-----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, Al1cMjYM8sRyTrbF4Q5ImIkU8viRgTITkbi3w/TuDESTOjYR0OGCgu0aMtUj6kO5 xt19j0NdCQyQNAnaD6G6nQ== 0000909518-07-000634.txt : 20070625 0000909518-07-000634.hdr.sgml : 20070625 20070625170529 ACCESSION NUMBER: 0000909518-07-000634 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20070625 DATE AS OF CHANGE: 20070625 GROUP MEMBERS: HBK FUND L.P. GROUP MEMBERS: HBK INVESTMENTS L.P. GROUP MEMBERS: HBK MANAGEMENT LLC GROUP MEMBERS: HBK MASTER FUND L.P. GROUP MEMBERS: HBK PARTNERS II L.P. GROUP MEMBERS: HBK SERVICES L.P. GROUP MEMBERS: JOHN P. GRAYKEN GROUP MEMBERS: LONE STAR FUND V (U.S.), L.P. GROUP MEMBERS: LONE STAR MANAGEMENT CO. V, LTD. GROUP MEMBERS: LONE STAR PARTNERS V, L.P. GROUP MEMBERS: LSF5 GENPAR VII, LLC GROUP MEMBERS: LSF5 INDY HOLDINGS, LLC GROUP MEMBERS: LSF5 INDY INVESTMENTS, LLC GROUP MEMBERS: LSF5 REOC VII L.P. GROUP MEMBERS: ROBERT J. STETSON SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: STEAK & SHAKE CO CENTRAL INDEX KEY: 0000093859 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 370684070 STATE OF INCORPORATION: IN FISCAL YEAR END: 0927 FILING VALUES: FORM TYPE: SC 13D SEC ACT: 1934 Act SEC FILE NUMBER: 005-30771 FILM NUMBER: 07939327 BUSINESS ADDRESS: STREET 1: 36 S PENNSYLVANIA ST STREET 2: CENTURY BLDG - 500 CITY: INDIANAPOLIS STATE: IN ZIP: 46236 BUSINESS PHONE: 3176334100 MAIL ADDRESS: STREET 1: 36 S PENNSYLVANIA ST STREET 2: CENTURY BLDG - 500 CITY: INDIANAPOLIS STATE: IN ZIP: 46204 FORMER COMPANY: FORMER CONFORMED NAME: CONSOLIDATED PRODUCTS INC /IN/ DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: STEAK N SHAKE INC DATE OF NAME CHANGE: 19840529 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: HBK INVESTMENTS L P CENTRAL INDEX KEY: 0001011443 IRS NUMBER: 752622581 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D BUSINESS ADDRESS: STREET 1: 300 CRESCENT CT STREET 2: STE 700 CITY: DALLAS STATE: TX ZIP: 75201 BUSINESS PHONE: 2147586100 MAIL ADDRESS: STREET 1: 300 CRESCENT CT STREET 2: STE 700 CITY: DALLAS STATE: TX ZIP: 75201 SC 13D 1 mm06-2207_13d.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 13D UNDER THE SECURITIES EXCHANGE ACT OF 1934 The Steak n Shake Company - -------------------------------------------------------------------------------- (NAME OF ISSUER) Common Stock, stated value $0.50 per share - -------------------------------------------------------------------------------- (TITLE OF CLASS OF SECURITIES) 857873-10-3 - -------------------------------------------------------------------------------- (CUSIP NUMBER) Jon L. Mosle Marc L. Lipshy HBK Investments L.P. Hudson Advisors LLC 300 Crescent Court, Suite 700 717 North Harwood Street, Suite 2100 Dallas, Texas 75201 Dallas, Texas 75201 (214) 758-6107 (214) 754-8430 - -------------------------------------------------------------------------------- with a copy to: Jeffrey B. Hitt, Esq. Weil, Gotshal & Manges LLP 200 Crescent Court, Suite 300 Dallas, Texas 75201 (214) 746-7700 - -------------------------------------------------------------------------------- ------------------------------------------------------------------------ (NAME, ADDRESS AND TELEPHONE NUMBER OF PERSON AUTHORIZED TO RECEIVE NOTICES AND COMMUNICATIONS) June 13, 2007 ------------------------------------------------------------------------ (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 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 ss.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). - ------------------------------------------------------------------------------- CUSIP No. 857873-10-3 13D Page 2 of 33 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON: HBK MASTER FUND L.P. I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY): - ------------------------------------------------------------------------------- 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 PROCEEDINGS IS [_] REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): - ------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF CAYMAN ISLANDS ORGANIZATION: - ------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER: SHARES ------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER: 1,482,955 OWNED BY ------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER: REPORTING ------------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,482,955 - ------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED 1,482,955 BY REPORTING PERSON: - ------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) [_] EXCLUDES CERTAIN SHARES: - ------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 5.2% - ------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON: PN - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- CUSIP No. 857873-10-3 13D Page 3 of 33 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON: HBK FUND L.P. I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY): - ------------------------------------------------------------------------------- 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 PROCEEDINGS IS [_] REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): - ------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF DELAWARE ORGANIZATION: - ------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER: SHARES ------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER: 766,845 OWNED BY ------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER: REPORTING ------------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER: 766,845 - ------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED 766,845 BY REPORTING PERSON: - ------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) [_] EXCLUDES CERTAIN SHARES: - ------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 2.7% - ------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON: PN - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- CUSIP No. 857873-10-3 13D Page 4 of 33 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON: HBK INVESTMENTS L.P. I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY): - ------------------------------------------------------------------------------- 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 PROCEEDINGS IS [_] REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): - ------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF DELAWARE ORGANIZATION: - ------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER: SHARES ------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER: 2,249,800 OWNED BY ------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER: REPORTING ------------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER: 2,249,800 - ------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED 2,249,800 BY REPORTING PERSON: - ------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) [_] EXCLUDES CERTAIN SHARES: - ------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 7.9% - ------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON: PN - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- CUSIP No. 857873-10-3 13D Page 5 of 33 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON: HBK SERVICES LLC I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY): - ------------------------------------------------------------------------------- 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 PROCEEDINGS IS [_] REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): - ------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF DELAWARE ORGANIZATION: - ------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER: SHARES ------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER: 2,249,800 OWNED BY ------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER: REPORTING ------------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER: 2,249,800 - ------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED 2,249,800 BY REPORTING PERSON: - ------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) [_] EXCLUDES CERTAIN SHARES: - ------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 7.9% - ------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON: OO - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- CUSIP No. 857873-10-3 13D Page 6 of 33 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON: HBK PARTNERS II L.P. I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY): - ------------------------------------------------------------------------------- 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 PROCEEDINGS IS [_] REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): - ------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF DELAWARE ORGANIZATION: - ------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER: SHARES ------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER: 2,249,800 OWNED BY ------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER: REPORTING ------------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER: 2,249,800 - ------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED 2,249,800 BY REPORTING PERSON: - ------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) [_] EXCLUDES CERTAIN SHARES: - ------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 7.9% - ------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON: PN - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- CUSIP No. 857873-10-3 13D Page 7 of 33 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON: HBK MANAGEMENT LLC I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY): - ------------------------------------------------------------------------------- 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 PROCEEDINGS IS [_] REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): - ------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF DELAWARE ORGANIZATION: - ------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER: SHARES ------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER: 2,249,800 OWNED BY ------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER: REPORTING ------------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER: 2,249,800 - ------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED 2,249,800 BY REPORTING PERSON: - ------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) [_] EXCLUDES CERTAIN SHARES: - ------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 7.9% - ------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON: OO - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- CUSIP No. 857873-10-3 13D Page 8 of 33 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON: LSF5 INDY INVESTMENTS, LLC I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY): - ------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [_] (b) [X] - ------------------------------------------------------------------------------- 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 DELAWARE ORGANIZATION: - ------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER: SHARES ------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER: 1,324,150(1) OWNED BY ------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER: REPORTING ------------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,324,150(1) - ------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED 1,324,150(1) BY REPORTING PERSON: - ------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) [_] EXCLUDES CERTAIN SHARES: - ------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 4.7% - ------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON: OO - ------------------------------------------------------------------------------- (1) Includes 925,650 shares which LSF5 Indy Investments, LLC has contracted to acquire from HBK Master Fund L.P. and/or HBK Fund L.P. - ------------------------------------------------------------------------------- CUSIP No. 857873-10-3 13D Page 9 of 33 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON: LSF5 INDY HOLDINGS, LLC I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY): - ------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [_] (b) [X] - ------------------------------------------------------------------------------- 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 DELAWARE ORGANIZATION: - ------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER: SHARES ------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER: 1,324,150(1) OWNED BY ------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER: REPORTING ------------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,324,150(1) - ------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED 1,324,150(1) BY REPORTING PERSON: - ------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) [_] EXCLUDES CERTAIN SHARES: - ------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 4.7% - ------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON: OO - ------------------------------------------------------------------------------- (1) Includes 925,650 shares which LSF5 Indy Investments, LLC has contracted to acquire from HBK Master Fund L.P. and/or HBK Fund L.P. - ------------------------------------------------------------------------------- CUSIP No. 857873-10-3 13D Page 10 of 33 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON: LSF5 REOC VII, L.P. I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY): - ------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [_] (b) [X] - ------------------------------------------------------------------------------- 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 DELAWARE ORGANIZATION: - ------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER: SHARES ------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER: 1,324,150(1) OWNED BY ------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER: REPORTING ------------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,324,150(1) - ------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED 1,324,150(1) BY REPORTING PERSON: - ------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) [_] EXCLUDES CERTAIN SHARES: - ------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 4.7% - ------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON: PN - ------------------------------------------------------------------------------- (1) Includes 925,650 shares which LSF5 Indy Investments, LLC has contracted to acquire from HBK Master Fund L.P. and/or HBK Fund L.P. - ------------------------------------------------------------------------------- CUSIP No. 857873-10-3 13D Page 11 of 33 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON: LSF5 GENPAR VII, LLC I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY): - ------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [_] (b) [X] - ------------------------------------------------------------------------------- 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 DELAWARE ORGANIZATION: - ------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER: SHARES ------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER: 1,324,150(1) OWNED BY ------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER: REPORTING ------------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,324,150(1) - ------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED 1,324,150(1) BY REPORTING PERSON: - ------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) [_] EXCLUDES CERTAIN SHARES: - ------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 4.7% - ------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON: OO - ------------------------------------------------------------------------------- (1) Includes 925,650 shares which LSF5 Indy Investments, LLC has contracted to acquire from HBK Master Fund L.P. and/or HBK Fund L.P. - ------------------------------------------------------------------------------- CUSIP No. 857873-10-3 13D Page 12 of 33 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON: LONE STAR FUND V (U.S.), L.P. I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY): - ------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [_] (b) [X] - ------------------------------------------------------------------------------- 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 DELAWARE ORGANIZATION: - ------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER: SHARES ------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER: 1,324,150(1) OWNED BY ------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER: REPORTING ------------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,324,150(1) - ------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED 1,324,150(1) BY REPORTING PERSON: - ------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) [_] EXCLUDES CERTAIN SHARES: - ------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 4.7% - ------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON: PN - ------------------------------------------------------------------------------- (1) Includes 925,650 shares which LSF5 Indy Investments, LLC has contracted to acquire from HBK Master Fund L.P. and/or HBK Fund L.P. - ------------------------------------------------------------------------------- CUSIP No. 857873-10-3 13D Page 13 of 33 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON: LONE STAR PARTNERS V, L.P. I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY): - ------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [_] (b) [X] - ------------------------------------------------------------------------------- 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 BERMUDA ORGANIZATION: - ------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER: SHARES ------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER: 1,324,150(1) OWNED BY ------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER: REPORTING ------------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,324,150(1) - ------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED 1,324,150(1) BY REPORTING PERSON: - ------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) [_] EXCLUDES CERTAIN SHARES: - ------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 4.7% - ------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON: PN - ------------------------------------------------------------------------------- (1) Includes 925,650 shares which LSF5 Indy Investments, LLC has contracted to acquire from HBK Master Fund L.P. and/or HBK Fund L.P. - ------------------------------------------------------------------------------- CUSIP No. 857873-10-3 13D Page 14 of 33 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON: LONE STAR MANAGEMENT CO. V, LTD. I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY): - ------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [_] (b) [X] - ------------------------------------------------------------------------------- 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 BERMUDA ORGANIZATION: - ------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER: SHARES ------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER: 1,324,150(1) OWNED BY ------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER: REPORTING ------------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,324,150(1) - ------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED 1,324,150(1) BY REPORTING PERSON: - ------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) [_] EXCLUDES CERTAIN SHARES: - ------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 4.7% - ------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON: OO - ------------------------------------------------------------------------------- (1) Includes 925,650 shares which LSF5 Indy Investments, LLC has contracted to acquire from HBK Master Fund L.P. and/or HBK Fund L.P. - ------------------------------------------------------------------------------- CUSIP No. 857873-10-3 13D Page 15 of 33 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON: JOHN P. GRAYKEN I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY): - ------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [_] (b) [X] - ------------------------------------------------------------------------------- 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 IRELAND ORGANIZATION: - ------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER: SHARES ------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER: 1,324,150(1) OWNED BY ------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER: REPORTING ------------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,324,150(1) - ------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED 1,324,150(1) BY REPORTING PERSON: - ------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) [_] EXCLUDES CERTAIN SHARES: - ------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 4.7% - ------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON: OO - ------------------------------------------------------------------------------- (1) Includes 925,650 shares which LSF5 Indy Investments, LLC has contracted to acquire from HBK Master Fund L.P. and/or HBK Fund L.P. - ------------------------------------------------------------------------------- CUSIP No. 857873-10-3 13D Page 16 of 33 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON: ROBERT J. STETSON I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY): - ------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [_] (b) [X] - ------------------------------------------------------------------------------- 3 SEC USE ONLY - ------------------------------------------------------------------------------- 4 SOURCE OF FUNDS: PF - ------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS [_] REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): - ------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF UNITED STATES ORGANIZATION: - ------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER: 55,426(1) SHARES ------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER: OWNED BY ------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER: 55,426(1) REPORTING ------------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER: - ------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED 55,426(1) BY REPORTING PERSON: - ------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) [_] EXCLUDES CERTAIN SHARES: - ------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 0.2% - ------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON: IN - ------------------------------------------------------------------------------- (1) Includes 15,000 shares held in the account of a family member over which he has sole voting and dispositive power. SCHEDULE 13D ------------ EXPLANATORY NOTES: This statement on Schedule 13D (this "Statement") is being filed by the HBK Reporting Persons (as defined herein), the Lone Star Reporting Persons (as defined herein) and Robert J. Stetson. As a result of the matters described herein, such persons may be deemed to constitute a "group" within the meaning of Section 13(d)(3) of the Exchange Act of 1934, as amended (the "Exchange Act"). As a result, such persons, who are collectively referred to herein as the "Reporting Persons," may be deemed to beneficially own any shares of common stock, stated value $0.50 per share, of The Steak n Shake Company ("SNS Common Stock") that may be beneficially owned by the other Reporting Persons. Except as set forth herein, each of the Reporting Persons hereby disclaims beneficial ownership of any SNS Common Stock that may be beneficially owned by the other Reporting Persons. ITEM 1. SECURITY AND ISSUER The class of equity securities to which this Statement relates is the SNS Common Stock. The Steak n Shake Company (the "Issuer") is an Indiana corporation with its principal executive offices located at 36 S. Pennsylvania Street, Suite 500, Indianapolis, Indiana 46204. ITEM 2. IDENTITY AND BACKGROUND. This Statement is being filed jointly on behalf of the following persons (collectively, the "Reporting Persons"): HBK Master Fund L.P., a Cayman Islands limited partnership ("HBK Master"); HBK Fund L.P., a Delaware limited partnership ("HBK Fund"); HBK Investments L.P., a Delaware limited partnership ("HBK Investments"); HBK Services LLC, a Delaware limited liability company ("HBK Services"); HBK Partners II L.P., a Delaware limited partnership ("HBK Partners"); HBK Management LLC, a Delaware limited liability company ("HBK Management" and, together with HBK Partners, HBK Services, HBK Investments and HBK Master, the "HBK Reporting Persons"); LSF5 Indy Investments, LLC, a Delaware limited liability company ("Indy Investments"); LSF5 Indy Holdings, LLC, a Delaware limited liability company ("Indy Holdings"); LSF5 REOC VII, L.P., a Delaware limited partnership ("REOC VII"); Page 17 of 33 LSF5 GenPar VII, LLC, a Delaware limited liability company ("GenPar VII"); Lone Star Fund V (U.S.), L.P., a Delaware limited partnership ("Fund V"); Lone Star Partners V, L.P., a Bermuda limited partnership ("Lone Star Partners"); Lone Star Management Co. V, Ltd., a Bermuda exempted company ("Lone Star Management"); John P. Grayken ("Mr. Grayken") and, together with Lone Star Management, Lone Star Partners, Fund V, GenPar VII, REOC VII, Indy Holdings, and Indy Investments, the "Lone Star Reporting Persons"); and Robert J. Stetson, a United States citizen ("Mr. Stetson"). A Joint Filing Agreement among the Reporting Persons is attached hereto as Exhibit 7.01. Certain Information Concerning the HBK Reporting Persons HBK Master is an investment fund designed to invest directly or indirectly in various companies. HBK Fund is an investment fund designed to invest directly or indirectly in various companies. HBK Master and HBK Fund have delegated discretion to vote and dispose of the SNS Common Stock to HBK Investments. HBK Investments is an investment management firm that provides investment management services to private investment funds. HBK Investments has delegated discretion to vote and dispose of the SNS Common Stock to HBK Services. HBK Services is an investment management firm. HBK Partners is the general partner of HBK Investments. HBK Management is the general partner of HBK Partners and the managing member of HBK Services. Pursuant to Instruction C to Form 13D promulgated under the Exchange Act, information is also included herein with respect to the following persons: HBK Capital L.P., a Delaware limited partnership ("HBK Capital"); HBK Offshore Fund Ltd., a Cayman Islands corporation ("HBK Offshore"); and Richard L. Booth, Laurence H.Lebowitz, William E. Rose, David C. Haley and Jamiel A. Akhtar (collectively, the "HBK Managers" and together with HBK Offshore and HBK Fund, the "Additional HBK Persons"; the Additional HBK Persons, together with the HBK Reporting Persons, are referred to herein as the "HBK Persons"). HBK Fund and HBK Offshore are general partners of HBK Master. HBK Capital is the general partner of HBK Fund. The HBK Managers are members of HBK Management and may control HBK Management. The principal occupation of each of the HBK Managers is serving as a Managing Director of HBK Investments. Each of the HBK Managers is a United States citizen. The principal office or business address of each of the HBK Persons is 300 Crescent Court, Suite 700, Dallas Texas, 75201. During the last five years, none of the HBK Reporting Persons, nor to the best knowledge of the HBK Reporting Persons, any of the Additional HBK Persons, has been (i) convicted in a criminal proceeding (excluding traffic violations or Page 18 of 33 similar misdemeanors) or (ii) 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. Certain Information Concerning the Lone Star Reporting Persons Indy Investments is an investment vehicle formed to engage in the acquisition of SNS Common Stock. Indy Holdings is the sole member of Indy Investments. REOC VII is the managing member of Indy Holdings. Gen Par VII is the general partner of REOC VII. Fund V is an investment fund created to invest directly or indirectly in various companies and is the sole member of Gen Par VII. Lone Star Partners is the general partner of Fund V. Lone Star Management is the general partner of Lone Star Partners. Mr. Grayken is the sole shareholder of Lone Star Management. Additional information concerning Mr. Grayken is set forth on Appendix A attached hereto. Pursuant to Instruction C to Form 13D promulgated under the Exchange Act, information is also included herein with respect to the other persons listed on Appendix A attached hereto (the "Additional Lone Star Persons" and collectively with the Lone Star Reporting Persons, the "Lone Star Persons"). The principal office or business address of each of the Lone Star Reporting Persons is 717 North Harwood Street, Suite 2200, Dallas, Texas 75201, except that the principal office of Lone Star Partners and Lone Star Management is Washington Mall, Suite 104, 1st Floor, 7 Reid Street, Hamilton HM 11, Bermuda. During the last five years, none of the Lone Star Reporting Persons, nor to the best knowledge of the Lone Star Reporting Persons, any of the Additional Lone Star Persons, has been (i) convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or (ii) 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. Certain Information Concerning Robert J. Stetson The principal business address of Mr. Stetson is 12240 Inwood Road, Suite 405, Dallas, Texas, 75244. Mr. Stetson's present principal occupation is management of personal investments. During the last five years, Mr. Stetson has not been (i) convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or (ii) 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. Page 19 of 33 ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION. The aggregate purchase price for the shares of SNS Common Stock was approximately $41.2 million. The source of funds for the purchase transactions consisted of (i) in the case of the HBK Reporting Persons, the working capital of HBK Master or HBK Fund, which may, at any given time, include margin loans made by brokerage firms in the ordinary course of business, (ii) in the case of the Lone Star Reporting Persons, capital contributions made to Indy Investments (through Indy Holdings) by the members of Indy Holdings, and (iii) in the case of Mr. Stetson, personal funds. As described below in Item 6, HBK Master and/or HBK Fund have collectively contracted to sell an aggregate of 925,650 shares of SNS Common Stock to Indy Holdings. ITEM 4. PURPOSE OF TRANSACTION. The Reporting Persons acquired the shares of SNS Common Stock reported hereunder for investment purposes, and with a view to engaging in discussions with management and the Board of Directors of the Issuer concerning the business and the future plans of the Issuer generally, and with regard to strategies and potential transactions to maximize shareholder value, including potentially exploring an acquisition or other transaction involving the Reporting Persons. The Reporting Persons do not intend to engage in any acquisition, offer or other transaction that is not supported by the Board of Directors of the Issuer, or otherwise seek representation on the Board of Directors of the Issuer. Any future decision of the Reporting Persons with regard to the Issuer or its securities will take into account various factors, including the results of any discussions with management and the Board of Directors of the Issuer, the prospects of the Issuer, general market and economic conditions, the price levels of common stock of the Issuer, and other matters deemed relevant to the Reporting Persons. The Reporting Persons may, and reserve the right to, change their intentions, acquire additional shares of SNS Common Stock, or dispose of shares of SNS Common Stock, from time to time in the open market, in privately negotiated transactions or otherwise. Except as referenced above, none of the Reporting Persons nor, to the best knowledge of the HBK Reporting Persons or the Lone Star Reporting Persons, as applicable, any of the Additional HBK Persons or Additional Lone Star Persons, has any plans or proposals that relate to or would result in any of the transactions or changes contemplated in Items 4(a) though 4(j) of Schedule 13D. ITEM 5. INTEREST IN SECURITIES OF THE ISSUER. (a) and (b) The respective percentages set forth below are based on 28,450,690 shares of SNS Common Stock outstanding as of May 9, 2007, as reported by the Issuer in its Form 10-Q for the sixteen weeks ended April 11, 2007, filed with the Securities and Exchange Commission on May 18, 2007. By virtue of the relationships among the Reporting Persons described herein, the Reporting Persons may be deemed to constitute a "group" within the meaning of Rule 13d-5(b) under the Exchange Act. As a member of a group, each Reporting Person may be deemed to beneficially own the SNS Common Stock Page 20 of 33 beneficially owned by the members of the group as a whole. As of June 25, 2007, the Reporting Persons beneficially owned in the aggregate 2,703,726 shares of SNS Common Stock, which represents approximately 9.5% of the outstanding SNS Common Stock. Except as set forth herein, each of the Reporting Persons expressly disclaims beneficial ownership of such shares held by any other members of such group. HBK Master has direct beneficial ownership of 1,482,955 shares of SNS Common Stock, which represents approximately 5.2% of the outstanding SNS Common Stock. HBK Fund has direct beneficial ownership of 766,845 shares of SNS Common Stock, which represents approximately 2.7% of the outstanding SNS Common Stock. HBK Master and HBK Fund have delegated discretion to vote and dispose of the SNS Common Stock to HBK Investments. HBK Investments, as a result of such delegations, has indirect beneficial ownership of 2,249,800 shares of SNS Common Stock, which represents approximately 7.9% of the outstanding SNS Common Stock. HBK Investments has delegated discretion to vote and dispose of the SNS Common Stock to HBK Services. HBK Services, as a result of such delegation, has indirect beneficial ownership of 2,249,800 shares of SNS Common Stock, which represents approximately 7.9% of the outstanding SNS Common Stock. HBK Partners, as the general partner of HBK Investments, has indirect beneficial ownership of 2,249,800 shares of SNS Common Stock, which represents approximately 7.9% of the outstanding SNS Common Stock. HBK Management, as the general partner of HBK Partners and the managing member of HBK Services, has indirect beneficial ownership of 2,249,800 shares of SNS Common Stock, which represents approximately 7.9% of the outstanding SNS Common Stock. Indy Investments has direct beneficial ownership of 1,324,150 shares of SNS Common Stock, which represents approximately 4.7% of the outstanding SNS Common Stock. Such number includes 925,650 shares which Indy Investments has contracted to acquire from HBK Master and/or HBK Fund pursuant to the Investment Letter Agreement described in Item 6. Indy Holdings, as the sole member of Indy Investments, has indirect beneficial ownership of 1,324,150 shares of SNS Common Stock, which represents approximately 4.7% of the outstanding SNS Common Stock. Such number includes 925,650 shares which Indy Investments has contracted to acquire from HBK Master and/or HBK Fund pursuant to the Investment Letter Agreement described in Item 6. REOC VII, as the managing member of Indy Holdings, has indirect beneficial ownership of 1,324,150 shares of SNS Common Stock, which represents approximately 4.7% of the outstanding SNS Common Stock. Such number includes 925,650 shares which Indy Investments has contracted to acquire from HBK Master and/or HBK Fund pursuant to the Investment Letter Agreement described in Item 6. Page 21 of 33 GenPar VII, as the general partner of REOC VII, has indirect beneficial ownership of 1,324,150 shares of SNS Common Stock, which represents approximately 4.7% of the outstanding SNS Common Stock. Such number includes 925,650 shares which Indy Investments has contracted to acquire from HBK Master and/or HBK Fund pursuant to the Investment Letter Agreement described in Item 6. Fund V, as the general partner of GenPar VII, has indirect beneficial ownership of 1,324,150 shares of SNS Common Stock, which represents approximately 4.7% of the outstanding SNS Common Stock. Such number includes 925,650 shares which Indy Investments has contracted to acquire from HBK Master and/or HBK Fund pursuant to the Investment Letter Agreement described in Item 6. Lone Star Partners, as the general partner of Fund V, has indirect beneficial ownership of 1,324,150 shares of SNS Common Stock, which represents approximately 4.7% of the outstanding SNS Common Stock. Such number includes 925,650 shares which Indy Investments has contracted to acquire from HBK Master and/or HBK Fund pursuant to the Investment Letter Agreement described in Item 6. Lone Star Management, as the general partner of Lone Star Partners, has indirect beneficial ownership of 1,324,150 shares of SNS Common Stock, which represents approximately 4.7% of the outstanding SNS Common Stock. Such number includes 925,650 shares which Indy Investments has contracted to acquire from HBK Master and/or HBK Fund pursuant to the Investment Letter Agreement described in Item 6. Mr. Grayken, as the sole shareholder of Lone Star Management, has indirect beneficial ownership of 1,324,150 shares of SNS Common Stock, which represents approximately 4.7% of the outstanding SNS Common Stock. Such number includes 925,650 shares which Indy Investments has contracted to acquire from HBK Master and/or HBK Fund pursuant to the Investment Letter Agreement described in Item 6. Mr. Stetson has direct beneficial ownership of 55,426 shares of SNS Common Stock, which represents approximately 0.2% of the outstanding SNS Common Stock. Of such 55,426 shares, 15,000 shares of SNS Common Stock are held in an account for a family member over which he has sole voting and dispositive power. The Cover Pages of this Schedule 13D are incorporated herein by reference. (c) Except as described in Item 6 or as set forth on Appendix B attached hereto, none of the Reporting Persons nor, to the best knowledge of the HBK Reporting Persons or the Lone Star Reporting Persons, as applicable, any of the Additional HBK Persons or Additional Lone Star Persons, have effected any transactions in SNS Common Stock in the past 60 days. All of such transactions described on Appendix B were conducted through open market purchases. (d) The limited partners or shareholders of the funds that own HBK Master, and the limited partners of HBK Fund, for which HBK Investments and HBK Services act as investment manager, have the right to participate indirectly in the receipt of dividends from, or proceeds from the sale of, the SNS Common Stock in accordance with their respective ownership interests in the FUNDS. The Page 22 of 33 limited partners or shareholders of the funds that are direct or indirect investors in Indy Holdings have the right to participate directly or indirectly in the receipt of dividends from, or proceeds for the sale of, the SNS Common Stock in accordance with their respective ownership interests in such funds. (e) Not applicable. ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER. On June 25, 2007, HBK Master, HBK Fund, Indy Investments and Mr. Stetson entered into a letter agreement (the "Investment Letter Agreement"), setting forth the agreement of such persons in connection with the acquisition of SNS Common Stock by such persons as to, among other things (i) the purchase by Indy Investment from HBK Master and/or HBK Fund of 925,650 shares of SNS Common Stock previously acquired by HBK Master and/or HBK Fund, (ii) certain matters related to additional purchases and sales of SNS Common Stock and assets of the Issuer by such persons and their affiliates, and (iii) the terms on which the shares of SNS Common Stock may be acquired or sold by such persons upon termination of the Investment Letter Agreement. This description of the Investment Letter Agreement does not purport to be complete and is qualified in its entirety by reference to the Investment Letter Agreement, which is attached hereto as Exhibit 7.02 and incorporated herein by reference. ITEM 7. MATERIAL TO BE FILED AS EXHIBITS. Exhibit 7.01. Joint Filing Agreement by and among the Reporting Persons, dated as of June 25, 2007. Exhibit 7.02. Investment Letter Agreement, dated as of June 25, 2007, by and among HBK Master Fund L.P., HBK Fund L.P., LSF5 Indy Investments, LLC, and Robert J. Stetson. Page 23 of 33 Signatures ---------- After reasonable inquiry and to the best knowledge and belief of each of the undersigned, such person certifies that the information set forth in this Schedule 13D with respect to such person is true, complete and correct. Dated: June 25, 2007 HBK MASTER FUND L.P. BY: HBK SERVICES LLC INVESTMENT ADVISOR BY: /S/ JON L. MOSLE ------------------------------ NAME: JON L. MOSLE TITLE: AUTHORIZED SIGNATORY (1) HBK FUND L.P. BY: HBK SERVICES LLC INVESTMENT ADVISOR BY: /S/ JON L. MOSLE ------------------------------ NAME: JON L. MOSLE TITLE: AUTHORIZED SIGNATORY (1) HBK INVESTMENTS L.P. BY: /S/ JON L. MOSLE ------------------------------ NAME: JON L. MOSLE TITLE: AUTHORIZED SIGNATORY (1) Page 24 of 33 HBK SERVICES LLC BY: /S/ JON L. MOSLE ------------------------------ NAME: JON L. MOSLE TITLE: AUTHORIZED SIGNATORY (1) HBK PARTNERS II L.P. BY: HBK MANAGEMENT LLC GENERAL PARTNER BY: /S/ JON L. MOSLE ------------------------------ NAME: JON L. MOSLE TITLE: AUTHORIZED SIGNATORY (1) HBK MANAGEMENT LLC BY: /S/ JON L. MOSLE ------------------------------ NAME: JON L. MOSLE TITLE: AUTHORIZED SIGNATORY (1) (1) AN AUTHORIZATION CERTIFICATE AUTHORIZING JON L. MOSLE TO ACT ON BEHALF OF EACH REPORTING PERSON WAS PREVIOUSLY FILED. Page 25 of 33 LSF5 INDY INVESTMENTS, LLC BY: /S/ MARC L. LIPSHY ------------------------------ NAME: MARC L. LIPSHY TITLE: VICE PRESIDENT LSF5 INDY HOLDINGS, LLC BY: /S/ MARC L. LIPSHY ------------------------------ NAME: MARC L. LIPSHY TITLE: VICE PRESIDENT LSF5 REOC VII, L.P. BY: LSF5 GENPAR VII, LLC, ITS GENERAL PARTNER BY: /S/ MARC L. LIPSHY ------------------------------ NAME: MARC L. LIPSHY TITLE: VICE PRESIDENT LSF5 GENPAR VII, LLC BY: /S/ MARC L. LIPSHY ------------------------------ NAME: MARC L. LIPSHY TITLE: VICE PRESIDENT Page 26 of 33 LONE STAR FUND V (U.S.), L.P. BY: LONE STAR PARTNERS V, L.P., ITS GENERAL PARTNER BY: LONE STAR MANAGEMENT CO. V, LTD., ITS GENERAL PARTNER BY: /S/ MARC L. LIPSHY ------------------------------ NAME: MARC L. LIPSHY TITLE: VICE PRESIDENT LONE STAR PARTNERS V, L.P. BY: LONE STAR MANAGEMENT CO. V, LTD., ITS GENERAL PARTNER BY: /S/ MARC L. LIPSHY ------------------------------ NAME: MARC L. LIPSHY TITLE: VICE PRESIDENT LONE STAR MANAGEMENT CO. V, LTD. BY: /S/ MARC L. LIPSHY ------------------------------ NAME: MARC L. LIPSHY TITLE: VICE PRESIDENT /S/ JOHN P. GRAYKEN ---------------------------------- JOHN P. GRAYKEN Page 27 of 33 /S/ ROBERT J. STETSON ---------------------------------- ROBERT J. STETSON Page 28 of 33 APPENDIX A ---------- INFORMATION CONCERNING THE ADDITIONAL LONE STAR PERSONS The following table sets forth the name and current principal occupation of each director, executive officer of the Lone Star Reporting Persons. Unless otherwise specified, each person listed below is a citizen of the United States. NAME AND PRINCIPAL POSITIONS HELD WITH PRESENT PRINCIPAL OCCUPATION BUSINESS ADDRESS LONE STAR REPORTING PERSONS John P. Grayken* President of Lone Principal, Lone Star Global Star Management Acquisitions, Ltd., 717 N. Harwood St. Washington Mall, 1st Floor, Suite 2200 Suite 104, 7 Reid Street, Dallas, TX 75201. Hamilton HM 11 Bermuda. Its principal business is providing origination services. Louis Paletta Vice President of Executive Vice President / Lone Star Management Investor Relations, Lone 717 N. Harwood St. Star Global Acquisitions, Suite 2200 Ltd., 717 N. Harwood St., Dallas, TX 75201. Suite 2200, Dallas, TX 75201. Its principal business is the providing origination services. Michael D. Thomson Director, Chairman Executive Vice President / and General Counsel General Counsel, Hudson 717 N. Harwood St. of Lone Star Advisors LLC, 717 N. Suite 2100 Management Harwood St., Suite 2100, Dallas, TX 75201. Dallas, TX 75201. Its principal business is providing asset management services. Benjamin D. Velvin III Director and Vice Senior Vice President/ President of Lone Director of Closings, 717 N. Harwood St. Star Management. Hudson Advisors LLC, 717 N. Suite 2100 President of Indy Harwood St., Suite 2100, Dallas, TX 75201. Investments, Indy Dallas, TX 75201. Its Holdings and Gen Par principal business is VII providing asset management services. Marc L. Lipshy Vice President of Vice President/Legal Lone Star Management, Counsel, Hudson Advisors 717 N. Harwood St. Indy Investments, LLC, 717 N. Harwood St., Suite 2100 Indy Holdings and Gen Suite 2100, Dallas, TX Dallas, TX 75201. Par VII 75201. Its principal business is providing asset management services. Page 29 of 33 Dawn C. Griffiths** Director and Deputy Attorney, Conyers Dill & Chairman of Lone Star Pearman, Clarendon House Management Clarendon House 2 Church Street 2 Church Street PO Box HM 666 PO Box HM 666 Hamilton HM CX Hamilton HM CX Bermuda Bermuda. Its principal business is providing legal services. * Irish Citizenship ** British Citizenship Page 30 of 33 APPENDIX B ---------- PURCHASES AND SALES OF SNS COMMON STOCK Transactions in SNS Common Stock by HBK Master: PURCHASE (P) OR TRADE DATE SALE(S) QTY PRICE - ---------------- ------------ ------------- -------------------- 5/10/07 P 223,700 $ 15 5/10/07 P 145,000 15 5/10/07 P 50,000 15.00436 5/11/07 P 11,100 15.119099 5/11/07 P 46,000 15.064369 5/11/07 P 1,500 15.281333 5/14/07 P 250,000 15.7 5/14/07 P 41,600 15.487716 5/15/07 P 24,500 15.659551 5/16/07 P 28,100 15.428912 6/13/07 P 150,000 15.1 6/18/07 P 107,400 15.068501 6/18/07 P 15,300 14.978954 6/19/07 P 5,800 15.111552 6/19/07 P 7,300 15.13758082 6/19/07 P 61,700 15.28184765 6/20/07 P 149,800 15.4 6/20/07 P 44,200 15.36979655 6/20/07 P 119,955 15.39162911 Transactions in SNS Common Stock by HBK Fund: PURCHASE (P) OR TRADE DATE SALE(S) QTY PRICE - ---------------- ------------ ------------- -------------------- 6/21/07 P 59,300 $ 15.25239459 6/21/07 P 112,739 15.27764146 6/22/07 P 553,830 15.241 6/22/07 P 15,942 15.2001518 6/22/07 P 25,000 15.2226 6/22/07 P 34 15.1800 Page 31 of 33 Transactions in SNS Common Stock by Indy Investments: PURCHASE (P) OR TRADE DATE SALE(S) QTY PRICE - ---------------- ------------ ------------- -------------------- 05/11/07 P 244,900 $15.0979 05/16/07 P 31,600 15.3528 05/18/07 P 72,800 15.3236 05/21/07 P 49,200 15.4315 Transactions in SNS Common Stock by Mr. Stetson: PURCHASE (P) OR TRADE DATE SALE(S) QTY PRICE - ---------------- ------------ ------------- -------------------- 4/30/07 P 100 $ 16.7200 4/30/07 P 800 16.7200 4/30/07 P 1,200 16.7600 4/30/07 P 200 16.8000 4/30/07 P 100 16.8100 4/30/07 P 300 16.8700 4/30/07 P 100 16.8900 4/30/07 P 200 16.9200 4/30/07 P 1,000 16.9300 5/03/07 P 100 16.4100 5/03/07 P 100 16.4200 5/03/07 P 100 16.4300 5/03/07 P 300 16.4400 5/03/07 P 1,900 16.4500 5/04/07 P 300 16.31 5/04/07 P 100 16.31 5/04/07 P 100 16.31 5/04/07 P 200 16.31 5/04/07 P 100 16.31 5/04/07 P 200 16.31 5/04/07 P 100 16.31 5/04/07 P 100 16.31 5/04/07 P 100 16.31 5/04/07 P 100 16.31 5/04/07 P 100 16.31 5/04/07 P 100 16.31 5/04/07 P 100 16.31 5/04/07 P 100 16.31 5/04/07 P 200 16.31 5/04/07 P 100 16.11 5/04/07 P 25 16.11 5/04/07 P 100 16.11 5/08/07 P 100 16.11 5/08/07 P 1 16.11 Page 32 of 33 5/10/07 P 600 14.8300 5/10/07 P 200 14.8400 5/10/07 P 400 14.8500 5/10/07 P 200 14.8700 5/10/07 P 3,600 14.8800 5/10/07 P 1,100 14.8300 5/10/07 P 3,900 14.8500 5/10/07 P 5,000* 14.95 5/10/07 P 4,000* 14.95 5/10/07 P 3,000* 14.90 5/14/07 P 500 15.4600 5/14/07 P 1,600 15.5700 5/14/07 P 900 14.4800 5/14/07 P 1,000 15.6000 5/14/07 P 1,000 15.6100 5/14/07 P 1,000 15.5500 5/14/07 P 2,000 15.5600 5/14/07 P 1,000 15.5800 5/14/07 P 800 15.5500 5/14/07 P 1,000 15.49 5/14/07 P 1,000 15.55 5/14/07 P 1,000 15.589 5/14/07 P 1,000 15.62 5/14/07 P 1,000 15.642 5/14/07 P 1,000 15.57 5/14/07 P 200 15.61 5/14/07 P 1,800 15.64 6/06/07 P 3,000 14.9993 6/06/07 P 3,000* 15 *Shares purchased in the account of a family member over which Mr. Stetson has voting and dispositive power. Page 33 of 33 EX-99 2 mm06-2207_13de701.txt EX.7.01 - JOINT FILING AGREEMENT EXHIBIT 7.01 ------------ JOINT FILING AGREEMENT This Agreement is made this 25th day of June, 2007, by and between each of the undersigned. The undersigned each acknowledge and agree that the foregoing Statement on Schedule 13D with respect to the ownership of certain equity securities of The Steak n Shake Company is filed on behalf of each of the undersigned and that all subsequent amendments to this Statement on Schedule 13D shall be filed on behalf of each of the undersigned without the necessity of filing additional joint filing statements. The undersigned acknowledge that each shall be responsible for the timely filing of such amendments, and for the completeness and accuracy of the information concerning him or it contained therein, but shall not be responsible for the completeness and accuracy of the information concerning the other reporting persons, except to the extent that he, she or it knows or has reason to believe that such information is inaccurate. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument. [Signature Pages Follow.] IN WITNESS WHEREOF, each of the undersigned has executed this Joint Filing Agreement as of the date first written above. HBK MASTER FUND L.P. BY: HBK SERVICES LLC INVESTMENT ADVISOR BY: /S/ JON L. MOSLE -------------------------------- NAME: JON L. MOSLE TITLE: AUTHORIZED SIGNATORY HBK FUND L.P. BY: HBK SERVICES LLC INVESTMENT ADVISOR BY: /S/ JON L. MOSLE -------------------------------- NAME: JON L. MOSLE TITLE: AUTHORIZED SIGNATORY HBK INVESTMENTS L.P. BY: /S/ JON L. MOSLE -------------------------------- NAME: JON L. MOSLE TITLE: AUTHORIZED SIGNATORY HBK SERVICES LLC BY: /S/ JON L. MOSLE -------------------------------- NAME: JON L. MOSLE TITLE: AUTHORIZED SIGNATORY HBK PARTNERS II L.P. BY: HBK MANAGEMENT LLC GENERAL PARTNER BY: /S/ JON L. MOSLE -------------------------------- NAME: JON L. MOSLE TITLE: AUTHORIZED SIGNATORY HBK MANAGEMENT LLC BY: /S/ JON L. MOSLE -------------------------------- NAME: JON L. MOSLE TITLE: AUTHORIZED SIGNATORY LSF5 INDY INVESTMENTS, LLC BY: /S/ MARC L. LIPSHY -------------------------------- NAME: MARC L. LIPSHY TITLE: VICE PRESIDENT LSF5 INDY HOLDINGS, LLC BY: /S/ MARC L. LIPSHY -------------------------------- NAME: MARC L. LIPSHY TITLE: VICE PRESIDENT LSF5 REOC VII, L.P. BY: LSF5 GENPAR VII, LLC, ITS GENERAL PARTNER BY: /S/ MARC L. LIPSHY -------------------------------- NAME: MARC L. LIPSHY TITLE: VICE PRESIDENT LSF5 GENPAR VII, LLC BY: /S/ MARC L. LIPSHY -------------------------------- NAME: MARC L. LIPSHY TITLE: VICE PRESIDENT LONE STAR FUND V (U.S.), L.P. BY: LONE STAR PARTNERS V, L.P., ITS GENERAL PARTNER BY: LONE STAR MANAGEMENT CO. V, LTD., ITS GENERAL PARTNER BY: /S/ MARC L. LIPSHY -------------------------------- NAME: MARC L. LIPSHY TITLE: VICE PRESIDENT LONE STAR PARTNERS V, L.P. BY: LONE STAR MANAGEMENT CO. V, LTD., ITS GENERAL PARTNER BY: /S/ MARC L. LIPSHY -------------------------------- NAME: MARC L. LIPSHY TITLE: VICE PRESIDENT LONE STAR MANAGEMENT CO. V, LTD. BY: /S/ MARC L. LIPSHY -------------------------------- NAME: MARC L. LIPSHY TITLE: VICE PRESIDENT /S/ JOHN P. GRAYKEN ------------------------------------ JOHN P. GRAYKEN /S/ ROBERT J. STETSON ------------------------------------ ROBERT J. STETSON EX-99 3 mm06-2207_13de702.txt EX.7.02 - INVESTMENT LETTER AGREEMENT EXHIBIT 7.02 ------------ - -------------------------------------- --------------------------------------- HBK MASTER FUND L.P. LSF5 INDY INVESTMENTS LLC HBK FUND L.P. 717 NORTH HARWOOD STREET, SUITE 2200 C/O HBK SERVICES LLC DALLAS, TEXAS 75201 300 CRESCENT COURT, SUITE 700 DALLAS, TEXAS 75201 - -------------------------------------- --------------------------------------- ROBERT J. STETSON 12240 INWOOD ROAD, SUITE 405 DALLAS, TEXAS 75244 - -------------------------------------- --------------------------------------- June 25, 2007 Ladies and Gentlemen: This letter agreement (this "Agreement") sets forth the agreement among HBK Master Fund L.P., a Cayman Islands limited partnership ("HBK Master"), HBK Fund L.P., a Delaware limited partnership ("HBK Fund" and together with HBK Master, "HBK"), LSF5 Indy Investments LLC, a Delaware limited liability company ("Lone Star" and together with HBK, each an "Investor Party" and collectively the "Investor Parties"), and Robert J. Stetson ("Stetson", and together with the Investor Parties, each a "Party" and collectively the "Parties") with respect to certain matters related to the acquisition by each of the Parties of certain shares of common stock, par value $0.50 per share (the "Common Stock"), of The Steak n Shake Company, an Indiana corporation (the "Issuer"). 1. Allocation of Common Stock of the Issuer. HBK Master represents and warrants to the other Parties that, as of the date hereof, it has direct beneficial ownership of 1,482,955 shares of Common Stock. HBK Fund represents and warrants to the other Parties that, as of the date hereof, it has direct beneficial ownership of 766,845 shares of Common Stock. Lone Star represents and warrants to the other Parties that, as of the date hereof, it has direct beneficial ownership of 398,500 shares of Common Stock. Stetson represents and warrants to the other Parties that, as of the date hereof, it has direct beneficial ownership of 55,426 shares of Common Stock. Each Party represents and warrants to the other Parties that, as of the date hereof, neither it nor any of its affiliates beneficially owns (determined in accordance with Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) any shares of Common Stock other than the shares of Common Stock set forth above. Within five (5) business days following the date hereof, HBK shall sell to Lone Star, and Lone Star shall purchase from HBK, 925,650 shares of Common Stock for a purchase price equal to the total price paid by the Investor Parties for the shares of Common Stock owned by them divided by two (inclusive of brokerage commissions) minus the total price previously paid by Lone Star (inclusive of brokerage commissions) for the shares of Common Stock held by it as of the date of this Agreement. It is the intent of the foregoing provision that following such purchase and sale, HBK and Lone Star shall each own 50% of the total aggregate number of shares of Common Stock owned by HBK and Lone Star collectively. 1 2. Standstill. Without the agreement of each of the Investor Parties, except as provided in paragraph 1 hereof, and subject to paragraph 3 hereof, no Party shall, and each Party shall cause its affiliates to not, at any time prior to the termination of this Agreement in accordance with the provisions of paragraph 5, (i) acquire, offer or propose to acquire, or agree or seek to acquire, directly or indirectly, by purchase or otherwise, any securities or direct or indirect rights or options to acquire any securities of the Issuer or its subsidiaries or of any successor to or person in control of the Issuer or any of its subsidiaries, or any assets of the Issuer or its subsidiaries or divisions thereof or of any such successor or controlling person, (ii) enter into or agree, offer, propose or seek to enter into, or otherwise be involved in or part of, directly or indirectly, any acquisition transaction or other business combination relating to all or part of the Issuer or its subsidiaries or any acquisition transaction for all or part of the capital stock or assets of the Issuer or its subsidiaries or any of their respective businesses (including, without limitation, by entering into a confidentiality agreement, standstill agreement or letter of intent with respect to such transaction or business combination); (iii) make, or in any way participate in, directly or indirectly, any "solicitation" of "proxies" (as such terms are used in the rules of the Securities and Exchange Commission) to vote, or seek to advise or influence any person or entity with respect to the voting of, any voting securities of the Issuer or any of its subsidiaries; (iv) form, join or in any way participate in a "group" (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934) with respect to any voting securities of the Issuer or any of its subsidiaries; (v) seek or propose, alone or in concert with others, to influence or control the Issuer's management or policies; (vi) directly or indirectly enter into any discussions, negotiations, arrangements or understandings with the Issuer or any other person with respect to any of the foregoing activities or propose any of such activities to the Issuer or any other person; (vii) advise, assist, encourage, act as a financing source for or otherwise invest in any other person in connection with any of the foregoing activities; or (viii) disclose any intention, plan or arrangement inconsistent with any of the foregoing. In addition, without the agreement of each of the Investor Parties, except as provided in paragraph 1 hereof, no Party shall, and each Party shall cause its affiliates to not, at any time prior to the termination of this Agreement in accordance with the provisions of paragraph 5, sell any shares of Common Stock or any interest therein; provided, however, that in the event the shares of Common Stock of an Investor Party are subject to the Call Option (as defined in paragraph 6), such Investor Party shall not sell such shares of Common Stock until either (a) such shares of Common Stock are purchased by the other Investor Party pursuant to an exercise of the Call Option or (b) the Call Period expires without the other Investor Party delivering written notice of its exercise of the Call Option as provided in paragraph 6. 3. Subsequent Purchases of Common Stock. Following the date hereof, with respect to all purchases of Common Stock by an Investor Party prior to the termination of this Agreement pursuant to paragraph 5, unless otherwise agreed by both Investor Parties, it is the intent of the Parties that half of the Common Stock acquired in any purchase of Common Stock by an Investor Party be acquired for the benefit of the other Investor Party. At any time following such subsequent purchase or series of purchases of Common Stock, either Investor Party may require that all shares of Common Stock held by the purchasing Investor Party for the benefit of the non-purchasing Investor Party be transferred to the non-purchasing Investor Party in exchange for the price paid by the purchasing Investor Party for such transferred shares of Common Stock; provided, however, that any such transfer shall occur on not less than five (5) business days notice from the applicable Investor Party, and only one such transfer shall be permitted to occur in any five (5) business day period without 2 the consent of both Investor Parties. Within five (5) business day of the termination of this Agreement in accordance with paragraph 5, all shares of Common Stock held by the purchasing Investor Party for the benefit of the non-purchasing Investor Party shall be transferred to the non-purchasing Investor Party in exchange for the price paid by the purchasing Investor Party for such transferred shares of Common Stock. 4. Filing and Amendment of Schedule 13D. The Parties acknowledge and agree that they shall jointly file with the Securities and Exchange Commission a Schedule 13D in respect of the shares of Common Stock owned by the Parties, and they agree to cooperate with each other in good faith with respect to any necessary amendments to such Schedule 13D. 5. Termination. This Agreement may be terminated at any time by either Investor Party by delivering notice in writing of such termination to each of the other Parties hereto. Such notice shall be effective upon receipt by the non-terminating Party. Upon such termination, this Agreement shall terminate and be of no further force and effect, except for the provisions of paragraph 3, paragraph 4, paragraph 6, and the last sentence of paragraph 2, each of which shall continue in full force and effect in accordance with their terms following such termination, and except that such termination shall not relieve any Party for liability as a result of the breach of any of the provisions of this Agreement. Without altering or amending any of the other terms of this Agreement, upon termination of this Agreement, it is the intent of the Parties that any relationships among the Parties that could result in them being deemed a "group" within the meaning of Rule 13d-5(b) under the Exchange Act shall be deemed terminated. 6. Call Right; Subsequent Sales. (a) In the event that either Investor Party elects to terminate this Agreement as set forth in paragraph 5 above, the non-terminating Investor Party shall have the right, but shall in no event be required, to require the terminating Investor Party to sell to the non-terminating Investor Party all of the Common Stock of the terminating Investor Party (the "Call Option") at the Call Price (as defined herein). The non-terminating Investor Party shall give written notice of its intent to exercise the Call Option within three (3) business days following receipt of the notice of termination of this Agreement from the terminating Investor Party (the "Call Period"). If such notice is not delivered within the Call Period the Call Option shall terminate and be of no further force and effect. If such notice is delivered within the Call Period, the purchase and sale of the Common Stock, whereby the terminating Investor Party shall deliver, or shall cause to be delivered via DTC, all of its Common Stock to the non-terminating Investor Party in exchange for Payment of the Call Price, shall occur on such date as determined by the Investor Parties, but in no event more than three (3) business days following delivery of the written notice by the non-terminating Investor Party of its exercise of the Call Option. As used herein, the "Call Price" shall be an amount equal to (i) the dollar volume-weighted average price of the Common Stock on the New York Stock Exchange as reported by Bloomberg Financial Markets for the five trading day period preceding the date on which the notice of termination is delivered pursuant to this paragraph 5, multiplied by (ii) the number of shares of Common Stock subject to the Call Option. Notwithstanding anything to the contrary contained herein, the Call Option shall not be applicable in the event the 3 non-terminating Investor Party is in breach of the terms of this Agreement at the time such Agreement is terminated by the other Investor Party. (b) In the event that the non-terminating Investor Party does not or is deemed to not exercise the Call Option, then if either Investor Party sells or disposes of any shares of Common Stock within thirty (30) days of when the non-terminating Investor Party did not or was deemed to not exercise the Call Option, then such Investor Party shall given written notice to the other Investor Party. Within five (5) business days following the expiration of such thirty (30) period, HBK shall pay to Lone Star or Lone Star shall pay to HBK, as applicable, an amount in cash such that the net cash proceeds per share of Common Stock sold by the Investor Parties during such thirty (30) period is the same for each Investor Party. 7. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas applicable to contracts executed in and to be performed in that State. 8. Other Agreements. This Agreement constitutes the entire agreement, and supersedes all prior agreements, understandings and statements, both written and oral, among the Parties or any of their affiliates with respect to the subject matter contained herein. 9. Counterparts. This Agreement may be executed in any number of counterparts, all of which will be one and the same agreement. [Signature pages follow] 4 [Signature Page to Investment Letter Agreement] IN WITNESS WHEREOF, each of the undersigned has executed this Agreement as of the date first written above. HBK MASTER FUND L.P. By: HBK Services LLC, Investment Advisor By: /s/ J. Baker Gentry, Jr. ------------------------------------- Name: J. Baker Gentry, Jr. Title: Authorized Signatory HBK FUND L.P. BY: HBK Services LLC, Investment Advisor By: /s/ J. Baker Gentry, Jr. ------------------------------------- Name: J. Baker Gentry, Jr. Title: Authorized Signatory (Signature page continued on following page) 5 [Signature Page to Investment Letter Agreement] LSF5 INDY INVESTMENTS, LLC By: /s/ Marc L. Lipshy ------------------------------------ Name: Marc L. Lipshy Title: Vice President (Signature page continued on following page) 6 [Signature Page to Investment Letter Agreement] /s/ Robert J. Stetson -------------------------------------------- Robert J. Stetson 7 -----END PRIVACY-ENHANCED MESSAGE-----