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Exhibit 4.1    
  

 
 

AMENDED AND RESTATED CANTERBURY PARK HOLDING CORPORATION
  1994 STOCK PLAN    
  

As Amended through June 6, 2002  

	SECTION
 
	 	CONTENTS
	 	PAGE

	

1.	
 	

General Purpose of Plan; Definitions	
 	

2
	

2.	
 	

Administration	
 	

3
	

3.	
 	

Stock Subject to Plan	
 	

4
	

4.	
 	

Eligibility	
 	

4
	

5.	
 	

Stock Options	
 	

4
	

6.	
 	

Stock Appreciation Rights	
 	

7
	

7.	
 	

Restricted Stock	
 	

8
	

8.	
 	

Deferred Stock Awards	
 	

9
	

9.	
 	

Transfer, Leave of Absence, etc.	
 	

10
	

10.	
 	

Amendments and Termination	
 	

10
	

11.	
 	

Unfunded Status of Plan	
 	

11
	

12.	
 	

General Provisions	
 	

11
	

13.	
 	

Effective Date of Plan	
 	

12

 
AMENDED AND RESTATED CANTERBURY PARK HOLDING CORPORATION

1994 STOCK PLAN  

        SECTION
1.    General Purpose of Plan; Definitions.    

        The
name of this plan is the Canterbury Park Holding Corporation 1994 Stock Plan (the "Plan"). The purpose of the Plan is to enable Canterbury Park Holding Corporation (the "Company")
and its Subsidiaries, if any, to retain and attract executives, other key employees, non-employee directors and others who contribute to the Company's success by their ability, ingenuity
and industry, and to enable such persons to participate in the long-term success and growth of the Company by giving them a proprietary interest in the Company. 

        For
purposes of the Plan, the following terms shall be defined as set forth below: 

        a.    "Board" means the Board of Directors of the Company. 

        b.    "Cause" means a felony conviction of a participant or the failure of a participant to contest prosecution for a felony, or
a participant's willful misconduct or dishonesty, any of which is directly and materially harmful to the business or reputation of the Company. 

        c.    "Code" means the Internal Revenue Code of 1986, as amended. 

        d.    "Committee" means the Committee referred to in Section 2 of the Plan. If at any time no Committee shall be in
office, then the functions of the Committee specified in the Plan shall be exercised by the Board, unless the Plan specifically states otherwise. 

        e.    "Company" means the Canterbury Park Holding Corporation, a corporation organized under the laws of the State of Minnesota
(or any successor corporation). 

        f.      "Deferred Stock" means an award made pursuant to Section 8 below of the right to receive Stock at the end of a
specified deferral period. 

        g.    "Disability" means permanent and total disability as determined by the Committee. 

        h.    "Disinterested Person" shall have the meaning set forth in Rule 16b-3(d)(3) as promulgated by the
Securities and Exchange Commission under the Securities Exchange Act of 1934, or any successor definition adopted by the Commission. 

        i.      "Early Retirement" means retirement, with consent of the Committee at the time of retirement, from active employment with
the Company or any Subsidiary or Parent Corporation of the Company. 

        j.      "Fair Market Value" means the value of the Stock on a given date as determined by the Committee in accordance with the
applicable Treasury Department regulations under Section 422 of the Code with respect to "incentive stock options." 

        k.    "Incentive Stock Option" means any Stock Option intended to be and designated as an "Incentive Stock Option" within the
meaning of Section 422 of the Code. 

        l.      "Non-Employee Director" means any member of the Board who is not an employee of the Company, any Parent
Corporation or Subsidiary. 

        m.    "Non-Qualified Stock Option" means any Stock Option that is not an Incentive Stock Option, and is intended to
be and is designated as a "Non-Qualified Stock Option." 

        n.    "Normal Retirement" means retirement from active employment with the Company and any Subsidiary or Parent Corporation of
the Company on or after age 60. 

2

 

        o.    "Parent Corporation" means any corporation (other than the Company) in an unbroken chain of corporations ending with the
Company if each of the corporations (other than the Company) owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in the chain. 

        p.    "Restricted Stock" means an award of shares of Stock that are subject to restrictions under Section 7 below. 

        q.    "Retirement" means Normal Retirement or Early Retirement. 

        r.    "Stock" means the Common Stock, $.01 par value per share, of the Company. 

        s.    "Stock Appreciation Right" means the right pursuant to an award granted under Section 6 below to surrender to the
Company all or a portion of a Stock Option in exchange for an amount equal to the difference between (i) the Fair Market Value, as of the date such Stock Option or such portion thereof is
surrendered, of the shares of Stock covered by such Stock Option or such portion thereof, and (ii) the aggregate exercise price of such Stock Option or such portion thereof. 

        t.      "Stock Option" means any option to purchase shares of Stock granted pursuant to Section 5 below. 

        u.    "Subsidiary" means any corporation (other than the Company) in an unbroken chain of corporations beginning with the
Company if each of the corporations (other than the last corporation in the unbroken chain) owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the
other corporations in the chain. 

        SECTION
2.    Administration.    

        The
Plan shall be administered by the Board of Directors or by a Committee of not less than three Disinterested Persons, who shall be appointed by the Board of Directors of the Company
and who shall serve at the pleasure of the Board. If such a Committee is not appointed, each and every reference to "Committee" herein shall mean the Board of Directors of the Company. 

        The
Committee shall have the power and authority to grant to eligible employees, pursuant to the terms of the Plan: (i) Stock Options, (ii) Stock Appreciation Rights,
(iii) Restricted Stock, or (iv) Deferred Stock awards. 

        In
particular, the Committee shall have the authority: 

          (i)  to
select the officers and other key employees of the Company and its Subsidiaries to whom Stock Options, Stock Appreciation Rights, Restricted Stock and/or Deferred
Stock awards may from time to time be granted hereunder; 

        (ii)  to
determine whether and to what extent Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights, Restricted Stock or Deferred Stock
awards, or a combination of the foregoing, are to be granted hereunder; 

        (iii)  to
determine the number of shares to be covered by each such award granted hereunder; 

        (iv)  to
determine the terms and conditions, not inconsistent with the terms of the Plan, of any award granted hereunder (including, but not limited to, any restriction on
any Stock Option or other award and/or the shares of Stock relating thereto), which authority shall be exclusively vested in the Committee (and not the Board) for purposes of establishing performance
criteria used with Restricted Stock and Deferred Stock awards; and 

        (v)  to
determine whether, to what extent and under what circumstances Stock and other amounts payable with respect to an award under this Plan shall be deferred either
automatically or at the election of the participant. 

3

 

        The
Committee shall have the authority to adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan as it shall, from time to time, deem advisable;
to interpret the terms and provisions of the Plan and any award issued under the Plan (and any agreements relating thereto); and to otherwise supervise the administration of the Plan. The Committee
may delegate its authority to officers of the Company for the purpose of selecting employees who are not officers of the Company for purposes of (i) above. 

        All
decisions made by the Committee pursuant to the provisions of the Plan shall be final and binding on all persons, including the Company and Plan participants. 

        SECTION
3.    Stock Subject to Plan.    

        The
total number of shares of Stock reserved and available for distribution under the Plan shall be 1,150,000.(1) Such shares may consist, in whole or in part, of authorized and unissued
shares. 

	(1)
	Amended
 June, 1997 to increase authorized shares from 250,000 to 500,000; amended June, 1999 to increase authorized shares to 850,000; further amendment to increase authorized shares
to 1,150,000 adopted June 6, 2002. 

        Subject
to paragraph (b)(iv) of Section 6 below, if any shares that have been optioned ceased to be subject to Options, or if any shares subject to any Restricted
Stock or Deferred Stock award granted hereunder are forfeited or such award otherwise terminates without a payment being made to the participant, such shares shall again be available for distribution
in connection with future awards under the Plan. 

        In
the event of any merger, reorganization, consolidation, recapitalization, stock dividend, other change in corporate structure affecting the Stock, or spin-off or other
distribution of assets to shareholders, such substitution or adjustment shall be made in the aggregate number of shares reserved for issuance under the Plan, in the number and option price of shares
subject to outstanding options granted under the Plan, and in the number of shares subject to Restricted Stock or Deferred Stock awards granted under the Plan as may be determined to be appropriate by
the Committee, in its sole discretion, provided that the number of shares subject to any award shall always be a whole number. Such adjusted option price shall also be used to determine the amount
payable by the Company upon the exercise of any Stock Appreciation Right associated with any Option. 

        SECTION
4.    Eligibility.    

        Officers,
other key employees of the Company and Subsidiaries and Non-Employee Directors, and consultants and other persons having a contractual relationship with the Company
or its Subsidiaries who are responsible for or contribute to the management, growth and/or profitability of the business of the Company and its Subsidiaries are eligible to be granted Stock Options,
Stock Appreciation Rights, Restricted Stock or Deferred Stock awards under the Plan. Except for Non-Employee Directors, whose participation in the Plan shall be limited as provided in
paragraph (k) of Section 5, the optionees and participants under the Plan shall be selected from time to time by the Committee, in its sole discretion, from among those eligible, and the
Committee shall determine, in its sole discretion, the number of shares covered by each award. 

        SECTION
5.    Stock Options.    

        Any
Stock Option granted under the Plan shall be in such form as the Committee may from time to time approve. 

        The
Stock Options granted under the Plan may be of two types: (i) Incentive Stock Options and (ii) Non-Qualified Stock Options. No Incentive Stock Options shall
be granted under the Plan after June 1, 2004. 

4

 

        The
Committee shall have the authority to grant any optionee Incentive Stock Options, Non-Qualified Stock Options, or both types of options (in each case with or without
Stock Appreciation Rights). To the extent that any option does not qualify as an Incentive Stock Option, it shall constitute a separate Non-Qualified Stock Option. 

        Anything
in the Plan to the contrary notwithstanding, no term of this Plan relating to Incentive Stock Options shall be interpreted, amended or altered, nor shall any discretion or
authority granted under the Plan be so exercised, so as to disqualify either the Plan or any Incentive Stock Option under Section 422 of the Code. The preceding sentence shall not preclude any
modification or amendment to an outstanding Incentive Stock Option, whether or not such modification or amendment results in disqualification of such Option as an Incentive Stock Option, provided the
optionee consents in writing to the modification or amendment. 

        Options
granted under the Plan shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan,
as the Committee shall deem desirable. 

        (a)    Option Price.    The option price per share of Stock purchasable under a Stock Option shall be determined by
the Committee at the time of grant. In no event shall the option price per share of Stock purchasable under an Incentive Stock Option or a Non-Qualified Stock Option be less than 100% of
the Fair Market Value of the Stock on the date of the grant of the option. If an employee owns or is deemed to own (by reason of the attribution rules applicable under Section 425(d) of the
Code) more than 10% of the combined voting power of all classes of stock of the Company or any Parent Corporation or Subsidiary and an Incentive Stock Option is granted to such employee, the option
price shall be no less than 110% of the Fair Market Value of the Stock on the date the option is granted. 

        (b)    Option Term.    The term of each Stock Option shall be fixed by the Committee, but no Incentive Stock Option
shall be exercisable more than ten years after the date the option is granted. If an employee owns or is deemed to own (by reason of the attribution rules of Section 425(d) of the Code) more
than 10% of the combined voting power of all classes of stock of the Company or any Parent Corporation or Subsidiary and an Incentive Stock Option is granted to such employee, the term of such option
shall be no more than five years from the date of grant. 

        (c)    Exercisability.    Stock Options shall be exercisable at such time or times as determined by the Committee at
or after grant. If the Committee provides, in its discretion, that any option is exercisable only in installments, the Committee may waive such installment exercise provisions at any time.
Notwithstanding the foregoing, unless the Stock Option Agreement provides otherwise, any Stock Option granted under this Plan shall be exercisable in full, without regard to any installment exercise
provisions, for a period specified by the Company, but not to exceed sixty (60) days, prior to the occurrence of any of the following events: (i) dissolution or liquidation of the
Company other than in conjunction with a bankruptcy of the Company or any similar occurrence, (ii) any merger, consolidation, acquisition, separation, reorganization, or similar occurrence,
where the Company will not be the surviving entity or (iii) the transfer of substantially all of the assets of the Company or 75% or more of the outstanding Stock of the Company. 

        (d)    Method of Exercise.    Stock Options may be exercised in whole or in part at any time during the option period
by giving written notice of exercise to the Company specifying the number of shares to be purchased. Such notice shall be accompanied by payment in full of the purchase price, either by certified or
bank check, or by any other form of legal consideration deemed sufficient by the Committee and consistent with the Plan's purpose and applicable law, including promissory notes or a properly executed
exercise notice together with irrevocable instructions to a broker acceptable to the Company to promptly deliver to the Company the amount of sale or loan proceeds to pay the exercise price. As
determined by the Committee, in its sole discretion, payment in full or in part may also be 

5

 

made in the form of unrestricted Stock already owned by the optionee or, in the case of the exercise of a Non-Qualified Stock Option, Restricted Stock or Deferred Stock subject to an
award hereunder (based, in each case, on the Fair Market Value of the Stock on the date the option is exercised, as determined by the Committee), provided, however, that, in the case of an Incentive
Stock Option, the right to make a payment in the form of already owned shares may be authorized only at the time the option is granted, and provided further that in the event payment is made in the
form of shares of Restricted Stock or a Deferred Stock award, the optionee will receive a portion of the option shares in the form of, and in an amount equal to, the Restricted Stock or Deferred Stock
award tendered as payment by the optionee. If the terms of an option so permit, an optionee may elect to pay all or part of the option exercise price by having the Company withhold from the shares of
Stock that would otherwise be issued upon exercise that number of shares of Stock having a Fair Market Value equal to the aggregate option exercise price for the shares with respect to which such
election is made. No shares of Stock shall be issued until full payment therefor has been made. An optionee shall generally have the rights to dividends and other rights of a shareholder with respect
to shares subject to the option when the optionee has given written notice of exercise, has paid in full for such shares, and, if requested, has given the representation described in
paragraph (a) of Section 12. 

        (e)    Non-transferability of Options.    No Stock Option shall be transferable by the optionee otherwise
than by will or by the laws of descent and distribution, and all Stock Options shall be exercisable, during the optionee's lifetime, only by the optionee. 

        (f)    Termination by Death.    If an optionee's employment by the Company and any Subsidiary or Parent Corporation
terminates by reason of death, the Stock Option may thereafter be immediately exercised, to the extent then exercisable (or on such accelerated basis as the Committee shall determine at or
after grant), by the legal representative of the estate or by the legatee of the optionee under the will of the optionee, for a period of three years (or such shorter period as the Committee shall
specify at grant) from the date of such death or until the expiration of the stated term of the option, whichever period is shorter. 

        (g)    Termination by Reason of Disability.    If an optionee's employment by the Company and any Subsidiary or Parent
Corporation terminates by reason of Disability, any Stock Option held by such optionee may thereafter be exercised, to the extent it was exercisable at the time of termination due to Disability (or on
such accelerated basis as the Committee shall determine at or after grant), but may not be exercised after three years (or such shorter period as the Committee shall specify at grant) from the date of
such termination of employment or the expiration of the stated term of the option, whichever period is the shorter. In the event of termination of employment by reason of Disability, if an Incentive
Stock Option is exercised after the expiration of the exercise periods that apply for purposes of Section 422 of the Code, the option will thereafter be treated as a Non-Qualified
Stock Option. 

        (h)    Termination by Reason of Retirement.    If an optionee's employment by the Company and any Subsidiary or Parent
Corporation terminates by reason of Retirement, any Stock Option held by such optionee may thereafter be exercised to the extent it was exercisable at the time of such Retirement, but may not be
exercised after three years (or such shorter period as Committee shall specify at grant) from the date of such termination of employment or the expiration of the stated term of the option, whichever
period is the shorter. In the event of termination of employment by reason of Retirement, if an Incentive Stock Option is exercised after the expiration of the exercise periods that apply for purposes
of Section 422 of the Code, the option will thereafter be treated as a Non-Qualified Stock Option. 

        (i)    Other Termination.    Unless otherwise determined by the Committee, if an optionee's employment by the Company
and any Subsidiary or Parent Corporation terminates for any reason other than death, Disability or Retirement, the Stock Option shall thereupon terminate, except that the 

6

 

option may be exercised to the extent it was exercisable at such termination for the lesser of three months or the balance of the option's term if the optionee is involuntarily terminated without
Cause by the Company and any Subsidiary or Parent Corporation. 

        (j)    Annual Limit on Incentive Stock Options.    The aggregate Fair Market Value (determined as of the time the
Option is granted) of the Common Stock with respect to which an Incentive Stock Option under this Plan or any other plan of the Company and any Subsidiary or Parent Corporation is exercisable for the
first time by an optionee during any calendar year shall not exceed $100,000. 

        (k)    Non-Employee Directors.    Each Non-Employee Director shall be automatically granted an
option to purchase 2,500 shares upon first being elected to the Board. In addition, each Non-Employee Director on January 31 of each calendar year who has served in that capacity
during at least the six preceding months shall automatically be granted an Option to purchase 3000(2) shares of Stock on the first
business day of February immediately following (the "Grant Date") at an option price per share equal to 100% of fair market value as defined in this sub-section (k), except that the
automatic grant to be granted on February 4, 2002 shall be 2000 shares.(3) For purposes of this sub-section (k) only, "fair market value" shall mean the average closing price
per share of the Company's Stock during the month of January immediately preceding the Grant Date in the principal trading market or exchange for the Company's stock. All such Options shall be
designated as Non-Qualified Options and shall be subject to the same terms and provisions as are then in effect with respect to the granting of Non-Qualified Options to
officers and key employees of the Company, except that (i) the term of each such Option shall be equal to ten (10) years, which term shall not expire upon the termination of service as a
director, (ii) the Option shall become exercisable as to all or any part of the shares subject to the Option beginning six (6) months after the date the Option is granted, and
(iii) no Stock Appreciation Rights may be granted to any Non-Employee Director under this paragraph (k) or in any other manner under this Plan. Subject to the foregoing, all
provisions of this Plan not inconsistent with the foregoing shall apply to Options granted to Non-Employee Directors. 

	(2)
	Amended
June, 1996 to increase share grant from 1000 to 2000 shares, amended June, 2000 to increase share grant to 3000 shares.

	(3)
	Amended
pursuant to section 302A.239 of th4 Minnesota Business Corporation Act, to be effective January 30, 2002. 

        SECTION
6.    Stock Appreciation Rights.    

        (a)    Grant and Exercise.    Except as set forth in paragraph (k) of Section 5, Stock Appreciation
Rights may be granted in conjunction with all or part of any Stock Option granted under the Plan. In the case of a Non-Qualified Stock Option, such rights may be granted either at or after
the time of the grant of such Option. In the case of an Incentive Stock Option, such rights may be granted only at the time of the grant of the option. 

        A
Stock Appreciation Right or applicable portion thereof granted with respect to a given Stock Option shall terminate and no longer be exercisable upon the termination or exercise of the
related Stock Option, except that a Stock Appreciation Right granted with respect to less than the full number of shares covered by a related stock Option shall not be reduced until the exercise or
termination of the related Stock Option exceeds the number of shares not covered by the Stock Appreciation Right. 

        A
Stock Appreciation Right may be exercised by an optionee, in accordance with paragraph (b) of this Section 6, by surrendering the applicable portion of the related Stock
Option. Upon such exercise and surrender, the optionee shall be entitled to receive an amount determined in the manner prescribed in
paragraph (b) of this Section 6. Stock Options which have been so surrendered, in whole or in part, shall no longer be exercisable to the extent the related Stock Appreciation Rights
have been exercised. 

7

 

        (b)    Terms and Conditions.    Stock Appreciation Rights shall be subject to such terms and conditions, not
inconsistent with the provisions of the Plan, as shall be determined from time to time by the Committee, including the following: 

          (i)  Stock
Appreciation Rights shall be exercisable only at such time or times and to the extent that the Stock Options to which they relate shall be exercisable in
accordance with the provisions of Section 5 and this Section 6 of the Plan. 

        (ii)  Upon
the exercise of a Stock Appreciation Right, an optionee shall be entitled to receive up to, but not more than, an amount in cash or shares of Stock equal in value
to the excess of the Fair Market Value of one share of Stock over the option price per share specified in the related option multiplied by the number of shares in respect of which the Stock
Appreciation Right shall have been exercised, with the Committee having the right to determine the form of payment. 

        (iii)  Stock
Appreciation Rights shall be transferable only when and to the extent that the underlying Stock Option would be transferable under Section 5 of the Plan. 

        (iv)  Upon
the exercise of a Stock Appreciation Right, the Stock Option or part thereof to which such Stock Appreciation Right is related shall be deemed to have been
exercised for the purpose of the limitation set forth in Section 3 of the Plan on the number of shares of Stock to be issued under the Plan, but only to the extent of the number of shares
issued or issuable under the Stock Appreciation Right at the time of exercise based on the value of the Stock Appreciation Right at such time. 

        (v)  A
Stock Appreciation Right granted in connection with an Incentive Stock Option may be exercised only if and when the market price of the Stock subject to the Incentive
Stock Option exceeds the exercise price of such Option. 

        SECTION
7.    Restricted Stock.    

        (a)    Administration.    Shares of Restricted Stock may be issued either alone or in addition to other awards granted
under the Plan. The Committee shall determine the officers and key employees of the
Company and Subsidiaries to whom, and the time or times at which, grants of Restricted Stock will be made, the number of shares to be awarded, the time or times within which such awards may be subject
to forfeiture, and all other conditions of the awards. The Committee may also condition the grant of Restricted Stock upon the attainment of specified performance goals. The provisions of Restricted
Stock awards need not be the same with respect to each recipient. 

        (b)    Awards and Certificates.    The prospective recipient of an award of shares of Restricted Stock shall not have
any rights with respect to such award, unless and until such recipient has executed an agreement evidencing the award and has delivered a fully executed copy thereof to the Company, and has otherwise
complied with the then applicable terms and conditions. 

          (i)  Each
participant shall be issued a stock certificate in respect of shares of Restricted Stock awarded under the Plan. Such certificate shall be registered in the name
of the participant, and shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such award, substantially in the following form: 

                "The
transferability of this certificate and the shares of stock represented hereby are subject to the terms and conditions (including forfeiture) of the Canterbury Park
Holding Corporation 1994 Stock Plan and an Agreement entered into between the registered owner and Canterbury Park Holding Corporation. Copies of such Plan and Agreement are on file in the offices of
Canterbury Park Holding Corporation, 1100 Canterbury Drive, Shakopee, Minnesota 55379." 

        (ii)  The
Committee shall require that the stock certificates evidencing such shares be held in custody by the Company until the restrictions thereon shall have lapsed, and
that, as a condition of any 

8

 

Restricted Stock award, the participant shall have delivered a stock power, endorsed in blank, relating to the Stock covered by such award. 

        (c)    Restrictions and Conditions.    The shares of Restricted Stock awarded pursuant to the Plan shall be subject to
the following restrictions and conditions: 

          (i)  Subject
to the provisions of this Plan and the award agreement, during a period set by the Committee commencing with the date of such award (the "Restriction Period"),
the participant shall not be permitted to sell, transfer, pledge or assign shares of Restricted Stock awarded under the Plan. In no event shall the Restriction Period be less than one (1) year.
Within these limits, the Committee may provide for the lapse of such restrictions in installments where deemed appropriate. 

        (ii)  Except
as provided in paragraph (c)(i) of this Section 7, the participant shall have, with respect to the shares of Restricted Stock, all of the
rights of a shareholder of the Company, including the right to vote the shares and the right to receive any cash dividends. The Committee, in its sole discretion, may permit or require the payment of
cash dividends to be deferred and, if the Committee so determines, reinvested in additional shares of Restricted Stock (to the extent shares are available under Section 3 and subject to
paragraph (f) of Section 12). Certificates for shares of unrestricted Stock shall be delivered to the grantee promptly after, and only after, the period of forfeiture shall have expired
without forfeiture in respect of such shares of Restricted Stock. 

        (iii)  Subject
to the provisions of the award agreement and paragraph (c)(iv) of this Section 7, upon termination of employment for any reason during the
Restriction Period, all shares still subject to restriction shall be forfeited by the participant. 

        (iv)  In
the event of special hardship circumstances of a participant whose employment is terminated (other than for Cause), including death, Disability or Retirement, or in
the event of an unforeseeable emergency of a participant still in service, the Committee may, in its sole discretion, when it finds that a waiver would be in the best interest of the Company, waive in
whole or in part any or all remaining restrictions with respect to such participant's shares of Restricted Stock. 

        (v)  Notwithstanding
the foregoing, all restrictions with respect to any participant's shares of Restricted Stock shall lapse, on the date determined by the Committee, prior
to, but in no event more than sixty (60) days prior to, the occurrence of any of the following events: (i) dissolution or liquidation of the Company, other than in conjunction with a
bankruptcy of the Company or any similar occurrence, (ii) any merger, consolidation, acquisition, separation, reorganization, or similar occurrence, where the Company will not be the surviving
entity or (iii) the transfer of substantially all of the assets of the Company or 75% or more of the outstanding Stock of the Company. 

        SECTION
8.    Deferred Stock Awards.    

        (a)    Administration.    Deferred Stock may be awarded either alone or in addition to other awards granted under the
Plan. The Committee shall determine the officers and key employees of the Company and Subsidiaries to whom and the time or times at which Deferred Stock shall be awarded, the number of Shares of
Deferred Stock to be awarded to any participant or group of participants, the duration of the period (the "Deferral Period") during which, and the conditions under which, receipt of the Stock will be
deferred, and the terms and conditions of the award in addition to those contained in paragraph (b) of this Section 8. The Committee may also condition the grant of Deferred Stock upon
the attainment of specified performance goals. The provisions of Deferred Stock awards need not be the same with respect to each recipient. 

        (b)    Terms and Conditions.    

          (i)  Subject
to the provisions of this Plan and the award agreement, Deferred Stock awards may not be sold, assigned, transferred, pledged or otherwise encumbered during the
Deferral Period. In no event shall the Deferral Period be less than one (1) year. At the expiration of the Deferral Period (or 

9

 

Elective Deferral Period, where applicable), share certificates shall be delivered to the participant, or his legal representative, in a number equal to the shares covered by the Deferred Stock
award. 

        (ii)  Amounts
equal to any dividends declared during the Deferral Period with respect to the number of shares covered by a Deferred Stock award will be paid to the
participant currently or deferred and deemed to be reinvested in additional Deferred Stock or otherwise reinvested, all as determined at the time of the award by the Committee, in its sole discretion. 

        (iii)  Subject
to the provisions of the award agreement and paragraph (b)(iv) of this Section 8, upon termination of employment for any reason during the
Deferral Period for a given award, the Deferred Stock in question shall be forfeited by the participant. 

        (iv)  In
the event of special hardship circumstances of a participant whose employment is terminated (other than f or Cause) including death, Disability or Retirement, or in
the event of an unforeseeable emergency of a participant still in service, the Committee may, in its sole discretion, when it finds that a waiver would be in the best interest of the Company, waive in
whole or in part any or all of the remaining deferral limitations imposed hereunder with respect to any or all of the participant's Deferred Stock. 

        (v)  A
participant may elect to further defer receipt of the award for a specified period or until a specified event (the "Elective Deferral Period"), subject in each case to
the Committee's approval and to such terms as are determined by the Committee, all in its sole discretion. Subject to any exceptions adopted by the Committee, such election must generally be made
prior to completion of one half of the Deferral Period for a Deferred Stock award (or for an installment of such an award). 

        (vi)  Each
award shall be confirmed by, and subject to the terms of, a Deferred Stock agreement executed by the Company and the participant. 

        SECTION
9.    Transfer, Leave of Absence, etc.    

        For
purposes of the Plan, the following events shall not be deemed a termination of employment: 

        (a)  a
transfer of an employee from the Company to a Parent Corporation or Subsidiary, or from a Parent Corporation or Subsidiary to the Company, or from one Subsidiary to
another; 

        (b)  a
leave of absence, approved in writing by the Committee, for military service or sickness, or for any other purpose approved by the Company if the period of such leave
does not exceed ninety (90) days (or such longer period as the Committee may approve, in its sole discretion); and 

        (c)  a
leave of absence in excess of ninety (90) days, approved in writing by the Committee, but only if the employee's right to reemployment is guaranteed either by a
statute or by contract, and provided that, in the case of any leave of absence, the employee returns to work within 30 days after the end of such leave. 

        SECTION
10.    Amendments and Termination.    

        The
Board may amend, alter, or discontinue the Plan, but no amendment, alteration, or discontinuation shall be made (i) which would impair the rights of an optionee or participant
under a Stock Option, Stock Appreciation Right, Restricted Stock, Deferred Stock or other Stock-based award theretofore granted, without the optionee's or participant's consent, or (ii) which
without the approval of the stockholders of the Company would cause the Plan to no longer comply with Rule 16b-3 under the Securities Exchange Act of 1934, Section 422 of the
Code or any other regulatory requirements. 

        The
Committee may amend the terms of any award or option theretofore granted, prospectively or retroactively, but, subject to Section 3 above, no such amendment shall impair the
rights of any holder without his consent. The Committee may also substitute new Stock Options for previously granted options, including previously granted options having higher option prices. 

10

 

        SECTION
11.    Unfunded Status of Plan.    

        The
Plan is intended to constitute an "unfunded" plan for incentive and deferred compensation. With respect to any payments not yet made to a participant or optionee by the Company,
nothing contained herein shall give any such participant or optionee any rights that are greater than those of a general creditor of the Company. In its sole discretion, the Committee may authorize
the creation of trusts or other arrangements to meet the obligations created under the Plan to deliver Stock or payments in lieu of or with respect to awards hereunder, provided, however, that the
existence of such trusts or other arrangements is consistent with the unfunded status of the Plan. 

        SECTION
12.    General Provisions.    

        (a)  The
Committee may require each person purchasing shares pursuant to a Stock Option under the Plan to represent to and agree with the Company in writing that the optionee
is acquiring the shares without a view to distribution thereof. The certificates for such shares may include any legend which the Committee deems appropriate to reflect any restrictions on transfer. 

        All
certificates for shares of Stock delivered under the Plan pursuant to any Restricted Stock, Deferred Stock or other Stock-based awards shall be subject to such stock-transfer orders
and other restrictions as the Committee may deem advisable under the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Stock is
then listed, and any applicable Federal or state securities laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 

        (b)  Subject
to paragraph (d) below, recipients of Restricted Stock, Deferred Stock and other Stock-based awards under the Plan (other than Stock Options) are not
required to make any payment or provide consideration other than the rendering of services. 

        (c)  Nothing
contained in this Plan shall prevent the Board of Directors from adopting other or additional compensation arrangements, subject to stockholder approval if such
approval is required; and such arrangements may be either generally applicable or applicable only in specific cases. The adoption of the Plan shall not confer upon any employee of the Company or any
Subsidiary any right to continued employment with the Company or a Subsidiary, as the case may be, nor shall it interfere in any way with the right of the Company or a Subsidiary to terminate the
employment of any of its employees at any time. 

        (d)  Each
participant shall, no later than the date as of which any part of the value of an award first becomes includible as compensation in the gross income of the
participant for Federal income tax purposes, pay to the Company, or make arrangements satisfactory to the Committee regarding payment of, any Federal, state, or local taxes of any kind required by law
to be withheld with respect to the award. The obligations of the Company under the Plan shall be conditional on such payment or arrangements and the Company and Subsidiaries shall, to the extent
permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the participant. With respect to any award under the Plan, if the terms of such award so permit,
a participant may elect by written notice to the Company to satisfy part or all of the withholding tax requirements associated with the award by (i) authorizing the Company to retain from the
number of shares of Stock that would otherwise be deliverable to the participant, or (ii) delivering to the Company from shares of Stock already owned by the participant, that number of shares
having an aggregate Fair Market Value equal to part or all of the tax payable by the participant under this Section 12(d). Any such election shall be in accordance with, and subject to,
applicable tax and securities laws, regulations and rulings. 

        (e)  At
the time of grant, the Committee may provide in connection with any grant made under this Plan that the shares of Stock received as a result of such grant shall be
subject to a repurchase right in favor of the Company, pursuant to which the participant shall be required to offer to the Company upon termination of employment for any reason any shares that the
participant acquired 

11

 

under the Plan, with the price being the then Fair Market Value of the Stock or, in the case of a termination for Cause, an amount equal to the cash consideration paid for the Stock, subject to such
other terms and conditions as the Committee may specify at the time of grant. The Committee may, at the time of the grant of an award under the Plan, provide the Company with the right to repurchase,
or require the forfeiture of, shares of Stock acquired pursuant to the Plan by any participant who, at any time within two years after termination of employment with the Company, directly or
indirectly competes with, or is employed by a competitor of, the Company. 

        (f)    The
reinvestment of dividends in additional Restricted Stock (or in Deferred Stock or other types of Plan awards) at the time of any dividend payment shall only be
permissible if the Committee (or the Company's chief financial officer) certifies in writing that under Section 3 sufficient shares are available for such reinvestment (taking into account then
outstanding Stock Options and other Plan awards). 

        SECTION
13.    Effective Date of Plan.    

        The
Plan shall be effective on the date it is approved by a vote of the holders of a majority of the Stock present and entitled to vote at a meeting of the Company's shareholders. 

12

QuickLinks

Exhibit 4.1

AMENDED AND RESTATED CANTERBURY PARK HOLDING CORPORATION 1994 STOCK PLANQuickLinks
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Exhibit 4.1    
  

 
 

AMENDED AND RESTATED CANTERBURY PARK HOLDING CORPORATION
  1995 EMPLOYEE STOCK PURCHASE PLAN
  As Amended through June 6, 2002    
  

 
AMENDED AND RESTATED CANTERBURY PARK HOLDING CORPORATION

1995 EMPLOYEE STOCK PURCHASE PLAN  

        1.    Establishment of Plan.    Canterbury Park Holding Corporation (hereinafter referred to as the "Company")
proposes to grant to certain employees of the Company the opportunity to purchase common stock of the Company. Such common stock shall be purchased pursuant to the plan herein set forth which shall be
known as the "CANTERBURY PARK HOLDING CORPORATION 1995 EMPLOYEE STOCK PURCHASE PLAN" (hereinafter referred to as the "Plan"). The Company intends that the Plan shall qualify as an "Employee Stock
Purchase Plan" under Section 423 of the Internal Revenue Code of 1954, as amended, and shall be construed in a manner consistent with the requirements of said Section 423 and the
regulations thereunder. 

        2.    Purpose.    The Plan is intended to encourage stock ownership by all employees of the Company and to provide
them with further incentive to continue their employment, improve operations, increase profits, and contribute more significantly to the Company's success. 

        3.    Administration.    The Plan shall be administered by a committee (hereinafter referred to as the "Committee")
consisting of not less than three directors or employees of the Company (which may be the Compensation Committee if any is established by the Board of Directors), as designated by the Board of
Directors of the Company (hereinafter referred to as the "Board of Directors"). The Board of Directors shall fill all vacancies in the Committee and may remove any member of the Committee at any time,
with or without cause. The Committee shall select its own chairman and hold its meetings at such times and places as it may determine. All determinations of the Committee shall be made by a majority
of its members. Any decision which is made in writing and signed by a majority of the members of the Committee shall be effective as fully as though made by a majority vote at a meeting duly called
and held. The determinations of the Committee shall be made in accordance with its judgment as to the best interests of the Company, its employees and its shareholders and in accordance with the
purposes of the Plan; provided, however, that the provisions of the Plan shall at all times be construed in a manner consistent with the requirements of
Section 423 of the Internal Revenue Code, as amended. Such determinations shall be binding upon the Company and the participants in the Plan unless otherwise determined by the Board of
Directors. The Company shall pay all expenses of administering the Plan. No member of the Board of Directors or the Committee shall be liable for any action or determination made in good faith with
respect to the Plan or any option granted under it. 

        4.    Duration and Phases of the Plan.    (a) The Plan will commence on April 15, 1995 and will
terminate ten (10) years thereafter, except that any phase commenced prior to such termination shall, if necessary, be allowed to continue beyond such termination until completion.
Notwithstanding the foregoing, this Plan shall be considered of no force or effect and any options granted shall be considered null and void unless the holders of a majority of all of the issued and
outstanding shares of the common stock of' the Company approve the Plan within twelve (12) months before or after the date of its adoption by the Board of Directors. 

        (b)  The
Plan shall be carried out in one or more phases, each phase being for a period of one year. No phase shall run concurrently, but a phase may commence immediately
after the termination of the preceding phase. The existence and date of commencement of a phase (the "Commencement Date") shall be determined by the Committee, provided that the commencement of the
first phase shall be within twelve (12) months before or after the date of approval of the Plan by the shareholders of the Company. In the event all of the stock reserved for grant of options
hereunder is issued pursuant to the terms hereof prior to the commencement of one or more phases scheduled by the Committee or the number of shares remaining is so small, in the opinion of the
Committee, as to render administration of any succeeding phase impracticable, such phase or phases shall be cancelled. Phases shall be numbered successively Phase 1, Phase 2, Phase 3, etc. 

2

 

        (c)  The
Board of Directors may elect to accelerate the termination date of any phase effective on the date specified by the Board of Directors in the event of (i) any
consolidation or merger of the Company in which the Company is not the continuing or surviving corporation or pursuant to which shares would be converted into cash, securities or other property, other
than a merger of the Company in which shareholders immediately prior to the merger have the same proportionate ownership of stock in the surviving corporation immediately after the merger;
(ii) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of the Company; or (iii) any plan of
liquidation or dissolution of the Company. 

        5.    Eligibility.    All Employees, as defined in Paragraph 19 hereof, who are employed by the Company at
least one day prior to the Commencement Date of a phase shall be eligible to participate in such phase. 

        6.    Participation.    Participation in the Plan is voluntary. An eligible Employee may elect to participate in any
phase of the Plan, and thereby become a "Participant" in the Plan, by completing the Plan payroll deduction form provided by the Company and delivering it to the Company or its designated
representative prior to the Commencement Date of that phase. Payroll deductions for a Participant shall commence on the first payday after the Commencement Date of the phase and shall terminate on the
last payday immediately prior to or coinciding with the termination date of that phase unless sooner terminated by the Participant as provided in Paragraph 9 hereof. 

        7.    Payroll Deductions.    (a) Upon enrollment, a Participant shall elect to make contributions to the Plan
by payroll deductions (in full dollar amounts and in amounts calculated to be as uniform as practicable throughout the period of the phase), in the aggregate amount not in excess of 10% of such
Participant's Base Pay for the term of the phase, as determined according to Paragraph 19 hereof. 

        The
minimum authorized payroll deduction must aggregate to not less than $10 per month. 

        (b)  In
the event that the Participant's compensation for any pay period is terminated or reduced from the compensation rate for such a period as of the Commencement Date of
the phase for any reason so that the amount actually withheld on behalf of the Participant as of the termination date of the phase is less than the amount anticipated to be withheld over the phase
year as determined on the Commencement Date of the phase, then the extent to which the Participant may exercise his option shall be based on the amount actually withheld on his behalf. In the event of
a change in the pay period of any Participant, such as from bi-weekly to monthly, an appropriate adjustment shall be made to the deduction in each new pay period so as to ensure the
deduction of the proper amount authorized by the Participant. 

        (c)  All
payroll deductions made for Participants shall be credited to their accounts under the Plan. The Participant may not make any separate cash payments into such
account. 

        (d)  Except
for his right to discontinue participation in the Plan as provided in Paragraph 9, no Participant shall be entitled to increase or decrease the amount to
be deducted in a given phase after the Commencement Date. 

        8.    Options.    

        (a)    Grant of Option.    

          (i)  A
Participant who is employed by the Company as of the Commencement Date of a phase shall be granted an option as of such date to purchase a number of full shares of
Company common stock to be determined by dividing the total amount to be credited to that Participant's account under Paragraph 7 hereof by the option price set forth in
Paragraph 8(a)(ii)(A) hereof, subject to the limitations of Paragraph 10 hereof. 

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        (ii)  The
option price for such shares of common stock shall be the lower of: 

	A.
	Eighty-five
percent (85%) of the fair market value of such shares of common stock on the Commencement Date of the phase; or

	B.
	Eighty-five
percent (85%) of the fair market value of such shares of common stock on the termination date of the phase. 

        (iii)  The
fair market value of shares of common stock of the Company shall be determined by the Committee for each valuation date in a manner acceptable under
Section 423, Internal Revenue Code of 1954. 

        (iv)  Anything
herein to the contrary notwithstanding, no Employee shall be granted an option hereunder: 

	A.
	Which
permits his rights to purchase stock under all employee stock purchase plans of the Company, its subsidiaries or its parent, if any, to accrue at a rate which exceeds
Twenty-Five Thousand Dollars
($25,000) of the fair market value of such stock (determined at the time such option is granted) for each calendar year in which such option is outstanding at any time;

	B.
	If
immediately after the grant such Employee would own and/or hold outstanding options to purchase stock possessing five percent (5%) or more of the total combined voting power or
value of all classes of stock of the Company, its parent, if any, or of any subsidiary of the Company. For purposes of determining stock ownership under this Paragraph, the rules of
Section 425(d) of the Internal Revenue Code, as amended, shall apply; or

	C.
	Which
can be exercised after the expiration of 27 months from the date the option is granted. 

        (b)    Exercise of Option.    

          (i)  Unless
a Participant gives written notice to the Company pursuant to Paragraph 8(b) (ii) or Paragraph 9 prior to the termination date of a phase,
his option for the purchase of shares will be exercised automatically for him as of such termination date for the purchase of the number of full shares of Company common stock which the accumulated
payroll deductions in his account at that time will purchase at the applicable option price, subject to the limitations set forth in Paragraph 10 hereof. 

        (ii)  A
Participant may, by written notice to the Company at any time during the thirty (30) day period immediately preceding the termination date of a phase, elect,
effective as of the termination date of that phase, to exercise his option for a specified number of full shares less than the maximum number which may be purchased under his option. 

        (iii)  As
promptly as practicable after the termination date of any phase, the Company will deliver to each Participant herein the common stock purchased upon the exercise of
his option, together with a cash payment equal to the balance, if any, of his account which was not used for the purchase of common stock with interest accrued thereon. 

        9.    Withdrawal or Termination of Participation.    (a) A Participant may, at any time prior to the
termination date of a phase, withdraw all payroll deductions then credited to his account by giving written notice to the Company. Promptly upon receipt of such notice of withdrawal, all payroll
deductions credited to the Participant's account will be paid to him with interest accrued thereon and no further payroll deductions will be made during that phase. In such event, the option granted
the Participant under that phase of the Plan shall lapse immediately. Partial withdrawals of payroll deductions hereunder may not be made. 

4

 

        (b)  In
the event of the death of a Participant, the person or persons specified in Paragraph 14 may give notice to the Company within sixty (60) days of the
death of the Participant electing to purchase the number of full shares which the accumulated payroll deductions in the account of such deceased Participant will purchase at the option price specified
in Paragraph 8(a) (ii) and have the balance in the account distributed in cash with interest accrued thereon. If no such notice is received by the Company within said sixty
(60) days, the accumulated payroll deductions will be distributed in full in cash with interest accrued thereon. 

        (c)  Upon
termination of Participant's employment for any reason other than death of the Participant, the payroll deductions credited to his account, plus interest, shall be
returned to him. 

        10.    Stock Reserved for Options.    (a) Two Hundred and Fifty Thousand (250,000) shares(1) of the Company's
$.01 par value common stock are reserved for issuance upon the exercise of options to be granted under the Plan. Shares subject to the unexercised portion of any lapsed or expired option may again be
subject to option under the Plan. 

	(1)
	Amended
June 7, 2001 to increase authorized shares from 100,000 to 250,000. 

        (b)  If
the total number of shares of Company common stock for which options are to be granted for a given phase as specified in Paragraph 8 exceeds the number of
shares then remaining available under the Plan (after deduction of all shares for which options have been exercised or are then outstanding) and if the Committee does not elect to cancel such phase
pursuant to Paragraph 4, the Committee shall make a pro rata allocation of the shares remaining available in as uniform and equitable a manner as it shall consider practicable. In such event,
the options to be granted and the payroll deductions to be made pursuant to the Plan which would otherwise be effected may, in the discretion of the Committee, be reduced accordingly. The Committee
shall give written notice of such reduction to each Participant affected. 

        (c)  The
Participant (or a joint tenant named pursuant to Paragraph 10(d) hereof) shall have no rights as a shareholder with respect to any shares subject to the
Participant's option until the date of the issuance of a stock certificate evidencing such shares. No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or
other property), distributions or other rights for which the record date is prior to the date such stock certificate is actually issued, except as otherwise provided in Paragraph 12 hereof. 

        (d)  The
shares of Company common stock to be delivered to a Participant pursuant to the exercise of an option under the Plan will be registered in the name of the
Participant or, if the Participant so
directs by written notice to the Committee prior to the termination date of that phase of the Plan, in the names of the Participant and one other person the Participant may designate as his joint
tenant with rights of survivorship, to the extent permitted by law. 

        11.    Accounting and Use of Funds.    Payroll deductions for each Participant shall be credited to an account
established for him under the Plan. A Participant may not make any separate cash payments into such account. Such account shall be solely for bookkeeping purposes and no separate fund or trust shall
be established hereunder and the Company shall not be obligated to segregate such funds. All funds from payroll deductions received or held by the Company under the Plan may be used, without
limitation, for any corporate purpose by the Company. 

        12.    Adjustment Provision.    (a) Subject to any required action by the shareholders of the Company, the
number of shares which are authorized in Section 10 to be issued pursuant to this Plan and the number of shares covered by each outstanding option and the price per share thereof in each such
option, shall be proportionately adjusted for any increase or decrease in the number of issued shares of the Company common stock resulting from a subdivision or consolidation of shares or the 

5

 

payment of a share dividend (but only on the shares) or any other increase or decrease in the number of such shares effected without receipt of consideration by the Company. 

        (b)  In
the event of a change in the shares of the Company as presently constituted, which is limited to a change of all its authorized shares with par value into the same
number of shares with a different par value or without par value, the shares resulting from any such change shall be deemed to be the shares within the meaning of this Plan. 

        13.    Non-Transferability of Options.    (a) Options granted under any phase of the Plan shall not
be transferable except under the laws of descent and distribution and shall be exercisable only by the Participant during his lifetime and after his death only by his beneficiary of the representative
of his estate as provided in Paragraph 9(b) hereof. 

        (b)  Neither
payroll deductions credited to a Participant's account, nor any rights with regard to the exercise of an option or to receive common stock under any phase of the
Plan may be assigned, transferred, pledged or otherwise disposed of in any way by the Participant. Any such attempted assignment, transfer, pledge or other disposition shall be null and void and
without effect, except that the Company may, at its option, treat such act as an election to withdraw funds in accordance with Paragraph 9. 

        14.    Designation of Beneficiary.    A Participant may file a written designation of a beneficiary who is to
receive any cash to the Participant's credit plus interest thereon under any phase of the Plan in the event of such Participant's death prior to exercise of his option pursuant to
Paragraph 9(b) hereof, or to
exercise his option and become entitled to any stock and/or cash upon such exercise in the event of the Participant's death prior to exercise of the option pursuant to Paragraph 9(b) hereof.
The beneficiary designation may be changed by the Participant at any time by written notice to the Company. 

        Upon
the death of a Participant and upon receipt by the Company of proof deemed adequate by it of the identity and existence at the Participant's death of a beneficiary validly
designated under the Plan, the Company shall in the event of the Participant's death under the circumstances described in Paragraph 9(b) hereof, allow such beneficiary to exercise the
Participant's option pursuant to Paragraph 9(b) if such beneficiary is living on the termination date of the phase and deliver to such beneficiary the appropriate stock and/or cash after
exercise of the option. In the event there is no validly designated beneficiary under the Plan who is living at the time of the Participant's death under the circumstances described in
Paragraph 9(b) or in the event the option lapses, the Company shall deliver the cash credited to the account of the Participant with interest to the executor or administrator of the estate of
the Participant, or if no such executor or administrator has been appointed to the knowledge of the Company, it may, in its discretion, deliver such cash to the spouse or to any one or more dependents
or relatives of the Participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. The Company will not be responsible for or be
required to give effect to the disposition of any cash or stock or the exercise of any option in accordance with any will or other testamentary disposition made by such Participant or in accordance
with the provision of any law concerning intestacy, or otherwise. No designated beneficiary shall, prior to the death of a Participant by whom he has been designated, acquire any interest in any stock
or in any option or in the cash credited to the Participant under any phase of the Plan. 

        15.    Amendment and Termination.    The Plan may be terminated at any time by the Board of Directors provided that,
except as permitted in Paragraph 4(c) with respect to an acceleration of the termination date of any phase, no such termination will take effect with respect to any options then outstanding.
Also, the Board may, from time to time, amend the Plan as it may deem proper and in the best interests of the Company or as may be necessary to comply with Section 423 of the Internal Revenue
Code of 1986, as amended, or other applicable laws or regulations; provided, however, that no such amendment shall, without prior approval of the shareholders of the Company (1) increase the 

6

 

total number of shares for which options may be granted under the Plan (except as provided in Paragraph 12 herein), (2) permit aggregate payroll deductions in excess of ten percent
(10%) of a Participant's compensation as of the Commencement Date of a phase, or (3) impair any outstanding option. 

        16.    Interest.    In any situation where the Plan provides for the payment of interest on a Participant's payroll
deductions, such interest shall be determined by averaging the month-end balances in the Participant's account for the period of his participation and computing interest thereon at the
rate of five percent (5%) per annum. 

        17.    Notices.    All notices or other communications in connection with the Plan or any phase thereof shall be in
the form specified by the Committee and shall be deemed to have been duly given when received
by the Participant or his designated personal representative or beneficiary or by the Company or its designated representative, as the case may be. 

        18.    Participation of Subsidiaries.    The Board of Directors may, by written resolution, authorize the employees of
any of its subsidiaries to participate hereunder. Effective as of the date of coverage of any such subsidiary, any references herein to the "Company" shall be interpreted as referring to such
subsidiary as well as to Canterbury Park Holding Corporation. 

        In
the event that any subsidiary which is covered under the Plan ceases to be a subsidiary of Canterbury Park Holding Corporation, the employees of such subsidiary shall be considered to
have terminated their employment for purposes of Paragraph 9 hereof as of the date such subsidiary ceases to be such a subsidiary. 

        19.    Definitions.    (a) "Subsidiary" shall include any corporation which shall be deemed a subsidiary of the
Company under Section 425(f) of the Internal Revenue Code of 1954, as amended. 

        (b)  "Employee"
shall mean any employee, including an officer, of the Company who as of the first day of the month immediately preceding the Commencement Date of a phase is
customarily employed by the Company for more than fifteen (15) hours per week. 

        (c)  "Base
Pay" is the regular pay for employment for each employee as annualized for a twelve (12) month period, exclusive of overtime, commissions, bonuses,
disability payments, shift differentials, incentives and other similar payments, determined as of the Commencement Date of each phase. 

        Adopted
by Board of Directors:    April 3, 1995 

7

QuickLinks

Exhibit 4.1

AMENDED AND RESTATED CANTERBURY PARK HOLDING CORPORATION 1995 EMPLOYEE STOCK PURCHASE PLAN As Amended through June 6, 2002

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