-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KAm9h80GWQMJ/ov6/p2gQydPv6zJzuNbXqfglr1q/jXI4GC2aoN4wWK62P5jMbqe mrXq1ew/HlXp9DZDWh29sw== 0000899140-06-001249.txt : 20060821 0000899140-06-001249.hdr.sgml : 20060821 20060821170717 ACCESSION NUMBER: 0000899140-06-001249 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20060821 DATE AS OF CHANGE: 20060821 GROUP MEMBERS: KENNETH H. SHUBIN STEIN, MD, CFA GROUP MEMBERS: SPENCER CAPITAL OFFSHORE OPPORTUNITY FUND, LTD. GROUP MEMBERS: SPENCER CAPITAL OFFSHORE PARTNERS, LLC GROUP MEMBERS: SPENCER CAPITAL OPPORTUNITY FUND, LP GROUP MEMBERS: SPENCER CAPITAL PARTNERS, LLC GROUP MEMBERS: STEPHEN ROSEMAN, CFA GROUP MEMBERS: THESIS CAPITAL MANAGEMENT, LLC GROUP MEMBERS: THESIS CAPITAL MASTER FUND LIMITED GROUP MEMBERS: THESIS CAPITAL, LP SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: CELEBRATE EXPRESS, INC. CENTRAL INDEX KEY: 0001100124 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-MISC GENERAL MERCHANDISE STORES [5399] IRS NUMBER: 911644428 FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-80362 FILM NUMBER: 061046860 BUSINESS ADDRESS: STREET 1: 11220 120TH AVENUE NORTHEAST CITY: KIRKLAND STATE: WA ZIP: 98033 BUSINESS PHONE: 4262501057 MAIL ADDRESS: STREET 1: 11220 120TH AVENUE NORTHEAST CITY: KIRKLAND STATE: WA ZIP: 98033 FORMER COMPANY: FORMER CONFORMED NAME: CELEBRATEEXPRESS COM INC DATE OF NAME CHANGE: 20000111 FORMER COMPANY: FORMER CONFORMED NAME: BIRTHDAY EXPRESS COM INC DATE OF NAME CHANGE: 19991130 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: Spencer Capital Management, LLC CENTRAL INDEX KEY: 0001311910 IRS NUMBER: 820581852 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 200 W. 57TH STREET, SUITE 602 CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 212-586-4198 MAIL ADDRESS: STREET 1: 200 W. 57TH STREET, SUITE 602 CITY: NEW YORK STATE: NY ZIP: 10019 SC 13D/A 1 c3373091b.txt AMENDMENT NO. 5 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D (Amendment No. 5) Under the Securities Exchange Act of 1934* Celebrate Express, Inc. - -------------------------------------------------------------------------------- (Name of Issuer) Common Stock, par value $0.001 per share - -------------------------------------------------------------------------------- (Title of Class of Securities) 15100A104 - -------------------------------------------------------------------------------- (CUSIP Number) Kenneth H. Shubin Stein, MD, CFA Stephen Roseman, CFA Spencer Capital Management, LLC Thesis Capital Management, LLC 1995 Broadway, Suite 1801 60 E. 42nd St., Suite 1245 New York, NY 10023 The Lincoln Building Telephone: (212) 586-4190 New York, NY 10165 Telephone: (212) 585-0100 - -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) Copies to: Michael A. Schwartz, Esq. John Olmstead, Esq. Willkie Farr & Gallagher LLP Faust Rabbach & Oppenheim, LLP 787 Seventh Avenue 488 Madison Avenue, 10th Floor New York, NY 10019-6099 New York, NY 10022 Telephone: (212) 728-8000 Telephone: (212) 751-7700 August 17, 2006 - -------------------------------------------------------------------------------- (Date of Event which Requires Filing of this Schedule) 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 ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-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 240.13d-7 for other parties to whom copies are to be sent. * 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 ("Act") 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). SCHEDULE 13D - ----------------------- ------------------- CUSIP No. 15100A104 Page 2 of 17 Pages - ----------------------- ------------------- - ----------- -------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Kenneth H. Shubin Stein, MD, CFA - ----------- -------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ----------- -------------------------------------------------------------------- 3 SEC USE ONLY - ----------- -------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - ----------- -------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - ----------- -------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION United States - --------------------- --------- ------------------------------------------------ 7 SOLE VOTING POWER 0 --------- ------------------------------------------------ 8 SHARED VOTING POWER 1,200,697 --------- ------------------------------------------------ 9 SOLE DISPOSITIVE POWER 0 --------- ------------------------------------------------ 10 SHARED DISPOSITIVE POWER 1,200,697 - ----------- -------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 1,200,697 - ----------- -------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - ----------- -------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 15.5% - ----------- -------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - ----------- -------------------------------------------------------------------- SCHEDULE 13D - ----------------------- ------------------- CUSIP No. 15100A104 Page 3 of 17 Pages - ----------------------- ------------------- - ----------- -------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Spencer Capital Management, LLC - ----------- -------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ----------- -------------------------------------------------------------------- 3 SEC USE ONLY - ----------- -------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - ----------- -------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - ----------- -------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - --------------------- --------- ------------------------------------------------ 7 SOLE VOTING POWER 0 --------- ------------------------------------------------ 8 SHARED VOTING POWER 1,200,697 --------- ------------------------------------------------ 9 SOLE DISPOSITIVE POWER 0 --------- ------------------------------------------------ 10 SHARED DISPOSITIVE POWER 1,200,697 - ----------- -------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 1,200,697 - ----------- -------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - ----------- -------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 15.5% - ----------- -------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - ----------- -------------------------------------------------------------------- SCHEDULE 13D - ----------------------- ------------------- CUSIP No. 15100A104 Page 4 of 17 Pages - ----------------------- ------------------- - ----------- -------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Spencer Capital Opportunity Fund, LP - ----------- -------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ----------- -------------------------------------------------------------------- 3 SEC USE ONLY - ----------- -------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - ----------- -------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - ----------- -------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - --------------------- --------- ------------------------------------------------ 7 SOLE VOTING POWER 0 --------- ------------------------------------------------ 8 SHARED VOTING POWER 718,995 --------- ------------------------------------------------ 9 SOLE DISPOSITIVE POWER 0 --------- ------------------------------------------------ 10 SHARED DISPOSITIVE POWER 718,995 - ----------- -------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 718,995 - ----------- -------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - ----------- -------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.3% - ----------- -------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - ----------- -------------------------------------------------------------------- SCHEDULE 13D - ----------------------- ------------------- CUSIP No. 15100A104 Page 5 of 17 Pages - ----------------------- ------------------- - ----------- -------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Spencer Capital Partners, LLC - ----------- -------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ----------- -------------------------------------------------------------------- 3 SEC USE ONLY - ----------- -------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - ----------- -------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - ----------- -------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - --------------------- --------- ------------------------------------------------ 7 SOLE VOTING POWER 0 --------- ------------------------------------------------ 8 SHARED VOTING POWER 718,995 --------- ------------------------------------------------ 9 SOLE DISPOSITIVE POWER 0 --------- ------------------------------------------------ 10 SHARED DISPOSITIVE POWER 718,995 - ----------- -------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 718,995 - ----------- -------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - ----------- -------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.3% - ----------- -------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - ----------- -------------------------------------------------------------------- SCHEDULE 13D - ----------------------- ------------------- CUSIP No. 15100A104 Page 6 of 17 Pages - ----------------------- ------------------- - ----------- -------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Spencer Capital Offshore Opportunity Fund, Ltd. - ----------- -------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ----------- -------------------------------------------------------------------- 3 SEC USE ONLY - ----------- -------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - ----------- -------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - ----------- -------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Cayman Islands - --------------------- --------- ------------------------------------------------ 7 SOLE VOTING POWER 0 --------- ------------------------------------------------ 8 SHARED VOTING POWER 481,702 --------- ------------------------------------------------ 9 SOLE DISPOSITIVE POWER 0 --------- ------------------------------------------------ 10 SHARED DISPOSITIVE POWER 481,702 - ----------- -------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 481,702 - ----------- -------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - ----------- -------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.2% - ----------- -------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - ----------- -------------------------------------------------------------------- SCHEDULE 13D - ----------------------- ------------------- CUSIP No. 15100A104 Page 7 of 17 Pages - ----------------------- ------------------- - ----------- -------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Spencer Capital Offshore Partners, LLC - ----------- -------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ----------- -------------------------------------------------------------------- 3 SEC USE ONLY - ----------- -------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - ----------- -------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - ----------- -------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - --------------------- --------- ------------------------------------------------ 7 SOLE VOTING POWER 0 --------- ------------------------------------------------ 8 SHARED VOTING POWER 481,702 --------- ------------------------------------------------ 9 SOLE DISPOSITIVE POWER 0 --------- ------------------------------------------------ 10 SHARED DISPOSITIVE POWER 481,702 - ----------- -------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 481,702 - ----------- -------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - ----------- -------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.2% - ----------- -------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - ----------- -------------------------------------------------------------------- SCHEDULE 13D - ----------------------- ------------------- CUSIP No. 15100A104 Page 8 of 17 Pages - ----------------------- ------------------- - ----------- -------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Stephen Roseman, CFA - ----------- -------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ----------- -------------------------------------------------------------------- 3 SEC USE ONLY - ----------- -------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - ----------- -------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - ----------- -------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Canada - --------------------- --------- ------------------------------------------------ 7 SOLE VOTING POWER 0 --------- ------------------------------------------------ 8 SHARED VOTING POWER 294,699 --------- ------------------------------------------------ 9 SOLE DISPOSITIVE POWER 0 --------- ------------------------------------------------ 10 SHARED DISPOSITIVE POWER 294,699 - ----------- -------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 294,699 - ----------- -------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - ----------- -------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 3.8% - ----------- -------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - ----------- -------------------------------------------------------------------- SCHEDULE 13D - ----------------------- ------------------- CUSIP No. 15100A104 Page 9 of 17 Pages - ----------------------- ------------------- - ----------- -------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Thesis Capital Management, LLC - ----------- -------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ----------- -------------------------------------------------------------------- 3 SEC USE ONLY - ----------- -------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - ----------- -------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - ----------- -------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - --------------------- --------- ------------------------------------------------ 7 SOLE VOTING POWER 0 --------- ------------------------------------------------ 8 SHARED VOTING POWER 294,699 --------- ------------------------------------------------ 9 SOLE DISPOSITIVE POWER 0 --------- ------------------------------------------------ 10 SHARED DISPOSITIVE POWER 294,699 - ----------- -------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 294,699 - ----------- -------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - ----------- -------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 3.8% - ----------- -------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IA, OO - ----------- -------------------------------------------------------------------- SCHEDULE 13D - ----------------------- ------------------- CUSIP No. 15100A104 Page 10 of 17 Pages - ----------------------- ------------------- - ----------- -------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Thesis Capital, LP - ----------- -------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ----------- -------------------------------------------------------------------- 3 SEC USE ONLY - ----------- -------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - ----------- -------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - ----------- -------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - --------------------- --------- ------------------------------------------------ 7 SOLE VOTING POWER 0 --------- ------------------------------------------------ 8 SHARED VOTING POWER 54,008 --------- ------------------------------------------------ 9 SOLE DISPOSITIVE POWER 0 --------- ------------------------------------------------ 10 SHARED DISPOSITIVE POWER 54,008 - ----------- -------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 54,008 - ----------- -------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - ----------- -------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.7% - ----------- -------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - ----------- -------------------------------------------------------------------- SCHEDULE 13D - ----------------------- ------------------- CUSIP No. 15100A104 Page 11 of 17 Pages - ----------------------- ------------------- - ----------- -------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Thesis Capital Master Fund Limited - ----------- -------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ----------- -------------------------------------------------------------------- 3 SEC USE ONLY - ----------- -------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - ----------- -------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - ----------- -------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Cayman Islands - --------------------- --------- ------------------------------------------------ 7 SOLE VOTING POWER 0 --------- ------------------------------------------------ 8 SHARED VOTING POWER 240,691 --------- ------------------------------------------------ 9 SOLE DISPOSITIVE POWER 0 --------- ------------------------------------------------ 10 SHARED DISPOSITIVE POWER 240,691 - ----------- -------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 240,691 - ----------- -------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - ----------- -------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 3.1% - ----------- -------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - ----------- -------------------------------------------------------------------- Item 1. Security and Issuer This Amendment No. 5 to Schedule 13D (this "Amendment No. 5") is being filed with respect to the beneficial ownership of common stock, par value $0.001 per share (the "Common Stock"), of Celebrate Express, Inc., a Washington corporation (the "Company"), to amend the Schedule 13D filed on June 22, 2006 (the "Schedule 13D") as amended by Amendment No. 1 thereto filed on June 27, 2006, Amendment No. 2 thereto filed on July 6, 2006, Amendment No. 3 thereto filed on August 2, 2006 and Amendment No. 4 thereto filed on August 9, 2006 ("Amendment No. 4"). Capitalized terms used but not defined in this Amendment No. 5 shall have the meanings ascribed thereto in the Schedule 13D as amended to the date hereof. Item 3. Source and Amount of Funds or Other Consideration Item 3 is hereby amended and restated by deleting the second paragraph of the text thereof and replacing it with the following: TC expended approximately $603,068.54 and TCMF expended approximately $2,680,953.93 in order to purchase the respective 54,008 and 240,691 shares of Common Stock that they beneficially own. The Thesis Funds purchased the Common Stock directly owned by them with their working capital, which may, at any given time, include margin loans made by brokerage firms in the ordinary course of business. Item 4. Purpose of Transaction. Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer Items 4 and 6 of the Schedule 13D are hereby supplemented by adding thereto the following: On August 17, 2006, the Company and the members of the Shareholder Value Committee entered into a Settlement Agreement (the "Settlement Agreement") pursuant to which (i) the members of the Shareholder Value Committee agreed to terminate their solicitation of proxies in respect of the Annual Meeting, (ii) the Board was expanded to eight directors and Dr. Shubin Stein and Mr. Roseman were added to the Board, (iii) the Company agreed to include Dr. Shubin Stein and Mr. Roseman on the Company's slate of nominees for election as directors at the Annual Meeting, (iv) the Company agreed that Dr. Shubin Stein and Mr. Roseman would have direct access to Cowen and Company, LLC as it assists the Board and management of the Company in exploring strategic alternatives, and (v) the members of the Shareholder Value Committee agreed to vote at the Annual Meeting in favor of the Company's slate of director nominees. The foregoing description of the Settlement Agreement is qualified by reference to the Settlement Agreement, which is attached hereto as Exhibit 3. Item 5. Interest in Securities of the Issuer. Items 5(a), 5(b) and 5(c) are hereby amended and restated by deleting the entirety of the text thereof and replacing it with the following: 12 (a) As of the close of business on August 18, 2006: (i) Dr. Shubin Stein was the beneficial owner of the 1,200,697 shares of Common Stock that are held directly by the Spencer Funds, which constitute in the aggregate 15.5% of the outstanding shares of Common Stock; (ii) SCM was the beneficial owner of 1,200,697 shares of Common Stock, which constitute in the aggregate 15.5% of the outstanding shares of Common Stock; (iii) SCF and SCP were the beneficial owners of 718,995 shares of Common Stock, which constitute in the aggregate 9.3% of the outstanding shares of Common Stock; (iv) SCOF and SCOP were the beneficial owners of 481,702 shares of Common Stock, which constitute in the aggregate 6.2% of the outstanding shares of Common Stock; (v) Mr. Roseman may be deemed to be the beneficial owner of 294,699 shares of Common Stock that are held directly by the Thesis Funds, which constitute in the aggregate 3.8% of the outstanding shares of Common Stock although he disclaims such beneficial ownership; (vi) TCM was the beneficial owner of 294,699 shares of Common Stock that are held directly by the Thesis Funds, which constitute in the aggregate 3.8% of the outstanding shares of Common Stock; (vii) TC was the beneficial owner of 54,008 shares of Common Stock that it directly owns, which constitute in the aggregate 0.7% of the outstanding shares of Common Stock; and (viii) TCMF was the beneficial owner of 240,691 shares of Common Stock that it directly owns, which constitute in the aggregate 3.1% of the outstanding shares of Common Stock. The percentages of the outstanding Common Stock set forth in this Amendment No. 5 were calculated on the basis that 7,759,821 shares of Common Stock were outstanding as of March 31, 2006, as represented by the Company in its Quarterly Report on Form 10-Q filed with the SEC on April 13, 2006. (b) Dr. Shubin Stein shares voting and dispositive power over the 1,200,697 shares of Common Stock held directly by the Spencer Funds with SCM, SCF, SCP, SCOF and SCOP. SCM shares voting and dispositive power over 1,200,697 shares of Common Stock with Dr. Shubin Stein, SCF, SCP, SCOF and SCOP. SCF and SCP share voting and dispositive power over 718,995 shares of Common Stock with Dr. Shubin Stein, SCM and each other. SCOF and SCOP share voting and dispositive power over 481,702 shares of Common Stock with Dr. Shubin Stein, SCM and each other. Mr. Roseman shares voting and dispositive power over the 294,699 shares of Common Stock held directly by the Thesis Funds with TCM, TC and TCMF. TCM shares voting and dispositive power over the 294,699 shares of Common Stock with Mr. Roseman, TC and TCMF. TC shares voting and dispositive power over 54,008 shares of Common Stock with Mr. Roseman and TCM. TCMF shares voting and dispositive power over 240,691 shares of Common Stock with Mr. Roseman and TCM. As a result of their determination to work together as disclosed in Item 4 above, the Spencer Capital Members and Thesis Capital Members may be deemed a "group" under the Exchange Act and, accordingly, each may be deemed to beneficially own the shares of the Common Stock beneficially owned by the others. Each of the Spencer Capital Members disclaims beneficial ownership of the Common Stock held by the Thesis Capital Members and any pecuniary interest therein, and each of the Thesis Capital Members disclaims beneficial ownership of the Common Stock held by each of the Spencer Capital Members and any pecuniary interest therein. (c) Transactions in the Common Stock by the Spencer Capital Members and the Thesis Capital Members effected since the filing of Amendment No. 4 to Schedule 13D are described in 13 Schedule I hereto, which Schedule is hereby incorporated by reference. All such transactions were effected on the open market. (d) Not applicable. (e) Not applicable. Item 7. Material to be Filed as Exhibits. Item 7 of the Schedule 13D is hereby supplemented by adding thereto the following: Exhibit 3 Settlement Agreement made and entered into as of August 17, 2006, by and among the Company, on the one hand, and SCM, SCF, SCP, SCOF, SCOP, Kenneth H. Shubin Stein, MD, CFA, TCM, TC, TCMF and Stephen Roseman, CFA, on the other hand. 14 SIGNATURES After reasonable inquiry and to the best of our knowledge and belief, the undersigned certify that the information set forth in this statement is true, complete and correct. Dated: August 21, 2006 SPENCER CAPITAL MANAGEMENT, LLC By: /s/ Kenneth H. Shubin Stein, MD, CFA ----------------------------------------- Name: Kenneth H. Shubin Stein, MD, CFA Title: Authorized Signatory SPENCER CAPITAL OPPORTUNITY FUND, LP By: Spencer Capital Partners, LLC, Its General Partner By: /s/ Kenneth H. Shubin Stein, MD, CFA ----------------------------------------- Name: Kenneth H. Shubin Stein, MD, CFA Title: Managing Member SPENCER CAPITAL PARTNERS, LLC By: /s/ Kenneth H. Shubin Stein, MD, CFA ----------------------------------------- Name: Kenneth H. Shubin Stein, MD, CFA Title: Managing Member [SIGNATURE PAGE TO AMENDMENT NO. 5 TO SCHEDULE 13D WITH RESPECT TO CELEBRATE EXPRESS, INC.] SPENCER CAPITAL OFFSHORE OPPORTUNITY FUND, LTD. By: Spencer Capital Offshore Partners, LLC, Its Investment Adviser By: /s/ Kenneth H. Shubin Stein, MD, CFA ----------------------------------------- Name: Kenneth H. Shubin Stein, MD, CFA Title: Managing Member SPENCER CAPITAL OFFSHORE PARTNERS, LLC By: /s/ Kenneth H. Shubin Stein, MD, CFA ----------------------------------------- Name: Kenneth H. Shubin Stein, MD, CFA Title: Managing Member By: /s/ Kenneth H. Shubin Stein, MD, CFA ----------------------------------------- Kenneth H. Shubin Stein, MD, CFA THESIS CAPITAL MANAGEMENT, LLC By: /s/ Stephen Roseman, CFA ----------------------------------------- Name: Stephen Roseman, CFA Title: Manager [SIGNATURE PAGE TO AMENDMENT NO. 5 TO SCHEDULE 13D WITH RESPECT TO CELEBRATE EXPRESS, INC.] THESIS CAPITAL, LP By: Thesis Capital Advisors, LLC, Its General Partner By: /s/ Stephen Roseman, CFA ----------------------------------------- Name: Stephen Roseman, CFA Title: Manager THESIS CAPITAL MASTER FUND LIMITED By: /s/ Stephen Roseman, CFA ----------------------------------------- Name: Stephen Roseman, CFA Title: Director By: /s/ Stephen Roseman, CFA ----------------------------------------- Stephen Roseman, CFA [SIGNATURE PAGE TO AMENDMENT NO. 5 TO SCHEDULE 13D WITH RESPECT TO CELEBRATE EXPRESS, INC.] SCHEDULE I Transactions by SCM ------------------- No trades have been effected on behalf of the Spencer Funds by SCM since the filing of Amendment No. 4. Transactions by Thesis Funds ---------------------------- Each of the following trades was effected by the Thesis Funds. - -------------- ------------------ --------------------- ------------------------ Type of Date Number of Price per Share in Transaction Shares $US* - -------------- ------------------ --------------------- ------------------------ Purchase 8/8/06 155 $11.58 - -------------- ------------------ --------------------- ------------------------ Purchase 8/8/06 745 $11.58 - -------------- ------------------ --------------------- ------------------------ Purchase 8/9/06 103 $11.95 - -------------- ------------------ --------------------- ------------------------ Purchase 8/9/06 497 $11.95 - -------------- ------------------ --------------------- ------------------------ Purchase 8/10/06 1100 $11.85 - -------------- ------------------ --------------------- ------------------------ Purchase 8/15/06 2500 $11.93 - -------------- ------------------ --------------------- ------------------------ 1 EX-3 3 c3373091c.txt SETTLEMENT AGREEMENT Exhibit 3 SETTLEMENT AGREEMENT This SETTLEMENT AGREEMENT (this "Agreement") is made and entered into as of August 17, 2006, by and among Celebrate Express, Inc. (the "Company"), on the one hand, and Spencer Capital Management, LLC, Spencer Capital Opportunity Fund, L.P., Spencer Capital Partners, LLC, Spencer Capital Offshore Opportunity Fund, Ltd., Spencer Capital Offshore Partners, LLC, Kenneth H. Shubin Stein, MD, CFA, Thesis Capital Management, LLC, Thesis Capital, LP, Thesis Capital Master Fund Limited and Stephen Roseman, CFA (collectively, the "Shareholder Group"), on the other hand. RECITALS WHEREAS, the Shareholder Group beneficially owns in the aggregate 1,495,396 shares of common stock of the Company, constituting approximately 19.2% of such shares outstanding, and has initiated a proxy solicitation (the "Proxy Solicitation") to elect three individuals to the Company's Board of Directors (the "Board") at the 2006 annual meeting of shareholders of the Company; and WHEREAS, the Company has engaged Cowen and Company, LLC ("Cowen") to assist the Board in exploring strategic alternatives for the Company; and WHEREAS, the Board has determined that it is in the best interests of the shareholders of the Company to provide representation on the Board to the Shareholder Group; and WHEREAS, the Company and the Shareholder Group desire, in connection with the termination of the Proxy Solicitation, to make certain representations, warranties, covenants and agreements with one another pursuant to this Agreement; NOW, THEREFORE, in consideration of the premises, the mutual representations, warranties, covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: Article I. BASIC AGREEMENTS Section 1.1. Termination of the Proxy Solicitation. Based on the representations, warranties, covenants and agreements of the Company contained in this Agreement, the Shareholder Group hereby (i) immediately and irrevocably withdraws its nomination of Kenneth H. Shubin Stein, Stephen Roseman and Matthew C. Diamond and immediately and irrevocably withdraws and terminates the Proxy Solicitation, (ii) irrevocably withdraws its demand for a shareholder list and other materials pursuant to Section 23B.16.020 of the Washington Business Corporation Act or otherwise; (iii) agrees not to, directly or indirectly, initiate, propose, make, encourage or induce any person, or in any way participate in any solicitation with respect to any shareholder proposals for the 2006 Annual Meeting whether made pursuant the rules and regulations promulgated under the Securities Exchange Act of 1934 or otherwise, and (iv) agrees not to make any public objection to the election of the Slate at the 2006 Annual Meeting, any public statement inconsistent with the provisions of this Agreement, or otherwise take or cause or induce others to take any action inconsistent with any of the foregoing. Section 1.2. Board Actions. The Company represents and warrants to the Shareholder Group that the Board has taken the following actions, and covenants and agrees as follows: (a) The Board has adopted a resolution increasing the authorized number of directors of the Company to eight directors, effective at or prior to the execution and delivery of this Agreement, and reducing the authorized number of directors of the Company to seven directors, effective upon the conclusion of the 2006 Annual Meeting. The Board agrees not to rescind or amend such resolution prior to the 2006 Annual Meeting. (b) The Board has elected Dr. Kenneth H. Shubin Stein and Stephen Roseman as directors to fill the two vacancies on the Board, which election is effective as of the execution and delivery of this Agreement and at which time the following will be the eight members of the Board: Keith L. Crandell, Estelle DeMuesy, Kevin A. Green, Donald R. Hughes, Jean Reynolds, Stephen Roseman, Dr. Kenneth Shubin Stein and Ronald A. Weinstein. Section 1.3. 2006 Annual Meeting. At the 2006 Annual Meeting (or any other meeting of shareholders held in lieu thereof, including any adjournments, postponements, reschedulings or continuations thereof, the "2006 Annual Meeting"), the Company shall nominate four persons for election to the Board, and such slate shall consist of Estelle DeMuesy, Kevin A. Green, Dr. Kenneth H. Shubin Stein and Stephen Roseman (the "Slate"). Dr. Shubin Stein and Mr. Roseman shall be nominated as Class II and I directors, with terms to end in 2008 and 2009, respectively. The Company shall prepare and distribute proxy materials (the "Company Proxy Materials") (as well as any other solicitation or recommendation made by the Company) that shall recommend, support and solicit the election of the Slate to the Board and such material shall otherwise be prepared in accordance with and to give effect to the terms of this Agreement. If the Slate is elected at the 2006 Annual Meeting, the following will be (absent death, removal or resignation) the seven directors of the Company immediately following the 2006 Annual Meeting: Keith L. Crandell, Estelle DeMuesy, Kevin A. Green, Donald R. Hughes, Jean Reynolds, Stephen Roseman and Dr. Kenneth Shubin Stein. Section 1.4. Strategic Alternatives Process. The Company represents and warrants to the Shareholder Group that it has previously provided to the Shareholder Group a true and correct copy of the engagement letter between Cowen and the Company (including as the same may be amended, the "Engagement Letter"), and that the Engagement Letter is, as of the date of this Agreement, in full force and effect. The Company covenants and agrees that Dr. Shubin Stein and Mr. Roseman, in their capacities as directors of the Company, shall have the right to have direct access to Cowen, as it performs its engagement pursuant to the Engagement Letter. Such access shall be at such times as Dr. Shubin Stein or Mr. Roseman, on the one hand, and Cowen, on the other hand, shall deem reasonable and mutually convenient. Dr. Shubin Stein and Mr. Roseman agree to report to Kevin A. Green, Chief Executive Officer of the Company, on any conversation either of them holds with Cowen with respect to Cowen's engagement pursuant to the Engagement Letter, except for conversations for which Mr. Green or a quorum of the Board is present and except for ministerial or insignificant conversations. Section 1.5. Voting Agreement. Each member of the Shareholder Group agrees to vote all shares of common stock of the Company as to which it has voting rights as of the record date for the 2006 Annual Meeting in favor or the Slate. Article II. MISCELLANEOUS PROVISIONS Section 2.1. Representations and Warranties. Each of the parties hereto represents and warrants to the other party that: (i) such party has all requisite power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby; (ii) the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized by all required action on the part of such party and no other proceedings on the part of such party are necessary to authorize the execution and delivery of this Agreement or to consummate the transactions contemplated hereby; (iii) this Agreement has been duly and validly executed and delivered by such party and constitutes the valid and binding obligation of such party enforceable against such party in accordance with their respective terms; and (iv) this Agreement will not result in a violation of any terms or provisions of any agreement to which such person is a party or by which such party may otherwise be bound, or of any law, rule, license, regulation, judgment, order or decree governing or affecting such party. Section 2.2. General. (a) This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and the respective successors, personal representatives and assigns of the parties hereto. (b) This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and thereof and supersedes all prior and contemplated arrangements and understandings with respect thereto. (c) This Agreement may be signed in counterparts, each of which shall constitute an original and all of which together shall constitute one and the same Agreement. (d) All notices and other communications required or permitted hereunder shall be effective upon receipt and shall be in writing and may be delivered in person, by telecopy, electronic mail, express delivery service or U.S. mail, in which event it may be mailed by first-class, certified or registered, postage prepaid, addressed to the party to be notified at the respective addresses set forth below, or at such other addresses which may hereinafter be designated in writing: If to the Company: Celebrate Express, Inc. 11220 120th Ave. NE Kirkland, WA 98033 Attention: Darin White Fax No.: (425) 828-6252 with a copy to: Heller Ehrman LLP 701 Fifth Avenue Suite 6100 Seattle, WA 98104 Attention: Jeffry Shelby Fax No.: (206) 447-0849 If to the Shareholder Group: Spencer Capital Management, LLC 1995 Broadway, Suite 1801 New York, NY 10023 Attention: Kenneth H. Shubin Stein, MD, CFA Fax No.: (646) 349-9642 with a copy to: Willkie Farr & Gallagher LLP 787 Seventh Avenue New York, New York 10019 Attention: Michael A. Schwartz Fax No.: (212) 728-9267 (e) This Agreement and the legal relations between the parties hereto shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and performed therein, without giving effect to the principles of conflicts of law thereof. (f) Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid, but if any provision of this Agreement is held to be invalid or unenforceable in any respect, such invalidity or unenforceability shall not render invalid or unenforceable any other provision of this Agreement. (g) It is hereby agreed and acknowledged that it will be impossible to measure in money the damages that would be suffered if the parties fail to comply with any of the obligations herein imposed on them and that in the event of any such failure, an aggrieved person will be irreparably damaged and will not have an adequate remedy at law. Any such person, therefore, shall be entitled to injunctive relief, including specific performance, to enforce such obligations, without the posting of any bond, and, if any action should be brought in equity to enforce any of the provisions of this Agreement, none of the parties hereto shall raise the defense that there is an adequate remedy at law. (h) Each party hereto shall do and perform or cause to be done and performed all such further acts and things and shall execute and deliver all such other agreements, certificates, instruments and documents as any other party hereto reasonably may request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby. [Remainder of page intentionally left blank.] IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the day and year first written above. CELEBRATE EXPRESS, INC. By: /s/ Kevin A. Green ----------------------------------------- Name: Kevin A. Green Title: President and Chief Executive Officer SPENCER CAPITAL MANAGEMENT, LLC By: /s/ Kenneth H. Shubin Stein, MD, CFA ----------------------------------------- Name: Kenneth H. Shubin Stein, MD, CFA Title: Authorized Signatory SPENCER CAPITAL OPPORTUNITY FUND, LP By: Spencer Capital Partners, LLC, Its General Partner By: /s/ Kenneth H. Shubin Stein, MD, CFA ----------------------------------------- Name: Kenneth H. Shubin Stein, MD, CFA Title: Managing Member [SIGNATURE PAGE TO SETTLEMENT AGREEMENT] SPENCER CAPITAL PARTNERS, LLC By: /s/ Kenneth H. Shubin Stein, MD, CFA ----------------------------------------- Name: Kenneth H. Shubin Stein, MD, CFA Title: Managing Member SPENCER CAPITAL OFFSHORE OPPORTUNITY FUND, LTD. By: Spencer Capital Offshore Partners, LLC, Its Investment Adviser By: /s/ Kenneth H. Shubin Stein, MD, CFA ----------------------------------------- Name: Kenneth H. Shubin Stein, MD, CFA Title: Managing Member SPENCER CAPITAL OFFSHORE PARTNERS, LLC By: /s/ Kenneth H. Shubin Stein, MD, CFA ----------------------------------------- Name: Kenneth H. Shubin Stein, MD, CFA Title: Managing Member By: /s/ Kenneth H. Shubin Stein, MD, CFA ----------------------------------------- Kenneth H. Shubin Stein, MD, CFA [SIGNATURE PAGE TO SETTLEMENT AGREEMENT] THESIS CAPITAL MANAGEMENT, LLC By: /s/ Stephen Roseman, CFA ----------------------------------------- Name: Stephen Roseman, CFA Title: Manager THESIS CAPITAL, LP By: Thesis Capital Advisors, LLC, Its General Partner By: /s/ Stephen Roseman, CFA ----------------------------------------- Name: Stephen Roseman, CFA Title: Manager THESIS CAPITAL MASTER FUND LIMITED By: /s/ Stephen Roseman, CFA ----------------------------------------- Name: Stephen Roseman, CFA Title: Director By: /s/ Stephen Roseman, CFA ----------------------------------------- Stephen Roseman, CFA [SIGNATURE PAGE TO SETTLEMENT AGREEMENT] -----END PRIVACY-ENHANCED MESSAGE-----