SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of earliest event reported): October 22, 1999
4 KIDS ENTERTAINMENT, INC.
(Exact name of registrant as specified in its charter)
New York 0-7843 132691380
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1414 Ave of the Americas
New York, New York 10019
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212)758-7666
(Former name or former address, if changed since last report)
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Item 5. Other Events.
4 Kids Entertainment Inc. (the "Registrant"), a New York corporation, is
filing this Current Report on Form 8-K, to report that the master toy licensee
("Licensee") for Nintendo's Pokemon Property and Nintendo of America Inc.
("Nintendo") have entered into an agreement (the "Agreement") modifying certain
terms of their Merchandise License Agreement, dated as of May 14, 1998. Leisure
Concepts, Incorporated, a wholly-owned subsidiary of the Registrant, is
Nintendo's exclusive Merchandising Licensing Agent.
Under the Agreement, the parties have agreed among other things, that
Licensee will pay a revised minimum guaranteed royalty for the period starting
January 1, 2000 and ending December 31, 2001. This revised minimum guaranteed
royalty is subject to reduction if certain conditions are not met. Because of
the conditions and contingencies contained in the Agreement, the Registrant will
only recognize revenue from the Agreement as royalties are earned and reported
by Licensee to the Registrant over the two year term beginning January 1, 2000.
Royalties reported by Licensee for the 1999 calendar year are unaffected by the
revised terms. Licensee will report all such royalties quarterly under the
Agreement. If all of the conditions under the Agreement are met and the full
amount of the minimum guaranteed royalty is paid by Licensee, Leisure Concepts'
share would be approximately $30,000,000, which would be paid in two advances,
one-half of which would be received on or before April 1, 2000 and one-half of
which would be received on or before April 1, 2001.
This information release contains forward-looking statements. Due to the
fact that the Registrant faces competition from toy companies, motion picture
studios and other licensing companies, and the uncertainty of the public's
response to the Registrant's properties, actual results or outcomes may differ
materially from any such forward-looking statements.
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Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
4 KIDS ENTERTAINMENT, INC.
Date: October 22, 1999 By:
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Name:Joseph P. Garrity
Title: EVP
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