UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                                WASHINGTON, DC 20549

                                     Schedule 14A
                         Proxy Statement under Section 14(a)
                       of the Securities Exchange Act of 1934

Filed by the Registrant   [X]
Filed by a Party other than the Registrant   [ ]

Check the appropriate box:
[X] Preliminary Proxy Statement
[ ] Confidential for use of the Commission only (as permitted by Rule 14a-
    6(e)(2))
[ ] Definitive Proxy Statement
[ ] Definitive Additional Materials
[ ] Soliciting Material Pursuant to ss ss 240.14a-11(c) of ss ss 240.14a-12

                      FAMILY STEAK HOUSES OF FLORIDA, INC.
                (Name of Registrant as Specified in its Charter)

                               not applicable
   (Name of Person(s) Filing Proxy Statement if other than the Registrant)

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            _________________________________________________________________
      (2)   Aggregate number of securities to which transaction applies:
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            pursuant to Exchange Act Rule 0-11: (set forth the amount in which
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[ ]   Check box if any part of the fee is offset as provided by Exchange Act
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      paid previously.  Identify the previous filing by registration statement
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                      FAMILY STEAK HOUSES OF FLORIDA, INC.
                            2113 Florida Boulevard
                        Neptune Beach, Florida  32266
                        EACO CORPORATION
                     1500 N. Lakeview Avenue
                    Anaheim, California 92807

            NOTICE OF ANNUAL MEETING OF SHAREHOLDERS

      You  are  cordially  invited  to  attend  the  20042006  Annual
Shareholders'  Meeting of Family Steak Houses of Florida, Inc.EACO Corporation  to  be  held  at  the
Sea Turtle Inn, One Ocean Boulevard, Atlantic
Beach, Florida 32233,offices  of  Bisco  Industries, Inc., 1500  N.  Lakeview  Avenue,
Anaheim,  California 92807, on Thursday,Tuesday, June 17, 200420,  2006  at  10:00
a.m. for the purpose of:

          1.   Electingelecting Directors; and

          2.   To consider and vote on a proposal to amend the
            Company's Articles of Incorporation to change the
            Company's name; and

     3.     Transactingtransacting such other business as may properly
               come before the meeting.

      The  Board of Directors has fixed the close of business  on
April  23, 200411,  2006 as the record date for determining  shareholders
entitled  to vote at the meeting. Only shareholders of record  at
the  close of business on that date will be entitled to  vote  at
the meeting.

      The vote of every shareholder is important. Whether or  not
you  plan  to  attend the meeting, please complete  the  enclosed
proxy  and  return  it  promptly so  that  your  shares  will  be
represented.  Sending  in your proxy will not  prevent  you  from
voting in person at the meeting.


                              Glen F. Ceiley
                              Chairman of the Board

Date: May 3, 2004April 27, 2006





                        FAMILY STEAK HOUSES OF FLORIDA, INC.EACO CORPORATION
                     2113 Florida Boulevard
                  Neptune Beach, Florida  32266

                         PROXY STATEMENT
                               for
               20042006 ANNUAL MEETING OF SHAREHOLDERS

General Information

      The  solicitation of the enclosed proxy is made by  and  on
behalf  of  the  Board  of  Directors of  Family Steak Houses of
Florida, Inc.EACO  Corporation  (the
"Company")  to be used at the 20042006 Annual Meeting of Shareholders
(the  "Annual  Meeting"), which will be held at  the  Sea Turtle
Inn, One Ocean Boulevard, Atlantic Beach, Florida,offices  of
Bisco  Industries,  Inc.  ("Bisco"),  1500  N.  Lakeview  Avenue,
Anaheim,  California 92807, at 10:00 a.m. on  Thursday,Tuesday,  June  17, 2004.20,
2006.   The  principal  executive offices  of  the  Company  are located at 2113 Florida Boulevard, Neptune Beach,
Florida 32266.were
recently  moved  to 1500 N. Lakeview Avenue, Anaheim,  California
92807.  The  approximate mailing date of this Proxy Statement  is
May 5, 2003.April 28, 2006.

      The proxy may be revoked at any time before it is exercised
by  giving  notice  of  revocation  to  the  Company's  Corporate
Secretary of the Company.at 1500 N. Lakeview Avenue, Anaheim, California  92807.
The  shares represented by proxies in the form solicited  by  the
Board of Directors will be voted at the meeting.Annual Meeting.  Where  a
choice  is  specified with respect to a matter to be voted  upon,
the  shares  represented by the proxy will be voted in accordance
with  such specification.  If no choice is specified, such shares
will be voted as hereinafter stated in this Proxy Statement.

Record Date and Voting Securities

      The  Board of Directors has fixed the close of business  on
April   23, 200411,  2006  as  the  record  date  for  determination   of
shareholders entitled to vote at the meeting.Annual Meeting.  Holders  of
the  Company's  common  stock, par value  $0.01  per  share  (the
"Common Stock") as of April 23, 200411, 2006 will be entitled to one vote
for  each  share  held, with no shares having  cumulative  voting
rights.   No other class of the Company's securities is  entitled
to  vote  at the meeting.  As of April 23, 2004,March 20, 2006, the Company  had
outstanding 3,736,0683,906,799 shares of Common Stock.

Voting Procedures

     Under Florida law and the Amended and Restated Bylaws of the
Company (the "Bylaws"), a majority of shares of the Common


Stock entitled  to vote, represented by person or proxy, constitutes
a quorum at a meeting of shareholders.

     If  less  than  a  majority of the  outstanding  shares  are
represented  at the Annual Meeting, a majority of the  shares  so
represented  may  adjourn  the  Annual  Meeting  without  further
notice.

Security Ownership of Certain Beneficial Owners and of Management

      The  table  set  forth below presents  certain  information
regarding beneficial ownership of the Company's Common Stock (the
Company's  only voting security), as of April 1, 2004,March 20,  2006,  by  (i)
each  shareholder known to the Company to own, or have the  right
to acquire within sixty (60) days, more than five percent (5%) of
the  Common Stock outstanding, (ii) each named executive  officer
and director of the Company, and (iii) all officers and directors
of the Company as a group.


                              Amount of Common Stock   Percent of
Name of Beneficial Owner       Beneficially Owned(1)    Class(2)Class (2)
- ------------------------       ---------------------   ----------

Edward B. Alexander                   23,000                     .6%Alexander(3)                      10,900            *
Stephen Catanzaro                           19,113            .5%*
Glen F. Ceiley(3)                  2,251,735                   60.3%Ceiley(4)                        2,410,985        61.7%
Jay ConzenConzen(5)                               41,113         1.1%
William L. Means                            16, 113                     .4%16,113            *
_________________________________
All Executive Officers and
Directors as a group               2,351,074                   62.9%group(6)                  2,498,224        64.6%
________________________________
*  Less than 1%

(1)  Included in such beneficial ownership are shares  of  Common
Stock  which  may be acquired immediately or within  60  days  of
March 20, 2006 upon the exercise of certain options; Edward B. Alexander, 23,000 shares; Jay Conzen,
25,000 shares; and all executive officers and directors as a group,
48,000 shares.options.

(2)  The percentages represent the total of the shares listed  in
the  adjacent column divided by the3,906,799 issued and  outstanding
shares  of  Common  Stock as of April
1, 2004,March 20, 2006,  plus  any  stock
options or warrants exercisable by such person within 60days60 days  of
April 1, 2004.March 20, 2006.

(3)   Edward  B.  Alexander has 7,500 shares  issuable  upon  the
exercise of options within 60 days of March 20, 2006.

(4) Based on information set forth by Mr. Ceiley in response to a
questionnaire from the Company on April 1, 2004, Bisco Industries, Inc. ("Bisco") owns
1,842,019 shares;March 10, 2006, Glen F. Ceiley,
President  and  a  director  of  Bisco,  owns  58,6071,913,443  shares,
individually;  Zachary  Ceiley,  Mr.  Ceiley's  son,  owns  1,300
shares; and the Bisco Industries Profit Sharing and Savings  Plan
(the  "Bisco Plan") owns 349,809496,242 shares. Mr. Ceiley has the  sole
power  to vote and dispose of the shares of Common Stock he  owns


individually and the power to vote and to dispose of  the  shares
owned by his son, Bisco and the Bisco Plan.

(5)   Jay Conzen has 25,000 shares issuable upon the exercise  of
options within 60 days of March 20, 2006.

(6)   All executive officers and directors as a group have 32,500
shares  issuable upon the exercise of options within 60  days  of
March  20,  2006.  The address for Mr. Ceileyeach officer and director  and
Bisco is 1500 North Lakeview Avenue, Anaheim, CA  92807.

Equity Compensation Plans

     None.

Board of Directors and Standing Committees

      The business of the Company is under the general management
of  a  Board  of  Directors as provided by the  Florida  Business
Corporation  Act.  In accordance with the Bylaws of the  Company,
which  empower the Board of Directors to appoint such  committees
as it deems necessary and appropriate, the Board of Directors has
appointed  an  Audit  Committee  and  an  Executive  Compensation
Committee.

      Audit Committee: The Audit Committee's basic functions  are
to  assist  the  Board of Directors in discharging its  fiduciary
responsibilities to the shareholders and the investment community
in the preservation of the integrity of the financial information
published  by  the Company, to maintain free and  open  means  of
communication   between  the  Company's  directors,   independent
auditors and financial management, and to ensure the independence
of the independent auditors. The Board of Directors has adopted a
written charter for the Audit Committee which iswas attached as  an
Appendix to thisthe Company's Definitive Proxy Statement.Statement for the 2004
Annual  Meeting  of Shareholders. Currently, the members  of  the
Audit  Committee  are  Directors  Catanzaro,  Conzen  and  Means.
Directors  Catanzaro,  Conzen and Means are "independent"  within
the  meaning of Rule 4200(a)(15) of the NASD's published  listing
standards.   The  Audit  Committee held one  meeting  during  the
fiscal  year ending December 31, 2003.28, 2005. All members of  the  Audit
Committee attended this meeting.

     Audit  Committee  Financial Expert:  The  Company  does  not
currently have an audit committee financial expert.  The  Company
believes  that  the  members  of  the  Board  of  Directors  have
demonstrated  that they are capable of analyzing  and  evaluating
the  Company's  financial statements and  understanding  internal
controls  and  procedures for financial reporting.  In  addition,


the  Company believes that retaining a director who would qualify
as  an  audit  committee financial expert  would  be  costly  and
burdensome and is not warranted in the circumstances.

     Audit  Committee  Pre-Approval Policies and Procedures:  The
Audit  Committee is required to pre-approve all auditing services
and  permissible non-audit services, including related  fees  and
terms,  to  be  performed  for  the Company  by  its  independent
auditor,  subject  to  the  de minimus exceptions  for  non-audit
services  described under the Securities Exchange  Act  of  1934,
which are approved by the Audit Committee prior to the completion
of  the  audit.   In 2003,fiscal year 2005, the Audit  Committee  pre-approvedpre-
approved all services performed for the Company by the auditor.

     Financial Code of Ethical Conduct: The Company has adopted a
financial code of ethics applicable to the Company's senior
executive and financial officers.  You may receive, without
charge, a copy of the Financial Code of Ethical Conduct by
contacting our Corporate Secretary at 2113 Florida Boulevard,
Neptune Beach, Florida 32266.

     Executive Compensation Committee: The Executive Compensation
Committee  administers the Company's stock option  plans  and  is
responsible for granting stock options to officers and managerial
employees of the Company. It is also responsible for establishing
the  salary and annual bonuses paid to executive officers of  the
Company.  The  current  members  of  the  Executive  Compensation
Committee   are   Directors  Ceiley  and  Means.  The   Executive
Compensation Committee held one meeting during fiscal year  2003.2005.
All members of the Committee attended this meeting.

      Board  Meetings: The Board of Directors held four  meetings
during  fiscal year 2003.2005. Each member of the Board  attended  all
four meetings. The Company does not have a policy with regard  to
directors'  attendance at annual meetings of shareholders.   None
of   the   directors   attended  our  20032005  Annual   Meeting   of
Shareholders.

     Nominating Committee: The Board of Directors does not have a
Nominating  Committee.  Given the size of  the  Company  and  its
resources,  the  Board believes that this is  appropriate.   Each
director  participates in the consideration of director nominees.
The Board believes that having such a committee would not enhance
the  nomination  process.  The Company does  not  have  a  formal
policy  regarding  the consideration of any  director  candidates
recommended  by  shareholders or specific minimum  qualifications
for director nominees.

     Communications to Board of Directors: The Board of Directors
has  established  a process for shareholders to communicate  with
members  of the Board of Directors.  If you would like to contact
the  Board you can do so by forwarding your


concern, question  or complaint  to  the  Company's  Corporate
Secretary  at  2113 Florida
Boulevard, Neptune Beach, Florida 32266.

Compensation Committee Interlocks and Insider Participation

     Mr. Ceiley serves as the Company's chief executive officer.
He does not receive any compensation for his service as chief
executive officer.



Director Compensation

     None of the director nominees were employees of the Company
during the fiscal year ended December 31, 2003. Mr. Conzen served
as a full-time paid consultant to the Company in 2002 and through
April 2003. In order to attract and retain highly qualified
directors through an investment interest in the Company's future
success, the Company enacted, in l985, a non-qualified Stock
Option Plan for Non-Employee Directors (the "Directors' Plan"),
which was used to compensate directors until January 2002.  Due
to the expiration of the Directors' Plan in 2002, the Company
paid $10,000 cash to each director in 2003 as compensation for
their services.

     In addition, directors who are not employees of the Company
receive a fee of $500 for each Board of Directors' meeting
attended.  No fees are awarded to directors for attendance at
meetings of the Audit or Executive Compensation Committees of the
Board of Directors.

Certain Relationships and Related Transactions

     During part of 1999 and all of fiscal year 2000 and again
from October 2001 to April 2003, Mr. Conzen  was a member of the
Company's Office of the President, which was the two-person body
responsible for management of the Company. As a full-time
consultant, Mr. Conzen received $12,500 plus expenses per month
for these services. Mr. Conzen was paid a total of $58,667 plus
expenses for consulting services during 2003. In addition, in
November 1999 the Board of Directors granted Mr. Conzen an option
to purchase 25,000 shares of the Company's Common Stock at an
exercise price of $2.00 per share as an incentive to maximize the
Company's profitability. The price of the Company's stock on the
date of this grant was $1.13.1500  N. Lakeview Avenue, Anaheim, California 92807.

PROPOSAL 1:  ELECTION OF DIRECTORS

      The following provides certain information with respect  to
each  of our directors all of whom are nominated for election  at
the  20042006  Annual Meeting to serve as directors  until  the  20052007
Annual  Meeting  and  until  their  successors  are  elected  and
qualified.  Mr.  Catanzaro  and Mr. Means  were  elected  by  the
shareholders  at  the 1999 Annual Meeting.  Mr.  Ceiley  and  Mr.
Conzen  were appointed to the Board in February 1998 and  elected
by the shareholders at the 1998 Annual Meeting. Should any one or
more of the nominees become unavailable to accept nomination  for
election as a director, the enclosed proxy will be voted for such
other  person or persons as the Board of Directors may recommend,
unless the Board reduces the number of directors.

Name                Business Experience and Age
- ------------------------------------------------

Stephen Catanzaro   Controller  of Allied Business Schools,  Inc.
                    since April 2004.  Chief Financial Officer of
                    V&M  Restoration, Inc., a restoration company
                    from  September 2002 to February 2004.  Chief
                    Financial Officer of Bisco, a distributor  of
                    fasteners and components, from September 1995
                    to March 2002.  Age 51.53.

Glen F. Ceiley      Mr. Ceiley servesServes as chief executive officerChairman of the Board of  the
                    Company.  He has also been the    President  and  Chief   Executive
                    Officer  of Bisco since 1973. Mr. Ceiley is also aFormer director
                    of  Data  I/O  Corporation,  a  publicly-
                        heldpublicly-held
                    company  engaged  in  the  manufacturing   of
                    electronic equipment.     Age 58.60.

Jay Conzen          President of Old FashionFashioned Kitchen, Inc.
                    since  April 2003.  Principal of  Jay  Conzen
                    Investments (investment advisor) from October
                    1992  to  April  2003.   Consultant  to   the
                    Company  from August 1999 until January  2001
                    and from October 2001 to April 2003. Age 57.59.

William L. Means    Vice  President of Information Technology  of
                    Bisco   since   2001.   Vice   President   of
                    Corporate Development of Bisco since November 1997. Director of
                        Management Information Systems at Bisco from  19891997  to
                    1997.2001.  Age 61.62.





Vote Required

      Under  the Florida Business Corporation Act, directors  are
elected by a plurality of the votes cast.  Therefore, abstentions
and broker non-votes have no effect under Florida law.

The Board of Directors recommends a vote FOR the election of each
of the nominees.

Executive Officers

     The following person other than Mr. Ceiley, was an executive officer of the Company
as of December 31, 2003:28, 2005:

 Edward B. Alexander Chief  Operating  Officer  from  April  2003
                     through  present.  President of the  Company
                     sincefrom  April  2003.
                        He was2003 to April 2006.   Executive
                     Vice   President   of   the   Company   from
                     September   1999  to  April   2003, and was2003.    Chief
                     Financial  Officer of the Company from  1990
                     to  April  2003.   In addition, Mr. Alexander
                        servedServed on  the  Company's
                     Board  of  Directors from May 1996  to  July
                     1999.   Certified  Public  Accountant  since
                     1982.  Age 45.

Significant Employee

Stephen C. Travis       Director47.

     As of FinanceApril 4, 2006, Edward B. Alexander no longer serves as
an  executive  officer of the Company since May
                        2003. ControllerCompany.  Glen F. Ceiley  currently
serves as Chairman and Chief Executive Officer of the Company from April
                        2002 to May 2003.  Director of Finance for
                        International Transport Logistics, Inc. from
                        March 2001 to March 2002.  Controller of
                        Florida Rock Industries, Inc. from June 1999
                        to March 2001 and Vice President of Finance
                        and Administration prior to June 1999.
                        Certified Public Accountant since 1984.  Age 48.Company.

    There  are  no  family  relationships  between  any  of   the
nominees and executive officers of the Company.


    Our  officers  and directors have neither been  convicted  in
any criminal proceeding during the past five years nor parties to
any  judicial or administrative proceeding during the  past  five
years  that  resulted  in  a  judgment,  decree  or  final  order
enjoining   them  from  future  violations  of,  or   prohibiting
activities  subject  to, federal or state securities  laws  or  a
finding  of any violation of federal or state securities  law  or
commodities  law.  Similarly, no bankruptcy petitions  have  been
filed  by  or  against any business or property  of  any  of  our
directors or officers, nor has any bankruptcy petition been filed
against  a  partnership or business association  in  which  these
persons were general partners or executive officers.

Certain Relationships and Related Transactions

     None.

Audit Committee Financial Expert

     See   section  titled  "Board  of  Directors  and   Standing
Committees"  of this Proxy Statement which is herein incorporated
by reference.

SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

      Section  16(a) of the Securities Exchange Act of  1934,  as
amended  (the "Exchange Act"), requires certain officers  of  the
Company and its directors, and persons who beneficially own  more
than  ten percent of any registered class of the Company's equity
securities,  to file reports of ownership in such securities  and
changes  in ownership in such securities with the Securities  and
Exchange Commission and the Company.

      Based  solely  on  a  review of  the  reports  and  written
representations  provided to the Company by the above  referenced
persons,  the Company believes that during 2003fiscal year  2005  all
filing   requirements  applicable  to  its  reporting   officers,
directors  and  greater than ten percent beneficial  owners  were
timely satisfied.

FINANCIAL CODE OF ETHICAL CONDUCT

     The   Company  has  adopted  a  financial  code  of   ethics
applicable  to  the  Company's  senior  executive  and  financial
officers.   You  may  receive, without  charge,  a  copy  of  the
Financial  Code  of Ethical Conduct by contacting  our  Corporate
Secretary at 1500 N. Lakeview Avenue, Anaheim, California 92807.





REPORT OF THE AUDIT COMMITTEE

      On  August  24,  2005, Deloitte & Touche  LLP  ("Deloitte")
resigned  as  the Company's accountants.  There were  no  adverse
opinions, disagreements or reportable events as defined  in  Item
304(a)   of  Regulation  S-K  with  Deloitte  related  to   their
resignation.   On  September 19, 2005,  the  Board  approved  the
Company's change in independent accountants and in October  2005,
the Company engaged Squar, Milner, Reehl & Williamson LLP ("Squar
Milner") to serve as the Company's independent accountants.

      The  Audit  Committee  has reviewed the  audited  financial
statements of the Company for the year ended December  31, 2003,28,  2005,
and  has  met  with  management and Deloitte & Touche LLP,Squar Milner,  the  Company's
independent   auditors,   to  discuss   the   audited   financial
statements.

      The  Audit  Committee  received from Deloitte & Touche LLPSquar  Milner  written
disclosures regarding their independence and the letter  required
by Independence Standards Board Standard No. 1, and has discussed
with  Deloitte & Touche LLPSquar  Milner  their independence. In connection  with  its
review, the Audit Committee has also discussed with Deloitte & Touche LLPSquar  Milner
the  matters required to be discussed by U.S. Auditing  Standards
Section 380 - Communications with Audit Committees.

      The  Audit  Committee has discussed with Squar  Milner  the
matters  required  to  be  discussed by SAS61  (Certification  of
Statements on Auditing Standards) as modified or supplemented.

      Based  on  its  review and discussions with management  and
Deloitte & Touche LLP,Squar  Milner, the Audit Committee recommended to  the  Board  of
Directors  that the audited financial statements be  included  in
the  Company's Annual Report to Shareholders for the  year  ended
December 31, 2003.28, 2005.

               Respectfully Submitted,

               Jay Conzen, Chairman
               Steve Catanzaro
               William Means


PRINCIPAL ACCOUNTING FEES AND SERVICES


Audit Fees

      The  aggregate fees billed by Squar Milner for  the  fiscal
year ended December 28, 2005 and by Deloitte & Touche LLP ("Deloitte")for the
fiscal  year  ended December 29, 2004, for professional  services
rendered   for  the  audit  of  the  Company's  annual  financial
statements for the fiscal years
ended December 31, 2003 and January 1, 2003  and  for  the  reviews of  the  financial  statements
included  in  the Company's Quarterly Reports on  Form  10-Q  for
those fiscal years were $71,500$61,000 and $57,500,$91,500, respectively.

Audit-Related Fees

      The  aggregate fees billed by Squar Milner for  the  fiscal
year ended December 28, 2005 and by Deloitte & Touche LLP for professional
services renderedthe
fiscal year ended December 29, 2004, for audit-related fees  for the fiscal years
ended December 31, 2003were
$0  and  January 1, 2003 were $8,000 and
$6,100,$8,500,  respectively. These fees were  billed  for  the
performance of an audit of the Company's Employee Benefit  (401k)
Plan.

Tax Fees

      The  aggregate fees billed by Squar Milner for  the  fiscal
year ended December 28, 2005 and by Deloitte & Touche LLP for the
fiscal  year  ended December 29, 2004, for professional  services
rendered for tax services for the fiscal years ended
December 31, 2003were $10,000 and January 1, 2003 were $9,500 and $11,990,$10,160, respectively.

All Other Fees

      The aggregateThere  were  no other fees billed by Squar Milner  for  the
fiscal  year ended December 28, 2005 or by Deloitte & Touche  LLP
for  the  fiscal  year  ended December  29,  2004,  for  services
rendered to the Company, other than the services described above, for the
fiscal years ended December 31, 2003 and January 1, 2003 were
$1,000 and $4,210, respectively.above.

      The Audit Committee has considered whether the provision of
non-audit  services is compatible with maintaining the  principal
accountant's independence.

Audit Committee Pre-Approval

      See  section titled "Audit Committee Pre-Approval  Policies
and   Procedures"  of  this  Proxy  Statement  which  is   herein
incorporated by reference.

EXECUTIVE PAY






     The summary compensation table below sets forth a summary of
the  compensation earned by the Company's named executive officer
during fiscal years 2003, 2004 and 2005.

                   SUMMARY COMPENSATION TABLE

                                  Annual Compensation
                                  -------------------
Name and Principal All other Position Year Salary ($) Bonus ($) (2) Compensation ($)(1) Compensation($)(1) - -------------------------- ---- ---------- ------------- ------------------- Edward B. Alexander (3) 2005 $134,300 $ 5,300 $1,670 President 2004 125,950 19,555 1,514 Chief Operating 2003 125,559 -0- 1,554 Officer
Explanation of Columns: (1) All Other Compensation: All other compensation that does not fall under any of the aforementioned categories. Amounts shown are contributions to the Company's 401(k) Plan on behalf of Mr. Alexander to match a portion of his deferred contributions in 2005, 2004 and 2003. (2) A portion of Mr. Alexander's bonus was earned in 2005, but paid in 2006. (3) Mr. Alexander is an employee-at-will of the Company and does not have an employment contract. Option Grants There were no options to purchase the Company's Common Stock granted to the named executive officer in fiscal year 2005. Option Exercises and Year-End Option Value The following table sets forth information concerning the number and value of unexercised options to purchase the Company's Common Stock held by the named executives at fiscal year end. Aggregated Option Exercises in Last Fiscal Year, and Year-End Option Value Number of Securities Value of Unexercised Underlying Unexercised In-The-Money Option Options at Fiscal Year at Fiscal Year-End End (#) ($)(1) ---------------------- -------------------- Shares Acquired On Exercise Value Exercisable/ Exercisable/ (#) Realized ($) Unexercisable Unexercisable --------- ------------ --------------- ------------------- Edward B. Alexander 0 $0 7,500/0 $300/0 (1) Market value of underlying securities at year end ($1.59 at December 28, 2005, the last trading day of the Company's fiscal year), minus the various exercise prices. REPORT OF THE EXECUTIVE COMPENSATION COMMITTEE December 12, 2005 The Executive Compensation Committee (the "Committee"), currently consisting of Directors Ceiley and Means, uses the following objectives as guidelines for its executive compensation decisions: to provide a compensation package that will attract, motivate and retain qualified executives; to ensure a compensation mix that focuses executive behavior on the fulfillment of annual and long-term business objectives; and to create a sense of ownership in the Company that causes executive decisions to be aligned with the best interests of the Company's shareholders. The Company's compensation package in 20032005 for its executive officers consisted of base salary only.and performance bonuses. The Committee determined salary levels for the Company's executive officers. General Compensation Policies In general, base salary levels are set at the minimum levels believed by the Company's executive officers to be sufficient to attract and retain qualified executives when considered with the other components of the Company's compensation structure. The Committee adjusts salary levels for executive officers based on achievement of specific annual performance goals, including personal, departmental and overall Company goals depending upon each officer's specific job responsibilities. The Committee also uses its subjective judgment, based upon such criteria as the executive's knowledge of and importance to the Company's business, willingness and ability to accomplish the tasks for which he or she was responsible, professional growth and potential, the Company's operating earnings and an evaluation of individual performance, in making salary decisions. Compensation paid to executive officers in prior years is also taken into account. No particular weighting is applied to these factors. The Committee may determine that the Company's financial performance and individual achievements merit the payment of annual bonuses. In recent years, no bonuses have been awarded to any officersThe Company instituted a bonus program for management of the Company beginning in 2003, based on a percentage of the earnings from operations of the Company. The Committee determines stock option grants to the executive officers. The Committee determines annual stock option grants to other employees based on recommendations of the President. Stock options are intended to encourage key employees to remain employed by the Company by providing them with a long term interest in the Company's overall performance as reflected by the market price of the Company's Common Stock. No stock option grants were made in 2003.2005. The Committee will consider any federal income tax limitations on the deductibility of executive compensation in reaching compensation decisions and will seek shareholder approval where such approval will eliminate any limitations on deductibility. CEO Compensation Mr. CeileyAlexander serves as chief executive officerPresident and Chief Operating Officer of the Company. He is not employedHis compensation consists of base salary and a performance bonus, which are approved by the CompanyCompensation Committee. Upon being promoted to President and is not paid for his service as chief executive officer. From January throughChief Operating Officer in April 2003, Mr. Alexander's base salary was set based on several factors, including industry competitors for the position, the Company's day-to-day executive managementsize relative to such industry averages and the Company's historical and projected profitability. Effective April 2005, Mr. Alexander's salary was performed by an Office of the President, made up of executive officer Edward B. Alexander and director Jay Conzen. Mr. Conzen's compensation of $12,500 per month was establishedincreased to $133,400 based on the following factors, with no particular weighting: the Committee's subjective valuationCompany's profit performance versus other publicly-held restaurant companies, and considering increases in general cost of Mr. Conzen's service to the Company, the fact that he would not receive any regular employee benefits, such as health and life insurance from the Company, the full-time effort required, the amount of time Mr. Conzen would be required to spend away from his home in California, the salaries paid to other membersliving. The Compensation Committee has developed a performance incentive program based on a percentage of the Office of the President, the monthly feeCompany's earnings from operations, paid by the Company for Mr. Conzen's service in 1999quarterly and 2000 and consulting fees generally earned by Mr. Conzen.at year-end. In April 2003, Mr. Conzen left the Company as a consultant, and the Office of the President was disbanded. At that time,2005, Mr. Alexander earned a total of $5,300 under this program, a portion of which was appointed president and chief operating officer of the Company. The salary and compensation of Mr. Alexander was established by the committee based on considerations discussed abovepaid in the section entitled "General Compensation Policies."2006. Respectfully Submitted, Glen F. Ceiley William Means EXECUTIVE PAYCompensation Committee Interlocks and Insider Participation The summary compensation table below sets forth a summarymembers of the compensation earned byCompensation Committee are Directors Ceiley and Means. Until 2004, Mr. Ceiley served as the Company's named executive officers during fiscal years 2001, 2002 and 2003. SUMMARY COMPENSATION TABLE Annual Compensation Long-Term Compensation ------------------- ---------------------- Securities Name and Principal Underlying All Other Position Year Salary ($) Options Compensation($)(1) - -------------------------- ---- ------------- ------------- ------------------- Glen F. Ceiley (2) 2003 $-0- -0- $-0- Principal Executive 2002 -0- 5,051 -0- Officer 2001 -0- 1,800 -0- Jay Conzen (3) 2003 $-0- -0- $46,667 Office of the President 2002 -0- 5,051 150,000 2001 -0- 1,800 47,200 Edward B. Alexander (4) 2003 $125,559 -0- $1,554 President 2002 116,203 -0- 1,509 Chief Operating 2001 115,615 400 1,428 Officer
Explanation of Columns: (1) All Other Compensation: All other compensation that does not fall under any of the aforementioned categories. Amounts shown are contributions to the Company's 401(k) Plan on behalf of Mr. Alexander to match a portion of his deferred contributions in 2003, 2002 and 2001. All amounts shown for Mr. Conzen represent consulting fees paid. (2) Mr. Ceiley serves as principal executive officer for purposesexecution of signingSEC reports and certifications, but did not participate in the Company's filings withday to day operations of the SEC. He isCompany. Mr. Ceiley did not compensatedreceive any compensation for his service as principal executive officer. (3)officer and has not participated in any related party transactions required to be disclosed under Item 404 of Regulation S-K. Mr. Conzen wasMeans is not currently nor has he ever been an independent consultant to the Company, not an employee. He was paid consulting fees, rather than a salary. (4) Mr. Alexander is an employee-at-willemployee of the Company, and doeshas not haveparticipated in any related party transactions (described in Item 404 of Regulation S-K). Director Compensation None of the director nominees were employees of the Company during the fiscal year ended December 28, 2005. In order to attract and retain highly qualified directors through an employment contract. Option Grants There were no options to purchaseinvestment interest in the Company's Commonfuture success, the Company enacted, in l985, a non-qualified Stock grantedOption Plan for Non- Employee Directors (the "Directors' Plan"), which was used to compensate directors until January 2002. Due to the named executive officers in 2003. Option Exercises And Year-End Option Value The following table sets forth information concerning the number and value of unexercised options to purchase the Company's Common Stock held by the named executives at fiscal year end. Aggregated Option Exercises in Last Fiscal Year, and Year-End Option Value Number of Securities Value of Unexercised Underlying Unexercised In-The-Money Option Options at Fiscal Year at Fiscal Year-End End (#) ($)(1) ---------------------- -------------------- Shares Acquired On Exercise in Value Exercisable/ Exercisable/ 2003 (#) Realized ($) Unexercisable Unexercisable ------------ ------------ -------------------- ------------------- Edward B. Alexander 0 $0 23,000/100 $0/0 Glen F. Ceiley 0 $0 0/0 $0/0 Jay Conzen 0 $0 25,000/0 $0/0
(1) Market value of underlying securities at year end ($.80 at December 31, 2003, the last trading dayexpiration of the Company's fiscal year), minusDirectors' Plan in 2002, the various exercise prices.Company paid $10,000 cash to each director in 2006 as compensation for their services. In addition, directors who are not employees of the Company receive a fee of $500 for each Board of Directors' meeting attended. No fees are awarded to directors for attendance at meetings of the Audit or Executive Compensation Committees of the Board of Directors. COMPARISON OF FIVE-YEAR CUMULATIVE TOTAL RETURN The SEC requires a five-year comparison of stock price performance of the Company with both a broad equity market index and a published industry index or peer group.line-of-business index. The Company's total return compared with the NASDAQ Market Index and the Media General Restaurant Index is shown on the following graph. This graph assumes that $100 was invested on January 1, 19983, 2001 and all dividends were reinvested in the Company's Common Stock and the other indices. Each of the indexes is weighted on a market capitalization basis at the time of each reported data point. (Graph Omitted) 12/30/1998 12/29/1999 1/3/2001 1/2/2002 1/1/2003 12/31/2003
FAMILY STEAK HOUSES OF FLORIDA $100.00 106.61 79.96 106.61 52.24 85.29 MG GROUP INDEX $100.00 176.37 110.86 88.37 61.64 92.681/3/2001 1/2/2002 12/31/2002 12/31/2003 12/29/2004 12/28/2005 EACO CORPORATION 100.00 133.33 65.33 106.67 97.33 212.00 RESTAURANTS 100.00 101.41 80.95 111.45 136.12 144.82 NASDAQ MARKET INDEX $100.00 95.12 90.58 92.24 74.06 102.27100.00 79.71 55.60 83.60 90.63 92.62
PROPOSAL 2: APPROVAL OF AMENDMENT TO ARTICLES OF INCORPORATION TO EFFECT NAME CHANGE The Company seeks shareholder approval to amend its Articles of Incorporation to change its name from Family Steak Houses of Florida, Inc. to RIM of Florida, Inc. The primary reason for the proposed name change is to better clarify the Company's identity as a result of its agreement to terminate its franchise agreement. The Company's business has primarily been owning and operating Ryan's Family Steak House restaurants (for purposes of this Proposal 2, "Ryan's"). In December 2003, the Company entered into an agreement to terminate its Ryan's franchise agreement by June 2005 which requires the Company to convert its restaurants to a new name and logo beginning in the first quarter of 2004. The Company has begun converting its restaurants to one of two new family-buffet dining concepts known as either "Whistle Junction" or "Florida Buffet." The Company's business plan includes operating restaurants under both the Whistle Junction and the Florida Buffet names. The format of these new dining concepts is no longer the traditional steak house, as our existing company name implies. Accordingly, the Company believes that a change in the Company's name is in line with the Company's transformation and will better reflect the Company's new business plan. Vote Required This name change requires that the Company's Articles of Incorporation be amended. Approval of the proposal to amend the Articles of Incorporation to change the Company's name to RIM of Florida, Inc., will require the affirmative vote of the holders of a majority of the outstanding shares of the Company's Common Stock on April 23, 2004. Therefore, abstentions and broker non-votes will have the same effect as votes against the proposal. The Board of Directors unanimously recommends a vote FOR the proposal to amend the Company's Articles of Incorporation to change the Company's name to RIM of Florida, Inc.[CHART OMITTED] INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS The Audit Committee has not yet recommended to the Board of Directors an accounting firm to be engaged as independent auditor for the Company for 20042006 but will do so at a later date. The firm Deloitte & Touche LLP,Squar Milner, served as the independent accountant for the Company for the fiscal year ending December 31, 2003.28, 2005. That firm has served as the auditor for the Company since 1991.October 2005. Representatives of Deloitte & Touche are expected to be present at the annual meeting of shareholders where they will have an opportunity to make a statement if they desire to do so and will be available to respond to appropriate questions. OTHER MATTERS The Board of Directors is not aware of any other matters to come before the meeting. If any other business should come before the meeting, the persons named on the enclosed proxy will have discretionary authority to vote such proxy in accordance with their best judgment. Any other matter which may be considered at the Annual Meeting will be approved if the votes cast favoring the matter exceed the votes opposing the matter, unless a greater number of affirmative votes or voting by classes is required by Florida law or the Company's Articles of Incorporation. Therefore, abstentionsAbstentions and broker non-votes have no effect under Florida law. SHAREHOLDER PROPOSALS Proposals of shareholders to be presented at the 20052007 Annual Meeting of Shareholders must be received by the Company (addressed to the attention of the Corporate Secretary) not later than December 29, 200428, 2006 to be considered for inclusion in the Company's proxy materials relating to that meeting. To be submitted at the meeting, any such proposal must be a proper subject for shareholder action under the laws of the State of Florida, and must otherwise conform to applicable regulations of the Commission. Excluding shareholder proposals to be included in the Company's proxy materials, a shareholder is required to comply with the Company's Bylaws with respect to any proposal to be brought before an annual meeting. The Bylaws generally require that each written proposal be delivered or mailed to and received by the Secretary of the Company at its principal executive office not less than sixty (60) days nor more than ninety (90) days prior to the anniversary date of the prior year's Annual Meeting, among other conditions. The notice must include certain additional information as specified in the Bylaws. The Company may solicit proxies in connection with next year's Annual Meeting which confer discretionary authority to vote on any shareholder proposals of which the Company does not receive notice by March 15, 2005.2007. Proposals should be sent to the Company's headquartersexecutive office to the attention of the Corporate Secretary. SOLICITATION OF PROXIES This proxy is solicited by the Board of Directors of the Company. The cost of soliciting proxies will be borne by the Company. Following the original mailing of the proxy solicitation material, regular employees of the Company may solicit proxies by mail, telephone, facsimile and other electronic means. The Company may request brokerage houses and other nominees or fiduciaries to forward copies of its proxy material and Annual Report to beneficial owners of stock held in their names, and the Company will reimburse them for reasonable out-of-pocket expenses incurred with respect to such action. DELIVERY TO SHAREHOLDERS SHARING ADDRESS Only one Proxy Statement and Annual Report has been delivered to multiple shareholders sharing an address unless the Company has received contrary instructions from one or more of the shareholders. The Company will promptly deliver upon written or oral request a separate copy of this Proxy Statement or the Annual Report to a shareholder at a shared address to which a single copy was sent. Shareholders residing at a shared address who would like to request an additional copy of the Proxy Statement or Annual Report now or with respect to future mailings (or to request to receive only one copy of the Proxy Statement or Annual Report if multiple copies are being received) may write or call the Company's Corporate Secretary at 2113 Florida Boulevard, Neptune Beach, FL 32266, (904) 249-4197.1500 N. Lakeview Avenue, Anaheim, California 92807, (714) 876-2490. By Order of the Board of Directors Glen F. Ceiley Chairman of the Board Date: May 3, 2004 Appendix A FAMILY STEAK HOUSES OF FLORIDA, INC. AUDIT COMMITTEE CHARTER ADOPTED BY THE BOARD OF DIRECTORS MAY 10, 2000 ROLE AND INDEPENDENCE The audit committee of the board of directors assists the board in fulfilling its responsibility for the safeguarding of assets and oversight to the quality and integrity of the accounting, auditing and reporting practices of the company and such other duties as directed by the board. The membership of the committee shall consist of at least three directors who are generally knowledgeable in financial and auditing matters, including at least one member with accounting or related financial management expertise. Each member shall be free of any relationship that, in the opinion of the board, would interfere with their individual exercise of independent judgment. The committee is expected to maintain free and open communication (including private executive sessions at least annually) with the independent accountants, and management of the company. In discharging this oversight role, the committee is empowered to investigate any matter brought to its attention, with full power to retain outside counsel or other experts for this purpose. This charter shall be reviewed and updated annually. RESPONSIBILITIES The audit committee's primary responsibilities include: - Primary input into the recommendation to the board for the selection and retention of the independent accountant who audits the financial statements of the company. In so doing, the committee will discuss and consider the auditor's written affirmation that the auditor is in fact independent, will discuss the nature of the audit process, receive and review all reports and will provide to the independent accountant full access to the committee (and the board) to report on any and all appropriate matters. - Review of financial statements (including quarterly reports) with management and the independent auditor. It is anticipated that these discussions will include quality of earnings, discussions of significant items subject to estimate, consideration of the suitability of accounting principle, review of highly judgmental areas, audit adjustments whether or not recorded and such other inquiries as may be appropriate. - Discussion with management and the auditors of the quality and adequacy of the company's internal controls. - Discussion with management of the status of pending litigation, taxation matters and other areas of oversight to the legal and compliance area as may be appropriate. - Reporting on audit committee activities to the full board and issuance annually of a summary report (including appropriate oversight conclusions) suitable for submission to the shareholders in the company's annual proxy statement. Proxy Card FAMILY STEAK HOUSES OF FLORIDA, INC. 2113 Florida Boulevard, Neptune Beach, Florida 32266 PROXY SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS The undersigned hereby appoints Patrick A. Fekula, and Edward B. Alexander (the "Proxy Agents"), and each of them individually, the attorneys, agents, and proxies of the undersigned with full power of substitution, to vote all of the shares of stock of Family Steak Houses of Florida, Inc.(the "Company"), owned by the undersigned on April 23, 2004 at the 2004 Annual Meeting of Shareholders of the Company, to be held at 10:00 a.m. on June 17, 2004 and any adjournment thereof, with all powers that the undersigned would possess if personally present, pursuant to the following directions: (Continued and to be signed on the reverse side) -------------------------------------------------------------------- FOLD AND DETACH HERE THIS PROXY WHEN PROPERLY EXECUTED WILL BE VOTED IN Please mark here for THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED. IF Address Change or [ ] NO DIRECTION IS GIVEN, THIS PROXY WILL BE VOTED Comments SEE REVERSE FOR PROPOSALS 1, 2 and 3. SIDE 1. ELECTION OF DIRECTORS Nominees: 01 Stephen Catanzaro, 02 Glen F. Ceiley 03 Jay Conzen, and 04 William L. Means FOR all nominees listed WITHHOLD AUTHORITY (except as marked to to vote for all the contrary) nominees listed [ _ ] [ _ ] (To withhold authority to vote for any individual nominee, strike out that nominee's name.) 2. PROPOSAL TO AMEND THE COMPANY'S ARTICLES OF INCORPORATION TO CHANGE THE COMPANY'S NAME. [ ] FOR [ ] AGAINST [ ] ABSTAIN 3. OTHER MATTERS FOR Proxy Agents to vote in their discretion as to such other matters as may properly come before this meeting. AGAINST for Proxy Agents to vote in their discretion as to such other matters as may properly come before the meeting. [ ] FOR [ ] AGAINST [ ] ABSTAIN ---------------------------------------------- THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR PROPOSALS 1, 2 AND 3. ---------------------------------------------- The undersigned hereby revokes any proxy heretofore given with respect to said Stock and acknowledges receipt of the Notice of Annual Meeting and Proxy Statement dated May 3, 2004. - --------------------------------------- Signature(s) - --------------------------------------- Title of Capacity - --------------------------------------- Dated -------------------------, 2004 IMPORTANT: Please date this proxy and sign exactly as your name or names appear(s) hereon. If the shares are held jointly, signatures should include both names. Personal representatives, executors, guardians, and others signing in a representative capacity should give full title. PLEASE RETURN PROMPTLY IN THE ACCOMPANYING ENVELOPE. - -------------------------------------------------------- FOLD AND DETACH HERE 27, 2006