# EDGAR Filing Document

**Accession Number:** 0000811532
**File Stem:** 0000811532-23-000047
**Filing Date:** 2023-2
**Character Count:** 440913
**Document Hash:** 30d64068f17af100481e779d61eddf84
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000811532-23-000047.hdr.sgml**: 20230217

**ACCESSION NUMBER**: 0000811532-23-000047

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 83

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230217

**DATE AS OF CHANGE**: 20230217

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CEDAR FAIR L P
- **CENTRAL INDEX KEY:** 0000811532
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION [7990]
- **IRS NUMBER:** 341560655
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-09444
- **FILM NUMBER:** 23641603

**BUSINESS ADDRESS:**
- **STREET 1:** ONE CEDAR POINT DRIVE
- **CITY:** SANDUSKY
- **STATE:** OH
- **ZIP:** 44870
- **BUSINESS PHONE:** 4196260830

**MAIL ADDRESS:**
- **STREET 1:** ONE CEDAR POINT DRIVE
- **CITY:** SANDUSKY
- **STATE:** OH
- **ZIP:** 44870

?xml version="1.0" ? fun-20221231

<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-K** 

**(Mark One)**

---

| | |
|:---|:---|
| ☑ | **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |

---

**For the fiscal year ended: December 31, 2022** 

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.**

**Commission file number 1-9444** 

**CEDAR FAIR, L.P.** 

**(Exact name of registrant as specified in its charter)** 

---

| | |
|:---|:---|
| **Delaware** | **34-1560655** |
| **(State or other jurisdiction of<br>incorporation or organization)** | **(I.R.S. Employer<br>Identification No.)** |

---

**One Cedar Point Drive, Sandusky, Ohio 44870-5259** 

**(Address of principal executive offices) (Zip Code)**

**(419) 626-0830** 

**(Registrant's telephone number, including area code)**

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| **Depositary Units (Representing<br>Limited Partner Interests)** | **FUN** | **New York Stock Exchange** |

---

**Securities registered pursuant to Section 12(g) of the Act: None**

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

☑ Yes ☐ No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

☐ Yes ☑ No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☑ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☑ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☑ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☑ No

The aggregate market value of Depositary Units held by non-affiliates of the Registrant based on the closing price of such units on June 24, 2022 of $42.80 per unit was approximately $2,404,874,220.

Number of Depositary Units representing limited partner interests outstanding as of February 10, 2023: 51,930,650 units

**DOCUMENTS INCORPORATED BY REFERENCE**

Part III of this Form 10-K incorporates by reference certain information from the Registrant's definitive proxy statement to be used in connection with its annual meeting of limited partner unitholders to be held in May 2023.

\*\*\*\*\*\*\*\*\*\*\*\*

Page 1 of 59 pages

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

**CEDAR FAIR, L.P.**

**2022 FORM 10-K CONTENTS**

---

| | | |
|:---|:---|:---|
| **<u>[PART I](#ida49bcaab7294a3fa6f2fdc975ef3428_10)</u>** | **<u>[PART I](#ida49bcaab7294a3fa6f2fdc975ef3428_10)</u>** | **<u>PAGE</u>** |
| &nbsp;&nbsp;<u>[Item 1.](#ida49bcaab7294a3fa6f2fdc975ef3428_13)</u> | <u>[Business](#ida49bcaab7294a3fa6f2fdc975ef3428_13)</u> | <u>[3](#ida49bcaab7294a3fa6f2fdc975ef3428_13)</u> |
| &nbsp;&nbsp;<u>[Item 1A.](#ida49bcaab7294a3fa6f2fdc975ef3428_16)</u> | <u>[Risk Factors](#ida49bcaab7294a3fa6f2fdc975ef3428_16)</u> | <u>[8](#ida49bcaab7294a3fa6f2fdc975ef3428_16)</u> |
| &nbsp;&nbsp;<u>[Item 1B.](#ida49bcaab7294a3fa6f2fdc975ef3428_19)</u> | <u>[Unresolved Staff Comments](#ida49bcaab7294a3fa6f2fdc975ef3428_19)</u> | <u>[12](#ida49bcaab7294a3fa6f2fdc975ef3428_19)</u> |
| &nbsp;&nbsp;<u>[Item 2.](#ida49bcaab7294a3fa6f2fdc975ef3428_22)</u> | <u>[Properties](#ida49bcaab7294a3fa6f2fdc975ef3428_22)</u> | <u>[13](#ida49bcaab7294a3fa6f2fdc975ef3428_22)</u> |
| &nbsp;&nbsp;<u>[Item 3.](#ida49bcaab7294a3fa6f2fdc975ef3428_25)</u> | <u>[Legal Proceedings](#ida49bcaab7294a3fa6f2fdc975ef3428_25)</u> | <u>[13](#ida49bcaab7294a3fa6f2fdc975ef3428_25)</u> |
| &nbsp;&nbsp;<u>[Item 4.](#ida49bcaab7294a3fa6f2fdc975ef3428_28)</u> | <u>[Mine Safety Disclosures](#ida49bcaab7294a3fa6f2fdc975ef3428_28)</u> | <u>[13](#ida49bcaab7294a3fa6f2fdc975ef3428_28)</u> |
| **<u>[PART II](#ida49bcaab7294a3fa6f2fdc975ef3428_31)</u>** | **<u>[PART II](#ida49bcaab7294a3fa6f2fdc975ef3428_31)</u>** |  |
| &nbsp;&nbsp;<u>[Item 5.](#ida49bcaab7294a3fa6f2fdc975ef3428_34)</u> | <u>[Market for Registrant's Depositary Units, Related Unitholder Matters and Issuer Purchases of Depositary Units](#ida49bcaab7294a3fa6f2fdc975ef3428_34)</u> | <u>[14](#ida49bcaab7294a3fa6f2fdc975ef3428_34)</u> |
| &nbsp;&nbsp;<u>[Item 6.](#ida49bcaab7294a3fa6f2fdc975ef3428_37)</u> | <u>[Reserved](#ida49bcaab7294a3fa6f2fdc975ef3428_37)</u> | <u>[15](#ida49bcaab7294a3fa6f2fdc975ef3428_37)</u> |
| &nbsp;&nbsp;<u>[Item 7.](#ida49bcaab7294a3fa6f2fdc975ef3428_40)</u> | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#ida49bcaab7294a3fa6f2fdc975ef3428_40)</u> | <u>[15](#ida49bcaab7294a3fa6f2fdc975ef3428_40)</u> |
| &nbsp;&nbsp;<u>[Item 7A.](#ida49bcaab7294a3fa6f2fdc975ef3428_73)</u> | <u>[Quantitative and Qualitative Disclosures About Market Risk](#ida49bcaab7294a3fa6f2fdc975ef3428_73)</u> | <u>[27](#ida49bcaab7294a3fa6f2fdc975ef3428_73)</u> |
| &nbsp;&nbsp;<u>[Item 8.](#ida49bcaab7294a3fa6f2fdc975ef3428_76)</u> | <u>[Financial Statements and Supplementary Data](#ida49bcaab7294a3fa6f2fdc975ef3428_76)</u> | <u>[28](#ida49bcaab7294a3fa6f2fdc975ef3428_76)</u> |
|  | &nbsp;&nbsp;<u>[Index for Notes to Consolidated Financial Statements](#ida49bcaab7294a3fa6f2fdc975ef3428_97)</u> | <u>[35](#ida49bcaab7294a3fa6f2fdc975ef3428_97)</u> |
| &nbsp;&nbsp;<u>[Item 9.](#ida49bcaab7294a3fa6f2fdc975ef3428_148)</u> | <u>[Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#ida49bcaab7294a3fa6f2fdc975ef3428_148)</u> | <u>[53](#ida49bcaab7294a3fa6f2fdc975ef3428_148)</u> |
| &nbsp;&nbsp;<u>[Item 9A.](#ida49bcaab7294a3fa6f2fdc975ef3428_148)</u> | <u>[Controls and Procedures](#ida49bcaab7294a3fa6f2fdc975ef3428_148)</u> | <u>[53](#ida49bcaab7294a3fa6f2fdc975ef3428_148)</u> |
| &nbsp;&nbsp;<u>[Item 9B.](#ida49bcaab7294a3fa6f2fdc975ef3428_151)</u> | <u>[Other Information](#ida49bcaab7294a3fa6f2fdc975ef3428_151)</u> | <u>[53](#ida49bcaab7294a3fa6f2fdc975ef3428_151)</u> |
| &nbsp;&nbsp;<u>[Item 9C.](#ida49bcaab7294a3fa6f2fdc975ef3428_154)</u> | <u>[Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#ida49bcaab7294a3fa6f2fdc975ef3428_154)</u> | <u>[53](#ida49bcaab7294a3fa6f2fdc975ef3428_154)</u> |
| **<u>[PART III](#ida49bcaab7294a3fa6f2fdc975ef3428_157)</u>** | **<u>[PART III](#ida49bcaab7294a3fa6f2fdc975ef3428_157)</u>** |  |
| &nbsp;&nbsp;<u>[Item 10.](#ida49bcaab7294a3fa6f2fdc975ef3428_160)</u> | <u>[Directors, Executive Officers and Corporate Governance](#ida49bcaab7294a3fa6f2fdc975ef3428_160)</u> | <u>[54](#ida49bcaab7294a3fa6f2fdc975ef3428_160)</u> |
| &nbsp;&nbsp;<u>[Item 11.](#ida49bcaab7294a3fa6f2fdc975ef3428_163)</u> | <u>[Executive Compensation](#ida49bcaab7294a3fa6f2fdc975ef3428_163)</u> | <u>[54](#ida49bcaab7294a3fa6f2fdc975ef3428_163)</u> |
| &nbsp;&nbsp;<u>[Item 12.](#ida49bcaab7294a3fa6f2fdc975ef3428_166)</u> | <u>[Security Ownership of Certain Beneficial Owners and Management and Related Unitholder Matters](#ida49bcaab7294a3fa6f2fdc975ef3428_166)</u> | <u>[54](#ida49bcaab7294a3fa6f2fdc975ef3428_166)</u> |
| &nbsp;&nbsp;<u>[Item 13.](#ida49bcaab7294a3fa6f2fdc975ef3428_169)</u> | <u>[Certain Relationships and Related Transactions, and Director Independence](#ida49bcaab7294a3fa6f2fdc975ef3428_169)</u> | <u>[55](#ida49bcaab7294a3fa6f2fdc975ef3428_169)</u> |
| &nbsp;&nbsp;<u>[Item 14.](#ida49bcaab7294a3fa6f2fdc975ef3428_172)</u> | <u>[Principal Accountant Fees and Services](#ida49bcaab7294a3fa6f2fdc975ef3428_172)</u> | <u>[55](#ida49bcaab7294a3fa6f2fdc975ef3428_172)</u> |
| **<u>[PART IV](#ida49bcaab7294a3fa6f2fdc975ef3428_175)</u>** | **<u>[PART IV](#ida49bcaab7294a3fa6f2fdc975ef3428_175)</u>** |  |
| &nbsp;&nbsp;<u>[Item 15.](#ida49bcaab7294a3fa6f2fdc975ef3428_178)</u> | <u>[Exhibits and Financial Statement Schedules](#ida49bcaab7294a3fa6f2fdc975ef3428_178)</u> | <u>[55](#ida49bcaab7294a3fa6f2fdc975ef3428_178)</u> |
| &nbsp;&nbsp;<u>[Item 16.](#ida49bcaab7294a3fa6f2fdc975ef3428_181)</u> | <u>[Form 10-K Summary](#ida49bcaab7294a3fa6f2fdc975ef3428_181)</u> | <u>[58](#ida49bcaab7294a3fa6f2fdc975ef3428_181)</u> |
| **<u>[Signatures](#ida49bcaab7294a3fa6f2fdc975ef3428_184)</u>** | **<u>[Signatures](#ida49bcaab7294a3fa6f2fdc975ef3428_184)</u>** | <u>[59](#ida49bcaab7294a3fa6f2fdc975ef3428_184)</u> |

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

**PART I** 

*Unless the context otherwise indicates, all references to "we," "us," "our," or the "Partnership" in this Annual Report on Form 10-K refer to Cedar Fair, L.P. together with its affiliated companies.*

**ITEM 1. BUSINESS.**

We are one of the largest regional amusement park operators in the world with 13 properties in our portfolio consisting of amusement parks, water parks and complementary resort facilities. We are a publicly traded Delaware limited partnership formed in 1987 and managed by Cedar Fair Management, Inc., an Ohio corporation (the "General Partner"), whose shares are held by an Ohio trust. Our parks are family-oriented, with recreational facilities for people of all ages, and provide clean and attractive environments with exciting rides and immersive entertainment. We generate revenue from sales of admission to our amusement parks and water parks, from purchases of food, merchandise and games both inside and outside our parks, and from the sale of accommodations and other extra-charge products.

Our parks operate seasonally except for Knott's Berry Farm, which is typically open daily on a year-round basis. Our seasonal parks are generally open daily from Memorial Day until Labor Day. Outside of daily operations, our seasonal parks are open during select weekends, including at most properties in the fourth quarter for Halloween and winter events. As a result, a substantial portion of our revenues from these seasonal parks are generated from Memorial Day through Labor Day with the major portion concentrated during the peak vacation months of July and August.

The demographic groups that are most important to our business are families and young people ages 12 through 24. Families are believed to be attracted by a combination of rides, live entertainment and the clean, wholesome atmosphere. Young people are believed to be attracted by the action-packed rides. We conduct active television, radio, newspaper and internet advertising campaigns in our major market areas geared toward these two groups.

**IMPACT OF COVID-19 PANDEMIC**

The novel coronavirus (COVID-19) pandemic had a material impact on our business in 2020, had a continuing negative impact in 2021 and may have a longer-term negative effect. Beginning on March 14, 2020, we closed our properties for several months in response to the spread of COVID-19 and local government mandates. We ultimately resumed partial operations at 10 of our 13 properties in 2020, operating in accordance with local and state guidelines. We delayed the opening of our U.S. properties for the 2021 operating season until May 2021 and opened our Canadian property in July 2021. Upon opening in 2021, we operated with capacity restrictions, guest reservations, and other operating protocols in place. As vaccination distribution efforts continued during the second quarter of 2021 and we were able to hire additional labor, we removed most capacity restrictions, guest reservation requirements and other protocols at our U.S. properties beginning in July 2021. Canada's Wonderland operated with capacity restrictions, guest reservations, and other operating protocols in place throughout 2021.

Each of our properties opened for the 2022 operating season as planned and without restrictions. We currently anticipate continuing to operate without restrictions for the 2023 operating season. However, we have and may continue to adjust future park operating calendars as we respond to changes in guest demand, labor availability and any federal, provincial, state and local restrictions. Our future operations are dependent on factors beyond our knowledge or control, including any future actions taken to contain the COVID-19 pandemic and changing risk tolerances of our employees and guests regarding health matters.

**DESCRIPTION OF OUR PARKS**

***Cedar Point***

Cedar Fair's flagship park, Cedar Point, was first developed as a recreational area in 1870. Located on a peninsula in Sandusky, Ohio bordered by Lake Erie between Cleveland and Toledo, Cedar Point serves a six-state region which includes nearly all of Ohio and Michigan, western Pennsylvania and New York, northern West Virginia and Indiana, as well as southwestern Ontario, Canada. Attractive to both families and thrill-seekers, the park features 18 roller coasters, including many record-breakers, and three children's areas. Located adjacent to the park is Cedar Point Shores Water Park, a separately gated water park featuring more than 15 water rides and attractions. Cedar Point also features four hotels, three marinas, an upscale campground, and the nearby Cedar Point Sports Center which features both indoor and outdoor sports facilities. Cedar Point's four hotels include:

*Hotel Breakers* - the park's largest hotel and only hotel located on the Cedar Point peninsula, featuring various dining and lounge facilities, a mile-long beach, lake swimming, a conference/meeting center, an indoor pool and multiple outdoor pools;

*Castaway Bay Indoor Waterpark Resort* - a year-round hotel located adjacent to the entrance to the park featuring tropical, Caribbean themed hotel rooms centered around an indoor water park, as well as a marina and dining facilities;

*Cedar Point's Express Hotel* - a limited-service seasonal hotel located adjacent to the entrance to the park; and

*Sawmill Creek Resort* - a year-round resort lodge located near Cedar Point in Huron, Ohio, featuring a golf course, marina, half-mile beach, dining and shopping facilities, and a conference/meeting center.

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

***Knott's Berry Farm***

Knott's Berry Farm, located near Los Angeles in Buena Park, California, first opened in 1920 and was acquired by the Partnership in 1997. The park is one of several year-round theme parks in Southern California and serves a market area centered in Orange County with a large national and international tourism population. The park is renowned for its seasonal events, including a spring culinary festival, Boysenberry Festival; a special holiday event, Knott's Merry Farm; and a Halloween event, Knott's Scary Farm, which has been held for nearly 50 years and is annually rated one of the best Halloween events in the industry by *Amusement Today's* international survey. Adjacent to Knott's Berry Farm is Knott's Soak City, a separately gated seasonal water park that features multiple water rides and attractions. Knott's Berry Farm also features the Knott's Berry Farm Hotel, a full-service hotel located adjacent to Knott's Berry Farm featuring a pool, fitness facilities and meeting/banquet facilities.

***Canada's Wonderland***

Canada's Wonderland, a combination amusement and water park located near Toronto in Vaughan, Ontario, first opened in 1981 and was acquired by the Partnership in 2006. It contains numerous attractions, including 18 roller coasters, and is one of the most attended amusement parks in North America. Canada's Wonderland is in a culturally diverse metropolitan market with large populations of different ethnicities and national origins. Each year the park showcases an extensive entertainment and special event line-up which includes cultural festivals.

***Kings Island***

Kings Island, a combination amusement and water park located near Cincinnati, Ohio, first opened in 1972 and was acquired by the Partnership in 2006. Kings Island is also one of the most attended amusement parks in North America. The park features a children's area that has been consistently named one of the "Best Kids' Area in the World" by *Amusement Today.* The park's market area includes Cincinnati, Dayton and Columbus, Ohio; Louisville and Lexington, Kentucky; and Indianapolis, Indiana.

***Carowinds***

Carowinds, a combination amusement and water park located in Charlotte, North Carolina, first opened in 1973 and was acquired by the Partnership in 2006. Carowinds' major markets include Charlotte, Greensboro, and Raleigh, North Carolina; as well as Greenville and Columbia, South Carolina. The park also features Camp Wilderness Resort, an upscale campground, and a SpringHill Suites by Marriott hotel located adjacent to the park entrance. The SpringHill Suites is a Marriott franchise operated by Cedar Fair. The hotel is open year-round and features suites, an outdoor pool, fitness center and bar.

***Kings Dominion***

Kings Dominion, a combination amusement and water park located near Richmond, Virginia, first opened in 1975 and was acquired by the Partnership in 2006. The park's market area includes Richmond and Norfolk, Virginia; Raleigh, North Carolina; Baltimore, Maryland and Washington, D.C. Additionally, the park offers Kings Dominion Camp Wilderness Campground, an upscale campground.

***California's Great America***

California's Great America, a combination amusement and water park located in Santa Clara, California, first opened in 1976 and was acquired by the Partnership in 2006. The park draws its visitors primarily from San Jose, San Francisco, Sacramento, Modesto and Monterey, among other cities in northern California. On June 27, 2022, we sold the land at California's Great America. Concurrently with the sale, we entered into a lease contract that allows us to operate the park during a six-year term, and we have an option to extend the term for an additional five years. The lease is subject to early termination by the buyer with at least two years' prior notice.

***Dorney Park***

Dorney Park, a combination amusement and water park located in Allentown, Pennsylvania, was first developed as a summer resort area in 1884 and was acquired by the Partnership in 1992. Dorney Park's major markets include Philadelphia, Lancaster, Harrisburg, York, Scranton, Wilkes-Barre, Hazleton and the Lehigh Valley, Pennsylvania; New York City; and New Jersey.

***Worlds of Fun***

Worlds of Fun, which opened in 1973 and was acquired by the Partnership in 1995, is a combination amusement and water park located in Kansas City, Missouri. Worlds of Fun serves a market area centered in Kansas City, as well as most of Missouri and portions of Kansas and Nebraska. Worlds of Fun also features Worlds of Fun Village, an upscale campground.

***Valleyfair***

Valleyfair, which opened in 1976 and was acquired by the Partnership's predecessor in 1978, is a combination amusement and water park located near Minneapolis-St. Paul in Shakopee, Minnesota. Valleyfair's market area is centered in Minneapolis-St. Paul, but the park also draws visitors from other areas in Minnesota and surrounding states.

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***Michigan's Adventure***

Michigan's Adventure, which opened in 1956 as Deer Park and was acquired by the Partnership in 2001, is a combination amusement and water park located in Muskegon, Michigan. Michigan's Adventure serves a market area principally from central and western Michigan and eastern Indiana.

***Schlitterbahn Waterpark & Resort New Braunfels***

Schlitterbahn Waterpark & Resort New Braunfels began as a resort in 1966, was introduced as a water park in 1979 and was acquired by the Partnership in 2019. The park is consistently rated the best water park in the industry by *Amusement Today's* international survey and is one of the most attended water parks in North America. The park, located in New Braunfels, Texas, features many river rides, water slides and attractions along the Comal River. The Resort at Schlitterbahn New Braunfels includes hotel rooms, suites, cabins, luxury suites and vacation homes. Schlitterbahn Waterpark & Resort New Braunfels' major markets include San Antonio, Austin and Houston, Texas.

***Schlitterbahn Waterpark Galveston***

Schlitterbahn Waterpark Galveston opened in 2006 and was acquired by the Partnership in 2019. The park is one of the most attended water parks in North America. The park, located in Galveston, Texas, features many water attractions including an award-winning water coaster and a one-mile long river system. Schlitterbahn Waterpark Galveston serves a market area centered in Houston, Texas, as well as the tourism population in Galveston Island, Texas, a barrier island on the Texas Gulf Coast.

**CAPITAL EXPENDITURES**

We believe that annual park attendance is influenced by annual investments in our properties, including new attractions and infrastructure, among other factors. Capital expenditures are planned on a seasonal basis with most expenditures made prior to the beginning of the peak operating season. Capital expenditures made in a calendar year may differ materially from amounts identified with a particular operating season because of timing considerations such as weather conditions, site preparation requirements and availability of ride components, which may result in accelerated or delayed expenditures around calendar year-end. Due to the effects of the COVID-19 pandemic, some capital expenditures were suspended in 2020 and 2021 in order to maintain flexibility and retain liquidity.

**COMPETITION**

We compete for discretionary spending with all aspects of the recreation industry within our primary market areas, including other destination and regional amusement parks. We also compete with other forms of entertainment and recreational activities, including movies, sports events, restaurants and vacation travel.

The principal competitive factors in the amusement park industry include the uniqueness and perceived quality of the rides and attractions in a particular park, proximity to metropolitan areas, the atmosphere and cleanliness of the park, and the quality and variety of the food and immersive entertainment available. We believe that our parks feature a variety of high-quality rides and attractions, restaurants, gift shops and family atmosphere to make them highly competitive with other parks and forms of entertainment.

**GOVERNMENT REGULATION**

Our operations are subject to regulatory requirements, such as those relating to employment practices, environmental requirements, and other regulatory matters. We are subject to extensive federal and state employment laws and regulations, including wage and hour laws and other pay practices and employee record-keeping requirements. We may be required to incur costs to comply with these requirements, and the costs of compliance, investigation, remediation, litigation, and resolution of regulatory matters could be substantial.

We also are subject to federal, state and local environmental laws and regulations such as those relating to water resources; discharges to air, water and land; the handling and disposal of solid and hazardous waste; and the cleanup of properties affected by regulated materials. Under these laws and regulations, we may be required to investigate and clean up hazardous or toxic substances or chemical releases from current or formerly owned or operated facilities or to mitigate potential environmental risks. Environmental laws typically impose cleanup responsibility and liability without regard to whether the relevant entity knew of or caused the presence of the contaminants. The costs of investigation, remediation or removal of regulated materials may be substantial, and the presence of those substances, or the failure to remediate a property properly, may impair our ability to use, transfer or obtain financing with respect to our property.

Currently, we believe we are in substantial compliance with applicable requirements under these laws and regulations. However, such requirements have generally become stricter over time, and there can be no assurance that new requirements, changes in enforcement policies or newly discovered conditions relating to our properties or operations will not require significant expenditures in the future.

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All rides are inspected daily by both our maintenance and ride operations personnel before being placed into operation for our guests. The parks are also periodically inspected by our insurance carrier and, at all parks except Valleyfair, Worlds of Fun, Schlitterbahn Waterpark New Braunfels, Schlitterbahn Waterpark Galveston and Carowinds' South Carolina rides, by state or county ride-safety inspectors. Valleyfair, Worlds of Fun, Schlitterbahn Waterpark New Braunfels, Schlitterbahn Waterpark Galveston and Carowinds each contract with a third party to inspect our rides pursuant to Minnesota, Missouri, Texas and South Carolina law, respectively, and submit the third-party report to the respective state agency. Additionally, all parks have added ride maintenance and operation inspections completed by third party qualified inspectors to make sure our standards are being maintained.

**HUMAN CAPITAL**

We employ approximately 4,400 full-time employees and employed approximately 48,800 seasonal and part-time employees in 2022, many of whom are high school and college students. We house some of our seasonal employees in dormitories owned by us at Cedar Point, Kings Island, Carowinds, Kings Dominion and Valleyfair, or rented by us at Dorney Park, Worlds of Fun, Schlitterbahn Waterpark New Braunfels and Schlitterbahn Waterpark Galveston. Approximately 260 of our employees are represented by labor unions. We believe we maintain good relations with our employees.

Our employee guidelines and policies are founded on our cornerstones of safety, service and cleanliness and our core values of integrity, courtesy and inclusiveness. Our highest priority continues to be the safety and well-being of our guests and employees. We continue to monitor developments of the COVID-19 pandemic, as well as federal, state and local guidelines, and update our safety protocols based on the most recent recommendations and requirements. We are committed to equal opportunity employment and prohibit harassment or discrimination of any kind. We have adopted an open door policy to encourage an honest employer-associate relationship, which includes a confidential hotline available to all employees. As part of our commitment to our core values, we created a diversity, equity and inclusion ("DE&I") council and provided DE&I training to our employees in 2021. In 2022, we published our first Environmental, Social and Governance ("ESG") Strategy Report to establish an enterprise-wide framework to address ESG issues. The framework includes the prioritization of five key strategic pillars: Safety, Associate Happiness, Community, Environment, and Operations and Governance. The report included the introduction of the Associate Happiness Model, focusing on DE&I, and the Cedar Fair Safety Model, focusing on the safety of our employees and guests.

We maintain training programs for new employees, including safety training specific to job responsibilities. We participate in the J-1 Visa program providing cultural and educational exchange opportunities for our associates. We also have partnered with Bowling Green State University to create the Cedar Fair Resort and Attraction Management program, a bachelor's degree program, which is housed in downtown Sandusky, Ohio in a facility jointly owned by the Partnership and a third party developer. The bachelor's degree program prepares students for management careers at Cedar Fair parks or a similar establishment. We encourage a promote-from-within policy.

Our executive compensation program is designed to incentivize our key employees to drive superior results, to give key employees a vested interest in our growth and performance, and to enhance our ability to attract and retain exceptional managerial talent. Our executive compensation program rewards both successful individual performance and the consolidated operating results of the Partnership by directly tying compensation to our performance.

**AVAILABLE INFORMATION**

Copies of our annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K and all amendments to those reports as filed or furnished with the SEC are available without charge upon written request to our Investor Relations Office or through our website (<u>www.ir.cedarfair.com</u>).

We use our website <u>www.ir.cedarfair.com</u> as a channel of distribution of information. The information we post through this channel may be deemed material. Accordingly, investors should monitor this channel, in addition to following our news releases, SEC filings, and public conference calls and webcasts. The contents of our website, including without limitation the ESG Strategy Report referenced above, shall not be deemed to be incorporated herein by reference.

The SEC maintains an Internet site at <u>http://www.sec.gov</u> that contains our reports, proxy statements and other information.

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**SUPPLEMENTAL ITEM. Information about our Executive Officers**

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position(s)** |
| Richard A. Zimmerman | 62 | Richard Zimmerman has been President and Chief Executive Officer since January 2018 and a member of the Board of Directors since April 2019. Prior to becoming CEO, he served as President and Chief Operating Officer from October 2016 through December 2017 and served as Chief Operating Officer from 2011 through 2016. Prior to that, he was appointed as Executive Vice President in 2010 and as Regional Vice President in 2007. He has been with Cedar Fair since 2006, when Kings Dominion was acquired. Richard served as Vice President and General Manager of Kings Dominion from 1998 through 2006. |
| Brian C. Witherow | 56 | Brian Witherow has served as Executive Vice President and Chief Financial Officer since 2012. Prior to that, he served as Vice President and Corporate Controller beginning in 2005. Brian has been with Cedar Fair in various other positions since 1995. |
| Tim V. Fisher | 62 | Tim Fisher joined Cedar Fair as Chief Operating Officer in December 2017. Prior to joining Cedar Fair, he served as Chief Executive Officer of Village Roadshow Theme Parks International, an Australian-based theme park operator, since March 2017. Prior to this appointment with Village Roadshow Theme Parks International, Tim served as Chief Executive Officer of Village Roadshow Theme Parks since 2009. |
| Brian M. Nurse | 51 | Brian Nurse joined Cedar Fair as Executive Vice President, Chief Legal Officer and Secretary in November 2021. Prior to joining Cedar Fair, he served as Senior Vice President, General Counsel and Secretary for World Wrestling Entertainment, Inc. ("WWE"), an integrated media and entertainment company, from September 2018 to November 2020. Prior to joining WWE, Brian served as Vice President, Associate General Counsel and Secretary at Nestle Waters North America, Inc., a former division of Nestle S.A. which is a multinational food and drink corporation, from 2012 to 2018. Prior to that, he was Senior Legal Counsel for North American beverage/soft drink brands at PepsiCo, Inc., a multinational food, snack and beverage corporation, from 2003 to 2012. |
| Kelley S. Ford | 58 | Kelley Ford has served as Executive Vice President and Chief Marketing Officer since 2012. Prior to joining Cedar Fair, she served as Senior Vice President, Marketing Planning Director for TD Bank from 2010 through 2012. Prior to joining TD Bank, Kelley served as Senior Vice President of Brand Strategy and Management at Bank of America from 2005 through 2010. |
| David R. Hoffman | 54 | Dave Hoffman has served as Senior Vice President and Chief Accounting Officer since 2012. Prior to that, he served as Vice President of Finance and Corporate Tax since 2010. He served as Vice President of Corporate Tax from 2006 through 2010. Prior to joining Cedar Fair, Dave served as a business advisor with Ernst & Young from 2002 through 2006. |
| Charles E. Myers | 59 | Charles Myers joined Cedar Fair as Senior Vice President, Creative Development in June 2019. Prior to joining Cedar Fair, he held a variety of Senior Leadership roles including Show Design, Production Management and Producing at Walt Disney Imagineering, the research and development arm of the Walt Disney Company, from 2013 to June 2019. Prior to this, he served as Senior Vice President, Licensing, Project Development & Business Development of Paramount Pictures from 2002 to 2013. |

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**ITEM 1A. RISK FACTORS.**

**<u>Risks Related to the Amusement Park Industry</u>**

***Instability in economic conditions could impact our business, including our results of operations and financial condition.***

Uncertain or deteriorating economic conditions, including during inflationary and recessionary periods, may adversely impact attendance figures and guest spending patterns at our parks as uncertain economic conditions affect our guests' levels of discretionary spending. Both attendance and in-park spending at our parks are key drivers of our revenues and profitability, and reductions in either can directly and negatively affect revenues and profitability. A decrease in discretionary spending due to a decline in consumer confidence in the economy, an economic slowdown or deterioration in the economy could adversely affect the frequency with which our guests choose to attend our parks and the amount that our guests spend on our products when they visit.

Periods of inflation or economic downturn could also impact our ability to obtain supplies and services and increase our operating costs. We continue to see some inflationary effects and supply chain disruptions on our business, which may continue or worsen. In addition, the existence of unfavorable general economic conditions may also hinder the ability of those with which we do business, including vendors, concessionaires and customers, to satisfy their obligations to us. The materialization of these risks could lead to a decrease in our revenues, operating income and cash flows.

***The COVID-19 pandemic has adversely impacted our business and may continue to adversely impact our business, as well as intensify certain risks we face, for an unknown length of time.***

Since 2020, the COVID-19 pandemic has had a material negative impact on our business. On March 14, 2020, we closed our properties in response to federal and local recommendations and restrictions to mitigate the spread of COVID-19. We were ultimately able to resume partial operations, subject to capacity, social distancing mandates and other governmental restrictions, at 10 of our 13 properties on a staggered basis in 2020. We operated all of our properties in 2021. However, 2021 operating seasons were delayed and certain restrictions remained in place at some of our properties. Each of our properties opened for the 2022 operating season as planned and without restrictions.

Consumer behavior and preferences changed in response to the effects of the COVID-19 pandemic and may remain changed both in the short term and long term, including impacts on discretionary consumer spending due to significant economic uncertainty and changing risk tolerances of our employees and guests regarding health matters. In 2020, we experienced lower demand upon reopening our properties resulting in a material decrease in revenues generated. In 2021 and 2022, attendance improved, but we experienced lower demand at certain times and at certain properties. Future significant volatility or reductions in demand for, or interest in, our parks could materially adversely impact attendance, in-park per capita spending and revenue. In addition, we could experience damage to our brand and reputation due to actual or perceived health risks associated with our parks or the amusement park industry which could have a similar material adverse effect on attendance, in-park per capita spending and revenue. We may also continue to experience operational risks due to the COVID-19 pandemic, including limitations on our ability to recruit and train employees in sufficient numbers to fully staff our parks as a result of changing risk tolerances.

Because our amusement and water parks are the primary sources of net income and operating cash flows, any future mandated or voluntary closures or other operating restrictions would adversely impact our business and financial results. Our parks are geographically located throughout the United States and in Canada. The duration and severity of the COVID-19 pandemic and the related restrictions at any one location could result in a potentially disproportionate amount of risk if concentrated amongst our largest properties.

We have not previously experienced the level of disruption caused by the COVID-19 pandemic. It is difficult for management to estimate future performance under these conditions, and the ultimate impact of the COVID-19 pandemic on our business, results of operations and financial condition cannot be reasonably predicted.

***The high fixed cost structure of amusement park operations can result in significantly lower margins, profitability and cash flows if attendance levels do not meet expectations.***

A large portion of our expense is relatively fixed because the costs for full-time employees, maintenance, utilities, advertising and insurance do not vary significantly with attendance. These fixed costs may increase and may not be able to be reduced at a rate proportional with ongoing attendance levels. If cost-cutting efforts are insufficient or are impractical, we could experience a material decline in margins, profitability and cash flows. Such effects can be especially pronounced during periods of economic contraction or slow economic growth.

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***Bad or extreme weather conditions can adversely impact attendance at our parks, which in turn would reduce our revenues.***

Because most of the attractions at our parks are outdoors, attendance at our parks can be adversely affected by continuous bad or extreme weather and by forecasts of bad or mixed weather conditions, which would negatively affect our revenues. We believe that our ownership of many parks in different geographic locations reduces, but does not completely eliminate, the effect that adverse weather can have on our consolidated results.

***Our insurance coverage may not be adequate to cover all possible losses that we could suffer, and our insurance costs may increase.***

Although we carry liability insurance to cover possible incidents, there can be no assurance that our coverage will be adequate to cover liabilities, that we will be able to obtain coverage at commercially reasonable rates, or that we will be able to obtain adequate coverage should a catastrophic incident occur at our parks or at other parks. Companies engaged in the amusement park business may be sued for substantial damages in the event of an actual or alleged incident. An incident occurring at our parks or at competing parks could reduce attendance, increase insurance premiums, and negatively impact our operating results.

***Unanticipated construction delays in completing capital improvement projects in our parks and resort facilities, significant ride downtime, or other unplanned park closures could adversely affect our revenues.***

A principal competitive factor for an amusement park is the uniqueness and perceived quality of its rides and attractions in a particular market area. Accordingly, the regular addition of new rides and attractions is important, and a key element of our revenue growth is strategic capital spending on new rides and attractions. Any construction delays could adversely affect our attendance and our ability to realize revenue growth. Further, when rides, attractions, or an entire park, have unplanned downtime and/or closures, our revenue could be adversely affected.

***There is a risk of accidents or other incidents occurring at amusement and water parks, which may reduce attendance and negatively impact our revenues.***

The safety of our guests and employees is one of our top priorities. Our amusement and water parks feature thrill rides. There are inherent risks involved with these attractions, and an accident or a serious injury at any of our parks could result in negative publicity and could reduce attendance and result in decreased revenues. In addition, accidents or injuries at parks operated by our competitors could influence the general attitudes of amusement park patrons and adversely affect attendance at our parks. Other types of incidents such as food borne illnesses and disruptive, negative guest behavior which have either been alleged or proved to be attributable to our parks or our competitors could adversely affect attendance and revenues.

***Extended disruptions to our technology platforms may adversely impact our sales and revenues.***

A large portion of our sales are processed online and utilize third party technology platforms. Our increased dependence on these technology platforms may adversely impact our sales, and therefore our revenues, if key systems are disrupted for an extended period of time.

**<u>Risks Related to Our Strategy</u>**

***Our growth strategy may not achieve the anticipated results.***

Our future success will depend on our ability to grow our business, including fully recovering from the effects of the COVID-19 pandemic. We grow our business through acquisitions and capital investments to improve our parks through new rides and attractions, as well as in-park product offerings and product offerings outside of our parks. Our growth and innovation strategies require significant commitments of management resources and our investments may not grow our revenues at the rate we expect or at all. As a result, we may not be able to recover the costs incurred in developing new projects and initiatives, or to realize their intended or projected benefits, which could have a material adverse effect on our business, financial condition or results of operations.

***We compete for discretionary spending and discretionary free time with many other entertainment alternatives and are subject to factors that generally affect the recreation and leisure industry, including general economic conditions.***

Our parks compete for discretionary spending and discretionary free time with other amusement, water and theme parks and with other types of recreational activities and forms of entertainment, including movies, sporting events, restaurants and vacation travel. Our business is also subject to factors that generally affect the recreation and leisure industries and are not within our control. Such factors include, but are not limited to, general economic conditions, including relative fuel prices, and changes in consumer tastes and spending habits. There may be a material adverse effect on our business, financial condition or results of operations if we are unable to effectively compete with other entertainment alternatives.

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***The operating season at most of our parks is of limited duration, which can magnify the impact of adverse conditions or events occurring within that operating season.***

Twelve of our properties are seasonal and are generally open daily from Memorial Day through Labor Day. Outside of daily operations, our seasonal properties are typically open during select weekends, including at most properties in the fourth quarter for Halloween and winter events. As a result, a substantial portion of our revenues from these seasonal parks are generated from Memorial Day through Labor Day with the major portion concentrated during the peak vacation months of July and August. Consequently, when adverse conditions or events occur during the operating season, particularly during the peak vacation months of July and August or the important fall season, there is only a limited period of time during which the impact of those conditions or events can be mitigated. Accordingly, the timing of such conditions or events may have a disproportionate adverse effect upon our revenues.

**<u>Risks Related to Human Capital</u>**

***Increased costs of labor and employee health and welfare benefits may impact our results of operations.***

Labor is a primary component in the cost of operating our business. Increased labor costs, due to competition, inflationary pressures, increased federal, state or local minimum wage requirements, and increased employee benefit costs, including health care costs, could adversely impact our operating expenses. Over the past two to three years, we experienced a meaningful increase in seasonal labor rate in order to recruit employees in a challenging labor market. Continued increases to both market wage rates and the statutory minimum wage rates could also materially impact our future seasonal labor rates. It is possible that these changes could significantly increase our labor costs, which would adversely affect our operating results and cash flows.

***Our business depends on our ability to meet our workforce needs.***

Our success depends on our ability to attract, motivate and retain qualified employees to keep pace with our needs. If we are unable to do so, our results of operations and cash flows may be adversely affected. We employ a significant workforce each season. We recruit year-round to fill thousands of staffing positions to ensure the appropriate workforce is in place at the right time. There is no assurance that we will be able to recruit and hire adequate personnel as the business requires or that we will not experience material increases in the cost of securing our workforce in the future.

***If we lose key personnel, our business may be adversely affected.***

Our success depends in part upon a number of key employees, including our senior management team, whose members have been involved in the leisure and hospitality industries for an average of more than 20 years. The loss of services of our key employees or our inability to replace our key employees could cause disruption in important operational, financial and strategic functions and have a material adverse effect on our business.

**<u>Risks Related to Our Capital Structure</u>**

***The amount of our indebtedness could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry and prevent us from fulfilling our obligations under our debt agreements.***

We had $2.3 billion of outstanding indebtedness as of December 31, 2022 (before reduction of debt issuance costs).

The amount of our indebtedness could have important consequences. For example, it could:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limit our ability to borrow money for our working capital, capital expenditures, debt service requirements, strategic initiatives or other purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limit our flexibility in planning or reacting to changes in business and future business operations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• make it more difficult for us to satisfy our obligations with respect to our indebtedness, and any failure to comply with the obligations of any of our debt instruments, including restrictive covenants and borrowing conditions, could result in an event of default under the agreements governing other indebtedness.

In addition, we may not be able to generate sufficient cash flow from operations, or be able to draw under our revolving credit facility or otherwise, in an amount sufficient to fund our liquidity needs, including the payment of principal and interest on our debt obligations. If our cash flows and capital resources are insufficient to service our indebtedness, we may be forced to reduce or delay capital expenditures, suspend partnership distributions, sell assets, seek additional capital or restructure or refinance our indebtedness. These alternative measures may not be successful and may not permit us to meet our scheduled debt service obligations. Our ability to restructure or refinance our debt in the future will depend on the condition of the capital and credit markets and our financial condition at such time. Any refinancing of our debt could be at higher interest rates and may require us to comply with more onerous covenants, which could further restrict our business operations. In addition, the terms of our existing or future debt agreements, including our credit agreement and the indentures governing our notes, may restrict us from adopting some of these alternatives. In the absence of sufficient operating results and resources, we could face substantial liquidity problems and might be required to dispose of material assets or operations to meet our debt service and other obligations. We may not be able to consummate those dispositions for fair market value or at all. Furthermore, any proceeds that we could realize from any such dispositions may not be adequate to meet our debt service obligations then due.

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Despite the amount of our indebtedness, we may be able to incur additional indebtedness, which could further exacerbate the risks associated with the amount of our indebtedness.

***Our debt agreements contain restrictions that could limit our flexibility in investing in our business, including the ability to pay partnership distributions.***

Our credit agreement and the indentures governing our notes contain, and any future indebtedness of ours will likely contain, a number of covenants that could impose significant financial restrictions on us, including restrictions on our and our subsidiaries' ability to, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pay distributions on or make distributions in respect of our partnership units or make other Restricted Payments, including unit repurchases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• incur additional debt or issue certain preferred equity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• make certain investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sell certain assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• create restrictions on distributions from restricted subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• create liens on certain assets to secure debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• consolidate, merge, amalgamate, sell or otherwise dispose of all or substantially all our assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• enter into certain transactions with our affiliates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• designate our subsidiaries as unrestricted subsidiaries.

Our credit agreement includes a Senior Secured Leverage Ratio of 4.50x Total First Lien Senior Secured Debt-to-Consolidated EBITDA, which will step down to 4.00x in the second quarter of 2023 and which will step down further to 3.75x in the third quarter of 2023. Following an amendment in the first quarter of 2023, this financial covenant is only required to be tested at the end of any fiscal quarter in which revolving credit facility borrowings are outstanding.

Our credit agreement and fixed rate note agreements include Restricted Payment provisions, which could limit our ability to pay partnership distributions. Pursuant to the terms of the indenture governing the 2027 senior notes, which includes the most restrictive of these Restricted Payments provisions, if our pro forma Total-Indebtedness-to-Consolidated-Cash-Flow Ratio is greater than 5.25x, we can still make Restricted Payments of $100 million annually so long as no default or event of default has occurred and is continuing. If our pro forma Total-Indebtedness-to-Consolidated-Cash-Flow Ratio is less than or equal to 5.25x, we can make Restricted Payments up to our Restricted Payment pool.

***Variable rate indebtedness could subject us to the risk of higher interest rates, which could cause our future debt service obligations to increase.***

Certain of our borrowings may be at variable rates of interest and expose us to interest rate risk. If interest rates increase, our annual debt service obligations on any variable-rate indebtedness would increase even though the amount borrowed remained the same, and our net income would decrease.

**<u>Risks Related to Legal, Regulatory and Compliance Matters</u>**

***Cyber-security risks and the failure to maintain the integrity of internal or customer data could result in damages to our reputation and/or subject us to costs, fines or lawsuits.***

In the normal course of business, we, or third parties on our behalf, collect and retain large volumes of internal and customer data, including credit card numbers and other personally identifiable information, which is used for marketing and promotional purposes, and our various information technology systems enter, process, summarize and report such data. We also maintain personally identifiable information about our employees. The integrity and protection of such data is critical to our business, and our guests and employees have a high expectation that we will adequately protect their personal information. The regulatory environment, as well as the requirements imposed on us by the credit card industry, governing information, security and privacy laws is increasingly demanding and continues to evolve. Maintaining compliance with applicable security and privacy regulations may increase our operating costs and/or adversely impact our ability to market our parks, products and services to our guests. Furthermore, if a person could circumvent our security measures, he or she could destroy or steal valuable information or disrupt our operations. Any security breach could expose us to risks of data loss, which could harm our reputation and result in remedial and other costs, fines or lawsuits. Although we carry liability insurance to cover this risk, there can be no assurance that our coverage will be adequate to cover liabilities, or that we will be able to obtain adequate coverage should a catastrophic incident occur.

***Our operations, our workforce and our ownership of property subject us to various laws and regulatory compliance, which may create uncertainty regarding future expenditures and liabilities.***

We may be required to incur costs to comply with regulatory requirements, such as those relating to employment practices, environmental requirements, and other regulatory matters, and the costs of compliance, investigation, remediation, litigation, and resolution of regulatory matters could be substantial. We may also be required to incur additional costs and commit management resources to comply with proposed regulatory requirements that may become effective in the near future, including environmental, social and governance initiatives ("ESG") which continue to be a focus for investors and other stakeholders. Any ESG initiatives entered into by us may not realize their intended or projected benefits.

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We are subject to extensive federal and state employment laws and regulations, including wage and hour laws and other pay practices and employee record-keeping requirements. We periodically have had to, and may have to, defend against lawsuits asserting non-compliance. Such lawsuits can be costly, time consuming and distract management, and adverse rulings in these types of claims could negatively affect our business, financial condition or results.

We also are subject to federal, state and local environmental laws and regulations such as those relating to water resources; discharges to air, water and land; the handling and disposal of solid and hazardous waste; and the cleanup of properties affected by regulated materials. Under these laws and regulations, we may be required to investigate and clean up hazardous or toxic substances or chemical releases from current or formerly owned or operated facilities or to mitigate potential environmental risks. Environmental laws typically impose cleanup responsibility and liability without regard to whether the relevant entity knew of or caused the presence of the contaminants. The costs of investigation, remediation or removal of regulated materials may be substantial, and the presence of those substances, or the failure to remediate a property properly, may impair our ability to use, transfer or obtain financing regarding our property.

***Our tax treatment is dependent on our status as a partnership for federal income tax purposes. If the tax laws were to treat us as a corporation or we become subject to a material amount of entity-level taxation, it may substantially reduce our available cash.***

We are a limited partnership under Delaware law and are treated as a partnership for federal income tax purposes. A change in current tax law may cause us to be taxed as a corporation for federal income tax purposes or otherwise subject us to taxation as an entity. If we were treated as a corporation for federal income tax purposes, we would pay federal income tax on our entire taxable income at the corporate tax rate, rather than only on the taxable income from our corporate subsidiaries, and may be subject to additional state taxes at varying rates. Further, unitholder distributions would generally be taxed again as corporate distributions or dividends and no income, gains, losses, or deductions would flow through to unitholders. Because additional entity level taxes would be imposed upon us as a corporation, our available cash could be substantially reduced. Although we are not currently aware of any legislative proposal that would adversely impact our treatment as a partnership, we are unable to predict whether any changes or other proposals will ultimately be enacted.

***Our status as a partnership for federal income tax purposes subjects us and our unitholders to additional tax reporting that may be costly and may increase complexity.***

Because we are treated as a partnership for federal income tax purposes, we are required to annually report to our unitholders certain partnership items. The nature of these items and the evolving legislation surrounding these reporting requirements may increase our unitholders' compliance cost and the cost of owning our units.

**<u>General Risk Factors</u>**

***Other factors, including local events, natural disasters, pandemics and terrorist activities, or threats of these events, could adversely impact park attendance and our revenues.***

Lower attendance may result from various local events, natural disasters, pandemics or terrorist activities, or threats of these events, all of which are outside of our control.

**ITEM 1B. UNRESOLVED STAFF COMMENTS.**

None.

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**ITEM 2. PROPERTIES.**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Park** | | **Location** | **Approximate Total <br>Acreage** | **Approximate Developed Acreage** | **Approximate Undeveloped Acreage** |
| Cedar Point<br>Cedar Point Shores | (1) | Sandusky, Ohio | 835 | 725 | 110 |
| Knott's Berry Farm<br>Knott's Soak City |  | Buena Park, California | 175 | 175 |  |
| Canada's Wonderland |  | Vaughan, Ontario, Canada | 295 | 295 |  |
| Kings Island |  | Mason, Ohio | 680 | 330 | 350 |
| Carowinds |  | Charlotte, North Carolina and Fort Mill, South Carolina | 400 | 300 | 100 |
| Kings Dominion |  | Doswell, Virginia | 740 | 280 | 460 |
| California's Great America | (2) | Santa Clara, California | 175 | 175 |  |
| Dorney Park |  | Allentown, Pennsylvania | 210 | 180 | 30 |
| Worlds of Fun |  | Kansas City, Missouri | 350 | 250 | 100 |
| Valleyfair |  | Shakopee, Minnesota | 190 | 110 | 80 |
| Michigan's Adventure |  | Muskegon, Michigan | 260 | 120 | 140 |
| Schlitterbahn Waterpark & Resort New Braunfels |  | New Braunfels, Texas | 90 | 75 | 15 |
| Schlitterbahn Waterpark Galveston | (3) | Galveston, Texas | 40 | 35 | 5 |

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(1)&nbsp;&nbsp;&nbsp;&nbsp;Cedar Point and Cedar Point Shores are located on approximately 365 acres, virtually all of which have been developed, on the Cedar Point peninsula in Sandusky, Ohio. We also own approximately 470 acres of property on the mainland near Cedar Point with approximately 110 acres undeveloped. Cedar Point's Express Hotel, Castaway Bay Indoor Waterpark Resort and an adjoining restaurant, Castaway Bay Marina, seasonal-employee housing complexes, Cedar Point Sports Center and Sawmill Creek Resort are located on this property.

We control, through ownership or an easement, a six-mile public highway and own approximately 40 acres of vacant land adjacent to this highway, which is a secondary access route to Cedar Point and serves about 250 private residences. We maintain this roadway pursuant to deed provisions. We also own the Cedar Point Causeway, a four-lane roadway across Sandusky Bay, which is the principal access road to Cedar Point.

(2)&nbsp;&nbsp;&nbsp;&nbsp;We sold the land at California's Great America on June 27, 2022. Concurrently with the sale of the land, we entered into a lease contract that allows us to operate the park during a six-year term, and we have an option to extend the term for an additional five years. The lease is subject to early termination by the buyer with at least two years' prior notice; see <u>[Note 11](#ida49bcaab7294a3fa6f2fdc975ef3428_142)</u>.

(3)&nbsp;&nbsp;&nbsp;&nbsp;We lease the land at Schlitterbahn Waterpark Galveston through a long-term lease agreement. The lease is renewable in 2024 with options to renew at our discretion through 2049 and a right of first refusal clause to purchase the land.

All of our property is owned in fee simple and is encumbered by our credit agreement and the 2025 senior notes, with the exception of the land at California's Great America, the land at Schlitterbahn Waterpark Galveston, the land at the location of the Cedar Fair Resort and Attraction Management program, and portions of the six-mile public highway that serves as secondary access route to Cedar Point. We consider our properties to be well maintained, in good condition and adequate for our present uses and business requirements.

**ITEM 3. LEGAL PROCEEDINGS.**

None.

**ITEM 4. MINE SAFETY DISCLOSURES.**

Not applicable.

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**PART II**

**ITEM 5. MARKET FOR REGISTRANT'S DEPOSITARY UNITS, RELATED UNITHOLDER MATTERS AND ISSUER**

**PURCHASES OF DEPOSITARY UNITS.**

Cedar Fair, L.P. Depositary Units representing limited partner interests are listed for trading on The New York Stock Exchange under the symbol "FUN". As of February 10, 2023, there were approximately 4,600 registered holders of Cedar Fair, L.P. Depositary Units, representing limited partner interests. <u>[Item 12](#ida49bcaab7294a3fa6f2fdc975ef3428_166)</u> in this Form 10-K includes information regarding our equity incentive plan, which is incorporated herein by reference.

Our credit agreement and fixed rate note agreements include Restricted Payment provisions, which could limit our ability to pay partnership distributions. Pursuant to the terms of the indenture governing the 2027 senior notes, which includes the most restrictive of these Restricted Payments provisions, if our pro forma Total-Indebtedness-to-Consolidated-Cash-Flow Ratio is greater than 5.25x, we can still make Restricted Payments of $100 million annually so long as no default or event of default has occurred and is continuing. If our pro forma Total-Indebtedness-to-Consolidated-Cash-Flow Ratio is less than or equal to 5.25x, we can make Restricted Payments up to our Restricted Payment pool. Our pro forma Total-Indebtedness-to-Consolidated-Cash-Flow Ratio was less than 5.25x as of December 31, 2022.

<u>Unitholder Return Performance Graph</u>

The graph below shows a comparison of the five-year cumulative total return (assuming all distributions/dividends reinvested) for Cedar Fair, L.P. limited partnership units, the S&P 500 Index, the S&P 400 Index, and the S&P - Movies and Entertainment Index, assuming investment of $100 on December 31, 2017.

![fun-20221231_g1.jpg](fun-20221231_g1.jpg)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Return** | **Return** | **Return** | **Return** | **Return** |
| | **Base Period**<br>**2017** | **2018** | **2019** | **2020** | **2021** | **2022** |
| Cedar Fair, L.P. | $100.00 | $77.35 | $97.04 | $72.57 | $92.35 | $77.36 |
| S&P 500 | 100.00 | 95.62 | 125.73 | 148.87 | 191.60 | 156.90 |
| S&P 400 | 100.00 | 88.92 | 112.22 | 127.55 | 159.13 | 138.34 |
| S&P Movies and Entertainment | 100.00 | 100.61 | 127.49 | 177.32 | 172.96 | 86.08 |

---

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

<u>Issuer Purchases of Equity Securities</u>

The following table summarizes repurchases of Cedar Fair, L.P. Depositary Units representing limited partner interests by the Partnership during the three months ended December 31, 2022:

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| | | | | |
|:---|:---|:---|:---|:---|
| | (a) | (b) | (c) | (d) |
| <br>Period | Total Number of Units Purchased <sup>(1)</sup> | Average Price Paid per Unit | Total Number of Units Purchased as Part of Publicly Announced Plans or Programs <sup>(2)</sup> | Maximum Number (or Approximate Dollar Value) of Units that May Yet Be Purchased Under the Plans or Programs <sup>(2)</sup> |
| &nbsp;&nbsp;&nbsp;September 26 - October 31 | 1230943 | $40.22 | 1230943 | $134529377 |
| &nbsp;&nbsp;&nbsp;November 1 - November 30 | 879404 | $40.74 | 879404 | $98703337 |
| &nbsp;&nbsp;&nbsp;December 1 - December 31 | 905837 | $39.84 | 905837 | $62618601 |
| **Total** | 3016184 | $40.26 | 3016184 | $62618601 |

---

(1)All units purchased were repurchased pursuant to our unit repurchase program described in Footnote 2.

(2)On August 3, 2022, we announced that our Board of Directors approved a unit repurchase plan authorizing the Partnership to repurchase units for an aggregate purchase price of not more than $250 million. No limit was placed on the duration of the repurchase program; see <u>[Note](#ida49bcaab7294a3fa6f2fdc975ef3428_133)[8](#ida49bcaab7294a3fa6f2fdc975ef3428_133)</u>.

**ITEM 6. RESERVED.**

**ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.**

**Business Overview**

We generate our revenues from sales of (1) admission to our amusement parks and water parks, (2) food, merchandise and games both inside and outside our parks, and (3) accommodations, extra-charge products, and other revenue sources. Our principal costs and expenses, which include salaries and wages, operating supplies, maintenance and advertising, are relatively fixed for a typical operating season and do not vary significantly with attendance.

Each of our properties is overseen by a general manager and operates autonomously. Management reviews operating results, evaluates performance and makes operating decisions, including allocating resources, on a property-by-property basis.

Along with attendance and in-park per capita spending statistics, discrete financial information and operating results are prepared at the individual park level for use by the CEO, who is the Chief Operating Decision Maker (CODM), as well as by the Chief Financial Officer, the Chief Operating Officer, Senior Vice Presidents and the general managers.

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

The following table presents certain financial data expressed as a percent of total net revenues and selective statistical information for the periods indicated.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2022** | **2022** | **2021** | **2021** | **2020** | **2020** |
| | **(In thousands, except per capita spending, operating days and percentages)** | **(In thousands, except per capita spending, operating days and percentages)** | **(In thousands, except per capita spending, operating days and percentages)** | **(In thousands, except per capita spending, operating days and percentages)** | **(In thousands, except per capita spending, operating days and percentages)** | **(In thousands, except per capita spending, operating days and percentages)** |
| Net revenues: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Admissions | $925903 | 50.9% | $674799 | 50.4% | $67852 | 37.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Food, merchandise and games | 602603 | 33.2% | 432513 | 32.3% | 76921 | 42.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Accommodations, extra-charge products and other | 288877 | 15.9% | 230907 | 17.3% | 36782 | 20.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net revenues | 1817383 | 100.0% | 1338219 | 100.0% | 181555 | 100.0% |
| Operating costs and expenses | 1289142 | 70.9% | 1030466 | 77.0% | 483891 | 266.5% |
| Depreciation and amortization | 153274 | 8.4% | 148803 | 11.1% | 157549 | 86.8% |
| Loss on impairment / retirement of fixed assets, net | 10275 | 0.6% | 10486 | 0.8% | 8135 | 4.5% |
| Loss on impairment of goodwill and other intangibles |  | —% |  | —% | 103999 | 57.3% |
| Gain on sale of land | (155250) | (8.5)% |  | —% |  | —% |
| Loss (gain) on other assets |  | —% | 129 | —% | (11) | —% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income (loss) | 519942 | 28.6% | 148335 | 11.1% | (572008) | (315.1)% |
| Interest and other expense, net | 148332 | 8.2% | 183732 | 13.7% | 150222 | 82.7% |
| Net effect of swaps | (25641) | (1.4)% | (19000) | (1.4)% | 15849 | 8.7% |
| Loss on early debt extinguishment | 1810 | 0.1% | 5909 | 0.4% | 2262 | 1.2% |
| Loss (gain) on foreign currency | 23784 | 1.3% | 6177 | 0.5% | (12183) | (6.7)% |
| Provision (benefit) for taxes | 63989 | 3.5% | 20035 | 1.5% | (137915) | (76.0)% |
| Net (loss) income | $307668 | 16.9% | $(48518) | (3.6)% | $(590243) | (325.1)% |
| **Other data:** |  |  |  |  |  |  |
| Attendance | 26912 |  | 19498 |  | 2595 |  |
| In-park per capita spending | $61.65 |  | $62.03 |  | $46.38 |  |
| Operating days | 2302 |  | 1765 |  | 487 |  |

---

**Impact of COVID-19 Pandemic**

The novel coronavirus (COVID-19) pandemic had a material impact on our business in 2020, had a continuing negative impact in 2021 and may have a longer-term negative effect. Beginning on March 14, 2020, we closed our properties for several months in response to the spread of COVID-19 and local government mandates. We ultimately resumed partial operations at 10 of our 13 properties in 2020, operating in accordance with local and state guidelines. Due to soft demand trends upon reopening in 2020, park operating calendars were adjusted for the remainder of 2020, including reduced operating days per week and operating hours within each operating day and earlier closure of certain parks than a typical operating year. Following March 14, 2020, Knott's Berry Farm's partial operations in 2020 were limited to culinary festivals.

We delayed the opening of our U.S. properties for the 2021 operating season until May 2021 and opened our Canadian property in July 2021. Upon opening in 2021, we operated with capacity restrictions, guest reservations, and other operating protocols in place. Our 2021 operating calendars were designed to align with anticipated capacity restrictions, guest demand and labor availability, including fewer operating days in July and August at some of our smaller properties and additional operating days in September and the fourth quarter at most of our properties. As vaccination distribution efforts continued during the second quarter of 2021 and we were able to hire additional labor, we removed most capacity restrictions, guest reservation requirements and other protocols at our U.S. properties beginning in July 2021. Canada's Wonderland operated with capacity restrictions, guest reservations, and other operating protocols in place upon opening and throughout 2021.

Each of our properties opened for the 2022 operating season as planned and without restrictions. We currently anticipate continuing to operate without restrictions for the 2023 operating season. However, we have and may continue to adjust future park operating calendars as we respond to changes in guest demand, labor availability and any federal, provincial, state and local restrictions. Our future operations are dependent on factors beyond our knowledge or control, including any future actions taken to contain the COVID-19 pandemic and changing risk tolerances of our employees and guests regarding health matters.

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

**Critical Accounting Policies**

Management's Discussion and Analysis of Financial Condition and Results of Operations is based upon our consolidated financial statements, which were prepared in accordance with accounting principles generally accepted in the United States of America. These principles require us to make judgments, estimates and assumptions during the normal course of business that affect the amounts reported in the Consolidated Financial Statements and related notes. The following discussion addresses our critical accounting policies, which are those that are most important to the portrayal of our financial condition and operating results or involve a higher degree of judgment and complexity (see <u>[Note 2](#ida49bcaab7294a3fa6f2fdc975ef3428_109)</u> for a complete discussion of our significant accounting policies). Application of the critical accounting policies described below involves the exercise of judgment and the use of assumptions as to future uncertainties, and as a result, actual results could differ from these estimates and assumptions.

*Impairment of Long-Lived Assets*

Long-lived assets, including property and equipment, are reviewed for impairment upon the occurrence of events or changes in circumstances that would indicate that the carrying value of the assets may not be recoverable. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others: a significant decrease in the market price of a long-lived asset; a significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition; a significant adverse change in legal factors or in the business climate; an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset; past, current or future operating or cash flow losses that demonstrate continuing losses associated with the use of a long-lived asset; and a current expectation that a long-lived asset will be sold or disposed significantly before the end of its previously estimated useful life. An impairment loss may be recognized when estimated undiscounted future cash flows expected to result from the use of the asset, including disposition, are less than the carrying value of the asset. The measurement of the impairment loss to be recognized is based on the difference between the fair value and the carrying amounts of the assets. Fair value is generally determined using a combination of a cost and market approach. Significant factors considered in the cost approach include replacement cost, reproduction cost, depreciation, physical deterioration, functional obsolescence and economic obsolescence of the assets. The market approach estimates fair value by utilizing market data for similar assets. In order to determine if an asset has been impaired, assets are grouped and tested at the lowest level for which identifiable, independent cash flows are available.

The determination of whether an indicator of impairment has occurred and the estimation of undiscounted cash flows requires management to make significant estimates and consider an anticipated course of action as of the balance sheet date. Subsequent changes arising from changes in anticipated actions could impact the determination of whether impairment exists, the estimation of undiscounted cash flows and whether the effects could materially impact the consolidated financial statements.

*Goodwill and Other Intangible Assets*

Goodwill and other indefinite-lived intangible assets, including trade-names, are reviewed for impairment annually, or more frequently if indicators of impairment exist. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others: a significant decline in expected future cash flows; a sustained, significant decline in equity price and market capitalization; a significant adverse change in legal factors or in the business climate; unanticipated competition; the testing for recoverability of a significant asset group within a reporting unit; and slower growth rates. The fair value of a reporting unit is established using a combination of an income (discounted cash flow) approach and market approach. The income approach uses a reporting unit's projection of estimated operating results and discounted cash flows using a weighted-average cost of capital that reflects current market conditions. Estimated operating results are established using management's best estimates of economic and market conditions over the projected period including growth rates in revenues and costs, estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, future estimates of capital expenditures and changes in future working capital requirements. A market approach estimates fair value by applying cash flow multiples to the reporting unit's operating performance. The multiples are derived from comparable publicly traded companies with similar operating and investment characteristics of the reporting units.

It is possible that our assumptions about future performance, as well as the economic outlook and related conclusions regarding valuation, could change adversely, which may result in additional impairment that would have a material effect on our financial position and results of operations in future periods.

*Self-Insurance Reserves* 

Self-insurance reserves are recorded for the estimated amounts of guest and employee claims and related expenses incurred each period. Reserves are established for both identified claims and incurred but not reported ("IBNR") claims and are recorded when claim amounts become probable and estimable. Reserves for identified claims are based upon our historical claim experience and third-party estimates of settlement costs. Reserves for IBNR claims are based upon our claims data history. Self-insurance reserves are periodically reviewed for changes in facts and circumstances and adjustments are made as necessary. The ultimate cost for identified claims can be difficult to predict due to the unique facts and circumstances associated with each claim.

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

*Revenue Recognition*

As disclosed within the consolidated statements of operations and comprehensive income (loss), revenues are generated from sales of (1) admission to our amusement parks and water parks, (2) food, merchandise and games both inside and outside the parks, and (3) accommodations, extra-charge products, and other revenue sources. Most revenues are recognized on a daily basis based on actual guest spend at our properties. Revenues from multi-use products, including season-long products for admission, dining, beverage and other products, are recognized over the estimated number of uses expected for each type of product. The estimated number of uses is reviewed and may be updated periodically during the operating season prior to the ticket or product expiration, which generally occurs no later than the close of the operating season associated with that product. The number of uses is estimated based on historical usage adjusted for current period trends.

Due to the effects of the COVID-19 pandemic, we extended the validity of our 2020 season-long products through the 2021 operating season in order to ensure our season pass holders received a full season of access to our parks. The extended validity of the 2020 season-long products resulted in a significant amount of revenue deferred from 2020 into 2021. In addition to the extended validity through 2021, Knott's Berry Farm also offered a further day-for-day extension into calendar year 2022 for 2020 and 2021 season-long products for every day the park was closed in 2021, and Canada's Wonderland extended its 2020 and 2021 season-long products through Labour Day, or September 5, 2022. All revenue related to season-long product extensions was recognized by the third quarter of 2022. In order to calculate revenue recognized on extended season-long products, management made significant estimates regarding the estimated number of uses expected for these season-long products for admission, dining, beverage and other products, including during interim periods.

*Income Taxes*

Our legal entity structure includes both partnerships and corporate subsidiaries. We are subject to publicly traded partnership tax ("PTP tax") on certain partnership level gross income (net revenues less cost of food, merchandise, and games revenues), state and local income taxes on partnership income, U.S. federal state and local income taxes on income from our corporate subsidiaries and foreign income taxes on our foreign subsidiary. As such, the total provision for taxes includes amounts for the PTP gross income tax and federal, state, local and foreign income taxes. Under applicable accounting rules, the total provision for income taxes includes the amount of taxes payable for the current year and the impact of deferred tax assets and liabilities, which represents future tax consequences of events that are recognized in different periods in the financial statements than for tax purposes.

Our corporate subsidiaries account for income taxes under the asset and liability method. Accordingly, deferred tax assets and liabilities are recognized for the future book and tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are determined using enacted tax rates expected to apply in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax law is recognized in income at the time of enactment of such change in tax law. Any interest or penalties due for payment of income taxes are included in the provision for income taxes.

We record a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. The need for this allowance is based on several factors including the ten-year carryforward period allowed for excess foreign tax credits, experience to date of foreign tax credit limitations, carryforward periods of state net operating losses, and management's long-term estimates of domestic and foreign source income.

There is inherent uncertainty in the estimates used to project the amount of foreign tax credit and state net operating loss carryforwards that are more likely than not to be realized. It is possible that our future income projections, as well as the economic outlook and related conclusions regarding valuation allowances could change, which may result in additional valuation allowance being recorded or may result in additional valuation allowance reductions, and which may have a material negative or positive effect on our reported financial position and results of operations in future periods.

**Results of Operations**

We believe the following non-GAAP financial measures are key performance metrics in our managerial and operational reporting. They are used as major factors in significant operational decisions as they are primary drivers of our financial and operational performance, measuring demand, pricing and consumer behavior:

*Attendance* is defined as the number of guest visits to our amusement parks and separately gated outdoor water parks.

*In-park per capita spending* is calculated as revenues generated within our amusement parks and separately gated outdoor water parks along with related parking revenues (*in-park revenues*), divided by total attendance.

*Out-of-park revenues* are defined as revenues from resorts, out-of-park food and retail locations, online transaction fees charged to customers, sponsorships, and all other out-of-park operations.

Net revenues consist of *in-park revenues* and *out-of-park revenues* less amounts remitted to outside parties under concessionaire arrangements; see <u>[Note 3](#ida49bcaab7294a3fa6f2fdc975ef3428_115)</u>.

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

In the Results of Operations section, we discuss our 2022 and 2021 results, including a comparison of our 2022 results with our 2021 and 2019 results. The comparison of our 2022 to 2019 results is provided due to the effects of the COVID-19 pandemic on our 2021 and 2020 results. For a discussion regarding our 2020 results, including comparisons of our 2021 results to our 2020 and 2019 results, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" within the Company's Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on February 18, 2022.

<u>2022 vs. 2021</u>

Due to the effects of the COVID-19 pandemic, the results for the year ended December 31, 2022 were not directly comparable with the results for the year ended December 31, 2021. The year ended December 31, 2022 included 2,302 operating days compared with 1,765 operating days for the year ended December 31, 2021.

In the 2021 period and due to the effects of the COVID-19 pandemic, we postponed the opening of our parks for the 2021 operating season to May 2021, when all of our properties opened on a staggered basis except for our Canadian property, Canada's Wonderland, which opened in July 2021. Upon opening in 2021, park operating calendars were reduced, guest reservations were required, and some operating restrictions were in place. We removed most capacity restrictions, guest reservation requirements and other protocols at our U.S. properties beginning in July 2021. Operating restrictions remained in place at our Canadian property throughout 2021. We adjusted our 2021 operating calendars to reflect anticipated changes in guest demand, labor availability and state and local restrictions by including fewer operating days in July and August at some of our smaller properties and by including additional operating days in September and the fourth quarter at most of our properties. The 2021 period also included the results from limited out-of-park operations prior to the May 2021 opening of our parks. Limited out-of-park operations included some of our hotel properties and a culinary festival at Knott's Berry Farm from March 5, 2021 through May 2, 2021. Each of our properties opened for the 2022 operating season as planned and without restrictions.

The following table presents key financial information and operating statistics for the years ended December 31, 2022 and December 31, 2021:

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| | | | |
|:---|:---|:---|:---|
| | | | **Increase (Decrease)** |
| |<br>**December 31, 2022** |<br>**December 31, 2021** | $**%** |
| | **(Amounts in thousands, except for per capita and operating days)** | **(Amounts in thousands, except for per capita and operating days)** | **(Amounts in thousands, except for per capita and operating days)** |
| Net revenues | $1817383 | $1338219 | 35.8% |
| Operating costs and expenses | 1289142 | 1030466 | 25.1% |
| Depreciation and amortization | 153274 | 148803 | 3.0% |
| Loss on impairment/retirement of fixed assets, net | 10275 | 10486 | N/M |
| Gain on sale of land | (155250) |  | N/M |
| Loss on other assets |  | 129 | N/M |
| Operating income | $519942 | $148335 | 250.5% |
| **Other Data:** |  |  |  |
| Attendance (1) | 26912 | 19498 | 38.0% |
| In-park per capita spending (1) | $61.65 | $62.03 | (0.6)% |
| Out-of-park revenues | $213337 | $167978 | 27.0% |
| Operating days | 2302 | 1765 | 30.4% |

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N/M&nbsp;&nbsp;&nbsp;&nbsp;Not meaningful due to the nature of the expense line-item.

(1)&nbsp;&nbsp;&nbsp;&nbsp;Attendance and in-park per capita spending are non-GAAP financial measures. Theses metrics are used as major factors in significant operational decisions as they are primary drivers of our financial and operational performance, measuring demand, pricing and consumer behavior. See the definition and calculation of these measures above.

Consolidated net revenues totaled $1.8 billion for the year ended December 31, 2022 compared with $1.3 billion for 2021. This increase in net revenues was attributable to a 537 operating day increase in 2022 resulting in a 7.4 million-visit increase in attendance and a $45.4 million increase in out-of-park revenues. In-park per capita spending for the year ended December 31, 2022 decreased 0.6% to $61.65, which was driven by lower sales volume per guest on extra-charge products and a higher season pass mix. While the majority of the increase in out-of-park revenues was attributable to the 537 operating day increase in 2022, out-of-park revenues also increased due to the reopening of Castaway Bay Resort and Sawmill Creek Resort at Cedar Point following temporary closures for renovations and higher average daily room rates across much of our resort portfolio, offset somewhat by a prior period culinary festival at Knott's Berry Farm. The increase in net revenues included a $6.5 million unfavorable impact of foreign currency exchange rates at our Canadian park.

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

Operating costs and expenses for the year ended December 31, 2022 increased to $1.3 billion from $1.0 billion for 2021. This was the result of a $51.8 million increase in cost of food, merchandise and games revenues ("COGS"), a $166.1 million increase in operating expenses, and a $40.8 million increase in selling, general, and administrative expenses ("SG&A"), all of which were largely the result of the 537 operating day increase in 2022. While the majority of the $166.1 million increase in operating expenses was attributable to the increase in operating days, there was also an increase in full-time wages primarily related to a planned increase in head count at select parks, and incremental land lease and property tax costs associated with the sale-leaseback of the land at California's Great America. The increase in operating costs and expenses included a $3.2 million favorable impact of foreign currency exchange rates at our Canadian park.

Depreciation and amortization expense for the year ended December 31, 2022 increased $4.5 million compared with 2021 due primarily to the reduction of the estimated useful lives of the long-lived assets at California's Great America following the sale-leaseback of the land at California's Great America. The loss on impairment / retirement of fixed assets for 2022 was $10.3 million compared to $10.5 million for 2021. The loss on impairment / retirement of fixed assets for both periods included retirements of assets in the normal course of business. The 2021 period also included the impairment of a few specific assets in the second half of 2021.

After a $155.3 million gain on the sale of the land at California's Great America during the third quarter of 2022 and the items above, operating income for 2022 totaled $519.9 million compared with $148.3 million for 2021.

Interest expense for 2022 decreased $32.1 million compared with 2021 primarily due to the redemption of the 2024 senior notes in December 2021, and the repayment of our senior secured term loan facility and related termination of our interest rate swap agreements during the third quarter of 2022. The net effect of our swaps resulted in a $25.6 million benefit to earnings for 2022 compared with a $19.0 million benefit to earnings for 2021. The difference was attributable to the change in fair market value of our swap portfolio prior to the termination of our interest rate swap agreements. Upon termination of our interest rate swap agreements, we received $5.3 million at settlement, net of fees. In addition, we recognized a loss on early debt extinguishment of $1.8 million in 2022 upon full repayment of our senior secured term debt facility, and we recognized a $5.9 million loss on early debt extinguishment in 2021 related to the full redemption of our 2024 senior notes. During 2022, we also recognized a $23.8 million net charge to earnings for foreign currency gains and losses compared with a $6.2 million net charge to earnings for 2021. Both amounts primarily represented the remeasurement of U.S.-dollar denominated notes to our Canadian entity's functional currency.

For 2022, a provision for taxes of $64.0 million was recorded to account for PTP taxes and federal, state, local and foreign income taxes compared with $20.0 million recorded for 2021. The increase in provision for taxes was primarily attributable to higher pretax income from our taxable subsidiaries in 2022.

After the items above, net income for 2022 totaled $307.7 million, or $5.45 per diluted limited partner unit, compared with a net loss of $48.5 million, or $0.86 per diluted unit, for 2021.

<u>2022 vs. 2019</u>

As described above, the results for the year ended December 31, 2022 were not directly comparable with the results for the year ended December 31, 2021 due to the effects of the COVID-19 pandemic. Therefore, we have included analysis comparing our 2022 results with our 2019 results. While the 2019 results are more comparable to the 2022 results, the 2022 results are also not directly comparable with the 2019 results due to general inflationary impacts following three years of passed time, including rising costs following the COVID-19 pandemic, and the acquisition of Schlitterbahn Waterpark and Resort New Braunfels and Schlitterbahn Waterpark Galveston ("Schlitterbahn parks") on July 1, 2019. The year ended December 31, 2022 included 2,302 operating days compared with a total of 2,224 operating days for the year ended December 31, 2019. There were 85 incremental operating days at the Schlitterbahn parks in 2022 compared with 2019. Excluding the Schlitterbahn parks, there were seven fewer operating days in 2022 compared with 2019. The following table presents key financial information and operating statistics for the years ended December 31, 2022 and December 31, 2019:

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

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| | | | |
|:---|:---|:---|:---|
| | | | **Increase (Decrease)** |
| |<br>**December 31, 2022** |<br>**December 31, 2019** | $**%** |
| | **(Amounts in thousands, except for per capita and operating days)** | **(Amounts in thousands, except for per capita and operating days)** | **(Amounts in thousands, except for per capita and operating days)** |
| Net revenues | $1817383 | $1474925 | 23.2% |
| Operating costs and expenses | 1289142 | 990716 | 30.1% |
| Depreciation and amortization | 153274 | 170456 | (10.1)% |
| Loss on impairment/retirement of fixed assets, net | 10275 | 4931 | N/M |
| Gain on sale of land | (155250) |  | N/M |
| Gain on other assets |  | (617) | N/M |
| Operating income | $519942 | $309439 | 68.0% |
| **Other Data:** |  |  |  |
| Attendance (1) | 26912 | 27938 | (3.7)% |
| In-park per capita spending (1) (2) | $61.65 | $48.32 | 27.6% |
| Out-of-park revenues (2) | $213337 | $168708 | 26.5% |
| Operating days | 2302 | 2224 | 3.5% |

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N/M&nbsp;&nbsp;&nbsp;&nbsp;Not meaningful due to the nature of the expense line-item

(1)&nbsp;&nbsp;&nbsp;&nbsp;Attendance and in-park per capita spending are non-GAAP financial measures. Theses metrics are used as major factors in significant operational decisions as they are primary drivers of our financial and operational performance, measuring demand, pricing and consumer behavior. See the definition and calculation of these measures above.

(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net revenues as disclosed within the statements of operations and comprehensive income (loss) consist of in-park revenues and out-of-park revenues less amounts remitted to outside parties under concessionaire arrangements. In-park per capita spending is calculated as in-park revenues divided by total attendance. In-park revenues and concessionaire remittance totaled $1.35 billion and $43.7 million, respectively, for the year ended December 31, 2019.

For the year ended December 31, 2022, net revenues totaled $1.8 billion compared with $1.5 billion for 2019. The increase in net revenues reflected the impact of a 28%, or $13.33, increase in in-park per capita spending to $61.65, and a 26.5%, or $44.6 million increase in out-of-park revenues. These increases were partially offset by the impact of a 4%, or 1.0 million-visit, decline in attendance. The increase in in-park per capita spending was driven by higher guest spending across all key revenue categories, particularly admissions, food and beverage and extra-charge products. The increase in food and beverage and extra-charge spending was driven by both increased pricing and increased sales volume. The increase in out-of-park revenues was attributable to higher average daily room rates across much of our resort portfolio, increased online transaction fees charged to customers, higher sales at Knott's Berry Farm's Marketplace, as well as revenues from properties that opened or were acquired in 2019, including the Resort at Schlitterbahn New Braunfels and a hotel adjacent to Carowinds. The decline in attendance was driven by an expected slower recovery in group sales attendance and the planned reduction of low-value ticket programs. The increase in net revenues included a $2.6 million favorable impact of foreign currency exchange rates at our Canadian park.

Operating costs and expenses for the year ended December 31, 2022 increased $298.4 million compared with 2019. This was the result of a $38.0 million increase in COGS, a $222.1 million increase in operating expenses and a $38.3 million increase in SG&A expense. COGS as a percentage of food, merchandise and games revenue increased 0.6% as the result of general inflationary cost pressures. The increase in operating expenses was attributable to a significant increase in seasonal labor rate, higher full-time wages primarily related to a planned increase in head count at select parks, higher related employee taxes and benefits, the inclusion of the Schlitterbahn parks, higher costs for supplies, and incremental land lease and property tax costs associated with the sale-leaseback of the land at California's Great America. The increase in SG&A expense was largely due to an increase in full-time wages, including an increase in accrued bonus and equity-based compensation plan expenses, as well as an increase in transaction fees and technology related costs. These increases in SG&A expense were offset by a decline in advertising costs driven by a more efficient digital media strategy. The increase in operating costs and expenses included a $1.4 million unfavorable impact of foreign currency exchange rates at our Canadian park.

Depreciation and amortization expense for the year ended December 31, 2022 decreased $17.2 million compared with 2019 due primarily to the full depreciation of 15-year useful lived property and equipment from our 2006 acquisition of Paramount Parks, Inc., as well as the change in estimated useful life of a long-lived asset at Kings Dominion in 2019. These decreases were somewhat offset by the reduction of the estimated useful lives of the long-lived assets at California's Great America following the sale-leaseback of the land at California's Great America. The loss on impairment / retirement of fixed assets for 2022 was $10.3 million compared with $4.9 million for 2019, both of which included retirements of assets in the normal course of business.

After a $155.3 million gain on the sale of land at California's Great America during the third quarter of 2022 and the items above, operating income for 2022 totaled $519.9 million compared with $309.4 million for 2019.

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Interest expense for 2022 increased $51.6 million compared with 2019 due to interest incurred on the 2025 senior notes, 2028 senior notes and 2029 senior notes offset in part by the impact of the redemption of the 2024 senior notes in December 2021 and the prepayment of term debt in 2020. The 2025 senior notes and the 2028 senior notes were issued in 2020 to supplement liquidity in response to the impacts of the COVID-19 pandemic, and the 2029 senior notes were issued at the end of the second quarter of 2019 in coordination with the acquisition of the Schlitterbahn parks. The net effect of our swaps resulted in a $25.6 million benefit to earnings for 2022 compared with a $16.5 million charge to earnings for 2019. The difference was attributable to the change in fair market value of our swap portfolio prior to termination of our interest rate swap agreements. We terminated our interest rate swap agreements during the third quarter of 2022 following the full repayment of our senior secured term loan facility resulting in a $5.3 million cash receipt upon termination, net of fees. In addition, we recognized a $1.8 million loss on early debt extinguishment in 2022 upon full repayment of our senior secured term debt facility. During 2022, we also recognized a $23.8 million net charge to earnings for foreign currency gains and losses compared with a $21.1 million net benefit to earnings for 2019. Both amounts primarily represented the remeasurement of U.S.-dollar denominated notes to our Canadian entity's functional currency.

For 2022, a provision for taxes of $64.0 million was recorded to account for PTP taxes and federal, state, local and foreign income taxes compared with $42.8 million recorded for 2019. The increase in provision for taxes was primarily attributable to higher pretax income from our taxable subsidiaries in 2022.

After the items above, net income for 2022 totaled $307.7 million, or $5.45 per diluted limited partner unit, compared with $172.4 million, or $3.03 per diluted unit, for 2019.

**Adjusted EBITDA**

Adjusted EBITDA represents earnings before interest, taxes, depreciation, amortization, other non-cash items, and adjustments as defined in our current and prior credit agreements. Adjusted EBITDA is not a measurement of operating performance computed in accordance with generally accepted accounting principles ("GAAP") and should not be considered as a substitute for operating income, net income or cash flows from operating activities computed in accordance with GAAP. Management believes Adjusted EBITDA is a meaningful measure of park-level operating profitability and we use it for measuring returns on capital investments, evaluating potential acquisitions, determining awards under incentive compensation plans, and calculating compliance with certain loan covenants. Adjusted EBITDA is widely used by analysts, investors and comparable companies in our industry to evaluate our operating performance on a consistent basis, as well as more easily compare our results with those of other companies in our industry. This measure is provided as a supplemental measure of our operating results and may not be comparable to similarly titled measures of other companies.

The table below sets forth a reconciliation of Adjusted EBITDA to net income (loss) for the periods indicated. Due to the effects of the COVID-19 pandemic on our 2021 and 2020 results, we included a comparison of 2022 results to 2019 results.

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| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| **(In thousands)** | **2022** | **2021** | **2019** |
| **Net income (loss)** | $307668 | $(48518) | $172365 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 151940 | 184032 | 100364 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | (3621) | (94) | (2033) |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for taxes | 63989 | 20035 | 42789 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 153274 | 148803 | 170456 |
| **EBITDA** | 673250 | 304258 | 483941 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on early debt extinguishment | 1810 | 5909 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net effect of swaps | (25641) | (19000) | 16532 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash foreign currency loss (gain) | 23856 | 6255 | (21061) |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash equity compensation expense | 20589 | 15431 | 12434 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on impairment/retirement of fixed assets, net | 10275 | 10486 | 4931 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of land | (155250) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss (gain) on other assets |  | 129 | (617) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition-related costs |  |  | 7162 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other <sup>(1)</sup> | 3064 | 1173 | 1351 |
| **Adjusted EBITDA** | $551953 | $324641 | $504673 |

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(1)&nbsp;&nbsp;&nbsp;&nbsp;Consists of certain costs as defined in our current and prior credit agreements. These items are excluded from the calculation of Adjusted EBITDA and have included certain legal expenses and severance and related benefits. This balance also includes unrealized gains and losses on short-term investments.

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For 2022, Adjusted EBITDA increased $227.3 million compared with 2021. The increase was primarily due to the 537 operating day increase in 2022 and the related improvement in attendance and out-of-park revenues offset somewhat by an increase in expenses incurred, particularly for labor and cost of goods sold. As compared with 2019, Adjusted EBITDA increased $47.3 million for 2022. This increase in Adjusted EBITDA was due to higher net revenues in 2022 driven by higher in-park per capita spending, increased out-of-park revenues and the inclusion of the Schlitterbahn parks, all of which were somewhat offset by increased costs in the current period, particularly labor costs and macro-environment inflationary pressures that increased other operating costs and expenses across our operations.

**Liquidity and Capital Resources**

Our principal sources of liquidity typically include cash from operating activities, funding from our long-term debt obligations and existing cash on hand. Due to the seasonality of our business, we typically fund pre-opening operations with revolving credit borrowings. Revolving credit borrowings are typically reduced with our positive cash flow during the seasonal operating period. Our primary uses of liquidity typically include operating expenses, partnership distributions, capital expenditures, interest payments, income tax obligations, and recently, limited partnership unit repurchases.

We funded our 2022 liquidity needs and expect to fund our 2023 liquidity needs from cash from operating activities and borrowings from our revolving credit facility. As of December 31, 2022, we had cash on hand of $101.2 million and availability under our revolving credit facility of $280.1 million. Based on this level of liquidity, we concluded that we will have sufficient liquidity to satisfy our obligations and remain in compliance with our debt covenants at least through the first quarter of 2024. Due to limited open operations in 2020 and early 2021, our 2020 and first quarter 2021 liquidity needs were funded from cash on hand from senior notes issued in 2020. We began generating positive cash flows from operations during the second quarter of 2021.

Management has been focused on driving profitable and sustainable growth in the business, reducing the Partnership's outstanding debt, reinstating the quarterly partnership distribution, and accelerating the return of capital to our unitholders.

–We expect to invest between $185 million and $200 million in capital expenditures for the 2023 operating season, which will include large-scale updates to major sections of our parks, new roller coasters and other rides and attractions, upgraded and expanded food and beverage facilities, the renovation of the Knott's Berry Farm Hotel and major events to celebrate two 50-year park anniversaries.

**–**We sold the land at California's Great America for a cash purchase price of $310 million, subject to customary prorations in June 27, 2022; see <u>[Note 4](#ida49bcaab7294a3fa6f2fdc975ef3428_118)</u>.

–We continue to make progress towards our goal of reducing outstanding debt. In December 2021, we redeemed $450 million of senior unsecured notes due 2024. In 2022, we repaid the remaining outstanding principal amount on our senior secured term loan facility totaling $264.3 million.

–We began paying partnership distributions again following a suspension of partnership distributions that began in March 2020. We paid partnership distributions of $0.30 per limited partner unit on both September 15, 2022 and December 15, 2022. On February 16, 2023, we announced that our Board declared an additional partnership distribution of $0.30 per limited partner unit, which will be payable on March 21, 2023 to unitholders of record on March 7, 2023.

–Lastly, on August 3, 2022, we announced that our Board of Directors approved a unit repurchase plan authorizing the Partnership to repurchase units for an aggregate purchase price of not more than $250 million; see <u>[Note](#ida49bcaab7294a3fa6f2fdc975ef3428_133)[8](#ida49bcaab7294a3fa6f2fdc975ef3428_133)</u>. There were 4.5 million limited partnership units repurchased during the year ended December 31, 2022 at an average price of $41.28 per limited partner unit for an aggregate amount of $187.4 million. There was $62.6 million of remaining availability under the repurchase program as of December 31, 2022. Through January 31, 2023, we had repurchased approximately 5.0 million limited partnership units for an aggregate amount of $208.0 million.

We anticipate cash interest payments between $130 million and $140 million during 2023 of which approximately 70% of the payments will occur in the second and fourth quarters. We anticipate cash payments for income taxes to range from $50 million to $60 million in 2023.

As of December 31, 2022, deferred revenue totaled $172.7 million, including non-current deferred revenue. This represented a decrease of $24.9 million compared with total deferred revenue as of December 31, 2021. The decrease in total deferred revenue was largely attributable to approximately $30 million of 2020 and 2021 season-long product extensions at Knott's Berry Farm and Canada's Wonderland in 2021 into the 2022 operating season. Excluding the prior period deferred revenue associated with product extensions, deferred revenue increased 3% as of December 31, 2022 compared with deferred revenue as of December 31, 2021.

*Operating Activities*

Net cash from operating activities in 2022 totaled $407.7 million compared with $201.2 million in 2021 and net cash for operating activities of $416.5 million in 2020. The variance between years was attributable to lower earnings in 2020, and to a lesser extent in 2021, as a result of disrupted operations due to the COVID-19 pandemic.

Cash interest payments totaled $137.7 million in 2022 compared with $174.3 million in 2021 and $130.4 million in 2020. The decrease in cash interest payments from 2021 was attributable to the redemption of the 2024 senior notes in December 2021,

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and the repayment of our senior secured term loan facility and related termination of our interest rate swap agreements during the third quarter of 2022. The increase in cash interest payments from 2020 was attributable to a full year of interest paid on the 2025 senior notes and 2028 senior notes which were issued during 2020 offset by the redemption of the 2024 senior notes and repayment of our senior secured term loan facility in the current year. Net cash refunds for income taxes totaled $47.2 million in 2022 compared with net cash payments of $10.1 million in 2021 and $1.8 million in 2020. The variance between years for cash (refunds) payments for income taxes was attributable to $90.7 million in tax refunds received in the current year for the net operating loss in tax year 2020 being carried back to prior years. The remaining variance was due to the impact of disrupted operations in 2020, and to a lesser extent 2021.

*Investing Activities*

Net cash from investing activities in 2022 totaled $126.6 million, an increase of $184.4 million compared with net cash for investing activities in 2021 and an increase of $247.5 million compared with net cash for investing activities in 2020. The increases from 2021 and 2020 were attributable to the current year sale of the land at California's Great America somewhat offset by higher capital spending in 2022 following a planned reduction in capital spending in 2020 and 2021 to retain liquidity as a result of the impact of the COVID-19 pandemic.

*Financing Activities*

Net cash for financing activities in 2022 totaled $489.6 million, an increase of $23.1 million compared with 2021 and a decrease of $1.2 billion compared with net cash from financing activities in 2020. The variances from 2021 and 2020 were attributable to the impacts of the COVID-19 pandemic and the related timing of debt borrowings and payments. In 2020, we borrowed additional debt as a result of the impacts of the COVID-19 pandemic. In 2021 and 2022, we reduced our outstanding debt by redeeming the 2024 senior notes in 2021 and repaying our senior secured term loan facility in 2022. In 2022, we also repurchased $184.6 million of limited partnership units. We made partnership distributions in the third and fourth quarters of 2022 and the first quarter of 2020.

*Contractual Obligations*

As of December 31, 2022, our primary contractual obligations consisted of outstanding long-term debt agreements. We also have various commitments under our lease agreements; see <u>[Note 11](#ida49bcaab7294a3fa6f2fdc975ef3428_142)</u>. Before reduction for debt issuance costs, our long-term debt agreements consisted of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $1.0 billion of 5.500% senior secured notes, maturing in May 2025, issued at par. The 2025 senior notes and the related guarantees are secured by first-priority liens on the issuers' and the guarantors' assets that secure all the obligations under our credit facilities. The 2025 senior notes may be redeemed, in whole or in part, at various prices depending on the date redeemed. The 2025 senior notes pay interest semi-annually in May and November.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $500 million of 5.375% senior unsecured notes, maturing in April 2027, issued at par. The 2027 senior notes may be redeemed, in whole or in part, at various prices depending on the date redeemed. The 2027 senior notes pay interest semi-annually in April and October.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $300 million of 6.500% senior unsecured notes, maturing in October 2028, issued at par. Prior to October 1, 2023, up to 35% of the 2028 senior notes may be redeemed with the net cash proceeds of certain equity offerings at a price equal to 106.500% of the principal amount thereof, together with accrued and unpaid interest and additional interest, if any. The 2028 senior notes may be redeemed, in whole or in part, at any time prior to October 1, 2023 at a price equal to 100% of the principal amount of the notes redeemed plus a "make-whole" premium together with accrued and unpaid interest and additional interest, if any, to the redemption date. Thereafter, the 2028 senior notes may be redeemed, in whole or in part, at various prices depending on the date redeemed. The 2028 senior notes pay interest semi-annually in April and October.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $500 million of 5.250% senior unsecured notes, maturing in July 2029, issued at par. The 2029 senior notes may be redeemed, in whole or in part, at any time prior to July 15, 2024 at a price equal to 100% of the principal amount of the notes redeemed plus a "make-whole" premium together with accrued and unpaid interest and additional interest, if any, to the redemption date. Thereafter, the 2029 senior notes may be redeemed, in whole or in part, at various prices depending on the date redeemed. The 2029 senior notes pay interest semi-annually in January and July.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No borrowings under the $300 million senior secured revolving credit facility under our current credit agreement with a Canadian sub-limit of $15 million. Following an amendment in the first quarter of 2023 (see <u>[Note 13](#ida49bcaab7294a3fa6f2fdc975ef3428_1465)</u>), the revolving credit facility bears interest at Secured Overnight Financing Rate ("SOFR") plus 350 bps and requires the payment of a 62.5 bps commitment fee per annum on the unused portion of the credit facilities. Following the amendment, the senior secured revolving credit facility matures on February 10, 2028, provided that the maturity date will be (x) January 30, 2025 if at least $200.0 million of the 2025 senior notes remain outstanding as of that date, or (y) January 14, 2027 if at least $200.0 million of the 2027 senior notes remain outstanding as of that date. The credit agreement provides for the issuance of documentary and standby letters of credit. After letters of credit, which totaled $19.9 million as of December 31, 2022 and $15.8 million as of December 31, 2021, we had availability under our revolving credit facility of

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$280.1 million as of December 31, 2022 and $359.2 million as of December 31, 2021. Our letters of credit are primarily in place to backstop insurance arrangements.

On December 17, 2021, we redeemed $450 million of 5.375% senior unsecured notes, which otherwise would have matured in June 2024, at a redemption price equal to 100.896% of the principal amount plus accrued and unpaid interest. We repaid the remaining outstanding balance on our senior secured term loan facility in 2022 ($264.3 million in principal amount), completing the full repayment of the term loan during the third quarter of 2022. Subsequently, we also terminated our interest rate swap agreements.

The 2017 Credit Agreement, as amended, includes a Senior Secured Leverage Ratio of 4.50x Total First Lien Senior Secured Debt-to-Consolidated EBITDA, which will step down to 4.00x in the second quarter of 2023 and which will step down further to 3.75x in the third quarter of 2023. Following the amendment in the first quarter of 2023, this financial covenant is only required to be tested at the end of any fiscal quarter in which revolving credit facility borrowings are outstanding. The 2017 Credit Agreement, as amended and as in effect prior to the first quarter of 2023 amendment, included an Additional Restrictions Period to provide further covenant relief during the COVID-19 pandemic. We terminated the Additional Restrictions Period during the first quarter of 2022 by achieving compliance with the Senior Secured Leverage Ratio covenant as of the end of the fourth quarter of 2021. We were in compliance with the applicable financial covenants under our credit agreement during 2022.

Our credit agreement and fixed rate note agreements include Restricted Payment provisions, which could limit our ability to pay partnership distributions. Pursuant to the terms of the indenture governing the 2027 senior notes, which includes the most restrictive of these Restricted Payments provisions, if our pro forma Total-Indebtedness-to-Consolidated-Cash-Flow Ratio is greater than 5.25x, we can still make Restricted Payments of $100 million annually so long as no default or event of default has occurred and is continuing. If our pro forma Total-Indebtedness-to-Consolidated-Cash-Flow Ratio is less than or equal to 5.25x, we can make Restricted Payments up to our Restricted Payment pool. Our pro forma Total-Indebtedness-to-Consolidated-Cash-Flow Ratio was less than 5.25x as of December 31, 2022.

**Financial and Non-Financial Disclosure About Issuers and Guarantors of our Registered Senior Notes**

As discussed within the Long-Term Debt footnote at <u>[Note 6](#ida49bcaab7294a3fa6f2fdc975ef3428_124)</u>, we had four tranches of fixed rate senior notes outstanding at December 31, 2022: the 2025, 2027, 2028 and 2029 senior notes. The 2024 senior notes were fully redeemed on December 17, 2021. The 2024, 2027, 2028 and 2029 senior notes were registered under the Securities Act of 1933. The 2025 senior notes were sold in a private placement in reliance on exemptions from registration under the Securities Act of 1933. Cedar Fair, L.P., Canada's Wonderland Company ("Cedar Canada"), and Magnum Management Corporation ("Magnum") were the co-issuers of the 2024 senior notes. Cedar Fair, L.P., Cedar Canada, Magnum, and Millennium Operations LLC ("Millennium") are the co-issuers of the 2027, 2028 and 2029 senior notes. Our senior notes have been irrevocably and unconditionally guaranteed, on a joint and several basis, by each wholly owned subsidiary of Cedar Fair (other than the co-issuers) that guarantees our credit facilities under our credit agreement. A full listing of the issuers and guarantors of our registered senior notes can be found within Exhibit 22, and additional information with respect to our registered senior notes and the related guarantees follows.

The 2027, 2028 and 2029 senior notes each rank equally in right of payment with all of each issuer's existing and future senior unsecured debt, including the other registered senior notes. However, the 2027, 2028 and 2029 senior notes rank effectively junior to our secured debt under the 2017 Credit Agreement, as amended, and the 2025 senior notes to the extent of the value of the assets securing such debt.

In the event that the co-issuers (except for Cedar Fair, L.P.) or any subsidiary guarantor is released from its obligations under our senior secured credit facilities (or the 2017 Credit Agreement, as amended), such entity will also be released from its obligations under the registered senior notes. In addition, the co-issuers (except for Cedar Fair, L.P.) or any subsidiary guarantor can be released from its obligations under the 2027, 2028 and 2029 senior notes under the following circumstances, assuming the associated transactions are in compliance with the applicable provisions of the indentures governing the 2027, 2028 and 2029 senior notes: i) any direct or indirect sale, conveyance or other disposition of the capital stock of such entity following which the entity ceases to be a direct or indirect subsidiary of Cedar Fair or a sale or disposition of all or substantially all of the assets of such entity; ii) if such entity is dissolved or liquidated; iii) if we designate such entity as an Unrestricted Subsidiary; iv) upon transfer of such entity in a qualifying transaction if following such transfer the entity ceases to be a direct or indirect Restricted Subsidiary of Cedar Fair or is a Restricted Subsidiary that is not a guarantor under any credit facility; or v) in the case of the subsidiary guarantors, upon a discharge of the indenture or upon any legal defeasance or covenant defeasance of the indenture.

The obligations of each guarantor are limited to the extent necessary to prevent such guarantee from constituting a fraudulent conveyance or fraudulent transfer under applicable law. This provision may not, however, protect a guarantee from being voided under fraudulent transfer law, or may reduce the applicable guarantor's obligation to an amount that effectively makes its guarantee worthless. If a guarantee were rendered voidable, it could be subordinated by a court to all other indebtedness of the guarantor, and depending on the amount of such indebtedness, could reduce the guarantee to zero. Each guarantor that makes a payment or distribution under a guarantee is entitled to a pro rata contribution from each other guarantor based on the respective net assets of the guarantors.

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The following tables provide summarized financial information for each of our co-issuers and guarantors of the 2024, 2027, 2028 and 2029 senior notes (the "Obligor Group"). We presented each entity that is or was a co-issuer of any series of the registered senior notes separately. The subsidiaries that guarantee the 2027, 2028 and 2029 senior notes are presented on a combined basis with intercompany balances and transactions between entities in such guarantor subsidiary group eliminated. Intercompany balances and transactions between the co-issuers and guarantor subsidiaries have not been eliminated. The subsidiaries that guaranteed the 2024 senior notes included the guarantor subsidiary group, as well as Millennium. Millennium is a co-issuer under the 2027, 2028 and 2029 senior notes and was a guarantor under the 2024 senior notes. Certain subsidiaries of Cedar Fair did not guarantee our credit facilities or senior notes as the assets and results of operations of these subsidiaries were immaterial (the "non-guarantor" subsidiaries). The summarized financial information excludes results of the non-guarantor subsidiaries and does not reflect investments of the Obligor Group in the non-guarantor subsidiaries. The Obligor Group's amounts due from, amounts due to, and transactions with the non-guarantor subsidiaries have not been eliminated and included intercompany receivables from non-guarantors of $14.3 million and $14.0 million as of December 31, 2022 and December 31, 2021, respectively.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Summarized Financial Information<br>(In thousands)** | **Cedar Fair L.P. (Parent)** | **Magnum<br>(Co-Issuer Subsidiary)** | **Cedar Canada <br>(Co-Issuer Subsidiary)** | **Millennium<br>(Co-Issuer 2027, 2028 & 2029<br>Guarantor 2024)** | **Guarantor Subsidiaries (1)** |
| **Balance as of December 31, 2022** | **Balance as of December 31, 2022** | | | | |
| &nbsp;&nbsp;Current Assets | $507 | $32194 | $82860 | $409869 | $1400403 |
| &nbsp;&nbsp;Non-Current Assets | (202160) | 1583510 | 563637 | 2214189 | 1870827 |
| &nbsp;&nbsp;Current Liabilities | 237793 | 1247618 | 261744 | 213669 | 103436 |
| &nbsp;&nbsp;Non-Current Liabilities | 147937 | 1238 | 14142 | 2135550 | 159493 |
| **Balance as of December 31, 2021** | **Balance as of December 31, 2021** |  |  |  |  |
| &nbsp;&nbsp;Current Assets | $517 | $97221 | $96042 | $572865 | $1187211 |
| &nbsp;&nbsp;Non-Current Assets | (138126) | 1647952 | 540332 | 2368737 | 2145307 |
| &nbsp;&nbsp;Current Liabilities | 410779 | 1331130 | 29050 | 227483 | 58949 |
| &nbsp;&nbsp;Non-Current Liabilities | 147021 | 21274 | 24043 | 2385100 | 97803 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | | | | |
| &nbsp;&nbsp;Net revenues | $210192 | $522915 | $179180 | $2174828 | $320682 |
| &nbsp;&nbsp;Operating income (loss) | 207251 | (116440) | 80880 | 124469 | 224675 |
| &nbsp;&nbsp;Net income | 308808 | 141776 | 65665 |  | 216578 |
| **Year Ended December 31, 2021** | **Year Ended December 31, 2021** |  |  |  |  |
| &nbsp;&nbsp;Net revenues | $35908 | $363340 | $75353 | $1449022 | $344778 |
| &nbsp;&nbsp;Operating income (loss) | 31808 | (156079) | 12545 | 136844 | 124405 |
| &nbsp;&nbsp;Net (loss) income | (46741) | (34647) | 1967 |  | 62586 |

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(1)&nbsp;&nbsp;&nbsp;&nbsp;With respect to the 2024 senior notes, if the financial information presented for Millennium was combined with that of the other guarantor subsidiaries that have been presented on a combined basis, the following additional intercompany balances and transactions between Millennium and such other guarantor entities would be eliminated: Current Assets and Current Liabilities - $13.7 million as of December 31, 2022 and $13.4 million as of December 31, 2021; Non-Current Assets - $2.10 billion as of December 31, 2022 and $2.25 billion as of December 31, 2021; and Net revenues - $43.6 million as of December 31, 2022 and $126.6 million as of December 31, 2021. Combined amounts for all guarantors of the 2024 senior notes for all other line items within the table would be computed by adding the amounts in the Millennium and Guarantor Subsidiaries columns.

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**Quantitative and Qualitative Disclosures about Market Risk**

We are exposed to market risks from fluctuations in interest rates and currency exchange rates on our operations in Canada, and from time to time, on imported rides and equipment. The objective of our financial risk management is to reduce the potential negative impact of interest rate and foreign currency exchange rate fluctuations to acceptable levels. We do not acquire market risk sensitive instruments for trading purposes.

We typically manage interest rate risk using a combination of fixed-rate long-term debt, interest rate swaps that fix our variable-rate long-term debt, and variable-rate borrowings under our revolving credit facility. Translation exposures with regard to our Canadian operations are not hedged.

We repaid all of our outstanding variable-rate long-term debt during the third quarter of 2022 and subsequently terminated our interest rate swap agreements. Therefore, as of December 31, 2022, all of our outstanding long-term debt represented fixed-rate debt except for revolving credit borrowings. Assuming the daily average balance over the past twelve months on revolving credit borrowings of approximately $52.7 million, a hypothetical 100 bps increase in 30-day SOFR on our variable-rate debt would lead to an increase of approximately $0.5 million in cash interest costs over the next twelve months.

A uniform 10% strengthening of the U.S. dollar relative to the Canadian dollar would result in an $8.1 million decrease in annual operating income for the year ended December 31, 2022.

**Forward Looking Statements**

Some of the statements contained in this report (including the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section) that are not historical in nature are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements as to our expectations, beliefs, goals and strategies regarding the future. These forward-looking statements may involve risks and uncertainties that are difficult to predict, may be beyond our control and could cause actual results to differ materially from those described in such statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct or that our growth strategies will achieve the targeted results. Important factors, including those listed under Item 1A in this Form 10-K could adversely affect our future financial performance and our growth strategies and could cause actual results to differ materially from our expectations. We do not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the filing date of this document.

**ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.**

The information appearing under the subheading "Quantitative and Qualitative Disclosures about Market Risk" under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Report is incorporated herein by reference.

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

**ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.**

**CEDAR FAIR, L.P.**

**FINANCIAL STATEMENTS INDEX**

---

| | |
|:---|:---|
| <u>[Report of Independent Registered Public Accounting Firm (PCAOB ID](#ida49bcaab7294a3fa6f2fdc975ef3428_79)</u><u>34[)](#ida49bcaab7294a3fa6f2fdc975ef3428_79)</u> | <u>[29](#ida49bcaab7294a3fa6f2fdc975ef3428_79)</u> |
| <u>[Consolidated Balance Sheets](#ida49bcaab7294a3fa6f2fdc975ef3428_82)</u> | <u>[31](#ida49bcaab7294a3fa6f2fdc975ef3428_82)</u> |
| <u>[Consolidated Statements of Operations and Comprehensive Income (Loss)](#ida49bcaab7294a3fa6f2fdc975ef3428_85)</u> | <u>[32](#ida49bcaab7294a3fa6f2fdc975ef3428_85)</u> |
| <u>[Consolidated Statements of Partners' Deficit](#ida49bcaab7294a3fa6f2fdc975ef3428_88)</u> | <u>[33](#ida49bcaab7294a3fa6f2fdc975ef3428_88)</u> |
| <u>[Consolidated Statements of Cash Flows](#ida49bcaab7294a3fa6f2fdc975ef3428_94)</u> | <u>[34](#ida49bcaab7294a3fa6f2fdc975ef3428_94)</u> |
| <u>[Index for Notes to Consolidated Financial Statements](#ida49bcaab7294a3fa6f2fdc975ef3428_97)</u> | <u>[35](#ida49bcaab7294a3fa6f2fdc975ef3428_97)</u> |

---

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

**<u>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</u>**

To the Unitholders and the Board of Directors of

Cedar Fair, L.P.

**Opinions on the Financial Statements and Internal Control over Financial Reporting**

We have audited the accompanying consolidated balance sheets of Cedar Fair, L.P., and subsidiaries (the "Partnership") as of December 31, 2022 and 2021, the related consolidated statements of operations and comprehensive income (loss), partners' deficit, and cash flows for each of the three years in the period ended December 31, 2022, and the related notes (collectively referred to as the "financial statements"). We also have audited the Partnership's internal control over financial reporting as of December 31, 2022, based on criteria established in *Internal Control - Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Partnership as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2022, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the Partnership maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on criteria established in *Internal Control - Integrated Framework (2013)* issued by COSO.

**Basis for Opinions**

The Partnership's management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on these financial statements and an opinion on the Partnership's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures to respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

**Definition and Limitations of Internal Control over Financial Reporting**

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

**Critical Audit Matters**

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing a separate opinion on the critical audit matters or on the accounts or disclosures to which they relate.

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

***Deferred Revenues - Refer to Notes 2 and 3 to the consolidated financial statements***

*Critical Audit Matter Description*

The Partnership defers revenue for its multi-use products, including season-long products for admissions, dining, beverages, and other products and recognizes revenues over the estimated number of uses expected for each type of product. The Partnership estimates a redemption rate for each multi-use product using historical and forecasted uses at each park. Revenue is then recognized on a pro-rated basis based on the estimated allocated selling price of the multi-use product and the estimated uses of that product. During the third quarter of 2022, management began selling multi-use products for the 2023 operating season. These products include providing the customer park access for the remainder of the 2022 operating season. Deferred revenue as of December 31, 2022 was $163 million.

Auditing the amount of deferred revenue associated with the multi-use products that should be recognized in each fiscal year required a high degree of auditor judgment and increased extent of effort.

*How the Critical Audit Matter Was Addressed in the Audit*

Our audit procedures related to the estimated park use projections and the recognition of revenue from deferred revenue included the following, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We tested the effectiveness of controls over revenue recognition related to multi-use products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We tested the completeness and accuracy of the year end deferred revenue balance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We evaluated the reasonableness of the year-over-year change in deferred revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We tested whether revenue relating to the current fiscal year was appropriately recognized.

***Schlitterbahn Goodwill Valuation - Refer to Notes 2 and 5 to the consolidated financial statements***

*Critical Audit Matter Description*

The Partnership's evaluation of goodwill for impairment involves the comparison of the fair value of each reporting unit to its carrying value. The Partnership determines the fair value of its reporting units using a combination of an income (discounted cash flow) approach and the market approach. The determination of the fair value using the income approach requires management to make significant assumptions related to terminal value growth rates and weighted-average cost of capital. The determination of the fair value using the market approach requires management to make significant assumptions related to the selection of comparable publicly traded companies and cash flow multiples to determine the fair value. The goodwill balance was $263 million as of December 31, 2022, of which $93 million was allocated to the Schlitterbahn Waterpark & Resort New Braunfels and the Schlitterbahn Waterpark Galveston Reporting Unit ("Schlitterbahn").

Given the significant estimates and assumptions management makes to estimate the fair value of Schlitterbahn and the sensitivity of Schlitterbahn's fair value to changes in those estimates and assumptions, performing audit procedures to evaluate the reasonableness of management's estimates and assumptions, including terminal value growth rate, weighted-average cost of capital, comparable publicly traded companies, and cash flow multiples required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists.

*How the Critical Audit Matter Was Addressed in the Audit*

Our audit procedures related to the selection of the terminal value growth rate and weighted-average cost of capital for Schlitterbahn and the selection of comparable publicly traded companies and cash flow multiples. Those procedures included the following, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We tested the effectiveness of controls over management's goodwill impairment analysis, including those over the determination of the fair value of Schlitterbahn, such as controls related to management's selection of the terminal value growth rate, weighted-average cost of capital, comparable publicly traded companies, and cash flow multiples.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We considered the impact of changes in the regulatory and operating environment on management's assumptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• With the assistance of our fair value specialists, we evaluated the terminal value growth rate and weighted-average cost of capital, including testing the underlying source information and the mathematical accuracy of the calculations, and developing ranges of independent estimates and comparing those to the terminal value growth rate and weighted-average cost of capital selected by management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• With the assistance of our fair value specialists, we evaluated the selected comparable publicly traded companies and cash flow multiples, including testing the underlying source information and mathematical accuracy of the calculations, and comparing the multiples selected by management to its comparable publicly traded companies.

***/s/ DELOITTE & TOUCHE LLP***

Cleveland, Ohio

February 17, 2023

We have served as the Partnership's auditor since 2004.

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

**CEDAR FAIR, L.P.**

**CONSOLIDATED BALANCE SHEETS**

(In thousands)

---

| | | |
|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2021** |
| **ASSETS** | | |
| Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $101189 | $61119 |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivables | 70926 | 62109 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 45297 | 32113 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid insurance | 12570 | 10914 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current income tax receivable |  | 84051 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 13777 | 13335 |
|  | 243759 | 263641 |
| Property and Equipment: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Land | 287968 | 443190 |
| &nbsp;&nbsp;&nbsp;&nbsp;Land improvements | 492324 | 486014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Buildings | 930850 | 855297 |
| &nbsp;&nbsp;&nbsp;&nbsp;Rides and equipment | 2030640 | 1986235 |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction in progress | 75377 | 57666 |
|  | 3817159 | 3828402 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less accumulated depreciation | (2234800) | (2117659) |
|  | 1582359 | 1710743 |
| Goodwill | 263206 | 267232 |
| Other Intangibles, net | 48950 | 49994 |
| Right-of-Use Asset | 92966 | 16294 |
| Other Assets | 4657 | 5116 |
|  | $2235897 | $2313020 |
| **LIABILITIES AND PARTNERS' EQUITY** |  |  |
| Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $54983 | $53912 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 162711 | 187599 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest | 32173 | 32011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued taxes | 35329 | 9075 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued salaries, wages and benefits | 53332 | 53833 |
| &nbsp;&nbsp;&nbsp;&nbsp;Self-insurance reserves | 27766 | 24573 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other accrued liabilities | 30678 | 20511 |
|  | 396972 | 381514 |
| Deferred Tax Liability | 69412 | 66483 |
| Derivative Liability |  | 20086 |
| Lease Liability | 81757 | 13345 |
| Other Liabilities | 11203 | 11144 |
| Long-Term Debt: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Term debt |  | 258391 |
| &nbsp;&nbsp;&nbsp;&nbsp;Notes | 2268155 | 2260545 |
|  | 2268155 | 2518936 |
| Partners' Deficit: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Special L.P. interests | 5290 | 5290 |
| &nbsp;&nbsp;&nbsp;&nbsp;General partner | (4) | (7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Limited partners, 52,563 and 56,854 units outstanding as of December 31, 2022 and December 31, 2021, respectively | (612497) | (712714) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | 15609 | 8943 |
|  | (591602) | (698488) |
|  | $2235897 | $2313020 |

---

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

**CEDAR FAIR, L.P.**

**CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)**

(In thousands, except per unit amounts)

---

| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2022** | **2021** | **2020** |
| Net revenues: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Admissions | $925903 | $674799 | $67852 |
| &nbsp;&nbsp;&nbsp;&nbsp;Food, merchandise and games | 602603 | 432513 | 76921 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accommodations, extra-charge products and other | 288877 | 230907 | 36782 |
|  | 1817383 | 1338219 | 181555 |
| Costs and expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of food, merchandise and games revenues | 164246 | 112466 | 27991 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating expenses | 864304 | 698242 | 347782 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative | 260592 | 219758 | 108118 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 153274 | 148803 | 157549 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on impairment / retirement of fixed assets, net | 10275 | 10486 | 8135 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on impairment of goodwill and other intangibles |  |  | 103999 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of land | (155250) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss (gain) on other assets |  | 129 | (11) |
|  | 1297441 | 1189884 | 753563 |
| Operating income (loss) | 519942 | 148335 | (572008) |
| Interest expense | 151940 | 184032 | 150669 |
| Net effect of swaps | (25641) | (19000) | 15849 |
| Loss on early debt extinguishment | 1810 | 5909 | 2262 |
| Loss (gain) on foreign currency | 23784 | 6177 | (12183) |
| Other income | (3608) | (300) | (447) |
| Income (loss) before taxes | 371657 | (28483) | (728158) |
| Provision (benefit) for taxes | 63989 | 20035 | (137915) |
| Net income (loss) | 307668 | (48518) | (590243) |
| Net income (loss) allocated to general partner | 3 |  | (6) |
| Net income (loss) allocated to limited partners | $307665 | $(48518) | $(590237) |
| Net income (loss) | $307668 | $(48518) | $(590243) |
| Other comprehensive income (loss), (net of tax): |  |  |  |
| &nbsp;&nbsp;&nbsp;Foreign currency translation | 6666 | 6344 | (7147) |
| Other comprehensive income (loss), (net of tax) | 6666 | 6344 | (7147) |
| Total comprehensive income (loss) | $314334 | $(42174) | $(597390) |
| Basic income (loss) per limited partner unit: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average limited partner units outstanding | 55825 | 56610 | 56476 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) per limited partner unit | $5.51 | $(0.86) | $(10.45) |
| Diluted income (loss) per limited partner unit: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average limited partner units outstanding | 56414 | 56610 | 56476 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) per limited partner unit | $5.45 | $(0.86) | $(10.45) |

---

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

**CEDAR FAIR, L.P.**

**CONSOLIDATED STATEMENTS OF PARTNERS' DEFICIT**

(In thousands, except per unit amounts)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Limited Partnership Units Outstanding** | **Limited Partners' Deficit** | **General Partner's Deficit** | **Special L.P. Interests** | **Accumulated Other Comprehensive Income (Loss)** | **Total Partners' Deficit** |
| **Balance as of December 31, 2019** | 56666 | $(25001) | $(1) | $5290 | $9746 | $(9966) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss |  | (590237) | (6) |  |  | (590243) |
| &nbsp;&nbsp;&nbsp;&nbsp;Partnership distribution declared ($0.935 per unit) |  | (53020) |  |  |  | (53020) |
| &nbsp;&nbsp;&nbsp;&nbsp;Limited partnership units related to equity-based compensation | 40 | (4721) |  |  |  | (4721) |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect of units involved in treasury unit transactions |  | (1490) |  |  |  | (1490) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustment, net of tax $(546) |  |  |  |  | (7147) | (7147) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other |  | 150 |  |  |  | 150 |
| **Balance as of December 31, 2020** | 56706 | $(674319) | $(7) | $5290 | $2599 | $(666437) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss |  | (48518) |  |  |  | (48518) |
| &nbsp;&nbsp;&nbsp;&nbsp;Limited partnership units related to equity-based compensation | 148 | 11050 |  |  |  | 11050 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect of units involved in treasury unit transactions |  | (927) |  |  |  | (927) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustment, net of tax $(154) |  |  |  |  | 6344 | 6344 |
| **Balance as of December 31, 2021** | 56854 | $(712714) | $(7) | $5290 | $8943 | $(698488) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income |  | 307665 | 3 |  |  | 307668 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchase of limited partnership units | (4539) | (187381) |  |  |  | (187381) |
| &nbsp;&nbsp;&nbsp;&nbsp;Partnership distribution declared ($0.600 per unit) |  | (33455) |  |  |  | (33455) |
| &nbsp;&nbsp;&nbsp;&nbsp;Limited partnership units related to equity-based compensation | 248 | 15452 |  |  |  | 15452 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect of units involved in treasury unit transactions |  | (2064) |  |  |  | (2064) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustment, net of tax $2,082 |  |  |  |  | 6666 | 6666 |
| **Balance as of December 31, 2022** | 52563 | $(612497) | $(4) | $5290 | $15609 | $(591602) |

---

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

**CEDAR FAIR, L.P.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

(In thousands)

---

| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2022** | **2021** | **2020** |
| **CASH FLOWS FROM (FOR) OPERATING ACTIVITIES** |  |  |  |
| Net income (loss) | $307668 | $(48518) | $(590243) |
| Adjustments to reconcile net income (loss) to net cash from (for) operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 153274 | 148803 | 157549 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on early debt extinguishment | 1810 | 5909 | 2262 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on impairment of goodwill and other intangibles |  |  | 103999 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash foreign currency loss (gain) on USD notes | 23274 | 5986 | (9344) |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash equity-based compensation expense | 20589 | 15431 | (209) |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash deferred income tax expense (benefit) | 4385 | 26888 | (41933) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net effect of swaps | (25641) | (19000) | 15849 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of land before cash closing costs | (159405) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-cash expenses | 16917 | 21005 | 14547 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in operating assets and liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in receivables | (9117) | (27651) | 28729 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in inventories | (13400) | 15384 | (14499) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in tax receivable/payable | 110511 | (16602) | (97488) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in other assets | 5595 | 1928 | (12180) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in accounts payable | (8721) | 34515 | (9917) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in deferred revenue | (23677) | 3622 | 31160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in accrued interest | 162 | (1711) | 12235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in accrued salaries, wages and benefits | (274) | 28850 | (4609) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in other liabilities | 3722 | 6387 | (2445) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash from (for) operating activities | 407672 | 201226 | (416537) |
| **CASH FLOWS FROM (FOR) INVESTING ACTIVITIES** |  |  |  |
| Capital expenditures | (183352) | (59183) | (129087) |
| Proceeds from sale of land | 310000 |  |  |
| Proceeds from sale of other assets |  | 1405 | 8266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash from (for) investing activities | 126648 | (57778) | (120821) |
| **CASH FLOWS (FOR) FROM FINANCING ACTIVITIES** |  |  |  |
| Note borrowings |  |  | 1300000 |
| Term debt payments | (264250) |  | (465125) |
| Note payments, including amounts paid for early termination |  | (460755) |  |
| Repurchase of limited partnership units | (184646) |  |  |
| Distributions paid to partners | (33455) |  | (53020) |
| Payment of debt issuance costs |  | (367) | (46849) |
| Payments related to tax withholding for equity compensation | (5137) | (4652) | (4624) |
| Other | (2064) | (659) | 468 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (for) from financing activities | (489552) | (466433) | 730850 |
| **EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS** | (4698) | 7368 | 992 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) for the year | 40070 | (315617) | 194484 |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance, beginning of year | 61119 | 376736 | 182252 |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance, end of year | $101189 | $61119 | $376736 |
| **SUPPLEMENTAL INFORMATION** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash payments for interest | $137694 | $174253 | $130444 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest capitalized | 2825 | 1741 | 2653 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash payments for income taxes, net of refunds | (47248) | 10054 | 1792 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures in accounts payable | 14542 | 7368 | 3286 |

---

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

**CEDAR FAIR, L.P.**

**INDEX FOR NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | | |
|:---|:---|:---|
| <u>[Note 1](#ida49bcaab7294a3fa6f2fdc975ef3428_106)</u> | <u>[Partnership Organization](#ida49bcaab7294a3fa6f2fdc975ef3428_106)</u> | <u>[36](#ida49bcaab7294a3fa6f2fdc975ef3428_106)</u> |
| <u>[Note 2](#ida49bcaab7294a3fa6f2fdc975ef3428_109)</u> | <u>[Description of the Business and Significant Accounting Policies](#ida49bcaab7294a3fa6f2fdc975ef3428_109)</u> | <u>[36](#ida49bcaab7294a3fa6f2fdc975ef3428_109)</u> |
| <u>[Note 3](#ida49bcaab7294a3fa6f2fdc975ef3428_115)</u> | <u>[Revenue Recognition](#ida49bcaab7294a3fa6f2fdc975ef3428_115)</u> | <u>[41](#ida49bcaab7294a3fa6f2fdc975ef3428_115)</u> |
| <u>[Note 4](#ida49bcaab7294a3fa6f2fdc975ef3428_118)</u> | <u>[Long-Lived Assets](#ida49bcaab7294a3fa6f2fdc975ef3428_118)</u> | <u>[42](#ida49bcaab7294a3fa6f2fdc975ef3428_118)</u> |
| <u>[Note 5](#ida49bcaab7294a3fa6f2fdc975ef3428_121)</u> | <u>[Goodwill and Other Intangible Assets](#ida49bcaab7294a3fa6f2fdc975ef3428_121)</u> | <u>[43](#ida49bcaab7294a3fa6f2fdc975ef3428_121)</u> |
| <u>[Note 6](#ida49bcaab7294a3fa6f2fdc975ef3428_124)</u> | <u>[Long-Term Debt](#ida49bcaab7294a3fa6f2fdc975ef3428_124)</u> | <u>[44](#ida49bcaab7294a3fa6f2fdc975ef3428_124)</u> |
| <u>[Note 7](#ida49bcaab7294a3fa6f2fdc975ef3428_130)</u> | <u>[Derivative Financial Instruments](#ida49bcaab7294a3fa6f2fdc975ef3428_130)</u> | <u>[46](#ida49bcaab7294a3fa6f2fdc975ef3428_130)</u> |
| <u>[Note 8](#ida49bcaab7294a3fa6f2fdc975ef3428_133)</u> | <u>[Partners' Equity and Equity-Based Compensation](#ida49bcaab7294a3fa6f2fdc975ef3428_133)</u> | <u>[46](#ida49bcaab7294a3fa6f2fdc975ef3428_133)</u> |
| <u>[Note 9](#ida49bcaab7294a3fa6f2fdc975ef3428_136)</u> | <u>[Retirement Plans](#ida49bcaab7294a3fa6f2fdc975ef3428_136)</u> | <u>[49](#ida49bcaab7294a3fa6f2fdc975ef3428_136)</u> |
| <u>[Note 10](#ida49bcaab7294a3fa6f2fdc975ef3428_139)</u> | <u>[Income and Partnership Taxes](#ida49bcaab7294a3fa6f2fdc975ef3428_139)</u> | <u>[49](#ida49bcaab7294a3fa6f2fdc975ef3428_139)</u> |
| <u>[Note 11](#ida49bcaab7294a3fa6f2fdc975ef3428_142)</u> | <u>[Lease Commitments](#ida49bcaab7294a3fa6f2fdc975ef3428_142)</u> | <u>[51](#ida49bcaab7294a3fa6f2fdc975ef3428_142)</u> |
| <u>[Note 12](#ida49bcaab7294a3fa6f2fdc975ef3428_145)</u> | <u>[Fair Value Measurements](#ida49bcaab7294a3fa6f2fdc975ef3428_145)</u> | <u>[52](#ida49bcaab7294a3fa6f2fdc975ef3428_145)</u> |
| <u>[Note 13](#ida49bcaab7294a3fa6f2fdc975ef3428_1465)</u> | <u>[Subsequent Events](#ida49bcaab7294a3fa6f2fdc975ef3428_1465)</u> | <u>[52](#ida49bcaab7294a3fa6f2fdc975ef3428_1465)</u> |

---

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

**CEDAR FAIR, L.P.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(1) Partnership Organization:** 

Cedar Fair, L.P. (together with its affiliated companies, the "Partnership") is a Delaware limited partnership that commenced operations in 1983 when it acquired Cedar Point, Inc., and became a publicly traded partnership in 1987. The Partnership's general partner is Cedar Fair Management, Inc., an Ohio corporation (the "General Partner"), whose shares are held by an Ohio trust. The General Partner owns a 0.001% interest in the Partnership's income, losses and cash distributions, except in defined circumstances, and has full responsibility for management of the Partnership. As of December 31, 2022, there were 52,562,832 outstanding limited partnership units listed on The New York Stock Exchange, net of 4,499,151 units held in treasury. As of December 31, 2021, there were 56,854,214 outstanding limited partnership units listed, net of 207,769 units held in treasury.

The General Partner may, with the approval of a specified percentage of the limited partners, make additional capital contributions to the Partnership, but is only obligated to do so if the liabilities of the Partnership cannot otherwise be paid or there exists a negative balance in its capital account at the time of its withdrawal from the Partnership. The General Partner, in accordance with the terms of the Partnership Agreement, is required to make regular cash distributions on a quarterly basis of all the Partnership's available cash, as defined in the Partnership Agreement. Following the temporary closure of our parks in March 2020 in response to COVID-19 health recommendations, the Board of Directors suspended quarterly partnership distributions to maintain flexibility and additional liquidity. The Board of Directors reinstituted quarterly partnership distributions and declared quarterly partnership distributions in the third and fourth quarters of 2022. The General Partner paid $0.60 per limited partner unit in distributions, or approximately $33.5 million in aggregate, in 2022.

**(2) Description of the Business and Significant Accounting Policies:** 

**Impact of COVID-19 Pandemic**

The novel coronavirus (COVID-19) pandemic had a material impact on our business in 2020, had a continuing negative impact in 2021 and may have a longer-term negative effect. Beginning on March 14, 2020, we closed our properties for several months in response to the spread of COVID-19 and local government mandates. We ultimately resumed partial operations at 10 of our 13 properties in 2020, operating in accordance with local and state guidelines. Due to soft demand trends upon reopening in 2020, park operating calendars were adjusted for the remainder of 2020, including reduced operating days per week and operating hours within each operating day and earlier closure of certain parks than a typical operating year. Following March 14, 2020, Knott's Berry Farm's partial operations in 2020 were limited to culinary festivals.

We delayed the opening of our U.S. properties for the 2021 operating season until May 2021 and opened our Canadian property in July 2021. Upon opening in 2021, we operated with capacity restrictions, guest reservations, and other operating protocols in place. Our 2021 operating calendars were designed to align with anticipated capacity restrictions, guest demand and labor availability, including fewer operating days in July and August at some of our smaller properties and additional operating days in September and the fourth quarter at most of our properties. As vaccination distribution efforts continued during the second quarter of 2021 and we were able to hire additional labor, we removed most capacity restrictions, guest reservation requirements and other protocols at our U.S. properties beginning in July 2021. Canada's Wonderland operated with capacity restrictions, guest reservations, and other operating protocols in place upon opening and throughout 2021.

Each of our properties opened for the 2022 operating season as planned and without restrictions. We currently anticipate continuing to operate without restrictions for the 2023 operating season. However, we have and may continue to adjust future park operating calendars as we respond to changes in guest demand, labor availability and any federal, provincial, state and local restrictions. Our future operations are dependent on factors beyond our knowledge or control, including any future actions taken to contain the COVID-19 pandemic and changing risk tolerances of our employees and guests regarding health matters.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") was signed into law. During the year ended December 31, 2020, benefits from the CARES Act included an $8.2 million deferral of the employer's share of Social Security taxes and $3.7 million in tax benefits from the Employee Retention Credit program. We also received $0.5 million in tax benefits from the Employee Retention Credit program during the year ended December 31, 2021. The deferral of the employer's share of Social Security taxes was payable in 50% increments in the fourth quarter of 2021 and the fourth quarter of 2022. The current portion of the deferral was included within "Accrued salaries, wages and benefits" and the non-current portion of the deferral was included within "Other Liabilities" within the consolidated balance sheets for 2020 and 2021. The tax benefits from the Employee Retention Credit program were recorded as a reduction to wage expense within the consolidated statements of operations and comprehensive loss as the benefits were offered to defray labor costs during the COVID-19 pandemic.

We also received $5.1 million and $5.0 million from the Canada Emergency Wage Subsidy ("CEWS") during the years ended December 31, 2021 and December 31, 2020, respectively. The CEWS provides cash payments to Canadian employers that experienced a decline in revenues related to the COVID-19 pandemic. We also recorded the CEWS payments as a reduction to wage expense within the consolidated statements of operations and comprehensive loss as the payments were offered to defray labor costs during the COVID-19 pandemic.

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

**Significant Accounting Policies**

We use the following policies in the preparation of the accompanying consolidated financial statements.

**Principles of Consolidation**

The consolidated financial statements include the accounts of the Partnership and its subsidiaries, all of which are wholly owned or the Partnership is the primary beneficiary. Intercompany transactions and balances are eliminated in consolidation.

**Foreign Currency**

The U.S. dollar is our reporting currency and the functional currency for most of our operations. The financial statements of our Canadian subsidiary are measured using the Canadian dollar as its functional currency. Assets and liabilities are translated into U.S. dollars at the appropriate spot rates as of the balance sheet date, while income and expenses are translated at average monthly exchange rates. Translation gains and losses are included as components of accumulated other comprehensive income (loss) in partners' deficit. Gains or losses from remeasuring foreign currency transactions from the transaction currency to functional currency are included in income (loss). Foreign currency losses (gains) for the periods presented were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| **(In thousands)** | **2022** | **2021** | **2020** |
| Loss (gain) on foreign currency related to re-measurement of U.S. dollar denominated notes held in Canada | $23274 | $5986 | $(9344) |
| Loss (gain) on other transactions | 510 | 191 | (2839) |
| Loss (gain) on foreign currency | $23784 | $6177 | $(12183) |

---

**Segment Reporting**

Our properties operate autonomously, and management reviews operating results, evaluates performance and makes operating decisions, including the allocation of resources, on a property-by-property basis. In addition to reviewing and evaluating performance of the business at the property level, the structure of our management incentive compensation systems is centered on the operating results of each property as an integrated operating unit. Therefore, each property represents a separate operating segment of our business with the exception of the Schlitterbahn parks, which are aggregated into one segment. Although we manage our properties with a high degree of autonomy, each property offers and markets a similar collection of products and services to similar customers. In addition, our properties have similar economic characteristics, in that they show similar long-term growth trends in key industry metrics such as attendance, in-park per capita spending, net revenue, operating margin and operating profit. Therefore, we operate within a single reportable segment of amusement/water parks with accompanying resort facilities.

**Estimates**

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during each period. Actual results could differ from those estimates.

**Fair Value**

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, or an exit price. Inputs to valuation techniques used to measure fair value may be observable or unobservable, and valuation techniques used to measure fair value should maximize the use of relevant observable inputs and minimize the use of unobservable inputs. Accordingly, a hierarchical disclosure framework ranks the quality and reliability of information used to determine fair values. The three broad levels of inputs defined by the fair value hierarchy are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement.

A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Assets and liabilities recognized or disclosed at fair value on a recurring basis include our derivatives, debt and short-term investments.

**Cash and Cash Equivalents**

We consider all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents.

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

**Inventories**

Our inventories primarily consist of purchased products, such as merchandise and food, for sale to our customers. Inventories are stated at the lower of cost or market using the first-in, first-out (FIFO) or average cost methods of accounting at the park level.

**Property and Equipment**

Property and equipment are recorded at cost. Expenditures made to maintain such assets in their original operating condition are expensed as incurred, and improvements and upgrades are generally capitalized. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets. Depreciation expense totaled $153.0 million in 2022, $148.4 million in 2021, and $157.0 million in 2020.

The estimated useful lives of the assets are as follows:

---

| | | | |
|:---|:---|:---|:---|
| Land improvements | Approximately | | 25 years |
| Buildings | 25 years | - | 40 years |
| Rides | 10 years | - | 20 years |
| Equipment | 2 years | - | 10 years |

---

**Impairment of Long-Lived Assets**

Long-lived assets are reviewed for impairment upon the occurrence of events or changes in circumstances that would indicate that the carrying value of the assets may not be recoverable. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others: a significant decrease in the market price of a long-lived asset; a significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition; a significant adverse change in legal factors or in the business climate; an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset; past, current or future operating or cash flow losses that demonstrate continuing losses associated with the use of a long-lived asset; and a current expectation that a long-lived asset will be sold or disposed significantly before the end of its previously estimated useful life. An impairment loss may be recognized when estimated undiscounted future cash flows expected to result from the use of the asset, including disposition, are less than the carrying value of the asset. The measurement of the impairment loss to be recognized is based on the difference between the fair value and the carrying amounts of the assets. Fair value is generally determined using a combination of a cost and market approach. Significant factors considered in the cost approach include replacement cost, reproduction cost, depreciation, physical deterioration, functional obsolescence and economic obsolescence of the assets. The market approach estimates fair value by utilizing market data for similar assets. In order to determine if an asset has been impaired, assets are grouped and tested at the lowest level for which identifiable, independent cash flows are available.

**Accounting for Business Combinations**

Business combinations are accounted for under the acquisition method of accounting. The amounts assigned to the identifiable assets acquired and liabilities assumed in connection with acquisitions are based on estimated fair values as of the date of the acquisition, with the remainder, if any, recorded as goodwill. The fair values are determined by management, taking into consideration information supplied by the management of the acquired entities, valuations supplied by independent appraisal experts and other relevant information. The valuations are generally based upon future cash flow projections for the acquired assets, discounted to present value. The determination of fair values requires significant judgment by management.

**Goodwill**

Goodwill is reviewed annually for impairment, or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Goodwill is allocated to reporting units and goodwill impairment tests are performed at the reporting unit level. We perform our annual goodwill impairment test as of the first day of the fourth quarter.

We may elect to first perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. If we do not perform a qualitative assessment, or if we determine that it is not more likely than not that the fair value of the reporting unit exceeds its carrying amount, we calculate the fair value of the reporting unit. The fair value of a reporting unit is established using a combination of an income (discounted cash flow) approach and market approach. The income approach uses a reporting unit's projection of estimated operating results and discounted cash flows using a weighted-average cost of capital that reflects current market conditions. Estimated operating results are established using management's best estimates of economic and market conditions over the projected period including growth rates in revenues and costs, estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, future estimates of capital expenditures and changes in future working capital requirements. A market approach estimates fair value by applying cash flow multiples to the reporting unit's operating performance. The multiples are derived from comparable publicly traded companies with similar operating and investment characteristics of the reporting units. If an impairment is identified, an impairment charge is recognized for the amount by which a reporting unit's carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill.

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

**Other Intangible Assets**

Our finite-lived intangible assets consist primarily of licenses, franchise agreements and the California's Great America trade name. These intangible assets are amortized on a straight-line basis over the life of the agreement, ranging from five to twenty years.

Our indefinite-lived intangible assets consist of trade names other than the California's Great America trade name. Our indefinite-lived trade names are reviewed annually for impairment, or more frequently if impairment indicators arise. We may elect to first perform a qualitative assessment to determine whether it is more likely than not that a trade name is impaired. If we do not perform a qualitative assessment, or if we determine that it is not more likely than not that the fair value of the trade name exceeds its carrying amount, we calculate the fair value of the trade name using a relief-from-royalty model. Principal assumptions under the relief-from-royalty model include royalty rates, growth rates in revenues, estimates of future expected changes in operating margins, terminal value growth rates, and a discount rate based on a weighted-average cost of capital that reflects current market conditions. We assess the indefinite-lived trade names for impairment separately from goodwill.

**Self-Insurance Reserves**

Self-insurance reserves are recorded for the estimated amounts of guest and employee claims and related expenses incurred each period. Reserves are established for both identified claims and incurred but not reported ("IBNR") claims and are recorded when claim amounts become probable and estimable. Reserves for identified claims are based upon our historical claim experience and third-party estimates of settlement costs. Reserves for IBNR claims are based upon our claims data history. Self-insurance reserves are periodically reviewed for changes in facts and circumstances and adjustments are made as necessary. As of December 31, 2022 and December 31, 2021, the accrued self-insurance reserves totaled $27.8 million and $24.6 million, respectively.

**Derivative Financial Instruments**

We are exposed to market risks, primarily resulting from changes in interest rates and currency exchange rates. To manage these risks, we may enter into derivative transactions pursuant to our overall financial risk management program. We do not use derivative financial instruments for trading purposes. We typically do not designate our derivatives as cash flow hedges. Instruments that do not qualify for hedge accounting are prospectively adjusted to fair value each reporting period through "Net effect of swaps".

**Leases**

We have commitments under various operating leases. Right-of-use assets and lease liabilities are recognized at the present value of the future lease payments at the lease commencement date. The discount rate used to determine the present value of the future lease payments is generally our incremental borrowing rate as the rate implicit in most of our leases is not readily determinable. As a practical expedient, a relief provided in the accounting standard to simplify compliance, we do not recognize right-of-use assets and lease liabilities for leases with an original term of one year or less and have elected to not separate lease components from non-lease components. The current portion of our lease liability is recorded within "Other accrued liabilities" in the consolidated balance sheets.

**Revenue Recognition and related receivables and contract liabilities**

As disclosed within the consolidated statements of operations and comprehensive income (loss), revenues are generated from sales of (1) admission to our amusement parks and water parks, (2) food, merchandise and games both inside and outside the parks, and (3) accommodations, extra-charge products, and other revenue sources. Admission revenues include amounts paid to gain admission into our parks, including parking fees. Revenues related to extra-charge products, including premium benefit offerings such as front-of-line products, and online transaction fees charged to customers are included in "Accommodations, extra-charge products and other". Due to our highly seasonal operations, a substantial portion of our revenues typically are generated from Memorial Day through Labor Day. Most revenues are recognized on a daily basis based on actual guest spend at our properties. Revenues from multi-use products, including season-long products for admission, dining, beverage and other products, are recognized over the estimated number of uses expected for each type of product. The estimated number of uses is reviewed and may be updated periodically during the operating season prior to the ticket or product expiration, which generally occurs no later than the close of the operating season associated with that product. The number of uses is estimated based on historical usage adjusted for current period trends. For any bundled products that include multiple performance obligations, revenue is allocated using the retail price of each distinct performance obligation and any inherent discounts are allocated based on the gross margin and expected redemption of each performance obligation. We do not typically provide for refunds or returns.

In some instances, we arrange with outside parties ("concessionaires") to provide goods to guests, typically food and merchandise, and we act as an agent, resulting in net revenues recorded within the consolidated statements of operations and comprehensive income (loss). Concessionaire arrangement revenues are recognized over the operating season and are variable. Sponsorship revenues and marina revenues, which are classified as "Accommodations, extra-charge products and other," are recognized over the park operating season which represents the period in which the performance obligations are satisfied. Sponsorship revenues are either fixed or are variable based on achievement of specified operating metrics. We estimate variable revenues and perform a constraint analysis using both historical information and current trends to determine the amount of revenue that is not probable of a significant reversal.

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

Most deferred revenue is classified as current within the balance sheet. However, a portion of deferred revenue is typically classified as non-current during the third quarter related to season-long products sold in the current season for use in the subsequent season. Season-long products are typically sold beginning in August of the year preceding the operating season. Season-long products may subsequently be recognized 12 to 16 months after purchase depending on the date of sale. We estimate the number of uses expected outside of the next twelve months for each type of product and classify the related deferred revenue as non-current in the consolidated balance sheets.

Except for the non-current deferred revenue described above, our contracts with customers typically have an original duration of one year or less. For these short-term contracts, we use the practical expedient applicable to such contracts and have not disclosed the transaction price for the remaining performance obligations as of the end of each reporting period or when we expect to recognize this revenue. Further, we elected to recognize incremental costs of obtaining a contract as an expense when incurred as the amortization period of the asset would be less than one year. Lastly, we elected not to adjust consideration for the effects of significant financing components of our installment purchase plans because the terms of these plans do not exceed one year.

**Advertising Costs**

Production costs of commercials and programming are expensed in the year first aired. All other costs associated with advertising, promotion and marketing programs are expensed as incurred, or for certain costs, over each park's operating season. Certain prepaid costs incurred through year-end for the following year's advertising programs are included within "Other current assets" in the consolidated balance sheets. Advertising expense totaled $45.5 million in 2022, $37.0 million in 2021 and $10.5 million in 2020. Due to the effects of the COVID-19 pandemic, we incurred limited advertising expense in 2020 to correspond with lower than typical attendance levels and abbreviated park operating calendars. In 2021, we also incurred less advertising costs due to fewer operating days in the year.

**Equity-Based Compensation**

We measure compensation cost for all equity-based awards at fair value on the date of grant. We recognize the compensation cost over the service period. We recognize forfeitures as they occur.

**Income Taxes**

Our legal entity structure includes both partnerships and corporate subsidiaries. We are subject to publicly traded partnership tax ("PTP tax") on certain partnership level gross income (net revenues less cost of food, merchandise, and games revenues), state and local income taxes on partnership income, U.S. federal state and local income taxes on income from our corporate subsidiaries and foreign income taxes on our foreign subsidiary. As such, the total provision for taxes includes amounts for the PTP gross income tax and federal, state, local and foreign income taxes. Under applicable accounting rules, the total provision for income taxes includes the amount of taxes payable for the current year and the impact of deferred tax assets and liabilities, which represents future tax consequences of events that are recognized in different periods in the financial statements than for tax purposes.

Neither financial reporting income, nor the cash distributions to unitholders, can be used as a substitute for the detailed tax calculations that we must perform annually for our partners. Net income from the Partnership is not treated as passive income for federal income tax purposes. As a result, partners subject to the passive activity loss rules are not permitted to offset income from the Partnership with passive losses from other sources.

Our corporate subsidiaries account for income taxes under the asset and liability method. Accordingly, deferred tax assets and liabilities are recognized for the future book and tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are determined using enacted tax rates expected to apply in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax law is recognized in income at the time of enactment of such change in tax law. Any interest or penalties due for payment of income taxes are included in the provision for income taxes.

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

**Earnings Per Unit**

For purposes of calculating the basic and diluted earnings per limited partner unit, no adjustments have been made to the reported amounts of net income (loss). The unit amounts used in calculating the basic and diluted earnings per limited partner unit for the years ended December 31, 2022, 2021 and 2020 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| **(In thousands, except per unit amounts)** | **2022** | **2021** | **2020** |
| Basic weighted average units outstanding | 55825 | 56610 | 56476 |
| Effect of dilutive units: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred units (<u>[Note 8](#ida49bcaab7294a3fa6f2fdc975ef3428_133)</u>) | 72 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Performance units (<u>[Note 8](#ida49bcaab7294a3fa6f2fdc975ef3428_133)</u>) | 29 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted units (<u>[Note 8](#ida49bcaab7294a3fa6f2fdc975ef3428_133)</u>) | 463 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unit options (<u>[Note 8](#ida49bcaab7294a3fa6f2fdc975ef3428_133)</u>) | 25 |  |  |
| Diluted weighted average units outstanding | 56414 | 56610 | 56476 |
| Net (loss) income per unit - basic | $5.51 | $(0.86) | $(10.45) |
| Net (loss) income per unit - diluted | $5.45 | $(0.86) | $(10.45) |

---

There were approximately 0.4 million and 0.3 million potentially dilutive units excluded from the computation of diluted loss per limited partner unit for the years ended December 31, 2021 and 2020, respectively, as their effect would have been anti-dilutive due to the net loss in the period.

**New Accounting Pronouncements**

In March 2020, the FASB issued Accounting Standards Update No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). ASU 2020-04 provides optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on contracts, hedging relationships, and other transactions that reference London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022. In January 2021, the FASB amended ASU 2020-04 by issuing Accounting Standards Update No. 2021-01, Reference Rate Reform Scope ("ASU 2021-01"). ASU 2021-01 clarifies the scope of optional expedients and exceptions to derivatives that are affected by the discounting transition. The standard did not have a material effect on the consolidated financial statements and related disclosures.

**(3) Revenue Recognition:**

As disclosed within the consolidated statements of operations and comprehensive income (loss), revenues are generated from sales of (1) admission to our amusement parks and water parks, (2) food, merchandise and games both inside and outside the parks, and (3) accommodations, extra-charge products, and other revenue sources. Admission revenues include amounts paid to gain admission into our parks, including parking fees. Revenues related to extra-charge products, including premium benefit offerings such as front-of-line products, and online transaction fees charged to customers are included in "Accommodations, extra-charge products and other".

The following table presents net revenues disaggregated by revenues generated within the parks and revenues generated from out-of-park operations less amounts remitted to outside parties under concessionaire arrangements for the periods presented. The amounts are not comparable due to the effects of the COVID-19 pandemic.

---

| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| **(In thousands)** | **2022** | **2021** | **2020** |
| &nbsp;&nbsp;&nbsp;&nbsp;In-park revenues | $1659183 | $1209505 | $120370 |
| &nbsp;&nbsp;&nbsp;&nbsp;Out-of-park revenues | 213337 | 167978 | 67375 |
| &nbsp;&nbsp;&nbsp;&nbsp;Concessionaire remittance | (55137) | (39264) | (6190) |
| Net revenues | $1817383 | $1338219 | $181555 |

---

Many products, including season-long products, are sold to customers in advance, resulting in a contract liability ("deferred revenue"). Deferred revenue is typically at its highest immediately prior to the peak summer season, and at its lowest at the beginning of the calendar year following the close of our parks' operating seasons. Season-long products represent most of the deferred revenue balance in any given period.

Due to the effects of the COVID-19 pandemic, we extended the validity of our 2020 season-long products through the 2021 operating season in order to ensure our season pass holders received a full season of access to our parks. The extended validity of the 2020 season-long products resulted in a significant amount of revenue deferred from 2020 into 2021. All 2020 and 2021 season-long product revenue had been recognized as of December 31, 2021 except for season-long product extensions into 2022 at two parks. Knott's Berry Farm offered a further day-for-day extension into calendar year 2022 for 2020 and 2021 season-long products for every day the park was closed in 2021. The extension for the 2020 and 2021 season-long products at Knott's

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Berry Farm concluded and all related revenue had been recognized by the end of the second quarter of 2022. Canada's Wonderland extended its 2020 and 2021 season-long products through Labour Day, or September 5, 2022. All Canada's Wonderland 2020 and 2021 season-long product revenue had been recognized by the end of the third quarter of 2022. In order to calculate revenue recognized on these extended season-long products, management made significant estimates regarding the estimated number of uses expected for these season-long products for admission, dining, beverage and other products, including during interim periods.

Of the $187.6 million of current deferred revenue recorded as of January 1, 2022, all of the deferred revenue was recognized by December 31, 2022, except for an immaterial amount of deferred revenue for prepaid products such as gift cards and prepaid games cards. As of December 31, 2022, we had recorded $10.0 million of non-current deferred revenue which largely represented prepaid lease payments for a portion of the California's Great America parking lot. The prepaid lease payments are being recognized through 2027 following the sale of the land under California's Great America; see <u>[Note 4](#ida49bcaab7294a3fa6f2fdc975ef3428_118)</u>. Prior to the sale, the prepaid lease payments were being recognized through 2039.

Payment is due immediately on the transaction date for most products. Our receivable balance includes outstanding amounts on installment purchase plans which are offered for season-long products, and includes sales to retailers, group sales and catering activities which are billed. Installment purchase plans vary in length from three monthly installments to 12 monthly installments. Payment terms for billings are typically net 30 days. Receivables in a typical operating year are highest in the peak summer months and lowest in the winter months. We are not exposed to a significant concentration of customer credit risk. As of December 31, 2022 and December 31, 2021, we recorded a $5.8 million and $5.7 million allowance for doubtful accounts, respectively, representing estimated defaults on installment purchase plans. The default estimate is calculated using historical default rates adjusted for current period trends. The allowance for doubtful accounts is recorded as a reduction of deferred revenue to the extent revenue has not been recognized on the corresponding season-long products.

**(4) Long-Lived Assets:**

Long-lived assets are reviewed for impairment upon the occurrence of events or changes in circumstances that would indicate that the carrying value of the assets may not be recoverable. In order to determine if an asset has been impaired, assets are grouped and tested at the lowest level for which identifiable, independent cash flows are available. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others: a significant decrease in the market price of a long-lived asset; a significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition; a significant adverse change in legal factors or in the business climate; an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset; past, current or future operating or cash flow losses that demonstrate continuing losses associated with the use of a long-lived asset; and a current expectation that a long-lived asset will be sold or disposed significantly before the end of its previously estimated useful life. Any adverse change in these factors could have a significant impact on the recoverability of these assets and could have a material impact on the consolidated financial statements.

On June 27, 2022, the Partnership sold the land at California's Great America for a cash purchase price of $310 million, subject to customary prorations, which resulted in a $155.3 million gain recorded, net of transaction costs, within "Gain on sale of assets" in the consolidated statement of operations and comprehensive income (loss) during the third quarter of 2022. Concurrently with the sale, we entered into a lease contract that allows us to operate the park during a six-year term; see <u>[Note 11](#ida49bcaab7294a3fa6f2fdc975ef3428_142)</u>. As a result, we changed the estimated useful lives of the remaining property and equipment at California's Great America to an approximate 5.5-year period, or through December 31, 2027. We expect this to result in an approximate $8 million increase in annual depreciation expense over the 5.5-year period. We may dispose of the remaining property and equipment at California's Great America significantly before the end of their previously estimated useful lives if the assets are not sold to a third party or transferred for an alternate use. As a result, we also tested the long-lived assets at California's Great America for impairment during the second quarter of 2022, which resulted in no impairment. The fair value of the long-lived assets was determined using a replacement cost approach. We concluded no other indicators of impairment existed during 2022 and 2021, respectively. We based our conclusions on our financial performance projections, as well as an updated analysis of macroeconomic and industry-specific conditions.

During the first and third quarters of 2020 and due to the negative effects of the COVID-19 pandemic on our forecasted operating results, we tested our long-lived assets for impairment. We concluded the estimated fair values of the long-lived assets at the Schlitterbahn parks no longer exceeded the related carrying values during the first quarter of 2020. Therefore, we recorded a $2.7 million impairment charge equal to the difference between the fair value and the carrying amounts of the assets in "Loss on impairment / retirement of fixed assets" within the consolidated statement of operations and comprehensive loss during the first quarter of 2020. The fair value of the long-lived assets was determined using a real and personal property appraisal which was performed in accordance with ASC 820 - Fair Value Measurement.

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**(5) Goodwill and Other Intangible Assets:** 

Goodwill and other indefinite-lived intangible assets, including trade names are reviewed for impairment annually, or more frequently if indicators of impairment exist. During the second quarter of 2022, we concluded the useful life of the trade name, California's Great America, was no longer indefinite due to the then-anticipated sale of the land and the eventual disposal of the remaining assets; see <u>[Note 4](#ida49bcaab7294a3fa6f2fdc975ef3428_118)</u>. As a result, we tested the California's Great America trade name totaling $0.7 million for impairment during the second quarter of 2022 resulting in no impairment charge. The fair value of the trade name was calculated using a relief-from-royalty model. We are amortizing the trade name over an approximate 5.5-year period, or through December 31, 2027. We concluded no other indicators of impairment existed during 2022 and 2021, respectively. We based our conclusions on our financial performance projections, as well as an updated analysis of macroeconomic and industry-specific conditions. We performed our annual impairment test as of the first days of the fourth quarter in 2022 and 2021, respectively, and concluded there was no further impairment of the carrying value of goodwill or other indefinite-lived intangible assets in either period.

As of our 2022 annual impairment test on September 26, 2022, the Schlitterbahn Waterpark & Resort New Braunfels and the Schlitterbahn Waterpark Galveston ("Schlitterbahn") reporting unit's fair value exceeded its carrying value by less than 10%. The fair value of the Schlitterbahn parks reporting unit was impacted by a slower than expected near-term recovery of attendance following the COVID-19 pandemic, increased projected capital expenditures, and an increase in the weighted average cost of capital. If future operating results do not meet expectations, the goodwill assigned to the Schlitterbahn reporting unit may become impaired. The goodwill assigned to the Schlitterbahn reporting unit totaled $93.1 million as of December 31, 2022. The fair values of all other reporting units with goodwill exceeded their respective carrying values by a substantial margin.

During the first and third quarters of 2020 and due to the negative effects of the COVID-19 pandemic on our forecasted operating results, we tested our goodwill and indefinite-lived intangible assets for impairment. We concluded the estimated fair value of goodwill at the Schlitterbahn parks and Dorney Park reporting units, and the estimated fair value of the Schlitterbahn trade name no longer exceeded their carrying values. Therefore, we recorded a $73.6 million, $6.8 million and $7.9 million impairment of goodwill at the Schlitterbahn parks, goodwill at Dorney Park, and the Schlitterbahn trade name, respectively, during the first quarter of 2020. We also recorded an $11.3 million, $2.3 million and $2.2 million impairment of goodwill at the Schlitterbahn parks, goodwill at Dorney Park, and the Schlitterbahn trade name, respectively, during the third quarter of 2020. The impairment charges were equal to the amount by which the carrying amounts exceeded the assets' fair value and were recorded in "Loss on impairment of goodwill and other intangibles" within the consolidated statement of operations and comprehensive loss.

The fair value of our reporting units is established using a combination of an income (discounted cash flow) approach and market approach. The income approach uses each reporting unit's projection of estimated operating results and discounted cash flows using a weighted-average cost of capital that reflects current market conditions. Estimated operating results are established using our best estimates of economic and market conditions over the projected period including growth rates in revenues and costs, estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, future estimates of capital expenditures and changes in future working capital requirements. The market approach estimates fair value by applying cash flow multiples to each reporting unit's operating performance. The multiples are derived from comparable publicly traded companies with similar operating and investment characteristics of the reporting units. The impairment charges recognized are for the amount by which the reporting unit's carrying amount exceeds its fair value.

Our indefinite-lived intangible assets consist of trade names. The fair value of our trade names is calculated using a relief-from-royalty model. The impairment charges recognized are for the amount by which the trade name's carrying amount exceeds its fair value.

Management makes significant estimates calculating the fair value of our reporting units and trade names. Actual results could materially differ from these estimates.

Changes in the carrying value of goodwill for the years ended December 31, 2022 and December 31, 2021 were:

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| | |
|:---|:---|
| **(In thousands)** | **Goodwill** |
| Balance as of December 31, 2020 | $266961 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency exchange translation | 271 |
| Balance as of December 31, 2021 | $267232 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency exchange translation | (4026) |
| Balance as of December 31, 2022 | $263206 |

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As of December 31, 2022 and December 31, 2021, other intangible assets consisted of the following:

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| | | | | |
|:---|:---|:---|:---|:---|
| **(In thousands)** | **Weighted Average Amortization Period** | **Gross Carrying Amount** | **Accumulated Amortization** | **Net Carrying Value** |
| **December 31, 2022** | | | | |
| Other intangible assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade names (1) | 5.5 years | $48619 | $(63) | $48556 |
| &nbsp;&nbsp;&nbsp;&nbsp;License / franchise agreements | 13.0 years | 4293 | (3899) | 394 |
| Total other intangible assets |  | $52912 | $(3962) | $48950 |
| **December 31, 2021** |  |  |  |  |
| Other intangible assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade names |  | $49515 | $— | $49515 |
| &nbsp;&nbsp;&nbsp;&nbsp;License / franchise agreements | 12.0 years | 4262 | (3783) | 479 |
| Total other intangible assets |  | $53777 | $(3783) | $49994 |

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(1)&nbsp;&nbsp;&nbsp;&nbsp;The weighted average amortization period represents the California's Great America trade name. Our other trade names are indefinite-lived.

Amortization expense of finite-lived other intangible assets for 2022, 2021 and 2020 was immaterial and is expected to be immaterial going forward.

**(6) Long-Term Debt:** 

Long-term debt as of December 31, 2022 and December 31, 2021 consisted of the following:

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| | | |
|:---|:---|:---|
| **(In thousands)** | **December 31, 2022** | **December 31, 2021** |
| U.S. term loan averaging 2.56% in 2022; 1.85% in 2021 (1) | $— | $264250 |
| Notes |  |  |
| &nbsp;&nbsp;2025 U.S. fixed rate senior secured notes at 5.500% | 1000000 | 1000000 |
| &nbsp;&nbsp;2027 U.S. fixed rate senior unsecured notes at 5.375% | 500000 | 500000 |
| &nbsp;&nbsp;2028 U.S. fixed rate senior unsecured notes at 6.500% | 300000 | 300000 |
| &nbsp;&nbsp;2029 U.S. fixed rate senior unsecured notes at 5.250% | 500000 | 500000 |
|  | 2300000 | 2564250 |
| Less current portion |  |  |
|  | 2300000 | 2564250 |
| Less debt issuance costs and original issue discount | (31845) | (45314) |
|  | $2268155 | $2518936 |

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(1)The weighted average interest rates do not reflect the effect of interest rate swap agreements; see <u>[Note 7](#ida49bcaab7294a3fa6f2fdc975ef3428_130)</u>. The 2022 year-to-date interest rate reflects borrowings prior to full repayment of the term loan facility during the third quarter of 2022.

**Term Debt and Revolving Credit Facilities**

In April 2017, we amended and restated our credit agreement (the "2017 Credit Agreement") which includes our senior secured revolving credit facility and which included a senior secured term loan facility. During 2022, we made the remaining $264.3 million of principal payments on the senior secured term loan facility, fully repaying the term loan facility. As a result, we recognized a $1.8 million loss on early debt extinguishment during the third quarter of 2022, inclusive of the write-off of debt issuance costs and original issue discount. Prior to repayment, the term loan facility was scheduled to mature on April 15, 2024 and bore interest at London InterBank Offered Rate ("LIBOR") plus 175 basis points (bps).

As of December 31, 2022, our total senior secured revolving credit facility capacity under the 2017 Credit Agreement, as amended, was $300 million with a Canadian sub-limit of $15 million. The senior secured revolving credit facility bore interest at LIBOR plus 350 bps or Canadian Dollar Offered Rate ("CDOR") plus 250 bps, requires the payment of a 62.5 bps commitment fee per annum on the unused portion of the revolving credit facility, in each case without any step-downs, and matured in December 2023. In April 2022, $75 million of the senior secured revolving credit facility capacity under the 2017 Credit Agreement matured, and the outstanding borrowings were repaid. While such $75 million of senior secured revolving credit facility capacity was available, borrowings under this portion of the revolver capacity bore interest at LIBOR plus 300 bps or CDOR plus 200 bps, and the unused portion of this revolving credit facility capacity required the payment of a 37.5 bps commitment fee per annum. The 2017 Credit Agreement, as amended, also provides for the issuance of documentary and standby letters of credit, and is collateralized by substantially all of the assets of the Partnership. We amended the 2017 Credit

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Agreement in February 2022 to allow for greater sale and leaseback transactions. In the first quarter of 2023, we further amended the 2017 Credit Agreement to extend the maturity of the senior secured revolving credit facility, among other things; see <u>[Note 13](#ida49bcaab7294a3fa6f2fdc975ef3428_1465)</u>.

As of December 31, 2022 and December 31, 2021, no amounts were outstanding under the revolving credit facility. After letters of credit of $19.9 million and $15.8 million, we had $280.1 million and $359.2 million of availability under our revolving credit facility as of December 31, 2022 and December 31, 2021, respectively. The maximum outstanding revolving credit facility balance during 2022 was $185.0 million.

**Notes**

In April 2020, as a result of the anticipated effects of the COVID-19 pandemic, we issued $1.0 billion of 5.500% senior secured notes due 2025 ("2025 senior notes") in a private placement. The 2025 senior notes and the related guarantees are secured by first-priority liens on the issuers' and the guarantors' assets that secure all the obligations under our credit facilities. The net proceeds from the offering of the 2025 senior notes were used to repay $463.3 million of our then-outstanding senior secured term loan facility. The remaining amount was for general corporate and working capital purposes, including fees and expenses related to the transaction. The 2025 senior notes pay interest semi-annually in May and November, with the principal due in full on May 1, 2025. The 2025 senior notes may be redeemed, in whole or in part, at various prices depending on the date redeemed.

In June 2014, we issued $450 million of 5.375% senior unsecured notes due 2024 ("2024 senior notes"). The 2024 senior notes paid interest semi-annually in June and December, with the principal due in full on June 1, 2024. On December 17, 2021, we redeemed all of the 2024 senior notes at a redemption price equal to 100.896% of the principal amount plus accrued and unpaid interest. As a result, we recognized a $5.9 million loss on early debt extinguishment during the fourth quarter of 2021, inclusive of debt premium payments of $4.1 million and the write-off of debt issuance costs of $1.8 million.

In April 2017, we issued $500 million of 5.375% senior unsecured notes due 2027 ("2027 senior notes"). The 2027 senior notes pay interest semi-annually in April and October, with the principal due in full on April 15, 2027. The 2027 senior notes may be redeemed, in whole or in part, at various prices depending on the date redeemed.

In June 2019, we issued $500 million of 5.250% senior unsecured notes due 2029 ("2029 senior notes"). The 2029 senior notes pay interest semi-annually in January and July, with the principal due in full on July 15, 2029. The 2029 senior notes may be redeemed, in whole or in part, at any time prior to July 15, 2024 at a price equal to 100% of the principal amount of the notes redeemed plus a "make-whole" premium together with accrued and unpaid interest and additional interest, if any, to the redemption date. Thereafter, the 2029 senior notes may be redeemed, in whole or in part, at various prices depending on the date redeemed.

In October 2020, in response to the continuing effects of the COVID-19 pandemic, we issued $300 million of 6.500% senior unsecured notes due 2028 ("2028 senior notes"). The net proceeds from the offering of the 2028 senior notes were for general corporate and working capital purposes, including fees and expenses related to the transaction. The 2028 senior notes pay interest semi-annually in April and October with the principal due in full on October 1, 2028. Prior to October 1, 2023, up to 35% of the 2028 senior notes may be redeemed with the net cash proceeds of certain equity offerings at a price equal to 106.500% of the principal amount thereof, together with accrued and unpaid interest, if any. The 2028 senior notes may be redeemed, in whole or in part, at any time prior to October 1, 2023 at a price equal to 100% of the principal amount of the notes redeemed plus a "make-whole" premium together with accrued and unpaid interest and additional interest, if any, to the redemption date. Thereafter, the 2028 senior notes may be redeemed, in whole or in part, at various prices depending on the date redeemed.

As market conditions warrant, we may from time to time repurchase our outstanding debt securities in privately negotiated or open market transactions, by tender offer, exchange offer or otherwise.

**Covenants**

The 2017 Credit Agreement, as amended, includes a Senior Secured Leverage Ratio of 4.50x Total First Lien Senior Secured Debt-to-Consolidated EBITDA, which will step down to 4.00x in the second quarter of 2023 and which will step down further to 3.75x in the third quarter of 2023. Following the amendment in the first quarter of 2023, this financial covenant is only required to be tested at the end of any fiscal quarter in which revolving credit facility borrowings are outstanding. The 2017 Credit Agreement, as amended and as in effect prior to the first quarter of 2023 amendment, included an Additional Restrictions Period to provide further covenant relief during the COVID-19 pandemic. We terminated the Additional Restrictions Period during the first quarter of 2022 by achieving compliance with the Senior Secured Leverage Ratio covenant as of the end of the fourth quarter of 2021. We were in compliance with the applicable financial covenants under our credit agreement during 2022.

Our credit agreement and fixed rate note agreements include Restricted Payment provisions, which could limit our ability to pay partnership distributions. Pursuant to the terms of the indenture governing the 2027 senior notes, which includes the most restrictive of these Restricted Payments provisions, if our pro forma Total-Indebtedness-to-Consolidated-Cash-Flow Ratio is greater than 5.25x, we can still make Restricted Payments of $100 million annually so long as no default or event of default has occurred and is continuing. If our pro forma Total-Indebtedness-to-Consolidated-Cash-Flow Ratio is less than or equal to 5.25x,

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we can make Restricted Payments up to our Restricted Payment pool. Our pro forma Total-Indebtedness-to-Consolidated-Cash-Flow Ratio was less than 5.25x as of December 31, 2022.

**(7) Derivative Financial Instruments:**

Derivative financial instruments are used within our overall risk management program to manage certain interest rate and foreign currency risks. By utilizing a derivative instrument to hedge exposure to LIBOR rate changes, we are exposed to counterparty credit risk, in particular the failure of the counterparty to perform under the terms of the derivative contract. To mitigate this risk, hedging instruments are placed with a counterparty that we believe poses minimal credit risk. We do not use derivative financial instruments for trading purposes.

As of December 31, 2021, we had four interest rate swap agreements with a notional value of $500 million that converted one-month variable rate LIBOR to a fixed rate of 2.88% through December 31, 2023. This resulted in a 4.63% fixed interest rate for borrowings under our then-outstanding senior secured term loan facility after the impact of interest rate swap agreements. None of the interest rate swap agreements were designated as hedging instruments. We terminated our interest rate swap agreements during the third quarter of 2022 following the full repayment of our senior secured term loan facility, resulting in a $5.3 million cash receipt, net of fees. The fair value of our swap portfolio, including the location within the consolidated balance sheets, for the periods presented were as follows:

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| | | | |
|:---|:---|:---|:---|
| **(In thousands)** | **Balance Sheet Location** | **December 31, 2022** | **December 31, 2021** |
| **Derivatives not designated as hedging instruments:** | | | |
| Interest rate swaps | Derivative Liability |  | $(20086) |

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Instruments that do not qualify for hedge accounting are adjusted to fair value each reporting period through "Net effect of swaps" within the consolidated statements of operations and comprehensive income (loss).

**(8) Partners' Equity and Equity-Based Compensation:**

**Special L.P. Interests**

In accordance with the Partnership Agreement, certain partners were allocated $5.3 million of 1987 and 1988 taxable income (without any related cash distributions) for which they received Special L.P. Interests. The Special L.P. Interests do not participate in cash distributions and have no voting rights. However, the holders of Special L.P. Interests will receive in the aggregate $5.3 million upon liquidation of the Partnership.

**Equity-Based Incentive Plan**

The 2016 Omnibus Incentive Plan was approved by our unitholders in June 2016 and allows the awarding of up to 2.8 million unit options and other forms of equity as determined by the Compensation Committee of the Board of Directors as an element of compensation to senior management, key employees and directors. The 2016 Omnibus Incentive Plan superseded the 2008 Omnibus Incentive Plan which was approved by our unitholders in May 2008 and allowed the awarding of up to 2.5 million unit options and other forms of equity. Outstanding awards under the 2008 Omnibus Incentive Plan continue to be in effect and are governed by the terms of that plan. The 2016 Omnibus Incentive Plan provides an opportunity for officers, directors, and eligible persons to acquire an interest in the growth and performance of our units and provides employees annual and long-term incentive awards as determined by the Board of Directors. Under the 2016 Omnibus Incentive Plan, the Compensation Committee of the Board of Directors may grant unit options, unit appreciation rights, restricted units, performance awards, other unit awards, cash incentive awards and unrestricted unit awards. The awards granted by the Compensation Committee fall into two categories, Awards Payable in Cash or Equity, and Awards Payable in Equity. The impact of these awards is more fully described below.

Equity-based compensation expense recognized in the consolidated statements of operations and comprehensive income (loss) within "Selling, General and Administrative Expense" for the applicable periods was as follows:

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| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| **(In thousands)** | **2022** | **2021** <sup>(1)</sup> | **2020** <sup>(2)</sup> |
| Awards Payable in Cash or Equity |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred units | $(206) | $1014 | $(588) |
| Awards Payable in Equity |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Performance units | 12787 | 10554 | (5270) |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted units | 7613 | 4878 | 5061 |
| Total equity-based compensation expense | $20194 | $16446 | $(797) |

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(1)&nbsp;&nbsp;&nbsp;&nbsp;Due to the effects of the COVID-19 pandemic on 2020 results, the 2018-2020 three-year performance plan was below the payout threshold. Given that two full years of the program were completed, the 2018-2020 performance unit awards were modified to allow for a payout taking into account 2018-2019 results, management's performance relative to 2020

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COVID-19 strategic goals and 2020 pre-COVID-19 forecast, resulting in $3.9 million of additional expense recognized during the year ended December 31, 2021.

(2)&nbsp;&nbsp;&nbsp;&nbsp;The market value of our deferred unit awards and the anticipated payout of our annual performance unit awards decreased due to the effects of the COVID-19 pandemic resulting in expense reversed during the year ended December 31, 2020.

***Awards Payable in Cash or Equity***

<u>Deferred Units</u>

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| | | |
|:---|:---|:---|
| **(In thousands, except per unit amounts)** | **Number of Units** | **Weighted Average Grant Date Fair Value Per Unit** |
| Outstanding deferred units at December 31, 2021 | 56 | $51.70 |
| &nbsp;&nbsp;&nbsp;&nbsp;Granted <sup>(1)</sup> | 7 | $42.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;Settled | (13) | $56.67 |
| Outstanding deferred units at December 31, 2022 | 50 | $49.00 |

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(1)&nbsp;&nbsp;&nbsp;&nbsp;Includes 1 forfeitable distribution-equivalent units

Deferred unit awards vest over a one-year period and the settlement of these units is deferred until the individual's service to the Partnership ends. The deferred units begin to accumulate distribution-equivalents upon vesting and are paid when the restriction ends. The effect of outstanding deferred unit awards has been included in the diluted earnings per unit calculation for the year ended December 31, 2022, as a portion of the awards are expected to be settled in limited partnership units. As of December 31, 2022, the market value of the deferred units was $2.1 million, was classified as current and was recorded within "Other accrued liabilities" within the consolidated balance sheet. As of December 31, 2022, there was no unamortized expense related to unvested deferred unit awards as all units were fully vested.

***Awards Payable in Equity***

<u>Performance Units</u>

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| | | |
|:---|:---|:---|
| **(In thousands, except per unit amounts)** | **Number of Units** | **Weighted Average Grant Date Fair Value Per Unit** |
| Unvested performance units at December 31, 2021 | 430 | $43.13 |
| &nbsp;&nbsp;&nbsp;&nbsp;Granted <sup>(1)</sup> | 414 | $55.73 |
| &nbsp;&nbsp;&nbsp;&nbsp;Forfeited | (15) | $54.71 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vested | (92) | $27.92 |
| Unvested performance units at December 31, 2022 | 737 | $51.87 |

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(1)&nbsp;&nbsp;&nbsp;&nbsp;Includes 10 forfeitable distribution-equivalent units

Of the unvested performance units outstanding as of December 31, 2022, 343,511 units represented annual awards for the 2022-2024 three-year performance period. The number of performance units issuable under these performance unit awards are contingently based upon certain performance targets over the three-year vesting period. The annual performance awards and the related forfeitable distribution-equivalent units are paid out in the first quarter following the performance period in limited partnership units. Our annual performance unit awards based upon the 2020-2022 three-year performance period did not payout due to the effects of the COVID-19 pandemic.

The remaining outstanding performance units as of December 31, 2022 represented the 2021-2025 performance-based units awarded in 2021. These units were awarded instead of the traditional annual performance unit awards with three-year performance periods due to continued uncertainty related to the COVID-19 pandemic. The number of performance units issuable under the 2021-2025 performance-based unit awards are contingently based upon three separate financial performance targets which can vest over a three to five-year period. The performance targets become incrementally higher over the five-year period. The 2021-2025 performance-based unit awards and related forfeitable distribution-equivalent units will be paid out in limited partnership units upon the achievement of each target in the first quarter following the year the target was earned. The first opportunity for units to be paid out under the 2021-2025 performance-based unit awards will be in the first quarter of 2024.

The effect of outstanding performance unit awards, for which the performance conditions had been met, have been included in the diluted earnings per unit calculation for the year ended December 31, 2022.

The vested performance units for the year ended December 31, 2022 represented performance-based other units awarded in 2020 to incentivize optimal executive performance in light of the effects of the COVID-19 pandemic. The number of units issuable

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were contingently based upon the level of attainment of various performance objectives over a six-month period with the awards payable in limited partnership units following the one-year anniversary of the six-month performance period, which occurred in the first quarter of 2022. These unit awards did not earn distribution-equivalent units.

As of December 31, 2022, unamortized compensation expense related to unvested performance unit awards was $20.6 million, which is expected to be amortized over a weighted average period of 1.7 years. The fair value of the performance units is based on the unit price the day before the date of grant. We assess the probability of the performance targets being met and may reverse prior period expense or recognize additional expense accordingly.

<u>Restricted Units</u>

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| | | |
|:---|:---|:---|
| **(In thousands, except per unit amounts)** | **Number of Units** | **Weighted Average Grant Date Fair Value Per Unit** |
| Unvested restricted units at December 31, 2021 | 228 | $49.44 |
| &nbsp;&nbsp;&nbsp;&nbsp;Granted | 241 | $52.65 |
| &nbsp;&nbsp;&nbsp;&nbsp;Forfeited | (7) | $53.82 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vested | (121) | $49.02 |
| Unvested restricted units at December 31, 2022 | 341 | $51.77 |

---

As of December 31, 2022, 212,273 of our outstanding restricted units vest evenly over an approximate three-year period, 107,274 units outstanding vest following an approximate three-year cliff vesting period, and 21,235 units outstanding vest under alternate vesting schedules, all of which approximate three years. Restrictions on our restricted unit awards lapse upon vesting. During the vesting period for restricted unit awards, the units accumulate forfeitable distribution-equivalents, which when the units are fully vested, are payable in cash. As of December 31, 2022, the amount of forfeitable distribution equivalents accrued totaled $0.3 million; $0.1 million of which was classified as current and recorded within "Other accrued liabilities" within the consolidated balance sheet and $0.1 million of which was classified as non-current and recorded within "Other Liabilities".

As of December 31, 2022, unamortized compensation expense, determined as the market value of the units on the day before the date of grant, related to unvested restricted unit awards was $10.2 million, which is expected to be amortized over a weighted average period of 1.9 years.

<u>Unit Options</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(In thousands, except per unit amounts)** | **Unit Options** | **Weighted Average Exercise Price** | **Weighted Average Remaining Contractual Life** | **Aggregate Intrinsic Value** |
| Options outstanding at December 31, 2021 | 118 | $35.27 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercised | (27) | $29.53 |  |  |
| Options outstanding at December 31, 2022 | 91 | $36.95 |  |  |
| Options exercisable, end of year | 91 | $36.95 | 0.2 years | $399 |

---

Unit options are issued with an exercise price no less than the market closing price of the Partnership's units on the day before the date of grant. Outstanding unit options vested over three years and have a maximum term of ten years. As of December 31, 2022, we had 90,928 fixed-price unit options outstanding under the 2008 Omnibus Incentive Plan. No options have been granted under the 2016 Omnibus Incentive Plan.

The exercise price of the unit options outstanding was $36.95 as of December 31, 2022. The total intrinsic value of unit options exercised during the years ended December 31, 2022, 2021 and 2020 was $0.7 million, $2.0 million, and $0.0 million, respectively.

We have a policy of issuing limited partnership units from treasury to satisfy unit option exercises, and we expect our treasury unit balance to be sufficient for 2023 based on estimates of unit option exercises for that period.

**Unit Repurchase Plan**

On August 3, 2022, we announced that our Board of Directors approved a unit repurchase plan authorizing the Partnership to repurchase units for an aggregate purchase price of not more than $250 million. The unit repurchase program is subject to Rule 10b-18 of the Securities Exchange Act of 1934. Subject to applicable rules and regulations, we may repurchase units from time-to-time in the open market or by negotiated transactions. The amount and timing of repurchases are based on a variety of factors, including liquidity, capital needs of the business, market conditions, regulatory requirements, and other corporate considerations. No limit was placed on the duration of the repurchase program. The unit repurchase program does not obligate the Partnership to repurchase any minimum dollar amount or specific number of units, and the program may be modified, suspended or discontinued at any time.

------

<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

There were 4.5 million limited partnership units repurchased during the year ended December 31, 2022 at an average price of $41.28 per limited partner unit for an aggregate amount of $187.4 million. There was $62.6 million of remaining availability under the repurchase program as of December 31, 2022. There were no unit repurchases in 2021 or 2020.

**(9) Retirement Plans:** 

We have trusteed, noncontributory retirement plans for most of our full-time employees. Contributions are discretionary and amounts accrued were approximately $4.8 million and $1.8 million for the years ended December 31, 2022 and 2021, respectively. For the year ended December 31, 2020, we did not make any discretionary contributions due to the effects of the COVID-19 pandemic on our financial performance. Additionally, we have a trusteed, contributory retirement plan for most of our full-time employees. This plan permits employees to contribute specified percentages of their salary, matched up to a limit. Matching contributions, net of forfeitures, approximated $5.7 million, $4.7 million and $3.8 million for the years ended December 31, 2022, 2021 and 2020, respectively.

In addition, approximately 260 employees are covered by union-sponsored, multi-employer pension plans for which approximately $2.1 million, $1.9 million and $2.0 million were contributed for the years ended December 31, 2022, 2021 and 2020, respectively. A union representing approximately 15 employees is expected to decertify in 2023. The related withdrawal liability is expected to be immaterial.

**(10) Income and Partnership Taxes:**

Federal and state tax legislation in 1997 provided a permanent income tax exemption to existing publicly traded partnerships (PTP), such as Cedar Fair, L.P., with a PTP tax levied on partnership gross income (net revenues less cost of food, merchandise and games) beginning in 1998. In addition, income taxes are recognized for the amount of income taxes payable by Cedar Fair, L.P. and its corporate subsidiaries for the current year and for the impact of deferred tax assets and liabilities that represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. As such, the "Provision (benefit) for taxes" includes amounts for both the PTP tax and for federal, state, local and foreign income taxes.

The 2022 tax provision totaled $64.0 million, which consisted of a $14.4 million provision for the PTP tax and a $49.6 million provision for income taxes. This compared with a 2021 tax provision of $20.0 million, which consisted of a $10.3 million provision for the PTP tax and a $9.7 million provision for income taxes, and a 2020 tax benefit of $137.9 million, which consisted of a $2.5 million provision for the PTP tax and a $140.4 million benefit for income taxes. The calculation of the tax provision (benefit) involves significant estimates and assumptions. Actual results could differ from those estimates.

Significant components of income (loss) before taxes for the years ended December 31, 2022, 2021 and 2020 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **(In thousands)** | **2022** | **2021** | **2020** |
| &nbsp;&nbsp;&nbsp;&nbsp;Domestic | $327897 | $(3603) | $(675746) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign | 43760 | (24880) | (52412) |
| Total income (loss) before taxes | $371657 | $(28483) | $(728158) |

---

The provision (benefit) for income taxes was comprised of the following for the years ended December 31, 2022, 2021 and 2020:

---

| | | | |
|:---|:---|:---|:---|
| **(In thousands)** | **2022** | **2021** | **2020** |
| &nbsp;&nbsp;&nbsp;&nbsp;Current federal | $22912 | $(21438) | $(61726) |
| &nbsp;&nbsp;&nbsp;&nbsp;Current state and local | 2799 | 1395 | (3747) |
| &nbsp;&nbsp;&nbsp;&nbsp;Current foreign | 19456 | 2896 | (32987) |
| &nbsp;&nbsp;&nbsp;Total current | 45167 | (17147) | (98460) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred federal, state and local | 6113 | 17870 | (43220) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred foreign | (1728) | 9018 | 1287 |
| &nbsp;&nbsp;&nbsp;Total deferred | 4385 | 26888 | (41933) |
| Total provision (benefit) for income taxes | $49552 | $9741 | $(140393) |

---

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

The provision (benefit) for income taxes for the corporate subsidiaries differed from the amount computed by applying the U.S. federal statutory income tax rate of 21% to income (loss) before taxes. The sources and tax effects of the differences were as follows:&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
| **(In thousands)** | **2022** | **2021** | **2020** |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax provision based on the U.S. federal statutory tax rate | $78048 | $(5981) | $(152913) |
| &nbsp;&nbsp;&nbsp;&nbsp;Partnership (income) loss not subject to corporate income tax | (38556) | 257 | 47631 |
| &nbsp;&nbsp;&nbsp;&nbsp;State and local taxes, net | 8154 | 776 | (20594) |
| &nbsp;&nbsp;&nbsp;&nbsp;Valuation allowance | 9 | 14619 | 3150 |
| &nbsp;&nbsp;&nbsp;&nbsp;Expired foreign tax credits |  | 888 | 2253 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax credits | (1483) | (901) | (426) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in U.S. tax law | (107) | (1326) | (17983) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation losses (gains) | 4754 | 1143 | (1455) |
| &nbsp;&nbsp;&nbsp;&nbsp;Nondeductible expenses and other | (1267) | 266 | (56) |
| Total provision (benefit) for income taxes | $49552 | $9741 | $(140393) |

---

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

Significant components of deferred tax assets and liabilities as of December 31, 2022 and December 31, 2021 were as follows:&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
| **(In thousands)** | **2022** | **2021** |
| Deferred tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Compensation | $14817 | $11835 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 4135 | 5051 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign tax credits | 11467 | 8392 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax attribute carryforwards | 13823 | 20580 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives |  | 5021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation | 5313 | 2523 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 1911 | 3539 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease liability | 19037 |  |
| &nbsp;&nbsp;Deferred tax assets | 70503 | 56941 |
| &nbsp;&nbsp;&nbsp;&nbsp;Valuation allowance | (24228) | (24374) |
| &nbsp;&nbsp;Net deferred tax assets | 46275 | 32567 |
| Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Property | (76871) | (78062) |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangibles | (20170) | (20988) |
| &nbsp;&nbsp;&nbsp;&nbsp;Right-of-use asset | (18646) |  |
| &nbsp;&nbsp;Deferred tax liabilities | (115687) | (99050) |
| Net deferred tax liability | $(69412) | $(66483) |

---

We record a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. The need for this allowance is based on several factors including the carryforward periods for net operating losses and tax credits, prior experience of tax credit limitations, and management's long-term estimates of domestic and foreign source income.

As of December 31, 2022, we recorded a $24.2 million valuation allowance related to two items, $11.5 million related to foreign tax credits and $12.7 million related to other tax attribute carryforwards. The valuation allowance related to foreign tax credits equaled the entire $11.5 million deferred tax asset for foreign tax credit carryforwards. We do not expect to fully realize the foreign tax credit carryforwards primarily due to the U.S. statutory rate being less than the Canadian statutory tax rate. The amount recorded represented a $3.1 million increase in the valuation allowance from 2021.

The valuation allowance related to other tax attributes is the sum of $10.4 million and $2.3 million and related to $11.5 million of state net operating loss carryforwards and $2.3 million of Canadian capital loss carryforwards, respectively. We do not expect to fully realize all of the unused state net operating loss carryforwards before they expire from 2025 to 2041. This represented a $3.1 million decrease in the valuation allowance from 2021 due to income in the corporate subsidiaries. The valuation allowance relating to Canadian capital losses equals the total amount generated during 2021. We do not expect to use these capital losses as they are only available to offset Canadian capital gain. The amount recorded for Canadian capital losses represented a $0.1 million decrease in valuation allowance from 2021.

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

The CARES Act resulted in various changes to the U.S. tax law, including, among other things, allowing net operating losses arising in tax years 2018 through 2020 to be carried back to the preceding five taxable years and removing the limitation that such losses only offset 80% of taxable income. As a result of these changes, we received U.S. tax refunds attributable to the net operating loss in tax year 2020 being carried back to prior years. We received refunds of $77.1 million during the second quarter of 2022 and an additional $2.5 million during the fourth quarter of 2022. We also received $11.1 million in tax refunds attributable to the net operating loss of our Canadian corporate subsidiary being carried back to prior years in Canada during the first quarter of 2022. The refunds were recorded within "Current income tax receivable" in the consolidated balance sheet as of December 31, 2021.

We have recorded a deferred tax liability of $1.2 million and $3.3 million as of December 31, 2022 and December 31, 2021, respectively, to account for foreign currency translation adjustments in other comprehensive income.

Our unrecognized tax benefits, including accrued interest and penalties, were not material in any year presented. We recognize accrued interest and penalties related to unrecognized tax benefits as income tax expense.

We are subject to taxation in the U.S., Canada and various state and local jurisdictions. Our tax returns are subject to examination by state and federal tax authorities. With few exceptions, we are no longer subject to examination by the major taxing authorities for tax years before 2018.

**(11) Lease Commitments:** 

Our most significant lease commitment is for the land at California's Great America, which we sold on June 27, 2022. Concurrently with the sale of the land, we entered into a lease contract that allows us to operate the park during a six-year term, and we have an option to extend the term for an additional five years. The lease is subject to early termination by the buyer with at least two years' prior notice. The annual base rent under the lease liability was initially $12.2 million and will increase by 2.5% per year. Upon commencement of the lease, we recognized a right-of-use asset and lease liability equal to the annual base rent for the initial six-year term. Upon termination of the lease, we will close existing park operations and remove the rides and attractions from the land. As of December 31, 2022, we included estimated lease payments to dismantle and remove rides and attractions totaling $12.9 million within the right-of-use asset and lease liability. The discount rate used to determine the present value of the future lease payments was our incremental borrowing rate. We sublease a portion of the California's Great America parking lot to the Santa Clara Stadium Authority during Levi's Stadium events. The lease payments were prepaid, and the corresponding income is being recognized over the lease term, or through 2027. The annual lease income recognized is immaterial.

Other significant lease commitments include corporate office space in Charlotte, North Carolina and the land on which Schlitterbahn Waterpark Galveston is located. The corporate office space is generally leased through 2029. The Schlitterbahn Waterpark Galveston land lease has an initial term through 2024 with renewal options at our discretion through 2049, which we have concluded we are reasonably certain to exercise. We have also entered into various operating leases for office equipment, vehicles, storage and revenue-generating assets.

Total lease cost and related supplemental information for the years ended December 31, 2022, 2021 and 2020 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| **(In thousands, except for lease term and discount rate)** | **2022** | **2021** | **2020** |
| &nbsp;&nbsp;&nbsp;Operating lease expense | $9857 | $2711 | $2797 |
| &nbsp;&nbsp;&nbsp;Variable lease expense | 972 | 872 | 173 |
| &nbsp;&nbsp;&nbsp;Short-term lease expense | 8769 | 7563 | 2205 |
| &nbsp;&nbsp;&nbsp;Sublease income | (715) |  |  |
| **Total lease cost** | $18883 | $11146 | $5175 |
| **Weighted-average remaining lease term** | 6.7 years | 14.1 years | 16.8 years |
| **Weighted-average discount rate** | 3.7% | 3.7% | 4.1% |
| **Operating cash flows for operating leases** | $9034 | $2299 | $2679 |
| **Leased assets obtained in exchange for new operating lease liabilities (non-cash activity)** | $85789 | $4914 | $1769 |

---

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

Future undiscounted cash flows under our operating leases and a reconciliation to the operating lease liabilities recognized as of December 31, 2022 are included below:

---

| | |
|:---|:---|
| **(In thousands)** | **December 31, 2022** |
| **Undiscounted cash flows** | |
| &nbsp;&nbsp;&nbsp;&nbsp;2023 | $15256 |
| &nbsp;&nbsp;&nbsp;&nbsp;2024 | 15039 |
| &nbsp;&nbsp;&nbsp;&nbsp;2025 | 15251 |
| &nbsp;&nbsp;&nbsp;&nbsp;2026 | 15316 |
| &nbsp;&nbsp;&nbsp;&nbsp;2027 | 15325 |
| &nbsp;&nbsp;&nbsp;&nbsp;Thereafter | 31836 |
| &nbsp;&nbsp;&nbsp;Total | $108023 |
| **Present value of cash flows** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current lease liability | $12043 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease Liability | 81757 |
| &nbsp;&nbsp;&nbsp;Total | $93800 |
| **Difference between undiscounted cash flows and discounted cash flows** | $14223 |

---

**(12) Fair Value Measurements:**

The table below presents the balances of assets and liabilities measured at fair value as of December 31, 2022 and December 31, 2021 on a recurring basis, as well as the fair values of other financial instruments, including their locations within the consolidated balance sheets:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **(In thousands)** | | | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
| **(In thousands)** |<br>**Balance Sheet Location** |<br>**Fair Value Hierarchy Level** | **Carrying Value** | **Fair Value** | **Carrying Value** | **Fair Value** |
| **Financial assets (liabilities) measured on a recurring basis:** | **Financial assets (liabilities) measured on a recurring basis:** | **Financial assets (liabilities) measured on a recurring basis:** | | | | |
| Short-term investments | Other current assets | Level 1 | $432 | $432 | $478 | $478 |
| Interest rate swaps | Derivative Liability | Level 2 |  |  | $(20086) | $(20086) |
| **Other financial assets (liabilities):** | **Other financial assets (liabilities):** | **Other financial assets (liabilities):** |  |  |  |  |
| Term debt | Long-Term Debt <sup>(1)</sup> | Level 2 |  |  | $(264250) | $(257644) |
| 2025 senior notes | Long-Term Debt <sup>(1)</sup> | Level 2 | $(1000000) | $(985000) | $(1000000) | $(1035000) |
| 2027 senior notes | Long-Term Debt <sup>(1)</sup> | Level 1 | $(500000) | $(476250) | $(500000) | $(513750) |
| 2028 senior notes | Long-Term Debt <sup>(1)</sup> | Level 1 | $(300000) | $(291000) | $(300000) | $(319125) |
| 2029 senior notes | Long-Term Debt <sup>(1)</sup> | Level 1 | $(500000) | $(446250) | $(500000) | $(513750) |

---

(1)Carrying values of long-term debt balances are before reductions for debt issuance costs and original issue discount of $31.8 million and $45.3 million as of December 31, 2022 and December 31, 2021, respectively.

Fair values of the interest rate swap agreements are determined using significant inputs, including LIBOR forward curves, which are considered Level 2 observable market inputs.

The carrying value of cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximates fair value because of the short maturity of these instruments. There were no assets or liabilities measured at fair value on a non-recurring basis as of December 31, 2022 or December 31, 2021.

**(13) Subsequent Events:**

On February 10, 2023, we further amended the 2017 Credit Agreement to extend the maturity date of our senior secured revolving credit facility, convert the existing LIBOR-based interest rate for our senior secured revolving credit facility to the applicable Secured Overnight Financing Rate ("SOFR"), and make other certain amendments to provide greater covenant flexibility, including modifying the requirement for the financial maintenance covenant to only be applicable at the end of any fiscal quarter in which revolving credit borrowings are outstanding. Following this amendment, the senior secured revolving credit facility matures on February 10, 2028, provided that the maturity date will be (x) January 30, 2025 if at least $200.0 million of the 2025 senior notes remain outstanding as of that date, or (y) January 14, 2027 if at least $200.0 million of the 2027 senior notes remain outstanding as of that date. In addition, the senior secured revolving credit facility will bear interest at SOFR plus 350 bps.

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

**ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING**

**AND FINANCIAL DISCLOSURE.**

None.

**ITEM 9A. CONTROLS AND PROCEDURES.**

**Disclosure Controls and Procedures**

We maintain a system of controls and procedures designed to ensure that information required to be disclosed by us in our reports under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified by the Commission and that such information is accumulated and communicated to management, including the Chief Executive Officer and the Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. As of December 31, 2022, management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of December 31, 2022.

**Management's Report on Internal Control over Financial Reporting**

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Management, with the participation of our Chief Executive Officer and Chief Financial Officer, assessed the effectiveness of our internal control over financial reporting as of December 31, 2022. In making this assessment, it used the criteria described in "Internal Control - Integrated Framework" (2013) issued by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission. As a result of its assessment, management concluded that, as of December 31, 2022, our internal control over financial reporting was effective. Deloitte & Touche LLP, the independent registered public accounting firm that audited the financial statements included in this Form 10-K, has issued an attestation report on our internal control over financial reporting.

**Changes in Internal Control over Financial Reporting** 

There were no changes in our internal control over financial reporting that occurred during the fourth quarter of 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**ITEM 9B. OTHER INFORMATION.**

None.

**ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS.**

Not applicable.

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

**PART III**

**ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.**

Cedar Fair Management, Inc., an Ohio corporation owned by an Ohio trust, is the General Partner of the Partnership and has full responsibility for the management of the Partnership; see <u>[Note 1](#ida49bcaab7294a3fa6f2fdc975ef3428_106)</u>.

**A. Identification of Directors:**

The information required by this item is incorporated by reference to the material in our Proxy Statement to be used in connection with the annual meeting of limited partner unitholders to be held in May 2023 (the "Proxy Statement") under the captions "Proposal One. Election of Directors", "Board Committees", and, if required, "Delinquent Section 16(a) Reports".

**B. Identification of Executive Officers:**

Information regarding executive officers of the Partnership is included in this Annual Report on Form 10-K under the caption "Supplemental Item. Information about our Executive Officers" in Item 1 of Part I and is incorporated herein by reference.

**C. Code of Ethics and Certifications:**

In accordance with Section 406 of the Sarbanes-Oxley Act of 2002 and Item 406 of Regulation S-K, we have adopted a Code of Conduct and Ethics (the "Code"), which applies to all directors, officers and employees, including the Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer. A copy of the Code is available on our Investor Relations website (<u>www.ir.cedarfair.com</u>).

We submitted an unqualified Section 303A.12(a) Chief Executive Officer certification to the New York Stock Exchange on June 15, 2022, stating that we were in compliance with the NYSE's Corporate Governance Listing Standards. The Chief Executive Officer and Chief Financial Officer certifications under Section 302 of the Sarbanes-Oxley Act are included as exhibits to this Form 10-K.

**ITEM 11. EXECUTIVE COMPENSATION.**

The information required by this item is incorporated by reference to the material in our Proxy Statement under the captions "Executive Compensation", "Compensation Committee Interlocks and Insider Participation", and "Compensation Committee Report".

**ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED UNITHOLDER MATTERS.**

The information required by this item is incorporated by reference to the material in our Proxy Statement under the caption "Security Ownership of Certain Beneficial Owners and Management".

**EQUITY COMPENSATION PLAN INFORMATION**

The following table sets forth information concerning units authorized or available for issuance under our equity compensation plan (see <u>[Note 8](#ida49bcaab7294a3fa6f2fdc975ef3428_133)</u>) as of December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| Plan Category | <br>Number of units to be issued upon exercise of outstanding options, warrants and rights<br>(a) <sup>(1)</sup> | <br>Weighted-average exercise price of outstanding options, warrants and rights<br>(b) <sup>(2)</sup> | Number of units remaining available for future issuance under equity compensation plans <br>(excluding units <br>reflected in column (a))<br>(c) |
| Equity compensation plans approved by unitholders | 1181686 | $36.95 | 1435133 |
| Equity compensation plans not approved by unitholders | **—** | **—** | **—** |
| Total | 1181686 | $36.95 | 1435133 |

---

(1)The units in column (a) include performance awards and deferred unit awards at the maximum number of units issuable, as well as unit options outstanding.

(2)The weighted average price in column (b) represents the weighted average price of 90,928 unit options outstanding. Performance awards and deferred unit awards are excluded from column (b).

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

**ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.**

The information required by this item is incorporated by reference to the material in our Proxy Statement under the captions "Certain Relationships and Related Transactions", "Board Independence", and "Board Committees".

**ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES.**

The information required by this item is incorporated by reference to the material in our Proxy Statement under the caption "Independent Registered Public Accounting Firm Services and Fees".

**PART IV**

**ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.**

**A. 1. Financial Statements**

The following consolidated financial statements of the Registrant, the notes thereto and the related Report of Independent Registered Public Accounting Firm are filed under <u>[Item 8](#ida49bcaab7294a3fa6f2fdc975ef3428_76)</u> of this Report:

---

| | | |
|:---|:---|:---|
| | | **<u>Page</u>** |
| (i) | Report of Independent Registered Public Accounting Firm | <u>[29](#ida49bcaab7294a3fa6f2fdc975ef3428_79)</u> |
| (ii) | Consolidated Balance Sheets - December 31, 2022 and 2021 | <u>[31](#ida49bcaab7294a3fa6f2fdc975ef3428_82)</u> |
| (iii) | Consolidated Statements of Operations and Comprehensive Income (Loss) - Years ended December 31, 2022, 2021, and 2020 | <u>[32](#ida49bcaab7294a3fa6f2fdc975ef3428_85)</u> |
| (iv) | Consolidated Statements of Cash Flows - Years ended December 31, 2022, 2021, and 2020 | <u>[34](#ida49bcaab7294a3fa6f2fdc975ef3428_94)</u> |
| (v) | Consolidated Statements of Partners' Deficit - Years ended December 31, 2022, 2021, and 2020 | <u>[33](#ida49bcaab7294a3fa6f2fdc975ef3428_88)</u> |
| (vi) | Notes to Consolidated Financial Statements - December 31, 2022, 2021, and 2020 | <u>[36](#ida49bcaab7294a3fa6f2fdc975ef3428_100)</u> |

---

**A. 2. Financial Statement Schedules**

All schedules are omitted as the information is not required or is otherwise furnished.

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<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

**A. 3. Exhibits**

The exhibits listed below are incorporated herein by reference to prior SEC filings by the Registrant or are included as exhibits in this Form 10-K.

---

| | |
|:---|:---|
| **Exhibit Number** | **Description** |
| <u>[3.1](http://www.sec.gov/Archives/edgar/data/811532/000081153221000033/cedarfair-ex31xsecondame.htm)</u> | <u>[Cedar Fair, L.P. Second Amended and Restated Certificate of Limited Partnership.](http://www.sec.gov/Archives/edgar/data/811532/000081153221000033/cedarfair-ex31xsecondame.htm)</u> |
| <u>[3.2](http://www.sec.gov/Archives/edgar/data/811532/000081153221000033/cedarfair-ex32xamendment.htm)</u> | <u>[Amendment to Second Amended and Restated Certificate of Limited Partnership.](http://www.sec.gov/Archives/edgar/data/811532/000081153221000033/cedarfair-ex32xamendment.htm)</u> |
| <u>[3.3](http://www.sec.gov/Archives/edgar/data/811532/000081153220000087/exhibit32regulationsof.htm)</u> | <u>[Regulations of Cedar Fair Management, Inc., as amended by that First Amendment, dated April 1, 2020. Incorporated herein by reference to Exhibit 3.2 to the Registrant's Form 10-Q (File No. 001-09444) filed May 6, 2020.](http://www.sec.gov/Archives/edgar/data/811532/000081153220000087/exhibit32regulationsof.htm)</u> |
| <u>[3.4](http://www.sec.gov/Archives/edgar/data/811532/000081153220000087/exhibit31sixthamendeda.htm)</u> | <u>[Sixth Amended and Restated Agreement of Limited Partnership of Cedar Fair, L.P., as amended by that First Amendment, dated June 1, 2017, that Second Amendment, dated August 2, 2019, and that Third Amendment, dated April 1, 2020. Incorporated herein by reference to Exhibit 3.1 to the Registrant's Form 10-Q (File No. 001-09444) filed May 6, 2020.](http://www.sec.gov/Archives/edgar/data/811532/000081153220000087/exhibit31sixthamendeda.htm)</u> |
| <u>[4.1](http://www.sec.gov/Archives/edgar/data/811532/000119312517123430/d369185dex41.htm)</u> | <u>[Indenture, dated as of April 13, 2017, by and among Cedar Fair, L.P., Canada's Wonderland Company, Magnum Management Corporation and Millennium Operations LLC, as issuers, the guarantors named therein and The Bank of New York Mellon Corporation, as trustee (including Form of 5.375% Senior Note due 2027). Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K (File No. 001-09444) filed on April 13, 2017.](http://www.sec.gov/Archives/edgar/data/811532/000119312517123430/d369185dex41.htm)</u> |
| <u>[4.2](http://www.sec.gov/Archives/edgar/data/811532/000119312517123430/d369185dex43.htm)</u> | <u>[Registration Rights Agreement, dated April 13, 2017, by and among Cedar Fair, L.P., Canada's Wonderland Company, Magnum Management Corporation and Millennium Operations LLC, as issuers, the guarantors named therein and J.P. Morgan Securities LLC, on behalf of itself and as representative of the initial purchasers named therein. Incorporated herein by reference to Exhibit 4.3 to the Registrant's Form 8-K (File No. 001-09444) filed on April 13, 2017.](http://www.sec.gov/Archives/edgar/data/811532/000119312517123430/d369185dex43.htm)</u> |
| <u>[4.3](http://www.sec.gov/Archives/edgar/data/811532/000119312519184361/d767702dex41.htm)</u> | <u>[Indenture, dated as of June 27, 2019, by and among Cedar Fair, L.P., Canada's Wonderland Company, Magnum Management Corporation and Millennium Operations LLC, as issuers, the guarantors named therein and The Bank of New York Mellon, as trustee (including Form of 5.250% Senior Note due 2029). Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K (File No. 001-09444) filed on June 27, 2019.](http://www.sec.gov/Archives/edgar/data/811532/000119312519184361/d767702dex41.htm)</u> |
| <u>[4.4](http://www.sec.gov/Archives/edgar/data/811532/000119312519184361/d767702dex43.htm)</u> | <u>[Registration Rights Agreement, dated June 27, 2019, by and among Cedar Fair, L.P., Canada's Wonderland Company, Magnum Management Corporation and Millennium Operations LLC, as issuers, the guarantors named therein and J.P. Morgan Securities LLC, on behalf of itself and as representative of the initial purchasers named therein. Incorporated herein by reference to Exhibit 4.3 to the Registrant's Form 8-K (File No. 001-09444) filed on June 27, 2019.](http://www.sec.gov/Archives/edgar/data/811532/000119312519184361/d767702dex43.htm)</u> |
| <u>[4.5](http://www.sec.gov/Archives/edgar/data/811532/000119312520126258/d922423dex41.htm)</u> | <u>[Indenture, dated as of April 27, 2020, by and among Cedar Fair, L.P., Canada's Wonderland Company, Magnum Management Corporation and Millennium Operations LLC, as issuers, the guarantors named therein, The Bank of New York Mellon, as trustee and notes US collateral agent and BNY Trust Company of Canada, as notes Canadian collateral agent (including Form of 5.500% Senior Note due 2025). Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K (Form No. 001-09444) filed on April 29, 2020.](http://www.sec.gov/Archives/edgar/data/811532/000119312520126258/d922423dex41.htm)</u> |
| <u>[4.6](http://www.sec.gov/Archives/edgar/data/811532/000119312520265593/d49119dex41.htm)</u> | <u>[Indenture, dated as of October 7, 2020, by and among Cedar Fair, L.P., Canada's Wonderland Company, Magnum Management Corporation and Millennium Operations LLC, as issuers, the guarantors named therein and The Bank of New York Mellon, as trustee (including Form 6.500% Senior Note due 2028). Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K (File No. 001-09444) filed on October 7, 2020.](http://www.sec.gov/Archives/edgar/data/811532/000119312520265593/d49119dex41.htm)</u> |
| <u>[4.7](http://www.sec.gov/Archives/edgar/data/811532/000119312520265593/d49119dex43.htm)</u> | <u>[Registration Rights Agreement, dated October 7, 2020, by and among Cedar Fair, L.P., Canada's Wonderland Company, Magnum Management Corporation and Millennium Operations LLC, as issuers, the guarantors named therein and J.P. Morgan Securities LLC, on behalf of itself and as representative of the initial purchasers named therein. Incorporated herein by reference to Exhibit 4.3 to the Registrant's Form 8-K (File No. 001-09444) filed on October 7, 2020.](http://www.sec.gov/Archives/edgar/data/811532/000119312520265593/d49119dex43.htm)</u> |
| <u>[4.8](http://www.sec.gov/Archives/edgar/data/811532/000081153220000029/cedarfair-q4x2019xex47.htm)</u> | <u>[Description of Registrant's Securities. Incorporated herein by reference to Exhibit 4.7 to the Registrant's Form 10-K (File No. 001-09444) filed on February 21, 2020.](http://www.sec.gov/Archives/edgar/data/811532/000081153220000029/cedarfair-q4x2019xex47.htm)</u> |

---

------

<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

---

| | |
|:---|:---|
| **Exhibit Number** | **Description** |
| <u>[10.1](http://www.sec.gov/Archives/edgar/data/811532/000119312508118870/dex101.htm)</u> | <u>[Cedar Fair, L.P. 2008 Omnibus Incentive Plan dated as of May 15, 2008. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Form 8-K (File No. 001-09444) filed on May 20, 2008. (+)](http://www.sec.gov/Archives/edgar/data/811532/000119312508118870/dex101.htm)</u> |
| <u>[10.2](http://www.sec.gov/Archives/edgar/data/811532/000119312511290672/d251277dex101.htm)</u> | <u>[Form of Indemnification Agreement. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Form 8-K (File No. 001-09444) filed November 1, 2011. (+)](http://www.sec.gov/Archives/edgar/data/811532/000119312511290672/d251277dex101.htm)</u> |
| <u>[10.3](http://www.sec.gov/Archives/edgar/data/811532/000081153212000066/a2008omnibusincform-option.htm)</u> | <u>[2008 Omnibus Incentive Plan Form of Option Award Agreement. Incorporated herein by reference to Exhibit 10.2 to the Registrant's Form 8-K (File No. 001-09444) filed March 28, 2012. (+)](http://www.sec.gov/Archives/edgar/data/811532/000081153212000066/a2008omnibusincform-option.htm)</u> |
| <u>[10.4](http://www.sec.gov/Archives/edgar/data/811532/000081153214000086/ex103directorrsuplan.htm)</u> | <u>[Cedar Fair, L.P. 2008 Omnibus Incentive Plan Form of Deferred Unit Award Agreement. Incorporated herein by reference to Exhibit 10.3 to the Registrant's Form 10-Q (File No. 001-09444) filed on May 9, 2014. (+)](http://www.sec.gov/Archives/edgar/data/811532/000081153214000086/ex103directorrsuplan.htm)</u> |
| <u>[10.5](http://www.sec.gov/Archives/edgar/data/811532/000081153215000057/exhibit1031officeremployme.htm)</u> | <u>[Standard Form of Employment Contract (non-CEO) with certain Section 16 Officers (December 2014). Incorporated herein by reference to Exhibit 10.31 to the Registrant's Form 10-K (File No. 001-09444) filed on February 26, 2015. (+)](http://www.sec.gov/Archives/edgar/data/811532/000081153215000057/exhibit1031officeremployme.htm)</u> |
| <u>[10.6](http://www.sec.gov/Archives/edgar/data/811532/000081153216000223/exhibit10212016deferreduni.htm)</u> | <u>[Cedar Fair, L.P. 2008 Omnibus Incentive Plan Form of Deferred Unit Award Agreement (2016 Version). Incorporated herein by reference to Exhibit 10.21 to the Registrant's Form 10-K (File No. 001-09444) filed on February 26, 2016. (+)](http://www.sec.gov/Archives/edgar/data/811532/000081153216000223/exhibit10212016deferreduni.htm)</u> |
| <u>[10.7](http://www.sec.gov/Archives/edgar/data/811532/000119312516621441/d213920dex101.htm)</u> | <u>[Cedar Fair L.P., 2016 Omnibus Incentive Plan. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Form 8-K (File No. 001-09444) filed on June 14, 2016. (+)](http://www.sec.gov/Archives/edgar/data/811532/000119312516621441/d213920dex101.htm)</u> |
| <u>[10.8](http://www.sec.gov/Archives/edgar/data/811532/000119312517123430/d369185dex101.htm)</u> | <u>[Restatement Agreement, dated April 13, 2017, among Cedar Fair, L.P., Magnum Management Corporation, Canada's Wonderland Company and Millennium Operations LLC, as borrowers, the several lenders from time to time party thereto, JPMorgan Chase Bank, N.A. as administrative agent and collateral agent and the other parties thereto. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Form 8-K (File No. 001-09444) filed on April 13, 2017.](http://www.sec.gov/Archives/edgar/data/811532/000119312517123430/d369185dex101.htm)</u> |
| <u>[10.9](http://www.sec.gov/Archives/edgar/data/811532/000119312517304136/d466011dex101.htm)</u> | <u>[Employment Agreement, dated October 4, 2017, by and among Cedar Fair L.P., Cedar Fair Management, Inc., Magnum Management Corporation, and Richard A. Zimmerman. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Form 8-K (File No. 001-09444) filed on October 5, 2017. (+)](http://www.sec.gov/Archives/edgar/data/811532/000119312517304136/d466011dex101.htm)</u> |
| <u>[10.10](http://www.sec.gov/Archives/edgar/data/811532/000119312517304136/d466011dex102.htm)</u> | <u>[Employment Agreement, dated October 4, 2017, by and among Cedar Fair L.P., Cedar Fair Management, Inc., Magnum Management Corporation, and Matthew A Ouimet. Incorporated herein by reference to Exhibit 10.2 to the Registrant's Form 8-K (File No. 001-09444) filed on October 5, 2017. (+)](http://www.sec.gov/Archives/edgar/data/811532/000119312517304136/d466011dex102.htm)</u> |
| <u>[10.11](http://www.sec.gov/Archives/edgar/data/811532/000081153217000145/cedarfairq3xexhibit1032017.htm)</u> | <u>[2016 Omnibus Incentive Plan (Fall 2017 Version) Form of Restricted Unit Award Declaration. Incorporated herein by reference to Exhibit 10.3 to the Registrant's Form 10-Q (File No. 001-09444) filed November 2, 2017. (+)](http://www.sec.gov/Archives/edgar/data/811532/000081153217000145/cedarfairq3xexhibit1032017.htm)</u> |
| <u>[10.12](http://www.sec.gov/Archives/edgar/data/811532/000119312517373654/d466345dex101.htm)</u> | <u>[Employment Agreement, dated December 18, 2017, by and among Cedar Fair L.P., Cedar Fair Management, Inc., Magnum Management Corporation, and Tim Fisher. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Form 8-K (File No. 001-09444) filed on December 19, 2017. (+)](http://www.sec.gov/Archives/edgar/data/811532/000119312517373654/d466345dex101.htm)</u> |
| <u>[10.13](http://www.sec.gov/Archives/edgar/data/811532/000081153218000040/exhibit1022performanceawar.htm)</u> | <u>[2016 Omnibus Incentive Plan (Fall 2017 Version) Form of Performance Unit Award Declaration. Incorporated herein by reference to Exhibit 10.22 to the Registrant's Form 10-K (File No. 001-09444) filed on February 23, 2018. (+)](http://www.sec.gov/Archives/edgar/data/811532/000081153218000040/exhibit1022performanceawar.htm)</u> |
| <u>[10.14](http://www.sec.gov/Archives/edgar/data/811532/000119312518082568/d550619dex101.htm)</u> | <u>[Amendment No. 1, dated March 14, 2018, to Restatement Agreement, dated April 13, 2017, among Cedar Fair, L.P., Magnum Management Corporation, Canada's Wonderland Company and Millennium Operations LLC, as borrowers, the several lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as administrative agent and collateral agent and the other parties thereto. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Form 8-K (File No. 001-09444) filed on March 14, 2018.](http://www.sec.gov/Archives/edgar/data/811532/000119312518082568/d550619dex101.htm)</u> |
| <u>[10.15](http://www.sec.gov/Archives/edgar/data/811532/000081153220000029/cedarfair-q4x2019xex10.htm)</u> | <u>[Transition Agreement, dated December 18, 2019, by and among Cedar Fair, L.P., Cedar Fair Management, Inc., Magnum Management Corporation, and Matthew A. Ouimet. Incorporated herein by reference to Exhibit 10.20 to the Registrant's Form 10-K (File No. 001-09444) filed on February 21, 2020.(+)](http://www.sec.gov/Archives/edgar/data/811532/000081153220000029/cedarfair-q4x2019xex10.htm)</u> |
| <u>[10.16](https://www.sec.gov/Archives/edgar/data/811532/000119312520126258/d922423dex101.htm)</u> | <u>[Amendment No. 2, dated April 27, 2020, to the Amended and Restated Credit Agreement, dated April 13, 2017, among Cedar Fair, L.P., Magnum, Cedar Canada and Millennium, as borrowers, the lenders party thereto from time to time, JPMorgan Chase Bank, N.A., as administrative agent and collateral agent and the other parties thereto. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Form 8-K (File No. 001-09444) filed on April 29, 2020.](https://www.sec.gov/Archives/edgar/data/811532/000119312520126258/d922423dex101.htm)</u> |
| <u>[10.17](http://www.sec.gov/Archives/edgar/data/811532/000119312520233664/d57701dex101.htm)</u> | <u>[2016 Omnibus Incentive Plan Form of Other Unit Incentive Award Agreement. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Form 8-K (File No. 001-09444) filed on August 28, 2020. (+)](http://www.sec.gov/Archives/edgar/data/811532/000119312520233664/d57701dex101.htm)</u> |
| <u>[10.18](http://www.sec.gov/Archives/edgar/data/811532/000119312520258198/d25526dex101.htm)</u> | <u>[Amendment No. 3, dated as of September 28, 2020, to the Amended and Restated Credit Agreement, dated as of April 13, 2017, among Cedar Fair, Magnum, Cedar Canada and Millennium, as borrowers, the lenders party thereto from time to time, JPMorgan Chase Bank, N.A., as administrative agent and collateral agent and the other parties thereto. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Form 8-K (File No. 001-09444) filed on September 30, 2020.](http://www.sec.gov/Archives/edgar/data/811532/000119312520258198/d25526dex101.htm)</u> |
| <u>[10.19](http://www.sec.gov/Archives/edgar/data/811532/000119312521100139/d127549dex101.htm)</u> | <u>[2016 Omnibus Incentive Plan Form of Performance Unit Award Agreement (Spring 2021 Version). Incorporated herein by reference to Exhibit 10.1 to the Registrant's Form 8-K (File No. 001-09444) filed on March 30, 2021. (+)](http://www.sec.gov/Archives/edgar/data/811532/000119312521100139/d127549dex101.htm)</u> |
| <u>[10.20](http://www.sec.gov/Archives/edgar/data/811532/000119312521100139/d127549dex102.htm)</u> | <u>[2016 Omnibus Incentive Plan Form of Restricted Unit Award Declaration (Spring 2021 Version). Incorporated herein by reference to Exhibit 10.2 to the Registrant's Form 8-K (File No. 001-09444) filed on March 30, 2021. (+)](http://www.sec.gov/Archives/edgar/data/811532/000119312521100139/d127549dex102.htm)</u> |

---

------

<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

---

| | |
|:---|:---|
| **Exhibit Number** | **Description** |
| <u>[10.21](http://www.sec.gov/Archives/edgar/data/811532/000119312521186086/d194456dex101.htm)</u> | <u>[Transition and Release Agreement, dated June 8, 2021, by and between Cedar Fair, L.P., Cedar Fair Management, Inc., Magnum Management Corporation and Duffield E. Milkie. Incorporate herein by reference to Exhibit 10.1 to the Registrant's Form 8-K (File No. 001-09444) filed on June 9, 2021. (+)](http://www.sec.gov/Archives/edgar/data/811532/000119312521186086/d194456dex101.htm)</u> |
| <u>[10.22](http://www.sec.gov/Archives/edgar/data/811532/000081153222000029/cedarfair-q4x2021xex1026.htm)</u> | <u>[Amendment No. 4, dated as of December 15, 2021, to the Amended and Restated Credit Agreement, dated as of April 13, 2017, among Cedar Fair, Magnum, Cedar Canada and Millennium, as borrowers, the lenders party thereto from time to time, JPMorgan Chase Bank, N.A., as administrative agent and collateral agent and the other parties thereto. Incorporated herein by reference to Exhibit 10.26 to the Registrant's Form 10-K (File No. 001-09444) filed on February 18, 2022.](http://www.sec.gov/Archives/edgar/data/811532/000081153222000029/cedarfair-q4x2021xex1026.htm)</u> |
| <u>[10.23](http://www.sec.gov/Archives/edgar/data/811532/000081153222000069/cedarfair-q1x2022xex101.htm)</u> | <u>[Amendment No. 5, dated as of February 7, 2022, to the Amended and Restated Credit Agreement, dated as of April 13, 2017, among Cedar Fair, Magnum, Cedar Canada and Millennium, as borrowers, the lenders party thereto from time to time, JPMorgan Chase Bank, N.A., as administrative agent and collateral agent and the other parties thereto. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Form 10-Q (File No. 001-09444) filed on May 4, 2022.](http://www.sec.gov/Archives/edgar/data/811532/000081153222000069/cedarfair-q1x2022xex101.htm)</u> |
| <u>[10.24](http://www.sec.gov/Archives/edgar/data/811532/000081153222000069/cedarfair-q1x2022xex102.htm)</u> | <u>[2016 Omnibus Incentive Plan Form of Restricted Unit Award Declaration (2022 Employment Agreement Version). Incorporated herein by reference to Exhibit 10.2 to the Registrant's Form 10-Q (File No. 001-09444) filed on May 4, 2022. (+)](http://www.sec.gov/Archives/edgar/data/811532/000081153222000069/cedarfair-q1x2022xex102.htm)</u> |
| <u>[10.25](http://www.sec.gov/Archives/edgar/data/811532/000081153222000069/cedarfair-q1x2022xex103.htm)</u> | <u>[2016 Omnibus Incentive Plan Form of Restricted Unit Award Declaration (2022 Non-Employment Agreement Version). Incorporated herein by reference to Exhibit 10.3 to the Registrant's Form 10-Q (File No. 001-09444) filed on May 4, 2022. (+)](http://www.sec.gov/Archives/edgar/data/811532/000081153222000069/cedarfair-q1x2022xex103.htm)</u> |
| <u>[10.26](http://www.sec.gov/Archives/edgar/data/811532/000081153222000069/cedarfair-q1x2022xex104.htm)</u> | <u>[2016 Omnibus Incentive Plan Form of Performance Unit Award Agreement (2022 Employment Agreement Version). Incorporated herein by reference to Exhibit 10.4 to the Registrant's Form 10-Q (File No. 001-09444) filed on May 4, 2022. (+)](http://www.sec.gov/Archives/edgar/data/811532/000081153222000069/cedarfair-q1x2022xex104.htm)</u> |
| <u>[10.27](http://www.sec.gov/Archives/edgar/data/811532/000081153222000069/cedarfair-q1x2022xex105.htm)</u> | <u>[2016 Omnibus Incentive Plan Form of Performance Unit Award Agreement (2022 Non-Employment Agreement Version). Incorporated herein by reference to Exhibit 10.5 to the Registrant's Form 10-Q (File No. 001-09444) filed on May 4, 2022. (+)](http://www.sec.gov/Archives/edgar/data/811532/000081153222000069/cedarfair-q1x2022xex105.htm)</u> |
| <u>[10.28](http://www.sec.gov/Archives/edgar/data/811532/000119312522182940/d361879dex101.htm)</u> | <u>[Contract of Sale, dated June 27, 2022, entered into by and between California's Great America, LLC and Prologis, L.P. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Form 8-K (File No. 001-09444) filed on June 27, 2022.](http://www.sec.gov/Archives/edgar/data/811532/000119312522182940/d361879dex101.htm)</u> |
| <u>[10.29](http://www.sec.gov/Archives/edgar/data/811532/000119312522217360/d386736dex101.htm)</u> | <u>[Transition and Release Agreement, dated August 7, 2022, by and between Cedar Fair, L.P., Cedar Fair Management, Inc., Magnum Management Corporation and Craig Heckman. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Form 8-K (File No. 001-09444) filed on August 10, 2022. (+)](http://www.sec.gov/Archives/edgar/data/811532/000119312522217360/d386736dex101.htm)</u> |
| <u>[10.30](http://www.sec.gov/Archives/edgar/data/811532/000119312523032767/d427379dex101.htm)</u> | <u>[Amendment No. 6, dated February 10, 2023, to the Amended and Restated Credit Agreement, dated April 13, 2017, among Cedar Fair, L.P., Magnum, Cedar Canada and Millennium, as borrowers, the lenders party thereto from time to time, JPMorgan Chase Bank, N.A., as administrative agent and collateral agent and the other parties thereto. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Form 8-K (File No. 001-09444) filed on February 10, 2023.](http://www.sec.gov/Archives/edgar/data/811532/000119312523032767/d427379dex101.htm)</u> |
| <u>[10.31](cedarfair-q4x2022xex1031.htm)</u> | <u>[Cedar Fair, L.P. Executive and Management Severance Plan dated November 10, 2022. (+)](cedarfair-q4x2022xex1031.htm)</u> |
| <u>[10.32](cedarfair-q4x2022xex1032.htm)</u> | <u>[Offer Letter of Employment, Agreed and Accepted November 8, 2021, between Cedar Fair, L.P. and Brian Nurse. (+)](cedarfair-q4x2022xex1032.htm)</u> |
| <u>[10.33](cedarfair-10kx2022xex1033.htm)</u> | <u>[Cedar Fair, L.P. 2016 Omnibus Incentive Plan Form of Deferred Unit Award Agreement. (+)](cedarfair-10kx2022xex1033.htm)</u> |
| <u>[21](cedarfair-q4x2022xex21subs.htm)</u> | <u>[Subsidiaries of Cedar Fair, L.P.](cedarfair-q4x2022xex21subs.htm)</u> |
| <u>[22](http://www.sec.gov/Archives/edgar/data/811532/000081153222000029/cedarfair-q4xex222021.htm)</u> | <u>[Subsidiary Guarantors and Issuers of Guaranteed Securities. Incorporated herein by reference to Exhibit 22 to the Registrant's Form 10-K (File No. 001-09444) filed on February 18, 2022.](http://www.sec.gov/Archives/edgar/data/811532/000081153222000029/cedarfair-q4xex222021.htm)</u> |
| <u>[23](cedarfair-q4x2022xex23cons.htm)</u> | <u>[Consent of Independent Registered Public Accounting Firm.](cedarfair-q4x2022xex23cons.htm)</u> |
| <u>[31.1](cedarfair-q4x2022xex311.htm)</u> | <u>[Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](cedarfair-q4x2022xex311.htm)</u> |
| <u>[31.2](cedarfair-q4x2022xex312.htm)</u> | <u>[Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](cedarfair-q4x2022xex312.htm)</u> |
| <u>[32](cedarfair-q4x2022xex32.htm)</u> | <u>[Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](cedarfair-q4x2022xex32.htm)</u> |
| 101 | The following materials from the Partnership's Annual Report on Form 10-K for the year ended December 31, 2022 formatted in Inline XBRL: (i) the Consolidated Statements of Operations and Comprehensive Income (Loss), (ii) the Consolidated Balance Sheets, (iii) the Consolidated Statements of Cash Flows, (iv) the Consolidated Statements of Partners' Deficit, and (v) related notes, tagged as blocks of text and including detailed tags. |
| 104 | The cover page from the Partnership's Annual Report on Form 10-K for the year ended December 31, 2022, formatted in Inline XBRL (included as Exhibit 101). |

---

(+) Management contract or compensatory plan or arrangement.

**ITEM 16. FORM 10-K SUMMARY.**

None.

------

<u>[**Table of Contents**](#ida49bcaab7294a3fa6f2fdc975ef3428_7)</u>

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

**CEDAR FAIR, L.P.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Registrant)

DATED:&nbsp;&nbsp;&nbsp;&nbsp; February 17, 2023&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

By:&nbsp;&nbsp;&nbsp;&nbsp;Cedar Fair Management, Inc.

General Partner

---

| |
|:---|
| /S/ Richard A. Zimmerman |
| Richard A. Zimmerman |
| President and Chief Executive Officer |

---

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

---

| | | | |
|:---|:---|:---|:---|
| | <u>Signature</u> | <u>Title</u> | <u>Date</u> |
| /S/ | Richard A. Zimmerman | Director, President and Chief Executive Officer | February 17, 2023 |
|  | Richard A. Zimmerman | (Principal Executive Officer) |  |
| /S/ | Brian C. Witherow | Executive Vice President and Chief Financial Officer | February 17, 2023 |
|  | Brian C. Witherow | (Principal Financial Officer) |  |
| /S/ | David R. Hoffman | Senior Vice President and Chief Accounting Officer | February 17, 2023 |
|  | David R. Hoffman | (Principal Accounting Officer) |  |
| /S/ | Daniel J. Hanrahan | Chairman of the Board of Directors | February 17, 2023 |
|  | Daniel J. Hanrahan |  |  |
| /S/ | Louis Carr | Director | February 17, 2023 |
|  | Louis Carr |  |  |
| /S/ | Gina D. France | Director | February 17, 2023 |
|  | Gina D. France |  |  |
| /S/ | Michelle M. Frymire | Director | February 17, 2023 |
|  | Michelle M. Frymire |  |  |
| /S/ | Jennifer Mason | Director | February 17, 2023 |
|  | Jennifer Mason |  |  |
| /S/ | D. Scott Olivet | Director | February 17, 2023 |
|  | D. Scott Olivet |  |  |
| /S/ | Matthew A. Ouimet | Director | February 17, 2023 |
|  | Matthew A. Ouimet |  |  |
| /S/ | Carlos A. Ruisanchez | Director | February 17, 2023 |
|  | Carlos A. Ruisanchez |  |  |

---

## Exhibit 10.31

**Exhibit 10.31**

**CEDAR FAIR, L.P.**

**EXECUTIVE AND MANAGEMENT SEVERANCE PLAN**

**Purpose of this Plan; Summary Plan Description**

The purpose of this Cedar Fair, L.P. Executive and Management Severance Plan (the "**Plan**") is to ensure that Cedar Fair, L.P., a Delaware limited partnership, Cedar Fair Management, Inc., an Ohio corporation, and Magnum Management Corporation, an Ohio corporation (collectively referred to herein as "**Cedar Fair**" or the "**Company**"), will have the continued dedication of certain key executive and management employees by providing payment of severance benefits to eligible Participants whose employment with the Company and its Affiliates is terminated for reasons described in this Plan. This Plan is effective as of November 10, 2022 (the "**Effective Date**"); and supersedes any plan, program, guidelines, policy or arrangements previously in effect for Participants by which severance benefits would be provided by the Company; <u>provided, however</u>, this Plan does not supersede any individual written employment agreement that may provide for severance pay or severance pay and severance benefits upon termination of employment.

The Plan is intended to be an unfunded welfare plan maintained primarily for the purpose of providing severance benefits to a select group of highly compensated executives or management employees. All benefits payable under this Plan shall be paid directly by the Company out of its general assets. The Company shall not be required to segregate on its books or otherwise any amount to be used for the payment of benefits under this Plan. This Plan is not funded and has no assets.

Payments under this Plan are intended to be exempt from, or comply with, the requirements of Section 409A of the Code (as defined below) together with any Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation, any such regulations or other guidance that may be issued after the Effective Date ("**Section 409A**") and shall be interpreted accordingly. However, in no event is the Company responsible for any tax or penalty owed by a Participant with respect to the payments under the Plan.

This document is the Plan document, and also serves as the summary plan description of the Plan as required by the Employee Retirement Income Security Act of 1974, as amended.

**A.&nbsp;&nbsp;&nbsp;&nbsp;<u>Definitions</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1."**Administrator**" means the Compensation Committee of the Board of Directors, which shall be the Plan's "administrator" within the meaning of Section 3(16) of ERISA, or any successor committee as designated from time to time by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2."**Affiliate**" means any entity that is a member of a controlled group of corporations or a group of other trades or businesses under common control, within the meaning of Code Section 414(b) or (c), using eighty percent (80%) as the percentage of ownership required under such Code sections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3."**Base Salary**" means the Participant's annual base salary in effect immediately prior to the Participant's Qualifying Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4."**Board of Directors**" or "**Board**" means the board of directors of Cedar Fair Management, Inc.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5."**Business**" shall mean: (i) the business of amusement and water parks; (ii) the business of leisure theme parks; (iii) any other business engaged in or being developed (including production of materials used in the Company's or any of its Affiliates' businesses) by the Company or any of its Affiliates, or being considered by the Company or any of its Affiliates, at the time of the Participant's employment termination, regarding which Participant possesses or has access to any non-public information; and (iv) any joint venture, partnership or agency arrangements relating to the businesses described in (i) through (iii) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6."**Cash Compensation**" means with respect to any calendar year, (i) the total base salary payable in such calendar year, and (ii) the target annual cash incentive compensation with respect to such calendar year, if any, notwithstanding the fact that a portion of such bonuses may be paid to the Participant by March 15 of the following calendar year in compliance with the short-term deferral rule under Code Section 409A. For the avoidance of doubt, the term Cash Compensation does not include payments or benefits to the Participant under any employee benefit or fringe benefit plan, program, or arrangement, as such plans, programs, or arrangements currently exist or are hereafter amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7."**Cause**" means, with respect to termination of a Participant's employment by the Company, one or more of the following occurrences: (i) the Participant's willful and continued failure to perform the Participant's duties or to follow lawful instructions of any of the Company's Chief Executive Officer, Participant's supervisor or (as applicable) the Board of Directors, or a material breach of fiduciary duty after the Company delivers to the Participant a written notice specifying the failure or breach; (ii) the Participant's theft, fraud, or dishonesty with regard to the Company or in connection with the Participant's duties; (iii) the Participant's indictment for, conviction of (or pleading guilty or *nolo contendere* to) a felony or any lesser offense involving fraud or moral turpitude; (iv) the Participant's material violation of the Company's Code of Conduct or similar written policies after written notice specifying the failure or breach; (v) the Participant's willful misconduct unrelated to the Company having, or likely to have, a material negative impact on the Company (economically or its reputation) after written notice specifying the failure or breach; (vi) an act of gross negligence or willful misconduct by the Participant that relates to the affairs of the Company; (vii) a material breach by Participant of any provisions of this Plan, including without limitation the Restrictive Covenants; (viii) a final, non-appealable determination by a court or other governmental body of competent jurisdiction that a material violation by the Participant of federal or state securities laws has occurred; or (ix) any action, event or situation in which the Participant's employment with the Company or performance by Participant of Participant's duties to the Company constitutes a breach of, or otherwise contravenes, or is prevented by, interfered with or hindered by the terms of any employment agreement or other agreement or policy to which the Participant is a party or is otherwise bound, or Participant being subject to any limitation on Participant's activities on behalf of the Company as a result of agreements into which Participant has entered except for obligations of confidentiality with former employers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8."**Change in Control**" means a "change in the ownership" of Cedar Fair, L.P., a "change in effective control" of Cedar Fair, L.P., or a "change in the ownership of a substantial portion of the assets" of Cedar Fair, L.P. under Treasury Regulation Section 1.409A-3(i)(5), or any successor provision.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9."**Change in Control Protection Period**" means the period of time beginning on the date of the consummation of the Change in Control and ending on the twenty-four (24-) month anniversary of such Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10."**COBRA**" means the group health plan continuation requirements in Sections 601 through 607 of ERISA, and Section 4980B of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11."**Code**" means the Internal Revenue Code of 1986, as amended. Any reference to a section of the Code herein will be a reference to any successor or amended section of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.**"Code Section 409A"** means Section 409A of the Code and the Treasury regulations and guidance promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13."**Disability**" means a physical or mental incapacity or disability which has rendered, or is likely to render, a Participant unable to perform the Participant's material duties for a period of either (i) one hundred eighty (180) days in any twelve- (12-) month period or (ii) ninety (90) consecutive days, as determined by a medical physician selected by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14."**Equity Awards**" mean all unit options, unit appreciation rights, restricted unit awards, performance unit awards, distribution equivalents, other unit awards, unrestricted unit awards and such other unit or equity-based awards granted by Cedar Fair, L.P. pursuant to the Omnibus Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15."**ERISA"** means the Employee Retirement Income Security Act of 1974, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16."**Exchange Act**" means the Securities Exchange Act of 1934, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17."**Good Reason**" means, with respect to the termination of employment by a Participant, one or more of the following occurrences, without the Participant's written consent: (i) any material diminution in the Participant's responsibilities, authorities or duties; (ii) any material reduction in the Participant's then effective base salary or target incentive compensation opportunity (except in the event of a broad based reduction in base salary or incentive compensation opportunity applicable to substantially all Participants having comparable positions); or (iii) a forced relocation of the Participant's place of employment by the greater of seventy (70) miles or, if greater, the distance constituting a "material change in the geographic location" of the Participant's place of employment within the meaning of Code Section 409A; <u>provided, however</u>, that no event described in clause (i), (ii), or (iii) shall constitute Good Reason unless (A) Participant has given the Company written notice of the termination, setting forth the conduct of the Company that is alleged to constitute Good Reason, within sixty (60) days of the first date on which Participant has knowledge of such conduct, and (B) Participant has provided the Company at least thirty (30) days following the date on which such notice is provided to cure such conduct and the Company has failed to do so. Failing such cure, a termination of employment by Participant for Good Reason shall be effective on the day following the expiration of such cure period. For purposes of clarification, the above-listed conditions shall apply separately to each occurrence of Good Reason and failure to adhere to such conditions in the event of Good Reason shall not disqualify the Participant from asserting Good Reason for any subsequent occurrence of Good Reason.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18."**Noncompetition Period**" shall mean the period of the Participant's employment with the Company and the eighteen- (18-) month period following the Participant's termination of employment regardless of reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.**"Omnibus Plan"** means the Cedar Fair, L.P. 2016 Omnibus Incentive Plan or any successor plan thereto or other equity award plan in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20."**Participant**" means a Tier I Key Employee or a Tier II Key Employee who agrees in writing to the Restrictive Covenants in the manner and by the deadline set forth below in <u>Section B(d)</u> and who, upon a Qualifying Termination, may become entitled, based on the provisions of the Plan, to Severance Benefits under this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21."**Qualifying Termination**" means (i) as to a Tier I Key Employee, a Participant's termination of employment by the Company (or a successor entity) or any of its Affiliates without Cause or by a Participant for Good Reason, death or Disability, and (ii) as to a Tier II Key Employee, a Participant's termination of employment by the Company (or a successor entity) or any of its Affiliates without Cause or by a Participant for Good Reason. For the avoidance of doubt, (i) a Tier I Key Employee's termination of employment for any reason other than by the Company or an Affiliate without Cause, by death, by a Participant for Good Reason or due to Disability (including, without limitation, a termination of employment for Cause, retirement or a voluntary resignation by such Tier I Key Employee) shall not constitute a Qualifying Termination, and (ii) a Tier II Key Employee's termination of employment for any reason other than by the Company or an Affiliate without Cause or by a Participant for Good Reason (including, without limitation, a termination of employment for Cause, retirement, a voluntary resignation by such Tier II Key Employee, or Tier II Key Employee's death or termination due to Disability) shall not constitute a Qualifying Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.**"Restrictive Covenants"** means the covenants set forth in the Restrictive Covenant and Arbitration Agreement at <u>Appendix B</u> attached hereto and made a part hereof, and the acceptance of which by the deadline set forth below in <u>Section B(d)</u> is a condition of any Participant's eligibility for Severance Benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23."**Severance Benefits**" means the cash severance pay, continued equity vesting (if applicable) and other benefits payable to a Participant upon a Qualifying Termination determined by the Administrator in accordance with <u>Appendix A</u> attached hereto and made a part hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.**"Tier I Key Employee"** means an executive or key management employee of the Company or an Affiliate: (i) who either (x) is an Executive Vice President of the Company or an Affiliate, or (y) is a Senior Vice President of the Company or an Affiliate who directly reports to the Chief Executive Officer, or who is designated by the Board as a Tier I Key Employee for purposes of this Plan or as an "executive officer" for purposes of Item 401(b) of Regulation S-K and/or as an officer for purposes of Section 16 of the Exchange Act as that term is defined under Rule 3b-7 under the Exchange Act; and (ii) who is not a party to an employment agreement with the Company that may provide severance payments and/or benefits upon termination of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.**"Tier II Key Employee"** means an executive or key management employee of the Company or an Affiliate: (i) who either (x) is a Senior Vice President of the

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Company or an Affiliate who is not a direct report to the Chief Executive Officer and who is not otherwise a Tier I Key Employee, or (y) is a Vice President of the Company or an Affiliate who is recommended by the Chief Executive Officer and designated by the Board as a Tier II Key Employee for purposes of this Plan, or (z) is a Regional General Manager, Park General Manager or Assistant General Manager who is recommended by the Chief Executive Officer and designated by the Board as a Tier II Key Employee for purposes of this Plan; and (ii) who is not a party to an employment agreement with the Company that may provide severance payments and/or benefits upon termination of employment.

**B.&nbsp;&nbsp;&nbsp;&nbsp;<u>Eligibility</u>.**

A Participant is eligible for Severance Benefits under the Plan if he or she:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;is a Participant on the day immediately before his or her Qualifying Termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;has a Qualifying Termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;agrees to resign, to the extent applicable, as a member of the Board (and any committees thereof) and as a director and/or officer of the Company and any Affiliate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;has accepted, executed, and returned an executed copy to the Company of, the Restrictive Covenant and Arbitration Agreement at <u>Appendix B</u> by the later of (i) fourteen (14) calendar days after Participant is first notified in writing that he or she qualifies or has been designated as a Tier I Key Employee or Tier II Key Employee, as applicable, or (ii) fourteen (14) calendar days after the Effective Date of this Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;reaffirms and complies with the Restrictive Covenants; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;timely executes under the terms of Section E of the Plan and does not revoke a general release of claims in a form acceptable to the Company (a "**Release**"), as well as any other documents as the Administrator may deem necessary or appropriate in connection with participation in the Plan or the payment of such Severance Benefits.

Notwithstanding the foregoing,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;if the Participant's employment is terminated by the Company or an Affiliate and the Participant is given an immediate offer of employment with any Affiliate, subsidiary or joint venture of the Company or any successor employer of the Company or an Affiliate, the Participant is not entitled to any Severance Benefits under this Plan. For the avoidance of doubt, this provision is not intended to eliminate or modify the Participant's right to Severance Benefits in the event the Participant resigns for Good Reason; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;in the event any corporation, person or group of persons acting in concert begins a tender or exchange offer, circulates a proxy to unitholders or takes other steps known to the Participant intending to effect a Change in Control, the Participant agrees to remain an employee of the Company or an Affiliate and to devote the Participant's best efforts to render full-time services to the Company and its Affiliates commensurate with the Participant's position and in accordance

------

with all authorized instructions issued by the Company and its Affiliates and shall not be entitled to any Severance Benefits under this Plan upon a Qualifying Termination for Good Reason unless and until the earliest of the following: (a) a Change in Control has occurred; or (b) such other corporation, person or group has abandoned or terminated efforts to effect a Change in Control and the Participant thereafter terminates his or her employment for Good Reason.

**C.&nbsp;&nbsp;&nbsp;&nbsp;<u>Severance Benefits</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.If the Administrator determines that a Participant is eligible to receive Severance Benefits under this Plan, the Severance Benefits to which the Participant shall be entitled will be determined by the Administrator and shall be paid in the time and manner as set forth in **Appendix A** hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The Company or its Affiliates, as applicable, may cause such amounts to be withheld from Severance Benefits under this Plan as it determines necessary to fulfill any federal, state, or local wage or compensation withholding requirements. However, whether Severance Benefits are eligible compensation under the Company's benefit plans will be determined by the terms of such plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.**No Other Severance.** Participant hereby acknowledges and agrees that, other than the severance payments described in the applicable part of <u>Appendix A</u>, upon termination of employment Participant shall not be entitled to any other severance under any Company (or Company Affiliate) benefit plan or severance policy generally available to the Company's employees or otherwise, or any agreement with the Company or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.To the extent that following Participant's termination of employment with the Company, Participant becomes employed by or provides consultation services (or any other services for which Participant is compensated) to any natural person, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, governmental entity, or other entity or organization (each, a "**Person**") during any period, if any, in which the Company may be obligated to pay or provide to Participant compensation or benefits following such termination of employment,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Participant shall immediately notify the Company of any Person for whom Participant works or provides services; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Participant shall promptly provide to the Company copies of all pay statements (or similar statements) received from any such Person, or, if no such statements are available, a true, correct and complete description of any payments Participant is receiving*.***

**D.&nbsp;&nbsp;&nbsp;&nbsp;<u>COBRA Coverage</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Participant's last date of coverage under the Company's group health plans shall be set forth in a written notice of coverage termination to the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.COBRA benefits, if any, following a Qualifying Termination shall be as specified in <u>Appendix A</u>.

------

**E.&nbsp;&nbsp;&nbsp;&nbsp;<u>Release; Conditions to Payment</u>.**

The Company shall deliver the Release to a Participant within seven (7) days following the date of his or her Qualifying Termination. All payments and benefits due to Participant under this Plan which are not otherwise required by law shall be payable only if Participant (or Participant's beneficiary or estate, in the case of death) executes and delivers to the Company and does not revoke (under the terms of applicable law) the Release. Such Release shall be executed and delivered (and no longer subject to revocation) within sixty (60) days following termination and <u>provided</u> <u>further</u> that if the sixty- (60-) day period begins in one calendar year and ends in a second calendar year, payments shall always be made in the second calendar year. Failure to timely execute and return such release or revocation thereof shall be a waiver by Participant (or Participant's beneficiary or estate) of Participant's right to severance (which, for the avoidance of doubt, shall not include any amounts described in <u>Sections A.1.1(a), (c)</u> and <u>(h)</u> of <u>Appendix A</u> as to a Tier I Key Employee or any amounts described in <u>Sections A.2.1(a), (c)</u> and <u>(h)</u> of <u>Appendix A</u> as to a Tier II Key Employee). The payment of Severance Benefits under the Plan shall be subject to the provisions of this Plan and the terms and conditions of such Release, which are incorporated by this reference with respect to the payment of Severance Benefits and form a part of the Plan as applied to such Participant. In addition, Severance Benefits shall be conditioned on Participant's compliance with the Restrictive Covenants and Participant having executed the Restrictive Covenant Agreement set forth in <u>Appendix B</u> and having delivered such executed Restrictive Covenant Agreement to the Company by the deadline set forth in <u>Section B(d)</u> of this Plan.

**F.&nbsp;&nbsp;&nbsp;&nbsp;<u>Certain Forfeitures and Repayments</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Notwithstanding any other provision of this Plan, the Company shall be entitled to cease payment or provision of all Severance Benefits under this Plan to any Participant and the Company shall be entitled to recover any Severance Benefits the Participant has received under this Plan in the event of any breach by the Participant of the provisions of <u>Appendix B</u>, <u>Section 1.2</u>, or a material and willful breach of any other provision of the Restrictive Covenants, or in the event Participant engages in any conduct during employment or during any period in which Participant is receiving Severance Benefits that is competitive with the Business, subsequently discloses any of the trade secrets of the Company, its Affiliates or subsidiaries, materially violates any other written covenants between a Participant and the Company or any of its Affiliates or subsidiaries or the Company's confidentiality policy, or otherwise engages in conduct that may adversely affect the Company's or any of its Affiliates' reputation or business relations. In addition, any Participant described in the preceding sentence shall forfeit any right to Severance Benefits under this Plan which have not yet been paid or provided. For purposes of this clause, the Administrator may determine, in its sole discretion, the method for recovering any Severance Benefits from Participant including, without limitation: requiring the reimbursement of Severance Benefits paid in cash; seeking the return of, or the recovery of, any gain realized on the vesting, exercise, settlement, transfer or disposition of Equity Awards; offsetting the recovery amount from any other compensation otherwise owed to the Participant by the Company; or, any other recovery action permitted by law.

The Participant acknowledges that the Severance Benefits under this Plan are and shall be subject to and, when and to the extent applicable, governed by any compensation clawback policy of the Company, as adopted by the Board and in

------

effect as of or prior to a Participant's Qualifying Termination, and that the Company may offset any Severance Benefits hereunder against amounts owing or recoupable under the clawback policy, as determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.If a Participant who is entitled to receive Severance Benefits under this Plan is reemployed by the Company (or any successor thereto) or any of its subsidiaries or Affiliates before all of his or her Severance Benefits under this Plan have been paid or provided in full, any Severance Benefits remaining to be paid or provided will be forfeited.

**G.&nbsp;&nbsp;&nbsp;&nbsp;<u>Code Section 409A</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Notwithstanding any provisions of this Plan to the contrary, if a Participant is deemed at the time of his or her Qualifying Termination to be a "specified employee" for purposes of Code Section 409A, and as determined pursuant to applicable resolutions of the Board of Directors or as otherwise permitted by Code Section 409A, to the extent delayed commencement of any portion of the benefits to which the Participant is entitled under the Plan (after taking into account all exclusions applicable to such termination benefits under Code Section 409A) is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such portion of such Participant's Severance Benefits shall not be provided to the Participant prior to the earlier of (a) the expiration of the six- (6-) month period measured from the date of the Participant's "separation from service" with the Company and its subsidiaries (as such term is defined in the Department of Treasury Regulations issued under Code Section 409A) or (b) the date of the Participant's death. Any remaining Severance Benefits due under the Plan shall be paid as otherwise provided in this Plan. For purposes of applying the provisions of Code Section 409A to this Plan, each separately identified amount to which a Participant is entitled under this Plan shall be treated as a separate payment. In addition, to the extent permissible under Code Section 409A, any series of installment payments shall be treated as a right to a series of separate and distinct payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.For purposes of any provision of this Plan providing for the payment of any amount or benefit upon or following a termination of employment that constitutes "nonqualified deferred compensation" under Code Section 409A, a termination of employment shall not be deemed to have occurred unless such termination is also a "separation from service" within the meaning of Code Section 409A and, for purposes of any such provision of this Plan, references to a "termination," "termination of employment" or like terms shall mean "separation from service."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Neither the Company nor a Participant, individually or in combination, may accelerate any Severance Benefit payment or provision that is subject to Code Section 409A, except in compliance with Code Section 409A or an exception thereto and the provisions of this Plan; and no amount that is subject to Code Section 409A shall be paid or provided prior to the earliest date on which it may be paid or provided without violating Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Notwithstanding anything herein to the contrary, no provision of this Plan shall be interpreted or construed to transfer any liability for failure to comply with the requirements of Code Section 409A from a Participant or any other individual to the Company or any of its Affiliates, employees, members of the Board or agents.

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**H.&nbsp;&nbsp;&nbsp;&nbsp;<u>Sections 280G and 4999 of the Code</u>.**

Anything in this Plan to the contrary notwithstanding, if the present value of all payments, distributions and benefits provided to the Participant or for the Participant's benefit pursuant to the terms of this Plan or otherwise which constitute a "parachute payment" when aggregated with other payments, distributions, and benefits which constitute "parachute payments," exceed two hundred ninety-nine percent (299%) of the Participant's "base amount," then such payments, distributions and benefits shall either be (i) paid and delivered in full, or (ii) paid and delivered in such lesser amount as would result in no portion of such payments, distributions and benefits being subject to the excise tax imposed by Section 4999 of the Code (the "**Excise Tax**"), whichever of the foregoing amounts (taking into account the applicable federal, state and local income taxes and the Excise Tax) results in the receipt by the Participant on an after-tax basis of materially larger payments, distributions and benefits as determined by the Company. As used herein, "parachute payment" has the meaning ascribed to it in Section 280G(b)(2) of the Code, without regard to Code Section 280G(b)(2)(A)(ii); and "base amount" has the meaning ascribed to it in Code Section 280G and the regulations thereunder. If the "present value" as defined in Code Sections 280G(d)(4) and 1274(b) (2), of such aggregate "parachute payments" as determined by the Company exceeds the 299% limitation set forth herein and subparagraph (ii) above applies, such payments, distributions and benefits shall be reduced by the Company in accordance with the order of priority set forth below so that such reduced amount will result in no portion of the payments, distributions and benefits being subject to the Excise Tax. Such payments, distributions and benefits will be reduced by the Company in accordance with the following order of priority (A) reduction of cash payments; (B) cancellation of accelerated vesting of Equity Awards; and (C) reduction of employee benefits. If acceleration of vesting of Equity Award compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of the Participant's Equity Awards.

**I.&nbsp;&nbsp;&nbsp;&nbsp;<u>Taxable Reimbursements and In-Kind Benefits</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Any reimbursements by the Company to a Participant of any eligible expenses under this Plan that are not excludable from the Participant's income for federal income tax purposes (the "**Taxable Reimbursements**") shall be made by no later than the last day of the Participant's taxable year immediately following the year in which the expense was incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The amount of any Taxable Reimbursements, and the value of any in-kind benefits to be provided to a Participant, during any taxable year of the Participant shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year of the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.The right to Taxable Reimbursement, or in-kind benefits, shall not be subject to liquidation or exchange for another benefit.

**J.&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendment or Termination of Plan</u>.**

This Plan may be amended or terminated by the Board at any time and from time to time, in its sole discretion, including without limitation as to Participant eligibility requirements and individual designations as Tier I or Tier II Key Employees; <u>provided</u>, that no such amendment or termination or change in designation shall materially and adversely affect the rights of any Participant who has experienced a Qualifying Termination on or prior to such amendment or termination without his or her written

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consent; and <u>provided</u>, <u>further</u>, that no such amendment or termination during the applicable Change in Control Protection Period shall materially and adversely affect the rights of any Participant without his or her written consent.

**K.&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>.**

This Plan is governed by federal law known as ERISA. To the extent that state law is applicable, (i) the internal laws of the State of Ohio without regard to any conflict of law provisions shall be controlling in all matters relating to this Plan, and (ii) any disputes, claims or controversies (collectively, "**claims**") regarding the interpretation or construction of this Plan by the Administrator, determinations by the Administrator of Participants' eligibility for Severance Benefits, factual determinations made by the Administrator under this Plan, or other determinations or actions by the Administrator regarding the administration of this Plan (collectively, "**Claim Administration Matters**"), must be litigated in the appropriate court located in Erie County, Ohio, or if jurisdiction will so permit, in the Federal District Court for the Northern District of Ohio. The Company and Participants hereby consent to the jurisdiction over each of them by such courts and waive all objections based on venue or inconvenient forum.

Notwithstanding the foregoing, this Section does not negate, diminish, or supersede <u>Section 1.10</u> of <u>Appendix B</u> (Arbitration) regarding the arbitration of the claims subject to that Section. In the event that a Participant or the Company have claims that actually or allegedly concern both (i) Claim Administration Matters and (ii) matters subject to <u>Section 1.10</u> of <u>Appendix B</u> (including, without limitation, any event in which a Participant is challenging a determination regarding Severance Benefits under this Plan as well as claiming unlawful discrimination, harassment, whistleblowing, retaliation, wrongful discharge, or constructive discharge), then the party first must initiate and pursue the claims subject to <u>Section 1.10</u> of <u>Appendix B</u> to a full and final resolution pursuant to the terms and conditions of that Section, and the party may not initiate or otherwise pursue any claims regarding Claim Administration Matters until after the claims subject to <u>Section 1.10</u> of <u>Appendix B</u> have been fully and conclusively resolved. In the event the operation of this Section would cause a claim regarding Claim Administration Matters to become time-barred under applicable law or <u>Section M</u> below then, at the request of the party pursuing that claim, the opposing party shall enter into a separate agreement tolling any applicable statutes of limitation and the time requirements set forth in <u>Section M</u> below regarding the claim regarding Claim Administration Matters.

**L.&nbsp;&nbsp;&nbsp;&nbsp;<u>Administration; General Rules</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.This Plan is administered by the Administrator. The Administrator, from time to time, may also appoint such individuals to act as the Administrator's representatives as the Administrator considers necessary or desirable for the effective administration of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The Administrator, from time to time, may adopt such rules and regulations as may be necessary or desirable for the proper and efficient administration of the Plan and as are consistent with the terms of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.In administering the Plan, the Administrator shall have the sole and absolute discretionary authority to construe and interpret the provisions of the Plan (and any related or underlying documents or policies), to interpret applicable law, and make factual determinations thereunder, including the authority to determine the eligibility of Participants and the amount of Severance Benefits payable under the

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Plan. Any interpretation of this Plan and any related or underlying documents or policies and any decision on any matter within the discretion of the Administrator made by the Administrator in good faith is binding on all persons. If challenged in a legal proceeding, the Administrator's interpretations and determinations will be reviewed under the most deferential abuse of discretion standard of review.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.If, due to errors in drafting, any Plan provision does not accurately reflect its intended meaning, as demonstrated by consistent interpretations or other evidence of intent, or as determined by the Administrator in its sole and absolute discretion, the provision shall be considered ambiguous and shall be interpreted by the Administrator in a fashion consistent with its intent, as determined in the sole and absolute discretion of the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.This Section L may not be invoked by any Tier I Key Employee, Tier II Key Employee, Participant or other person to require this Plan to be interpreted in a manner inconsistent with its interpretation by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.The Administrator will apply uniform rules to all similarly situated Participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.Neither this Plan nor any action taken with respect to it shall confer upon any person the right to continue in the employ of the Company, or a right to continue to be designated as an eligible Participant or as a Tier I Key Employee or Tier II Key Employee under the Plan, nor are any contractual obligations created.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.Severance Benefits under this Plan may not be assigned but shall inure to the benefit of and be enforceable by a Participant's personal or legal representatives, executors, administrators, heirs, devisees and legatees, and to the Company's successors and assigns.

**M.<u>Claims and Review Procedure; ERISA Statement; Plan Identification Number and Administration.</u>**

**CLAIMS AND REVIEW PROCEDURE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.**Claims Procedure.** A Participant who has not received Severance Benefits under the Plan that he or she believes should be paid shall make a claim for such Severance Benefits as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)**Initiation – Written Claim.** The Participant (or a deceased Participant's legal representative(s), surviving spouse and dependents) (each a "**Claimant**") initiates a claim by submitting to the Administrator a written claim for Severance Benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)**Timing of Response.** The Administrator shall respond to such Claimant within forty-five (45) days after receiving the claim. If the Administrator determines that special circumstances require additional time for processing the claim, the Administrator can extend the response period by an additional forty-five (45) days by notifying the Claimant in writing, prior to the end of the initial forty-five- (45-) day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Administrator expects to render its decision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)**Notice of Decision.** If the Administrator denies part or all of the claim, the Administrator shall notify the Claimant in writing of such denial. The

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Administrator shall write the notification in a manner calculated to be understood by the Claimant. The notification shall set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.The specific reasons for the denial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.A reference to the specific provisions of the Plan on which the denial is based;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.A description of any additional information or material necessary for the Claimant to perfect the claim and an explanation of why it is needed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.An explanation of the Plan's review procedures and the time limits applicable to such procedures, including a statement of the Claimant's right to bring a civil action under Section 502(a) of ERISA following an adverse benefit determination on review by the Claims Appeal Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)**Disability Claim for Benefits.** If the claim is based on Disability, the notice of denial pursuant to <u>Section M.1.c</u> also will provide the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.A discussion of the decision that includes an explanation of the basis for disagreeing with or not following (aa) views of medical or vocational experts that were presented to Claimant with Claimant's request for review or whose advice was obtained by the Administrator in connection with the review of the claim or (bb) a Disability determination made by the Social Security Administration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.If the decision is based on a medical necessity or experimental treatment or similar exclusion or limit, either an explanation of the scientific or clinical judgment for the determination, applying the terms of this Plan to the Claimant's medical circumstances, or a statement that such explanation will be provided free of change upon request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.The rules, guidelines, standards or other criteria of the Plan that the Administrator relied on in making its decision or statement that no such rules, guidelines, standards or other criteria of the Plan exist.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.A statement that the Claimant is entitled to receive, upon request and free of charge, all information relevant to the Claimant's Disability claim for Severance Benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.**Review Procedure.** If the Administrator denies part or all of the claim, the Claimant shall have the opportunity for a full and fair review of the denial by a committee of one or more individuals appointed by the Administrator (the "**Claims Appeal Committee**"), as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)**Initiation – Written Request.** To initiate the review, the Claimant, within sixty (60) days (or within one hundred eighty (180) days if a Disability claim) after receiving the Administrator's notice of denial, must file with the Claims Appeal Committee a written request for review.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)**Additional Submissions – Information Access.** The Claimant shall then have the opportunity to submit written comments, documents, records and

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other information relating to the claim. The Administrator shall also provide the Claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the Claimant's claim for benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)**Considerations on Review.** In considering the review, the Claims Appeal Committee shall take into account all materials and information the claimant submits relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)**Timing of Response.** The Claims Appeal Committee shall respond in writing to such Claimant within forty-five (45) days after receiving the request for review. If the Claims Appeal Committee determines that special circumstances require additional time for processing the claim, the Claims Appeal Committee can extend the response period by an additional forty-five (45) days by notifying the Claimant in writing, prior to the end of the initial forty-five- (45-) day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Claims Appeal Committee expects to render its decision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)**Disability Claim Appeal.** If the Claimant's claim is based on Disability, the Claims Appeal Committee will not give deference to the initial denial of the Claimant's claim and the review will not be conducted by any person who initially denied the claim (or a subordinate of such person). In addition, the review must meet the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.If the initial denial is based (in whole or in part) on a medical judgment, the person reviewing the claim must consult with a health care professional who (aa) has appropriate medical training and experience, and (bb) was not consulted in connection with the initial denial (and is not the subordinate of any individual who was consulted in connection with the initial denial).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.The review must identify any medical or vocational experts whose advice was obtained for the initial claim decision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.The Claims Appeal Committee must provide you, at no cost, with any new information that was considered by any person reviewing the Claimant's claim. The information must be provided sufficiently in advance of the decision deadline to give the Claimant a reasonable opportunity to respond before that date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.Similarly, if the Claims Appeal Committee is going to deny the Claimant's claim on review based on a new or additional rationale, the rationale must be provided to the Claimant, free of charge, and sufficiently in advance of the decision deadline to give the Claimant a reasonable opportunity to respond before that date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)**Notice of Decision.** The Claims Appeal Committee shall notify the Claimant in writing of its decision on review. The Claims Appeal Committee shall write the notification in a manner calculated to be understood by the Claimant. The notification shall set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.The specific reasons for the denial;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.A reference to the specific provisions of the Plan on which the denial is based; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.A statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the Claimant's claim for benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.**Time Period to File Lawsuit.** If the Claimant's claim for Severance Benefits is denied after the Claims Procedure and Review Procedure is completed, then the Claimant may file suit in a state of federal court subject to compliance with <u>Section K</u> of the Plan. However, any such suit by the Claimant must be filed no later than one hundred eighty (180) days after the Claims Appeal Committee's denial of the Claimant's claim is received by the Claimant.

Nothing in this Section shall be interpreted to negate, diminish, or supersede <u>Section 1.10</u> of <u>Appendix B</u> (Arbitration) regarding the arbitration of the claims subject to that Section (as distinguished from claims regarding Claim Administration Matters).

**<u>ERISA STATEMENT</u>**

As a Participant eligible to be a Participant in the Plan, you are entitled to certain rights and protections under ERISA. ERISA provides that all Participants in the Plan shall be entitled to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Examine, without charge, at the Administrator's office and at other specified locations, such as work sites, all documents governing the Plan and a copy, if applicable, of the latest annual report (Form 5500 Series) filed by the Administrator with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Obtain, upon written request to the Administrator, copies of documents governing the operation of the Plan, including, if applicable, insurance contracts, and copies of the latest annual report (Form 5500 Series) and updated summary plan description. The Administrator may make a reasonable charge for the copies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Receive a summary of the Plan's annual financial report, if applicable to the Plan. The Administrator is required by law to furnish each participant with a copy of this summary annual report, if applicable to the Plan.

In addition to creating rights for Participants in the Plan, ERISA imposes duties upon the people who are responsible for the operation of the Plan. The people who operate the Plan, called "fiduciaries" of the Plan, have a duty to do so prudently and in the interest of you and other Participants and beneficiaries. No one, including your employer, or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining Severance Benefits under the Plan or exercising your rights under ERISA.

If your claim for Severance Benefits under the Plan is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.

Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of Plan documents or, if applicable, the latest annual report from the Plan and do not receive them within thirty (30) days, you may file suit in a federal court. In such case, the

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court may require the Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Administrator. If you have a claim for severance pay that is denied or ignored, in whole or in part, you may file suit in a state or federal court. In addition, if you disagree with the Administrator's decision or lack thereof concerning the qualified status of a domestic relations order or a medical child support order, you may file suit in federal court. If it should happen that you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees if, for example, it finds your claim was frivolous.

If you have any questions about the Plan, you should contact the Administrator. If you have any questions about this statement or about your rights under ERISA, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration.

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**<u>PLAN IDENTIFICATION NUMBER AND ADMINISTRATION</u>**

Name of the Plan: Cedar Fair, L.P. Executive and Management Severance Plan

Type of Plan:&nbsp;&nbsp;&nbsp;&nbsp;Employee welfare benefits plan

Plan Year:&nbsp;&nbsp;&nbsp;&nbsp;January 1 – December 31

Plan Sponsor:&nbsp;&nbsp;&nbsp;&nbsp;Cedar Fair, L.P.

&nbsp;&nbsp;&nbsp;&nbsp;One Cedar Point Drive, Sandusky, OH 44870-5259

&nbsp;&nbsp;&nbsp;&nbsp;(419) 626-0830

Plan Sponsor's Employer&nbsp;&nbsp;&nbsp;&nbsp;

Identification Number:&nbsp;&nbsp;&nbsp;&nbsp;34-1560655

Plan Identification Number:&nbsp;&nbsp;&nbsp;&nbsp;508

Plan Administrator:&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee of the Board of Directors of Cedar Fair Management, Inc. is the Plan's Administrator. The Administrator has the sole authority and discretion to interpret the terms of the Plan. Severance Benefits under the Plan will be paid only if the Administrator, or its designee, decides in its sole discretion that the Participant is entitled to them.

Named Fiduciary:&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee of the Board of Directors of Cedar Fair Management, Inc. is the named fiduciary under ERISA that has the authority to control and manage the operation and administration of the Plan.

Agent for Service of Legal Process:&nbsp;&nbsp;&nbsp;&nbsp;Cedar Fair, L.P., One Cedar Point Drive, Sandusky, Ohio 44870-0830, Attn: Chief Legal Officer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>APPENDIX A</u>**

**<u>SEVERANCE BENEFITS</u>**

This <u>Appendix A</u> specifies the Severance Benefits under the Plan for all Participants, with <u>Section A.1</u> (commencing on page A-1) specifying benefits for Tier I Key Employees and <u>Section A.2</u> (commencing on page A-6) specifying benefits for Tier II Key Employees. Any term not defined in this <u>Appendix A</u> shall have the meaning set forth in the Plan.

**A.1. TIER I KEY EMPLOYEES**

A.1.1.**Termination Without Cause or Resignation for Good Reason – Outside a Change in Control Protection Period.** If Tier I Key Employee's employment is terminated other than during a Change in Control Protection Period either (a) by the Company without Cause (and not for death or due to Disability) or (b) by Tier I Key Employee for Good Reason, then subject to <u>Section E</u> of the Plan and <u>Section F</u> of the Plan, Tier I Key Employee shall be entitled to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)within thirty (30) days following such termination, (i) payment of Tier I Key Employee's accrued and unpaid Base Salary, (ii) any reimbursement of expenses that is available pursuant to the Company's then-applicable policies and procedures, and (iii) any payment for accrued and unused vacation days that is available pursuant to the Company's then-applicable policies and procedures, in each case accrued as of the date of termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)an amount equal to one (1) times Tier I Key Employee's Base Salary payable at the same time Base Salary would be paid over the twelve- (12) month period following termination if Tier I Key Employee had remained employed with the Company; <u>provided</u> that, subject to <u>Section E</u> of the Plan and <u>Section G</u> of the Plan, the first payment shall be made on the next regularly scheduled payroll date following the sixtieth (60th) day after Tier I Key Employee's termination. The first payment shall include payment of any amounts that would otherwise be due prior thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)any annual cash incentive earned with respect to a calendar year ending on or prior to the date of such termination of employment but unpaid as of such date, shall be payable at the same time such payment would be made if Tier I Key Employee continued to be employed by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)a pro-rata portion of Tier I Key Employee's annual cash incentive for the calendar year in which Tier I Key Employee's termination of employment occurs (determined by multiplying the amount of such annual cash incentive which would be due for the full calendar year by a fraction, the numerator of which is the number of days during the calendar year of termination that Tier I Key Employee is employed with the Company and the denominator of which is three hundred sixty-five (365)); <u>provided that</u> such prorated amount shall be based on actual performance and payable at the same time that other senior executives of the Company receive bonus payments in respect of the calendar year in which such termination occurs, but in no event later than March 15 of the calendar year following the end of the calendar year to which such annual cash incentive relates; and <u>provided further</u>, that any qualitative performance criteria applicable to such bonus shall be deemed to have fully met expectations;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>APPENDIX A</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)subject to Tier I Key Employee's timely election of continuation coverage under Part 6 of Title I of ERISA and COBRA, the Company shall pay to Tier I Key Employee each month an after-tax amount equal to the monthly amount of the COBRA continuation coverage premium under the Company's group medical plans as in effect from time to time, less the amount of Tier I Key Employee's portion of the premium as if the Tier I Key Employee were an active employee until the earliest of: (i) twelve (12) months after the date of Tier I Key Employee's termination of employment; (ii) the date Tier I Key Employee is no longer eligible for benefits under COBRA; or (iii) the date Tier I Key Employee obtains other employment that offers medical benefits, <u>provided</u> that the first payment of any amount described in this <u>Appendix A</u> <u>Section A.1.1(e)</u> shall be paid following Tier I Key Employee's termination of employment as described in <u>Section E</u> of the Plan or <u>Section G</u> of the Plan and shall include any amounts due prior thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)subject to Tier I Key Employee executing a general release of all claims as set forth in Section E of the Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Tier I Key Employee shall continue to vest in a prorated portion of any Equity Awards (or unvested portions thereof) outstanding as of the date of such Qualifying Termination without Cause or resignation for Good Reason, whether such grants were made prior to or following the Effective Date (except for any 2021-2025 performance unit awards held by Tier I Key Employee as of the date of such Qualifying Termination, which shall be governed by <u>Section A.1.1(f)(ii)</u>, and except that this provision shall not apply to any 2020-2022 performance units held by Tier I Key Employee as of the date of such Qualifying Termination, which shall be governed by the Omnibus Plan and the applicable award agreements). For purposes of this <u>Section A.1.1(f)(i)</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)Proration shall be based on the number of full months of the applicable performance period (for performance-based awards) or vesting period (for non-performance-based awards) completed prior to the date of such Qualifying Termination.

If any single Equity Award incorporates multiple tranches having different vesting periods, each tranche shall be considered separately for purposes of determining the proration under this <u>Section A.1.1(f)(i)</u>, and the number of units that would become payable for each such tranche would be determined by multiplying the number of units that could have become payable on the payment date for such tranche by a fraction, (a) the numerator of which shall be the number of full calendar months of the applicable vesting period for such tranche completed prior to the date of such Qualifying Termination, and (b) the denominator of which shall be the total number of months of the applicable vesting period for such tranche.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)Prorated payouts of any performance-based Equity Awards shall be computed by multiplying the proration factor that

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>APPENDIX A</u>**

results from the calculation set forth in <u>Section A.1.1(f)(i)(A)</u> by the target number of potential performance units under such award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)Other than with respect to options (which shall be governed by the related award agreements), and except for such proration and prorated target payouts (where applicable), Tier I Key Employee shall receive payments on the payment date(s) as provided in the applicable award agreement as if the Tier I Key Employee were employed by the Company on the relevant payment date, and such prorated portions of all such Equity Awards (or the unvested portions thereof) shall be paid or vest pursuant to the terms of the original award agreements, but without regard to any continuing employment requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Solely with respect to any unvested portions of any 2021-2025 performance unit award held by Tier I Key Employee as of the date of such Qualifying Termination without Cause or resignation for Good Reason, the following shall apply to such unvested portions of such 2021-2025 performance unit award and shall govern and control over any conflicting term of such award: Tier I Key Employee shall continue to vest and become fully vested in any payments under the 2021-2025 performance unit award that are scheduled to vest within the eighteen- (18-) month period following Tier I Key Employee's date of such termination, Tier I Key Employee shall receive payments on each such payment date as provided in the original 2021-2025 performance unit award agreement as if the Tier I Key Employee were employed by the Company on the relevant payment date, and all such portions of the 2021-2025 performance unit award shall be paid or vest pursuant to the terms of the original award agreement, based on actual performance, but without regard to any continuing employment requirements or proration. Potential payments under the 2021-2025 performance unit award that are scheduled to vest (in whole or in part) after the eighteen- (18-) month period following Tier I Key Employee's date of termination, shall be forfeited in accordance with the terms of the original 2021-2025 performance unit award agreement and the terms of the Omnibus Plan.

For the avoidance of doubt, no benefits shall be provided under this <u>Section A.1.1(f)</u> for any terminations of employment during a Change in Control Protection Period or for terminations of employment resulting from Disability or death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)**Facility of Payments in the Event of Death After Termination of Employment.** Severance payments (made by reason of terminations without Cause or resignation for Good Reason) which have not yet commenced (i.e., due to the application of a waiting period in accordance with Section 409A), or which have commenced, but are unpaid at death of Tier I Key Employee (i.e., during months six to twelve months after termination), will be paid to Tier I Key Employee's designated beneficiary or legal representative, as applicable; and,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>APPENDIX A</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)**Other Accrued Amounts.** All other accrued amounts or accrued benefits due to Tier I Key Employee shall be paid or provided in accordance with the Company's benefit plans, programs or policies (other than severance).

A.1.2.**Termination Without Cause or Resignation for Good Reason within a Change in Control Protection Period.** If Tier I Key Employee's employment is terminated within a Change in Control Protection Period either (a) by the Company without Cause (and not for death or due to Disability), or (b) by Tier I Key Employee for Good Reason, then subject to <u>Section E</u> of the Plan and <u>Section F</u> of the Plan, Tier I Key Employee shall be entitled to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the benefits, payments, and protections specified in <u>Sections A.1.1(a), (c), (e), (g)</u>, and <u>(h)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)an amount equal to two and one-half (2-1/2) times Tier I Key Employee's annual Cash Compensation for the year preceding the calendar year in which a Change in Control occurred, paid in a lump sum on the next regularly scheduled payroll date following the sixtieth (60th) day after Tier I Key Employee's termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)a pro-rata portion of Tier I Key Employee's annual cash incentive for the calendar year in which Tier I Key Employee's termination of employment occurs (determined by multiplying (x) the amount of such annual cash incentive which would be due for the full calendar year based on the achievement of one hundred percent (100%) of the target level of performance, by (y) a fraction, the numerator of which is the number of days during the calendar year of termination that Tier I Key Employee is employed with the Company and the denominator of which is three hundred sixty-five (365)), which prorated amount shall be paid to the Tier I Key Employee in a lump sum on the next regularly scheduled payroll date following the sixtieth (60th) day after Tier I Key Employee's termination; <u>provided that</u>, for the avoidance of doubt, (i) if such termination occurs on the last day of the calendar year, the foregoing shall not apply and <u>Section A.1.1(c)</u> shall govern, and (ii) this paragraph shall supersede and apply in lieu of Section 13.1(e) of the Omnibus Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)the treatment of any Equity Awards shall be governed by the Omnibus Plan and the applicable award agreements.

A.1.3.**Termination Due to Disability.** Upon the termination of Tier I Key Employee's employment due to Tier I Key Employee's Disability, subject to <u>Section E</u> of the Plan and <u>Section F</u> of the Plan, Tier I Key Employee or Tier I Key Employee's legal representatives shall be entitled to receive (i) the payments, benefits and protections described under <u>Sections A.1.1(a), (c), (d), (e), (g)</u>, and <u>(h)</u> of this <u>Appendix A</u> and (ii) the payments described under <u>Section A.1.1(b)</u> of this <u>Appendix A</u>, <u>provided that</u> any such payments actually received by the Tier I Key Employee from a bona fide short-term or long-term disability plan maintained by the Company shall be used to reduce any payment made by the Company pursuant to this <u>Section A.1.3(ii)</u> on a dollar for dollar basis if: (x) the disability plan payments qualify as "disability pay" under Treasury Regulation Section 31.3121(v)(2)-1(b)(4)(iv)(C); (y) such disability plan payments do not already reflect a deduction for the amounts made by the Company pursuant to this provision; and (z) such reduction does not otherwise affect the time of payment of such Base Salary or the provision of benefits. The treatment of any Equity Awards outstanding on the date of a Tier I Key Employee's

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>APPENDIX A</u>**

termination due to Disability shall be governed by the Omnibus Plan and the applicable award agreements.

A.1.4.**Termination Due to Death.** Upon the termination of Tier I Key Employee's employment due to Tier I Key Employee's death, subject to <u>Section E</u> of the Plan, Tier I Key Employee or Tier I Key Employee's legal representatives shall be entitled to receive the payments and benefits described under <u>Sections A.1.1(a), (c), (d)</u> and <u>(h)</u> of this <u>Appendix A</u>. In addition subject to Tier I Key Employee's spouse and eligible dependents timely election of continuation coverage under the COBRA, the Company shall pay to Tier I Key Employee's spouse and eligible dependents each month an after-tax amount equal to the monthly amount of the COBRA continuation coverage premium under the Company's group medical plans as in effect from time to time, less the amount of Tier I Key Employee's portion of the premium as if Tier I Key Employee were an active employee for a period of up to twelve (12) months after the date of Tier I Key Employee's death, if permitted under applicable law as determined in good faith by Cedar Fair. The treatment of any Equity Awards outstanding on the date of a Tier 1 Key Employee's termination resulting from the Tier I Key Employee's death shall be governed by the Omnibus Plan and the applicable award agreements.

A.1.5.**Termination for Any Other Reason.** If Tier I Key Employee's employment is terminated by the Company for any reason not otherwise covered under <u>Section A.1.1</u>, <u>A.1.2</u>, <u>A.1.3</u>, or <u>A.1.4</u> of this <u>Appendix A</u>, then Tier I Key Employee will be entitled only to those payments and benefits provided under <u>Appendix A</u> <u>Section A.1.1(a), (c)</u> and <u>(h)</u>, except where expressly required otherwise pursuant to applicable law or the terms of any applicable Company benefit plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>APPENDIX A</u>**

**A.2. TIER II KEY EMPLOYEES**

A.2.1.**Termination Without Cause or Resignation for Good Reason – Outside a Change in Control Protection Period.** If Tier II Key Employee's employment is terminated other than during a Change in Control Protection Period either (a) by the Company without Cause (and not for death) or (b) by Tier II Key Employee for Good Reason, then subject to <u>Section E</u> of the Plan and <u>Section F</u> of the Plan, Tier II Key Employee shall be entitled to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)within thirty (30) days following such termination, (i) payment of Tier II Key Employee's accrued and unpaid Base Salary, (ii) any reimbursement of expenses that is available pursuant to the Company's then-applicable policies and procedures, and (iii) any payment for accrued and unused vacation days that is available pursuant to the Company's then-applicable policies and procedures, in each case accrued as of the date of termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)an amount equal to one-half (1/2) times Tier II Key Employee's Base Salary payable at the same time Base Salary would be paid over the six- (6) month period following termination if Tier II Key Employee had remained employed with the Company; <u>provided</u> that, subject to Section E of the Plan and Section G of the Plan, the first payment shall be made on the next regularly scheduled payroll date following the sixtieth (60th) day after Tier II Key Employee's termination. The first payment shall include payment of any amounts that would otherwise be due prior thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)any annual cash incentive earned with respect to a calendar year ending on or prior to the date of such termination of employment but unpaid as of such date, shall be payable at the same time such payment would be made if Tier II Key Employee continued to be employed by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)a pro-rata portion of Tier II Key Employee's annual cash incentive for the calendar year in which Tier II Key Employee's termination of employment occurs (determined by multiplying the amount of such annual cash incentive, which would be due for the full calendar year by a fraction, the numerator of which is the number of days during the calendar year of termination that Tier II Key Employee is employed with the Company and the denominator of which is three hundred sixty-five (365)), <u>provided that</u> such prorated amount shall be based on actual performance and payable at the same time that other senior executives of the Company receive bonus payments in respect of the calendar year in which such termination occurs, but in no event later than March 15 of the calendar year following the end of the calendar year to which such annual cash incentive relates; and <u>provided further</u>, that any qualitative performance criteria applicable to such bonus shall be deemed to have fully met expectations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)subject to Tier II Key Employee's timely election of continuation coverage under Part 6 of Title I of ERISA and COBRA, the Company shall pay to Tier II Key Employee each month an after-tax amount equal to the monthly amount of the COBRA continuation coverage premium under the Company's group medical plans as in effect from time to time, less the amount of Tier II Key Employee's portion of the premium as if the Tier II Key Employee were an active employee until the earliest of: (i) twelve (12) months after the date of Tier II Key Employee's termination

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>APPENDIX A</u>**

of employment; (ii) the date Tier II Key Employee is no longer eligible for benefits under COBRA; or (iii) the date Tier II Key Employee obtains other employment that offers medical benefits, <u>provided</u> that the first payment of any amount described in this <u>Appendix A</u> <u>Section A.2.1(e)</u> shall be paid following Tier II Key Employee's termination of employment as described in <u>Section E</u> of the Plan or <u>Section G</u> of the Plan and shall include any amounts due prior thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)subject to Tier II Key Employee executing a general release of all claims as set forth in Section E of the Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Tier II Key Employee shall continue to vest in a prorated portion of any Equity Awards (or unvested portions thereof) outstanding as of the date of such Qualifying Termination without Cause or resignation for Good Reason, whether such grants were made prior to or following the Effective Date (except for any 2021-2025 performance unit awards held by Tier II Key Employee as of the date of such Qualifying Termination, which shall be governed by <u>Section A.2.1(f)(ii)</u> and except that this provision shall not apply to any 2020-2022 performance units held by Tier II Key Employee as of the date of such Qualifying Termination, which shall be governed by the Omnibus Plan and the applicable award agreements). For purposes of this <u>Section A.2.1(f)(i)</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)Proration shall be based on the number of full months of the applicable performance period (for performance-based awards) or vesting period (for non-performance-based awards) completed prior to the date of such Qualifying Termination.

If any single Equity Award incorporates multiple tranches having different vesting periods, each tranche shall be considered separately for purposes of determining the proration under this <u>Section A.2.1(f)(i)</u>, and the number of units that would become payable for each such tranche would be determined by multiplying the number of units that could have become payable on the payment date for such tranche by a fraction, (a) the numerator of which shall be the number of full calendar months of the applicable vesting period for such tranche completed prior to the date of such Qualifying Termination, and (b) the denominator of which shall be the total number of months of the applicable vesting period for such tranche.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)Prorated payouts of any performance-based Equity Awards shall be computed by multiplying the proration factor that results from the calculation set forth in <u>Section A.2.1(f)(i)(A)</u> by the target number of potential performance units under such award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)Other than with respect to options (which shall be governed by the related award agreements), and except for such proration and prorated target payouts (where applicable), Tier II Key Employee shall receive payments on the

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>APPENDIX A</u>**

payment date(s) as provided in the applicable award agreement as if the Tier II Key Employee were employed by the Company on the relevant payment date, and such prorated portions of all such Equity Awards (or the unvested portions thereof) shall be paid or vest pursuant to the terms of the original award agreements, but without regard to any continuing employment requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Solely with respect to any unvested portions of any 2021-2025 performance unit award held by Tier II Key Employee as of the date of such Qualifying Termination without Cause or resignation for Good Reason, the following shall apply to such unvested portions of such 2021-2025 performance unit award and shall govern and control over any conflicting term of such award: Tier II Key Employee shall continue to vest and become fully vested in any payments under the 2021-2025 performance unit award that are scheduled to vest within the eighteen- (18-) month period following Tier II Key Employee's date of such termination, Tier II Key Employee shall receive payments on each such payment date as provided in the original 2021-2025 performance unit award agreement as if the Tier II Key Employee were employed by the Company on the relevant payment date, and all such portions of the 2021-2025 performance unit award shall be paid or vest pursuant to the terms of the original 2021-2025 performance unit award agreement, based on actual performance, but without regard to any continuing employment requirements or proration. Potential payments under the 2021-2025 performance unit award that are scheduled to vest (in whole or in part) after the eighteen- (18-) month period following Tier II Key Employee's date of termination, shall be forfeited in accordance with the terms of the original 2021-2025 performance unit award agreement and the terms of the Omnibus Plan.

For the avoidance of doubt, no benefits shall be provided under this <u>Section A.2.1(f)</u> for any terminations of employment during a Change in Control Protection Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)**Facility of Payments in the Event of Death After Termination of Employment.** Severance payments (made by reason of terminations without Cause or Resignation for Good Reason) which have not yet commenced (i.e., due to the application of a waiting period in accordance with Section 409A), or which have commenced, but are unpaid at death of Tier II Key Employee (i.e., during months six to twelve months after termination), will be paid to Tier II Key Employee's designated beneficiary or legal representative, as applicable; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)**Other Accrued Amounts.** All other accrued amounts or accrued benefits due to Tier II Key Employee shall be paid or provided in accordance with the Company's benefit plans, programs or policies (other than severance).

A.2.2.**Termination Without Cause or Resignation for Good Reason within a Change in Control Protection Period.** If Tier II Key Employee's employment is terminated within a Change in Control Protection Period either (a) by the Company without Cause (and not for death), or (b) by Tier II Key Employee for Good Reason, then

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>APPENDIX A</u>**

subject to <u>Section E</u> of the Plan and <u>Section F</u> of the Plan, Tier II Key Employee shall be entitled to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the benefits, payments, and protections specified in <u>Sections A.2.1(a), (c), (e), (g)</u>, and <u>(h)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)an amount equal to one (1) times Tier II Key Employee's annual Cash Compensation for the year preceding the calendar year in which a Change in Control occurred, paid in a lump sum on the next regularly scheduled payroll date following the sixtieth (60th) day after Tier I Key Employee's termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)a pro-rata portion of Tier II Key Employee's annual cash incentive for the calendar year in which Tier II Key Employee's termination of employment occurs (determined by multiplying (x) the amount of such annual cash incentive which would be due for the full calendar year based on the achievement of one hundred percent (100%) of the target level of performance, by (y) a fraction, the numerator of which is the number of days during the calendar year of termination that Tier I Key Employee is employed with the Company and the denominator of which is three hundred sixty-five (365)), which prorated amount shall be paid to the Tier II Key Employee in a lump sum on the next regularly scheduled payroll date following the sixtieth (60th) day after Tier II Key Employee's termination; <u>provided that</u>, for the avoidance of doubt, (i) if such termination occurs on the last day of the calendar year, the foregoing shall not apply and <u>Section A.2.1(c)</u> shall govern, and (ii) this paragraph shall supersede and apply in lieu of Section 13.1(e) of the Omnibus Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)the treatment of any Equity Awards shall be governed by the Omnibus Plan and the applicable award agreements.

A.2.3.**Termination for Any Other Reason.** If Tier II Key Employee's employment is terminated by the Company for any reason not otherwise covered under <u>Section A.2.1 or A.2.2</u> of this <u>Appendix A</u>, then Tier II Key Employee will be entitled only to those payments and benefits provided under <u>Appendix A</u> <u>Section A.2.1(a), (c)</u> and <u>(h)</u>, except where expressly required otherwise pursuant to applicable law or the terms of any applicable Company benefit plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>APPENDIX B</u>**

**<u>RESTRICTIVE COVENANT AND ARBITRATION AGREEMENT</u>**

This Restrictive Covenant and Arbitration Agreement ("**Agreement**" or "**Appendix B**") is entered into by and between Cedar Fair, L.P., a Delaware limited partnership, Cedar Fair Management, Inc., an Ohio corporation, and Magnum Management Corporation, an Ohio corporation (collectively, with their Affiliates, the "**Company**") and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ("**Participant**"), as of _______, 2022 (the "**Effective Date**"). All capitalized terms not specifically defined herein shall have the definitions set forth in the accompanying Cedar Fair, L.P. Executive and Management Severance Plan ("**Plan**"). The Company and Participant are entering into this Agreement as a condition of Participant's eligibility for participation and the opportunity to receive certain Severance Benefits under the Plan, which Participant acknowledges to be good and valuable consideration for Participant's obligations under this Agreement, in addition to other consideration provided by the Company. Participant and the Company agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Confidentiality</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)It is the policy of the Company to maintain as secret and confidential all "Confidential Information" (as defined herein). Each Participant recognizes that the services to be performed by the Participant as an employee of the Company are special and unique, and that by reason of Participant's employment by the Company, the Participant will acquire, or may have acquired, Confidential Information and the Company hereby agrees to provide Participant with access to certain of its Confidential Information during employment as necessary for Participant to perform his or her duties. As a Participant in the Plan, the Participant recognizes that all such Confidential Information is and shall remain the sole property of the Company, free of any rights of the Participant, and acknowledges that the Company has a vested interest in assuring that all such Confidential Information remains secret and confidential. Therefore, in consideration of the Participant's receipt of and access to Confidential Information and Participant's participation in the Plan, the Participant agrees that at all times during and after employment, the Participant will not, directly or indirectly, disclose to any person, firm, company or other entity (other than the Company) any Confidential Information, except as specifically required in the performance of the Participant's duties, without the prior written consent of the Company, except to the extent that (i) any such Confidential Information becomes generally available to the public, other than as a result of a breach by the Participant of this <u>Appendix B</u> <u>Section 1.1</u> or by any other employee of the Company subject to confidentiality obligations, or (ii) any such Confidential Information becomes available to the Participant on a non-confidential basis from a source other than the Company, or its employees or advisors; <u>provided,</u> that such source is not known by the Participant to be bound by a confidentiality agreement with, or other obligation of secrecy to, the Company or another party. In addition, it shall not be a breach of the confidentiality obligations hereof if the Participant is required by law to disclose any Confidential Information; <u>provided</u> that in such case, the Participant shall (x) give the Company the earliest notice possible that such disclosure is or may be required and (y) cooperate with the Company, at the Company's expense, in protecting to the maximum extent legally permitted, the confidential or proprietary nature of the Confidential Information which must be so disclosed. Notwithstanding the foregoing, the U.S. Defend Trade Secrets Act of 2016 ("<u>DTSA</u>") provides that an individual shall not be held criminally or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>APPENDIX B</u>**

civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (A) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. In addition, the DTSA provides that an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The obligations of Participant under this <u>Appendix B</u> <u>Section 1.1</u> shall survive any termination of this Plan and the Participant's employment with the Company. During the period of the Participant's employment with the Company, the Participant shall exercise all due and diligent precautions to protect the integrity of the business plans, customer lists, statistical data and compilation, agreements, contracts, manuals or other documents of the Company which embody the Confidential Information, and upon the expiration or the termination of the Participant's employment with the Company, the Participant agrees that all Confidential Information in the Participant's possession, directly or indirectly, that is in writing or other tangible form (together with all duplicates thereof) will forthwith be returned to the Company and will not be retained by the Participant or furnished to any person, either by sample, facsimile film, audio or video cassette, electronic data, verbal communication or any other means of communication. The Participant agrees that the provisions of this <u>Appendix B</u> <u>Section 1.1</u> are reasonably necessary to protect the proprietary rights of the Company in the Confidential Information and its trade secrets, goodwill and reputation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)For purposes hereof, the term "**Confidential Information**" means all information developed or used by the Company relating to the "Business" (as herein defined), operations, employees, customers, suppliers and distributors of the Company, including, but not limited to, customer lists, purchase orders, financial data, pricing information and price lists, business plans and market strategies and arrangements and any strategic plan, all books, records, manuals, advertising materials, catalogues, correspondence, mailing lists, production data, sales materials and records, purchasing materials and records, personnel records, quality control records and procedures included in or relating to the Business or any of the assets of the Company and all trademarks, copyrights and patents, and applications therefore, all trade secrets, inventions, processes, procedures, research records, market surveys and marketing know-how and other technical papers. The term "Confidential Information" also includes any other information heretofore or hereafter acquired by the Company and deemed by it to be confidential. For purposes of this Agreement, the term "**Business**" shall mean: (i) the business of amusement and water parks; (ii) the business of leisure theme parks; (iii) any other business engaged in or being developed (including production of materials used in the Company's businesses) by the Company, or being considered by the Company, at the time of the Participant's employment termination, regarding which Participant possesses or has access to any

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>APPENDIX B</u>**

non-public information; and (iv) any joint venture, partnership or agency arrangements relating to the businesses described in (i) through (iii) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Competition</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Participant agrees that, during the period of the Participant's employment with the Company and the eighteen- (18-) month period following the Participant's termination of employment regardless of reason (the "**Noncompetition Period**"), the Participant will not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)directly or indirectly, own, manage, operate, control or participate in the ownership, management or control of, or be connected as an officer, employee, partner, consultant, contractor, director, or otherwise with, or have any financial interest in, or aid, consult, advise, or assist anyone else in the conduct of, any entity or business:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)in which ten percent (10%) or more of whose annual revenues are derived from a Business as defined above; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)which conducts business in any locality or region of the United States or Ontario, Canada (whether or not such competing entity or business is physically located in the United States or Canada), or any other area where Business is being conducted by the Company on the date the Participant's employment ended (or, in the event of an alleged breach by Participant before Participant's employment ended, on the date of the alleged breach) or in each and every area where the Company intends to conduct such Business as it expresses such intent in the written strategic plan developed by the Company as of the date the Participant's employment is terminated;

(such entity or business as described in (A) or (B) above, a "**Competitor**"), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)either personally or by the Participant's agent or by letters, circulars or advertisements, and whether for the Participant or on behalf of any other person, company, firm or other entity, except in the Participant's capacity as an executive of the Company, canvass or solicit, or enter into or effect (or cause or authorize to be solicited, entered into, or effected), directly or indirectly, for or on behalf of the Participant or any other person, any business relating to the services of the type provided by, or orders for business or services similar to those provided by, the Company from any person, company, firm, or other entity who is, or has at any time within two (2) years prior to the date of such action been, a customer or supplier of the Company; <u>provided that</u> the restrictions of <u>Appendix B</u> <u>Section 1.2(a)(i)(y)</u> above shall also apply to any person, company, firm, or other entity with whom the Company is specifically seeking to develop a relationship as a customer or supplier of the Company at the date of such action.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>APPENDIX B</u>**

Notwithstanding the forgoing, neither the Participant's ownership of securities of a public company engaged in competition with the Company not in excess of five percent (5%) of any class of such securities, nor Participant's post-employment activities conducted in California, while residing and working in the State of California, shall be considered a breach of the covenants set forth in this <u>Appendix B</u> <u>Section 1.2(a)</u>. Further, the parties agree that, should a court or arbitrator of competent jurisdiction find that, as to Participant, the Noncompetition Period is overbroad and unenforceable due to the duration of the provision, the court or arbitrator shall reform or modify the duration of the Noncompetition Period to be the maximum legally enforceable period which does not otherwise exceed the Noncompetition Period; in the event the court or arbitrator cannot so reform or modify the duration of the Non-Competition Period, the "Noncompetition Period" shall then mean the period of Participant's employment and the 12-month period thereafter, but if the court or arbitrator determines that a 12-month post-employment duration would be overbroad, the "Noncompetition Period" shall then mean the period of Participant's employment and the 9-month period thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*<u>Post-Employment Activities in Virginia.</u>* Notwithstanding the foregoing, Participant's post-employment activities conducted in Virginia while residing and working in the State of Virginia, shall be governed exclusively by the following noncompete covenants in lieu of those set forth in <u>Appendix B,</u> <u>Section 1.2(a).</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The Participant agrees that during Participant's employment and for the 12-month period thereafter, the Participant will not within two hundred and fifty (250) miles of any city in which the Company conducts Business:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)directly or indirectly, own, manage, operate, control or participate in the ownership, management or control of, serve as an officer or director of, or perform any of the same responsibilities or roles that Participant held at the Company in the capacity an employee, contractor or consultant of, any Competitor; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)directly or indirectly solicit, invite or by any way, manner or means, attempt to induce by any person, company, firm, or other entity who is, or has at any time within two (2) years prior to the date of such action been, a customer or supplier of the Company, to do business with a Competitor or to otherwise cease or reduce business with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Participant agrees that, at all times from and after the date of participation, the Participant will not, either personally or by the Participant's agent or by letters, circulars or advertisements, and whether for the Participant or on behalf of any other person, company, firm, or other entity, except in the Participant's capacity as an employee of the Company:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>APPENDIX B</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)seek to persuade any employee of the Company to discontinue his or her status or employment therewith or to become employed in a business or activities likely to be competitive with the Business; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)solicit or employ any such person at any time within twelve (12) months following the date of cessation of employment of such person with the Company, in any locality or region of the United States or Canada and in each and every other area where the Company conducts its Business;

<u>provided; however</u>, that the restrictions set forth in this <u>Appendix B</u> <u>Section 1.2(b)</u> shall cease upon the expiration of the Noncompetition Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Assignment of Inventions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Participant agrees that during employment with the Company, any and all inventions, discoveries, innovations, writings, domain names, improvements, trade secrets, designs, drawings, formulas, business processes, secret processes and know-how, whether or not patentable or a copyright or trademark, which the Participant may create, conceive, develop or make, either alone or in conjunction with others and related or in any way connected with the Company's strategic plans, products, processes or apparatus or the Business (collectively, "**Inventions**"), shall be fully and promptly disclosed to the Company and shall be the sole and exclusive property of the Company as against the Participant or any of the Participant's assignees. Participant hereby agrees to waive all moral rights in and to such Inventions. Regardless of the status of the Participant's employment by the Company, the Participant and the Participant's heirs, assigns and representatives shall promptly assign to the Company any and all right, title and interest in and to such Inventions made during employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Whether during or after the Participant's employment with the Company, the Participant further agrees to execute and acknowledge all papers and to do, at the Company's expense, any and all other things necessary for or incident to the applying for, obtaining and maintaining of such letters patent, copyrights, trademarks or other intellectual property rights, as the case may be, and to execute, on request, all papers necessary to assign and transfer such Inventions, copyrights, patents, patent applications and other intellectual property rights to the Company and its successors and assigns. In the event that the Company is unable, after reasonable efforts and, in any event, after ten (10) business days, to secure the Participant's signature on a written assignment to the Company, of any application for letters patent, trademark registration or to any common law or statutory copyright or other property right therein, whether because of the Participant's physical or mental incapacity, or for any other reason whatsoever, the Participant irrevocably designates and appoints the Secretary of the Company as the Participant's attorney-in-fact to act on Participant's behalf to execute and file any such applications and to do all lawfully permitted acts to further the prosecution or issuance of such assignments, letters patent, copyright or trademark.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>APPENDIX B</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*Notice to Participants in California and Minnesota: This Agreement does not grant the Company any rights in Inventions for which no equipment, supplies, facility, or trade secret information of the Company was used and which was developed entirely on a Participant's own time, unless (a) the Invention relates at the time of conception or reduction to practice (i) to the business of the Company, or (ii) to the Company's actual or demonstrably anticipated research or development, or (b) the Invention results from any work performed by the Participant for the Company, or any Inventions protected under California Labor Code 2870 or Minnesota Statutes 181.78, Otherwise, this Agreement assigns all Inventions not otherwise prohibited by law.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Return of Company Property</u>. Within ten (10) days following the date of any termination of the Participant's employment with the Company, the Participant or the Participant's personal representative shall return all property of the Company in the Participant's possession, including but not limited to all Company-owned computer equipment (hardware and software), telephones, facsimile machines, smart phones, cell phones, tablet computer and other communication devices, credit cards, office keys, security access cards, badges, identification cards and all copies (including drafts) of any documentation or information (however stored) relating to the Business, the Company's customers and clients or its prospective customers and clients. Anything to the contrary notwithstanding, the Participant shall be entitled to retain (i) personal papers and other materials of a personal nature, provided that such papers or materials do not include Confidential Information, (ii) information showing the Participant's compensation or relating to reimbursement of expenses, and (iii) copies of plans, programs and agreements relating to the Participant's employment, or termination thereof, with the Company which the Participant received in the Participant's capacity as an employee participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Resignation as an Officer and Director</u>. Upon any termination of the Participant's employment, the Participant shall be deemed to have resigned, to the extent applicable as an officer of the Company, a member of the board of directors or similar body of any of the Company's Affiliates and as a fiduciary of any Company benefit plan. On or immediately following the date of any termination of the Participant's employment, the Participant shall confirm the foregoing by submitting to the Company in writing a confirmation of the Participant's resignation(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Cooperation</u>. During and following the Participant's period of employment, the Participant shall give the Participant's assistance and cooperation willingly, upon reasonable advance notice (which shall include due regard to the extent reasonably feasible for the Participant's employment obligations and prior commitments), in any matter relating to the Participant's position with the Company, or the Participant's knowledge as a result thereof as the Company may reasonably request, including the Participant's attendance and truthful testimony where deemed appropriate by the Company, with respect to any investigation or the Company's defense or prosecution of any existing or future claims or litigations or other proceeding relating to matters in which the Participant was involved or had knowledge by virtue of the Participant's employment with the Company. The Company will reimburse the Participant for reasonable out-of-pocket travel costs and expenses incurred by the Participant (in accordance with Company policy) as a result of providing such assistance, upon the submission of the appropriate documentation to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Disparagement</u>. During the Participant's employment with the Company and at any time thereafter, the Participant agrees not to disparage or encourage or induce others to disparage the Company, any of its respective employees that were employed during the

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>APPENDIX B</u>**

Participant's employment with the Company or any of its respective past and present, officers, directors, products or services (the "**Company Parties**"). For purposes of this <u>Appendix B</u> <u>Section 1.7,</u> the term "**disparage**" includes, without limitation, comments or statements to the press, to the Company's employees or to any individual or entity with whom the Company has a business relationship (including, without limitation, any vendor, supplier, customer or distributor), or any public statement, that in each case is intended to, or can be reasonably expected to, materially damage any of the Company Parties. Notwithstanding the foregoing, nothing in this <u>Appendix B</u> <u>Section 1.7</u> shall prevent the Participant from making any truthful statement to the extent, but only to the extent (A) necessary with respect to any litigation, arbitration or mediation involving this <u>Appendix B</u>, including, but not limited to, the enforcement of this <u>Appendix B</u>, in the forum in which such litigation, arbitration or mediation properly takes place or (B) required by law, legal process or by any court, arbitrator, mediator or administrative or legislative body (including any committee thereof) with apparent jurisdiction over the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Tolling</u>. In the event of any violation of the provisions of this <u>Appendix B</u> <u>Section 1</u>, the Participant acknowledges and agrees that the post-termination restrictions contained in this <u>Appendix B</u> <u>Section 1</u> shall be extended by a period of time equal to the period of such violation, it being the intention of the Company and the Participant that the running of the applicable post-termination restriction period shall be tolled during any period of such violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Survival of Covenants</u>. The provisions of this Appendix B shall survive the termination of the Participant's employment or the Plan for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Arbitration</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>APPENDIX B</u>**

right that they may have to resolve any disputes, claims, or controversies through any other means, including a jury trial or bench trial.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The arbitration shall be conducted by a panel of three (3) arbitrators in accordance with the Employment Arbitration Rules of the American Arbitration Association ("**AAA**") except as provided in this Agreement. Within twenty (20) days after notice from one party to the other of the notifying party's election to arbitrate, each party shall select one (1) arbitrator. Within twenty (20) days after the selection of the two (2) arbitrators by the parties, said arbitrators shall in turn select a third arbitrator. If the two (2) arbitrators cannot agree upon the selection of a third arbitrator, the parties agree that the third arbitrator shall be appointed by the AAA in accordance with AAA's arbitrator selection procedures, including the provision of a list of potential arbitrators to both parties. Each member of the panel shall be a lawyer admitted to practice law for a minimum of fifteen (15) years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Participant and the Company waive their right to file any arbitration on a class or collective basis; both Participant and the Company agree to file any arbitration only on an individual basis and agree not to file any arbitration as a representative of any class or group of others. Therefore, neither Participant nor the Company will seek to certify a class or collective arbitration or otherwise seek to proceed in arbitration on a representative basis, and the arbitrators shall have no authority to conduct a proceeding as a class or collective action or to award any relief to a class of employees. Nor shall Participant or the Company participate in any class or collective action involving claims covered by this Agreement, but instead shall arbitrate all claims covered by this Agreement on an individual basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The arbitration panel shall have authority to award any remedy or relief that an Ohio or federal court in Ohio could grant in conformity with applicable law on the basis of the claims actually made in the arbitration and within the scope of this Section 1.10. The arbitration panel shall not have the authority either to abridge or change substantive rights available under existing law. Notwithstanding the above, any remedy for an alleged breach of the Agreement, wrongful discharge, or constructive discharge, or claims related to compensation and benefits will be governed solely by the applicable provisions of this Agreement, with no right to compensatory, punitive, or equitable relief (except as provided in <u>Section K</u> of the Plan regarding Claim Administration Matters or as provided in <u>Section 1.10(h)</u> of this <u>Appendix B</u>). Further notwithstanding the foregoing, given the nature of Participant's position with the Company, the arbitrator shall not have the authority to order reinstatement, and Participant waives any right to reinstatement to the full extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The arbitrator may award attorneys' fees and costs to the extent authorized by statute. The arbitration panel shall issue a written award listing the issues submitted by the parties, together with a succinct explanation of the manner in which the panel resolved the issues. The costs of the arbitration panel shall be borne by the parties in accordance with the Employment Arbitration Rules of the AAA.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>APPENDIX B</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)All arbitration proceedings, including the arbitration panel's decision and award, shall be confidential. Neither party shall disclose any information or evidence adduced by the other in the arbitration proceedings, or the panel's award except (i) to the extent that the parties agree otherwise in writing; (ii) as necessary in any subsequent proceedings between the parties, such as to enforce the arbitration award; or (iii) as otherwise compelled by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)The terms of this arbitration Agreement are severable. The invalidity or unenforceability of any provisions herein shall not affect the application of any other provisions. This Agreement to arbitrate shall be governed by the Federal Arbitration Act. The claims, disputes, and controversies submitted to arbitration will be governed by Ohio law and applicable federal law. The arbitrators shall have exclusive jurisdiction to decide questions regarding the interpretation and enforceability of this Agreement to arbitrate, including but not limited to questions of whether the parties have agreed to arbitrate a particular claim, whether a binding contract to arbitrate has been entered into, and whether the Agreement to arbitrate is unconscionable or otherwise unenforceable; *provided however,* that it is agreed that the arbitrators shall have no authority to decide any questions as to whether the waiver of class and collective actions is valid or enforceable and all questions of the validity or enforceability of the waiver shall be decided by a court, not the arbitrators, and the court shall stay any arbitration that purports to proceed as a class or collective action or where the claimant in the arbitration seeks to otherwise act in a representative capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)The parties agree and acknowledge that the promises and agreements set forth in <u>Sections 1.1 (Confidentiality)</u> and <u>1.2 (Non-Competition)</u> of this Agreement shall not be subject to the arbitration provisions set forth in this <u>Section 1.10,</u> but rather such claims shall be litigated exclusively in any federal or state court of competent jurisdiction over Sandusky, Ohio. This Agreement to arbitrate does not apply to claims arising under federal statutes that prohibit pre-dispute arbitration agreements. **This Agreement to arbitrate does not preclude Participant from filing a claim or charge with a governmental administrative agency, such as the National Labor Relations Board, the Department of Labor, and the Equal Employment Opportunity Commission, or from filing a workers' compensation or unemployment compensation claim in a statutorily-specified forum.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Nothing in this Agreement prohibits or restricts the Participant (or Participant's attorney) from filing a charge or complaint with the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), or any other securities regulatory agency or self-regulatory authority. The Employee further understands that this Agreement does not limit the Employee's ability to communicate with any securities regulatory agency or authority or otherwise participate in any investigation or proceeding that may be conducted by any securities regulatory agency or authority in connection with reporting a possible securities law violation without notice to the Employer. This Agreement does not limit the Employee's right to receive an award for information provided to the SEC staff or any other securities regulatory agency or authority.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>APPENDIX B</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Remedies; Scope</u>. It is specifically understood and agreed that any breach of the provisions of this <u>Appendix B</u> is likely to result in irreparable injury to the Company and that the remedy at law alone will be an inadequate remedy for such breach, and that in addition to any other remedy it may have in the event of a breach or threatened breach of the provisions of this <u>Appendix B</u>, the Company shall be entitled to enforce the specific performance of these Restrictive Covenants by Participant and to seek both temporary and permanent injunctive relief (to the extent permitted by law) without bond and without liability should such relief be denied, modified or violated. Furthermore, in addition to the foregoing, the Company shall be entitled to the remedies and relief set forth in Section F of the Plan in the event of any breach of the provisions of <u>Section 1.2</u> of this <u>Appendix B</u> or a material and willful breach of any other provision of these Restrictive Covenants or the other events described in the Plan. Participant acknowledges and agrees that Participant has received a copy of, and has reviewed, the Plan itself.

Participant has carefully considered the nature and extent of the restrictions upon Participant and the rights and remedies conferred upon the Company under this <u>Appendix B</u> and the Plan, and hereby acknowledges and agrees that the same are reasonable and necessary in time and territory, are intended to eliminate competition which otherwise would be unfair to the Company, do not stifle the inherent skill and experience of Participant, would not operate as a bar to Participant's sole means of support, are fully required to protect the business interests of the Company, and do not confer a benefit upon the Company disproportionate to the detriment to Participant.

[*Remainder of Page Intentionally Left Blank*]

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>APPENDIX B</u>**

**IN WITNESS WHEREOF**, the Parties have executed this Agreement as of the Effective Date above.

---

| |
|:---|
| **For the Company** |
| By__________________________________<br>Name: ______________________________<br>Title:________________________________ |
| <br>**By the Participant** |
| Signature:____________________________<br>Print Name: __________________________ |

---

## Exhibit 10.32

**Exhibit 10.32**

November 8th, 2021

Brian Nurse

Dear Brian:

The purpose of this letter is to confirm our offer to you as Executive Vice President, Chief Legal Officer and Secretary, reporting to Cedar Fair's President and CEO (Richard Zimmerman), effective November 15th, 2021. Your biweekly salary will be $16,346.15 ($425,000 annually) and you will be eligible for a review at the end of 2022.

In this new role, you will participate in the Company's Executive Compensation Program. This program has two components: a cash-based Short Term Incentive Plan with a target annual bonus opportunity of 100% of your base salary (your participation would start in 2022), and an equity-based Long Term Incentive Plan (LTIP) with a target annual value at grant of 125% of your base salary. For 2021, you will receive LTIP awards having a target value at grant of $451,350 (which reflects a prorate of 85% for 2021), 60% of which will be in the form of performance units based on previously established performance goals, and 40% of which will be in the form of time-based restricted units.

You will be provided with four weeks of vacation and all aspects of the vacation policy will apply.

Cedar Fair's Executive Compensation Program is reviewed by the Board of Directors each year and is therefore subject to change from time to time. Awards under the LTIP will be made in accordance with the timetable established by the Cedar Fair Board of Directors. The terms and conditions of the Executive Compensation Program and all related incentives are subject to the terms of the board approved plan document and any amendments, replacements, or other modifications subsequently made by Cedar Fair. Your participation in all incentive plans, as well as the calculation and receipt of incentive payments, is at the sole discretion of Cedar Fair.

Cedar Fair will also provide you with a new hire grant of 10,000 Cedar Fair units. The value of this retention grant will be based on the closing unit price on the last business day immediately before your start date and will cliff vest fully on February 24th, 2025, subject to your continuous employment with Cedar Fair through that date. Your eligibility for this equity grant and all terms and conditions of this grant will be governed by the terms of Cedar Fair's typical award agreement.

Although your employment with Cedar Fair is "at will," (as explained further in the Cedar Fair Corporate Associate Guidelines that will be issued on or before your start date), you will be eligible to participate in a severance plan (the "Severance Plan"), that will make you eligible for certain severance benefits if your employment is terminated in qualifying circumstances, subject to the terms of the Severance Plan. The Severance Plan will be reviewed from time to time and may be amended or terminated by the Board subject to certain limitations in the plan.

Cedar Fair supports a drug free environment and performs substance abuse testing. Your continued employment may be contingent on passing a test for drugs, alcohol, and other controlled substances. Additionally, your employment is contingent upon your ability to perform the essential functions of this job, with or without accommodations. These matters and other terms and conditions of your employment are subject to Cedar Fair's Corporate Associate Guidelines and other written policies and procedures.

This letter supersedes any oral or written representations regarding job security, benefits or termination that may have previously been made by a representative of Cedar Fair.

Any modification to this offer must be made in writing and signed by the President and CEO of Cedar Fair L.P.

Brian, on behalf of Cedar Fair, I'd like to congratulate you on this exciting opportunity, and I wish you great success in your new role.

Sincerely,

---

| | |
|:---|:---|
| /s/ Richard Zimmerman | |
| Richard Zimmerman | |
| President and CEO, Cedar Fair | |
| Accepted and Agreed: | /s/ Brian Nurse |
| | Brian Nurse |

---

cc: Craig Heckman

## Exhibit 10.33

**Exhibit 10.33**

**CEDAR FAIR, L.P. 2016 OMNIBUS INCENTIVE PLAN**

**<u>DEFERRED UNIT AWARD AGREEMENT</u>**

This Deferred Unit Award Agreement ("**Agreement**") is made pursuant to the terms and conditions of the Cedar Fair, L.P. 2016 Omnibus Incentive Plan (the "**Plan**"), including (without limitation) Article X, the provisions of which are incorporated into this Agreement by reference. Capitalized terms used herein shall have the meanings ascribed to them in the Plan, unless indicated otherwise.

---

| | |
|:---|:---|
| **Participant Name:** | |
| **Grant Date:** | |
| **Number of Deferred Units Awarded:** | Per Section 1 Below |
| **Vesting Schedule:** | Vesting will occur upon termination as a member of the Board of Directors of Cedar Fair Management, Inc. ("CFMI") |
| **Payment Date:** | Payable upon termination as a member of the Board of Directors of Cedar Fair Management, Inc. ("Board") |

---

**1. <u>Deferred Unit Award In General</u>**. The number of Deferred Units awarded to Participant is equal to the following: ____________ Dollars ($_______) ("Cash Value") divided by the New York Stock Exchange ("NYSE") closing price of a Unit on the last full trading day in 20__ ("Determination Date"). Upon the determination of the number of Deferred Units attributable to Participant's Award, the Deferred Units shall thereafter accrue Unit distribution equivalents (based upon actual distributions to owners of Units), if any, which shall be accumulated and credited to the Award until payment is made in accordance with Section 3 hereof. In the event that Participant's Board service is terminated prior to the Determination Date the total number of Deferred Units shall be a pro rata share of the Cash Value (determined by multiplying the Cash Value by a fraction, the numerator of which is the number of days during the calendar year of termination that Participant serves on the Board and the denominator of which is 365) divided by the NYSE closing price for a Unit on the last full trading day prior to Participant's termination of service on the Board.

As used herein, the term "Deferred Units" means an equity-based Award measured in Units, with each Deferred Unit measured on the basis of one (1) Unit, that is subject to Section 409A and payable in Units or in a combination of cash and Units as provided in Section 3 below.

**2. <u>Vesting Schedule</u>**. The Award will vest on the date that the Participant ceases to be a director of CFMI.

**3. <u>Payment Dates</u>**. Within five (5) business days of the date that the Participant ceases to be a director of CFMI, the Award, plus all Unit distribution equivalents accumulated and credited to the Award to the time of the distribution, shall be paid, as elected by the Participant, in a lump sum in Units or a combination of cash (measured using the Fair Market Value of the Units on the vesting date) and Units.

------

IN WITNESS WHEREOF, Cedar Fair, L.P. has caused this Agreement to be executed by its duly authorized officer, and the Participant has executed this Agreement in acceptance thereof.

**CEDAR FAIR, L.P.**<br>By: ______________________________________________<br>Title: _____________________________________________<br>

**PARTICIPANT**<br>Signature: _________________________________________<br>Printed Name: ______________________________________<br>Address: ___________________________________________<br>___________________________________________________<br>

&nbsp;&nbsp;&nbsp;&nbsp;

## Ex-21

**Exhibit 21**

**SUBSIDIARIES OF THE REGISTRANT**

**(As of December 31, 2022)**

---

| | |
|:---|:---|
| **Name** | **Jurisdiction of Organization** |
| Millennium Operations LLC | Delaware |
| Magnum Management Corporation | Ohio |
| Cedar Fair Southwest Inc. | Delaware |
| Michigan's Adventure, Inc. | Michigan |
| Kings Island Company | Delaware |
| Wonderland Company Inc. | Delaware |
| Canada's Wonderland Company | Canada (Nova Scotia) |
| Cedar Point Park LLC | Delaware |
| Valleyfair LLC | Delaware |
| Worlds of Fun LLC | Delaware |
| Dorney Park LLC | Delaware |
| Knott's Berry Farm LLC | Delaware |
| Carowinds LLC | Delaware |
| Kings Dominion LLC | Delaware |
| Michigan's Adventure Park LLC | Delaware |
| Kings Island Park LLC | Delaware |
| Geauga Lake LLC | Delaware |
| California's Great America LLC | Delaware |
| New Braunfels Waterpark LLC | Delaware |
| Galveston Waterpark LLC | Delaware |
| Cedar Point Sports Park LLC | Delaware |
| Sawmill Creek LLC | Delaware |

---

## Ex-23

**Exhibit 23**

**<u>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</u>**

We consent to the incorporation by reference in Registration Statement Nos. 333-214245 and 333-152818 on Form S-8 of our report dated February 17, 2023, relating to the financial statements of Cedar Fair, L.P. and the effectiveness of Cedar Fair, L.P.'s internal control over financial reporting appearing in this Annual Report on Form 10-K for the year ended December 31, 2022.

***/s/ DELOITTE & TOUCHE LLP***

Cleveland, Ohio

February 17, 2023

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION** 

I, Richard A. Zimmerman, certify that:

1)I have reviewed this annual report on Form 10-K of Cedar Fair, L.P.;

2)Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3)Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4)The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5)The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | February 17, 2023 | /s/ Richard A. Zimmerman |
| | | Richard A. Zimmerman |
| | | President and Chief Executive Officer |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION** 

I, Brian C. Witherow, certify that:

1)I have reviewed this annual report on Form 10-K of Cedar Fair, L.P.;

2)Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3)Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4)The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5)The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | February 17, 2023 | /s/ Brian C. Witherow |
| | | Brian C. Witherow |
| | | Executive Vice President and Chief Financial Officer |

---

## Ex-32

**Exhibit 32**

**CERTIFICATIONS PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED** 

**PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002** 

In connection with the Annual Report of Cedar Fair, L.P. (the "Partnership") on Form 10-K for the period ending December 31, 2022, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), each of the undersigned officers of the Partnership certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to our knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

February 17, 2023

---

| |
|:---|
| /s/ Richard A. Zimmerman |
| Richard A. Zimmerman |
| President and Chief Executive Officer |
| /s/ Brian C. Witherow |
| Brian C. Witherow |
| Executive Vice President and Chief Financial Officer |

---

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

<br>