sec document
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
--------------
SCHEDULE 13D
(RULE 13d-101)
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. 2)(1)
Fox & Hound Restaurant Group
----------------------------
(Name of Issuer)
Common Stock, $.01 Par Value
----------------------------
(Title of Class of Securities)
351321104
---------
(CUSIP Number)
STEVEN WOLOSKY, ESQ.
OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY LLP
Park Avenue Tower
65 East 55th Street
New York, New York 10022
(212) 451-2300
--------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
December 28, 2005
-----------------
(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 Rule 13d-1(e), 13d-1(f) or 13d-1(g),
check the following box /X/.
NOTE. Schedules filed in paper format shall include a signed
original and five copies of the schedule, including all exhibits. SEE Rule 13d-7
for other parties to whom copies are to be sent.
(Continued on following pages)
(Page 1 of 22 Pages)
---------------
(1) 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 disclosures provided in a prior cover page.
The information required on 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 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).
------------------------- -------------------------
CUSIP 351321104 13D Page 2 of 22 Pages
------------------------- -------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
NEWCASTLE PARTNERS, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
TEXAS
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 836,049
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
836,049
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
836,049
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.3%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------------- -------------------------
CUSIP 351321104 13D Page 3 of 22 Pages
------------------------- -------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
NEWCASTLE CAPITAL MANAGEMENT, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
TEXAS
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 836,049
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
836,049
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
836,049
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.3%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------------- -------------------------
CUSIP 351321104 13D Page 4 of 22 Pages
------------------------- -------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
NEWCASTLE CAPITAL GROUP, L.L.C.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
TEXAS
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 836,049
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
836,049
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
836,049
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.3%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------------- -------------------------
CUSIP 351321104 13D Page 5 of 22 Pages
------------------------- -------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
MARK E. SCHWARZ
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 836,049
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
836,049
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
836,049
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.3%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------------- -------------------------
CUSIP 351321104 13D Page 6 of 22 Pages
------------------------- -------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
STEEL PARTNERS II, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
- 0 -
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
- 0 -
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------------- -------------------------
CUSIP 351321104 13D Page 7 of 22 Pages
------------------------- -------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
STEEL PARTNERS, L.L.C.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
- 0 -
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
- 0 -
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------------- -------------------------
CUSIP 351321104 13D Page 8 of 22 Pages
------------------------- -------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
WARREN G. LICHTENSTEIN
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
- 0 -
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
- 0 -
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------------- -------------------------
CUSIP 351321104 13D Page 9 of 22 Pages
------------------------- -------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
F&H ACQUISITION CORP.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH 836,049
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
- 0 -
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
836,049
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
836,049
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.3%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------------- -------------------------
CUSIP 351321104 13D Page 10 of 22 Pages
------------------------- -------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
NPSP ACQUISITION CORP.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
- 0 -
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
- 0 -
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------------- -------------------------
CUSIP 351321104 13D Page 11 of 22 Pages
------------------------- -------------------------
The following constitutes Amendment No. 2 ("Amendment No. 2")
to the Schedule 13D filed by the undersigned. This Amendment No. 2 amends the
Schedule 13D as specifically set forth.
Item 4 is hereby amended to add the following:
As previously reported in this Schedule 13D, F&H Acquisition,
an entity owned by NP and Steel Partners II, announced its intention to commence
a cash tender offer to acquire all of the outstanding shares of Common Stock of
the Issuer that it does not already own for $14.50 per share (the "Tender
Offer"). On December 28, 2005, F&H Acquisition issued a press release announcing
that it has increased its tender offer price to $15.50 per share. F&H
Acquisition also announced that it has signed and delivered in escrow a revised
definitive tender offer/merger agreement (the "Revised Merger Agreement")
reflecting the revised tender offer price. The Revised Merger Agreement is being
held in escrow pursuant to a revised letter agreement (the "Revised Escrow
Letter") with the Issuer pursuant to which the Issuer has agreed to execute and
deliver the Revised Merger Agreement before January 13, 2006, unless prior to
such time the Issuer's Board has determined that the proposal contemplated by
the Revised Merger Agreement no longer constitutes a superior offer or the
Issuer gives notice to F&H Acquisition that the Issuer is unable to make the
representations and warranties or perform its obligations under the Revised
Merger Agreement. The Press Release and the Revised Escrow Letter are attached
hereto as Exhibit 6 and Exhibit 7, respectively, and are incorporated herein by
reference.
Item 6 is hereby amended to add the following:
As described above in Item 4, on December 28, 2005, F&H
Acquisition, NPSP Acquisition, NP, Steel Partners II and the Issuer signed the
Revised Escrow Letter pursuant to which the Issuer has agreed to execute and
deliver the Revised Merger Agreement before January 13, 2006, unless prior to
such time the Issuer's Board has determined that the proposal contemplated by
the Revised Merger Agreement no longer constitutes a superior offer or the
Issuer gives notice to F&H Acquisition that the Issuer is unable to make the
representations and warranties or perform its obligations under the Revised
Merger Agreement.
Item 7 is hereby amended to add the following Exhibits:
6. Press Release issued by F&H Acquisition Corp., dated
December 28, 2005.
7. Escrow Letter Agreement dated December 28, 2005 by and
among F&H Acquisition Corp., NPSP Acquisition Corp.,
Newcastle Partners, L.P., Steel Partners II, L.P. and
Fox & Hound Restaurant Group.
8. Power of Attorney
------------------------- -------------------------
CUSIP 351321104 13D Page 12 of 22 Pages
------------------------- -------------------------
SIGNATURES
----------
After reasonable inquiry and to the best of his knowledge and
belief, each of the undersigned certifies that the information set forth in this
Statement is true, complete and correct.
Dated: December 29, 2005 NEWCASTLE PARTNERS, L.P.
By: Newcastle Capital Management, L.P.,
its General Partner
By: Newcastle Capital Group, L.L.C.,
its General Partner
By: /s/ Mark E. Schwarz
-----------------------------------
Mark E. Schwarz, Managing Member
NEWCASTLE CAPITAL MANAGEMENT, L.P.
By: Newcastle Capital Group, L.L.C.,
its General Partner
By: /s/ Mark E. Schwarz
------------------------------------
Mark E. Schwarz, Managing Member
NEWCASTLE CAPITAL GROUP, L.L.C.
By: /s/ Mark E. Schwarz
------------------------------------
Mark E. Schwarz, Managing Member
/s/ Mark E. Schwarz
----------------------------------------
MARK E. SCHWARZ
STEEL PARTNERS II, L.P.
By: Steel Partners, L.L.C.
General Partner
By: /s/ Steven Wolosky
------------------------------------
Steven Wolosky
as Attorney In Fact for Warren G. Lichtenstein
------------------------- -------------------------
CUSIP 351321104 13D Page 13 of 22 Pages
------------------------- -------------------------
STEEL PARTNERS, L.L.C.
By: /s/ Steven Wolosky
------------------------------------
Steven Wolosky
as Attorney In Fact for Warren G. Lichtenstein
/s/ Steven Wolosky
----------------------------------------
Steven Wolosky
as Attorney In Fact for Warren G. Lichtenstein
F&H ACQUISITION CORP.
By: /s/ Mark E. Schwarz
------------------------------------
Name: Mark E. Schwarz
Title: President and Chief Executive Officer
NPSP ACQUISITION CORP.
By: /s/ Mark E. Schwarz
------------------------------------
Name: Mark E. Schwarz
Title: President and Chief Executive Officer
------------------------- -------------------------
CUSIP 351321104 13D Page 14 of 22 Pages
------------------------- -------------------------
EXHIBIT INDEX
-------------
Exhibit Page
------- ----
1. Joint Filing Agreement by and among Newcastle Partners, --
L.P., Newcastle Capital Management, L.P., Newcastle Capital
Group, L.L.C., Mark E. Schwarz, Steel Partners II, L.P.,
Steel Partners, L.L.C., Warren G. Lichtenstein and F&H
Acquisition Corp., dated December 12, 2005 (previously
filed).
2. Press release issued by F&H Acquisition Corp., dated --
December 12, 2005 (previously filed).
3. Joint Filing Agreement by and among Newcastle Partners, --
L.P., Newcastle Capital Management, L.P., Newcastle Capital
Group, L.L.C., Mark E. Schwarz, Steel Partners II, L.P.,
Steel Partners, L.L.C., Warren G. Lichtenstein, F&H
Acquisition Corp. and NPSP Acquisition Corp., dated December
22, 2005 (previously filed).
4. Press Release issued by F&H Acquisition Corp., dated --
December 19, 2005 (previously filed).
5. Escrow Letter Agreement dated December 19, 2005 by and among --
F&H Acquisition Corp., NPSP Acquisition Corp., Newcastle
Partners, L.P., Steel Partners II, L.P. and Fox & Hound
Restaurant Group (previously filed).
6. Press Release issued by F&H Acquisition Corp., dated 15-16
December 28, 2005.
7. Escrow Letter Agreement dated December 28, 2005 by and among 17-19
F&H Acquisition Corp., NPSP Acquisition Corp., Newcastle
Partners, L.P., Steel Partners II, L.P. and Fox & Hound
Restaurant Group.
8. Power of Attorney 20-22
------------------------- -------------------------
CUSIP 351321104 13D Page 15 of 22 Pages
------------------------- -------------------------
NEWS RELEASE
CONTACTS:
---------
Dan Sullivan 212-929-5940
Daniel H. Burch 212-929-5748
MacKenzie Partners, Inc.
FOR IMMEDIATE RELEASE:
----------------------
F&H ACQUISITION CORP. ANNOUNCES INCREASE IN TENDER OFFER PRICE
TO $15.50 PER SHARE IN CASH
F&H ACQUISITION CORP. NOW PLANS TO COMMENCE CASH TENDER OFFER
ON OR BEFORE JANUARY 6, 2006
DALLAS, TX - DECEMBER 28, 2005 -- F&H Acquisition Corp., an entity
owned by Newcastle Partners, L.P. and Steel Partners II, L.P., today announced
that it has increased the tender offer price to $15.50 per share for its cash
tender offer to acquire all of the outstanding shares of common stock of Fox &
Hound Restaurant Group (Nasdaq:FOXX) not already owned by it. All other terms
and conditions of the cash tender offer remain unchanged except F&H Acquisition
Corp. now intends to commence the cash tender offer on or before January 6,
2006.
The tender offer will be subject to customary conditions, including (i)
a majority of Fox & Hound's shares on a fully diluted basis being tendered and
not withdrawn, (ii) expiration of the applicable waiting period under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, (iii) the obtaining of all
consents, approvals or authorizations required by all state, city or local
liquor licensing boards, agencies or other similar entities and (iv) Newcastle
and Steel being satisfied that Section 203 of the Delaware General Corporation
Law is inapplicable to the Offer to Purchase and the potential merger
thereafter. The offer will not be subject to or conditioned upon any financing
arrangements.
F&H Acquisition Corp. has delivered to Fox & Hound an amendment to the
fully negotiated merger agreement which is being held in escrow pursuant to a
letter agreement with Fox & Hound. Fox & Hound has agreed to execute and deliver
a fully negotiated merger agreement before January 13, 2006, unless prior to
such time Fox & Hound's Board of Directors has determined that the proposal
contemplated by the merger agreement no longer constitutes a superior offer or
Fox & Hound gives notice to F&H Acquisition Corp. that Fox & Hound is unable to
make the representations and warranties or perform its obligations under the
merger agreement.
- more -
------------------------- -------------------------
CUSIP 351321104 13D Page 16 of 22 Pages
------------------------- -------------------------
F&H Acquisition
Page 2
December 28, 2005
THIS PRESS RELEASE IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT AN OFFER TO BUY
OR THE SOLICITATION OF AN OFFER TO SELL ANY SHARES. THE SOLICITATION AND THE
OFFER TO BUY FOX & HOUND'S COMMON STOCK WILL ONLY BE MADE PURSUANT TO AN OFFER
TO PURCHASE AND RELATED MATERIALS THAT F&H ACQUISITION CORP. INTENDS TO FILE ON
OR BEFORE JANUARY 6, 2006. STOCKHOLDERS SHOULD READ THESE MATERIALS CAREFULLY
BECAUSE THEY CONTAIN IMPORTANT INFORMATION, INCLUDING THE TERMS AND CONDITIONS
OF THE OFFER. STOCKHOLDERS WILL BE ABLE TO OBTAIN THE OFFER TO PURCHASE AND
RELATED MATERIALS WITH RESPECT TO THE TENDER OFFER FREE AT THE SEC'S WEBSITE AT
WWW.SEC.GOV OR FROM F&H ACQUISITION CORP. BY CONTACTING MACKENZIE PARTNERS, INC.
TOLL-FREE AT 1-800-322-2885 OR COLLECT AT 1-212-929-5500 OR VIA EMAIL AT
PROXY@MACKENZIEPARTNERS.COM.
###
------------------------- -------------------------
CUSIP 351321104 13D Page 17 of 22 Pages
------------------------- -------------------------
F&H Acquisition Corp.
NPSP Acquisition Corp.
c/o Newcastle Partners, L.P.
300 Crescent Court, Suite 1110
Dallas, Texas 75201
December 28, 2005
Fox & Hound Restaurant Group
1551 North Waterfront Parkway, Suite 310
Wichita, Kansas 67206
Attention: Steve Johnson
Dear Mr. Johnson:
Reference is made to that certain letter agreement, dated December 19,
2005 (the "Original Escrow Letter"), by and among Fox & Hound Restaurant Group,
a Delaware corporation ("Company"), F&H Acquisition Corp., a Delaware
corporation ("Purchaser"), NPSP Acquisition Corp., a Delaware corporation and
wholly owned subsidiary of Purchaser ("Merger Sub"), Newcastle Partners, L.P., a
Texas limited partnership ("NP"), and Steel Partners II, L.P., a Delaware
limited partnership (together with Purchaser, Merger Sub and NP, the "Acquiring
Parties"), relating to the original Merger Agreement dated December 19, 2005
(the "Original Merger Agreement") executed by the Acquiring Parties and
delivered to the Company with the Original Escrow Letter. This revised letter
(the "Revised Escrow Letter") and the attached revised Merger Agreement (the
"Revised Merger Agreement") are substituted for the Original Escrow Letter and
Original Merger Agreement.
Each of the Acquiring Parties hereby irrevocably agrees that such party
shall not withdraw such party's agreement to the Revised Merger Agreement or
otherwise terminate such party's offer made to the Company as set forth in the
Revised Merger Agreement at any time prior to the earliest of:
(a) 11:59 p.m. (Eastern Standard Time) on January 13, 2006;
(b) notification by the Company that the Company is unable to make
the representations and warranties or perform its obligations in the Revised
Merger Agreement; and
(c) the Board of Directors has determined that the proposal
contemplated by the Revised Merger Agreement is no longer a Superior Proposal
(as defined in Letter of Intent, dated October 4, 2005 (the "Letter of Intent"),
between the Company and Levine Leichtman Capital Partners, Inc., a California
corporation).
The Company shall use reasonable best efforts to cause the execution
and delivery of the Revised Merger Agreement within 24 hours after termination
of the Letter of Intent. Upon such execution and delivery, the Company agrees
------------------------- -------------------------
CUSIP 351321104 13D Page 18 of 22 Pages
------------------------- -------------------------
that the representations and warranties of the Company shall be true and correct
in all material respects as of such time.
Upon execution and delivery of the Revised Merger Agreement by the
Company, the Revised Merger Agreement shall be valid and binding on the each of
the parties thereto in accordance with its terms.
F&H ACQUISITION CORP.
By: /s/ Mark E. Schwarz
------------------------------------
Name: Mark E. Schwarz
Title: President and Chief Executive Officer
NPSP ACQUISITION CORP.
By: /s/ Mark E. Schwarz
------------------------------------
Name: Mark E. Schwarz
Title: President and Chief Executive Officer
NEWCASTLE PARTNERS, L.P.
By: Newcastle Capital Management, L.P.
its General Partner
By: Newcastle Capital Group, L.L.C.
its General Partner
By: /s/ Mark E. Schwarz
------------------------------------
Name: Mark E. Schwarz
Title: Managing Member
STEEL PARTNERS II, L.P.
By: Steel Partners, L.L.C.
General Partner
By: /s/ Warren G. Lichtenstein
------------------------------------
Name: Warren G. Lichtenstein
Title: Managing Member
------------------------- -------------------------
CUSIP 351321104 13D Page 19 of 22 Pages
------------------------- -------------------------
Confirmed and agreed to
this 28th day of December 2005:
FOX & HOUND RESTAURANT GROUP
By: /s/ Steven Johnson
--------------------
Name: Steven Johnson
Title: C.E.O.
------------------------- -------------------------
CUSIP 351321104 13D Page 20 of 22 Pages
------------------------- -------------------------
POWER OF ATTORNEY
Know all by these presents, that each of the undersigned hereby
constitutes and appoints LAUREN ISENMAN signing singly, the undersigned's true
and lawful attorney-in-fact to:
1. execute for and on behalf of the undersigned all documents
relating to the business of Steel Partners II, L.P. including, but not limited
to, all filings with the Securities and Exchange Commission, any stock exchange
and any other regulatory, administrative or similar authority, and all
memoranda, correspondence, communications or the like, except that such
attorney-in-fact shall have no power to execute any document that has the effect
of creating a financial commitment or financial obligation of Steel Partners II,
L.P. or its affiliates.
2. do and perform any and all acts for and on behalf of the
undersigned that may be necessary or desirable to complete and execute any such
document, complete and execute any amendment or amendments thereto, and timely
file such document with the appropriate authority.
3. take any other action of any type whatsoever in connection
with the foregoing which, in the opinion of such attorney-in-fact, may be of
benefit to, in the best interest of, or legally required by, the undersigned, it
being understood that the documents executed by such attorney-in-fact on behalf
of the undersigned pursuant to this Power of Attorney shall be in such form and
shall contain such terms and conditions as such attorney-in-fact may approve in
such attorney-in-fact's discretion.
The undersigned hereby grants to each such attorney-in-fact full power
and authority to do and perform any and every act and thing whatsoever
requisite, necessary, or proper to be done in the exercise of any of the rights
and powers herein granted, as fully to all intents and purposes as the
undersigned might or could do if personally present, with full power of
substitution or revocation, hereby ratifying and confirming all that such
attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall
lawfully do or cause to be done by virtue of this Power of Attorney and the
rights and powers herein granted. The undersigned acknowledges that the
foregoing attorney-in-fact, in serving in such capacity at the request of the
undersigned, is not assuming any of the undersigned's responsibilities to comply
with any rules or regulations including federal securities laws.
This Power of Attorney shall remain in full force and effect until
December 31, 2006 unless earlier revoked by the undersigned in a signed writing
delivered to the foregoing attorney-in-fact.
IN WITNESS WHEREOF, the undersigned has caused this Power of Attorney
to be executed as of this 16th day of December, 2005.
STEEL PARTNERS II, L.P. STEEL PARTNERS, L.L.C.
By: Steel Partners, L.L.C. By: /s/ Warren G. Lichtenstein
General Partner ----------------------------------------
Warren G. Lichtenstein
Managing Member
By: /s/ Warren G. Lichtenstein
------------------------------
Warren G. Lichtenstein /s/ Warren G. Lichtenstein
Managing Member ----------------------------------------
Warren G. Lichtenstein
------------------------- -------------------------
CUSIP 351321104 13D Page 21 of 22 Pages
------------------------- -------------------------
POWER OF ATTORNEY
Know all by these presents, that each of the undersigned hereby
constitutes and appoints STEVEN WOLOSKY signing singly, the undersigned's true
and lawful attorney-in-fact to:
1. execute for and on behalf of the undersigned all documents
relating to the business of Steel Partners II, L.P. including, but not limited
to, all filings with the Securities and Exchange Commission, any stock exchange
and any other regulatory, administrative or similar authority, and all
memoranda, correspondence, communications or the like, except that such
attorney-in-fact shall have no power to execute any document that has the effect
of creating a financial commitment or financial obligation of Steel Partners II,
L.P. or its affiliates.
2. do and perform any and all acts for and on behalf of the
undersigned that may be necessary or desirable to complete and execute any such
document, complete and execute any amendment or amendments thereto, and timely
file such document with the appropriate authority.
3. take any other action of any type whatsoever in connection
with the foregoing which, in the opinion of such attorney-in-fact, may be of
benefit to, in the best interest of, or legally required by, the undersigned, it
being understood that the documents executed by such attorney-in-fact on behalf
of the undersigned pursuant to this Power of Attorney shall be in such form and
shall contain such terms and conditions as such attorney-in-fact may approve in
such attorney-in-fact's discretion.
The undersigned hereby grants to each such attorney-in-fact full power
and authority to do and perform any and every act and thing whatsoever
requisite, necessary, or proper to be done in the exercise of any of the rights
and powers herein granted, as fully to all intents and purposes as the
undersigned might or could do if personally present, with full power of
substitution or revocation, hereby ratifying and confirming all that such
attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall
lawfully do or cause to be done by virtue of this Power of Attorney and the
rights and powers herein granted. The undersigned acknowledges that the
foregoing attorney-in-fact, in serving in such capacity at the request of the
undersigned, is not assuming any of the undersigned's responsibilities to comply
with any rules or regulations including federal securities laws.
This Power of Attorney shall remain in full force and effect until
December 31, 2006 unless earlier revoked by the undersigned in a signed writing
delivered to the foregoing attorney-in-fact.
IN WITNESS WHEREOF, the undersigned has caused this Power of Attorney
to be executed as of this 16th day of December, 2005.
STEEL PARTNERS II, L.P. STEEL PARTNERS, L.L.C.
By: Steel Partners, L.L.C. By: /s/ Warren G. Lichtenstein
General Partner ----------------------------------------
Warren G. Lichtenstein
Managing Member
By: /s/ Warren G. Lichtenstein
------------------------------
Warren G. Lichtenstein /s/ Warren G. Lichtenstein
Managing Member ----------------------------------------
Warren G. Lichtenstein
------------------------- -------------------------
CUSIP 351321104 13D Page 22 of 22 Pages
------------------------- -------------------------
POWER OF ATTORNEY
Know all by these presents, that each of the undersigned hereby
constitutes and appoints JACK L. HOWARD signing singly, the undersigned's true
and lawful attorney-in-fact to:
1. execute for and on behalf of the undersigned all documents
relating to the business of Steel Partners II, L.P. including, but not limited
to, all filings with the Securities and Exchange Commission, any stock exchange
and any other regulatory, administrative or similar authority, and all
memoranda, correspondence, communications or the like, except that such
attorney-in-fact shall have no power to execute any document that has the effect
of creating a financial commitment or financial obligation of Steel Partners II,
L.P. or its affiliates.
2. do and perform any and all acts for and on behalf of the
undersigned that may be necessary or desirable to complete and execute any such
document, complete and execute any amendment or amendments thereto, and timely
file such document with the appropriate authority.
3. take any other action of any type whatsoever in connection
with the foregoing which, in the opinion of such attorney-in-fact, may be of
benefit to, in the best interest of, or legally required by, the undersigned, it
being understood that the documents executed by such attorney-in-fact on behalf
of the undersigned pursuant to this Power of Attorney shall be in such form and
shall contain such terms and conditions as such attorney-in-fact may approve in
such attorney-in-fact's discretion.
The undersigned hereby grants to each such attorney-in-fact full power
and authority to do and perform any and every act and thing whatsoever
requisite, necessary, or proper to be done in the exercise of any of the rights
and powers herein granted, as fully to all intents and purposes as the
undersigned might or could do if personally present, with full power of
substitution or revocation, hereby ratifying and confirming all that such
attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall
lawfully do or cause to be done by virtue of this Power of Attorney and the
rights and powers herein granted. The undersigned acknowledges that the
foregoing attorney-in-fact, in serving in such capacity at the request of the
undersigned, is not assuming any of the undersigned's responsibilities to comply
with any rules or regulations including federal securities laws.
This Power of Attorney shall remain in full force and effect until
December 31, 2006 unless earlier revoked by the undersigned in a signed writing
delivered to the foregoing attorney-in-fact.
IN WITNESS WHEREOF, the undersigned has caused this Power of Attorney
to be executed as of this 16th day of December, 2005.
STEEL PARTNERS II, L.P. STEEL PARTNERS, L.L.C.
By: Steel Partners, L.L.C. By: /s/ Warren G. Lichtenstein
General Partner ----------------------------------------
Warren G. Lichtenstein
Managing Member
By: /s/ Warren G. Lichtenstein
------------------------------
Warren G. Lichtenstein /s/ Warren G. Lichtenstein
Managing Member ----------------------------------------
Warren G. Lichtenstein