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. 5)1
Hallmark Financial Services, Inc.
---------------------------------
(Name of Issuer)
Shares of Common Stock, Par Value $0.03 Per Share
-------------------------------------------------
(Title of Class of Securities)
40624Q104
---------
(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)
January 27, 2006
-----------------
(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 / /.
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 14 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 40624Q104 13D Page 2 of 14 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 67,520,362
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
67,520,362
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
67,520,362
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
63.5%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------------------ -----------------------
CUSIP 40624Q104 13D Page 3 of 14 Pages
------------------------------ -----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS.OF ABOVE PERSONS (ENTITIES ONLY)
NEWCASTLE SPECIAL OPPORTUNITY FUND I, 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
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 9,804,687(1)
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
9,804,687
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
9,804,687
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.2%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
1 Does not include shares owned by Newcastle Partners, L.P., which are
subject to a voting agreement between Newcastle Partners, L.P. and
Newcastle Special Opportunity Fund I, L.P. described in Item 6 of this
Schedule 13D.
------------------------------ -----------------------
CUSIP 40624Q104 13D Page 4 of 14 Pages
------------------------------ -----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS.OF ABOVE PERSONS (ENTITIES ONLY)
NEWCASTLE SPECIAL OPPORTUNITY FUND II, 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
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 9,726,562(1)
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
9,726,562
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
9,726,562
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.1%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
1 Does not include shares owned by Newcastle Partners, L.P., which are
subject to a voting agreement between Newcastle Partners, L.P. and
Newcastle Special Opportunity Fund II, L.P. described in Item 6 of this
Schedule 13D.
------------------------------ -----------------------
CUSIP 40624Q104 13D Page 5 of 14 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 87,051,611
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
87,051,611
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
87,051,611
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
81.8%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------------------ -----------------------
CUSIP 40624Q104 13D Page 6 of 14 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 87,051,611
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
87,051,611
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
87,051,611
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
81.8%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------------------ -----------------------
CUSIP 40624Q104 13D Page 7 of 14 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, PF
--------------------------------------------------------------------------------
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 87,344,536
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
87,344,536
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
87,344,536
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
82.1%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------------------ -----------------------
CUSIP 40624Q104 13D Page 8 of 14 Pages
------------------------------ -----------------------
The following constitutes Amendment No. 5 ("Amendment No. 5") to the
Schedule 13D filed by the undersigned. This Amendment No. 5 amends the Schedule
13D as specifically set forth herein.
Item 2 is hereby amended and restated to read as follows:
(a)-(c) This statement is jointly filed by Newcastle Partners, L.P., a
Texas limited partnership ("NP"), Newcastle Special Opportunity Fund I, L.P., a
Delaware limited partnership ("NSOF I"), Newcastle Special Opportunity Fund II,
L.P., a Delaware limited partnership ("NSOF II"), Newcastle Capital Management,
L.P., a Texas limited partnership ("NCM"), Newcastle Capital Group, L.L.C., a
Texas limited liability company ("NCG"), and Mark E. Schwarz (together with NP,
NSOF I, NSOF II, NCM and NCG, the "Reporting Persons"). Because Mark Schwarz is
the managing member of NCG, which is the general partners of NCM (with Mark
Schwarz, NCG and NCM hereinafter referred to as the "Controlling Persons"),
which in turn is the general partner of each of NP, NSOF I and NSOF II, the
Controlling Persons may be deemed, pursuant to Rule 13d-3 of the Securities
Exchange Act of 1934, as amended (the "Act"), to be the beneficial owners of all
shares of Common Stock held by each of NP, NSOF I and NSOF II. The Reporting
Persons are filing this joint statement, as they may be considered a "group"
under Section 13(d)(3) of the Act. However, neither the fact of this filing nor
anything contained herein shall be deemed an admission by the Reporting Persons
that such a group exists.
As stated above, Mark Schwarz is the managing member of NCG. The
principal business of NCG is acting as the general partner of NCM. The principal
business of NCM is acting as the general partner of each of NP, NSOF I and NSOF
II. The principal business of each of NP, NSOF I and NSOF II is investing in
securities. The principal place of business and principal office for each of the
Reporting Persons is 300 Crescent Court, Suite 1110, Dallas, Texas 75201.
(d) During the last five years, none of the Reporting Persons has been
convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors).
(e) During the last five years, none of the Reporting Persons has been
a party to a civil proceeding of a judicial or administrative body of competent
jurisdiction, and as a result of such proceeding, was or is subject to a
judgment, decree or final order enjoining future violations of, or prohibiting
or mandating activities subject to, federal or state securities laws or finding
any violation with respect to such laws.
(f) Mark Schwarz is a United States citizen.
Item 3 is hereby amended and restated to read as follows:
As of January 27, 2006, NP had invested $49,120,351 (inclusive of
brokerage commissions) in shares of Common Stock of the Issuer. The source of
these funds was the working capital of NP.
------------------------------ -----------------------
CUSIP 40624Q104 13D Page 9 of 14 Pages
------------------------------ -----------------------
As of January 27, 2006, NSOF I had invested $12,550,000 in a promissory
note that is convertible into shares of Common Stock of the Issuer, subject to
the conditions described in Item 6 herein. The source of these funds was the
working capital of NSOF I.
As of January 27, 2006, NSOF II had invested $12,450,000 in a
promissory note that is convertible into shares of Common Stock of the Issuer,
subject to the conditions described in Item 6 herein. The source of these funds
was the working capital of NSOF II.
As of January 27, 2006, Mark Schwarz had invested $242,382 (inclusive
of brokerage commissions) in shares of Common Stock of the Issuer. The source of
these funds was the personal funds of Mr. Schwarz.
Item 4 is hereby amended to add the following:
On January 27, 2006, each of NSOF I and NSOF II, pursuant to separate
purchase agreements entered into with the Issuer (each, a "Purchase Agreement"
and, together, the "Purchase Agreements"), purchased a promissory note in the
original principal amount of $12,550,000 and $12,450,000, respectively (each, a
"Note" and, together, the "Notes"), that, subject to the conditions described in
Item 6 herein, is convertible into 9,804,687 shares and 9,726,562 shares,
respectively, of Common Stock of the Issuer, based upon conversion of the
original principal amounts of each of the Notes at the initial conversion price
of $1.28 per share.
Item 5(a)-(b) is hereby amended and restated to read as follows:
(a) The aggregate percentage of shares of Common Stock reported to be
owned by the Reporting Persons is based upon 86,841,791 shares outstanding,
which is the total number of shares of Common Stock outstanding as of November
14, 2005, plus an aggregate of 19,531,249 shares of Common Stock issuable upon
conversion of the Notes, based upon conversion of the original principal amounts
of the Notes at the initial conversion price of $1.28 per share.
As of the filing date of this statement, NP beneficially owned
67,520,362 shares of Common Stock, representing approximately 63.5% of the
issued and outstanding Common Stock of the Issuer.
Subject to the conditions described in Item 6 herein, NSOF I may be
deemed to beneficially own 9,804,687 shares of Common Stock issuable upon
conversion of the original principal amount of its Note, based upon the initial
conversion price of $1.28 per share, representing approximately 9.2% of the
issued and outstanding Common Stock of the Issuer.
Subject to the conditions described in Item 6 herein, NSOF II may be
deemed to beneficially own 9,726,562 shares of Common Stock issuable upon
conversion of the original principal amount of its Note, based upon the initial
conversion price of $1.28 per share, representing approximately 9.1% of the
issued and outstanding Common Stock of the Issuer.
------------------------------ -----------------------
CUSIP 40624Q104 13D Page 10 of 14 Pages
------------------------------ -----------------------
NCM, as the general partner of each of NP, NSOF I and NSOF II, may be
deemed to beneficially own the 67,520,362 shares, 9,804,687 shares and 9,726,562
shares of Common Stock beneficially owned by NP, NSOF I and NSOF II,
respectively, representing approximately 81.8% of the issued and outstanding
Common Stock of the Issuer.
NCG, as the general partner of NCM, which in turn is the general
partner of each of NP, NSOF I and NSOF II, may also be deemed to beneficially
own the 67,520,362 shares, 9,804,687 shares and 9,726,562 shares of Common Stock
beneficially owned by NP, NSOF I and NSOF II, respectively, representing
approximately 81.8% of the issued and outstanding Common Stock of the Issuer.
Mark Schwarz, as the managing member of NCG, the general partner of
NCM, which in turn is the general partner of each of NP, NSOF I and NSOF II, may
also be deemed to beneficially own the 67,520,362 shares, 9,804,687 shares and
9,726,562 shares of Common Stock beneficially owned by NP, NSOF I and NSOF II,
respectively, which, together with the 292,925 shares of Common Stock Mr.
Schwarz owns directly, represents approximately 82.1% of the issued and
outstanding Common Stock of the Issuer.
NCM, NCG and Mr. Schwarz disclaim beneficial ownership of the shares of
Common Stock beneficially owned by NP, NSOF I and NSOF II, except to the extent
of their pecuniary interest therein.
(b) By virtue of his position with NP, NSOF I, NSOF II, NCM and NCG,
Mr. Schwarz has the sole power to vote and dispose of the shares of Common Stock
reported in this statement.
Item 5(c) is hereby amended to add the following:
There were no transactions by the Reporting Persons in the shares of
Common Stock during the past 60 days other than the purchase by NSOF I and NSOF
II of the Notes described in Item 6 herein.
Item 6 is hereby amended to add the following:
On January 27, 2006, each of NSOF I and NSOF II, pursuant to the
Purchase Agreements, purchased from the Issuer a Note in the original principal
amount of $12,550,000 and $12,450,000, respectively. Subject to the conditions
described in the following paragraph, the principal of, and accrued but unpaid
interest on, the Notes are convertible into Common Stock of the Issuer at any
time at the option of NSOF I or NSOF II, and any unconverted portion of the
Notes will be converted into Common Stock on July 27, 2007, the maturity date of
the Notes. The initial conversion price of the Notes is $1.28 per share, subject
to customary anti-dilution adjustments. If the Issuer consummates a rights
offering on or before October 27, 2006 and the price to acquire one share of
Common Stock (or the equivalent thereof) pursuant to such rights offering (the
"Rights Offering Price") is less than the conversion price then in effect, the
conversion price will be reduced to an amount equal to the Rights Offering
Price.
------------------------------ -----------------------
CUSIP 40624Q104 13D Page 11 of 14 Pages
------------------------------ -----------------------
The Purchase Agreements obligate the Issuer to hold its annual meeting
of shareholders no later than May 31, 2006 and to solicit its shareholders'
approval at the annual meeting of resolutions providing for (1) the issuance of
all of the shares of Common Stock upon conversion of the Notes, as required by
the rules and regulations of the American Stock Exchange, and (2) the increase
in the Issuer's authorized capital by at least 20,000,000 shares of Common
Stock. Approval of the former proposal is a condition to the issuance of any
shares of Common Stock upon conversion of the Notes, and approval of the latter
proposal is required to enable the full conversion of the Notes. Pursuant to a
voting agreement between NP and each of NSOF I and NSOF II (each, a "Voting
Agreement" and, together, the "Voting Agreements"), NP has agreed to vote all
shares of Common Stock held beneficially or of record by it in favor of these
proposals.
In connection with NSOF I's and NSOF II's purchase of the Notes, the
Issuer, pursuant to a registration rights agreement entered into with each of
NSOF I and NSOF II (each, a "Registration Rights Agreement" and, together, the
"Registration Rights Agreements"), granted NSOF I and NSOF II the following
registration rights with respect to the shares of Common Stock issuable upon
conversion of the Notes (the "Registrable Securities"): (1) one right to request
that the Issuer register all or part of the Registrable Securities; (2)
unlimited "piggyback" rights to require the Issuer to include Registrable
Securities in registration statements filed by the Issuer; and (3) the right to
cause the Issuer to file a shelf registration statement covering all of the
Registrable Securities by January 27, 2009, subject to certain limitations.
A form of each of the Purchase Agreement, the Note, the Registration
Rights Agreement and the Voting Agreement is attached as an exhibit hereto and
is incorporated herein by reference.
Other than as described herein, there are no contracts, arrangements,
understandings or relationships among the Reporting Persons, or between the
Reporting Persons and any other person, with respect to the securities of the
Issuer.
Item 7 is hereby amended to add the following exhibits:
Exhibit 99.1 Joint Filing Agreement
Exhibit 99.2 Form of Purchase Agreement
Exhibit 99.3 Form of Note
Exhibit 99.4 Form of Registration Rights Agreement
Exhibit 99.5 Form of Voting Agreement
------------------------------ -----------------------
CUSIP 40624Q104 13D Page 12 of 14 Pages
------------------------------ -----------------------
SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief,
the undersigned certify that the information set forth in this statement is
true, complete and correct.
Dated: January 31, 2006 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 Schwarz
-----------------------------------
Mark Schwarz, Managing Member
NEWCASTLE SPECIAL OPPORTUNITY FUND I,
L.P.
By: Newcastle Capital Management, L.P.,
its general partner
By: Newcastle Capital Group, L.L.C.,
its general partner
By: /s/ Mark Schwarz
-----------------------------------
Mark Schwarz, Managing Member
NEWCASTLE SPECIAL OPPORTUNITY FUND II,
L.P.
By: Newcastle Capital Management, L.P.,
its general partner
By: Newcastle Capital Group, L.L.C.,
its general partner
By: /s/ Mark Schwarz
-----------------------------------
Mark Schwarz, Managing Member
NEWCASTLE CAPITAL MANAGEMENT, L.P.
By: Newcastle Capital Group, L.L.C.,
its general partner
By: /s/ Mark Schwarz
-----------------------------------
Mark Schwarz, Managing Member
------------------------------ -----------------------
CUSIP 40624Q104 13D Page 13 of 14 Pages
------------------------------ -----------------------
NEWCASTLE CAPITAL GROUP, L.L.C.
By: /s/ Mark Schwarz
-----------------------------------
Mark Schwarz, Managing Member
/s/ Mark Schwarz
---------------------------------------
MARK SCHWARZ
------------------------------ -----------------------
CUSIP 40624Q104 13D Page 14 of 14 Pages
------------------------------ -----------------------
EXHIBIT INDEX
Exhibit
-------
99.1 Joint Filing Agreement
99.2 Form of Purchase Agreement
99.3 Form of Note
99.4 Form of Registration Rights Agreement
99.5 Form of Voting Agreement