Document:

cphc_Ex4_1

		
			Exhibit 4. 1
		

		
			DESCRIPTION OF THE REGISTRANT’S SECURITIES
		

		
			REGISTERED PURSUANT TO SECTION 12 OF THE
		

		
			SECURITIES EXCHANGE ACT OF 1934
		

		
			Canterbury Park Holding Corporation (“CPHC,” “we,” “our,” or “us”) has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: our common stock.
		

		
			DESCRIPTION OF CAPITAL STOCK
		

		
			The following summary of the general terms and provisions of our capital stock does not purport to be complete and is based upon and qualified by reference to our articles of incorporation and bylaws, which are either filed as exhibits to our Annual Report on Form 10-K or are incorporated by reference to our Annual Report on Form 10-K. We encourage you to read our articles of incorporation, our bylaws and the applicable provisions of the Minnesota Business Corporation Act, or MBCA, for additional information.
		

		
			Authorized Shares of Capital Stock
		

		
			The aggregate number of shares of capital stock that the Company has authority to issue is as follows:
		

		
			10,000,000 shares of common stock, par value $.01.
		

		
			Preferred Stock
		

		
			We have no preferred stock outstanding.
		

		
			Common Stock
		

		
			Holders of the Company’s  common stock are entitled to one vote for each share held of record on all matters submitted to a vote of the shareholders and do not have cumulative voting rights.  Except as otherwise provided by law, our articles of incorporation or our bylaws, matters will generally be decided by the vote of the holders of a majority of the voting power present in person or represented by proxy. Our bylaws provide that the authorized number of directors will be fixed by the shareholders at each annual meeting and that either the shareholders or the board of directors may increase or decreases the number of directors. Our board of directors is not classified.
		

		
			Holders of our common stock are entitled to receive dividends declared by our board of directors out of funds legally available for the payment of dividends. In the event of any liquidation, dissolution or winding-up of our affairs, holders of common stock will be entitled to share ratably in our assets that are remaining after payment or provision for payment of all of our debts and obligations.
		

		
			Holders of common stock have no preemptive, conversion or subscription rights, and there are no redemption provisions applicable to the common stock.
		

		
			All outstanding shares of our common stock are fully paid and nonassessable.
		

		
			 
		

		
			 
		

		
			

		 

		

		
			The transfer agent and registrar for our common stock is Equiniti Trust Company, 1110 Centre Pointe Curve, Suite 101, South St. Paul, Minnesota 55120-4100.
		

		
			Our common stock is currently listed on The NASDAQ Stock Market LLC under the trading symbol “CPHC.”
		

		
			Anti-Takeover Effects of Provisions of our Articles of Incorporation, our Bylaws and Minnesota Law
		

		
			Specific provisions of Minnesota law, our articles of incorporation and our bylaws may be deemed to have an anti-takeover effect.
		

		
			The Company’s Bylaws of the Company establish an advance notice procedure with regard to (i) certain business to be brought before an annual meeting of shareholders of the Company and (ii) the nomination by shareholders of candidates for election as directors.
		

		
			Properly Brought Business
		

		
			The 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 the Company of the shareholder’s intention to bring the business before the meeting. To be timely, the notice must be given by such shareholder to the Secretary of the Company not less than 45 days or more than 75 days prior to a meeting date corresponding to the previous year’s 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 the Company’s Bylaws, which are available for inspection by shareholders at the Company’s 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 the Company’s Bylaws.
		

		
			Shareholder Nominations
		

		
			The Bylaws provide that a notice of proposed shareholder nominations for the election of directors must be timely given in writing to the Secretary of the Company prior to the meeting at which directors are to be elected. To be timely, the notice must be given by the shareholder to the Secretary of the Company not less than 45 days or more than 75 days prior to a meeting date corresponding to the previous year’s annual meeting. The notice to the Company 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 the Company’s 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 will not be eligible for election as a director.
		

		
			Shareholder Meetings
		

		
			Under our bylaws, regular meetings of our shareholders may be called by our board of directors.  If the Board fails to designate a time for a regular meeting for any consecutive period of
		

		
			
		

		
			

		 

		

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			15 months, the board must cause such regular meeting to be called within 90 days of receipt of the written demand of any shareholder owning one percent or more of all voting shares of the corporation.
		

		
			Under our bylaws, special meetings of our shareholders may be called by the Chairman, the president, or by the Secretary upon the written request of two or more directors, or upon request by shareholders holding ten percent or more of the voting power of the shareholders. except that a special meeting for the purpose of considering any action to directly or indirectly facilitate or effect a business combination, including any action to change or otherwise affect the composition of the board of directors for that purpose, must be called by 25 percent or more of the voting power of all shares entitled to vote. Provisions of Minnesota Law.
		

		
			The following provisions of the MBCA may have an effect of delaying, deterring or preventing an unsolicited takeover of the Company or make an unsolicited takeover of the Company more difficult.
		

		
			MBCA Section 302A.553 [Power to acquire shares] subd 3, [limitation on share purchases] prohibits a publicly held corporation such as CPHC from purchasing shares entitled to vote for more than market value from a person that beneficially owns more than 5% of the voting power of the corporation if the shares have been beneficially owned for less than two years unless the purchase or agreement to purchase is approved at a meeting of shareholders by the affirmative vote of the holders of a majority of the voting power of all shares entitled to vote or the corporation makes an offer, of at least equal value per share, to all shareholders for all other shares of that class or series and any other class or series into which they may be converted.
		

		
			MBCA Section 302A.671 [Control share acquisitions] provides that shares of an “issuing public corporation,” acquired by an “acquiring person” in a “control share acquisition” that exceed the threshold of voting power of any of the three ranges identified below will not have voting rights, unless the issuing public company’s shareholders vote to accord these shares the voting rights normally associated with these shares. A “control share acquisition” is an acquisition, directly or indirectly, by an “acquiring person” (as defined in the MBCA) of beneficial ownership of shares of an issuing public corporation that, but for Section 302A.671, would, when added to all other shares of the issuing public corporation beneficially owned by the acquiring person, entitle the acquiring person, immediately after the acquisition, to exercise or direct the exercise of a new range of voting power of the issuing public corporation with any of the following three ranges: (i) at least 20 percent but less than 33-1/3 percent; (ii) at least 33-1/3 percent but less than or equal to 50 percent; and (iii) over 50 percent. The issuing public company also has an option to call for redemption all, but not less than all, shares acquired in the control share acquisition that exceed the threshold of voting power of any of the specified ranges at a price equal to the fair market value of the shares at the time the call is given if (i) the acquiring person fails to deliver the information statement to the issuing public company by the tenth day after the control share acquisition; or (ii) shareholders have voted not to accord voting rights to the shares acquired in the control share acquisition.
		

		
			MBCA Section 302A.673 [Business combinations] prohibits a public Minnesota corporation, from engaging in a business combination with an interested shareholder for a period of four years after the date of the transaction in which the person became an interested shareholder, unless either
		

		
			
		

		
			

		 

		

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			(i) the business combination or (ii) the acquisition by which the person becomes an interested shareholder is approved in a prescribed manner before the person became an interested shareholder. The term “business combination” includes mergers, asset sales and other transactions resulting in a financial benefit to the interested shareholder. An “interested shareholder” is a person who is the beneficial owner, directly or indirectly, of 10% or more of a corporation’s voting stock, or who is an affiliate or associate of the corporation, and who, at any time within four years before the date in question, was the beneficial owner, directly or indirectly, of 10% or more of the corporation’s outstanding voting stock.
		

		
			If a takeover offer is made for our stock, MBCA Section 302A.675 [Takeover offer; fair price] precludes the offeror from acquiring additional shares of stock (including in acquisitions pursuant to mergers, consolidations or statutory share exchanges) within two years following the completion of the takeover offer, unless shareholders selling their shares in the later acquisition are given the opportunity to sell their shares on terms that are substantially the same as those contained in the earlier takeover offer. A “takeover offer” is a tender offer that results in an offeror who owned ten percent or less of a class of our shares acquiring more than ten percent of that class, or that results in the offeror increasing its beneficial ownership of a class of our shares by more than ten percent of the class, if the offeror owned ten percent or more of the class before the takeover offer. Section 302A.675 does not apply if a committee of our board of directors formed in accordance with Section 302A.675 approves the proposed acquisition before any shares are acquired pursuant to the earlier tender offer.
		

		 

		

			4ex4-1

 

EXHIBIT 4.1

 

THIS PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS AND
MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED, ASSIGNED OR OTHERWISE
DISPOSED OF, AND NO TRANSFER OF THIS PROMISSORY NOTE WILL BE MADE
BY THE COMPANY OR ITS TRANSFER AGENT IN THE ABSENCE OF SUCH
REGISTRATION OR AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY
THAT SUCH REGISTRATION IS NOT REQUIRED.

 

18% SENIOR SECURED PROMISSORY NOTE

 

 

	
$1,000,000.00 

	
  Chula Vista,
California

	
 

	
   Issue Date: March
20, 2020

 

 

FOR VALUE RECEIVED, Youngevity
International, Inc., a Delaware corporation (the
“Company”), with its principal place of business at
2400 Boswell Road, Chula Vista, California 91914, its successors
and assigns (the “Company”), promises to pay to the
order of Daniel Mangless (“Payee”), having an address at
________________ ___________________________, the principal sum of
One Million Dollars ($1,000,000) on March 20, 2021 (the
“Maturity
Date”), "), together with interest on the principal
amount hereof at the rate of 18% per annum, payable quarterly, on
the last day of each calendar quarter, commencing on March 31,
2020. Payments on both principal and interest are to be made in
lawful money of the United States of America unless Payee agrees to
another form of payment.

 

1. This Note is
secured by and entitled to the benefit of a first priority lien
granted by the Company’s subsidiary, CLR Roasters, LLC, a
Florida limited liability company (“CLR”), on physical coffee and
related receivables of its coffee division, as set forth in a
Pledge and Security Agreement, dated as of the date hereof, by and
among the Payee, CLR and the Company (the “Pledge Agreement”), to which
Pledge Agreement reference is hereby made for a description of the
collateral accepted as security for this Note, and the nature and
extent of the security and the rights of the Payee.

 

2. This Note is one of
a series of up to Five Million ($5,000,000) of notes being issued
by and among the Company and certain note investors (the
“Investors”) as
part of a private offering to institutional and accredited
investors. This Note and all obligations hereunder, and the other
Notes issued as part of this series to the Investors and all
obligations thereunder, respectively, shall rank pari passu with each
other.

 

3. As used herein, a
“Default” means
a material default by the Company of this Note, the Note Purchase
Agreement dated the date hereof between the Company and Payee, or
the Pledge Agreement issued by the Company to Payee on the date
hereof. Amounts not paid when due hereunder shall bear interest
from the due date until such amounts are paid at the rate of
eighteen percent (18%) per annum; provided, however, that in the event such
interest rate would violate any applicable usury law, the default
rate shall be the highest lawful interest rate permitted under such
usury law. Upon the occurrence of a Default and receipt of written
notice by the Company from Payee of such Default, the principal and
interest due hereunder shall be immediately due and payable by the
Company to Payee.

 

4. Presentment,
demand, protest or notice of any kind are hereby waived by the
Company. The Company may not set off against any amounts due to
Payee hereunder any claims against Payee or other amounts owed by
Payee to the Company.

 

5. All rights and
remedies of Payee under this Note are cumulative and in addition to
all other rights and remedies available at law or in equity, and
all such rights and remedies may be exercised singly, successively
and/or concurrently. Failure to exercise any right or remedy shall
not be deemed a waiver of such right or remedy.

 

6. The Company agrees
to pay all reasonable costs of collection, including attorneys'
fees which may be incurred in the collection of this Note or any
portion thereof and, in case an action is instituted for such
purposes, the amount of all attorneys' fees shall be such amount as
the court shall adjudge reasonable.

 

7. This Note is made
and delivered in, and shall be governed, construed and enforced
under the laws of the State of California.

 

8. This Note shall be
subject to prepayment, at the option of the Company, in whole or in
part, at any time and from time to time, without premium or
penalty.

 

9. This Note or any
benefits or obligations hereunder may not be assigned or
transferred by the Company.

 

YOUNGEVITY
INTERNATIONAL, INC.

 

 

By:
/s/David
Briskie

David
Briskie

President

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