SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
Current Report Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported) January 24, 2000
Rainforest Cafe, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Minnesota
(State of Other Jurisdiction of Incorporation)
000-27366 41-1779527
(Commission File Number) (I.R.S. Employer Identification No.)
720 South Fifth Street
Hopkins, Minnesota 554343
(Address of Principal Executive Offices) (Zip Code)
(612) 945-5400
(Registrant's Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
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Item 5. Other Events.
On January 24, 2000, the Registrant and Lakes Gaming, Inc. announced
that they will not proceed with their proposed merger transaction and have
entered into a Mutual Termination Agreement terminating their merger agreement.
The termination was mutually agreed upon, and no payments will be made by either
party. The $2 million termination fee from the Registrant will continue to be
payable to Lakes if the Registrant consummates a takeover proposal within six
months.
The Mutual Termination Agreement and a copy of the joint press release
issued by the Registrant and Lakes on January 24, 2000 relating to the
termination of the merger transaction have been filed as exhibits to this Report
and are incorporated herein by reference. The foregoing summary is qualified in
its entirety by reference to such exhibits.
Item 7. Financial Statements and Exhibits
(a) Financial Statements of Businesses Acquired:
Not required.
(b) Pro Forma Financial Information:
Not required.
(c) Exhibits:
See Exhibit Index on page following Signatures.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
RAINFOREST CAFE, INC.
Date: January 25, 2000 By /s/ Stephen Cohen
Stephen Cohen
General Counsel &
Sr. Vice President
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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
EXHIBIT INDEX
to
FORM 8-K
RAINFOREST CAFE, INC.
Exhibit Number Exhibit Description
10 Mutual Termination Agreement dated January 24, 2000, by
and among Rainforest Cafe, Inc., Lakes Gaming, Inc. and RFC
Acquisition Co.
99 Joint Press Release dated January 24, 2000.
EXHIBIT 10
MUTUAL TERMINATION AGREEMENT
This Mutual Termination Agreement (this "Agreement") is made and
entered into as of January 24, 1999, by and among Rainforest Cafe, Inc., a
Minnesota corporation (the Company"), Lakes Gaming, Inc., a Minnesota
corporation ("Purchaser"), and RFC Acquisition Co., a Minnesota corporation and
wholly owned subsidiary of Purchaser ("Merger Sub") .
WITNESSETH
WHEREAS, each of the Company, Purchaser and Merger Sub are parties to
that certain Agreement and Plan of Merger, dated as of December 22, 1999 (the
"Merger Agreement"), pursuant to which Merger Sub would merge (the "Merger")
with and into the Company in accordance with the laws of the State of Minnesota,
the separate existence of Merger Sub would thereupon cease, and the Company, as
the surviving corporation in the Merger, would continue its corporate existence
under the laws of the State of Minnesota as a subsidiary of Purchaser;
WHEREAS, Section 7.1. of the Merger Agreement provides that the Merger
Agreement may be terminated at any time prior to the Effective Time, whether
before or after approval of the shareholders of the Company and the shareholders
of Purchaser, by mutual written consent of Purchaser and the Company; and
WHEREAS, the Special Committee of the Company and the Board of
Directors of Purchaser deem it advisable and in the best interest of each of the
Company and Purchaser and their respective shareholders that the Merger
Agreement be terminated on the terms and subject to the conditions set forth
herein.
NOW, THEREFORE, in consideration of the foregoing, and other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto agree as follows:
1. The Merger Agreement is hereby mutually terminated effective as of
the date hereof, pursuant to Section 7.1(a) of the Merger Agreement.
2. Notwithstanding the foregoing termination, the parties hereto
reaffirm the validity and effectiveness of Section 7.2(a) of the Merger
Agreement.
3. Notwithstanding the foregoing termination, but in consideration
thereof, the parties hereto agree that for a period of six (6) months from the
date hereof, if the Company consummates any transaction that would otherwise
have constituted a Company Takeover Proposal, it shall promptly, but in no event
later than two days after consummation of such transaction, pay Purchaser a fee
equal to $2,000,000, payable by wire transfer of same day funds. The Company
acknowledges that the agreement contained in this Section 3 is an integral part
of this Agreement and that, without this agreement, Purchaser would not enter
into this Agreement.
<PAGE>
4. All costs and expenses incurred in connection with the Merger
Agreement or this Agreement shall be paid by the party incurring such costs or
expenses.
5. This Agreement may be executed in one or more counterparts, each of
which together be deemed an original, but all of which together shall constitute
one and the same instrument.
6. This Agreement embodies the entire agreement and understanding of
the parties hereto in respect of the subject matter contained herein. There are
no restrictions, promises, representations, warranties, covenants, or
undertakings, other than those expressly set forth or referred to herein. This
Agreement supersedes all prior agreements and the understandings between the
parties with respect to such subject matter.
7. In case any provision in this Agreement shall be held invalid,
illegal or unenforceable in a jurisdiction, such provision shall be modified or
deleted, as to the jurisdiction involved, only to the extent necessary to render
the same valid, legal and enforceable, and the validity, legality and
enforceability of the remaining provisions hereof shall not in any way be
affected or impaired thereby nor shall the validity, legality or enforceability
of such provision be affected thereby in any other jurisdiction.
8. The parties hereto agree that irreparable damage would occur in the
event that any of the provisions of this Agreement were not performed in
accordance with their specific terms or were otherwise breached. Accordingly,
the parties further agree that each party shall be entitled to an injunction or
restraining order to prevent breaches of this Agreement and to enforce
specifically the terms and provisions hereof in any court of the United states
or any state having jurisdiction, this being in addition to any other right or
remedy to which such party may be entitled under this Agreement, at law or in
equity.
9. Capitalized terms used herein, but not otherwise defined herein,
have the meanings ascribed to such terms in the Merger Agreement.
<PAGE>
IN WITNESS WHEREOF, Purchaser, Merger Sub and the Company have caused
this Agreement to be signed and delivered by their respective duly authorized
officers as of the date first above written.
LAKES GAMING, INC.
By: /s/ Timothy J. Cope
Name: Timothy J. Cope
Title: Chief Financial Officer
RFC ACQUISITION CO.
By: /s/ Timothy J. Cope
Name: Timothy J. Cope
Title: Chief Financial Officer
RAINFOREST CAFE, INC.
By: /s/ Kenneth W. Brimmer
Name: Kenneth W. Brimmer
Title: President
EXHIBIT 99
RAINFOREST CAFE AND LAKES GAMING
TERMINATE MERGER PLANS
Minneapolis, January 24, 2000 - Rainforest Cafe, Inc. (NASDAQ: RAIN) and Lakes
Gaming, Inc. (NASDAQ: LACO) announced today that they will not proceed with
their proposed merger transaction and have terminated their merger agreement.
The termination was mutually agreed upon, and no payments will be made by either
party. The $2 million termination fee from Rainforest Cafe will continue to be
payable to Lakes if Rainforest Cafe consummates a takeover proposal within six
months.
Kenneth W. Brimmer, President of Rainforest Cafe and Chairman of the Special
Committee formed to consider the Rainforest/Lakes transaction, commented, "When
we considered the Rainforest/Lakes transaction, we viewed it not as a sale of
Rainforest Cafe but as a strategic revenue and earnings diversification
opportunity for our Rainforest Cafe shareholders. Our shareholders would have
owned approximately 55% of the combined company, and in that respect we were not
selling Rainforest Cafe but rather acquiring and diversifying. The combination
was expected to enhance value for Rainforest Cafe's shareholders by creating a
more diverse business and giving our shareholders the ability to participate in
what could be exceptional growth as the planned projects of Lakes are
developed."
Mr. Brimmer continued, "Unfortunately, reaction to the Rainforest/Lakes
combination has been negative, both as to the diversification and the pricing
(using current trading prices) in the transaction. Rainforest Cafe and Lakes,
therefore, have mutually decided not to pursue a combination of their
companies."
Mr. Brimmer further added, "Although our focus has been to diversify and grow
Rainforest Cafe rather than sell the company, we have had initial exploratory
conversations in response to a third party's preliminary request to consider
acquisition discussions. There is no assurance that any offer to purchase
Rainforest Cafe will be received and further there is no assurance any such
acquisition offer would be on terms and pricing acceptable to Rainforest Cafe."
Lyle Berman, Chairman of the Board of Lakes Gaming, and Chairman of Rainforest
Cafe concurred. "The Lakes offer represented a strategic opportunity for
Rainforest shareholders to participate in Lakes' expanding business plan, and to
diversify the companies' respective revenue streams. However, Lakes is unwilling
to participate in an auction for Rainforest and Lakes is not prepared to
increase its offer. Therefore, the Lakes Board recognized that termination of
the Merger Agreement would be appropriate."
<PAGE>
RAINFOREST CAFE, Inc. develops, owns and operates combination restaurant/retail
facilities offering a stimulating and entertaining rain forest theme providing
visitors with "A Wild Place to Shop and Eat"(R). There are currently 37
RAINFOREST CAFE(R) units open including 27 domestic locations and 10
international units. RAINFOREST CAFE, Inc.
common shares are traded on the NASDAQ National Market under the symbol RAIN.
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This news release (as well as information included in oral statements or other
written statements made or to be made by the Company) may contain
forward-looking statements, such as statements relating to future expansion,
that involve risks and uncertainties relating to future events. Actual events or
the Company's results may differ materially from the results discussed in the
forward-looking statements. The Company does not expect to update
forward-looking statements continually as conditions change. These risks and
uncertainties include, but are not limited to, those relating to competition,
fluctuations and changes in consumer preferences and attitudes, intellectual
property protection, development and construction activities, and results of
shareholder litigation. Investors are referred to the full discussion of risks
and uncertainties associated with forward-looking statements contained in the
Company's Form 10K filed with the Securities and Exchange Commission for the
fiscal year ended January 3, 1999.
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