-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BgyRTGVUsk2k5N7/xRnCJcq3hks2EwfhkVdZm8vNVNOx3wBqvE8YC1ynsPhP0cy6 YV0TlcD2trDQN3dzdS4aRQ== /in/edgar/work/20000807/0000811532-00-000020/0000811532-00-000020.txt : 20000921 0000811532-00-000020.hdr.sgml : 20000921 ACCESSION NUMBER: 0000811532-00-000020 CONFORMED SUBMISSION TYPE: DEFA14A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20000807 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CEDAR FAIR L P CENTRAL INDEX KEY: 0000811532 STANDARD INDUSTRIAL CLASSIFICATION: [7990 ] IRS NUMBER: 341560655 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: DEFA14A SEC ACT: SEC FILE NUMBER: 001-09444 FILM NUMBER: 687215 BUSINESS ADDRESS: STREET 1: P O BOX 5006 CITY: SANDUSKY STATE: OH ZIP: 44871 BUSINESS PHONE: 4196260830 DEFA14A 1 0001.txt CEDAR FAIR, L.P. PLEASE VOTE `FOR' THE CEDAR FAIR, L.P. PROPOSALS! Dear Fellow Unitholder: You and your fellow unitholders should have recently received proxy materials in which you were asked to vote on two proposals to revise Cedar Fair's fee and executive compensation systems. With the special meeting for this vote fast approaching, we urge you to promptly vote `FOR' the approval of each of the proposals. The Board's goal in recommending the new compensation system is to tie management's incentives more closely to the value of Cedar Fair units, while at the same time making more cash available for distributions to unitholders. The Board of Directors unanimously recommends the approval of each of the proposals. Your vote is very important, and we cannot move ahead without it. We need the approval of partners holding a majority of the outstanding partnership units in order to amend the limited partnership agreement and a similar majority vote to adopt the new equity incentive plan. As President and Chief Executive Officer of Cedar Fair, L.P., I join our Board of Directors in recommending that you vote `FOR' the proposals. Voting is easy and instructions are printed on the enclosed proxy card. On the following page are answers to frequently asked questions about the proposal and its benefits to our partners. Thank you for your continued support of Cedar Fair, L.P. Sincerely, /s/ Richard L. Kinzel Richard L. Kinzel President and Chief Executive Officer `The Knott Family supports both proposals, which will better tie management compensation to performance and better align the interests of management and unitholders. We urge your support.' (Terry Hackett, Knott Family representative and Cedar Fair board member) `These proposals are important because they should significantly add to the amount of cash available for distributions to limited partners of Cedar Fair in the coming years.' (Lee Derrough, President & CEO of Hunt Midwest Enterprises and Cedar Fair board member) ANSWERS TO YOUR QUESTIONS Q: What is the Board proposing? A:The Board of Directors is recommending (1) that the limited partnership agreement of Cedar Fair be amended in order to eliminate the system of fees paid by Cedar Fair to the general partner, and (2) that a plan be approved that will permit the award of limited partner units or options on units as an element of management compensation. Q:Why is the Board making this recommendation? A:The non-management members of the Board of Directors believe that the existing system is too heavily weighted toward cash compensation and does not afford the types of incentives that are appropriate in today's business environment, including incentives that are closely tied to the stock-market performance of Cedar Fair units. The proposed new system is designed to tie a larger portion of management compensation to the value of Cedar Fair units, and thus to more closely align the interests of management with those of our unitholders. Q:Why should I vote `FOR' the proposals? A:There are two principal benefits of the proposals: - The proposed new system is expected to result in a significant increase beginning in 2001 in the amount of cash available for distributions to unitholders. For example, we project that cash distributions in 2001 will benefit from savings of $6.2 million, or $.12 per unit, under the new system. - A larger portion of management's compensation will be tied to the value of Cedar Fair units, so the interests of management will be more closely aligned with those of the limited partner unitholders. Q:What will happen if these proposals are not approved by the unitholders? A:If the proposals are not approved, the existing compensation system will remain in place. As Cedar Fair grows and its revenues and cash distributions continue to increase, the cash compensation payable to senior management will likely increase at an even faster rate. Additionally, the compensation system will not include a strong equity incentive component aligning the interests of senior management with those of the unitholders. Q:What are the consequences if I do not vote? A:A failure to vote has the same effect as voting against the proposals. If you do not return your proxy card, vote by telephone or over the Internet, or instruct your broker how to vote any units held for you in your broker's name, the effect will be a vote against each of the proposals. Q:May I change my vote after submitting my proxy? A:Yes. You may revoke your proxy at any time before it is exercised, and it will not be used if you attend the meeting and prefer to vote in person. If you instruct your broker to vote your units, you must follow directions received from your broker to change those instructions. Q: Who can help answer my questions? A:If you have more questions about the proposals or if you would like additional copies of the proxy statement, please contact our proxy solicitor, Morrow & Co., Inc. at: (800) 965-1059. -----END PRIVACY-ENHANCED MESSAGE-----