Table of Contents
P
ROPOSAL 1
ELECTION OF DIRECTORS
The
independent members of the Board of Directors have nominated and recommend for
election as our directors the six persons named below, each of whom is a
current director of CPHC. The Board of Directors believes that each nominee
named below will be able to serve, but should a nominee be unable to serve as a
director, the persons named in the proxies have advised us that they would vote
for the election of such substitute nominee as the independent members of the
Board of Directors may propose.
Information
regarding the experience, qualifications and other attributes that qualify each
of the nominees to serve on the Companys Board is set forth below. In
addition, information as to their respective ownership of Company common stock
is set forth in the section of this proxy statement below that is captioned
under Security Ownership of Certain Beneficial Owners and Management.
PATRICK
R. CRUZEN
, age 64, has been a director since 2002.
From 1996 to present, he has been a consultant for and provided executive
recruiting services to the gaming, gaming supply and lottery industries. From
1994 to 1996, he was President and Chief Operating Officer of Grand Casinos,
Inc., then a Minnesota public company engaged in owning and managing casinos,
and from 1990 to 1994 he was Senior Vice President of Finance and
Administration of MGM Grand, Las Vegas, Nevada. During the preceding 18 years,
Mr. Cruzen was President or served as senior financial or administrative
officer for several casinos operating in Las Vegas. Mr. Cruzen is currently a
director of Majestic Star Casino, LLC and previously served on the board of
several public companies in gaming and gaming-related industries, including
serving on the board of Cash Systems Inc. from 2004 to 2008. Mr. Cruzen gained
his CPA certification in 1972 and is the designated financial expert of the
Companys Audit Committee. Mr. Cruzen provides a vital perspective to the Board
in discharging its governance responsibilities due to his background as a
seasoned manager of casino operations, as a consultant to the gaming industry,
and as an executive with a deep understanding of accounting and finance
matters.
BURTON
F. DAHLBERG
, age 78, has been a director of the
Company since 2004. Since 2003 he has been an independent commercial real
estate consultant. From 1987 to 2002, Mr. Dahlberg was President and Chief
Operating Officer of Kraus-Anderson Inc., a national firm engaged in commercial
real estate development, construction, building management, finance and
insurance brokerage services. From 1968 to 1987, Mr. Dahlberg held other,
successively more responsible executive positions with Kraus-Anderson Inc. or
one of its subsidiaries. In addition, from 1985 to 2005, Mr. Dahlberg was an
owner and breeder of thoroughbred race horses and was licensed to race
thoroughbreds in Minnesota, Alabama, Florida, Illinois, Indiana, Iowa, Kansas,
Kentucky, and Texas. Mr. Dahlberg also served on the board of the Minnesota
Thoroughbred Association from 1988 to 1993, was its Vice President in 1989 and
its President during 1990 and 1991. Mr. Dahlbergs knowledge and experience
gained from a 35-year career in commercial real estate construction, management
and finance is extremely valuable to the Boards understanding and governance
of the Companys maintenance and improvement of its facilities, as well as the
Companys assessment and pursuit of opportunities for developing its unused and
underutilized land.
CARIN
J. OFFERMAN
, age 62, has been a director of the
Company since 1994. Ms. Offerman is currently engaged in private investment
activities and is a principal in Puppy Good Start which provides dog training
services. From 1997 to 2000, Ms. Offerman was the President of Offerman &
Company, a regional investment banking and retail broker-dealer firm, and from
1990 to 1997 was its Executive Vice President. Prior to 1990, Ms. Offerman
served in various capacities with Offerman & Company for the preceding six
years, including as registered representative and sales retail manager. Ms. Offerman
was a member of the board of the Minnesota Thoroughbred Association from 1993
to 1996 and served as its President in 1993 and 1994. Ms. Offerman has been an
owner and breeder of both show horses and thoroughbreds, and she has been or is
currently licensed as a horse owner in Minnesota, Iowa and Nebraska. Since 1991
she has been a member of the Minnesota Racing Commissions Breeders Fund
Advisory Board and its Chair since 2003. As a member of the Companys Board of
Directors, Ms. Offerman brings a unique blend of entrepreneurial experience,
knowledge and experience in investment banking and finance, and a deep
understanding of the horse industry.
5
Table of Contents
MR.
CURTIS A. SAMPSON
, age 77, co-founded the Company in
1994 and has been a director and Chair of its Board since the Company was
incorporated. He is also the Chair of the Board of Communications Systems,
Inc., a public company principally engaged in manufacturing and selling
products for the telecommunications and data communications industries. Mr. Sampson
was the Chief Executive Officer of Communications Systems, Inc. from 1969 to
June 2007 when he retired from full time executive responsibilities. Mr.
Sampson is also a director of Solix, a process outsourcing firm focusing on
government and commercial markets, a trustee of Viterbo University in LaCrosse,
Wisconsin, and a member of the Emeritus Board of Advisors of the University of
Minnesotas Carlson School of Business. Over the course of his career, in
addition to service on three other public company boards, Mr. Sampson has also
served on other non-profit boards, telephone industry association boards,
private company boards and the following public company boards: Nature Vision,
Inc. (2001 to 2009) and Hector Communicating Corporation (1990 to 2006). Mr.
Sampson is the owner of Sampson Farms, a breeder of thoroughbred horses based
in Hector, Minnesota and he is currently, or has been in the past, licensed as
a horse owner in Florida, Illinois, Kentucky, Minnesota, Nebraska and Oklahoma.
The distinctive perspective Mr. C.A. Sampson brings to the board is his
extensive and wide ranging knowledge and experience in business, management and
corporate finance gained over more than 40 years leading sizable enterprises,
his knowledge of the thoroughbred horse racing industry and, as the Companys
largest shareholder, one that has a substantial stake in the Boards efforts to
build shareholder value.
RANDALL
D. SAMPSON
, age 53, co-founded the Company with his
father and director Dale Schenian in 1994 and has served as its President and
Chief Executive Officer and on the Companys Board of Directors since
inception. After graduating from college with a degree in accounting, Mr.
Sampson worked for five years in the audit department of Deloitte & Touche where
he earned his CPA certification. He subsequently gained experience as a
controller of a private company and, thereafter, served as a Chief Financial
Officer of a public company before becoming one of the three co-founders of
Canterbury Park Holding Corporation in 1994. From 1987 to 1994, R.D. Sampson
also managed Sampson Farms, a breeder of thoroughbred horses located in Hector,
Minnesota that is owned by his father, C.A. Sampson, the companys Board Chair.
Prior to assuming the role of CEO, Mr. Sampson was licensed as a horse owner in
Illinois, Iowa, Nebraska and Minnesota and active in the horse industry
associations, serving on the Board of the Minnesota Thoroughbred Association
from 1990 to 1993, as its Treasurer in 1991 and 1993 and as its President in
1992. Mr. Sampson has also served as a member of the Minnesota Racing
Commissions Breeders Fund Advisory Board. As the Companys Chief Executive
Officer, Mr. Sampson brings to the Board an in-depth understanding of the
Companys personnel, operations, financial results performance, financial
position, challenges and opportunities.
DALE
H. SCHENIAN
, age 69, co-founded the Company and has
been a director since its incorporation in 1994. Mr. Schenian currently serves
as the Chair of the Board of City Auto Glass Companies, a company he founded in
1990. From 1990 to 2004, Mr. Schenian was its President and Chief Executive
Officer, and under his leadership, City Auto Glass grew from a start-up status
to an enterprise with facilities in more than 20 locations in Minnesota,
western Wisconsin and northern Iowa. For approximately 30 years preceding
launching City Auto Glass, Mr. Schenian either owned or worked for other
companies in the highly competitive auto glass industry. In addition to other
leadership roles in other business and community organizations, Mr. Schenian
served on the board of Bremer Bank from 1984 to 2009. Mr. Schenian, from 1985
to present, has also been an owner and breeder of thoroughbred race horses
licensed in Minnesota, Illinois, Texas, Kansas, Oklahoma, Kentucky, Iowa and
Nebraska. Mr. Schenians perspective is that of one whose career has been
dedicated to building businesses in a highly competitive service industry, who
has a high degree of knowledge about the horse racing industry and, as one of
the Companys largest shareholders, who has a significant stake in the Boards
efforts to build shareholder value.
V
ote Required
The
affirmative vote of a majority of the outstanding shares of the Companys
Common Stock voting at the meeting in person or by proxy is required for the
election of each director.
B
oard Voting
Recommendation
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS
A VOTE FOR EACH OF THE NOMINEES LISTED ABOVE
6
Table of Contents
SEC
URITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The
following table sets forth, based upon information available as of April 7,
2011, the beneficial ownership of shares of our common stock (i) by each
person known by us to own of record or beneficially five percent or more of our
common stock, (ii) by the Named Executive Officers listed in the Summary
Compensation Table below, and (iii) by all of our current executive
officers and directors as a group. Information regarding the beneficial
ownership of our directors and director nominees can be found beginning on page
5 under Election of Directors. Unless otherwise indicated, the persons listed
below may be contacted by mail at 1100 Canterbury Road, Shakopee, Minnesota
55379.
|
|
|
|
|
|
|
|
Name and
Address
of Beneficial Owner
|
|
Amount and Nature of
Beneficial Ownership
(1)(2)
|
|
Percent
of Class
(1)(2)
|
|
Curtis A. Sampson
|
|
|
887,700
|
(3)
|
|
22.5
|
%
|
|
|
|
|
|
|
|
|
Gabelli Asset Management, Inc.
One Corporate Center
Rye, New York
10580-1435
|
|
|
569,369
|
(4)
|
|
14.0
|
%
|
|
|
|
|
|
|
|
|
Dale H. Schenian
|
|
|
497,548
|
(5)
|
|
12.9
|
%
|
|
|
|
|
|
|
|
|
Randall D. Sampson
|
|
|
327,445
|
(6)(8)
|
|
8.8
|
%
|
|
|
|
|
|
|
|
|
John L. Morgan
605 Highway 169 N., Suite 400
Minneapolis, MN 55441
|
|
|
243,133
|
(7)
|
|
6.0
|
%
|
|
|
|
|
|
|
|
|
Carin J. Offerman
|
|
|
91,750
|
|
|
3.0
|
%
|
|
|
|
|
|
|
|
|
David C. Hansen
|
|
|
61,483
|
(8)
|
|
1.9
|
%
|
|
|
|
|
|
|
|
|
Michael J. Garin
|
|
|
61,058
|
|
|
1.8
|
%
|
|
|
|
|
|
|
|
|
Patrick R. Cruzen
|
|
|
28,500
|
|
|
1.4
|
%
|
|
|
|
|
|
|
|
|
Burton F. Dahlberg
|
|
|
26,304
|
|
|
1.1
|
%
|
|
|
|
|
|
|
|
|
All current directors and executive officers as a group (9 persons)
|
|
|
1,998,411
|
(8)
|
|
54.2
|
%
|
|
|
|
Named Executive Officer.
|
|
|
(1)
|
Shares not outstanding but
deemed beneficially owned by virtue of the right of a person or group to
acquire them within 60 days of April 7, 2011 are treated as outstanding
only when determining the amount and percent owned by that person or group.
|
(2)
|
Includes the following
number of shares that could be purchased upon exercise of stock options
exercisable within sixty days of April 7, 2011: Mr. C. Sampson, 29,000
shares; Mr. Schenian, 29,000 shares; Mr. R. Sampson, 31,250 shares; Ms.
Offerman, 29,000 shares; Mr. Garin, 13,125 shares; Mr. Cruzen, 26,500 shares;
Mr. Dahlberg, 20,500 shares; Mr. Hansen, 17,500 shares; and all director and
officers as a group, 209,000 shares.
|
(3)
|
Includes 11,300 shares held
by Mr. C. Sampsons spouse as to which beneficial ownership is disclaimed.
|
(4)
|
Based upon a
Schedule 13D filed by Gabelli Asset Management, Inc. on October 26, 2010
which covers shares owned by Gabelli Funds, GAMCO, MJG Associates, and Teton
Advisors.
|
(5)
|
Includes 33,000 shares held
by Mr. Schenians spouse as to which beneficial ownership is disclaimed.
|
(6)
|
Includes 25,700 shares held
by Mr. R. Sampsons children.
|
(7)
|
Based upon a Schedule 13D
filed by John L. Morgan on June 7, 2010.
|
(8)
|
Includes 36,355 shares held
by the Companys Employee Stock Ownership Plan and Trust, with respect to
which Mr. R. Sampson and Mr. Hansen serve as trustees, but as to which
beneficial ownership is disclaimed by such executive officers.
|
7
Table of Contents
EXE
CUTIVE
COMPENSATION
Ro
le of the
Compensation Committee in the Compensation Process
|
|
|
|
|
The
Compensation Committee has the following duties and responsibilities:
|
|
|
|
review,
approve and oversee our overall compensation strategy;
|
|
|
review and
approve the compensation and other terms of employment of our Chief Executive
Officer and our other executive officers, and recommend to the entire Board
the compensation and the other terms of employment of these officers;
|
|
|
make
recommendations to the Board regarding the amount of directors fees and
other compensation for Board members, including retainer, Board meeting,
committee and committee chair fees and stock option grants or awards;
|
|
|
administer
our incentive-based or equity-based compensation plans and periodically
consider and recommend changes in existing plans or the adoption of other or
additional equity-based compensation plans; and
|
|
|
provide
oversight for our 401(k) Plan and Employee Stock Ownership Plan, and any
similar plans, including matters such as available investment options,
performance, participation, administration, and review and approve generally
the cost and scope of our other employee benefit plans.
|
Under
its charter, the Committee has the authority to engage the services of outside
advisors, experts and others to assist it in performing its duties. The
Committee did not, however, engage an individual or firm to provide any of
these services in 2010 or 2009. The Compensation Committee also reviews
surveys, reports and other market data against which it measures the
competitiveness of our compensation program.
In
discharging its responsibilities, the Compensation Committee solicits certain
information and advice from Randall D. Sampson, our President and Chief
Executive Officer, and from our Chief Financial Officer, David C. Hansen. These
officers participate in the deliberations of the Compensation Committee
regarding compensation of other employees, including providing information
regarding salary history, historical bonus practices and related financial
data, the responsibilities and performance of employees and recommendations
regarding the appropriate levels of compensation, but do not take part in
deliberations regarding their own compensation.
Ob
jectives of
our Compensation Programs
It
is the objective of the Compensation Committee to provide competitive levels of
compensation that will attract, motivate and retain executives with superior
leadership and management abilities and to provide incentives to executive
officers so that we may achieve superior financial performance and to structure
the forms of compensation paid to align the interests of our executive officers
with those of CPHC. With these objectives in mind, it has been our practice to
provide a mix of base salary, bonus compensation, equity-based compensation and
retirement compensation. The Compensation Committee has historically set base
salary at more than 50% of the total value of executive officer compensation,
with cash bonus, the value of long-term equity compensation and retirement
compensation comprising the remainder. The Compensation Committee believes that
these forms of compensation provide an appropriate combination of fixed and
variable pay and incentives for short-term operational performance balanced
with incentives to achieve long-term stock price performance.
In
formation
about our Compensation Programs
As
discussed above, our compensation of executives consists of base salary, bonus
compensation, equity-based compensation and retirement compensation.
Base
Salary
. Base salaries of our executive officers are generally established
by reference to base salaries paid to executives in similar positions with
similar responsibilities. Base salaries are reviewed annually and adjustments,
if any, are usually made in March of each year based primarily on individual
and Company performance during the immediately preceding fiscal year.
Consideration is given by the Compensation Committee to both measurable
financial performance, and subjective judgments by the Compensation Committee
based on factors such as development and execution of strategic plans, changes
in areas of responsibility, the development
8
Table of Contents
and management
of employees and participation in industry, regulatory or political initiatives
beneficial to our business. The Compensation Committee does not, however,
assign specific weights to these various quantitative and qualitative factors
in reaching its decisions. In March of 2009, the Compensation Committee and the
Board of Directors instituted a salary and wage freeze for all employees in the
Company, including for each of the executive officers. This salary and wage
freeze was in effect through December 31, 2010.
Bonus
Compensation
. Cash bonuses are intended to provide supervisory employees,
including executive officers, with an opportunity to receive additional cash
compensation, but only if they earn it through individual performance and
CPHCs financial performance. After our year-end results are available, the
Compensation Committee determines the amount of executive officers bonuses at
its discretion, after receiving information from the Chief Financial Officer
and the Chief Executive Officer regarding CPHC financial performance and
reviews of individual performance. The amount of the bonus is based on our
financial performance, as well as the Compensation Committees assessment of
individual performance in the executives area of responsibility based on
objective and subjective factors. Bonuses are not granted pursuant to a plan,
are purely discretionary and the practice of granting bonuses may be changed,
suspended or terminated at any time. In October 2008, the Company announced
that it had suspended its management bonus program. No bonuses were awarded in
2010 or 2009.
Equity
Based Compensation
. The Company provides long-term incentive compensation
through grants of restricted stock and stock options to executive officers and
key employees under the shareholder-approved 1994 Stock Plan (the Plan). In
2006, the Company granted shares of restricted stock to executive officers and
key employees other than the Companys CEO and CFO. With respect to the CEO and
CFO, the Committee granted both restricted stock and options. In 2009, the
Committee granted stock options to purchase 32,500 shares of common stock to
the three executive officers named in the Summary Compensation table below,
which represented 32.5% of the total options granted to all officers and key
employees in 2009. In 2010, Committee granted stock options to purchase 32,500
shares of common stock to the three executive officers named in the Summary
Compensation table below, which represented 37.8% of the total options granted
to all officers and key employees.
Retirement
Plans
. The Company has established an Employee Stock Ownership Plan and
Trust (ESOP) and Savings Plan and Trust (401(k) Plan). From 2004 to 2007, the
Company contributed shares of its common stock to the ESOP which were allocated
pro rata to all employees, other than the Named Executive Officers, based on
their respective compensation. The Company did not make a contribution to the
ESOP in 2009 or 2010. The Named Executive Officers participate in the 401(k)
Plan on the same basis as all other employees of the Company. Through 2008, for
those employees that had been with the Company 1-5 years, the Company matched
25% of each employees contribution to the 401(k) Plan up to the first 6% the
employee contributed as a percentage of his or her compensation; and, for those
employees that had been with the Company 6 or more years, the Company matched
50% of each employees contribution to the 401(k) Plan up to the first 6% the
employee contributed as a percentage of his or her compensation. In January
2009, as part of an expense reduction effort, the Company suspended its
employer contributions to the 401(k) Plan for fiscal 2009. This suspension was
in effect through December 31, 2010.
9
Table of Contents
Su
mmary
Compensation Table
The
following table shows information concerning compensation earned for services
in all capacities during 2010, 2009, and 2008 for (i) Randall D. Sampson, who
was our Chief Executive Officer in 2010, 2009, and 2008; and (ii) the two next
most highly compensated executive officers of our Company whose total
compensation was at least $100,000 in 2010 (together referred to as our Named
Executive Officers).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name and Position
|
|
Year
|
|
Salary
($)
|
|
Option
Awards
($)
(1)
|
|
All Other
Compensation
($)
|
|
Total
($)
|
|
Randall D. Sampson
|
|
|
2010
|
|
$
|
208,100
|
|
$
|
56,850
|
|
$
|
3,166
|
|
$
|
268,116
|
|
President and Chief
|
|
|
2009
|
|
|
208,100
|
|
|
16,050
|
|
|
1,150
|
|
|
225,300
|
|
Executive Officer
|
|
|
2008
|
|
|
207,923
|
|
|
|
|
|
5,209
|
|
|
213,132
|
|
David C. Hansen
|
|
|
2010
|
|
|
151,598
|
|
|
37,900
|
|
|
3,166
|
|
|
192,664
|
|
Vice President of Finance,
|
|
|
2009
|
|
|
151,598
|
|
|
10,700
|
|
|
1,525
|
|
|
163,823
|
|
Chief Financial Officer
|
|
|
2008
|
|
|
150,744
|
|
|
|
|
|
6,605
|
|
|
157,349
|
|
Michael J. Garin
|
|
|
2010
|
|
|
112,857
|
|
|
28,425
|
|
|
2,733
|
|
|
144,015
|
|
Vice President of Non-
|
|
|
2009
|
|
|
104,570
|
|
|
8,025
|
|
|
59
|
|
|
112,654
|
|
Gaming Operations
|
|
|
2008
|
|
|
101,908
|
|
|
|
|
|
3,596
|
|
|
105,504
|
|
|
|
(1)
|
Represents
options to purchase common stock granted in 2010 and 2009 that vest ratably
over three years and six months and expire ten years from the date of grant.
The values expressed represent the aggregate grant date fair value for these
option awards as determined pursuant to Accounting Standards Codification
718, Compensation Stock Compensation (ASC 718), utilizing the assumptions
discussed in Note 1, Summary of Accounting Policies, in the notes to
consolidated financial statements included in our Annual Report on Form 10-K
for the year ended December 31, 2010.
|
Emp
loyment
Arrangements with Named Executive Officers and Post-Employment Compensation
We
do not have any employment agreements with any of our executive officers, each
of whom serves at will. Additionally, we do not have any contract, agreement,
plan or arrangement, whether written or unwritten, that provides for payments
to the Named Executive Officer at, following, or in connection with any
termination or change-in-control.
Oth
er
Compensation
The
Company does not pay its executive officers compensation other than as
described above. In particular the Company does not provide for personal
benefits or perquisites (perks) as a significant element of compensation of
the Named Executive Officers, in particular, or employees of the Company
generally.
10
Table of Contents
Outs
tanding
Equity Awards at Fiscal Year-End
The
following table sets forth certain information concerning equity awards
outstanding to the Named Executive Officers at December 31, 2010.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Option Awards
|
|
Name
|
|
Number
of
Securities
Underlying
Unexercised
Options (#)
Exercisable
|
|
Number of
Securities
Underlying
Unexercised
Options (#)
Unexercisable
|
|
Option
Exercise
Price
($)
|
|
Option
Expiration
Date (6)
|
|
Randall D. Sampson
|
|
|
10,000
(1
|
)
|
|
|
|
$
|
6.63
|
|
|
04/04/2011
|
|
|
|
|
10,000
(2
|
)
|
|
|
|
$
|
14.55
|
|
|
02/09/2016
|
|
|
|
|
7,500
(4
|
)
|
|
7,500(4
|
)
|
$
|
6.00
|
|
|
04/23/2019
|
|
|
|
|
3,750
(5
|
)
|
|
11,250(5
|
)
|
$
|
8.28
|
|
|
02/25/2020
|
|
David C. Hansen
|
|
|
5,000
(3
|
)
|
|
|
|
$
|
7.03
|
|
|
08/08/2011
|
|
|
|
|
5,000
(2
|
)
|
|
|
|
$
|
14.55
|
|
|
02/09/2016
|
|
|
|
|
5,000
(4
|
)
|
|
5,000(4
|
)
|
$
|
6.00
|
|
|
04/23/2019
|
|
|
|
|
2,500
(5
|
)
|
|
7,500(5
|
)
|
$
|
8.28
|
|
|
02/25/2020
|
|
Michael J. Garin
|
|
|
7,500
(1
|
)
|
|
|
|
$
|
6.63
|
|
|
04/04/2011
|
|
|
|
|
3,750
(4
|
)
|
|
3,750(4
|
)
|
$
|
6.00
|
|
|
04/23/2019
|
|
|
|
|
1,875(5
|
)
|
|
5,625(5
|
)
|
$
|
8.28
|
|
|
02/25/2020
|
|
|
|
|
|
|
|
|
|
(1)
|
Represents
options that were granted on April 4, 2001 that vest ratably over one year
and expire ten years from the date of grant.
|
(2)
|
Represents
options that were granted on February 9, 2006 that vest ratably over four
years and expire ten years from the date of grant.
|
(3)
|
Represents
options that were granted on August 8, 2001 that vest ratably over one year
and expire ten years from the date of grant.
|
(4)
|
Represents
options that were granted on April 23, 2009 that vest ratably over three
years and six months and expire ten years from the date of grant.
|
(5)
|
Represents
options that were granted on February 25, 2010 that vest ratably over three
years and six months and expire ten years from the date of grant.
|
(6)
|
The
expiration date of each option is ten years from the date of grant.
|
DI
RECTOR
COMPENSATION
Each
non-employee member of the Board of Directors is currently paid a monthly fee
of $1,200 plus $1,000 for each Board or Board Committee meeting attended. In
addition, Messrs. Sampson and Schenian receive monthly payments of $2,500 and
$1,675, respectively, for their service as Chair and Vice Chair of the Board.
Under
our 1994 Stock Plan, upon their election to the Board, each non-employee
director receives an option to purchase 2,500 shares of our common stock. In
addition, on the first business day in February each year, each non-employee
director also receives an option to purchase 3,000 shares of our common stock.
All these options granted to non-employee directors vest six months from the
date granted and are exercisable over a ten-year period. The purchase price of the
shares of common stock subject to these options is the fair market value as
determined under provisions of the 1994 Stock Plan.
Randall
D. Sampson, our President, Chief Executive Officer and General Manager,
receives no additional compensation for his service on the Board.
11
Table of Contents
The
following table shows for 2010, the cash and other compensation paid by us to
each non-employee member of our Board of directors:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name
|
|
Fees Earned or
Paid in
Cash
($)
(1)
|
|
Option
Awards
($)
(2)
|
|
All Other
Compensation
($)
|
|
Total
($)
|
|
Curtis A. Sampson
|
|
$
|
47,000
|
|
$
|
9,090
|
|
|
|
|
$
|
56,090
|
|
Dale H. Schenian
|
|
|
37,100
|
|
|
9,090
|
|
|
|
|
|
46,190
|
|
Patrick R. Cruzen
|
|
|
23,400
|
|
|
9,090
|
|
|
|
|
|
32,490
|
|
Burton F. Dahlberg
|
|
|
23,400
|
|
|
9,090
|
|
|
12,000 (3
|
)
|
|
44,490
|
|
Carin J. Offerman
|
|
|
23,400
|
|
|
9,090
|
|
|
12,000 (4
|
)
|
|
44,490
|
|
|
|
|
|
|
|
|
|
(1)
|
Represents
cash retainer and meeting fees for 2010 as described above.
|
|
|
(2)
|
Represents
options to purchase common stock granted on February 1, 2010 that vested 100%
on August 1, 2010 and expire ten years from the date of grant. The values
expressed represent the aggregate grant date fair value for these fiscal 2010
option awards as determined pursuant to Accounting Standards Codification
718, Compensation Stock Compensation (ASC 718), utilizing the assumptions
discussed in Note 1, Summary of Accounting Policies, in the notes to
consolidated financial statements included in our Annual Report on Form 10-K
for the year ended December 31, 2010.
|
|
|
(3)
|
Represents
cash compensation paid in 2010 in consideration for Mr. Dahlbergs additional
responsibilities as a director for service as Chair of the Strategic Planning
Committee.
|
|
|
(4)
|
Represents
cash compensation paid in 2010 in consideration for Ms. Offermans additional
responsibilities as a director in support of the Companys efforts to obtain
legislative approval of additional gaming authority.
|
C
ERTAIN
RELATIONSHIPS AND RELATED PERSON TRANSACTIONS
Since
the beginning of 2010, we have not entered into any transaction, and there are
no currently proposed transactions, in which we were or are to be a participant
and in which any related person had or will have a direct or indirect material
interest.
The
charter of our Audit Committee provides that the Audit Committee is responsible
for reviewing, approving and providing oversight in regard to related party
transactions. Our Code of Conduct also prohibits our employees, including our
executive officers, and our directors from engaging in conflict of interest
transactions, certain of which may be also be transactions in which we and a
related person has or will have a direct or indirect material interest. By its
charter, the Audit Committee is empowered to periodically review the Code of
Conduct, as well as any other programs established to monitor compliance with
any CPHC codes of conduct or business ethics policies established in the
future.
While
we do not have a written policy regarding the standards to be applied by our
Audit Committee in reviewing conflict of interest transactions, the provisions
of Minnesota law provide for a procedure to be applied to such transactions
which focuses on full disclosure of all of the material facts of the
transaction to us, approval of the transaction by disinterested directors, and
a showing that the transaction was fair and reasonable to us at the time it was
authorized, approved, or ratified. We believe the Audit Committee would apply
these same standards to any
12
Table of Contents
potential
transaction in which we are to be a participant and in which any related person
had or will have a director or indirect material interest.
P
ROPOSAL 2
RATIFICATION OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
Grant
Thornton, LLP has been the Companys independent registered public accounting
firm since August 31, 2009. The Board of Directors, upon recommendation of the
Audit Committee, is requesting shareholder ratification of the appointment of
Grant Thornton, LLP to serve as the independent registered public accounting
firm for the Company for the current fiscal year ending December 31, 2011. A
representative of Grant Thornton, LLP is expected to be present at the Annual
Meeting of Shareholders and will have an opportunity to make a statement and
will be available to respond to appropriate questions.
F
ees Billed and
Paid to Independent Registered Public Accounting Firms
The
table below provides a summary of fees paid to Grant Thornton, LLP for
professional services rendered for the two fiscal years ended December 31,
2010. In addition, the table provides a summary of fees paid to the Companys
former accounting firm, Deloitte & Touche LLP, for its service during the
eight months ended August 31, 2009. See Further Information Regarding Current
and Former Auditors below.
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grant Thornton, LLP
|
|
Grant Thornton,
LLP
|
|
Deloitte & Touche
LLP
|
|
Fee Category
|
|
|
|
|
|
|
|
|
|
|
Audit Fees
|
|
$
|
105,000
|
|
$
|
90,000
|
|
$
|
36,000
|
|
Audit-Related
Fees
|
|
|
|
|
|
|
|
|
|
|
Tax Fees
|
|
|
|
|
|
|
|
|
|
|
All Other
Fees
|
|
|
|
|
|
|
|
|
|
|
Total Fees
|
|
$
|
105,000
|
|
$
|
90,000
|
|
$
|
36,000
|
|
Audit
Fees
. This category consists of fees billed for
professional services rendered for the audit of our annual financial statements
and review of financial statements included in our quarterly reports.
Audit-Related
Fees
. This category consists of fees billed for
assurance and related services that are reasonably related to the performance of
the audit or review of our financial statements and are not otherwise reported
under Audit Fees. The Company paid no audit-related fees to Grant Thornton,
LLP or Deloitte & Touche LLP in 2010 or 2009.
Tax
Fees
. This category consists of fees billed for
professional services for tax compliance, tax advice and tax planning. These
services include assistance regarding federal and state tax compliance and
acquisitions. The Company paid no tax fees to Grant Thornton, LLP or Deloitte
& Touche LLP in 2010 or 2009.
All
Other Fees
. This category consists of all fees paid to
the independent registered public accounting firm for matters than the three
listed above. The Company paid no other fees to Grant Thornton, LLP or Deloitte
& Touche LLP in 2010 or 2009.
A
udit Committee
Pre-approval Policies and Procedures
In
addition to approving the engagement of the independent registered public
accounting firm to audit our consolidated financial statements, it is the
policy of the Audit Committee to approve all uses of that firm for non-audit
services prior to any engagement. To minimize relationships that could appear
to impair the objectivity of the independent registered public accounting firm,
it is the policy of the Audit Committee to restrict the non-audit services that
may be provided to us by our independent registered public accounting firm to
services that clearly would not compromise the independence of the firm.
13
Table of Contents
F
urther
Information Regarding Current and Former Auditors
Effective
August 31, 2009, the Board of Directors of the Company terminated the
engagement of Deloitte & Touche LLP (Deloitte) as the Companys
independent registered public accounting firm. Concurrently, the Company
appointed Grant to serve as the Companys independent registered public
accounting firm for the remainder of the 2009 fiscal year. The decision to
change independent registered public accounting firms was recommended by the
Companys Audit Committee.
During
the year ended December 31, 2008 and the interim periods between December 31,
2008 and August 31, 2009, there were no disagreements between the Company and
Deloitte on any matter of accounting principles or practices, financial
statement disclosure or auditing scope or procedure that, if not resolved to
Deloittes satisfaction, would have caused Deloitte to make reference to the
subject matter of the disagreement in connection with its report for these
years; and there were no reportable events as defined in Item 304(a)(1)(v) of Regulation
S-K.
Further,
during the year ended December 31, 2009, prior the engagement of Grant, neither
the Company nor anyone acting on its behalf consulted Grant with respect to any
of the following: (i) the application of accounting principles to a specified
transaction, either completed or proposed, (ii) the type of audit opinion that
might be rendered on the Companys consolidated financial statements, (iii) any
matter that was the subject of a disagreement with Deloitte or a reportable
event as described in Item 304(a)(1)(v) of Regulation S-K.
V
ote Required
The
affirmative vote of a majority of the outstanding shares of the Companys
Common Stock voting at the meeting in person or by proxy is required for
approval of the ratification of the appointment of Grant Thornton, LLP.
B
oard Voting
Recommendation
THE BOARD OF
DIRECTORS RECOMMENDS THAT THE SHAREHOLDERS VOTE FOR THE PROPOSAL TO RATIFY
THE APPOINTMENT OF GRANT THORNTON, LLP AS THE COMPANYS INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM FOR OUR 2011 FISCAL YEAR
A
UDIT COMMITTEE
REPORT
The
Audit Committee of the Board of Directors, consisting of Patrick Cruzen
(Chair), Burton Dahlberg and Carin Offerman, held four meetings during fiscal
year 2010 with management and our independent registered public accounting
firm. These meetings were designed to facilitate and encourage private
communication between the Audit Committee and our independent registered public
accounting firm.
The
Audit Committee reviewed and discussed the audited financial statements with
management and Grant Thornton, LLP. Management represented to the Audit
Committee that our consolidated financial statements were prepared in
accordance with generally accepted accounting principles, and the Audit Committee
has reviewed and discussed the consolidated financial statements with
management and the independent registered public accounting firm. The
discussions with Grant Thornton, LLP also included the matters required to be
discussed by the applicable Auditing Standards as periodically amended
(including significant accounting policies, alternative accounting treatments
and estimates, judgments and uncertainties).
Grant
Thornton, LLC also provided to the Audit Committee the written disclosures and
the letter regarding its independence as required by Independence Standards
Board Standard No. 1 (Independence Discussions with Audit Committees). This
information was discussed with the Audit Committee.
In
reliance on the reviews and discussions referred to above, the Audit Committee
recommended to the Board of Directors that our audited consolidated financial
statements be included in our Annual Report on Form 10-K for the year ended
December 31, 2010 for filing with the Securities and Exchange Commission.
14
Table of Contents
P
ROPOSAL 3
AMENDMENT OF THE COMPANYS STOCK PLAN
TO PROVIDE FOR DISCRETIONARY EQUITY AWARDS TO DIRECTORS
I
ntroduction
The
Canterbury Park Holding Corporation Stock Plan (the Plan) was approved and
adopted by the Board of Directors and the shareholders of the Company in May
1994. The purpose of the Plan is to provide a long-term incentive compensation
to selected officers, key employees and non-employee directors of the Company
and of any subsidiary of the Company, to provide a means of rewarding
outstanding performance, and to enable the Company to attract and retain key
personnel necessary for the Companys growth and profitability. The Plan
provides for the granting of awards in the form of incentive stock options
(ISOs), non-qualified stock options (NQSOs), restricted stock, stock
appreciation rights and deferred stock to key employees and non-employees,
including directors of and consultants to the Company and any subsidiary. On
April 15, 2011 the Board approved an amendment described below to that portion
of the Plan that authorizes equity awards to non-employee directors as
compensation for service on the Board.
P
roposed
Amendment to Stock Plan to Provide for Discretionary Equity Awards to
Non-Employee Directors
Each
director who is not an employee of the Company is currently compensated for his
or her service as a director both in cash and by means of an annual, automatic
grant of an NQSO to purchase 3,000 shares of Company common stock. See
Director Compensation above. Subject at all times to its fiduciary duties,
the Board has discretion in setting cash compensation paid to directors in
light of changing circumstances. On the other hand, the Plan limits equity
compensation paid to directors to annual grants of NQSOs and limits to 3,000
the number of shares that may be covered by the NQSO. The Board believes the
Plan should be amended to replace this inflexible automatic stock option grant
with a more flexible provision that parallels the discretion it has in setting
cash compensation, both in terms of the type of equity award made to
non-employee directors and its size.
The
Board has approved, and is recommending for shareholder approval and
ratification, an amendment to the Plan that contains the following elements, which
discussion is qualified in its entirety by reference to the text of the
amendment presented below:
|
|
|
|
|
The current
automatic grant of an NQSO covering 3,000 shares of common stock that is made
to non-employee directors in February each year would be replaced with the
grant of authority to the Board in the Plan to determine at least 40 days
prior to each annual meeting of shareholders the type and amount of equity
compensation to be paid to each non-employee director elected or re-elected
at such annual meeting
|
|
|
The Board
would have discretion to determine whether the equity compensation should be
in the form of an award of restricted stock or an award of NQSOs, or both,
and the Board would also have discretion to determine the number of shares
covered by the award or awards.
|
|
|
The award of
restricted stock, or NQSOs, or both, would be effective and paid to those
individuals elected or re-elected as non-employee directors at the annual
meeting of shareholders.
|
|
|
Any award
would not vest unless the non-employee director continues to serve as a
director until the next annual meeting of shareholders, and resale of the
restricted stock or shares acquired upon exercise of the NQSOs could not
occur until two years after the date of the annual meeting at which the
awards were effective.
|
|
|
The Plan as
amended would authorize the Board to determine other terms and conditions of
the awards to non-employee directors, including restricting further vesting
and resale of the restricted stock or shares acquired upon exercise of the
NQSOs beyond the second anniversary of the date the award or awards were
effective.
|
|
|
Individuals
elected as non-employee directors between annual meetings of shareholders
would be eligible to receive a pro-rated equity award as compensation for
their service until the next annual meeting of shareholders.
|
15
Table of Contents
|
|
|
|
The Board is
proposing to amend the Plan as described above for the following reasons:
|
|
|
|
|
First, many
public companies have moved to compensating non-employee directors with
restricted stock, rather than NQSOs, because it is believed stock ownership
in the form of restricted stock better aligns the interests of directors with
the interests of shareholders generally, and the Board believes making awards
of restricted stock to non-employee directors for this reason is in the best
interest of the Company.
|
|
|
Second, it
is believed paying part of non-employee director compensation in the form of
restricted stock which is restricted as to resale even after vesting, as well
as restricting resale of shares of acquired upon the exercise of NQSOs will
increase the incentive of directors to consider the longer term interests of
the shareholders as well as shorter term interests.
|
|
|
Third, the
Board believes it is desirable that the Board be given discretion in
determining the size of awards of restricted stock and NQSOs each year so
that compensation can be adjusted, as deemed necessary or appropriate, to
provide both a proper mix of both cash and equity compensation and a total
amount of compensation that will attract and retain individuals who are well
qualified to participate in the governance of the Company.
|
Because
the non-employee directors each received equity compensation in February 2011
under the current provisions of the Plan in the form of an NQSO award of 3,000
shares, the Board concluded that a further equity award should be limited and,
therefore, determined on April 15, 2011 to only approve a transitional award of
1,000 shares of restricted stock to each non-employee director. This award will
be effective immediately following the June 2, 2011 Annual Meeting, if
shareholder approval of the proposed amendment is received.
Beginning
in 2012, and for the foreseeable future, the Board expects to only make
discretionary awards of restricted stock. The number of shares covered by such
awards of restricted stock in the future will at all times be subject to the
Boards fiduciary duties and will be determined based on the Boards judgment
at that time as to what level of equity awards and what level of overall
compensation is appropriate to attract and retain qualified directors. While it
will be permitted under the text of the Plan as amended, the Board of Directors
does not expect to award any further NQSOs in 2011 or for the foreseeable
future thereafter, but the ability to issue NQSOs to directors has been
included in the amended text of the Plan to provide flexibility with respect to
the mix of compensation to be paid to non-employee directors under the Plan.
B
enefits of the
Proposed Amendment
As
discussed above, on April 15, 2011, the Board determined that, subject to
shareholder approval of the amendment of the Plan, each non-employee director
elected or re-elected at this Annual Meeting would be awarded a grant of 1,000
shares of restricted stock. The restricted stock award will vest after one
year, and be subject to restrictions on resale for one additional year. This
award is a transitional measure and is in addition to the award to each
non-employee director effective February 1, 2011 of NQSOs covering 3,000 shares
discussed above. Accordingly, if shareholder approval is received with respect
to Proposal 3, and if elected or re-elected at this Annual Meeting, C.A.
Sampson, Patrick Cruzen, Burton Dahlberg, Carin Offerman and Dale Schenian,
will each receive an award of 1,000 shares of restricted stock as described
above. If shareholder approval is not received with respect to Proposal 3, no
restricted shares described in the previous paragraph will be available or
issued to non-employee directors in connection with this Annual Meeting.
Other
than the grant of 1,000 shares of restricted stock to each non-employee
director of the Company approved on April 15, 2011 described above, no benefits
or amounts have been granted, awarded or received under the amendment of the
Plan to provide discretionary awards to non-employee directors. Because the
number or size of future awards is at the discretion of the Board, it is not
possible to determine future benefits that will be received by non-employee
directors if the amendment of the Plan is approved by the shareholders.
S
ummary of the
Plan
Options
that are granted under the Plan may be either options that qualify as ISOs
within the meaning of Section 422 of the Internal Revenue Code of 1986, as
amended, or those that do not qualify as ISOs (NQSOs).
16
Table of Contents
The
Plan is administered by the Board of Directors, or a committee designated by
the Board, which determines the persons who are to receive awards under the
Plan, the type of award to be granted, the number of shares subject to each
award and, if an option, the exercise price of each option. Options may not be
granted at an exercise price less than the fair market value of the Common
Stock on the date of grant (or, for an ISO granted to a person holding more
than 10% of the Companys voting stock, at less than 110% of fair market
value). No stock option may be transferred other than by will or the laws of
descent and distribution and may be exercised, during the lifetime of an
optionee, only by the optionee. ISOs that have been granted to employees who
terminate employment due to death, disability or retirement may be exercised
for a period of three years after termination by the optionee or the persons to
whom the rights under such ISO shall have passed, or until the expiration of
the stated term of the option, whichever period is shorter. Generally, the term
of each ISO, which is fixed at the date of grant, must not exceed 10 years from
the date the ISO is granted (except that an ISO granted to a person holding
more than 10% of the Companys voting stock may be exercised only for five
years). The exercise of an option accelerates if (i) the Company liquidates,
(ii) merges or consolidates with another corporation and is not the surviving
corporation or (iii) transfers all or substantially all of its assets or 75% or
more of its outstanding Common Stock to another person or entity. As of the
date of this proxy statement, there are outstanding ISOs to acquire an
aggregate of 183,002 shares that have been granted to 41 employees pursuant to
the Plan. Generally, the number of options granted to individual employees is
based upon the level of responsibility of such employee.
In
addition, the Plan currently provides for formula grants of NQSOs to
non-employee directors of the Company. Upon being elected to the Board,
non-employee directors receive NQSOs to purchase 2,500 shares. In addition, on
January 31 of each calendar year, non-employee directors, who have served on
the Board for at least six months of the preceding 12-month period are also
automatically granted an option to purchase 3,000 shares of Common Stock on the
first business day of February immediately following. The NQSOs granted to
non-employee directors vest six months from the date granted. The purchase
price of the shares of Common Stock subject to such options is the fair market
value of the Common Stock on the date the NQSOs are granted. As of the date of
this Proxy Statement, non-employee directors hold NQSOs covering 157,000 shares
that were granted under the Plan.
The
Board or committee may grant stock appreciation rights in conjunction with all
or a part of any option granted under the Plan. Stock appreciation rights may
be exercised only to the extent that the underlying options are exercisable and
terminate upon expiration of the underlying options. Upon exercise of a stock
appreciation right, an optionee is entitled to an amount in cash or shares or
Common Stock equal in value to the excess of the fair market value of the
Companys Common Stock over the option price per share, multiplied by the
number of shares for which stock appreciation rights are being exercised. Stock
appreciation rights may not be granted to non-employee directors. No stock
appreciation rights have been granted to date.
The
Board may also grant restricted stock and deferred stock. Grants of restricted
stock and deferred stock may be conditioned upon the attainment of specific
performance goals. The restricted stock is held in custody by the Company until
the restrictions on the stock have lapsed.
F
ederal Income
Tax Consequences
An
optionee will not realize taxable income upon either the granting or exercise
of an ISO. However, upon exercise of the ISO, the amount by which the fair
market value of any shares exercised exceeds the option price is an item of tax
preference for purposes of the alternative minimum tax. Upon the sale of such
stock, the optionee generally will recognize capital gain or loss if the stock
has been held for at least two years from the date of the option grant or at
least one year after the stock was purchased. If the applicable holding periods
are not satisfied, then any gain realized in connection with the disposition of
such stock will generally be taxable as ordinary income in the year in which
the disposition occurred, to the extent of the difference between the fair
market value of such stock on the date of exercise and the option exercise
price. The balance of any gain will be characterized as capital gain. The
Company is entitled to a tax deduction to the extent, and at the time, that the
participant realizes compensation income.
An
optionee also will not realize taxable compensation income upon the grant of a
NQSO. When an optionee exercises a NQSO, he or she realizes taxable
compensation income at that time equal to the difference between the aggregate
option price and the fair market value of the stock on the date of exercise.
Upon the disposal of stock acquired pursuant to a NQSO, the optionees basis
for determining taxable gain or loss will be the sum of
17
Table of Contents
the option
price paid for the stock plus any related compensation income recognized by the
optionee, and such gain or loss will be long-term or short-term capital gain or
loss depending on whether the optionee has held the shares for more than one
year.
The
grant of restricted stock and deferred stock will not result in immediate
income for the participant or a deduction for the Company for federal income
tax purposes, assuming the shares are not transferable and subject to
restrictions creating a substantial risk of forfeiture, as intended by the
Company. If the shares are transferable or there are no such restrictions or
deferral periods, the participant will generally realize compensation income
upon receipt of the award. Otherwise, any participant generally will realize
taxable compensation income when any such restriction or deferral period
lapses. The amount of such income will be the value of the common stock on that
date, less any amount paid for the shares. Dividends paid on the common stock
and received by the participant during the restricted period or deferral period
would also be taxable compensation income to the participant. In any event, the
Company will be entitled to a tax deduction to the extent, and at the time,
that the participant realizes compensation income. A participant may elect,
under Section 83(b) of the Internal Revenue Code, to be taxed on the value of
the stock at the time of award. If this election is made, the fair market value
of the stock at the time of the award is taxable to the participant as
compensation income and the Company is entitled to a corresponding deduction.
T
ext of Proposed
Amendment of Stock Plan
Shareholders will be asked to approve
amending Section 5, paragraph (k) of the Companys Stock Plan to read as
follows
:
(k)
Awards to Non-Employee Directors
. Notwithstanding any other provisions
of this Plan, a grant of Restricted Stock or NQSOs, or both, shall be made to
each director who is not an employee of the Company or any Subsidiary within
the meaning of Rule 16b-3 of the Exchange Act and who at the regular annual
shareholders meeting is elected or re-elected to the Board. Except as provided
in (a) and (b) below, the number of shares and the other terms of Restricted
Stock or NQSOs shall be determined by the Board in its sole discretion at least
40 days prior to such annual meeting of shareholders. The date of grant of the
Restricted Stock or NQSO shall be the date of the regular annual meeting of
Shareholders at which such non-employee director is elected or re-elected to
serve on the Board. If an individual is elected to the Board between annual
meetings of shareholders, a pro-rated grant of Restricted Stock or NQSOs may be
made. Subject to the provisions in the Plan applicable in the case of a change
in control, death or disability, the following terms shall apply to the
Restricted Stock or NQSOs awarded under this Section to non-employee directors:
|
|
|
|
i.
|
Unless the
Board specifies a longer period, each grant of Restricted Stock or NQSQs to a
non-employee director shall vest one year after the date of grant, provided
that the non-employee director continues to serve as a member of the Board
until the next annual meeting of shareholders, and if the non-employee
director ceases to serve as a member of the Board for such period, he or she
shall forfeit any Restricted Stock or NQSQs for which the restrictions have
not lapsed; and,
|
|
|
|
|
ii.
|
Unless the
Board determines otherwise, shares acquired pursuant to a grant of Restricted
Stock or upon exercise of an NQSO granted under this Section may not be sold
before the second anniversary of the date of grant.
|
V
ote Required
The
affirmative vote of a majority of the outstanding shares of the Companys
common stock voting at the Annual Meeting in person or by proxy is required for
approval of the proposed amendment to the Companys Stock Plan.
B
oard Voting
Recommendation
THE
BOARD OF DIRECTORS RECOMMENDS A VOTE FOR APPROVAL OF THE AMENDMENT OF THE
STOCK PLAN TO PROVIDE FOR DISCRETIONARY EQUITY AWARDS TO DIRECTORS
18
Table of Contents
S
ECTION 16(a)
BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section
16(a) of the Securities Exchange Act of 1934, as amended, requires that
executive officers and directors and beneficial holders of 10% or more of our
securities file reports of their beneficial ownership with the Securities and
Exchange Commission on Forms 3, 4 and 5. According to our records, all reports
required to be filed during the period of January 1, 2010 through December 31,
2010 were timely filed.
O
THER
INFORMATION
S
hareholder
Proposals for 2012 Annual Meeting
The
proxy rules of the Securities and Exchange Commission permit our shareholders,
after timely notice to us, to present proposals for shareholder action in our
proxy statement where these proposals are consistent with applicable law,
pertain to matters appropriate for shareholder action and are not properly
omitted by CPHC action in accordance with the Commissions proxy rules. The
next annual meeting of the shareholders of Canterbury Park Holding Corporation
is expected to be held on or about June 7, 2012 and proxy materials in
connection with that meeting are expected to be mailed on or about
April 24, 2012. Shareholder proposals prepared in accordance with the
Commissions proxy rules must be received at our corporate office, 1100
Canterbury Road, Shakopee, Minnesota 55379, Attention: President, by December
30, 2011, in order to be considered for inclusion in the Board of Directors
Proxy Statement and proxy card for the 2011 Annual Meeting of Shareholders. Any
such proposals must be in writing and signed by the shareholder.
Our
Bylaws establish an advance notice procedure with regard to (i) certain
business to be brought before an annual meeting of our shareholders and (ii)
the nomination by shareholders of candidates for election as directors.
Properly
Brought Business
. Our Bylaws provide that at the
annual meeting only such business may be conducted as is of a nature that is
appropriate for consideration at an annual meeting and has been either
specified in the notice of the meeting, otherwise properly brought before the
meeting by or at the direction of the Board of Directors, or otherwise properly
brought before the meeting by a shareholder who has given timely written notice
to the Secretary of CPHC of that shareholders intention to bring that business
before the meeting. To be timely, the notice must be given by the shareholder
to the Secretary of CPHC not less than 45 days nor more than 75 days prior to a
meeting date corresponding to the previous years annual meeting. Notice relating
to the conduct of such business at an annual meeting must contain certain
information as described in Section 2.9 of our Bylaws, which are available for
inspection by our shareholders at our principal executive offices pursuant to
Section 302A.461, subd. 4 of the Minnesota Statutes. Nothing in the Bylaws
precludes discussion by any shareholder of any business properly brought before
the annual meeting in accordance with our Bylaws.
Shareholder
Nominations
.
Our Bylaws provide that a notice of
proposed shareholder nominations for the election of directors must be timely
given in writing to the Secretary of CPHC prior to the meeting at which
directors are to be elected. To be timely, the notice must be given by a
shareholder to the Secretary of CPHC not less than 45 days nor more than 75
days prior to a meeting date corresponding to the previous years annual
meeting. The notice to us from a shareholder who intends to nominate a person
at the meeting for election as a director must contain certain information as
described in Section 3.7 of our Bylaws, which are available for inspection by
shareholders as described above. If the presiding officer of a meeting of
shareholders determines that a person was not nominated in accordance with the
foregoing procedure, that person would not be eligible for election as a
director.
A
nnual Report
The
Company is providing its annual report on Form 10-K for fiscal 2010 as filed
with the Securities and Exchange Commission with connection with paper and
electronic deliveries of this proxy statement, and it is also available at
http://www.canterburypark.com/AboutCanterbury/InvestorRelations/tabid/166/Default.aspx.
Shareholders may also request our 2010 Annual Report on Form 10-K as filed with
the Securities and Exchange Commission by writing to the Secretary of CPHC at
our address on the first page of this Proxy Statement.
19
Table of Contents
O
ther Matters
Management
knows of no other matters that will be presented at this 2011 Annual Meeting of
Shareholders. If any other matters are properly presented at the meeting, it is
intended that the shares represented by the proxies in the accompanying form
will be voted in accordance with the judgment of the persons named in the
proxy.
|
|
|
By Order of
the Board of Directors,
|
|
|
|
David C.
Hansen
|
|
Secretary
|
20
Table of Contents
|
|
CANTERBURY PARK HOLDING CORPORATION
1100 CANTERBURY ROAD
SHAKOPEE, MN 55379
|
VOTE BY INTERNET
- www.proxyvote.com
|
Use the Internet to transmit your
voting instructions and for electronic delivery of information up until 11:59
P.M. Eastern Time the day before the cut-off date or meeting date. Have your
proxy card in hand when you access the web site and follow the instructions
to obtain your records and to create an electronic voting instruction form.
|
|
ELECTRONIC
DELIVERY OF FUTURE PROXY MATERIALS
|
If you would like to reduce the
costs incurred by our company in mailing proxy materials, you can consent to
receiving all future proxy statements, proxy cards and annual reports
electronically via e-mail or the Internet. To sign up for electronic delivery,
please follow the instructions above to vote using the Internet and, when
prompted, indicate that you agree to receive or access proxy materials
electronically in future years.
|
|
VOTE BY PHONE -
1-800-690-6903
|
Use any touch-tone telephone to
transmit your voting instructions up until 11:59 P.M. Eastern Time the day
before the cut-off date or meeting date. Have your proxy card in hand when
you call and then follow the instructions.
|
|
VOTE BY MAIL
|
Mark, sign and date your proxy
card and return it in the postage-paid envelope we have provided or return it
to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717.
|
|
|
TO VOTE, MARK BLOCKS BELOW IN
BLUE OR BLACK INK AS FOLLOWS:
|
KEEP THIS PORTION FOR YOUR RECORDS
|
|
DETACH AND RETURN THIS PORTION ONLY
|
THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
All
|
Withhold
All
|
For All
Except
|
To withhold authority to vote for any individual nominee(s), mark For
All Except and write the number(s) of the nominee(s) on the line below.
|
|
|
|
|
|
|
|
|
The Board of Directors recommends
you vote
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
o
|
o
|
o
|
|
|
|
|
|
|
1.
|
Election of Directors
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nominees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
01
|
Patrick R.
Cruzen 02 Burton
F.
Dahlberg 03 Carin
J. Offerman 04 Curtis
A.
Sampson 05 Randall
D. Sampson
|
|
06
|
Dale H. Schenian
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Board of
Directors recommends you vote FOR proposals 2 and 3:
|
|
For
|
Against
|
Abstain
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.
|
Ratification of appointment of
Grant Thornton LLP as the Companys independent registered public accounting
firm for fiscal 2011.
|
|
o
|
o
|
o
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.
|
Approval of amendment of
Companys Stock Plan to permit compensation of directors through annual
discretionary awards of restricted stock and stock options.
|
|
o
|
o
|
o
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTE:
In their discretion, the proxies are authorized to vote
upon such other business as may properly come before the meeting.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THIS PROXY, IF PROPERLY EXECUTED,
WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED, IF NO
DIRECTION IS GIVEN, THIS PROXY WILL BE VOTED FOR EACH NOMINEE NAMED IN
PROPOSAL 1. PLEASE SIGN, DATE AND RETURN THIS PROXY FORM USING THE ENCLOSED
ENVELOPE.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For address change / comments, mark
here.
|
|
|
|
o
|
|
|
|
|
|
|
|
|
|
|
(see reverse for instructions)
|
|
Yes
|
No
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Please indicate if you plan to
attend this meeting
|
|
o
|
o
|
|
|
|
|
|
|
|
|
|
|
|
Please sign exactly as your
name(s) appear(s) hereon. When signing as attorney, executor, administrator, or
other fiduciary, please give full title as such. Joint owners should each
sign personally. All holders must sign. If a corporation or partnership,
please sign in full corporate or partnership name, by authorized officer.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Signature [PLEASE SIGN WITHIN
BOX]
|
Date
|
|
|
|
|
Signature (Joint Owners)
|
Date
|
|
|
|
|
|
|
0000105919_1 R1.0.0.11699
Table of Contents
CANTERBURY PARK HOLDING CORPORATION
ANNUAL MEETING OF SHAREHOLDERS
June 2, 2011
4:00 p.m. Central Daylight Time
Canterbury Park Holding Corporation
1100 Canterbury Road
Shakopee, Minnesota
|
Important Notice
Regarding the Availability of Proxy Materials for the Annual Meeting:
The
Annual Report, Notice & Proxy Statement is/are available at
www.proxyvote.com
.
|
|
|
|
|
|
|
|
Canterbury Park Holding Corporation
|
|
|
1100 Canterbury Road
|
|
|
Shakopee, Minnesota 55379
|
|
|
|
|
|
THIS
PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
|
|
|
|
|
|
The undersigned hereby appoints Patrick R. Cruzen, Carin
J. Offerman, and Randall D. Sampson, or any of them, as proxies, with full
power of substitution, to vote all the shares of common stock that the
undersigned would be entitled to vote if personally present at the Annual
Meeting of Shareholders of Canterbury Park Holding Corporation to be held
Thursday, June 2, 2011 at 4:00 p.m. Central Daylight Time at Canterbury Park,
1100 Canterbury Road, Shakopee, Minnesota 55379, or at any adjournments
thereof, upon any and all matters which may properly be brought before the
meeting or adjournment thereof, hereby revoking all former proxies.
|
|
|
|
|
|
Mark, sign and date your proxy card and return it in the
postage-paid envelope provided.
|
|
|
|
|
|
Address
change / comments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(If
you noted any Address Changes and / or Comments above, please mark
corresponding box on the reverse side.)
|
|
|
|
|
|
Continued and to be signed on reverse side
|
|
|
|
|
0000105919_2 R1.0.0.11699
Canterbury Park (NASDAQ:CPHC)
Historical Stock Chart
From May 2024 to Jun 2024
Canterbury Park (NASDAQ:CPHC)
Historical Stock Chart
From Jun 2023 to Jun 2024