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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 2)
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QUALITY DINING, INC.
(Name of Issuer)
Common Stock, no par value 747456P 10 5
(Title of class of securities) (CUSIP number)
David W. Schostak
NBO, LLC
25800 Northwestern Highway
Suite 750
Southfield, Michigan 48075
(248) 262-1000
(Name, address and telephone number of person authorized
to receive notices and communications)
January 13, 2000
(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.
(Continued on following pages)
(Page 1 of 8 pages)
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<CAPTION>
- ----------------------------------------------------------- --------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CUSIP No. 747456P 10 5 13D Page 2 of 8 Pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON NBO, LLC
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: WC
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Michigan
- ---------------------- -------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 1,200,000
SHARES ------------------- -------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY ------------------- -------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 1,200,000
REPORTING ------------------- -------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,200,000
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 9.4%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: OO
- ---------------------- -------------------------------------------------------------------------------------------------------
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
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<S> <C> <C> <C> <C> <C>
CUSIP No. 747456P 10 5 13D Page 3 of 8 Pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON Jerome L. Schostak
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF, OO
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States
- ---------------------- -------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES ------------------- -------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,200,000
OWNED BY ------------------- -------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING ------------------- -------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,200,000
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,200,000
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 9.4%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------- -------------------------------------------------------------------------------------------------------
</TABLE>
3
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<TABLE>
<CAPTION>
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<S> <C> <C> <C> <C> <C>
CUSIP No. 747456P 10 5 13D Page 4 of 8 Pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON David W. Schostak
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF, OO
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States
- ---------------------- -------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES ------------------- -------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,200,000
OWNED BY ------------------- -------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING ------------------- -------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,200,000
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,200,000
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 9.4%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------- -------------------------------------------------------------------------------------------------------
</TABLE>
4
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<TABLE>
<CAPTION>
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<S> <C> <C> <C> <C> <C>
CUSIP No. 747456P 10 5 13D Page 5 of 8 Pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON Robert I. Schostak
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF, OO
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States
- ---------------------- -------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES ------------------- -------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,200,000
OWNED BY ------------------- -------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING ------------------- -------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,200,000
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,200,000
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 9.4%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------- -------------------------------------------------------------------------------------------------------
</TABLE>
5
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<TABLE>
<CAPTION>
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<S> <C> <C> <C> <C> <C>
CUSIP No. 747456P 10 5 13D Page 6 of 8 Pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON Mark S. Schostak
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF, OO
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States
- ---------------------- -------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES ------------------- -------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,200,000
OWNED BY ------------------- -------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING ------------------- -------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,200,000
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,200,000
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 9.4%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------- -------------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
This Amendment No. 2 ("Amendment No. 2") amends the Statement on
Schedule 13D (the "Schedule 13D") filed on March 26, 1999, as amended by
Amendment No. 1 filed on October 5, 1999 by and on behalf of the following
persons: NBO, LLC ("NBO"), Jerome L. Schostak, David W. Schostak, Robert I.
Schostak and Mark S. Schostak (collectively, the "Schostaks" and together with
NBO, the "Reporting Persons").
Except as otherwise indicated, capitalized terms used herein and not
defined herein have the meanings ascribed thereto in the Schedule 13D. As used
herein, the "Company" or the "Issuer" shall mean Quality Dining, Inc.
ITEM 4. PURPOSE OF TRANSACTION.
On January 13, 2000, the Reporting Persons filed with the Securities
and Exchange Commission a preliminary proxy statement expressing the current
intention of the Reporting Persons to (i) nominate David W. Schostak, Mark S.
Schostak and Christopher G. Ellis for election as directors at the Company's
2000 Annual Meeting of Shareholders and (ii) put forth a shareholder proposal
for consideration at such meeting recommending that the Company terminate its
"poison pill" shareholder rights plan and not adopt another rights plan without
the approval of the holders of a majority of the outstanding shares of the
Company. As more fully set forth in the proxy statement, it is the intention of
the Reporting Persons to influence the Company to promptly conduct an auction
process to effect a negotiated sale, merger or other disposition of the Company
(or all or substantially all of its assets) to the highest bidder. NBO (or one
of its affiliates) would expect to be a bidder in any sales process, but would
not expect to receive any preferential treatment.
Except as indicated above, the information set forth in Item 4 of the
Schedule 13D remains unchanged.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO
SECURITIES OF THE ISSUER
On January 13, 2000, NBO and Christopher G. Ellis entered into a
letter agreement (the "Ellis Indemnification Letter"), pursuant to which NBO
agreed, among other things, to indemnify and hold harmless Mr. Ellis from
certain liabilities that could arise out of, or result from, Mr. Ellis serving
as an NBO Nominee and related matters. A copy of the Ellis Indemnification
Letter is filed as Exhibit 3 hereto and incorporated herein by reference.
Except as indicated above, the information set forth in Item 6 of the
Schedule 13D remains unchanged.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
The following Exhibits are filed herewith:
3. Ellis Indemnification Letter, dated January 13, 2000,
between NBO and Ellis.
7
<PAGE>
SIGNATURES
The undersigned, after reasonable inquiry and to the best of their knowledge and
belief, certify that the information set forth in this Statement is true,
complete and correct.
Dated: January 13, 2000
NBO, LLC
By: /s/ David W. Schostak
---------------------------------------
David W. Schostak, Member
/s/ Jerome L. Schostak
---------------------------------------
Jerome L. Schostak
/s/ David W. Schostak
---------------------------------------
David W. Schostak
/s/ Robert I. Schostak
---------------------------------------
Robert I. Schostak
/s/ Mark S. Schostak
---------------------------------------
Mark S. Schostak
8
<PAGE>
EXHIBIT INDEX
Exhibit No. DESCRIPTION
- ----------- -----------
3. Ellis Indemnification Letter, dated January 13, 2000, between
NBO and Ellis.
9
NBO, LLC
25800 NORTHWESTERN HIGHWAY
SUITE 750
SOUTHFIELD, MICHIGAN 48075
January 13, 2000
Mr. Christopher G. Ellis
c/o Savill Bevan Butler, Ltd.
The Old Laundry
Ossington Buildings
No. 6 Grotto Passage
London W1MJ3D
United Kingdom
Dear Chris:
You have consented to serve as a nominee (an "NBO Nominee") of NBO,
LLC ("NBO") for election as a director of Quality Dining, Inc. (the "Company")
at the Company's 2000 Annual Meeting of Shareholders (the "2000 Annual
Meeting"). In connection therewith, we mutually agree as follows:
We agree to indemnify you and hold you harmless from and against all
expenses, liabilities and losses (including attorneys' fees, judgments, fines
and amounts paid or to be paid in any settlement) actually incurred or suffered
by you in connection with any present or future threatened, pending or
contemplated investigation, claim, action, suit or proceeding, whether civil,
criminal, administrative or investigative, to which you are made a party or
threatened to be made a party by reason of any action or inaction taken or
omitted in connection with your service as an NBO Nominee, the solicitation of
proxies in respect of the NBO Nominees (which include, in addition to yourself,
David W. Schostak and Mark S. Schostak) in connection with the 2000 Annual
Meeting and any communication to the Company's shareholders or filings with the
Securities and Exchange Commission relating thereto (including, without
limitation, proxy statements, solicitation materials and statements on Schedule
13D). Notwithstanding anything to the contrary contained herein, we shall not
have any obligation to indemnify or hold you harmless from any such expense,
liability or loss arising out of your fraud, willful misconduct or gross
negligence.
Upon receipt by you of actual notice of the commencement of an action
or proceeding against you in respect of which indemnity may be sought hereunder,
you shall promptly notify us with respect thereto (provided that failure to so
notify us shall not relieve us from any liability which we may have on account
of this agreement, except to the extent we shall have been actually and
materially prejudiced by such failure) and we may elect to assume the defense
thereof, including the employment of counsel reasonably satisfactory to you, and
shall have the right to settle such action or proceeding (providing that such
settlement provides for an unconditional release of you from any liabilities in
respect thereof). You shall have the right to employ separate counsel in any
such action and to participate in the defense thereof, but the fees and expenses
of such counsel shall be at your expense unless (a) we have agreed to pay the
fees and expenses of such counsel, (b) we shall have failed promptly (after
notice thereof from you) to assume the defense of such action or proceeding and
employed counsel reasonably satisfactory to you in any such action or
proceeding, or (c) the named parties to any such action or proceedings
<PAGE>
include you and us and you shall have been advised by counsel that there are one
or more legal defenses available to us which are different from or additional to
those available to you which, if we and you were to be represented by the same
counsel, would constitute a conflict of interest for such counsel or prejudice
the prosecution of defenses available to you in which case, if you notify us in
writing that you elect to employ separate counsel at our expense, we shall not
have the right to assume the defense of such action or proceeding on your behalf
(it being understood, however, that we shall not, in connection with any such
action or proceeding or separate but substantially similar or related actions or
proceedings in the same jurisdiction arising out of the same general allegations
or circumstances, be liable for the reasonable fees and expenses or more than
one separate firm of attorneys (together with appropriate local counsel) at any
time for you and you shall instruct each separate counsel to reasonably
cooperate with us in order to reduce fees and expenses for which we are liable).
We shall not be liable for any settlement of any litigation or proceeding
affected without our written consent (which consent shall not be unreasonably
withheld), but, if settled with such consent, we agree to indemnify you from and
against any loss or liability by reason of such settlement.
This agreement is the only agreement between the parties hereto with
respect to the subject matter hereof.
This agreement may be signed in counterparts, each of which shall be
deemed to be an original instrument, and all of which shall together constitute
one and the same agreement.
This agreement shall be governed by the laws of the State of Michigan
without regard to the principles thereof relating to the conflict or choice of
laws.
If the foregoing reflects our mutual understanding and agreement,
please so indicate by signing a duplicate of this letter where indicated below
and returning it to the undersigned.
Very truly yours,
NBO, LLC
By: /s/ David W. Schostak
--------------------------------------
Name: David W. Schostak
Title: Member
Accepted and Agreed:
/s/ Christopher G. Ellis
- -----------------------------------------
Christopher G. Ellis
2
