sec document
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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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. 1)(1)
New Century Equity Holdings Corp.
---------------------------------
(Name of Issuer)
Common Stock, $.01 Par Value
----------------------------
(Title of Class of Securities)
64353J107
---------
(CUSIP Number)
Steven J. Pully
Newcastle Capital Management, L.P.
300 Crescent Court, Suite 1110
Dallas, Texas 75201
(214) 661-7474
--------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
April 10, 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 12 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).
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CUSIP 64353J107 13D Page 2 of 12 Pages
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================================================================================
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 19,380,768**
OWNED BY
EACH -----------------------------------------------------------------
REPORTING 8 SHARED VOTING POWER
PERSON WITH
- 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
19,380,768**
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
19,380,768**
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
36.0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
** Consists of (a) 150,000 shares of Common Stock held by Newcastle Partners,
L.P. and (b) 19,230,768 shares of Common Stock issuable upon conversion of
Series A 4% Convertible Preferred Stock held by Newcastle Partners, L.P.
Newcastle Partners, L.P. has the power to vote the 19,230,768 shares underlying
the Series A 4% Convertible Preferred Stock on all matters on which holders of
Common Stock of the Issuer are entitled to vote.
------------------ ----------------------
CUSIP 64353J107 13D Page 3 of 12 Pages
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================================================================================
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 19,380,768**
OWNED BY
EACH -----------------------------------------------------------------
REPORTING 8 SHARED VOTING POWER
PERSON WITH
- 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
19,380,768**
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
19,380,768**
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
36.0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
** Consists of (a) 150,000 shares of Common Stock held by Newcastle Partners,
L.P. and (b) 19,230,768 shares of Common Stock issuable upon conversion of
Series A 4% Convertible Preferred Stock held by Newcastle Partners, L.P.
Newcastle Partners, L.P. has the power to vote the 19,230,768 shares underlying
the Series A 4% Convertible Preferred Stock on all matters on which holders of
Common Stock of the Issuer are entitled to vote.
------------------ ----------------------
CUSIP 64353J107 13D Page 4 of 12 Pages
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================================================================================
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 19,380,768**
OWNED BY
EACH -----------------------------------------------------------------
REPORTING 8 SHARED VOTING POWER
PERSON WITH
- 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
19,380,768**
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
19,380,768**
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
36.0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
** Consists of (a) 150,000 shares of Common Stock held by Newcastle Partners,
L.P. and (b) 19,230,768 shares of Common Stock issuable upon conversion of
Series A 4% Convertible Preferred Stock held by Newcastle Partners, L.P.
Newcastle Partners, L.P. has the power to vote the 19,230,768 shares underlying
the Series A 4% Convertible Preferred Stock on all matters on which holders of
Common Stock of the Issuer are entitled to vote.
------------------ ----------------------
CUSIP 64353J107 13D Page 5 of 12 Pages
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================================================================================
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 19,480,768**
OWNED BY
EACH -----------------------------------------------------------------
REPORTING 8 SHARED VOTING POWER
PERSON WITH
- 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
19,480,768**
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
19,480,768**
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
36.1%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
** Consists of (a) 150,000 shares of Common Stock held by Newcastle Partners,
L.P., (b) 19,230,768 shares of Common Stock issuable upon conversion of Series A
4% Convertible Preferred Stock held by Newcastle Partners, L.P., and (c) 100,000
shares of Common Stock issuable upon the exercise of stock options held by Mr.
Schwarz. Newcastle Partners, L.P. has the power to vote the 19,230,768 shares
underlying the Series A 4% Convertible Preferred Stock on all matters on which
holders of Common Stock of the Issuer are entitled to vote.
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CUSIP 64353J107 13D Page 6 of 12 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
STEVEN J. PULLY
--------------------------------------------------------------------------------
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 100,000
OWNED BY
EACH -----------------------------------------------------------------
REPORTING 8 SHARED VOTING POWER
PERSON WITH
- 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
100,000
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
100,000
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
Less than 1%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------ ----------------------
CUSIP 64353J107 13D Page 7 of 12 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
JOHN P. MURRAY
--------------------------------------------------------------------------------
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 33,333
OWNED BY
EACH -----------------------------------------------------------------
REPORTING 8 SHARED VOTING POWER
PERSON WITH
- 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
33,333
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
33,333
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
Less than 1%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------ ----------------------
CUSIP 64353J107 13D Page 8 of 12 Pages
------------------ ----------------------
The following constitutes Amendment No. 1 ("Amendment No. 1") to the
Schedule 13D filed by the undersigned. This Amendment No. 1 is jointly filed by
Newcastle Partners, L.P., a Texas limited partnership ("NP"), Newcastle Capital
Management, L.P., a Texas limited partnership ("NCM"), Newcastle Capital Group,
L.L.C., a Texas limited liability company ("NCG"), Mark E. Schwarz, Steven J.
Pully and John P. Murray relating to shares of common stock (the "Common Stock")
of New Century Equity Holdings Corp., a Delaware corporation (the "Issuer").
This Amendment No. 1 amends the Schedule 13D as specifically set forth.
Item 4 is hereby amended to add the following:
On April 10, 2006, NP delivered a letter notifying the Issuer of NP's
irrevocable intent to convert all of its Series A 4% Convertible Preferred Stock
(the "Preferred Stock") of the Issuer into 19,230,768 shares of Common Stock of
the Issuer following and subject to final confirmation by the Delaware Chancery
Court of a Stipulation and Agreement dated as of February 21, 2006 in connection
with a pending lawsuit in which derivative and other claims have been made by a
stockholder of the Issuer against various parties. The conversion of the
Preferred Stock does not affect the Reporting Persons' ownership of the shares
of Common Stock reported herein as the shares underlying the Preferred Stock are
already reported as beneficially owned by NP. A copy of the letter is attached
as an exhibit hereto and incorporated herein by reference.
Item 5 is hereby amended and restated as follows:
(a) The aggregate percentage of shares of Common Stock reported to be
owned by the Reporting Persons is based upon 34,653,104 shares outstanding,
which is the total number of shares of Common Stock outstanding as reported in
the Issuer's Form 10-K for the year ended December 31, 2005.
As of the filing date of this Statement, NP beneficially owned
19,380,768 shares of Common Stock, representing approximately 36.0% of the
issued and outstanding Common Stock of the Issuer. Included therein are the
19,230,768 shares of Common Stock issuable upon conversion of the Preferred
Stock, which NP intends to convert as discussed in further detail in Item 4.
NCM, as the general partner of NP, may also be deemed to beneficially
own the 19,380,768 shares of Common Stock beneficially owned by NP.
NCG, as the general partner of NCM, which in turn is the general
partner of NP, may also be deemed to beneficially own the 19,380,768 shares of
Common Stock beneficially owned by NP.
Mark E. Schwarz, as the managing member of NCG, the general partner of
NCM, which in turn is the general partner of NP, may also be deemed to
beneficially own the 19,380,768 shares of Common Stock beneficially owned by NP.
Mr. Schwarz also beneficially owns an additional 100,000 shares of Common Stock
issuable upon the exercise of options granted to Mr. Schwarz in his capacity as
a director of the Issuer, which, together with the 19,380,768 shares of Common
Stock beneficially owned by NP, represents approximately 36.1% of the issued and
outstanding Common Stock of the Issuer.
Steven J. Pully and John P. Murray beneficially own 100,000 shares and
33,333 shares, respectively, that are issuable upon exercise of options within
60 days of the date hereof. Messrs. Pully and Murray were awarded these options
in their capacities as officers of the Issuer.
(b) By virtue of his position with NP, NCM and NCG, Mark E. Schwarz
has the sole power to vote and dispose of the shares of Common Stock
beneficially owned by NP reported in this Statement. Messrs. Schwarz, Pully and
Murray each has the sole power to vote and dispose of the shares of Common Stock
reported as beneficially owned by each of them in this Statement.
(c) There have been no transactions in the securities of the Issuer
during the past sixty days by the Reporting Persons.
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CUSIP 64353J107 13D Page 9 of 12 Pages
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(d) No person other than the Reporting Persons is known to have the
right to receive, or the power to direct the receipt of dividends from, or
proceeds from the sale of, the shares of Common Stock.
(e) Not applicable.
Item 6 is hereby amended to add the following:
Other than the matter discussed in Item 4, 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 exhibit:
3. Letter from Newcastle Partners, L.P. to New Century Equity
Holdings Corp. dated April 10, 2006.
------------------ ----------------------
CUSIP 64353J107 13D Page 10 of 12 Pages
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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: April 21, 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 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
/s/ Steven J. Pully
-------------------------------------
STEVEN J. PULLY
/s/ John P. Murray
-------------------------------------
JOHN P. MURRAY
------------------ ----------------------
CUSIP 64353J107 13D Page 11 of 12 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, Steven J. Pully
and John P. Murray dated June 28, 2004 (previously filed). --
2. Asset Purchase Agreement by and between Newcastle
Partners, L.P. and New Century Equity Holdings Corp.
dated June 18, 2004 (previously filed). --
3. Letter from Newcastle Partners, L.P. to New Century
Equity Holdings Corp., dated April 10, 2006. 12
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CUSIP 64353J107 13D Page 12 of 12 Pages
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April 10, 2006
New Century Equity Holdings Corp.
300 Crescent Court, Suite 1110
Dallas, Texas 75201
Gentlemen:
Newcastle Partners, L.P. hereby serves notice of its irrevocable intent to
convert all of its Series A Convertible Preferred Stock of New Century Equity
Holdings Corp. (the "Preferred Stock") following and subject to final
confirmation by the Delaware Chancery Court of the Stipulation and Agreement
dated as of February 21, 2006 ("Stipulation") but before the record date
described in such Stipulation. Enclosed herewith is Certificate # 1 representing
4,807,692 shares of Preferred Stock, which is being provided to you to hold in
escrow pending its conversion. The Company will effect a conversion one-business
day before the Record Date, as such term is defined in Section 2 of the
Stipulation, without the need for any further notice or action from Newcastle.
If the Stipulation is not approved by the Delaware Chancery Court, Certificate 1
shall be returned to Newcastle Partners, L.P.
Sincerely,
Newcastle Partners, L.P.
/s/ Mark E. Schwarz
-------------------
By: Mark E. Schwarz
Newcastle Capital Management, L.P.
AGREED & ACCEPTED:
New Century Equity Holdings Corp.
BY: /s/ Steven J. Pully
-----------------------
Steven J. Pully
Chief Executive Officer