SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D/A
Under the Securities Exchange Act of 1934
(Amendment No. 4)*
Winmark Corporation
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(Name of Issuer)
Common Stock, no par value
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(Title of Class of Securities)
908315
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(CUSIP Number)
John L. Morgan
Winmark Corporation
4200 Dahlberg Drive, Suite 100
Minneapolis, Minnesota 55422
(763) 520-8500
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(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
October 7, 2002
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(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 which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), 13d-1(f) or 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 Rule 13d-7(b) 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).
Page 1 of 9 Pages
SCHEDULE 13D
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CUSIP No. 908315 Page 2 of 9 Pages
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1 NAMES OF REPORTING PERSONS/I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
(ENTITIES ONLY)
John L. Morgan
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)(a) [X]
(b) [ ]
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3 SEC USE ONLY
----- --------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
PF
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Mr. Morgan is a citizen of the United States
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 766,000 (includes 140,000 shares purchasable upon
OWNED BY exercise of options)
EACH --------- ----------------------------------------------------
REPORTING 8 SHARED VOTING POWER
PERSON
WITH 437,000
--------- ----------------------------------------------------
9 SOLE DISPOSITIVE POWER
766,000 (includes 140,000 shares purchasable upon
exercise of options)
--------- ----------------------------------------------------
10 SHARED DISPOSITIVE POWER
437,000
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,203,000 (includes 140,000 shares purchasable upon exercise of
warrants and options)
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (SEE INSTRUCTIONS) [X]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
20.5%
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14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
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SCHEDULE 13D
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CUSIP No. 908315 Page 3 of 9 Pages
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1 NAMES OF REPORTING PERSONS/I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
(ENTITIES ONLY)
Rush River Group LLC, a Minnesota limited liability company;
FEIN: 41-1920090
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)(a) [X]
(b) [ ]
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3 SEC USE ONLY
----- --------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
WC
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Rush River Group LLC is a Minnesota limited liability company
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 420,000
OWNED BY --------- ----------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON 0
WITH --------- ----------------------------------------------------
9 SOLE DISPOSITIVE POWER
420,000
--------- ----------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
420,000
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (SEE INSTRUCTIONS) [X]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.4
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14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
OO
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SCHEDULE 13D
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CUSIP No. 908315 Page 4 of 9 Pages
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1 NAMES OF REPORTING PERSONS/I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
(ENTITIES ONLY)
Kirk A. MacKenzie
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)(a) [X]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
PF
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Mr. MacKenzie is a citizen of the United States
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 180,000 (includes 10,000 shares purchasable upon
OWNED BY exercise of options)
EACH --------- ----------------------------------------------------
REPORTING 8 SHARED VOTING POWER
PERSON
WITH 420,000
--------- ----------------------------------------------------
9 SOLE DISPOSITIVE POWER
180,000 (includes 10,000 shares purchasable upon
exercise of options)
--------- ----------------------------------------------------
10 SHARED DISPOSITIVE POWER
420,000
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
600,000 (includes 10,000 shares purchasable upon exercise of
warrants and options)
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (SEE INSTRUCTIONS) [X]
------------- ------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
10.5%
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14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
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SCHEDULE 13D
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CUSIP No. 908315 Page 5 of 9 Pages
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1 NAMES OF REPORTING PERSONS/I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
(ENTITIES ONLY)
Jack A. Norqual
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)(a) [X]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
PF
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
----- --------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Mr. Norqual is a citizen of the United States
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 119,300
OWNED BY --------- ----------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON 420,000
WITH --------- ----------------------------------------------------
9 SOLE DISPOSITIVE POWER
119,300
--------- ----------------------------------------------------
10 SHARED DISPOSITIVE POWER
420,000
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
539,300
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (SEE INSTRUCTIONS) [X]
------------- ------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.4%
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14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
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Item 1. Security and Issuer.
-------------------
This Schedule 13D (the "Statement") relates to the Common Stock, no par
value per share (the "Common Stock"), of Winmark Corporation, a Minnesota
corporation (the "Company"). The principal executive office of the Company is
located at 4200 Dahlberg Drive, Suite 100, Minneapolis, MN 55422-4837.
Item 2. Identity and Background.
-----------------------
No change.
Item 3. Source and Amount of Funds or Other Consideration.
-------------------------------------------------
From September 15, 2001 through October 7, 2002, John L. Morgan
acquired 50,836 shares in the open market using personal funds in the total
amount of approximately $224,950. Options for an additional 120,000 shares
vested on March 22, 2002. Mr. Morgan exercised options for 50,000 shares on July
29, 2002 using personal funds of $250,000. Mr. Morgan also exercised options for
50,000 shares on August 2, 2002 using personal funds of $250,000.
On May 3, 2002 options for 5,000 shares vested in Kirk A. MacKenzie's
name.
From September 15, 2001 through October 7, 2002, Jack A. Norqual
acquired 49,300 shares using personal funds in the total amount of approximately
$479,601.
Item 4. Purpose of Transaction.
----------------------
John L. Morgan, Kirk A. MacKenzie and Jack A. Norqual acquired shares
of Common Stock that are the subject of this Schedule 13D/A for investment
purposes and options to purchase shares of Common Stock have vested. The
Reporting Persons may, individually or collectively, increase their investments
in the Company through the acquisition of additional shares of Common Stock in
the open market or otherwise, subject to availability at prices deemed favorable
by them. Alternatively, they may decide to sell any or all of the shares of
Common Stock beneficially owned by them in the open market or otherwise. The
foregoing represents the range of activities presently contemplated by the
Reporting Persons. Their plans, proposals and activities are subject to change
at any time depending on, among other things, the actions of the Company's Board
of Directors, the Company's performance and conditions in the public securities
markets.
Except as set forth above, none of the Reporting Persons has any
present plans or intentions that would result in or relate to any of the
transactions described in subparagraphs (a) through (j) of Item 4 of Schedule
13D.
Item 5. Interest in Securities of the Issuer.
------------------------------------
(a) Set forth below are the shares of Common Stock of the Company
beneficially owned by each of the Reporting Persons and the percentage of the
total outstanding shares as of the date of this filing. The foregoing percentage
is based upon 5,717,197 shares of Common Stock outstanding
Page 6 of 9
on August 5, 2002, as set forth in the Company's Quarterly Report on Form 10-Q
for the quarter ended June 29, 2002.
Percentage of Total
Reporting Person No. Shares Owned Shares Outstanding
---------------- ---------------- ------------------
John L. Morgan 1,203,000(1)(2)(3) 20.5%
Rush River Group LLC 420,000 7.4%
Kirk A. MacKenzie 600,000(1)(4) 10.5%
Jack A. Norqual 539,300(1) 9.4%
----------------
(1) Includes beneficial ownership of shares held by Rush River Group LLC.
(2) Includes 17,000 shares held by Sheila Morgan, his wife, for which he
disclaims beneficial ownership.
(3) Includes 140,000 shares purchasable upon exercise of options.
(4) Includes 10,000 shares purchasable upon exercise of options.
(b) With the exception of 17,000 shares held by Sheila Morgan, his
wife, Mr. Morgan has the sole power to vote and dispose of the shares of Common
Stock which he beneficially owns. Mr. Morgan also has shared voting and
dispositive power, together with Messrs. MacKenzie and Norqual, over the shares
of the Company beneficially owned by Rush River, due to their respective
positions as members of the LLC. Rush River holds 420,000 shares of record and
shares voting and dispositive power to vote or dispose of such shares with each
of the other Reporting Persons. Each of Messrs. Morgan, MacKenzie and Norqual
disclaim any beneficial ownership of the shares held by the other persons, any
individually or in their respective capacities as members of Rush River. Mr.
Morgan disclaims beneficial ownership with respect to the 17,000 shares held by
Sheila Morgan, his wife.
(c) Mr. MacKenzie beneficially owns vested options to acquire 10,000
shares of Common Stock.
From September 15, 2001 through October 7, 2002, Mr. Norqual acquired
49,300 shares.
Purchase Price
Trade Date No. of Shares Per Share
---------- ------------- ---------
2/28/02 1,000 10.275
3/11/02 1,000 10.05
3/12/02 500 9.80
3/12/02 3,500 9.95
3/19/02 200 9.872
3/19/02 1,000 9.78
3/19/02 1,800 9.89
3/21/02 800 9.80
3/25/02 5,000 9.55
3/26/02 700 9.05
Page 7 of 9
3/26/02 1,000 9.50
3/27/02 1,200 9.57
3/27/02 300 9.47
3/27/02 700 9.50
3/27/02 800 9.60
3/27/02 1,300 9.75
3/4/02 1,000 10.35
4/2/02 1,000 9.70
4/2/02 7,000 9.60
4/3/02 2,000 9.60
8/2/02 1,100 9.60
8/2/02 1,900 9.50
8/2/02 2,000 9.49
8/2/02 2,000 9.80
8/2/02 3,000 9.50
9/16/02 2,000 10.05
9/19/02 4,500 10.00
9/20/02 500 10.00
10/7/02 500 10.00
On March 22, 2002, John L. Morgan held vested options to acquire
140,000 shares of Common Stock. He exercised options for 50,000 shares of Common
Stock on July 29, 2002 and 50,000 shares of Common Stock on August 2, 2002, for
a total of 100,000 shares of Common Stock. Mr. Morgan made the following open
market purchases since the most recent filing on Schedule 13D/A:
Purchase Price
Trade Date No. of Shares Per Share
---------- ------------- ---------
11/15/01 4,900 9.10
11/19/01 12,600 9.10
11/27/01 700 9.10
11/28/01 1,000 9.15
11/28/01 1,000 9.20
2/22/02 4,000 10.10
3/7/02 2,000 10.20
3/8/02 3,236 10.05
3/27/02 3,500 9.80
5/20/02 2,000 11.83
5/21/02 1,500 11.86
5/22/02 3,000 11.84
8/1/02 1,000 9.90
8/2/02 1,500 9.49
8/6/02 1,300 9.50
Page 8 of 9
8/6/02 200 9.79
8/13/02 2,600 10.00
8/20/02 2,800 10.00
Other than as described above, the Reporting Persons have not effected any
transactions in the securities of the Company since the most recent filing on
Schedule 13D/A.
(d) Not applicable.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships With Respect
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to Securities of the Issuer.
---------------------------
No change.
Item 7. Material to be Filed as Exhibits.
--------------------------------
None.
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: October 14, 2002
/s/ John L. Morgan
-----------------------------------
John L. Morgan, individually
Rush River Group LLC
By: /s/ John L Morgan
-----------------------------------
John L. Morgan
Its: Member
/s/ Kirk A. MacKenzie
-----------------------------------
Kirk A. MacKenzie, individually
/s/ Jack A. Norqual
-----------------------------------
Jack A. Norqual, individually
Page 9 of 9