EXHIBIT B
- --------------------------- ------------------------------------------------------ ------------------------------ ------------------ SELLER PURCHASER NUMBER OF SHARES AGGREGATE SOLD/PURCHASED PURCHASE PRICE - --------------------------- ------------------------------------------------------ ------------------------------ ------------------ Stephen L. Brown First Tennessee Bank, National Association, Account 12,134 $52,418.88 Co-Trustee Lynnette T. Morris Trust FBO Melanie Morris Glazer, Created 12/15/99, Account No. 5001052 - --------------------------- ------------------------------------------------------ ------------------------------ ------------------ 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 - --------------------------- ------------------------------------------------------ ------------------------------ ------------------ Milton C. Ault and Kristine Louise Larson Joint 869 $3,754.08 Account with Right of Survivorship - ---------------------------------------------------------------------------------- ------------------------------ ------------------ Subtotal: 25,000 $108,000.00 - --------------------------- ------------------------------------------------------ ------------------------------ ------------------ Spencer L. Brown First Tennessee Bank, National Association, Account 974 $4,207.68 Co-Trustee Lynnette T. Morris Trust FBO Melanie Morris Glazer, Created 12/15/99, Account No. 5001052 - --------------------------- ------------------------------------------------------ ------------------------------ ------------------ Zealous Partners, LLC 405 $1,749.60 - --------------------------- ------------------------------------------------------ ------------------------------ ------------------ Zealous Trading Partners, L.P. 349 $1,507.68 - --------------------------- ------------------------------------------------------ ------------------------------ ------------------ Zodiac Investments, L.P. 209 $902.88 - --------------------------- ------------------------------------------------------ ------------------------------ ------------------ Milton C. Ault and Kristine Louise Larson Joint 70 $302.40 Account with Right of Survivorship - ---------------------------------------------------------------------------------- ------------------------------ ------------------ Subtotal: 2,007 $8,670.00 - --------------------------- ------------------------------------------------------ ------------------------------ ------------------ Maggie L. Brown First Tennessee Bank, National Association, Account 849 $3,667.68 Co-Trustee Lynnette T. Morris Trust FBO Melanie Morris Glazer, Created 12/15/99, Account No. 5001052 - --------------------------- ------------------------------------------------------ ------------------------------ ------------------ Zealous Partners, LLC 353 $1,524.96 - --------------------------- ------------------------------------------------------ ------------------------------ ------------------ Zealous Trading Partners, L.P. 304 $1,313.28 - --------------------------- ------------------------------------------------------ ------------------------------ ------------------ Zodiac Investments, L.P. 183 $790.56 - --------------------------- ------------------------------------------------------ ------------------------------ ------------------ Milton C. Ault and Kristine Louise Larson Joint 61 $263.52 Account with Right of Survivorship - ---------------------------------------------------------------------------------- ------------------------------ ------------------ Subtotal: 1,750 $7,560.00 - ---------------------------------------------------------------------------------- ------------------------------ ------------------ TOTAL 28,757 $124,230.24 - ---------------------------------------------------------------------------------- ------------------------------ ------------------
8 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/ Stephen L. Brown ----------------------------------------------- STEPHEN L. BROWN /s/ Spencer L. Brown ----------------------------------------------- SPENCER L. BROWN /s/ Spencer L. Brown ----------------------------------------------- SPENCER L. BROWN U/G/M MAGGIE L. BROWN 9 SCHEDULE 1
- ------------------------ --------------------------------------------------------- ------------------------------ ------------------ SELLER PURCHASER NUMBER OF SHARES TO BE CERTIFICATE NOS. TRANSFERRED - ------------------------ --------------------------------------------------------- ------------------------------ ------------------ Stephen L. Brown First Tennessee Bank, National Association, Account 12,134 CU 14569 Co-Trustee Lynnette T. Morris Trust FBO Melanie Morris CU 14570 Glazer, Created 12/15/99, Account No. 5001052 CU 16108 - ------------------------ --------------------------------------------------------- ------------------------------ ------------------ Zealous Partners, LLC 5,042 - ------------------------ --------------------------------------------------------- ------------------------------ ------------------ Zealous Trading Partners, L.P. 4,347 - ------------------------ --------------------------------------------------------- ------------------------------ ------------------ Zodiac Investments, L.P. 2,608 - ------------------------ --------------------------------------------------------- ------------------------------ ------------------ Milton C. Ault and Kristine Louise Larson Joint Account 869 with Right of Survivorship - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------ --------------------------------------------------------- ------------------------------ ------------------ Spencer L. Brown First Tennessee Bank, National Association, Account 974 CU 14579 Co-Trustee Lynnette T. Morris Trust FBO Melanie Morris CU 15558 Glazer, Created 12/15/99, Account No. 5001052 - ------------------------ --------------------------------------------------------- ------------------------------ ------------------ Zealous Partners, LLC 405 - ------------------------ --------------------------------------------------------- ------------------------------ ------------------ Zealous Trading Partners, L.P. 349 - ------------------------ --------------------------------------------------------- ------------------------------ ------------------ Zodiac Investments, L.P. 209 - ------------------------ --------------------------------------------------------- ------------------------------ ------------------ Milton C. Ault and Kristine Louise Larson Joint Account 70 with Right of Survivorship - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------ --------------------------------------------------------- ------------------------------ ------------------ Maggie L. Brown First Tennessee Bank, National Association, Account 849 CU 14608 Co-Trustee Lynnette T. Morris Trust FBO Melanie Morris CU 15557 Glazer, Created 12/15/99, Account No. 5001052 CU 16113 - ------------------------ --------------------------------------------------------- ------------------------------ ------------------ Zealous Partners, LLC 353 - ------------------------ --------------------------------------------------------- ------------------------------ ------------------ Zealous Trading Partners, L.P. 304 - ------------------------ --------------------------------------------------------- ------------------------------ ------------------ Zodiac Investments, L.P. 183 - ------------------------ --------------------------------------------------------- ------------------------------ ------------------ Milton C. Ault and Kristine Louise Larson 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 85 Challenger Road Ridgefield Park, NJ 07660 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/ Stephen L. Brown ---------------------------------------------- STEPHEN L. BROWN /s/ Spencer L. Brown ---------------------------------------------- SPENCER L. BROWN /s/ Spencer L. Brown ---------------------------------------------- SPENCER L. BROWN U/G/M MAGGIE L. BROWN SCHEDULE 1
- -------------------------- --------------------------------------------------------- ----------------------------- ----------------- SELLER PURCHASER NUMBER OF SHARES TO BE CERTIFICATE NOS. TRANSFERRED - -------------------------- --------------------------------------------------------- ----------------------------- ----------------- Stephen L. Brown First Tennessee Bank, National Association, Account 12,134 CU 14569 Co-Trustee Lynnette T. Morris Trust FBO Melanie Morris CU 14570 Glazer, Created 12/15/99, Account No. 5001052 CU 16108 - -------------------------- --------------------------------------------------------- ----------------------------- ----------------- Zealous Partners, LLC 5,042 - -------------------------- --------------------------------------------------------- ----------------------------- ----------------- Zealous Trading Partners, L.P. 4,347 - -------------------------- --------------------------------------------------------- ----------------------------- ----------------- Zodiac Investments, L.P. 2,608 - -------------------------- --------------------------------------------------------- ----------------------------- ----------------- Milton C. Ault and Kristine Louise Larson Joint Account 869 with Right of Survivorship - ------------------------------------------------------------------------------------------------------------------------------------ - -------------------------- --------------------------------------------------------- ----------------------------- ----------------- Spencer L. Brown First Tennessee Bank, National Association, Account 974 CU 14579 Co-Trustee Lynnette T. Morris Trust FBO Melanie Morris CU 15558 Glazer, Created 12/15/99, Account No. 5001052 - -------------------------- --------------------------------------------------------- ----------------------------- ----------------- Zealous Partners, LLC 405 - -------------------------- --------------------------------------------------------- ----------------------------- ----------------- Zealous Trading Partners, L.P. 349 - -------------------------- --------------------------------------------------------- ----------------------------- ----------------- Zodiac Investments, L.P. 209 - -------------------------- --------------------------------------------------------- ----------------------------- ----------------- Milton C. Ault and Kristine Louise Larson Joint Account 70 with Right of Survivorship - ------------------------------------------------------------------------------------------------------------------------------------ - -------------------------- --------------------------------------------------------- ----------------------------- ----------------- Maggie L. Brown First Tennessee Bank, National Association, Account 849 CU 14608 Co-Trustee Lynnette T. Morris Trust FBO Melanie Morris CU 15557 Glazer, Created 12/15/99, Account No. 5001052 CU 16113 - -------------------------- --------------------------------------------------------- ----------------------------- ----------------- Zealous Partners, LLC 353 - -------------------------- --------------------------------------------------------- ----------------------------- ----------------- Zealous Trading Partners, L.P. 304 - -------------------------- --------------------------------------------------------- ----------------------------- ----------------- Zodiac Investments, L.P. 183 - -------------------------- --------------------------------------------------------- ----------------------------- ----------------- Milton C. Ault and Kristine Louise Larson Joint Account 61 with Right of Survivorship - -------------------------- --------------------------------------------------------- ----------------------------- -----------------
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