Document:

EXHIBIT 10.3

AEGIS SECURITIES CORP.                                        100 WILSHIRE BLVD.
                                                              SUITE 1756
                                                              SANTA MONICA, CA
                                                              90401

October 18, 2004

Dear Mr. Ault,

This letter  presents  the terms of the  proposed  agreement  (the  "Agreement")
between Franklin Capital Corp. (the "Client"), having a place of business at 100
Wilshire  Boulevard,  Suite 1500,  Santa Monica,  CA 90401, and Aegis Securities
Corp. ("Company"),  having a place of business at 100 Wilshire Boulevard,  Suite
1756, Santa Monica, CA 90401, as follows:

1.    Term.  Work under this Agreement  shall commence on or about Oct. 18, 2004
and will  continue  unless this  Agreement  shall have  otherwise  been  earlier
terminated in accordance with the provisions of the Termination  section of this
Agreement.

2.    Services.  Company and its affiliates (collectively,  "Affiliates") hereby
agree to provide  certain  advisory  services  ("Services"),  including  but not
limited to a  comprehensive  evaluation  and oversight of the Client's  proposed
acquisition of Surgicount Medical.

3.    Fees.  Client will pay Company an advisory fee (the "Fee") for Services in
the amount of 50,000 Franklin  Capital Corp.  (AMEX:  FKL) warrants to be issued
and registered as soon as practicable by the Client at a strike price TBD.

4.    Termination. This Agreement shall terminate upon the occurrence of any one
or more of the following:

      (1)   The successful completion of the proposed transaction;

      (2)   The  passage  of a period  of one year (365  days)  from the date of
execution of this Agreement;

      (3)   The parties enter into a written agreement to such termination; or,

      (4)   Any  breach  by either  party of any  provision  of this  Agreement,
including without limitation any failure by either party to observe and to fully
and  faithfully  perform  each  and  all of its  duties,  responsibilities,  and
obligations  pursuant to this  Agreement,  provided that the  terminating  party
provides  the party to be  terminated  with  notice of such breach and that such
breach is not cured within 10 business days following such notice.

5.    Confidentiality.  Company  acknowledges  and agrees  that  Client  will be
providing   to  Company  and  its   officers  and   employees   and   Affiliates
(collectively,  "Representatives")  certain data,  documents,  salary structure,
plans, personnel needs, business, practices, and other information of Client and
its  corporate  affiliates,  which  are  either  confidential,   proprietary  or
otherwise  not  available  to  the  public  ("Information").   Company  and  its
Representatives hereby agree to (i) keep the information confidential,  (ii) not
disseminate it to any third party, and (iii) not use the Information  other than
in connection with this Agreement. All physical manifestation of the Information
will be returned promptly and all derivations and copies of the Information will
be physically and/or electronically destroyed.

<PAGE>

6.    Warranties.  Company and its Representatives agree to complete all work in
a professional manner in conformance with appropriate industry standards. In the
event  that  Client is  dissatisfied  with any  Services  that  Company  and its
Representatives  have  provided,  Company and its  Representatives  agree to use
commercially-reasonable  means to reperform  the  Services in  question.  In the
event that  reperformance  of the  Services  in question  is  impossible  and/or
impractical in the judgment of both parties,  the parties agree to work together
in good faith to devise an equitable solution.

7.    Indemnification.  Client agrees to indemnify,  defend and hold Company and
its  Representatives  harmless  from any  causes of legal  action  or  resulting
damages  that may occur in  connection  with (x) this  Agreement,  (y)  Client's
reliance on advice and/or Services delivered by Company and its Representatives,
or (z) Client's operation and governance of its business.  To the maximum extent
permitted by applicable law, Company and its Representatives  will not be liable
for  consequential,  incidental,  special,  or punitive damages,  or for loss of
revenue or profit in connection  with the performance or failure to perform this
Agreement,  regardless of whether such liability arises from breach of contract,
tort, or any other theory of liability.

9.    Other provisions.  Non-Assignment;  No Third-Party Rights.  Client may not
assign or  transfer  this  Agreement  or any rights  hereunder  without  written
consent of Company, not to be unreasonably  withheld.  Subject to the foregoing,
this  Agreement  will be binding upon,  and inure to the benefit of, the parties
hereto and their respective successors and assigns.

Use of Logo. Neither party shall use the other party's marks, codes, drawings or
specifications without the prior written permission of the other party.

Public  announcements.  All press releases  pertaining to and in connection with
the  Transaction  will  feature  Company as the  exclusive  advisor to Client in
connection with the Transaction.

Independent  Contractors.  The  parties  will  have the  status  of  independent
contractors,  and nothing in this  Agreement will be deemed to place the parties
in any other  relationship.  As such,  neither  Company nor its  Representatives
shall have  authority  to enter into or execute  any  agreement  or to incur any
liability on behalf of Client.

Non-Waiver/Severability.  Failure of either  party to enforce  any of its rights
hereunder will not be deemed to constitute a waiver of its future enforcement of
such rights or any other rights. If any provisions of this Agreement are held to
be  invalid,  illegal,  or  unenforceable  under  present or future  laws,  such
provisions will be struck from the Agreement or amended,  but only to the extent
of their  invalidity,  illegality or  unenforceability.  The parties will remain
legally  bound by the  remaining  terms of this  Agreement,  and will  strive to
reform the Agreement in a manner as  consistent as reasonably  possible with the
original intent of the parties as expressed herein.

Force  Majeure.  Either  party  will be  excused  from any delay or  failure  in
performance  hereunder,  caused by or due to any  cause  beyond  its  reasonable
control,  including,  but not limited to acts of God,  earthquake,  flood, third
party labor disputes, utility curtailments,  power failures,  explosions,  civil
disturbances, vandalism, riots, war, governmental actions, and acts or omissions
of third  parties.  The  obligations  and rights of the party so excused will be
extended  on a  day-to-day  basis for the  period  of time  equal to that of the
underlying cause of the delay.

Governing Law; Jurisdiction. This Agreement will be governed by and construed in
accordance with the substantive laws of the State of California,  without regard
to conflict of law principles.  Both parties submit to personal  jurisdiction in
California and further agree that any cause of action relating to this Agreement
shall be brought exclusively in a court in Los Angeles County, California.

<PAGE>

Integration.  This Agreement,  together with any Exhibit A fully executed by the
parties hereto,  expresses the complete and final  understanding  of the parties
with  respect  to  the  subject   matter   hereof,   and  supersedes  all  prior
communications between the parties,  whether written or oral with respect to the
subject matter hereof.  No  modification  of this Agreement will be binding upon
the parties hereto, unless in writing and executed by Client and Company.

Notices. Except where other means of communication are expressly provided for in
this  Agreement,  all  notices  provided  for under  this  Agreement  will be in
writing,  signed by the party giving the same, and will be deemed properly given
and received (i) on the next business day after  deposit for overnight  delivery
by an overnight  courier  service or (ii) three business days after mailing,  by
registered or certified  mail,  return  receipt  requested.  All such notices or
other instruments or  communications  will be furnished with delivery or postage
charges  prepaid  addressed  to the Client at the address in paragraph 1 of this
Agreement,  or to  Company  at  the  address  listing  in  paragraph  1 of  this
Agreement.  Either party may change its address for notices  hereunder by notice
to the other party.

Survival.  The  respective  obligations  of Client and  Company,  which by their
nature would continue  beyond the  termination or expiration of this  Agreement,
include without limitation,  the obligations regarding confidential information,
warranties, and indemnification.

                                            For Company:

                                            By:  /s/ Patrick Gaynes
                                              -----------------------------
                                                     Patrick Gaynes
                                                     Managing Director
                                                     Aegis Securities Corp.

ACCEPTED AND AGREED on this 18th day of Oct. 2004:

For Client:

By:  /s/ Milton Ault
-------------------------------
Milton "Todd" Ault, III
CEO
Franklin Capital Corp.EXHIBIT 10.4

                              CONSULTING AGREEMENT

THIS CONSULTING  AGREEMENT (this "Agreement") is made and entered into as of the
10th day of December,  2004,  by and among  Franklin  Capital  Corporation  (the
"Company"), and Apex Financial Management Services L.L.C. (the "Consultant").

                                   WITNESSETH:

WHEREAS,  Consultant is recognized as an Accounting  Consulting  Company with an
expertise in private equity; and

WHEREAS, the Company desires to retain Consultant to provide services related to
and in support of efforts in which Consultant has expertise;

NOW,  THEREFORE,  in consideration of the mutual  conditions and promises herein
contained, the parties hereto agree as follows:

      1.    CONSULTING   SERVICES.   Consultant   shall   furnish   the  Company
            professional  services  that  include  but  are not  limited  to the
            following:

            (i)  Comprehensive  financial  support  including the preparation of
            quarterly and annual financial statements.

            (ii) Creation of documents,  spreadsheets and analyses to facilitate
            the  year-end  audit  and  federal  tax  return  preparation  by the
            Company's external auditors.

            (iii)   Assistance  in  any  legal   proceedings   relating  to  the
            performance or  nonperformance  of any act concerning the activities
            of the Company.

            (iv) Attendance at meetings as reasonably required.

      2.    TERM.  The term of this  Agreement  shall begin on December 10, 2004
            and shall  terminate  upon the earlier of: (i) the  cessation of the
            business of the Company; (ii) the death or substantial disability of
            the Consultant's Managing Member, William B. Horne; or (iii) May 10,
            2005.

      3.    EXTENSION AND TERMINATION.

            (i) If Consultant  shall be  terminated  by the Company,  Consultant
            shall be entitled to any amounts due and owing as compensation under
            this  Agreement  to the  extent  earned,  as  defined  herein,  on a
            pro-rata basis, plus reimbursement for expenses.

            (ii) This  Agreement can be terminated by either party on sixty (60)
            days written notice provided in accordance with the terms hereof.

      4.    DISABILITY OR DEATH.  Substantially  disabled is defined as a period
            of thirty (30) consecutive days that William B. Horne is unable,  as
            a result of any physical,  mental or emotional illness,  ailment, or
            accident to effectively discharge Consultant's duties hereunder.  If
            William B. Horne shall be substantially  disabled as defined herein,
            the  Company  may then  immediately  upon  Notice to the  Consultant
            terminate  this  Agreement and the  Company's  obligation to pay the
            Consultant the Compensation hereunder.

      5.    COMPENSATION.  For  all  services  that  Consultant  renders  to the
            Company or any of its  subsidiaries  or  affiliates  during the term
            hereof, the Company will pay Consultant $4,200.00 per month, payable
            on the last day of each  calendar  month.  If any  month  that  this
            Agreement is in effect  consists of less than the entire month,  the
            amount  payable  shall be determined by an amount equal to $4,200.00
            multiplied  by the actual  number of days the Agreement is in effect
            for that month divided by 30 days. Additionally, at such time as the

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<PAGE>

            Company is able to issue non-qualified  options to its employees and
            consultants,  the Company will grant Consultant an option for 26,000
            shares of the common  stock of the  Company.  Such options will vest
            over a two year  period at an  exercise  price  equal to the closing
            price of the Company's  common stock on the date of grant.  Specific
            terms  of the  option  grant  will be  detailed  in a  stock  option
            agreement executed between the Company and the Consultant.

      6.    CONFIDENTIAL  INFORMATION  AND  INTELLECTUAL  PROPERTY.  Each  party
            acknowledges  that all  material and  information  which has or will
            come into the  possession  and knowledge of each in connection  with
            this Agreement or the performance  hereof,  consists of confidential
            and proprietary  data,  whose  disclosure to or use by third parties
            will be  damaging.  Both  parties,  therefore,  agree  to hold  such
            material and  information in strictest  confidence,  not to make use
            thereof other than for the performance of this Agreement, to release
            it only to employees requiring such information,  and not to release
            or disclose it to any other party.

      7.    ACTS  DISCREDITABLE.  Consultant  shall  at all  times  refer to the
            Company in terms that further their business objectives.  Consultant
            shall  not  refer to the  Company  in a manner  that  damages  their
            position in the marketplace.

      8.    EXPENSES.  The Company shall be responsible for any and all expenses
            which Consultant reasonably incurs in performing the duties assigned
            hereunder. The Consultant shall be responsible to provide reasonable
            corroboration to the Company of any such expenses.

      9.    SEVERABLE   PROVISIONS.   The   provisions  of  this  Agreement  are
            severable, and if any one or more provisions may be determined to be
            illegal  or  otherwise  unenforceable,  in  whole  or in  part,  the
            remaining provisions, and any partially enforceable provision to the
            extent  enforceable  in  any  jurisdiction,  shall  nevertheless  be
            binding and enforceable.

      10.   BINDING  AGREEMENT.  The rights and obligations of the Company under
            this  Agreement  shall  inure to the benefit of and shall be binding
            upon  the  successors  and  assigns  of  the  Company.  The  rights,
            obligations  and duties of Consultant  hereunder may not be assigned
            or delegated without the Company's prior written consent.

      11.   RELATIONSHIP OF PARTIES.  The Company and Consultant are independent
            contractors.  Both parties  acknowledge and agree that  Consultant's
            engagement  hereunder  is not  exclusive  and that either  party may
            provide to, or retain from,  others  similar such services  provided
            that it does so in a manner  that  does not  otherwise  breach  this
            Agreement.  Neither  party is, nor shall claim to be, a legal agent,
            representative,  partner or employee of the other, and neither shall
            have the right or authority to contract in the name of the other nor
            shall it  assume or  create  any  obligations,  debts,  accounts  or
            liabilities for the other.

      12.   NOTICES. Any notices or other  communications  required or permitted
            under this Agreement shall be in writing and shall be deemed to have
            been duly given and delivered when delivered in person, two (2) days
            after being mailed postage  prepaid by certified or registered  mail
            with  return  receipt  requested,  or when  delivered  by  overnight
            delivery  service or by facsimile to the  recipient at the following
            address or facsimile  number,  or to such other address or facsimile
            number as to which  the other  party  subsequently  shall  have been
            notified in writing by such recipient:

                  If to the Company:

                           Franklin Capital Corporation
                           100 Wilshire Blvd.
                           Suite 1500
                           Santa Monica, CA 90401
                           Attn: Milton C. Ault, III
                           Facsimile (310) 752-1481

                                                                     Page 2 of 3
<PAGE>

                  If to the Consultant:

                           Apex Financial Management Services
                           25946 SE 22nd Place
                           Sammamish, WA 98075
                           Attn: William B. Horne
                           Facsimile (206) 262-0843

      13.   WAIVER.   Either  party's   failure  to  enforce  any  provision  or
            provisions of this Agreement  shall not in any way be construed as a
            waiver of any such  provision or provisions as to future  violations
            thereof,  nor prevent that party  thereafter from enforcing each and
            every other  provision  of this  Agreement.  The rights  granted the
            parties  herein  are  cumulative  and the  waiver  by a party of any
            single remedy shall not constitute a waiver of such party's right to
            assert all other  legal  remedies  available  to him or it under the
            circumstances.

      14.   GOVERNING LAW. This Agreement will be governed by and interpreted in
            accordance  with the  substantive  laws of the  State of  California
            without reference to conflicts of law.

      15.   CAPTIONS  AND SECTION  HEADINGS.  The various  captions  and section
            headings  contained in this  Agreement are inserted only as a matter
            of  convenience  and in no way define,  limit or extend the scope or
            intent of any of the provisions of this Agreement.

      16.   ENTIRE AGREEMENT. With respect to its subject matter, this Agreement
            and its Exhibits constitute the entire  understanding of the parties
            superseding all prior agreements,  understandings,  negotiations and
            discussions  between them whether  written or oral, and there are no
            other  understandings,  representations,  warranties or  commitments
            with respect thereto. Further, no amendments to this Agreement shall
            be  effective  unless  in  writing  and  signed  by duly  authorized
            representative of both parties.

IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the
date first written above.

                                      FRANKLIN CAPITAL CORPORATION

                                      By:  /s/ Milton Ault
                                        ----------------------------------------
                                        Milton "Todd" Ault III
                                        CEO

                                      APEX FINANCIAL MANAGEMENT SERVICES, L.L.C.

                                      By:  /s/ William B. Horne
                                        ----------------------------------------
                                        William B. Horne
                                        Managing Member

                                                                     Page 3 of 3

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