Document:

Asset Purchase Agreement

 Exhibit 10.1 
  
 ASSET PURCHASE AGREEMENT 
  
 BETWEEN 
  
 CYPRESS BOWL RECREATIONS LIMITED PARTNERSHIP, a limited partnership formed 
 under the
laws of the Province of British Columbia 
  
 AND 
  
 GATLINBURG SKYLIFT, LLC, a Michigan limited liability corporation 

 
 AS SELLERS 
  
 AND 
  
 CNL INCOME PARTNERS, LP, 
  
 a Delaware limited partnership 
  
 AS PURCHASER 
  
 DATED AS OF DECEMBER 22, 2005 

 TABLE OF CONTENTS 
  

							
	 	 	 	  	 	  	Page

	1.	 	DEFINITIONS	  	1
				
	 	 	1.1	  	Definitions.	  	1
			
	2.	 	PURCHASE AND SALE, ASSETS AND LIABILITIES	  	10
				
	 	 	2.1.	  	Purchase and Sale.	  	10
				
	 	 	2.2.	  	Description of the Assets.	  	10
				
	 	 	2.3.	  	Excluded Assets.	  	12
				
	 	 	2.4.	  	Retained Liabilities.	  	13
			
	3.	 	PURCHASE PRICE	  	14
				
	 	 	3.1.	  	Purchase Price.	  	14
				
	 	 	3.2.	  	Payment of Purchase Price.	  	14
				
	 	 	3.3.	  	Allocation of Purchase Price.	  	14
				
	 	 	3.4.	  	Goods and Services and Social Service Tax.	  	14
			
	4.	 	DUE DILIGENCE AND INSPECTION	  	15
				
	 	 	4.1.	  	Right to Inspect.	  	15
				
	 	 	4.2.	  	Matters Relating to Title.	  	15
				
	 	 	4.3.	  	Equipment Leases.	  	17
				
	 	 	4.4.	  	Contracts Requiring Consent.	  	17
				
	 	 	4.5.	  	Tangible Personal Property Review.	  	18
				
	 	 	4.6.	  	Audited Financial Statements and Appraisals.	  	18
				
	 	 	4.7.	  	Release and Indemnification.	  	18
			
	5.	 	REPRESENTATIONS AND WARRANTIES	  	18
				
	 	 	5.1.	  	The Seller’s Representations and Warranties.	  	18
				
	 	 	5.2.	  	The Purchaser’s Representations and Warranties.	  	24

  

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	6.	 	COVENANTS	 	26
				
	 	 	6.1.	  	Confidentiality.	 	26
				
	 	 	6.2.	  	Compliance With Applicable Laws.	 	27
				
	 	 	6.3.	  	Conduct of the Business.	 	27
				
	 	 	6.4.	  	Consents and Approvals.	 	29
				
	 	 	6.5.	  	Notices and Filings.	 	29
				
	 	 	6.6.	  	Further Assurances.	 	29
				
	 	 	6.7.	  	Exclusivity.	 	29
				
	 	 	6.8.	  	Bulk Sales.	 	29
				
	 	 	6.9.	  	Use of Name.	 	30
				
	 	 	6.10.	  	 Patriot Act.
	 	30
				
	 	 	6.11.	  	 Disclosure.
	 	30
			
	7.	 	CLOSING CONDITIONS	 	30
				
	 	 	7.1.	  	Mutual Conditions of Closing.	 	30
				
	 	 	7.2.	  	Failure of any Mutual Closing Conditions.	 	31
				
	 	 	7.3.	  	Purchaser’s Closing Conditions.	 	31
				
	 	 	7.4.	  	Failure of Any Purchaser’s Closing Condition.	 	32
				
	 	 	7.5.	  	Seller’s Closing Conditions.	 	32
				
	 	 	7.6.	  	Failure of the Seller’s Closing Conditions.	 	33
			
	8.	 	SKYLIFT CLOSING AND CLOSING	 	33
				
	 	 	8.1.	  	Closing Date.	 	33
				
	 	 	8.2.	  	Closing Escrow.	 	34
				
	 	 	8.3.	  	Seller’s Skylift Closing Deliveries.	 	34
				
	 	 	8.4.	  	Seller's Closing Deliveries.	 	36
				
	 	 	8.5.	  	Purchaser’s Deliveries.	 	39

  

 - ii - 

							
				
	 	 	8.6.	  	Possession.	 	40
			
	9.	 	PRORATIONS AND EXPENSES	 	40
				
	 	 	9.1.	  	Closing Statement.	 	40
				
	 	 	9.2.	  	No Prorations.	 	40
				
	 	 	9.3.	  	Prepaid Ski Passes.	 	40
				
	 	 	9.4.	  	Cash and Utility Deposits.	 	40
				
	 	 	9.5.	  	Purchaser’s Transaction Costs.	 	41
				
	 	 	9.6.	  	Sellers’ Transaction Costs.	 	41
			
	10.	 	DEFAULT AND REMEDIES	 	41
				
	 	 	10.1.	  	 A Seller’s Default.
	 	41
				
	 	 	10.2.	  	 Purchaser’s Default.
	 	42
				
	 	 	10.3.	  	 No Punitive or Consequential Damages.
	 	42
			
	11.	 	FIRE OR OTHER CASUALTY; CONDEMNATION	 	42
				
	 	 	11.1.	  	 Notice.
	 	42
				
	 	 	11.2.	  	 Material Casualty or Condemnation.
	 	42
				
	 	 	11.3.	  	 Non-material Casualty or Condemnation.
	 	43
				
	 	 	11.4.	  	 Risk Of Loss.
	 	43
			
	12.	 	SURVIVAL, INDEMNIFICATION AND RELEASE	 	43
				
	 	 	12.1.	  	 Survival.
	 	43
				
	 	 	12.2.	  	 Indemnification by each of the Sellers.
	 	43
				
	 	 	12.3.	  	 Indemnification by Purchaser.
	 	44
				
	 	 	12.4.	  	 Indemnification Procedure.
	 	44
				
	 	 	12.5.	  	 Limitation on Claim.
	 	45
				
	 	 	12.6.	  	 Exclusive Remedy for Indemnification Loss.
	 	45
				
	 	 	12.7.	  	 Arbitration.
	 	46

  

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	13.	 	MISCELLANEOUS PROVISIONS	 	47
				
	 	 	13.1.	  	 Notices.
	 	47
				
	 	 	13.2.	  	 Time is of the Essence.
	 	48
				
	 	 	13.3.	  	 Assignment.
	 	48
				
	 	 	13.4.	  	 Successors and Assigns.
	 	49
				
	 	 	13.5.	  	 Third Party Beneficiaries.
	 	49
				
	 	 	13.6.	  	 Rules of Construction.
	 	49
				
	 	 	13.7.	  	 Severability.
	 	49
				
	 	 	13.8.	  	 Jurisdiction and Venue.
	 	50
				
	 	 	13.9.	  	 Waiver of Trial by Jury.
	 	50
				
	 	 	13.10.	  	 Prevailing Party.
	 	50
				
	 	 	13.11.	  	 Incorporation of Recitals, Exhibits and Schedules.
	 	50
				
	 	 	13.12.	  	 Updates of Schedules.
	 	50
				
	 	 	13.13.	  	 Entire Agreement.
	 	51
				
	 	 	13.14.	  	 Amendments, Waivers and Termination of Agreement.
	 	51
				
	 	 	13.15.	  	 Tax Disclosures.
	 	51
				
	 	 	13.16.	  	 Joinder by Boyne.
	 	51
				
	 	 	13.17.	  	 Multiple Purchasers.
	 	52
				
	 	 	13.18.	  	 Execution of Agreement.
	 	52

  

 - iv - 

 LIST OF EXHIBITS AND SCHEDULES TO DISCLOSURE DOCUMENT 
  
 List of Exhibits 
  

			
		
	Exhibit “A”	  	Cypress Permit
		
	Exhibit “B”	  	Skylift Lease
		
	Exhibit “C”	  	Skylift Waiver
		
	Exhibit “D”	  	Form of Cypress Consent
		
	Exhibit “E”	  	VANOC Letter Form
		
	Exhibit “F”	  	Form of Buyback Option Agreement

  

 - v - 

 List of Schedules 
  

			
		
	Schedule 1.1A	  	Environmental Reports
		
	Schedule 2.2.4	  	Tangible Personal Property
		
	Schedule 2.2.6(iv)	  	Trademarks
		
	Schedule 2.3.2	  	Retained Business Assets
		
	Schedule 3.3	  	Purchase Price Allocation
		
	Schedule 4.2.2	  	Permitted Encumbrances
		
	Schedule 4.3	  	Equipment Leases
		
	Schedule 5.1.7	  	Litigation
		
	Schedule 5.1.9	  	Tax Audits and Delinquencies
		
	Schedule 5.1.10	  	Licenses and Permits
		
	Schedule 5.1.13	  	Contracts

  

 - vi - 

 ASSET PURCHASE AGREEMENT 
  
 THIS ASSET PURCHASE AGREEMENT is made as of December 22, 2005 (the “Effective Date”), by and between
CYPRESS BOWL RECREATIONS LIMITED PARTNERSHIP, a limited partnership formed under the laws of the Province of British Columbia (“CBRLP”), GATLINBURG SKYLIFT, LLC a Michigan limited liability corporation
(“Skylift”) (each individually a “Seller” and collectively and jointly and severally, the “Sellers”), and CNL INCOME PARTNERS, LP, a Delaware limited partnership (“Purchaser”
or “CNL”). 
  
 RECITALS 
  
 A. CBRLP is the permittee under the “Cypress Permit” (as defined
hereinafter) pursuant to which CBRLP possesses certain rights to use and occupy portions of the Cypress Provincial Park in the province of British Columbia for the operation of facilities for skiing, lodging, recreation, and food and beverage
service. 
  
 B. Skylift is the current lessee under the
“Skylift Lease” (as defined hereinafter) pursuant to which Skylift possesses a leasehold estate, and easements to use certain lands situated on Crockett Mountain, in Gatlinburg Tennessee, allowing Skylift the right build and operate a
chair-lift and other facilities necessary, useful or convenient for the enjoyment of the chair-lift. 
  
 C. CBRLP and Skylift own various improvements and personal property which support and/or are complementary to the businesses operated by CBRLP and Skylift
at Cypress Provincial Park and Gatlinburg, respectively. 
  
 AGREEMENT 
  
 In consideration of the mutual
covenants and provisions contained in this Agreement, Seller and Purchaser agree as follows: 
  
 1. DEFINITIONS 
  
 1.1.
Definitions. 
  
 The following terms will have the
following meanings in this Agreement: 
  
 “Affiliate” has the following meaning: two entities are “Affiliates” if (i) one of the entities is a Subsidiary of the other entity; (ii) both of the entities are Subsidiaries of the same Person or
entity; or (iii) both of the entities are Controlled by the same Person or entity. 
  
 “Agreement” means this agreement with all schedules attached hereto, as each may be amended in accordance with the terms hereof. 
  
 “Applicable Laws” means (i) all statutes, laws, common law, by-laws, rules, regulations, ordinances,
codes or other legal requirements of any Governmental Authority, stock exchange, board of fire underwriters and similar quasi-governmental authority, and (ii) any judgment, 
  

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 injunction, order or other similar requirement of any court or other adjudicatory authority, in effect at the time in
question and in each case to the extent the Person or property in question is subject to the same. 
  
 “Assets” means the Cypress Assets and the Skylift Assets, all as more particularly described in Section 2.2. 
  
 “Bankruptcy Code” has the meaning set forth in
Section 5.1.14. 
  
 “Books and
Records” has the meaning set forth in Section 2.2.6(v). 
  
 “Boyne” means Boyne USA, Inc., a Michigan corporation, its successors and permitted assigns. 
  
 “Businesses” means collectively all of the Cypress Businesses and Skylift Businesses. 
  
 “Business Day” means any day other than a Saturday, Sunday
or any statutory or federal legal holiday in any of the Province of British Columbia (including any federal holiday), the State of Tennessee, or any federal holiday in the United States. 
  
 “CBRLP” means Cypress Bowl Recreations Limited Partnership, a limited partnership organized under the laws
of the Province of British Columbia, its successors and permitted assigns. 
  
 “Closing” has the meaning set forth in Article 8. 
  
 “Closing Date” has the meaning set forth in Section 8.1. 
  
 “Closing Escrow” has the meaning set forth in Section 8.2. 
  
 “Closing Escrow Agreement” has the meaning set forth in
Section 8.2. 
  
 “Closing Statement”
has the meaning set forth in Section 9.1. 
  
 “Code” means the Internal Revenue Code of 1986, as amended from time to time, and any regulations, rulings and guidance issued by the Internal Revenue Service. 
  
 “Condemnation” has the meaning set forth in Article 11. 
  
 “Contracts” has the meaning set forth in
Section 2.2.6(i). 
  
 “Control”
means: 
  
 A. the right to exercise, directly or indirectly, a
majority of the votes which may be voted at a meeting of (i) the shareholders of the corporation, in the case of a corporation, (ii) the shareholders of the general partner, in the case of a limited partnership, or (iii) the equity
holders or other voting participants of a Person that is not a corporation or limited partnership; or 
  

 2 

 B. the right to elect or appoint, directly or indirectly, a majority of (i) the directors of the
corporation, in the case of a corporation, (ii) the directors of the general partner, in the case of a limited partnership, or (iii) a majority of the Persons who have the right to manage or supervise the management of the affairs and
business of a Person that is not a corporation or limited partnership, 
  
 and “Controlled” has a corresponding meaning. 
  
 “Cypress Assets” means all of the Assets of CBRLP or any CBRLP Affiliate which are located on the Cypress Premises, or which are affiliated with, or used in connection to the Cypress Businesses or the Cypress Premises.

  
 “Cypress Businesses” means all businesses
currently being conducted by CBRLP, or its assigns, sublessees, agents, permittees, licensees, contractors or Affiliates within, at or in connection with, the Cypress Premises, including, without limitation, (i) alpine ski area services,
(ii) nordic ski area services (iii) restaurants, lounges and retail, (iv) ski instruction, (v) chair lift services; (vi) bike park services; and (vii) all services and amenities being operated in support of, or in
conjunction with, such businesses. 
  
 “Cypress
Permit” means Park Use Permit 1506, dated September 13, 1984, as amended by amendments dated February 20, 2001 and October 1, 2001, issued by Her Majesty the Queen in Right of the Province of British Columbia (the
“Province”) to CBRLP, a complete description of which permit (including all amendments and agreements modifying or supplementing such permit), is attached hereto as Exhibit “A”. 
  
 “Cypress Permit Assignment” means that assignment document
pursuant to which the Cypress Permit will be assigned by CBRLP to the Purchaser as set forth in Section 8.3.5. 
  
 “Cypress Premises” means all of those Lands to which CBRLP has been granted rights of use pursuant to the Cypress Permit including,
without limitation, the Controlled Recreation Area and those portions thereof referred to as the Alpine Ski Area, the Nordic Ski Area, the Parking Facilities, and the Maintenance Areas, as well as the Surrounding Lands, as described therein.

  
 “Deed” means the warranty deed to be
delivered by Skylift to the Purchaser pursuant to Section 8.3.2. 
  
 “Deposit” has the meaning set forth in Section 3.2.1; 
  
 “Disclosure Document” means that certain Disclosure Schedule of Exhibits and Schedules executed and delivered concurrently herewith, and
references to Schedules or Exhibits in this Agreement means and refers to those Exhibits and Schedules that are attached to the Disclosure Document. 
  
 “Employees” means, at the time in question all persons employed full-time and part-time at the Real Property 
  
 “Encumbrance” means any mortgage, charge, trust, lien
(including claims for liens or certificates of action registered or recorded pursuant to the relevant construction lien legislation), 
  

 3 

 assignment, pledge, charge, lease, security interest, restriction, claim, demand, easement, encroachment, leasehold
estate, defect, license, encumbrance, right to use or acquire, ownership interest, action or other claims, interests or encumbrance of any nature whatsoever. 
  
 “Environmental Laws” means any Applicable Laws which regulate or affect the manufacture, generation, formulation, processing, use,
treatment, handling, storage, disposal, distribution or transportation, or an actual or potential spill, leak, emission, discharge or release of any Hazardous Substances, pollution, contamination or radiation into any water, soil, sediment, air or
other environmental media, including, without limitation, in Tennessee (i) the Comprehensive Environmental Response, Compensation and Liability Act, (ii) the Resource Conservation and Recovery Act, (iii) the Federal Water Pollution
Control Act, (iv) the Toxic Substances Control Act, (v) the Clean Water Act, (vi) the Clean Air Act, and (vii) the Hazardous Materials Transportation Act, and including, without limitation, in British Columbia (i) the Canada
Environmental Assessment Act (Canada), (ii) the Canadian Environmental Protection Act (Canada), (iii) the Fisheries Act (Canada), (iv) the Transportation of Dangerous Goods Act (Canada), (v) the Waste Management Act (British
Columbia), and (vi) the Contaminated Sites Regulation (British Columbia), and similar federal, state, provincial, regional and/or local laws, as amended as of the time in question. 
  
 “Environmental Reports” means those certain environmental reports obtained in connection with the Cypress
Premises or otherwise in connection with the transactions contemplated herein with respect to certain portions of the Real Property or Premises to the extent specifically identified in Schedule 1.1A hereto. 
  
 “ERISA” means the Employee Retirement Income Security Act,
as amended from time to time and any regulations, ratings and guidance issued pursuant thereto. 
  
 “Escrow Agent” means LandAmerica Title Services or such other escrow agent as is mutually acceptable to the Seller and the Purchaser.

  
 “Excluded Assets” has the meaning set forth
in Section 2.3. 
  
 “General
Conveyance” means the General Conveyance documents to be delivered by the Sellers to Purchaser pursuant to Section 8.3.4. 
  
 “Governmental Authority” means any federal, state, provincial, regional or local government or other political subdivision thereof,
including, without limitation, any Person exercising executive, legislative, judicial, regulatory or administrative governmental powers or functions, in each case to the extent the same has jurisdiction over the Person or property in question.

  
 “GST” means goods and services tax payable
pursuant to the Excise Tax Act (Canada). 
  
 “Guaranty
Agreement” means the guaranty agreement in the form executed by Boyne USA, Inc. in favor of the Purchaser of the Skylift Assets, and an Indemnity Agreement to be executed by Boyne USA, Inc. in favor of the Purchaser of the Cypress Assets.

  

 4 

 “Hazardous Substances” means any hazardous or toxic substances, chemicals, materials or
waste, whether in solid, semisolid, liquid or gaseous form, including, without limitation, asbestos, petroleum or petroleum by-products, polychlorinated biphenyls, mold or other biological contaminants that are regulated by any Environmental Laws or
which are otherwise dangerous to human health or safety. 
  
 “Improvements” has the meaning set forth in Section 2.2.2. 
  
 “Indemnification Claim” has the meaning set forth in Section 12.4.1. 
  
 “Indemnification Loss” means, with respect to any
Indemnitee, any Liability, including, without limitation, reasonable attorneys fees and expenses and court costs, incurred by such Indemnitee as a result of the act, omission or occurrence in question. 
  
 “Indemnitee” has the meaning set forth in
Section 12.4.1. 
  
 “Indemnitor” has
the meaning set forth in Section 12.4.1. 
  
 “Inspections” means any inspections, examinations, tests, investigations, or studies of the Real Property or the Businesses conducted by or on behalf of the Purchaser (or any Affiliate thereof). 
  
 “Intangible Assets” has the meaning set forth in
Section 2.2.6. 
  
 “Lands” has the
meaning set forth in Section 2.2.1 of this Agreement. 
  
 “Liability” means any claim, liability, obligation, damage, loss, diminution in value, cost or expense of any kind or nature whatsoever, whether accrued or unaccrued, actual or contingent, known or unknown, foreseen or
unforeseen and “Liabilities” has a corresponding meaning. 
  
 “Licenses and Permits” has the meaning set forth in Section 2.2.6(iii). 
  
 “New Title Exception” has the meaning set forth in Section 4.2.4. 
  
 “Notice” has the meaning set forth in
Section 13.1.1. 
  
 “Ordinary Course of
Business” means the ordinary course of business consistent with a Seller’s past custom and practice for the Business, taking into account the facts and circumstances in existence from time to time. 
  
 “Party” or “Parties” has the meaning set
forth in the first paragraph of this Agreement. 
  
 “Permitted Encumbrance” means: 
  
 A.
undetermined or inchoate liens and charges incidental to current construction or current operations which have not been filed or registered in accordance with applicable law or of which written notice has not yet been duly given in accordance with
applicable law or that relate to an obligation not yet due or delinquent, which in each case shall remain obligations or liabilities of the Sellers; and 
  

 5 

 B. with respect to the Cypress Premises, any reservations, limitations, provisions or conditions
expressed in any original or other grant from the Crown; and 
  
 C. liens for Taxes, assessments or governmental charges or levies not at the time due and delinquent; and 
  
 D. as to the Cypress Premises usual endorsements on certificates of title in favor of Governmental Authorities which are not unique to the particular
registered owner and which relate to permitted use of fee simple lands, including, without limitation, drainage and dyking endorsements and charges granted by public utilities in respect of their interests in any lands provided that no such
endorsements or charges individually or as a whole materially adversely affect the Real Property or the Assets or materially impair their use in the Businesses as presently conducted by the Sellers; and 
  
 E. such registered Encumbrances in respect of operating leases of Tangible
Personal Property relating to the Businesses as set forth in Schedule 4.4; and 
  
 F. all those Permitted Encumbrance under Section 4.2.2. 
  
 “Person” means any natural person, firm, corporation, general or limited partnership, limited liability company, association, joint
venture, trust, estate, Governmental Authority or other legal entity, in each case whether in its own or a representative capacity. 
  
 “Plans and Specifications” has the meaning set forth in Section 2.2.6(vi). 
  
 “Post-Execution Disclosure” has the meaning set forth in
Section 13.12. 
  
 “PPSA” means the
Personal Property Security Act (British Columbia) as amended from time to time. 
  
 “Premises” means the collective real property parcels included within the Cypress Premises and the Skylift Premises. 
  
 “Property Condition Evaluations” means the property condition evaluations obtained by the Purchaser in
connection with the transaction contemplated herein with respect to certain of the Real Property. 
  
 “Purchase Price” has the meaning set forth in Section 3.1. 
  
 “Purchaser” means CNL Income Partners, LP, a Delaware limited partnership, its successors and permitted
assignees. 
  
 “Purchaser’s Closing
Deliveries” has the meaning set forth in Section 8.4. 
  

 6 

 “Purchaser’s Default” has the meaning set forth in Section 10.2.

  
 “Purchaser’s Documents” has the meaning
set forth in Section 5.2.2. 
  
 “Purchaser’s Due Diligence Reports” means all studies, reports and assessments prepared by any Person for or on behalf of the Purchaser (other than any internal studies, reports and assessments prepared by any of the
Purchaser’s employees, attorneys or accountants) in connection with the Inspections. 
  
 “Purchaser’s Indemnitees” means the Purchaser and its Affiliates, and each of their respective shareholders, members, partners, trustees, beneficiaries, directors, officers and employees, and the
successors, assigns, legal representatives, heirs and devisees of each of the foregoing. 
  
 “Purchaser’s Inspectors” means any Person that conducted any Inspections for or on behalf of the Purchaser or any Affiliate thereof. 
  
 “Real Property” means the leasehold estate, the easement interests, and the permit to use the Skylift
Premises and the Cypress Premises, as applicable, together with the Lands and the Improvements. 
  
 “Retained Business Assets” has the meaning set forth in Section 2.3.2. 
  
 “Retained Liabilities” has the meaning set forth in
Section 2.4. 
  
 “Seller” and
“Sellers” have the meaning set forth in the first paragraph of this Agreement. 
  
 “Seller’s Closing Deliveries” has the meaning set forth in Section 8.3. 
  
 “Seller’s Default” has the meaning set forth in
Section 10.1. 
  
 “Seller’s
Documents” has the meaning set forth in Section 5.1.2. 
  
 “Sellers’ Due Diligence Materials” means all documents and materials provided by the Sellers to the Purchaser, this Agreement or otherwise, together with any copies or reproductions of such
documents or materials, or any summaries, abstracts, compilations, or other analyses made by the Purchaser or any Purchaser representative or agent, based on the information in such documents or materials. 
  
 “Sellers’ Indemnitees” means the Seller, and each of
their respective shareholders, members, partners, trustees, beneficiaries, directors, officers and employees, and the successors, assigns, legal representatives, heirs and devisees of each of the foregoing. 
  
 “Sellers’ Knowledge” or similar expression, including
“best of Seller’s Knowledge”, means the actual knowledge of Maureen Collins and Bobby Swain as to the Cypress Assets, and Ed Grice, Ed Dembek, and Randy Watson as to the Skylift Premises, and Roland Andreeason and Steve Kircher with
respect to both Premises, without the requirement for independent verification and expressly excluding the knowledge of any other shareholder, partner, member, trustee, beneficiary, director, officer, manager, employee, agent or representative of
the Sellers or any of their Affiliates. 
  

 7 

 “Skylift” means Gatlinburg Skylift, LLC, a Michigan limited liability company, its
successors and permitted assigns. 
  
 “Skylift
Assets” means all of the Assets of Skylift or any Affiliate of Skylift which are located on the Skylift Premises, or affiliated with, or used in connection to the Skylift Leasehold Interest or Skylift Businesses. 
  
 “Skylift Businesses” means all businesses currently being
conducted by Seller, or its assigns, sublessees, agents, permittees, licensees, contractors or Affiliates within, at or in connection with, the Skylift Premises, including, without limitation, (i) a chair lift facility and (ii) all
services and amenities being operated in support or conjunction with the chair lift facility. 
  
 “Skylift Closing” means the closing of the acquisition of the Skylift Assets and related transactions. 
  
 “Skylift Leasehold Interest” All rights, title and interests granted to the permittee under and pursuant to the Skylift Lease.

  
 “Skylift Lease” means that lease agreement
dated September 1, 1953, as amended, by and between Skylift, as lessee, and the Residuary Trust of Rellie Louis Maples under trust agreement created in the Will of Rellie Louis Maple dated May 5, 1983, as lessor (the “Skylift Fee
Owner”) (as successor in interest to original fee owner Electrical Appliance Company), a complete description of which lease and all amendments and agreement modifying or supplementing such lease is attached as Exhibit “B”.

  
 “Skylift Lease Assignment” means that
assignment document pursuant to which the Skylift Lease will be assigned by the Seller to the Purchaser as set forth in Section 8.3.5. 
  
 “Skylift Premises” means all of those lands to which Skylift has been granted rights of use pursuant to the Skylift Lease, including a
leasehold estate in Tract One and easement rights in Tracts Two and Three, as described therein. 
  
 “Sublease” or “SubPermit” means the sublease, or subpermit, to be executed and delivered by Seller and Purchaser at the
Skylift Closing or Closing pursuant to Section 7.1.4. as the case may be. 
  
 “Subsidiary” means, in respect of any Person: 
  
 A. any corporation of which more than 50% of the outstanding capital stock having ordinary voting power to elect the majority of the board of directors of
such corporation is at the time directly or indirectly owned by (i) such Person, (ii) such person and one or more subsidiaries of such person, or (iii) one or more subsidiaries of such Person; or 
  
 B. any limited or general partnership, trust, joint venture, limited
liability company or other entity as to which (i) such Person, (ii) such Person and one or more of its subsidiaries, or 
  

 8 

 (iii) one or more subsidiaries of such Person owns, more than a 50% ownership, equity or similar interest or has power to
direct or cause the direction of management and policies, or the power to elect the general partner or managing partner (or equivalent thereof), of such limited or general partnership, joint venture, limited liability company or other entity, as the
case may be. 
  
 “Surveys” means the ALTA Surveys
provided by the Seller, in connection with the Skylift Premises, in a form and with such information as may be required by the Title Company to enable the Title Company to delete the standard survey-related exceptions. 
  
 “Tangible Personal Property” means all Assets which are not
Real Property or Intangible Assets. 
  
 “Taxes”
means any federal, state, provincial, regional, local or foreign, real property, personal property, sales, use, room, occupancy, ad valorem or similar taxes, assessments, levies, charges or fees imposed by any Governmental Authority on the Seller
with respect to the Assets or the Businesses, including, without limitation, any interest, penalty or fine with respect thereto, but expressly excluding any (i) federal, state, provincial, regional, local or foreign income, capital gain, gross
receipts, capital stock, capital, succession, franchise, profits, estate, gift or generation skipping tax, or (ii) transfer, documentary stamp, registration, recording or similar tax, levy, charge or fee incurred with respect to the
transactions described in this Agreement. 
  
 “Third-Party
Claim” means, with respect to the Person in question, any claim, demand, lawsuit, arbitration or other legal or administrative action or proceeding against the Person in question by any other Person which is not an Affiliate of the Person
in question. 
  
 “Title Commitment” has the
meaning set forth in Section 4.2.2. 
  
 “Title
Company” means LandAmerica Commercial Services. 
  
 “Title Exceptions” has the meaning set forth in Section 4.2.2. 
  
 “Title Notice” has the meaning set forth in Section 4.2.2. 
  
 “Title Policy” and “Title Policies” have the meanings set forth in Section 4.2.5.

  
 “Trade Payables” means amounts payable to
vendors or other suppliers of goods or services for the Businesses. 
  
 “Turnover Agreement” means an agreement between Seller and Purchasers to be executed at each of the Skylift Closing and at the Closing pursuant to which Seller agrees to turn over certain assets to the Purchaser at the
expiration or termination of the Skylift Sublease, or the Cypress Leases, as described in Section 2.3.2 of the Agreement. 
  
 “UCC” means the Uniform Commercial Code in effect in the States of Tennessee and Michigan, as amended from time to time. 
  

 9 

 “VANOC” means the Vancouver Organizing Committee For The 2010 Olympic Paralympic Winter
Games, a Part II Canada Corporations Act corporation organized under the laws of Canada. 
  
 “VANOC Agreement” means that certain Games Venue Agreement dated December 10, 2002, by and between CBRLP and Vancouver 2010 Bid Corporation, as amended by an Amending Agreement dated May 26,
2003, which VANOC Agreement was assumed by VANOC. 
  
 “Warranties” has the meaning set forth in Section 2.2.6(viii). 
  
 2. PURCHASE AND SALE, ASSETS AND LIABILITIES 
  
 2.1. Purchase and Sale. 
  
 The Sellers agree to sell the Assets to the Purchaser free and clear of all Encumbrances save and except for the Permitted Encumbrances and the Purchaser agrees to buy the Assets from the Sellers, all in accordance with the terms and
conditions set out in this Agreement. 
  
 2.2. Description
of the Assets. 
  
 In this Agreement, the
“Assets” means all of the following (but expressly excluding only the Excluded Assets): 
  
 2.2.1 Lands. The exclusive rights to use the Cypress Premises under the Cypress Permit, and to use the Skylift Premises under the Skylift Lease,
together with all appurtenant easements and any other licenses, rights, benefits and interests appurtenant thereto (the “Lands”). 
  
 2.2.2 Improvements. All buildings, structures and improvements located on or affixed to the Premises and all fixtures on the Premises which
constitute real property under Applicable Law (collectively, referred to as the “Improvements”: the Lands and the Improvements are collectively referred to as the “Real Property”). 
  
 2.2.3 Fixtures. All fixtures attached to and forming a part of the
Real Property, other than those which constitute Improvements (collectively, the “Fixtures”). 
  
 2.2.4 Tangible Personal Property. All Tangible Personal Property, including without limitation any and all furniture, equipment, machinery, tools,
appliances and vehicles, including without limitation snow plow trucks, loaders, graders, and snowmobiles, whether owned or leased by a Seller (free of any liens or encumbrances) located at or used in connection with the Businesses as well as items
that a Seller has ordered but has not yet received. Attached as Schedule 2.2.4 is a complete and accurate list of all Tangible Personal Property. 
  

 10 

 2.2.5 Intangible Assets. Subject to the provisions of Section 2.3.2, any and all of
the following items which collectively shall be referred to as the “Intangible Assets”: 
  
 i. Contracts. All of a Seller’s right, title and interest in and to any contracts and agreements benefiting the Assets or the Businesses
(collectively, the “Contracts”) to the extent that such contracts are transferable and Purchaser chooses to accept an assignment thereof, a complete list of which Contracts is set forth in Schedule 5.1.13, together with all deposits
made or held by a Seller thereunder, all to the extent that such deposits are transferable, together with all security deposits held by a Seller thereunder. 
  
 ii. Marketing Materials. All of a Seller’s right, title and interest in and to any phone and facsimile numbers, customer and supplier lists, credit
records, labels and promotional literature with respect to the Businesses. 
  
 iii. Licenses and Permits. All of a Seller’s right, title and interest in and to any licenses, permits, consents, authorizations, approvals, registrations and certificates issued by any Governmental Authority
which are held by the Seller with respect to the Real Property or the Businesses, including, without limitation, those necessary for the use, operation, or occupancy of the Real Property or the Businesses, a complete listing of which is attached
hereto as Schedule 5.1.10 (collectively, the “Licenses and Permits”), together with any deposits made by a Seller thereunder. 
  
 iv. Intellectual Property. All of a Seller’s right, title and interest in and to any Intellectual Property as defined in Section 5.1.4,
including all registered and unregistered symbols, logos, intellectual property, tradenames, trademarks and variations thereof used in connection with either of the Premises (but excluding any of the foregoing items to the extent relating to a
specific Tenant) (collectively, the “Trademarks”); provided that, in the case of data including customer and employee data, Sellers shall only sell and assign to the Purchaser hereunder a copy of such data for use by Purchaser and
Sellers shall retain full right and title to use such data without restriction. A true and accurate list of all Trademarks which are the subject of registration or application for registration is attached hereto as Schedule 2.2.6 (iv). 

 
 v. Books and Records. All of a Seller’s books and records which
relate to the Real Property or the Businesses, but expressly excluding all documents and other materials which are legally privileged or constitute attorney work product (collectively, the “Books and Records”). 
  
 vi. Plans and Specifications. All of a Seller’s right, title and
interest in and to any plans and specifications, blue prints, architectural plans, engineering diagrams and similar items, if any, within the control of the Seller which specifically relate to the Real Property to the extent that the foregoing are
transferable (collectively, the “Plans and Specifications”). 
  
 vii. Property Reports. All of a Seller’s right, title and interest in and to any Environmental Reports, soil reports, and property condition reports. 
  
 viii. Warranties. All warranties and guaranties held by a Seller with respect to any Improvements, to the extent that such
warranties are transferable (collectively, the “Warranties”). 
  

 11 

 2.3. Excluded Assets. 
  
 Notwithstanding anything to the contrary in Section 2.2, the following property, assets, rights and interests
are excluded from the Assets that will be conveyed to Purchaser (collectively, the “Excluded Assets”): 
  
 2.3.1 Cash. Except for deposits expressly included in Section 2.2.5(i), all cash on hand or on deposit in any operating account or
other account or reserve maintained in connection with the Real Property or the Businesses, short-term deposits, treasury bills, certificates of deposit, investments in short-term commercial paper, guaranteed investment certificates or other deposit
securities, refunds in respect of reassessments for Taxes pertaining to the Businesses or Assets including any claims for refunds of Taxes paid or Taxes reimbursed from Governmental Authorities. 
  
 2.3.2 Certain Intangible Assets; Consumables and Inventory. Subject to
the provisions of this Section 2.3.2 and the Turnover Agreement, all food, liquor, wine, consumable supplies, rental equipment, retail inventory (collectively, the “Consumables and Inventory”). Purchaser is a passive
investor in real estate assets and related personal property and has no intent to be the purchaser or operator of the Businesses. The parties intend to negotiate and enter into, at the Skylift Closing, a Sublease Agreement (the “Skylift
Sublease”) by which Purchaser or its nominee subleases the Skylift Premises and certain personal property to Skylift, and at the Closing, a Sub-Permit and Lease Agreement (the “Cypress Lease”) (being the Subpermit and
Sublease referred to in Section 7.1.4) pursuant to which Purchaser or its nominee grants a sub-permit and lease of the Cypress Premises and certain of the personal property to CBRLP, each of whom will be obligated thereby to continue the
operation of the Businesses throughout the term of the Skylift Sublease and Cypress Lease respectively. The parties recognize that all Consumables and Inventory and many of the Intangible Assets are important for the continued operation of the
Businesses, but, because of the requirement that Purchaser and its nominees be passive investors, will be excluded assets and shall be retained by Sellers so long as they are operating the Businesses, but that upon termination of the Skylift
Sublease and the Cypress Lease, the Consumables and Inventory and the Intangible Assets will be turned over to the Purchaser or the replacement operator designated by the Purchaser in accordance with the Skylift Sublease or the Cypress Lease and the
Turnover Agreement. Purchaser will pay Seller the value of such Consumables and Inventory at the time of turnover with a credit for the value of the existing Consumables and Inventory, all as described and as determined by the Turnover Agreement.
Consequently, the Consumables and Inventory will be excluded from the transfer and will be retained by the Sellers, for use in the operation of the Businesses, subject to the terms of each of the Turnover Agreements, as applicable, to be entered
into at each of the Skylift Closing and the Closing. Similarly, the Sellers and Purchaser have identified those specific Intangible Assets which will be retained by the Sellers for continued use in the operation of the Businesses, subject to the
terms of each of the Turnover Agreements. The Consumables and Inventory and the retained Intangible Assets are identified on Schedule 2.3.2 attached hereto (the “Retained Business Assets”). 
  

 12 

 2.4. Retained Liabilities. 
  
 At Closing, the Sellers shall retain all Liabilities for, and the Purchaser shall not have any obligation or Liability
concerning (collectively, the “Retained Liabilities”): 
  
 i. any Liabilities under the Retained Business Assets and otherwise Liabilities which have arisen or accrued and pertain to a period prior to the Closing Date, including, without limitation, the Liability for the
payment of any amounts due and payable or accrued but not yet due or payable prior to the Closing Date under the Contracts and Licenses and Permits; and 
  
 ii. the payment of all Taxes and assessments; and 
  
 iii. the employment of any Employees of the Seller and/or in connection with the Assets, including the payment of any compensation, accrued paid time
off, sick time, personal days and any amounts accrued under any Employee benefit or welfare plan and all pension plan Liabilities, in each and every case whether pertaining to the period prior to, on or after the Closing Date as the Purchaser will
not be hiring any Employees and the Seller will continue to employ each and every one of the Employees on terms and conditions as good or better than those in existence as of the date hereof; and 
  
 iv. any claim for personal injury or property damage to a Person which is
based on any event which occurred at the Real Property prior to the Closing Date and thereafter while the Skylift Sublease or Cypress Lease remain in effect; and 
  
 v. any Liabilities (including costs of cleanup, containment of other remediation) arising from or in connection with any
Environmental Laws, or any environmental, health and safety liabilities arising out of or relating to (i) the ownership or operation by any Person of any of the facilities, Assets or the Businesses of Sellers, or (ii) any bodily injury
(including illness, disability and death, regardless of when any bodily injury occurred, was incurred or manifested itself), personal injury, property damage (including trespass, nuisance, wrongful eviction and deprivation of the use of real
property) or other damage of or to any Person or any assets in any way arising from or allegedly arising from any hazardous activity conducted by any Person with respect to the Assets or the Businesses of Sellers that was present or suspected to be
present on or before the Closing Date or thereafter while any Sublease or Subpermit remains in effect, on, within or at the Real Property (or present or suspected to be present on any other property, if such Hazardous Material emanated or allegedly
emanated from any property and was present or suspected to be present on the Real Property or the Premises, on or prior to the Closing Date or thereafter while any Sublease or SubPermit remains in effect), or (iii) any Hazardous Substance
released or allegedly released by any Person on or at the Premises at any time on or prior to the Closing Date or thereafter while any Sublease or Sub-permit remains in effect, it being acknowledged that Liability for any Hazardous Materials first
appearing after the date of the closing of each of the Skylift Assets and of the Cypress Assets shall be governed by the terms of the Subpermit or Sublease as appropriate. 
  

 13 

 vi. The rights and obligations of the Parties under this Section 2.4 shall survive the
Skylift Closing or the Closing, as applicable, for the period set forth in Section 12.1 and subject to the limitations of liability set out in Section 12.5. 
  
 3. PURCHASE PRICE 
  
 3.1. Purchase Price. 
  
 The purchase price for the Assets is US $47,440,000.00 (the “Purchase Price”). This purchase price shall be adjusted at Closing as
expressly provided in Article 9 of this Agreement. 
  
 3.2. Payment of Purchase Price. 
  
 3.2.1
Deposit. US $1,000,000.00 (the “Deposit”) which amount was paid by wire transfer to Escrow Agent, in trust, upon the execution of this Agreement, and which shall be held by the Escrow Agent in an interest bearing account and
shall be released: (i) to the Sellers on the Closing Date and credited against the amount of the Purchase Price owing to the Sellers; or (ii) to the Sellers if this Agreement is terminated due to a Purchaser default pursuant to
Section 10.2; or (iii) to the Purchaser if this Agreement is terminated for any reason other than a default of the Purchaser under Section 10.2. 
  
 3.2.2 Payment at Closing. At the Skylift Closing and at the Closing, the Purchaser shall pay to the appropriate
Seller by wire transfer, an amount equal to the Purchase Price allocable to the Assets being purchased (as adjusted pursuant to credits and debits provided for hereunder). The Purchaser shall cause the wire transfer of funds to be received by the
Escrow Agent no later than 3:00 p.m. (Eastern Time) on the Closing Date. 
  
 3.2.3 Method of Payment. All amounts to be paid by the Purchaser to the Seller pursuant to this Agreement shall be paid by wire transfer of immediately available U.S. federal funds. 
  
 3.3. Allocation of Purchase Price. 
  
 3.3.1 The Parties agree that the Purchase Price shall be allocated among the
Cypress Assets and the Skylift Assets, the Real Property and the Personal Property as set forth in Schedule 3.3. The Parties acknowledge and agree that the allocation set forth in Schedule 3.3 represents an arm’s length agreement
based on the Parties’ best judgment as to the fair market value of the Real Property. The Parties shall file all federal, state, provincial and local or municipal tax returns and related tax documents consistent with the allocation set forth in
Schedule 3.3, as the same may be adjusted pursuant to Article 9 or any other provision in this Agreement. 
  
 3.4. Goods and Services and Social Service Tax. 
  
 The Purchaser will pay all GST and all Provincial sales tax payable pursuant to the Social Service Tax Act, in each case, to the extent payable on the
Purchase Price for the Cypress Assets directly to the appropriate Government Authority and provide evidence of said payment to the Seller; provided that if the Purchaser is registered for the purposes of the payment of GST, to the 
  

 14 

 extent permitted by law, the Purchaser may self assess for GST purposes in lieu of paying the GST to the Seller, provided
that prior to Closing, the Purchaser provides to the Seller with reasonable evidence as to such GST registration. 
  
 4. DUE DILIGENCE AND INSPECTION 
  
 4.1. Right to Inspect. 
  
 4.1.1 The Purchaser and the Purchaser’s Inspectors shall have the right to enter upon the Real Property from time to time on not less than two
(2) Business Days’ notice, at the risk of the Purchaser, and to perform, at the Purchaser’s expense, such inspections of and concerning the Assets and other tests, studies, reviews and investigations, as the Purchaser may deem
appropriate in the Purchaser’s sole discretion from time to time. In addition, the Purchaser shall have the right but not the obligation to contact such Governmental Authorities and other interested parties as the Purchaser may elect in its
sole discretion in connection with this transaction. To the extent in the Seller’s possession or control, Seller has furnished to the Purchaser copies of the following, each of which, to the Seller’s Knowledge, is or will be a true,
correct and complete copy of the document it purports to be, as at the date hereof: 
  
 i. The Cypress Permit; 
  
 ii.
The Skylift Lease; 
  
 iii. (All material Licenses and Permits
affecting the Real Property, Premises or the Businesses in any material respect; 
  
 iv. The most recent real estate tax statements with respect to the Real Property and notices of assessed value for the Real Property issued by applicable authorities; 
  
 v. All Contracts affecting the Real Property, the Premises or the Businesses
in any material respect; 
  
 vi. All tenant leases and all
agreements for real estate commissions, brokerage fees, finder’s fees or other compensation payable in connection therewith which will be binding on the Purchaser; and 
  
 vii. The VANOC Agreement. 
  
 4.2. Matters Relating to Title. 
  
 4.2.1 Title. At the Skylift Closing or on the Closing Date, as applicable, the Sellers shall convey to the Purchaser good and marketable licensed
or leasehold title to the Assets, free and clear of all Encumbrances, save and except for the Permitted Encumbrances (provided each of said Permitted Encumbrances are in good standing, if applicable). The Sellers covenant and agree, on or before the
Skylift Closing or the Closing Date, to discharge at its sole cost and expense, any Encumbrances affecting title to each of the Premises other than the Permitted Encumbrances and to remedy work orders or deficiency notices affecting each of the
Premises. 
  

 15 

 4.2.2 State of Title. Purchaser has undertaken to obtain the following title information regarding
the Assets: 
  
 i. Land America Title Insurance Commitment
No. 82595 issued by Tennessee Valley Title Insurance Co. dated September 1, 2005 (the “Title Commitment”), evidencing those Permitted Encumbrances described in Schedule 4.2. Seller agrees that it will satisfy all
Schedule B-1 requirements for issuance of the title policy (“Title Policy”) as set forth in the Title Commitment (including delivery of a release of satisfaction of the mortgage described therein); 
  
 ii. UCC searches in Tennessee and Michigan with respect to Skylift,
evidencing that there are no UCC Financing Statements filed affecting the Skylift Premises; 
  
 iii. A search of the records under the Personal Property Security Act in British Columbia with respect to CBRLP and the Premises and evidencing the filings described on Schedule 4.2.2, all of which shall be
considered Permitted Encumbrances; and 
  
 iv. A survey of the
Skylift Premises prepared by Gatlinburg Land Surveying dated November 7, 2005. 
  
 4.2.3 Failure of Title. If at the Skylift Closing or on the Closing Date, as applicable, title to the Real Property is not insurable or if the Assets are subject to any Encumbrance or title defect which is not
a Permitted Encumbrance, and the Seller is unable to cure the same, the Purchaser may elect, as its sole right and remedy, either (i) to take such title to the Assets as the Seller can convey, with no abatement of the Purchase Price (except to
the extent of monetary liens and security interests of a definite, fixed and ascertainable amount not in excess of the Purchase Price), or (ii) to terminate this Agreement. Seller shall obtain a release of all mortgages, liens and security
interests encumbering the Real Property or the Tangible Personal Property, other than Permitted Encumbrances, prior to the Skylift Closing with respect to the Skylift Assets and prior to Closing with respect to the Cypress Assets. Seller and
Purchaser acknowledge the existence of certain survey defects with respect to the Skylift Premises which the Purchaser and Seller have agreed to resolve in the manner described in Section 4.2.7 of this Agreement. 
  
 4.2.4 Updated Title Commitment or Survey. If prior to either the
Skylift Closing or the Closing, any update of the Title Commitment or UCC/PPSA searches, as applicable, disclose any Title Exception which is not disclosed in the original Title Commitment or UCC/PPSA searches previously obtained by the Purchaser (a
“New Title Exception”) (copies of which have been timely provided to the Sellers), or any update of the Surveys delivered to the Purchaser discloses any Survey Defect which is not disclosed in a Survey previously delivered to the
Purchaser (a “New Survey Defect”), the Seller shall exercise commercially reasonable diligent efforts to remove or cure such New Title Exception or New Survey Defect at or prior to the relevant closing. If Seller fails to remove or
cure such New Title Exception or New Survey Defect in its entirety by the relevant closing, then Purchaser shall have the right, in its absolute discretion, to elect, upon written notice to the Seller to either (A) defer the Closing Date for a
reasonable period not exceeding sixty (60) days to give the Seller an opportunity, at the Sellers’ sole option and at the Sellers’ sole cost and expense, to either (i) remove any Encumbrance or 
  

 16 

 other title objection which is not a Permitted Encumbrance, or (ii) provide the Title Company and the Purchaser such
assurances as the Title Company and the Purchaser requires to insure the Purchaser at the Sellers’ sole cost and expense in a manner acceptable to the Purchaser against any loss arising from such encumbrances or other title objections, or
(B) to do neither (i) nor (ii) of clause (A) above, in which event the Purchaser shall have the option available to it in Section 4.2.3. In addition if the New Title Exception or New Survey Defect is caused by Seller,
the right to sue for damages. The Seller will not create or permit to exist any New Title Exception or New Survey Defect. 
  
 4.2.5 Title Policies. At the Skylift Closing or Closing, as applicable, the Seller shall take such steps as may be necessary to cause the Title
Company to issue unconditional commitments to issue the Title Policies to the Purchaser, which have been pre-approved by the Purchaser in all respects subject only to the Permitted Encumbrances, or alternatively, to commit in writing to issue such
Title Policies to the Purchaser post-Closing. 
  
 4.2.6
Conveyance of the Assets. At the Skylift Closing or Closing, as applicable, the Sellers shall convey to the Purchaser good and marketable title to the Assets as follows: (A) the Real Property subject only to Permitted Encumbrances, and
(B) the remainder of the Assets, free and clear of all Encumbrances. 
  
 4.2.7 Survey Defects Affecting the Skylift Premises. To the extent the survey described in Section 4.2.2 (iv) above evidences certain survey defects and required improvements to the
Skylift Premises which remain outstanding following the Skylift Closing, the Seller and Purchaser have agreed that such matters will be addressed pursuant to that certain post-closing agreement executed by the parties and dated
concurrently herewith (the ”Skylift Post-closing Agreement”).
  
 4.3. Equipment Leases. 
  
 If any equipment used by Sellers in connection with Sellers’ operation of the Businesses on the Premises is leased or lease-financed, then Sellers, subject to the consent of the equipment lessor, assign the Sellers’ rights under
such leases (including any purchase option) to Purchaser, [reserving in such assignment the obligation to make all payments on a timely basis for the benefit of Purchaser and the obligation to pay the purchase price for such equipment at the
conclusion of the lease term, with such security for Seller’s obligation as Purchaser may reasonably require as a condition for Purchaser’s acceptance of such assignment.] A complete list of all such equipment leases is attached hereto as
Schedule 4.4. 
  
 4.4. Contracts Requiring
Consent. 
  
 If a consent or approval of a third party is
required to permit the transfer or assignment to the Purchaser of the Sellers’ interest in any of the Contracts (including leases for equipment) is not received on or before the Closing, and if, notwithstanding such non-receipt, the Sellers and
the Purchaser proceed to complete the sale and the purchase of the Assets contemplated by this Agreement, the transfer or assignment of those Contracts (including leases for equipment) in respect of which the required consent has not been received
on or before the Closing will not be effective in each case until the applicable consent or approval has been received and such 
  

 17 

 Contract (including leases for equipment) will be held by the Sellers following the Closing in trust for the benefit and
exclusive use of the Purchaser. The Sellers shall continue to use all reasonable efforts to obtain the required consents and approvals and shall only make use of such Contracts (including leases for equipment) for the benefit of the Purchaser
provided such use does not conflict with the terms of such Contracts (including leases for equipment). Seller will apply for and request consent within ten (10) days after the date of the Agreement. 
  
 4.5. Tangible Personal Property Review. 
  
 Prior to the Skylift Closing and Closing Date, as applicable, Purchaser and
its representatives shall be permitted to enter the Premises on reasonable advance notice (in accordance with Section 4.1 for the purpose of taking an inventory of all Tangible Personal Property related to the Businesses. 
  
 4.6. Audited Financial Statements and Appraisals. 

 
 To the extent that the Sellers do not have audited financial statements
with respect to the Businesses for the three calendar years preceding the date of this Agreement, Seller and Purchaser will make arrangements for the completion of such audited financial statements prior to the Closing, all at Purchaser’s sole
cost and expense. Sellers will cooperate with the appraisers retained by the Purchaser for purposes of appraising the value of the Assets and promptly provide such information as may be reasonably required by such appraisers. 
  
 4.7. Release and Indemnification. 
  
 The Purchaser (for itself and all the Purchaser’s Indemnitees) hereby
releases the Sellers’ Indemnitees for any Indemnification Loss incurred by any Purchaser Indemnitee arising from or in connection with the Inspections, except to the extent resulting from the gross negligence or willful misconduct of any
Sellers’ Indemnitee. The Purchaser shall defend, indemnify and hold harmless the Sellers’ Indemnitees in accordance with Article 12 from and against any Indemnification Loss incurred by the Sellers’ Indemnitees arising from or
in connection with the Inspections, except to the extent resulting from the gross negligence or willful misconduct of any Sellers’ Indemnitee. 
  
 5. REPRESENTATIONS AND WARRANTIES 
  
 5.1. The Seller’s Representations and Warranties. 
  
 To induce the Purchaser to enter into this Agreement and to consummate the transactions described in this Agreement, each
Seller hereby makes the following representations and warranties in this Section 5.1 each as to its respective Assets and Business and concerning the respective Seller only, upon which the Sellers each acknowledge and agree that the
Purchaser is entitled to rely, and as of the Skylift Closing and the Closing shall provide a certificate reconfirming that all such representations and warranties remain true and correct as of the Skylift Closing and Closing, as applicable,
concerning their respective Assets and Business. 
  
 5.1.1
Organization and Power. The Seller is duly incorporated or formed (as the case may be), validly existing, in good standing in the jurisdiction of its incorporation or 
  

 18 

 formation, and is qualified to do business in the jurisdiction in which its Assets are located, and has all requisite
power and authority to own the Assets and conduct its Businesses as currently owned and conducted. Cypress Bowl ULC is the only general partner of CBRLP and Boyne Canada ULC is the only limited partner of CBRLP. 
  
 5.1.2 Authority and Binding Obligation. The Seller has full power and
authority to execute and deliver this Agreement and all other documents to be executed and delivered by it pursuant to this Agreement (collectively, the “Seller’s Documents”), and to perform all obligations required of it under
this Agreement and each of the Seller’s Documents. The execution and delivery by Seller of this Agreement and, when executed and delivered, each of the Seller’s Documents, and the performance by Seller of its obligations under this
Agreement and, when executed and delivered, each of the Seller’s Documents, have been, or will have been, duly and validly authorized by all necessary action by the Seller. This Agreement and when executed and delivered the Seller’s
Documents, constitute or will constitute legal, valid and binding obligations of the Seller enforceable against the Seller in accordance with its and their terms, except to the extent the Purchaser itself is in default hereunder or thereunder.

  
 5.1.3 Title to the Lands and Personal Property. CBRLP
is the absolute owner and holder of the rights to use the Cypress Premises under the Cypress Permit. Skylift is the absolute owner and holder of the rights to use the Skylift Premises under the Skylift Lease. Each Seller is the absolute owner of the
Improvements and the undisputed owner of all of the Personal Property (other than Personal Property that is leased pursuant to the equipment leases described in Schedule 4.3), free and clear of all Encumbrances other than Permitted Encumbrances,
excepting such Encumbrances as shall be paid off and released at or prior to Closing. 
  
 5.1.4 Intellectual Property. To the Seller’s Knowledge, Seller owns all rights in, and has all rights necessary to transfer those Assets constituting Intellectual Property to be sold and conveyed
hereunder. For the purposes of this Agreement, “Intellectual Property” means (i) any patent, copyright, trademark, service marks, trade name, licenses, franchises or domain name (regardless of whether such rights have been
registered), (ii) registrations and applications for registration of any of the foregoing rights listed in clause (i) of this definition, (iii) data of any kind, subject to existing applicable privacy laws, including rights to use
personally-identifiable information relating to any natural person or any e-mail address, and (iv) any other proprietary or intellectual property rights of any kind. Without limiting the forgoing, Seller has the right to use those Trademarks
shown on the attached Schedule 2.2.6(iv), and Seller has not received notification of any claims or actions by any party disputing or challenging Seller’s right to use such name. 
  
 5.1.5 Consents and Approvals; No Conflicts. Subject to the recording
of any of the Seller’s Documents as appropriate, no filing with, and no permit, authorization, consent or approval of, any Governmental Authority or other Person is necessary for execution or delivery by the Seller of any of the Seller’s
Documents, or the performance by the Seller of any of its obligations under this Agreement or any of the Seller’s Documents or the consummation by the Seller of the transactions described in this Agreement, except to the extent such permit,
authorization, consent or approval has been or will be obtained by the Seller prior to Closing other than with respect to those Contracts for which consent to assignment has not been obtained prior to Closing and which will be subject to the
provisions of Section 4.4. The foregoing 
  

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 representation is qualified in that Seller will use diligent reasonable commercial efforts to obtain: (a) with the
assistance and cooperation of the Purchaser, the consent and approval of the Minister of Environment to the assignment to Purchaser (or a Purchaser Affiliate), and a Subpermit back to Seller (or a Seller Affiliate) of the Cypress Permit, and
(b) a waiver by the existing fee owner of the Skylift Premises of its purchase option under the Skylift Lease. Neither the execution and delivery by the Seller of this Agreement or any of the Seller’s Documents, nor the performance by the
Seller of any of their obligations under this Agreement or any of the Seller’s Documents, nor the consummation by the Seller of the transactions described in this Agreement, will (A) violate any provision of the Seller’s
organizational or governing documents, (B) violate any Applicable Law to which the Seller are subject, (C) to the Seller’s Knowledge, result in a violation or breach of, or constitute a default under any of the Contracts that affect
any of the Assets or Businesses, or Seller in any respect, subject to obtaining consent to assignment and transfer of same in accordance with their terms, including without limitation the Cypress Permit, or (D) result in the creation or
imposition of any lien or encumbrance on any of the Assets or any portion thereof. 
  
 5.1.6 Compliance with Applicable Law and Permitted Encumbrances. The Seller has not received any written notice, of and to Seller’s Knowledge there is no, violation of any Applicable Law with respect to
any of the Assets which has not been cured or dismissed, including, but not limited to, those of environmental agencies, with respect to the ownership, operation, use, maintenance or condition of the Assets. The Seller has neither received, nor
given, any written notice of any violation of any Permitted Encumbrance which is material to the ownership, value or operation of any of the Assets, which has not been cured or dismissed. 
  
 5.1.7 Litigation. Other than as set out in Schedule 5.1.7, the Seller has not (i) been served with any
court filing in any litigation with respect to any Assets or the Businesses in which the Seller is named a party which has not been resolved, settled or dismissed and which could otherwise reasonably result in an adverse affect on the Assets, the
Businesses, or Seller’s title to any of the Assets or (ii) received written notice of any claim, charge or complaint from any Governmental Authority or other Person pursuant to any administrative, arbitration or similar adjudicatory
proceeding with respect to any Assets or the Businesses which has not been resolved, settled or dismissed and which could reasonably result in an adverse affect on the Businesses or Seller’s Assets. Attached as Schedule 5.1.7 is a true
and complete list and description of all such litigation matters presently affecting the Assets or Businesses, including any matters or incidents which, though not presently pending, will likely result in litigation which could materially affect the
Assets and Businesses. 
  
 5.1.8 Condemnation. The Seller
has not received any written notice of any pending condemnation or expropriation proceeding or other proceeding in eminent domain, and to the Seller’s Knowledge, no such condemnation or expropriation proceeding or eminent domain proceeding is
threatened affecting any of the Real Property or any portion thereof. 
  
 5.1.9 Taxes and Assessments. Other than as disclosed on Schedule 5.1.9 attached hereto: (i) all Taxes which would be delinquent if unpaid have been, or will at the Closing Date, to the extent that such Taxes at such date
would be delinquent if not paid; (ii) the Seller has not received any written notice for an audit or delinquency of any Taxes with respect to any Assets which has not been resolved or completed; (iii) the Seller is not currently

  

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 contesting any Taxes with respect to any Assets; (iv) all sales, use and payroll taxes to which the Businesses are
subject have been paid as required and all tax returns and reports have been duly filed; and (v) to the Seller’s Knowledge, there are not outstanding unpaid assessment notices against the Assets. 
  
 5.1.10 Licenses and Permits. The Seller has made available to the
Purchaser a true and complete copy of the Licenses and Permits material to ownership and operation of the Assets or Businesses, a complete listing of which is attached hereto as Schedule 5.1.10. Except as set forth on Schedule 5.1.10,
the Seller has not received any written notice from any Governmental Authority or other Person of (i) any violation, suspension, revocation or non-renewal of any Licenses and Permits that materially affect an Asset or the Businesses that have
not been cured or dismissed, or (ii) any failure by the Seller to obtain any Licenses and Permits that materially affect an Asset or the Businesses that have not been cured or dismissed. 
  
 5.1.11 Real Property Leases. The Seller has not granted to any party
any license, lease, easement or other right relating to the use or possession of the Real Property or any part thereof, and there are no leases, subleases, licenses, permits, concessions, or other similar agreements encumbering the Skylift Premises
or the Cypress Premises, except as set out in Schedule 5.1.13. The Seller has made available to the Purchaser a true and complete copy of all such leases, subleases, licenses, permits, concessions or other similar agreements
(“leases”). To the Seller’s Knowledge, (i) the Seller has neither given nor received any written notice of any breach or default under such leases which have not been cured, (ii) no tenants under such leases are entitled to
any rebates, rent concessions or free rent, (iii) no rents due under the leases are presently assigned, hypothecated or encumbered by the Seller, other than in connection with any mortgage encumbering the Real Property which shall be satisfied
prior to or in connection with the Closing, (iv) no tenant has notified the Seller in writing of its intent to terminate a lease prior to expiration of the term of such lease; and (vii) no written notice of any default by a Seller under
such leases has been received by the Sellers. 
  
 5.1.12
Purchase Rights. There are no purchase contracts, options, rights of first refusal or offer or other rights or agreements of any kind, whereby any Person other than the Purchaser will have acquired or will have any right to acquire all or any
portion of the Assets. 
  
 5.1.13 Contracts. Schedule
5.1.13 sets forth a true, correct and complete list of the Contracts material to ownership and operation of the Assets and Businesses. The copies heretofore delivered to the Purchaser are true, correct and complete in all material respects, and
(ii) Sellers are not in default and to Sellers’ knowledge no other party to any Contract is in breach or default under any material obligation thereunder or any provisions thereof. 
  
 5.1.14 Bankruptcy. None of the Sellers and/or the partners of the
Sellers are insolvent within the meaning of Title 11 of the United States Code, as amended or (ii) a bankrupt or a insolvent person within the meaning of the Companies’ Creditors Arrangement Act and/or the Bankruptcy and Insolvency Act
(Canada), as amended (all of said statutes being collectively, the “Bankruptcy Code”), and Seller has not ceased to pay its debts as they become due. Seller has not filed or taken any action to file a voluntary petition, case or
proceeding under any Section or chapter of the Bankruptcy Code, or under any similar law or statute of the United States, of Canada, or any political subdivision thereof, relating to bankruptcy, insolvency, reorganization, 
  

 21 

 winding up or composition or adjustment of its debts and no such petition, case or proceeding has been filed against it
which has not been dismissed, vacated or stayed on appeal and Seller has not been adjudicated as a bankrupt or insolvent or consented to, nor filed an answer admitting or failing reasonably to contest an allegation of bankruptcy or insolvency.
Seller has not sought, or consented to or acquiesced in, the appointment of any receiver, trustee, liquidator or other custodian of it or a material part of its assets, and Seller has not made or taken any action to make a general assignment for the
benefit of creditors or an arrangement, attachment or execution has been levied and no tax lien or other governmental or similar lien has been filed, against it or a material part of its Assets, which has not been duly and fully discharged prior to
the date hereof. 
  
 5.1.15 Applicable Laws. No Seller has
received any written notice of any violation of any provision of Applicable Law with respect to the ownership, operation, use, maintenance or condition of the Assets, which violation has not been remedied. 
  
 5.1.16 Insurance Policies. Seller has not received written notice from
any insurance carrier of defects or inadequacies in the Assets which, if uncorrected, would result in a termination of insurance coverage or a material increase in the premiums charged therefor. 
  
 5.1.17 Tradenames and Trademarks. The Sellers have the right to use
and will take all actions necessary to convey the Trademarks owned by Seller to Purchaser and assign to Purchaser the non-exclusive license and right to use all Trademarks not owned by Seller but used by Sellers in connection with the operation of
the Business. 
  
 5.1.18 Management Agreements. The Sellers
are not a party to any management or franchise agreements with respect to the Assets, except for management agreements with an Affiliate that do not involve any management of the Premises other than maintenance, administration and related services.

  
 5.1.19 Environmental Condition of Assets. Except for
all matters described in the Environmental Reports, or described in the Environmental Issues Proposal referred to in Section 7.1.6, Seller represents that: 
  
 i. To the Seller’s Knowledge, except as set forth in the Property Condition Evaluations and the Environmental Reports,
there are no underground storage tanks and the Real Property does not contain any Hazardous Substances (other than any Hazardous Substances situated at the Real Property in the Ordinary Course of Business or the ordinary course of business of any
tenant or other occupant of the Real Property which are stored, held, used and disposed of in compliance with Environmental Laws) and the Seller does not have any Seller’s Knowledge of any Environmental Claims or Environmental Liabilities in
respect of the Real Property. 
  
 ii. The Sellers have not
received any written notice which remains outstanding of any violation of any Environmental Laws and there are no writs, injunctions, orders or judgments outstanding, or lawsuits, claims, proceedings, actions, prosecutions, charges, or hearings
against the Sellers, relating to the discharge, deposit, escape or release of any hazardous waste or contaminant (as identified in the Environmental Laws) into the natural 
  

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 environment in, on, over, under or at the Real Property, and there are no outstanding orders or directions issued against
the Sellers relating to environmental matters requiring any work, repairs, construction or capital expenditures with respect to the Assets and the conduct of the Business at the Premises, nor have the Sellers received any written notice of any of
the foregoing matters. 
  
 iii. To Seller’s Knowledge, the
Sellers have not, and no other party has, released, spilled, leaked, pumped, poured, emitted, emptied, discharged, deposited, disposed or dumped any Hazardous Substances into the environment (including the air, land, surface water and ground water)
in, on, over, under, at or adjacent to the Real Property and the Sellers have not and, to Sellers Knowledge, no other party has used the Real Property at any time for the treatment, transportation, handling, manufacture, storage or disposal of
Hazardous Substances. 
  
 iv. To Seller’s Knowledge,
(a) neither of the Premises or Improvements has been insulated with urea formaldehyde foam insulation or asbestos and (b) the Premises do not contain any polychlorinated biphenyls or any other Hazardous Substances and (c) the Real
Property has not been used at any time as a waste disposal site, and (d) the Premises do not contain any underground storage tanks. 
  
 5.1.20 Finders and Investment Brokers. The Seller has not dealt with any Person who has acted, directly or indirectly, as a broker, agent, finder,
financial adviser or in such other capacity for or on behalf of the Seller in connection with the transactions described by this Agreement in a manner which would entitle such Person to any fee or commission in connection with this Agreement or the
transactions described in this Agreement. 
  
 5.1.21 Foreign
Person. Skylift is a “United States person” (as defined in Section 7701(a)(30)(B) or (C) of the Code) for the purposes of the provisions of Section 1445(a) of the Code. CBRLP and each of its partners is not a
non-resident of Canada within the meaning of Section 116 of the Income Tax Act (Canada) and it shall receive the balance of the Purchase Price on Closing on its own account and not as agent or trustee or nominee for any other person.

  
 5.1.22 Financial Statements. The income statements,
balance sheets, cash flow and profit and loss statements for the Real Property for fiscal years ended December 31, 2002, 2003, and 2004, and the statements from the first two quarters of 2005, which were provided to the Purchaser: (i) are
true and complete copies of the operating statements for such period prepared by the Seller with respect to the Businesses; and (ii) to the Seller’s Knowledge, have been prepared in accordance with US GAAP and present fairly, in all
material respects, the operational results of the Businesses for the periods covered by such income statements, subject to standard year-end adjustments for any year to date income statements, and subject to any changes to presentation that were
required or requested by the Purchaser in the preparation of same. 
  
 5.1.23 ERISA. Neither (i) any assets of Skylift, nor (ii) any funds to be used by Skylift with respect to the transactions contemplated pursuant to this Agreement, are, or at Closing will be, pursuant to ERISA or the Code
considered for any purpose of ERISA or Section 4975 of the Code to be assets of a Plan. Skylift is not executing this Agreement and will not be performing its obligations or exercising its rights or remedies under the Agreement on behalf of

  

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 or for the benefit of any Plan. Neither the execution or delivery of this Agreement by Skylift, nor the performance by
Skylift of its obligations or the exercise of its rights or remedies under this Agreement, nor any transaction contemplated under this Agreement, is or will be a “prohibited transaction” within the meaning of Section 406 of ERISA or
Section 4975 of the Code. For the purposes hereof the following terms shall have the following meanings: “Code” shall mean the Internal Revenue Code of 1986, as amended; “ERISA” shall mean the Employee
Retirement Income Security Act of 1974, as amended (and any successor statute and any applicable regulations or guidance promulgated thereunder); and “Plan” shall mean a “plan” as that term is defined in Section 3(3)
of ERISA or Section 4975 of the Code. 
  
 5.1.24 GST.
The Assets of CBRLP are all or substantially all of the property used in a commercial activity that forms all or a part of a business carried on by CBRLP. CBRLP has not been and is not now a financial institution for the purposes of the Excise
Tax Act (Canada). CBRLP is a registrant for the purposes of the Excise Tax Act (Canada). 
  
 5.1.25 No Materially Untrue Statements or Omissions. To Seller’s Knowledge, no representation, warranty or statement in this Agreement made by
Seller contains any untrue statement of a material fact or omits to state a material fact necessary to make the statement of facts contained therein not materially misleading. 
  
 5.2. The Purchaser’s Representations and Warranties. 
  
 To induce the Sellers to enter into this Agreement and to consummate the
transactions described in this Agreement, the Purchaser hereby makes the representations and warranties in this Section 5.2, upon which the Purchaser acknowledges and agrees that the Sellers are entitled to rely and which will be deemed
repeated on the Closing Date. To the extent Purchaser assigns to any Affiliate its rights to purchase or convey any of the Assets at Closing, Purchaser shall cause such assignee or designee to provide a certificate at Closing confirming such
representations and warranties as to such assignee or designee. 
  
 5.2.1 Organization and Power. The Purchaser is duly incorporated, validly existing and in good standing under the laws of its state of organization, and has all requisite power and authority to own, lease and operate its properties
and to carry on its business as currently being conducted. 
  
 5.2.2 Authority and Binding Obligation. The Purchaser has full power and authority to execute and deliver this Agreement and all other documents to be executed and delivered by the Purchaser pursuant to this Agreement (the
“Purchaser’s Documents”), and to perform all obligations of the Purchaser arising under this Agreement and each of the Purchaser’s Documents. The execution and delivery by the signer on behalf of the Purchaser of this
Agreement and, when executed and delivered, each of the Purchaser’s Documents, and the performance by the Purchaser of its obligations under this Agreement, and when executed and delivered, each of the Purchaser’s Documents, has been, or
will be, duly and validly authorized by all necessary actions by the Purchaser. This Agreement and, when executed and delivered, each of the Purchaser’s Documents, constitutes, or will constitute, legal, valid and binding obligations of the
Purchaser, enforceable against the Purchaser in accordance with its and their terms, except to the extent the Seller is in default thereunder. 
  

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 5.2.3 Consents and Approvals; No Conflicts. No filing with, and no permit, authorization, consent
or approval of, any Governmental Authority or other Person is necessary for the execution or delivery by the Purchaser of this Agreement or any of the Purchaser’s Documents, the performance by the Purchaser of any of its obligations under this
Agreement or any of the Purchaser’s Documents, or the consummation by the Purchaser of the transactions described in this Agreement or any of the Purchaser’s Documents. Neither the execution and delivery by the Purchaser of any of the
Purchaser’s Documents, nor the performance by the Purchaser of any of its obligations under any of the Purchaser’s Documents, nor the consummation by the Purchaser of the transactions described in this Agreement, will: (A) violate any
provision of the organizational or governing documents of the Purchaser; (B) violate any Applicable Law to which the Purchaser is subject; or (C) result in a violation or breach of or constitute a default under any contract, agreement or
other instrument or obligation to which the Purchaser is a party or by which any of the Purchaser’s properties are subject. 
  
 5.2.4 Finders and Investment Brokers. The Purchaser has not dealt with any Person who has acted, directly or indirectly, as a broker, agent,
finder, financial adviser or in such other capacity for or on behalf of the Purchaser in connection with the transactions described by this Agreement in any manner which would entitle such Person to any fee or commission in connection with this
Agreement or the transactions described in this Agreement. 
  
 5.2.5 Bankruptcy. None of the Purchaser and/or the partners of the Purchaser are insolvent within the meaning of Title 11 of the United States Code, as amended or (ii) a bankrupt or a insolvent person within the meaning of the
Companies’ Creditors Arrangement Act and/or the Bankruptcy and Insolvency Act (Canada), as amended (all of said statutes being collectively, the “Bankruptcy Code”), and Purchaser has not ceased to pay its debts as they become
due. Purchaser has not filed or taken any action to file a voluntary petition, case or proceeding under any Section or chapter of the Bankruptcy Code, or under any similar law or statute of the United States, of Canada, or any political subdivision
thereof, relating to bankruptcy, insolvency, reorganization, winding up or composition or adjustment of its debts and no such petition, case or proceeding has been filed against it which has not been dismissed, vacated or stayed on appeal and
Purchaser has not been adjudicated as a bankrupt or insolvent or consented to, nor filed an answer admitting or failing reasonably to contest an allegation of bankruptcy or insolvency. Purchaser has not sought, or consented to or acquiesced in, the
appointment of any receiver, trustee, liquidator or other custodian of it or a material part of its assets, and Purchaser has not made or taken any action to make a general assignment for the benefit of creditors or an arrangement, attachment or
execution has been levied and no tax lien or other governmental or similar lien has been filed, against it or a material part of its assets, which has not been duly and fully discharged prior to the date hereof. 
  
 5.2.6 Litigation. The Purchaser has not (i) been served with any
court filing in any litigation which has not been resolved, settled or dismissed and which could otherwise reasonably result in an adverse affect on the Assets, the Businesses, or its rights in the Sublease or Subpermit; or (ii) received
written notice of any claim, charge or complaint from any Governmental Authority or other Person pursuant to any administrative, arbitration or similar adjudicatory proceeding which has not been resolved, settled or dismissed and which could
reasonably result in an adverse affect on the Businesses or the Assets. 
  

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 5.2.7 Subsidiary of CNL Income Properties, Inc. If and when Purchaser assigns this Agreement in
the case of the acquisition of the Skylift Assets on or prior to the Skylift Closing, and in the case of the acquisition of the Cypress Assets on or prior to the Closing Date, each Purchaser designee and assignee is and will be a wholly-owned
subsidiary of CNL Income Properties, Inc. and all representations to that effect that are provided to the Minister of Environment for the purposes of obtaining consent to assignment of the Cypress Permit as contemplated by Section 5.1.5,
shall be true and correct. 
  
 5.2.8 GST. The Purchaser or
the relevant Purchaser’s assignee or designee that acquires the Cypress Assets is, or will at the Closing Date be, a registrant for the purposes of the Excise Tax Act (Canada). 
  
 6. COVENANTS 
  
 6.1. Confidentiality. 
  
 6.1.1 Disclosure of Confidential Information. The Parties acknowledge and agree that the existence of this Agreement,
the terms of this Agreement and any other information disclosed in the Sellers’ Due Diligence Materials, the Purchaser’s Due Diligence Reports or any other documents, materials, data or other information with respect to the Assets or the
Businesses which is not generally known to the public shall be confidential. Nothing herein shall restrict or limit the Seller from communicating with the fee owner of the Skylift Premises, or with representatives of the Province, tenants, contract
parties and others in connection with obtaining estoppels or other required consents or approvals, as may be reasonably necessary to consummate the transactions contemplated under this Agreement, or the Purchaser from contacting Seller’s
company officials, property engineers and architects, and other third party consultants assisting the Purchaser in its investigation of the Real Property, subject to Section 6.1.3. This right notwithstanding, Purchaser shall coordinate
such communication and contact through and with the Sellers. 
  
 6.1.2 Public Announcements. Notwithstanding the foregoing or anything else contained herein or elsewhere: (a) a Party shall have the right to make a public announcement regarding the transactions described in this Agreement,
provided, however, that the Sellers and Purchaser shall approve the timing, form and substance of any such public announcement, which approval shall not be unreasonably withheld, conditioned or delayed, except if a Party is required to make a public
announcement under Applicable Law, in which case no such approval by the other Party shall be required; and (b) confidential information shall not include: (i) information in the possession of the Purchaser not provided by the Sellers;
(ii) public information or information in the public domain at the time of receipt by the Purchaser; (iii) information which becomes public through no fault or act of the Purchaser; (iv) information required to be disclosed by law or
by the rules, orders or regulations of any stock exchange or to enforce any of the Purchaser’s rights hereunder, at law, in equity or by statute; and (v) information received in good faith from a third party lawfully in possession of the
information and not, to the knowledge of the Purchaser, in breach of any confidentiality obligations; and (c) nothing herein contained shall restrict or prohibit the Purchaser from disclosing the Confidential Information to the Purchaser’s
advisors, agents and potential lenders in connection with the services of such Persons relating to this transaction, provided the Purchaser shall apprise such Person of the confidential nature of this transaction. 
  

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 6.1.3 Communication with Governmental Authorities. The Purchaser and its representatives and
consultants shall have the right to review building department, health department and other local Governmental Authority records with respect to the Assets and the operation of the Businesses and, in consultation and coordination with the Sellers,
request written or verbal confirmation of zoning and any other compliance by the Assets or the Businesses with any Applicable Laws. At the request of the Purchaser, the Sellers shall promptly execute and deliver to the Purchaser letters and
authorizations addressed to such applicable Governmental Authorities having jurisdiction as may be requested by the Purchaser or its solicitors from time to time, acting reasonably, authorizing each such Governmental Authority to release to the
Purchaser all information that such authority may have with respect to the Assets but the Sellers will not authorize nor will the Purchaser request any such Governmental Authority to inspect the Real Property. 
  
 6.2. Compliance With Applicable Laws. 
  
 If there exists, prior to the Skylift Closing, with respect to the Skylift
Assets or the Closing with respect to the Cypress Assets, any uncorrected violation of an ordinance, public regulation or statute issued by any Governmental Authority (including any fines, interest or penalties thereon due to non-compliance
therewith) in respect of the Assets or Businesses that the Seller is aware of, the Seller shall use all diligent reasonable commercial efforts to correct such violations prior to Closing and shall indemnify, defend and save the Purchaser harmless
from any claims therefor or any liability, loss, cost or expenses arising therefrom. Nothing contained in this paragraph shall be deemed to limit any rights or remedies the Purchaser may have by reason of a breach of the representations of the
Seller set forth elsewhere in this Agreement. The terms of this paragraph notwithstanding, in the event there is an immaterial departure from a public regulation that the Sellers are not aware of and have not been advised to correct by a
Governmental Authority, then Seller shall not be required to undertake to correct such violations prior to Closing. 
  
 6.3. Conduct of the Business. 
  
 6.3.1 Operation, Maintenance and Repair in Ordinary Course of Business. From the date of this Agreement until the Skylift Closing with respect to
the conduct of the Skylift Business, or the Closing with respect to the Cypress Business, as the case may be, or earlier termination of this Agreement, the Seller shall conduct the Businesses in the Ordinary Course of Business, including, without
limitation, (i) performing maintenance and repairs and making capital improvements to the Real Property and Improvements in the Ordinary Course of Business; and (ii) maintaining insurance coverage consistent with the Seller’s risk
management policies in place as of the date hereof; and (iii) replacing and/or repairing Personal Property in the Ordinary Course of Business. The Seller will use diligent reasonable commercial efforts to preserve intact the Businesses,
organization and Assets of the Seller, to keep available the services of the employees of the Seller and to preserve the goodwill of the suppliers and others having business relations with the Seller. 
  

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 6.3.2 Cypress Permit, Skylift Lease, Tenant Leases, Contracts and Licenses and Rents. From the
date of this Agreement until the Closing or earlier termination of this Agreement, the Seller shall not, without the Purchaser’s prior written consent, amend, extend, renew or terminate the Cypress Permit or the Skylift Lease or any Contracts
or Licenses and Permits, nor enter into any new Contracts, or Licenses and Permits, provided, however, that in the event that Seller is required to act on an emergency basis to enter into any such contract to prevent material damage to the Assets or
their operation, Seller may do so provided that at the earliest possible opportunity it notifies Purchaser of such action and provides Purchaser with copies of any such contracts (or amendments or modifications). Seller covenants and agrees to
deliver to Purchaser, at least five (5) days prior to the Closing Date, copies of any such agreements (or amendments or modifications) entered into by Seller since the date of this Agreement. Seller agrees to comply with the terms of the
Cypress Permit, the Skylift Lease, and all Contracts and Licenses and Permits. 
  
 6.3.3 Title. From the date of this Agreement until the Closing or earlier termination of this Agreement, the Seller shall not create any Title Exception which adversely affects any of the Real Property or
Tangible Personal Property. 
  
 6.3.4 Compliance; Property
Maintenance. Seller shall comply with the Tenant Leases and Contracts and shall continue to make all payments due thereunder prior to delinquency. Seller shall maintain the Real Property and Tangible Personal Property in good condition and
repair in accordance with industry standards, and maintain adequate supplies and inventory, all pursuant to a commercially reasonable and prudent course of business (such obligation to include the maintenance of Seller’s casualty and liability
insurance policies in such course of business), subject to reasonable wear and tear and further subject to destruction by casualty or eminent domain. Seller shall not sell, remove or otherwise dispose of any significant items of Tangible Personal
Property (other than supplies or materials used in connection with the operation or maintenance of the Businesses, which supplies or materials shall be replaced in the ordinary course) unless replaced with an item of like value, quality and utility.

  
 6.3.5 Employees. Seller is and shall remain solely
responsible for all Liabilities with respect to all Employees including, without limitation, the timely payment of all wages and salaries payable to, and all pension and welfare benefits and other fringe benefits accrued with respect to all
individuals employed by the Sellers at the Premises. The foregoing Seller Liabilities includes, but is not limited to, all pension contributions, employee tax, withholding tax, employment insurance, Canada Pension Plan, health tax remittances,
workplace safety and insurance premiums, pay equity payments, vacation pay, holiday pay, all sick pay and/or claims or entitlements for wages, salary or benefits whether arising pursuant to statute, common law, contract, collective agreement or
otherwise. At no time hereunder shall any of the Employees at the Premises be deemed the employees of the Purchaser or deemed to be transferred to the Purchaser. It is expressly understood and agreed that the Purchaser is not and shall not be
responsible or liable, directly or indirectly, for payment of any benefits, severance liability, compensation, pay or other obligations, of whatever nature, due or alleged to be due to any Employee of the Premises. Seller will retain, or hire, all
employees necessary to continue the Businesses after the Skylift Closing or Closing Date, as applicable, in the same manner as prior to the Skylift Closing or Closing in Seller’s capacity as the sublessee or subpermittee of the Real Property.

  

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 6.4. Consents and Approvals. 
  
 The Sellers shall be responsible for obtaining all consents and approvals required for the transfer of the Cypress Permit,
the Skylift Lease and all Contracts, Licenses and Permits (to the extent not Excluded Business Assets) at the Seller’s cost and expense. The Sellers, with Purchaser’s cooperation, shall, as promptly as possible after the execution of this
Agreement, submit all necessary applications and other materials to the appropriate Governmental Authority and the fee owner of the Skylift Premises and take such other actions to effect the transfer of the Cypress Permit, the Skylift Lease and the
Licenses and Permits. Purchaser will promptly provide, at its own cost, all such non-confidential information, data and other information, representations, warranties and assurances as may be reasonably requested or required by Governmental
Authorities in connection with the transfer of the Cypress Permit. Purchaser shall diligently pursue at Purchaser’s sole cost and expense the issuance of new licenses and permits as may be required prior to the Closing, and the Seller shall
reasonably cooperate with the Purchaser to cause any new licenses and permits to be issued to the Purchaser. 
  
 6.5. Notices and Filings. 
  
 The Seller and the Purchaser shall use commercially reasonable efforts to cooperate with each other to provide written notice to any Person under any
tenant leases, including the leases, Contracts or Licenses and Permits and to effect any required registrations or filings with any Governmental Authority or other Person, regarding the change in ownership of the Real Property as may be required by
such Contracts, Licenses and Permits or tenant leases. 
  
 6.6.
Further Assurances. 
  
 From the date of this
Agreement until the Closing or termination of this Agreement, the Seller and the Purchaser shall use commercially reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable
to consummate the transactions described in this Agreement. After the Closing, the Seller and the Purchaser shall use commercially reasonable efforts to further effect the transactions contemplated in this Agreement. 
  
 6.7. Exclusivity. 
  
 Seller covenants and agrees to refrain during the term of this Agreement
from making, accepting, encouraging or soliciting or otherwise pursuing any other offer or proposal or agreement regarding the sale or refinancing of the Real Property or any portion thereof or an interest therein, and will deal exclusively with
Purchaser in good faith towards the completion of the transactions contemplated herein unless this Agreement shall be terminated as provided herein. 
  
 6.8. Bulk Sales. 
  
 Seller, at no expense to Purchaser, shall comply with all applicable “bulk sales laws”, if any, in a timely manner (taking into account the
timing of the Closing). 
  

 29 

 6.9. Use of Name. 
  
 On or prior to the Closing, the Sellers, at the Purchaser’s cost, shall execute an acknowledgement or consent to the
adoption by the Purchaser’s nominee(s) of a name in which the word “Cypress” is used. 
  
 6.10. Patriot Act. 
  
 Sellers, their respective shareholders and principals, shall not transfer the proceeds obtained as a result of this Agreement to any person or entity
listed on the Office of Foreign Assets Control list as “Terrorists” and “Specially Designated Nationals and Blocked Persons”, or otherwise be in violation of the International Money Laundering Abatement and
Financial Anti-Terrorism Act of 2001. 
  
 6.11.
Disclosure. 
  
 Purchaser will notify Seller if to
Purchaser’s Knowledge, any of Seller’s representations or warranties in this Agreement are untrue, and if Seller should request additional information in the Purchaser’s possession related thereto, Purchaser will deliver such to
Seller. The failure of Purchaser to so notify Seller will be a defense as to any claim by Seller for misrepresentation and warranty as to such information as was in Purchaser’s Knowledge prior to the Closing. “Purchaser’s
Knowledge” shall be limited to the actual knowledge of Baxter Underwood, Myron Thomas and Dawn Worth, without independent verification other than the Environmental Report and the Property Condition Report. Failure of Purchaser to disclose shall
not give rise to any liability or obligation of Purchaser, but all such undisclosed information shall be deemed to be a “Post-Execution Disclosure” pursuant to Section 13.12B of this Agreement. Disclosure in any part of this
Agreement or in any Exhibit or Schedule is deemed to be disclosure for all purposes within this Agreement. 
  
 7. CLOSING CONDITIONS 
  
 7.1. Mutual Conditions of Closing. 
  
 The
obligations of either party to close on the sale and purchase of the Cypress Assets described in this Agreement are subject to the satisfaction at or prior to Closing of the following conditions precedent (the “Mutual Closing
Conditions”): 
  
 7.1.1 Injunction. No
preliminary or permanent injunction or other order, decree or ruling shall have been issued by a court of competent jurisdiction or by any Governmental Authority, which would make illegal or invalid or otherwise prevent the consummation of the
transactions described in this Agreement. 
  
 7.1.2 Province
Consent. The appropriate Governmental Authority shall have delivered a consent to the assignment and sale to Purchaser of all of CBRLP’s right, title and interest under the Cypress Permit and the right of CBRLP as sub-permittee to operate
the Business pursuant to the Cypress Permit (the “Cypress Consent”) in substantially the form attached hereto as Exhibit “D” with such changes, acceptable to the Parties hereto, as such Governmental Authority may
reasonably require. 
  

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 7.1.3 Adverse Law. No Applicable Law shall have been enacted or exist that would make illegal or
invalid or otherwise prevent the consummation of the transactions described in this Agreement. 
  
 7.1.4 Acceptable Subpermit and Sublease. The Parties, or, as applicable, their respective nominees, shall have executed and delivered to the other a triple-net Sublease as to the Skylift Assets, and a Subpermit
and Lease as to the Cypress Assets in form and substance acceptable to the Parties, pursuant to which the Seller is given possession of the Real Property and such of the Tangible Personal Property as necessary to operate the Businesses and Purchaser
receives rent in an amount and at times to be defined therein. 
  
 7.1.5 Closing Document Forms. To the extent that the forms of any other documents for delivery at Closing have not been substantially agreed upon as of the date of this Agreement, the Seller and Purchaser shall have agreed by Closing
upon such forms in their entirety, including without limitation the Turnover Agreement and the Subpermit. 
  
 7.1.6 Environmental Issues. Seller and Purchaser shall each have settled, executed and delivered an agreement with respect to certain matters
raised by Purchaser’s consultants in the Environmental Reports with respect to the Cypress Premises which agreement shall be consistent with the terms of the post-closing Environmental Issues Proposal dated concurrently herewith and executed by
both the Seller and the Purchaser.
  
 7.2. Failure of any
Mutual Closing Conditions. 
  
 If any of the Mutual
Closing Conditions are not satisfied at the Closing (a “Mutual Closing Condition Failure”), and either Party shall have the right, on notice to the other, to either (i) terminate this Agreement by providing written notice to
the other, in which case the Parties shall have no further rights or obligations under this Agreement, except those which expressly survive the termination, or (ii) complete the transactions set out herein. 
  
 7.3. Purchaser’s Closing Conditions. 
  
 The Purchaser’s obligations to close the transactions described in this
Agreement are subject to the satisfaction at or prior to, as applicable, the Skylift Closing or the Closing, of the following conditions precedent (the “Purchaser’s Closing Conditions”): 
  
 7.3.1 The Sellers’ Deliveries. All of the Sellers’ Closing
Deliveries shall have been delivered to the Purchaser or deposited with Escrow Agent in the Closing Escrow, to be delivered to the Purchaser at Closing. 
  
 7.3.2 Representations and Warranties. The representations and warranties of the Sellers in this Agreement shall be true and correct in all material
respects as of the Closing. 
  
 7.3.3 Covenants and
Obligations. The covenants and obligations of the Sellers in this Agreement shall have been performed in all material respects. 
  
 7.3.4 Title. With respect to the Skylift Closing, the Title Company shall have irrevocably committed to issue the Title Policy pursuant to
Section 4.2.2 with all standard 
  

 31 

 exceptions deleted and all requirements for issuance of the Title Policy satisfied and deleted. On each Closing Date,
title to the Assets to be conveyed at Closing shall be a good and marketable title, free and clear of all Encumbrances, as required by Section 4. 
  
 7.3.5 Change in Environmental Condition of Real Property. No event shall have occurred following the date of this Agreement and prior to the
Closing Date which would result in a violation of any Environmental Law. 
  
 7.3.6 Adverse Proceedings. No litigation or other court action shall have been commenced which would adversely affect the Assets or the Businesses or which seeks to obtain an injunction or other relief from
such court to enjoin the consummation of the transactions described in this Agreement, and no preliminary or permanent injunction or other order, decree or ruling shall have been issued by a court of competent jurisdiction or by any Governmental
Authority, would make illegal or invalid or otherwise prevent the consummation of the transactions described in this Agreement. 
  
 7.3.7 Opinion of Counsel. The Purchaser shall have received an opinion(s) of counsel for the Sellers, dated as of the Closing Date in a form
reasonably acceptable to Purchaser with such qualifications as Sellers’ counsel deems necessary in order to render such opinion(s). 
  
 7.3.8 VANOC Letter. Prior to the Closing, Seller, using all reasonable commercial efforts and with the reasonable assistance of Purchaser
(including the provision of any non-confidential information regarding the Purchaser that is reasonably requested by VANOC), shall have obtained and delivered to Purchaser a letter consent from VANOC in substantially the form attached hereto as
Exhibit “E.” 
  
 7.4. Failure of Any
Purchaser’s Closing Condition. 
  
 If any of the
Purchaser’s Closing Conditions is not satisfied at the Closing (a “Purchaser’s Closing Condition Failure”), and Seller fails to cure such condition failure within 15 days after written notice is received from Purchaser,
then the Purchaser shall have the right, in the Purchaser’s sole and absolute discretion, to either (i) terminate this Agreement by providing written notice to the Seller, in which case the Parties shall have no further rights or
obligations under this Agreement, except those which expressly survive such termination, or (ii) complete the transactions set out herein, without prejudice to any right or remedy of the Purchaser in respect thereof. 
  
 7.5. Seller’s Closing Conditions. 
  
 The Seller’s obligations to close the transactions contemplated in this
Agreement are subject to the satisfaction at or prior to Closing of the following conditions precedent (the “Seller’s Closing Conditions”): 
  
 7.5.1 Receipt of the Purchase Price. The Purchaser shall have paid to the Seller or deposited with Escrow Agent with
irrevocable written direction to disburse the same to the Seller, the Purchase Price (as adjusted pursuant to Article 9). 
  

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 7.5.2 Purchaser’s Deliveries. All of the Purchaser’s Closing Deliveries shall have been
delivered to the Seller or deposited with Escrow Agent in the Closing Escrow, to be delivered to the Seller at Closing, including without limitation, the Subpermit Agreement and Sublease Agreement, referenced in Section 7.1.4, on
mutually agreeable terms. 
  
 7.5.3 Representations and
Warranties. The representations and warranties of the Purchaser in this Agreement shall be true and correct in all material respects as of the Closing (or as of such other date to which such representation or warranty expressly is made).

  
 7.5.4 Covenants and Obligations. The covenants and
obligations of the Purchaser in this Agreement shall have been performed in all material respects. 
  
 7.5.5 Opinion of Counsel. The Sellers shall have received an opinion(s) of counsel for the Purchaser, dated as of the Closing Date in a form
reasonably acceptable to Sellers with such qualifications as Purchaser’s counsel deems necessary in order to render such opinion(s). 
  
 7.6. Failure of the Seller’s Closing Conditions. 
  
 If a Purchaser’s Closing Condition Failure has not occurred and any of the Seller’s Closing Conditions is not
satisfied at the Closing (a “Seller’s Closing Condition Failure”), and Purchaser fails to cure such condition failure within 15 days after written notice from Seller to Purchaser of such failure (excepting a failure to deliver
the Purchase Price at the Closing for which the cure period shall be two (2) Business Days from such written notice) then the Seller shall have the right, in the Seller’s absolute discretion, to either (i) terminate this Agreement by
providing written notice to the Purchaser, in which case the Parties shall have no further rights or obligations under this Agreement, except those which expressly survive the termination, or (ii) complete the transactions set out herein.

  
 8. SKYLIFT CLOSING AND CLOSING 
  
 8.1. Closing Date. 
  
 The closing of the acquisition of the Skylift Assets and related
transactions shall occur on the date of this Agreement (the “Skylift Closing”). The closing of the acquisition of the Cypress Assets and related transactions shall occur on that date which is mutually agreed to in writing by the
Seller and the Purchaser, but in any event on or before that date which is the earlier of (a) the 10th business day after the Province has issued the Cypress Consent described in Section 7.1.2 of this Agreement, and the VANOC Letter
described in Section 7.3.8 and all other conditions of closing relevant to such acquisition of the Cypress Assets and related transactions set out in Article 7 have been satisfied, or (b) the 180th day after the date of this
Agreement (the “Outside Closing Date”). The date on which the Closing occurs or is scheduled to occur is referred to herein as the “Closing Date”. If the Parties cannot agree on a Closing Date for the Cypress
Assets, the Closing Date will be the Outside Closing Date. The Closing shall occur in Orlando, Florida, or such other place as agreed to in writing between the Seller and the Purchaser. For greater certainty, and as used in this Agreement, the term
“Closing” relates to the closing of the acquisition of the Cypress Assets and related transactions only. 
  

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 8.2. Closing Escrow. 
  
 If the Parties agree to effect the Skylift Closing or the Closing as the case may be, through an escrow, then such closing
shall take place by means of an escrow (the “Closing Escrow”), in which case at or prior to the Skylift Closing or Closing, the Parties shall enter into a closing escrow agreement with the Escrow Agent with respect to the Closing
Escrow in form and substance consistent with the requirements of this Agreement and reasonably acceptable to the Seller, the Purchaser and the Escrow Agent (the “Closing Escrow Agreement”) pursuant to which (i) the applicable
portion of the Purchase Price to be paid by the Purchaser pursuant to Section 3.2 shall be deposited with Escrow Agent, (ii) all of the documents required to be delivered by the Seller and the Purchaser at the Skylift Closing or the
Closing pursuant to this Agreement shall be deposited with Escrow Agent, and (iii) at the Skylift Closing or the Closing, the applicable portion of the Purchase Price (as adjusted pursuant to Article 9) shall be disbursed to the Seller
and the documents deposited into the Closing Escrow shall be delivered to the Seller and the Purchaser (as the case may be) pursuant to the Closing Escrow Agreement. 
  
 8.3. Seller’s Skylift Closing Deliveries. 
  
 At the Skylift Closing, the Seller shall deliver or cause to be delivered to the Purchaser all of the following documents,
each of which shall have been duly executed by the Seller and acknowledged (if required), and other items, set forth in this Section 8.3 (the “Seller’s Skylift Closing Deliveries”), as follows: 
  
 8.3.1 Closing Certificate. Closing certificates, together with
a copy of all appropriate resolutions, consents and approvals. 
  
 8.3.2 Deed. A warranty deed (or its equivalent in the applicable jurisdiction) (with such modifications as are required in the applicable jurisdiction) conveying the Improvements located on the Skylift Premises to the Purchaser,
subject to the Permitted Encumbrances. 
  
 8.3.3 Bill of
Sale. A Bill of Sale transferring to the Purchaser the Tangible Personal Property for the Skylift Assets on the terms set forth therein. 
  
 8.3.4 General Conveyance. A General Conveyance and Assignment of Contracts and Licenses and Permits and Intangible Assets assigning and conveying
to Purchaser the Improvements located at the Skylift Premises and those Contracts and Licenses and Permits and Intangible Assets relating to the Skylift Assets which are not Excluded Business Assets on the terms set forth therein. 
  
 8.3.5 Assignment and Assumption of Skylift Lease. An Assignment and
Assumption of the Skylift Lease with such changes as may be required by the fee owner of the Skylift Premises, and with the written consent of the fee owner required for such assignment. 
  
 8.3.6 Confirmation of Rights to Existing Uses. The Confirmation of Rights executed by the fee owner of the Skylift
Premises and Skylift and the Purchaser. 
  

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 8.3.7 The Sublease. The Sublease for the Skylift Assets described in Section 7.1.4.

  
 8.3.8 Title Requirements. Such agreements, affidavits
or other documents as may be reasonably required by the Title Company from the Seller and/or its legal counsel to issue the Title Policies for the Skylift Premises, and for Seller to deliver good and marketable title to the Real Property and the
Personal Property, free and clear of any Encumbrances, other than Permitted Encumbrances for the Skylift Premises. 
  
 8.3.9 Other Declarations. Any real estate transfer tax declarations or other documents required under Applicable Law in connection with the
conveyance of the Real Property at the Skylift Premises. 
  
 8.3.10 FIRPTA Certificates and Title Affidavits. An affidavit from Skylift with respect to compliance with the Foreign Investment in Real Property Tax Act (Internal Revenue Code Sec. 1445, as amended, and the regulations issued
thereunder) and any similar state tax requirements and an affidavit from the Seller in favor of the Title Company which shall be sufficient to delete the standard exceptions from the title policy that the Seller has not done or caused to be done any
work on the Real Property at the Skylift Premises that has not been paid for and as to which mechanics’ liens or builders’ liens may be filed against the Real Property following the Skylift Closing. 
  
 8.3.11 Original Documents. To the extent not previously delivered to
the Purchaser, all originals (or copies if originals are not available) of the Contracts, Licenses and Permits in connection with the Skylift Assets and the Skylift Premises; subject however to the right of Seller to retain possession or control of
and assume continued responsibility for performance under any of the foregoing that is granted in any Sublease entered into between Seller and Purchaser at the Skylift Closing. 
  
 8.3.12 Closing Statement. The Closing Statement prepared pursuant to Section 9.1 for the Skylift Assets
and an undertaking to re-adjust in connection therewith. 
  
 8.3.13 Authority Documents and Counsel’s Opinion. A corporate resolution, and an incumbency certificate to evidence the capacity and authority of any corporate officer signing on behalf of the Seller, and an opinion of
Seller’s counsel in a form satisfactory to Purchaser. 
  
 8.3.14 Notices to Third Parties. Executed written notices as may be required by Purchaser from the applicable Seller to each party to the Contracts, Licenses or Permits in connection with the Skylift Assets advising such third party
of the transaction. 
  
 8.3.15 Intellectual Property. In
connection with the Skylift Assets only, an Assignment in favor of the Purchaser of the Trademarks and, subject to the provisions of this Agreement, other Intellectual Property used by the Seller in connection with the operation of the Businesses at
the Skylift Premises, subject to rights granted to Seller in any Sublease or other license entered into between Sellers and Purchaser at the Skylift Closing. 
  

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 8.3.16 Property Related Deliveries. At the Skylift Closing, as appropriate to the Skylift Assets
being delivered and to the extent not previously delivered: (1) plans and specifications for the improvements if any exist; (2) all unexpired warranties and guarantees, if any, which Seller has received in connection with any work or
services performed with respect to, or equipment installed in, the Improvements at the Skylift Premises, to the extent available and in Seller’s possession or control; (3) copies of all keys, codes and security devices for the Improvements
at the Skylift Premises, if any; (4) copies of all Contracts affecting the Skylift Businesses that will remain in effect after the Skylift Closing; (5) copies of all Licenses and Permits for the Skylift Assets; (6) certificates of
title if any, which title shall show the transfer of the Skylift Premises and/or the Skylift Assets from Seller to Purchaser; and (7) all other materials necessary for the continuity of the Skylift Businesses, subject to the rights of Sellers
to retain possession or control of and assume continued responsibility for performance under any of the foregoing that is granted in any Sublease, License or Turnover Agent entered into between Sellers and Purchaser at the Skylift Closing.

  
 8.3.17 Certificate of the Sellers. A certificate of an
officer of the Sellers certifying that each of the Sellers’ covenants, representations and warranties in Section 5.1 hereof remains true and accurate as of the Skylift Closing. 
  
 8.3.18 Release. A recordable release or satisfaction in respect of
each Encumbrance in place against any of the Skylift Assets as of the Skylift Closing other than the Permitted Encumbrances; 
  
 8.3.19 Direction. A direction as to the payee or payees of the allocable portion of the Purchase Price for the Skylift Assets as set forth in
Schedule 3.3. 
  
 8.3.20 Consents. All third party
consents, waivers from or notifications to any third Person required under the terms of any of the Contracts or any other agreement affecting the Skylift Premises or otherwise in connection with the conveyance, transfer and assignment of the Skylift
Assets to the Purchaser, other than as may be subject to Section 4.5. 
  
 8.3.21 Buyback Option Agreement. The Buyback Option Agreement and any memorandum in recordable form evidencing the existence thereof. 
  
 8.3.22 Turnover Agreement. The Turnover Agreement as to the Skylift Assets. 
  
 8.3.23 Guaranty. The Guaranty Agreement as to the Skylift Lease.

  
 8.3.24 Other Documents. Such other documents and
instruments as may be reasonably requested by the Purchaser or the Title Company in order to consummate the Skylift Closing. 
  
 8.4. Seller’s Closing Deliveries. 
  
 At the Closing, the Seller shall deliver or cause to be delivered to the Purchaser or deposited with Escrow Agent in the Closing Escrow to be delivered to
the Purchaser at Closing, all of the following documents, each of which shall have been duly executed by the Seller and acknowledged (if required), and other items, set forth in this Section 8.4 (the “Seller’s Closing
Deliveries”), as follows: 
  
 8.4.1 Closing
Certificate. Closing certificates substantially in the form delivered at the Skylift Closing, together with a copy of all appropriate resolutions, consents and approvals. 
  

 36 

 8.4.2 Deed. A warranty deed (or its equivalent in the applicable jurisdiction) substantially in
the form delivered at the Skylift Closing, (with such modifications as are required in the applicable jurisdiction) conveying the Improvements located on the Skylift Premises to the Purchaser, subject to the Permitted Encumbrances. 
  
 8.4.3 Bill of Sale. A Bill of Sale substantially in the form delivered
at the Skylift Closing, transferring to the Purchaser the Tangible Personal Property for the Cypress Assets on the terms set forth therein. 
  
 8.4.4 General Conveyance. A General Conveyance and Assignment of Contracts and Licenses and Permits and Intangible Assets in the form delivered at
Skylift Closing, assigning and conveying to Purchaser the Improvements located at the Cypress Premises and those Contracts and Licenses and Permits and Intangible Assets relating to the Cypress Assets, which are not Excluded Business Assets on the
terms set forth therein (including without limitation, the VANOC Agreement). 
  
 8.4.5 Assignment of Cypress Permit. An Assignment of the Cypress Permit, with the written consent of the Governmental Authority required for such assignment as contemplated by Section 7.1.2.

  

	8.4.6	The Subpermit. The Subpermit and Lease for the Cypress Premises as described in Section 7.1.4. 

  
 8.4.7 Other Declarations. Any real estate transfer tax declarations or
other documents required under Applicable Law in connection with the conveyance of the Real Property at the Cypress Premises. 
  
 8.4.8 Original Documents. To the extent not previously delivered to the Purchaser, all originals (or copies if originals are not available) of the
Contracts, Licenses and Permits in connection with the Cypress Assets; subject however to the right of Seller to retain possession or control of and assume continued responsibility for performance under any of the foregoing that is granted in any
Sub-permit or Lease entered into between Seller and Purchaser at Closing. 
  
 8.4.9 Closing Statement. The Closing Statement prepared pursuant to Section 9.1 for the Cypress Assets and an undertaking to re-adjust in connection therewith. 
  
 8.4.10 Authority Documents and Counsel’s Opinion. A corporate
resolution, and an incumbency certificate to evidence the capacity and authority of any corporate officer signing on behalf of the Seller, and an opinion of Seller’s counsel in a form satisfactory to Purchaser. 
  

 37 

 8.4.11 Notices to Third Parties. Executed written notices as may be required by Purchaser from the
applicable Seller to each party to the Contracts, Licenses or Permits in connection with the Cypress Assets advising such third party of the transaction. 
  
 8.4.12 Intellectual Property. An Assignment in favour of the Purchaser of the Trademarks and, subject to the provisions of this Agreement, other
Intellectual Property used by the Seller in connection with the operation of the Cypress Businesses subject to rights granted to Seller in any Subpermit lease or other license entered into between Sellers and Purchaser at Closing. 
  
 8.4.13 Property Related Deliveries. On the Closing Date, as
appropriate to the Cypress Assets being delivered on such Closing Date and to the extent not previously delivered: (1) plans and specifications for the improvements if any exist; (2) all unexpired warranties and guarantees, if any, which
Seller has received in connection with any work or services performed with respect to, or equipment installed in, the Improvements at the Cypress Premises, to the extent available and in Seller’s possession or control; (3) copies of all
keys, codes and security devices for the Improvements at the Cypress Premises, if any; (4) copies of all Contracts affecting the Cypress Businesses that will remain in effect after the Closing; (5) copies of all Licenses and Permits for
the Cypress Assets; (6) certificates of title if any, which title shall show the transfer of the Cypress Premises and/or the Cypress Assets from Seller to Purchaser; and (7) all other materials necessary for the continuity of the Cypress
Businesses, subject to the rights of Sellers to retain possession or control of and assume continued responsibility for performance under any of the foregoing that is granted in any Sub-permit, Lease, License or Turnover Agent entered into between
Sellers and Purchaser at Closing. 
  
 8.4.14 Certificate of the
Sellers. A certificate of an officer of the Sellers certifying that each of the Sellers’ covenants, representations and warranties in Section 5.1 hereof remains true and accurate as of the Closing Date. 
  
 8.4.15 Discharges. A registrable discharge in respect of each
Encumbrance in place as of the Closing Date against any of the Cypress Assets as of the Closing Date other than the Permitted Encumbrances. 
  
 8.4.16 Direction. A direction as to the payee or payees of the Purchase Price for the Cypress Assets as set forth in Schedule 3.3. 
  
 8.4.17 Consents. All third party consents, waivers from or
notifications to any third Person required under the terms of any of the Contracts or any other agreement affecting the Cypress Premises or otherwise in connection with the conveyance, transfer and assignment of the Cypress Assets to the Purchaser,
other than as may be subject to Section 4.5. 
  
 8.4.18 Turnover Agreement. The Turnover Agreement as to the Cypress Assets. 
  
 8.4.19 Indemnity. The Indemnity Agreement as to the Cypress Leases. 
  
 8.4.20 Other Documents. Such other documents and instruments as may be reasonably requested by the Purchaser or the Title Company in order to
consummate the transactions described in this Agreement. 
  

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 8.5. Purchaser’s Deliveries. 
  
 At the Skylift Closing and/or at the Closing, as applicable, the Purchaser
shall deliver or cause to be delivered to the Seller or deposited with Escrow Agent in the Closing Escrow to be delivered to the Seller all of the documents, each of which shall have been duly executed by the Purchaser and acknowledged (if
required), and other items, set forth in this Section 8.5 (the “Purchaser’s Closing Deliveries”), as follows: 
  
 8.5.1 Purchase Price. The Purchase Price (as adjusted pursuant to Article 9) to be paid by the Purchaser allocable to the Skylift Assets at
the Skylift Closing and allocable to the Cypress Assets at the Closing. 
  
 8.5.2 Closing Certificate. A certificate of an officer of the Purchasers certifying that each of the Purchasers’ covenants, representations and warranties in Section 5.2 hereof remains true and accurate as of the
Skylift Closing and as of the Closing Date. 
  
 8.5.3
Counterpart Execution Documents. A counterpart of each of the documents and instruments to be delivered by the Seller under Section 8.3 and Section 8.4, which requires execution by the Purchaser, including without
limitation the Sublease and Subpermit. 
  
 8.5.4 Authority
Documents. A corporate resolution and an incumbency certificate to evidence the capacity and authority of any corporate officer signing on behalf of the Purchaser and, as applicable, all assignees or designees of the Purchaser as contemplated by
this Agreement. 
  
 8.5.5 License of Intellectual Property.
A license of all Intellectual Property transferred to the Purchaser pursuant to the Assignment set out in Section 8.3.15 or Section 8.4.14, as applicable for each of the Skylift Closing or the Closing, granting the Sellers
the exclusive right and license to use the Intellectual Property in connection with the operation of the Businesses for the term of the Sublease and Subpermit and Lease. 
  
 8.5.6 Option to Purchase. At the Skylift Closing, an option in favor of Sellers (and Boyne USA, Inc.) to repurchase
the Assets as set forth in the Buyback Option Agreement in substantially the form attached as Exhibit “K” which will include an assignment of Intellectual Property and Intangible Assets. 
  
 8.5.7 The Sublease and Subpermit. The Sublease and the Subpermit
described in Section 7.1.4 at each of the Skylift Closing and Closing, as applicable. 
  
 8.5.8 Other Documents. Such other documents and instruments as may be reasonably requested by the Sellers in order to consummate the transactions
described in this Agreement. 
  

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 8.6. Possession. 
  
 8.6.1 Skylift Premises. The Seller shall deliver vacant possession of the Skylift Assets to the Purchaser upon completion of
the Skylift Closing, subject to the rights of Seller to continue possession under the terms and subject to the conditions of any Sublease. 
  
 8.6.2 Cypress Premises. The Seller shall deliver vacant possession of the Cypress Assets to the Purchaser upon completion of the Closing, subject
to the rights of Seller to continue possession under the terms and subject to the conditions of any Subpermit or Lease. 
  
 9. PRORATIONS AND EXPENSES 
  
 9.1. Closing Statement. 
  
 No later than two (2) Business Days prior to the Skylift Closing and the Closing, the Parties, through their respective employees, agents or
representatives, jointly shall make such examinations, audits and inventories of the Real Property as may be necessary to make the adjustments to the Purchase Price as set forth in this Article 9 or any other provisions of this Agreement.
Based upon such examinations, audits and inventories, the Parties jointly shall prepare prior to the Skylift Closing and Closing a closing statement (the “Closing Statement”), which shall set forth their best estimate of the amounts
of the items to be adjusted and prorated under this Agreement. The Closing Statement shall be approved and executed by the Parties at the Skylift Closing in respect of the Skylift Assets and at the Closing in respect of the Cypress Assets, and such
adjustments shall be final with respect to the items set forth in the Closing Statement. 
  
 9.2. No Prorations. 
  
 Seller as the owner of the Skylift Assets prior to the Skylift Closing, and as the sublessee with respect to the Skylift Assets after the Skylift Closing, and as the owner of the Cypress Assets prior to the Closing and as the subpermitee
with respect to the Cypress Assets after Closing, shall be continuously responsible for the payment of the following items: (a) Taxes and assessments; (b) tenant lease expenses and security deposits, if any; (c) Contract rights to
receive and obligations to pay; (d) deposits and fees under any Licenses and Permits; (e) utility expenses; and (f) Trade Payables. Consequently there shall be no proration at Skylift Closing or at the Closing of any of these items
noted in this Section 9.2. 
  
 9.3. Prepaid Ski
Passes. 
  
 To the extent that Seller has collected
income prior to Closing for season ski passes attributable to the 2005-2006 ski season at the Cypress Premises, Seller will be entitled to the benefit of such revenues. 
  
 9.4. Cash and Utility Deposits. 
  
 All cash on hand, escrow and reserve accounts of the Seller, guaranteed investment certificates or other deposit securities,
refunds in respect of reassessments for Taxes pertaining to the Businesses or Assets including any claims for refunds of Taxes paid or Taxes reimbursed 
  

 40 

 from Governmental Authorities., utility or other deposits made by the Seller (other than tenant security deposits and
other deposits), accounts receivable and accounts payable, indebtedness or liabilities for the period prior to the Skylift Closing or Closing Date, as applicable, shall remain the property or responsibility, as applicable, of the Seller. The Seller
shall be responsible for the payment of all expenses on account of services and supplies furnished to and for the benefit of the Real Property before the Skylift Closing or Closing Date, as applicable, and pursuant to the Sublease or Sub-permit
shall be responsible for the payment of all expenses on account of services and supplies furnished to and for the benefit of the Real Property on and after the Skylift Closing or Closing Date, as applicable. 
  
 9.5. Purchaser’s Transaction Costs. 
  
 In addition to the other costs and expenses to be paid by the Purchaser as
set forth elsewhere in this Agreement, the Purchaser shall pay for the following items in connection with this transaction: (i) the fees and expenses incurred by the Purchaser for the Purchaser’s Inspectors or otherwise in connection with
the Inspections; (ii) the fees and expenses of the Purchaser’s attorneys, accountants and consultants; (iii) the costs and expenses incurred in connection with the appraisals described in Section 4.7; (iv) the fees
and expenses incurred by Purchaser in connection with the preparation and issuance of the Title Policy; (v) the fees and expenses for the Survey; (vi) any mortgage tax, title insurance fees and expenses for any loan title insurance
policies, recording charges or other amounts payable in connection with any financing obtained by the Purchaser; (vii) all of the fees and expenses for the Escrow Agent; (viii) all transfer, sales or similar tax and recording charges
payable in connection with the conveyance of the Assets, and (ix) the cost of preparing three (3) years of accounting statements for the Sellers by Purchaser’s auditor’s or an accounting firm approved by Purchaser’s
auditors. 
  
 9.6. Sellers’ Transaction Costs.

  
 The Sellers shall pay for the following items in
connection with this transaction: (i) the fees and expenses of the Sellers’ legal counsel, accountants, and consultants, (ii) any fees or expenses payable for the assignment, transfer or conveyance of any Contracts, Licenses or
Permits; and (iii) the cost of clearing title and filing any documents required for such. 
  
 10. DEFAULT AND REMEDIES 
  
 10.1. A Seller’s Default. 
  
 If, at
or any time prior to Closing, the Seller fails to perform in any material respect its covenants or obligations under this Agreement not excused by Purchaser’s Default (a “Seller’s Default”), and such Seller’s Default
continues for 15 days after Seller’s receipt of written notice from the Purchaser then the Purchaser may elect, as its sole and exclusive remedy, to (a) terminate this Agreement, in which case the Parties shall have no further rights or
obligations under this Agreement, except those which expressly survive such termination and shall be returned the Deposit, or (b) proceed to Closing without any reduction in or setoff against the Purchase Price, or (c) obtain a court order
for specific performance; or (d) pursue any other remedy available at law or in equity. 
  

 41 

 10.2. Purchaser’s Default. 
  
 If at any time prior to Closing, the Purchaser fails to perform in any
material respect any of its covenants or obligations under this Agreement which breach or default is not caused or excused by a Seller’s Default (a “Purchaser’s Default”), and such Purchaser’s Default continues for 15
days after Purchaser’s receipt of written notice from the Seller and no material Seller’s Default has occurred which remains uncured, then the Seller may elect, as its sole and exclusive remedy, (a) to terminate this Agreement by
providing written notice to the Purchaser, in which case the Parties shall have no further rights or obligations under this Agreement, except that Seller may as its sole and exclusive remedy hereunder for such default recover and be delivered the
Deposit as full and adequate liquidated damages; or (b) waive such default and proceed to Closing pursuant to this Agreement; or (c) obtain a court order for specific performance. 
  
 10.3. No Punitive or Consequential Damages. 
  
 Notwithstanding anything herein to the contrary, no Party shall be liable to
any other Party under this Agreement for punitive or lost profits or other consequential damages. 
  
 11. FIRE OR OTHER CASUALTY; CONDEMNATION 
  
 11.1. Notice. 
  
 Seller agrees to give Purchaser prompt notice of any fire or other casualty occurring at the Premises between the date hereof and the date of the Closing provided for hereunder, or of any actual or threatened condemnation of all or part of
the Assets, or any appurtenance thereto, or of any actual, proposed or threatened modification or termination of the current access to or from the Premises. 
  
 11.2. Material Casualty or Condemnation. 
  
 If prior to the Closing there shall occur (i) damage to the Assets caused by fire or other casualty which would cost $100,000.00 or more to repair;
or (ii) the taking by condemnation of all or such portion of the Premises as would materially interfere with Purchaser’s use and enjoyment thereof; or (iii) a material adverse modification to or termination of the current access to or
from the Premises or of sewer or other utility service, then, and in any such event, Purchaser may terminate this Agreement by written notice given to Seller within twenty (20) days after Purchaser has received the notice referred to in
Section 11.1 hereof, or at the Closing, whichever is earlier, in which event the parties shall be released from any further obligations under this Agreement. If Purchaser does not elect to terminate this Agreement, then the Closing shall
take place as herein provided without abatement of the Purchase Price, and there shall be assigned to Purchaser at the Closing all of Seller’s interest in any insurance proceeds or condemnation awards which may be payable to Seller on account
of any such fire, casualty or condemnation and Purchaser shall receive a credit at Closing in an amount equal to any such insurance proceeds or condemnation awards paid to Seller prior to Closing and not expended in repair or replacement of the
Assets together with a credit in the amount of the deductible under such policy of insurance. 
  

 42 

 11.3. Non-material Casualty or Condemnation. 
  
 If prior to the Closing there shall occur (i) damage to the Assets
caused by fire or other casualty which would cost less than $100,000.00 to repair, which damage is fully insured and for which there shall be business interruption insurance to cover loss of business therefrom by Purchaser after Closing, or
(ii) the taking by condemnation of a portion of the Premises which is not material to the use or enjoyment thereof; then, and in either such event, Purchaser shall have no right to terminate this Agreement, but there shall be assigned to
Purchaser at the Closing all interest in any insurance proceeds or condemnation awards which may be payable to Seller on account of any such fire, casualty or condemnation, and Purchaser shall receive a credit at Closing in an amount equal to any
such insurance proceeds or condemnation awards paid to Seller prior to Closing and not expended in repair or replacement of the Assets together with a credit in the amount of the deductible under such policies of insurance, it being the intention of
the parties that, except for ordinary wear and tear, Purchaser shall be entitled to acquire the Premises as of the Closing, in the same condition it is in at the Effective Date of this Agreement or Purchaser shall be entitled to receive at Closing
sufficient funds from the condemner, the insurer or Seller to restore the Premises. In the event that the condemnations award or the insurance proceeds are not adequate to restore the Premises to its condition as of the Effective Date of this
Agreement Purchaser may cancel this Agreement, in which event the parties hereto shall be automatically released from any further obligations under this Agreement unless Seller agrees to give Purchaser a credit at Closing in an amount equal to the
shortfall in the insurance or condemnation proceeds required to restore the Premises. 
  
 11.4. Risk Of Loss. 
  
 Except as otherwise expressly provided in this Article 11, all risk of loss or damage to the Assets or any part thereof by fire or any casualty, from the date hereof until the Closing provided for herein, shall remain on Seller.

  
 12. SURVIVAL, INDEMNIFICATION AND RELEASE 
  
 12.1. Survival. 
  
 The representations and warranties, covenants and obligations (including
without limitations obligations of defense and indemnification) of Seller and Purchaser shall survive the Skylift Closing or the Closing, as applicable, for two (2) years thereafter, unless a claim is made and action instituted prior to the end
of such survival period in which event the survival period shall extend until the final resolution of such claim. 
  
 12.2. Indemnification by each of the Sellers. 
  
 Subject to the limitations set forth in this Article 12 and any other express provision of this Agreement, the applicable Seller shall indemnify
and hold harmless the Purchaser’s Indemnity from and against any Indemnification Loss incurred by any Purchaser Indemnitee to the extent resulting from (i) any breach of any representation or warranty of such Seller in this Agreement,
(ii) any breach by such Seller of any of its respective covenants or obligation under this Agreement; and (iii) any Retained Liabilities of such Seller. 
  

 43 

 12.3. Indemnification by Purchaser. 
  
 Subject to the limitations set forth in this Article 12, the
Purchaser shall indemnify and hold harmless the Seller’s Indemnitees from and against any Indemnification Loss incurred by any Seller’s Indemnitee to the extent resulting from (i) any breach of any representation or warranty of the
Purchaser in this Agreement which expressly survives the Closing or termination of this Agreement (as the case may be), and (ii) any breach by the Purchaser of any of its covenants or obligations under this Agreement which expressly survives
the Closing or termination of this Agreement (as the case may be). 
  
 12.4. Indemnification Procedure. 
  
 12.4.1 Notice of Indemnification Claim. If any of the Seller Indemnitees or the Purchaser’s Indemnitees (as the case may be) (each, an “Indemnitee”) is entitled to defense or indemnification under any other
provision in this Agreement (each, an “Indemnification Claim”), the Party required to provide defense indemnification to such Indemnitee (the “Indemnitor”) shall not be obligated to defend, indemnify and hold
harmless such Indemnitee unless and until such Indemnitee provides written notice to such Indemnitor promptly after such Indemnitee has actual knowledge of any facts or circumstances on which such Indemnification Claim is based or a Third-Party
Claim is made on which such Indemnification Claim is based, describing in reasonable detail such facts and circumstances or Third-Party Claim with respect to such Indemnification Claim. 
  
 12.4.2 Resolution of Indemnification Claim Not Involving Third-Party Claim. If the Indemnification Claim does not
involve a Third-Party Claim and is disputed by the Indemnitor, the dispute shall be resolved by litigation or other means of alternative dispute resolution as the Parties may agree in writing. 
  
 12.4.3 Resolution of Indemnification Claim Involving Third-Party
Claim. If the Indemnification Claim involves a Third-Party Claim, the Indemnitor shall have the right (but not the obligation) to assume the defense of such Third-Party Claim, at its cost and expense, and shall use good faith efforts consistent
with prudent business judgment to defend such Third-Party Claim, provided that (i) the counsel for the Indemnitor who shall conduct the defense of the Third-Party Claim shall be reasonably satisfactory to the Indemnitee (unless selected by
Indemnitor’s insurance company, in which case Indemnitee shall have no such approval rights), (ii) the Indemnitee, at its cost and expense, may participate in, but shall not control, the defense of such Third-Party Claim, and
(iii) the Indemnitor shall not enter into any settlement or other agreement which requires any performance by the Indemnitee, other than the payment of money which shall be paid by the Indemnitor. The Indemnitee shall not enter into any
settlement agreement with respect to the Indemnification Claim, without the Indemnitor’s prior written consent. If the Indemnitor elects not to assume the defense of such Third-Party Claim, the Indemnitee shall have the right to retain the
defense of such Third-Party Claim and shall use good faith efforts consistent with prudent business judgment to defend such Third-Party Claim in an effective and cost-efficient manner. 
  
 12.4.4 Accrual of Indemnification Obligation. Notwithstanding anything to the contrary in this Agreement, the
Indemnitee shall have no right to indemnification against the 
  

 44 

 Indemnitor for any Indemnification Claim which (i) does not involve a Third-Party Claim but is disputed by
Indemnitor until such time as such dispute is resolved by written agreement or other means as the Parties otherwise may agree in writing, or (ii) which involves a Third-Party Claim until such time as such Third-Party Claim is concluded,
including any appeals with respect thereto. 
  
 12.4.5 No
Duplication. The Sellers shall not be liable to the Purchaser Indemnitees nor required to indemnify such Purchaser Indemnitees, pursuant to this Article 12 if, under the provisions of the Sub-permit for the Cypress Premises or the
Sublease for the Skylift Premises, as the case may be, such Seller is required to indemnify the Purchaser Indemnitees, or any of them thereunder. 
  
 12.4.6 Arbitration of Claims. The parties agree that if an Indemnification Claim or the amount thereof is disputed, no litigation will be commenced
for thirty (30) days after notification of the Indemnification Claim, during which period the parties shall seek in good faith to negotiate a resolution of such claim. If for any reason the parties are unable to agree on a mutually satisfactory
resolution of the claim, then the claiming party may institute arbitration or litigation for recovery of such claim with none of the settlement negotiations discoverable or in any way a matter of evidence in such arbitration or litigation, as
follows: 
  
 i. if the amount of the Indemnification Claim is
less than $250,000, the Parties will refer the matter to binding arbitration pursuant to Section 12.7 of this Agreement; or 
  
 ii. if the amount of the Indemnification Claim is $250,000 or more, then the claiming party may institute litigation for recovery of such claim with none
of the settlement negotiations discoverable or in any way a matter of evidence in such litigation. 
  
 12.5. Limitation on Claim. 
  
 The Sellers shall only be liable to indemnify the Purchaser Indemnitees and the Purchaser shall only be liable to indemnify the Seller Indemnitees
hereunder for (i) an individual claim that is greater than US$25,000.00, or (ii) claims which in the aggregate exceed $25,000.00, or (iii) claims aggregating an amount which is less than $25,000.00 which have not been resolved in a
mutually satisfactory manner as of the sixtieth day prior to the second anniversary of the Closing Date. The maximum aggregate liability of the Sellers to the Purchaser Indemnitees or the Purchaser to the Seller Indemnitees hereunder, as the case
may be, shall not exceed the Purchase Price, together (without duplication) with all costs and expenses incurred in connection with the negotiation of this Agreement, due diligence investigation of the investment, and the transactions contemplated
herein. In no event shall either Party be liable to the other for consequential, business loss, special, incidental or punitive costs or loss even if such cost or loss was reasonably foreseeable. 
  
 12.6. Exclusive Remedy for Indemnification Loss. 
  
 Except for claims based on fraud, the indemnification provisions in this
Article 12 shall be the sole and exclusive remedy of any Indemnitee with respect to any claim for Indemnification Loss arising from or in connection with this Agreement. 
  

 45 

 12.7. Arbitration. 
  
 If a dispute arises which this Agreement requires be referred to binding arbitration, or which the parties otherwise agree
will be settled through a binding arbitration, then the parties covenant and agree with each other as follows: 
  
 12.7.1 Each party will designate a senior manager or officer to review and make reasonable efforts to develop a workable resolution to the dispute or
disagreement. The communications in any such attempts to settle shall be privileged in any subsequent proceedings or action, and the failure to arrive at a resolution shall give rise to no claim by either party, whether or not a party arguably
failed to make a reasonable effort. 
  
 12.7.2 Either party to a
dispute or disagreement may at any time refer the dispute or disagreement, including a dispute or disagreement which is under review pursuant to Section 12.6.1 for determination by arbitration in accordance with the following:

  
 A. The arbitration will be conducted by a sole arbitrator
agreed by the parties to the dispute unless the parties fail to agree on such sole arbitrator within ten (10) Business Days of the giving of the notice of arbitration or the parties agree that the arbitration should be conducted by a panel of
three (3) arbitrators. 
  
 B. If the parties fail to agree
on a sole arbitrator pursuant to the above, or agree to have a panel of three (3) arbitrators conduct the arbitration: 
  
 i. each party will promptly select an arbitrator and the two (2) arbitrators will then promptly select a third arbitrator; 
  
 ii. if either party fails to select an arbitrator within seven
(7) Business Days of the notice of arbitration the arbitrator selected by the other party will act as the sole arbitrator; 
  
 iii. if the arbitrator selected by the parties fails to select a third arbitrator within ten (10) Business Days of the later of their appointments,
either party may apply to the American Arbitration Association for the appointment of a third arbitrator; 
  
 C. The decision of a majority of the arbitrators or the sole arbitrator, as the case may be, including any decision as to costs, will be final and binding
upon the parties but will not be a precedent in any subsequent arbitration under this Lease. 
  
 D. Except as expressly provided herein, all arbitrations will be conducted according to the laws governing commercial arbitrations in Tennessee if the dispute involves Skylift Assets or in British Columbia if the
dispute involves Cypress Assets. 
  
 E. Any dispute referred to
arbitration will be dealt with on an expeditious basis with both parties using all commercially reasonable efforts to obtain and implement a timely decision of the arbitrator or arbitrators. 
  

 46 

 F. All references to currency in this Section 12.7 shall mean United States Dollars unless
otherwise expressly provided. 
  
 13. MISCELLANEOUS PROVISIONS 

 
 13.1. Notices. 
  
 13.1.1 Method of Delivery. All notices, requests, demands and other
communications required to be provided by any Party under this Agreement (each, a “Notice”) shall be in writing and delivered, at the sending Party’s cost and expense, by (i) personal delivery, (ii) certified U.S.
mail, with postage prepaid and return receipt requested, (iii) overnight courier service, or (iv) facsimile transmission, with a verification copy sent on the same day by any of the methods set forth in clauses (i) or (iii), to the
recipient Party at the following address or facsimile number: 
  

			
	If to the Seller:	  	Boyne USA, Inc.
	 	  	1 Boyne Mountain Road
	 	  	P.O. Box 19
	 	  	Boyne Falls, MI 49713
	 	  	Attn: Roland Andreasson, Chief Financial Officer
	 	  	Fax: (231) 549-6094
	 	  	Telephone: (231) 675-7241
		
	With a copy to:	  	Lawson Lundell LLP
	 	  	Barristers & Solicitors
	 	  	1600 – 925 West Georgia St.
	 	  	Vancouver, British Columbia V6C 3L2
	 	  	Attention: Valerie C. Mann, Esq.
	 	  	Fax: 604-669-1620
	 	  	Phone: 604-685-3456
		
	If to the Purchaser:	  	CNL Income Partners, LP
	 	  	450 S. Orange Avenue, 5th Floor
	 	  	Orlando, Florida 32801
	 	  	Attention: Tammie A. Quinlan, Chief Financial Officer
	 	  	Attention: Amy Sinelli, General Counsel
	 	  	Fax: 407-650-1058
	 	  	Phone: 407-650-1000

  

 47 

			
	With a copy to:	  	Lowndes, Drosdick, Doster, Kantor & Reed, P.A.
	 	  	215 N. Eola Drive
	 	  	Orlando, Florida 32801
	 	  	Attn: Michael Ryan, Esq.
	 	  	Fax: (407) 843-4444
	 	  	Phone: (407) 843-4600

  
 13.1.2 Receipt of
Notices. All Notices sent by a Party (or its counsel pursuant to Section 13.1.1 under this Agreement shall be deemed to have been received by the Party to whom such Notice is sent upon (i) delivery to the address or facsimile
number of the recipient Party, provided that such delivery is made prior to 5:00 p.m. (local time for the recipient Party) on a Business Day, otherwise the following Business Day, or (ii) the attempted delivery of such Notice if (A) such
recipient Party refuses delivery of such Notice, or (B) such recipient Party is no longer at such address or facsimile number, and such recipient Party failed to provide the sending Party with its current address or facsimile number pursuant to
Section 13.1.3. 
  
 13.1.3 Change of Address.
The Parties and their respective counsel shall have the right to change their respective address and/or facsimile number for the purposes of this Section 13.1 by providing a Notice of such change in address and/or facsimile number as
required under this Section 13.1. 
  
 13.1.4
Delivery by Party’s Counsel. The Parties agree that the attorney for each Party shall have the authority to deliver Notices on such Party’s behalf to the other Party hereto. 
  
 13.2. Time is of the Essence. 
  
 Time is of the essence of this Agreement; provided, however, that
notwithstanding anything to the contrary in this Agreement, if the time period for the performance of any covenant or obligation, satisfaction of any condition or delivery of any Notice or item required under this Agreement shall expire on a day
other than a Business Day, such time period shall be extended automatically to the next Business Day. 
  
 13.3. Assignment. 
  
 Neither the Seller nor the Purchaser shall assign this Agreement or any interest therein to any Person, without the prior written consent of the other
Party which consent may be withheld in the other Party’s sole discretion, except however, the Purchaser shall have the right to designate a wholly-owned subsidiaries to receive title or may assign this Agreement and the right to receive title
to all or any portion of the Assets to any Affiliate of Purchaser by providing written notice to the Seller no later than three (3) Business Days prior to the Closing; provided, however, that (a) such designation or assignment shall not be
effective until the Purchaser has provided the Seller with a fully executed copy of such designation or assignment and assumption instrument, and (b) no such assignment will relieve the Purchaser from any of its duties or obligations arising
under this Agreement at or prior to Closing. 
  

 48 

 13.4. Successors and Assigns. 
  
 This Agreement shall be binding upon and inure to the benefit of the
Parties, and their respective successors and permitted assigns. 
  
 13.5. Third Party Beneficiaries. 
  
 This
Agreement shall not confer any rights or remedies on any Person other than (i) the Parties and their respective successors and permitted assigns, and (ii) any Indemnitee to the extent such Indemnitee is expressly provided any right of
defense or indemnification in this Agreement. 
  
 13.6.
Rules of Construction. 
  
 The following rules shall
apply to the construction and interpretation of this Agreement: 
  
 13.6.1 Singular words shall connote the plural as well as the singular, and plural words shall connote the singular as well as the plural, and the masculine shall include the feminine and the neuter, as the context may require. 

 
 13.6.2 All references in this Agreement to particular articles, sections,
subsections or clauses (whether in upper or lower case) are references to articles, sections, subsections or clauses of this Agreement. All references in this Agreement to particular exhibits or schedules (whether in upper or lower case) are
references to the exhibits and schedules attached to this Agreement, unless otherwise expressly stated or clearly apparent from the context of such reference. 
  

13.6.3 The headings in this Agreement are solely for convenience of reference and shall not constitute a part of this Agreement nor shall they affect
its meaning, construction or effect. 
  
 13.6.4 Each Party and its
counsel have reviewed and revised (or requested revisions of) this Agreement and have participated in the preparation of this Agreement, and therefore any rules of construction requiring that ambiguities are to be resolved against the Party which
drafted the Agreement or any exhibits hereto shall not be applicable in the construction and interpretation of this Agreement or any exhibits hereto. 
  
 13.6.5 The terms “sole discretion” and “absolute discretion” with respect to any determination to be made a Party under this Agreement
shall mean the sole and absolute discretion of such Party, without regard to any standard of reasonableness or other standard by which the determination of such Party might be challenged. 
  
 13.7. Severability. 
  

If any term or provision of this Agreement is held to be or rendered invalid or unenforceable at any time in any jurisdiction, such term or provision
shall not affect the validity or enforceability of any other terms or provisions of this Agreement, or the validity or enforceability of such affected term or provision at any other time or in any other jurisdiction. 
  

 49 

 13.8. Jurisdiction and Venue. 
  
 This Agreement shall be governed by, and construed and interpreted in
accordance with, the laws of the State of Florida. The parties hereto agree to submit to the jurisdiction of British Columbia in connection with any claims or controversy arising out of this Agreement that relate to the Cypress Assets and to
Tennessee in connection with any claims arising out of this Agreement that relate to the Skylift Assets and each of the Seller (for itself and all Seller’s Indemnitees) and Purchaser (for itself and all Purchaser’s Indemnitees) hereby
submit to jurisdiction in such courts, and waive any defense based on forum non conveniens, provided that any Party may seek injunctive relief or specific performance with respect to any of the Assets in the courts of the State or Province in which
the Assets are situated and may incorporate a claim against the Seller of such Asset with respect to any claim for injunctive relief or specific performance. 
  
 13.9. Waiver of Trial by Jury. 
  
 Each Party hereby waive its right to a trial by jury in any litigation or other court proceeding with respect to any matter arising from or in connection
with this Agreement. 
  
 13.10. Prevailing Party.

  
 If any litigation or other court action, arbitration or
similar adjudicatory proceeding is commenced by any Party to enforce its rights under this Agreement against any other Party, all fees, costs and expenses, including, without limitation, reasonable attorneys fees and court costs, incurred by the
prevailing Party in such litigation, action, arbitration or proceeding shall be reimbursed by the losing Party; provided, that if a Party to such litigation, action, arbitration or proceeding prevails in part, and loses in part, the court,
arbitrator or other adjudicator presiding over such litigation, action, arbitration or proceeding shall award a reimbursement of the fees, costs and expenses incurred by such Party on an equitable basis. 
  
 13.11. Incorporation of Recitals, Exhibits and Schedules.

  
 The recitals to this Agreement, and all exhibits and
schedules (as amended, modified and supplemented from time to time pursuant to Section 13.14) referred to in this Agreement are incorporated herein by such reference and made a part of this Agreement. Any matter disclosed in any Schedule
to this Agreement shall be deemed to be incorporated in all other schedules to this Agreement. 
  
 13.12. Updates of Schedules. 
  
 The Seller shall promptly amend and supplement any Schedule to this Agreement as to the Cypress Assets from time to time prior to Closing to the extent that (i) such Schedule needs to be amended or supplemented
to maintain the truth or accuracy of the applicable representation or warranty or the information disclosed therein, and (ii) the Seller did not have Seller’s Knowledge as of the time the original Schedule was delivered to the Purchaser of
the matter being disclosed in such amendment or supplement by providing a written copy of such amendment or supplement to the Purchaser. If the Seller makes any amendment or supplement to the schedules after the date of this Agreement (a
“Post-Execution Disclosure”), then so long 
  

 50 

 as said Post-Execution disclosure is accepted by the Purchaser in the Purchaser’s sole discretion (A) such
Post-Execution Disclosure shall, only if it is material, constitute a Purchaser’s Closing Condition Failure pursuant to Section 7.4 and (B) if the Purchaser proceeds to Closing notwithstanding such Post-Execution Disclosure,
the corresponding representation, warranty or other information shall be deemed qualified by such Post-Execution Disclosure for the purposes of limiting the defense and indemnification obligations of the Seller under this Agreement. 
  
 13.13. Entire Agreement. 
  
 This Agreement and the agreements to be executed and delivered in connection
herewith set forth the entire understanding and agreement of the Parties hereto and shall supersede any other agreements and understandings (written or oral) between the Parties on or prior to the date of this Agreement with respect to the
transactions described in this Agreement. 
  
 13.14.
Amendments, Waivers and Termination of Agreement. 
  
 Except as set forth in Section 13.13, no amendment or modification to any terms or provisions of this Agreement, waiver of any covenant, obligation, breach or default under this Agreement or termination of this Agreement (other
than as expressly provided in this Agreement), shall be valid unless in writing and executed and delivered by each of the Parties. 
  
 13.15. Tax Disclosures. 
  
 Notwithstanding anything in this Agreement to the contrary, in accordance with Section 1.6011-4(b)(3)(iii) of the Treasury Regulations, Purchaser and
Seller (and each employee, representative, or other agent of Purchaser and Seller) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the transactions contemplated by this Agreement and all
materials of any kind (including opinions or other tax analyses) that are provided to Purchaser or Seller relating to such tax treatment and tax structure. However, any information relating to tax treatment or tax structure shall remain subject to
the confidentiality provisions hereof (and the foregoing sentence shall not apply) to the extent, but only to the extent, reasonably necessary to enable Purchaser and Seller to comply with applicable securities laws. For purposes hereof, “tax
structure” means any fact that may be relevant to understanding the federal income tax treatment of the transaction. 
  
 13.16. Joinder by Boyne. 
  
 Boyne USA, Inc. (“Boyne”) joins in the execution of this Agreement solely for the purpose of confirming and agreeing that, pursuant to
that certain term sheet entered into between the Purchaser and Boyne USA, Inc., Boyne USA, Inc. will execute and deliver a Guaranty Agreement at each closing as contemplated herein by which Boyne will guaranty (or in Canada, indemnify) with respect
to the payment by the relevant tenant under the Sublease or Sub-permit, as the case may be, of the Minimum Rent payments under the Sub-permit or Sublease (as the term “Minimum Rent” is defined therein, respectively) for a period of four
(4) years immediately following the Closing Date. 
  

 51 

 13.17. Multiple Purchasers. 
  
 Notwithstanding the foregoing or anything else contained herein or elsewhere, the Sellers acknowledge and agree that the
Purchaser may in the Purchaser’s sole discretion, direct title to each Asset and/or any combination of the Assets to different Persons and/or combinations of Persons controlled by the Purchaser as designated by the Purchaser, from time to time
provided that the representations and warranties of the Purchaser with respect to such Persons contained herein and made to the Sellers and to the Minister of Environment remain true and correct. In such an event, all documentation shall be prepared
and delivered by the Sellers to the appropriate purchaser on an Asset-by-Asset basis. Upon the Skylift Closing and delivery of the Skylift Assets to Purchaser’s Affiliates, Purchaser shall have no further obligation or liability under this
Agreement to Seller with respect to the Skylift Assets; upon Closing and delivery of the Cypress Assets to Purchaser’s Affiliates, Purchaser shall have no further obligation or liability under this Agreement. 
  
 13.18. Execution of Agreement. 
  
 A Party may deliver executed signature pages to this Agreement by facsimile
transmission to any other Party, which facsimile copy shall be deemed to be an original executed signature page. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which counterparts
together shall constitute one agreement with the same effect as if the Parties had signed the same signature page. 
  
 [SIGNATURES ON FOLLOWING PAGE] 
  

 52 

 IN WITNESS WHEREOF, each Party has caused this Agreement to be executed and delivered in its name by a
duly authorized officer as of the date first set forth above. 
  

											
	WITNESSES:	 	 	 	SELLER:
			
	 	 	 	 	 GATLINBURG SKYLIFT, LLC,
 a
Michigan limited liability company

				
	 /s/ Shamira Bartley

	 	 	 	By:	 	 /s/ Stephen M. Kircher

	Name:	 	 Shamira Bartley

	 	 	 	Name:	 	Stephen M. Kircher
				
	 /s/ John C. White

	 	 	 	Title:	 	President
	Name:	 	 John C. White

	 	 	 	 	 	 
	 	 	 	 	 	 	 CYPRESS BOWL RECREATIONS LIMITED
 PARTNERSHIP, a British Columbia limited partnership

					
	 	 	 	 	 	 	By:	 	 its general partner Cypress Bowl, ULC, 
 an unlimited liability company under the
 laws of Nova Scotia 

					
	
	 	 	 	 	 	By:	 	 /s/ John E. Kircher

	Name:	 	
	 	 	 	 	 	Name:	 	John E. Kircher
					
	
	 	 	 	 	 	Title:	 	  

	Name:	 	
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	PURCHASER:
					
	 	 	 	 	 	 	 	 	 CNL INCOME PARTNERS, LP., a
 Delaware limited partnership

					
	 	 	 	 	 	 	By:	 	 its general partner CNL Income GP
 Corp.,
a Delaware corporation

					
	 /s/ Shamira Bartley

	 	 	 	 	 	By:	 	 /s/ Tammie A. Quinlan

	Name:	 	 Shamira Bartley

	 	 	 	 	 	Name:	 	Tammie A. Quinlan
					
	 /s/ John C. White

	 	 	 	 	 	Title:	 	Executive Vice President
	Name:	 	 John C. White

	 	 	 	 	 	 	 	 

  
 [SIGNATURES
CONTINUED ON FOLLOWING PAGE] 
  

 53 

			
	 BOYNE:

	
	 BOYNE USA, Inc., a Michigan corporation

		
	 By:
	 	 /s/ Stephen M. Kircher

	 Name:
	 	Stephen M. Kircher
	 Title:
	 	President of Eastern Operations

  

 54Sublease Agreement

 Exhibit 10.2 
  
 SUBLEASE AGREEMENT 
  
 DATED AS OF DECEMBER 22, 2005 
  
 BY AND BETWEEN 
  
 CNL GATLINBURG PARTNERSHIP, LP 
  
 AS LANDLORD, 
  
 AND

  
 GATLINBURG SKYLIFT, LLC 
  
 AS TENANT 

 TABLE OF CONTENTS 
  

							
	 	  	 	  	Page

	 1.
	  	DEFINITIONS	  	2
	 	  	1.1.	  	Definitions.	  	2
	 	  	1.2.	  	Affiliates	  	20
			
	2.	  	SUBLEASE AND TERM	  	21
	 	  	2.1.	  	Sublease	  	21
	 	  	2.2.	  	Lease of Improvements and Personal Property	  	21
	 	  	2.3.	  	Fixed Term	  	22
	 	  	2.4.	  	Extension Terms	  	22
			
	 3.
	  	RENT	  	22
	 	  	3.1.	  	Rent	  	22
	 	  	3.2.	  	Confirmation of Percentage Rent	  	24
	 	  	3.3.	  	Personal Property.	  	25
	 	  	3.4.	  	Additional Charges	  	27
	 	  	3.5.	  	Payment of Impositions.	  	28
	 	  	3.6.	  	Late Payment of Rent, Etc	  	31
	 	  	3.7.	  	Triple Net Lease	  	31
	 	  	3.8.	  	Sales Tax	  	33
	 	  	3.9.	  	Deposit of Prepaid Minimum Rent	  	34
			
	 4.
	  	USE OF THE PREMISES	  	35
	 	  	4.1.	  	Permitted Use.	  	35
	 	  	4.2.	  	Compliance with Legal/Insurance Requirements, Etc	  	36
	 	  	4.3.	  	Environmental Matters.	  	37
	 	  	4.4.	  	Negative Covenants	  	37
	 	  	4.5.	  	Nature Of Relationship	  	39
	 	  	4.6.	  	Application of Ground Lease	  	39
	 	  	4.7.	  	Equipment Lease	  	40
	 	  	4.8.	  	Asset Purchase Agreement Obligations	  	40
			
	 5.
	  	REPAIRS, MAINTENANCE AND REPLACEMENTS	  	41
	 	  	5.1.	  	Repairs and Maintenance Costs.	  	41
	 	  	5.2.	  	Capital Renewals Reserve.	  	43
	 	  	5.3.	  	Capital Expenditures Exceeding Capital Renewals Reserve	  	45
	 	  	5.4.	  	Ownership of Replacements	  	46
	 	  	5.5.	  	Yield Up	  	46
	 	  	5.6.	  	Management Matters	  	47
			
	 6.
	  	IMPROVEMENTS, ETC.	  	48
	 	  	6.1.	  	No Liens	  	48
	 	  	6.2.	  	Salvage	  	48

  

 - i - 

							
			
	 7.
	  	LIENS	  	48
			
	 8.
	  	PERMITTED CONTESTS	  	49
			
	 9.
	  	INSURANCE	  	50
	 	  	9.2.	  	General Insurance Provisions.	  	52
	 	  	9.3.	  	Costs and Expenses.	  	54
	 	  	9.4.	  	Waiver of Subrogation	  	54
	 	  	9.5.	  	Indemnification of Landlord	  	55
	 	  	9.6.	  	Landlord Advance	  	55
			
	 10.
	  	DAMAGE, REPAIR AND CONDEMNATION	  	56
	 	  	10.1.	  	Partial Destruction	  	56
	 	  	10.2.	  	Major Destruction	  	57
	 	  	10.3.	  	Reinstatement	  	57
	 	  	10.4.	  	Condemnation.	  	58
	 	  	10.5.	  	Secured Loan Documents	  	59
			
	 11.
	  	SECURITY	  	59
	 	  	11.1.	  	Security.	  	59
	 	  	11.2.	  	Subordination and Attornment	  	59
	 	  	11.3.	  	Liens; Credit	  	62
	 	  	11.4.	  	Amendments Requested by Secured Party	  	63
	 	  	11.5.	  	Blocked Account Arrangements	  	63
	 	  	11.6.	  	Direction re: Payment of Secured Loan and other Financial Indebtedness	  	63
			
	 12.
	  	DEFAULTS AND REMEDIES	  	63
	 	  	12.1.	  	Events of Default	  	63
	 	  	12.2.	  	Remedies	  	67
	 	  	12.3.	  	Application of Funds	  	68
	 	  	12.4.	  	Landlord’s Right to Cure Tenant’s Default	  	69
			
	 13.
	  	HOLDING OVER	  	69
			
	 14.
	  	TRANSFERS BY LANDLORD OR SECURED PARTY	  	70
			
	15.	  	SUBLETTING AND ASSIGNMENT	  	70
	 	  	15.1.	  	Restriction on Mortgaging, Subletting and Assignment.	  	70
	 	  	15.2.	  	Transfer Limitation	  	74
			
	 16.
	  	TENANT CERTIFICATES AND FINANCIAL STATEMENTS	  	74
	 	  	16.1.	  	Tenant Certificates	  	74
	 	  	16.2.	  	Accounting.	  	75
	 	  	16.3.	  	Books and Records	  	75
	 	  	16.4.	  	Annual Business Plan	  	76
	 	  	16.5.	  	Update Meetings	  	76
	 	  	16.6.	  	Sarbanes-Oxley	  	76

  

 - ii - 

							
			
	 17.
	  	LANDLORD’S RIGHT TO INSPECT	  	77
			
	 18.
	  	TENANT’S BUYBACK OPTION	  	77
			
	 19.
	  	MISCELLANEOUS	  	77
	 	  	19.1.	  	Limitation on Payment of Rent	  	77
	 	  	19.2.	  	No Waiver	  	78
	 	  	19.3.	  	Remedies Cumulative	  	78
	 	  	19.4.	  	Severability	  	78
	 	  	19.5.	  	Acceptance of Surrender	  	79
	 	  	19.6.	  	No Merger of Title	  	79
	 	  	19.7.	  	Quiet Enjoyment	  	79
	 	  	19.8.	  	Dispute Resolution	  	80
	 	  	19.9.	  	No Recordation	  	81
	 	  	19.10.	  	Notices.	  	81
	 	  	19.11.	  	Construction	  	83
	 	  	19.12.	  	Limited Recourse	  	84
	 	  	19.13.	  	Counterparts; Headings	  	84
	 	  	19.14.	  	Entire Agreement	  	84
	 	  	19.15.	  	Applicable of Law, Etc	  	85
	 	  	19.16.	  	Right to Make Agreement	  	85
	 	  	19.17.	  	Guaranty of Tenant’s Performance	  	86
	 	  	19.18.	  	Time	  	86

  

 - iii - 

 SUBLEASE AGREEMENT 
 (WITH BUYBACK OPTION) 
  
 THIS SUBLEASE AGREEMENT (the “Lease”) is entered into as of this 22nd day of
December 2005, by and between CNL GATLINBURG PARTNERSHIP, LP, a Delaware limited partnership (the “Landlord”), and GATLINBURG SKYLIFT, LLC, a Michigan limited liability company (the “Tenant”).

  
 RECITALS: 
  
 A. Landlord is the tenant under the Ground Lease (as defined herein) of the
premises being currently operated as the “Gatlinburg Skylift” in Gatlinburg, Tennessee. 
  
 B. Landlord is the owner of the building ticket office and chairlift and equipment, parking facilities and other improvements within the areas controlled
by Landlord under the Ground Lease. 
  
 C. Landlord has agreed to
grant a sublease to Tenant of the Landlord’s rights under the Ground Lease and to lease to Tenant the Improvements and Personal Property (as each is defined herein), all subject to and upon the terms and conditions set forth herein. 

 
 D. Landlord has granted to Tenant the right and option to buy back from
Landlord the Ground Lease Improvements and the Personal Property leased hereunder pursuant to a Buyback Option Agreement of even date herewith entered into by and among, inter alia, Landlord and Tenant. 
  
 AGREEMENT: 
  
 In consideration of the Rent payable by Tenant hereunder and the mutual
covenants herein contained and other good and valuable consideration, the mutual receipt and legal sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows: 

 1. DEFINITIONS 
  
 1.1. Definitions. For all purposes of this Lease, except as otherwise expressly provided or unless the context otherwise
requires, (a) the terms defined in this Article shall have the meanings ascribed to them in this Article and include the plural as well as the singular, (b) all accounting terms not otherwise defined herein shall have the meanings ascribed
to them in accordance with GAAP, (c) all references in this Lease to designated “Articles,” “Sections” and other subdivisions of this Lease and “Exhibits” are to the designated Articles, Sections, other
subdivisions of this Lease and Exhibits and (iv) the words “herein”, “hereof” “hereunder” and other words of similar import refer to this Lease as a whole and not to any particular Article, Section or other
subdivision. 
  
 “Accounting Period” shall mean
each calendar month during the Term, or part thereof where the Term commences on a date other than the first day of a calendar month or ends on the last day of a calendar month, unless otherwise agreed by both parties. 
  
 “Accounting Period Statement” shall have the meaning given
such term in Section 16.2. 
  
 “Additional
Charges” shall have the meaning given such term in Section 3.4. 
  
 “Additional Minimum Rent” shall mean with respect to any Fiscal Year an amount equal to the aggregate of Additional Minimum Rent applicable to each Landlord Expenditure hereafter made by Landlord. For
each Landlord Expenditure hereafter made by Landlord, Additional Minimum Rent shall be paid by Tenant for each Fiscal Year in an amount equal to the product of: (a) the Subsequently Agreed Lease Rate applicable to such additional Landlord
Expenditure and (b) the amount of such Landlord Expenditure. Landlord shall notify Tenant in writing as to the Additional Minimum Rent amount, and the calculations thereof at the time of each Landlord Expenditure. 
  

 - 2 - 

 “Affiliates” shall have the meaning given such term in Section 1.2. 
  
 “Applicable Laws” shall mean all applicable laws, statutes,
regulations, rules, ordinances, codes, licenses, permits and orders, from time to time in existence, of all courts of competent jurisdiction and Government Agencies, and all applicable judicial and administrative and regulatory decrees, judgments
and orders, including Environmental Laws. 
  
 “Annual
Business Plan” shall mean the annual business plan delivered by Tenant to Landlord pursuant to, and in accordance with, Section 16.4. 
  
 “Asset Purchase Agreement” shall mean that Asset Purchase Agreement entered into by and between Tenant and CBRLP, as sellers, and CNL
Income Partners, LP, as purchaser, dated as of the date hereof, as said agreement is amended, extended, supplemented, replaced and renewed from time to time. 
  
 “Award” shall mean all compensation, sums or other consideration, benefit or value awarded, paid to or to the order of or for the benefit
of Landlord in respect of total or partial Condemnation of the Landlord’s rights as to any portion of the Premises (after deduction of all reasonable legal fees and other reasonable costs and expenses of Landlord, including, without limitation,
expert witness fees, incurred by Landlord, in connection with obtaining any such award). 
  
 “Business Day” shall mean any day other than Saturday, Sunday, or any other day on which banking institutions in the State of Tennessee or State of Florida are authorized by law or executive action to
close. 
  
 “Buyback Option Agreement” means the
buyback option agreement, dated as of the date hereof, among the Landlord, CNL Income Partners, LP and Boyne USA, Inc., a copy of which is attached hereto as Schedule 1.1A. 
  

 - 3 - 

 “Capital Expenditure” shall mean the expenses and capital lease payments
approved by Landlord in accordance with the requirements of this Lease and necessary for alterations, improvements, renewals, replacements, and additions to the Improvements and all related personal property (including all Personal Property) which
are classified as “capital expenditures” under GAAP. 
  
 “Capital Renewals Reserve” shall have the meaning given such term in Section 5.2A. 
  
 “Capital Reserve Budget” shall have the meaning given such term in Section 5.2C. 
  
 “CBRLP” means Cypress Bowl Recreations Limited
Partnership, a British Columbia limited partnership, and shall include all successors and assigns thereof. 
  
 “Claim” shall have the meaning given such term in Article 8. 
  
 “Closing” shall mean the closing of the purchase by Landlord of the Ground Lease, the
Improvements and the personal property related thereto as contemplated by the Asset Purchase Agreement, including the execution and delivery of this Lease by the Landlord and the Tenant and all agreements to be entered into on the Commencement Date.

  
 “CNL TRS” means CNL CG TRS
Corp., a Delaware corporation, or any other entity into which the Personal Property at the Cypress Premises will be transferred, and shall include successors and assigns thereof. 
  
 “Code” shall mean the Internal Revenue Code of 1986 and, to the extent applicable, the
Treasury Regulations promulgated thereunder, each as amended from time to time. 
  
 “Commencement Date” shall mean December 22, 2005, being the same date as the date of Skylift Closing as defined in the Asset Purchase Agreement. 
  
 “Condemnation” shall mean (a) the
exercise of any governmental power with respect to the Premises, whether by legal proceedings or otherwise, by a Condemner of its power of 
  

 - 4 - 

 condemnation or eminent domain, (b) a voluntary sale or transfer of the Premises by Landlord to any Condemner,
either under threat of condemnation or while legal proceedings for condemnation are pending, or (c) a taking or voluntary conveyance of all or part of the Premises, or any interest therein, or right accruing thereto or use thereof, as the
result or in settlement of any condemnation proceeding affecting the Premises, whether or not the same shall have actually been commenced. 
  
 “Condemner” shall mean the City of Gatlinburg, Sevier County, the State of Tennessee, or any other public or quasi-public
authority, or Person having the power of Condemnation. 
  
 “Contracts” shall mean all maintenance, service and supply contracts, and all other similar agreements for goods or services in connection with the Premises or the Leased Property other than the Licenses and
Permits. 
  
 “Control” and
“Controlled” shall mean, in respect of any Person, (i) the right to exercise, directly or indirectly, a majority of the votes which may be voted at a meeting of (A) the shareholders of such Person, in the
case of a corporation, (B) the shareholders of the general partner of such Person, in the case of a limited partnership or (C) the equity holders or other voting participants in the case of a Person that is not a corporation or a limited
partnership, or (ii) the right to elect or appoint, directly or indirectly, a majority of (A) the directors of such Person, in the case of a corporation, (B) the directors of the general partner of such Person, in the case of a
limited partnership or (C) a majority of the Persons who have the right to manage or supervise the management of the affairs and business of such Person, in the case of a Person that is not a corporation or a limited partnership. 
  
 “Cypress Jersey Trust” means Cypress Jersey
Trust, a trust settled under the laws of the Isle of Jersey, and shall include all successors and assigns thereof. 
  

 - 5 - 

 “Cypress Leases” shall mean (i) that certain Sub-permit and Lease
Agreement which is hereafter entered into, pursuant to the Asset Purchase Agreement, by and between Cypress Jersey Trust, as landlord, and CBRLP, as tenant, and (ii) that certain Personal Property Lease Agreement which is hereafter entered
into, pursuant to the Asset Purchase Agreement, by and between CNL TRS, as lessor, and CBRLP, as lessee. 
  
 “Cypress Permit” shall the mean the Permit described in the Cypress Leases. 
  
 “Date of Taking” shall mean the date the
Condemnor has the right to possession of the Premises, or any portion thereof in connection with a Condemnation. 
  
 “Default” shall mean any event or condition existing which with the giving of notice and/or lapse of time would ripen into
an Event of Default. 
  
 “Emergency
Requirements” shall mean any of the following events or circumstances: (a) an emergency threatening the Premises or Improvements, or the life, safety or property of its tenants, subtenants, customers, invitees or employees;
(b) a violation of any Legal Requirement or any condition, the continuation of which would subject Tenant or Landlord to civil or criminal liability. 
  
 “Entity” shall mean any corporation, general or limited partnership, limited liability company, limited liability
partnership, stock company or association, joint venture, association, company, trust, bank, trust company, land trust, business trust, cooperative, Governmental Agency or political subdivision thereof or any other association or entity. 

 
 “Environment” shall mean soil, surface
waters, ground waters, land, streams, sediments, surface or subsurface strata and ambient air. 
  
 “Environmental Claims” means all claims for reimbursement, remediation, abatement, removal, clean up, contribution, personal injury, property damage or damage to natural resources

  

 - 6 - 

 made by any Government Agencies or other Person arising from or in connection with the (i) presence or actual or
potential spill, leak, emission, discharge or release of any Hazardous Materials over, on, in, under or from the Premises, or (ii) violation of any Environmental Laws with respect to the Premises. 
  
 “Environmental Laws” shall mean any Applicable Laws which
regulate the manufacture, generation, formulation, processing, use, treatment, handling, storage, disposal, distribution or transportation, or an actual or potential spill, leak, emission, discharge or release of any Hazardous Materials, pollution,
contamination or radiation into any water, soil, sediment, air or other environmental media, including, without limitation, the (i) The Comprehensive Environmental Response, Compensation and Liability Act, (ii) the Resource Conservation
and Recovery Act, (iii) the Federal Water Pollution Control Act, (iv) the Toxic Substances Control Act, (v) the Clean Water Act, (vi) the Clean Air Act, (vii) the Hazardous Materials Transportation Act, and
(viii) similar state and local laws, as amended as of the time in question, and all other federal, state and local laws, as amended as of the time in question. 
  
 “Environmental Liabilities” means all liabilities under any Environmental Laws arising from or in
connection with the Premises, including, without limitation, any obligations to manage, control, contain, remove, remedy, respond to, clean up or abate any actual or potential spill, leak, emission, discharge or release of any Hazardous Materials,
pollution, contamination or radiation into any water, soil, sediment, air or other environmental media. 
  
 “Event of Default” shall have the meaning given such term in Section 12.1. 
  
 “Extension Terms” shall have the meaning given such term in
Section 2.4. 
  
 “Financial Indebtedness”
means any indebtedness or liability, direct or indirect, absolute or contingent, for or in respect of any borrowed money, any guarantee of borrowed money or any indemnity or reimbursement obligations with respect to a letter of credit, including
indebtedness under a debt instrument given in payment of the purchase price of an investment. 
  

 - 7 - 

 “Financial Statements” shall mean a balance sheet, profit and loss statement, statement
of shareholders equity, and cash flow statement for the Premises and the operations thereon, all prepared in accordance with GAAP consistently applied. 
  
 “Fiscal Year” shall mean each calendar year ending at midnight on December 31 of each calendar year during the Term, or part
thereof. 
  
 “Fixed Term” shall have the meaning
given such term in Section 2.3. 
  
 “GAAP”
means United States generally accepted accounting principles applied on a consistent basis, as such principles may be duly modified from time to time where appropriate. 
  
 “Government Agencies” shall mean any court, agency, authority, board (including, without limitation,
environmental protection, planning and zoning), bureau, commission, department, office or instrumentality of any nature whatsoever of any governmental or quasi-governmental unit of the United States, the State of Tennessee or the local jurisdiction
in which the Premises is located or any political subdivision of any of the foregoing, whether now or hereafter in existence, having jurisdiction over Tenant or the Premises or any portion thereof or the Leased Property operated thereon. 

 
 “Gross Revenues” means, subject to the exclusions listed
below, all collected, recovered or accrued revenue and income from the operation of the Premises and properly attributable to the Fiscal Year under consideration, determined without duplication and in accordance with GAAP and, for purposes of
greater certainty, Gross Revenues shall include, but shall not be limited to: 
  

	 	(i)	the revenues and payments received, recovered or accrued from any party, including, without limitation, amounts for parking, chairlift tickets, food and beverage services, rent and
fees from subtenants, concessionaires and the like; 

  

 - 8 - 

	 	(ii)	the net proceeds of use and occupancy or business interruption insurance with respect to the operation of the Premises and Leased Property (after deduction from said proceeds of all
necessary expenses incurred in the adjustment or collection thereof); and 

  

	 	(iii)	any amounts under the terms of any other shared services agreements, licenses, easements or servitudes relating to the Premises; 

  
 Gross Revenues shall not include: 
  

	 	A.	Sales tax or similar charges which are required by law to be collected directly from sublessees, if any, or as part of the sale price of any goods or services or displays and which
must be remitted to competent governmental taxing authorities; 

  

	 	B.	proceeds or awards arising from an condemnation, taking or condemnation of capital property other than an award for temporary use; 

  

	 	C.	receipts or credits for settlement of claims for loss or damage to personal property or furnishings; 

  

	 	D.	proceeds from any insurance policy except for the net proceeds of use and occupancy or business interruption insurance; 

  

	 	E.	receipts of a capital nature; 

  

 - 9 - 

	 	F.	receipts collected by Tenant on behalf of, and which are remitted to another person, and not properly recordable as “revenues” according to GAAP; and

  

	 	G.	amounts received for the sale of goods or services by subtenants and concessionaires, unaffiliated with Tenant, who pay rent or fees to Landlord for the privilege of such subtenancy
or concession. 

  
 “Ground
Lease” shall mean that certain lease agreement dated September 1, 1953, as amended, by and between the Landlord, as “Lessee” (as successor in interest to Gatlinburg Skylift, LLC, which in turn was successor by various
conveyances to the original Lessee, Kircher Motor Sales, Inc.), and the Residuary Trust of Rellie Louis Maples, under trust agreement created pursuant to the terms and provisions of the Will of Rellie Louis Maples dated May 5, 1983, as
“Lessor” (as successor in interest by various conveyances to the original Lessor, Electrical Appliance Company), as now or hereafter amended from time to time. 
  
 “Ground Lessor” shall mean the fee simple owner from time to time of the Premises. 
  
 “Guarantor” shall mean Boyne USA, Inc., a Michigan
corporation, its successors and permitted assigns. 
  
 “Guaranty” shall mean the Guaranty Agreement, dated as of the date hereof, executed by the Guarantor in favor of the Landlord with respect to the Minimum Rent payable under this Lease, as such Guaranty may be amended from
time to time. 
  
 “Hazardous Materials” shall
mean and include any substance or material containing one or more of any of the following: “hazardous material,” “hazardous waste,” “hazardous substance,” “regulated substance,” “petroleum,”
“pollutant,” “contaminant,” “polychlorinated biphenyls,” “lead or lead-based paint” or “asbestos” as such terms are defined in any applicable 
  

 - 10 - 

 Environmental Law in such concentration(s) or amount(s) as may impose clean-up, removal, monitoring or other
responsibility under the Environmental Laws, as the same may be amended from time to time, and any other substance or material (including, without limitation, mould) which may present a significant risk of harm to customers, invitees or employees.

  
 “Improvements” shall mean those buildings,
chairlifts, parking facilities, and other improvements within the Premises that constitute real property or fixtures under Applicable Law, over which Landlord has rights of use, occupancy, or control under the terms of the Ground Lease. 

 
 “Impositions” shall mean collectively, all fees and other
amounts payable under or pursuant to the Ground Lease, and all taxes (including, without limitation, all taxes imposed under the laws of the State of Tennessee and the local jurisdiction in which the Premises is located, as such laws or regulations
may be amended from time to time, and all ad valorem, sales and use, single business, gross receipts, transaction privilege, rent or similar taxes as the same relate to or are imposed upon Landlord, Tenant or the businesses conducted upon the
Premises), surtaxes, assessments (including, without limitation, all assessments for public improvements or benefit, whether or not commenced or completed prior to the date hereof), all assessments, water, sewer or other rents and charges, excises,
tax levies, fees (including, without limitation, license, permit, inspection, authorization and similar fees), and all other governmental charges, in each case whether general or special, ordinary or extraordinary, or foreseen or unforeseen, of
every character in respect of the Premises, the Leased Property, or the businesses conducted thereon by Tenant or any subtenants (including all interest and penalties thereon due to any failure in payment by Tenant or any subtenants), which at any
time prior to, during or in respect of the Term hereof may be assessed or imposed on or in respect of or be a lien or hypothecation upon 
  

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 (a) Landlord’s interest in the Premises, (b) the Premises or any part thereof or any rent or fees therefrom or
any estate, right, title or interest therein, or (c) any occupancy, operation, use or possession of, or sales from, or activity conducted on, or in connection with the Premises or Leased Property or the leasing or use of the Premises or Leased
Property or any part thereof by Tenant or any subtenants, if any; provided, however, that nothing contained herein shall be construed to require Tenant to pay: (i) any income tax of Landlord, (ii) any transfer fee or other tax imposed with
respect to the sale, exchange or other disposition by Landlord of the Ground Lease, the Leased Property or the proceeds thereof, (iii) any single business, gross receipts tax (from any source other than the rent received by Landlord from
Tenant), or similar taxes as the same relate to or are imposed upon Landlord, except to the extent that any tax, assessment, tax levy or charge that would otherwise be an Imposition under this definition which is in effect at any time during the
Term hereof is totally or partially repealed, and a tax, assessment, tax levy or charge set forth in clause (i) or (ii) preceding is levied, assessed or imposed expressly in lieu thereof, (iv) any interest or penalties imposed on
Landlord as a result of the failure of Landlord to file any return or report timely and in the form prescribed by law or to pay any tax or imposition, except to the extent such failure is a result of a breach by Tenant of its obligations pursuant to
this Lease, (v) any Impositions that are enacted or adopted by their express terms as a substitute for any tax that would not have been payable by Tenant pursuant to the terms of this Lease, or (vi) any Impositions imposed as a result of a
breach of covenant or representation by Landlord in any agreement entered into by Landlord governing Landlord’s conduct or operation or as a result of the negligence or willful misconduct of Landlord. 
  

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 “Initial Landlord Expenditure” is US $20,274,339.92, which is the agreed
amount allocated to Landlord’s Expenditures in connection with the acquisition of the Leased Property, including all Landlord acquisition costs. 
  
 “Initial Minimum Rent” shall mean with respect to any Fiscal Year an amount equal to the product of: (a) the Initial Landlord
Expenditure; and (b) the Originally Agreed Lease Rate for such Fiscal Year. Initial Minimum Rent, on an annual basis, shall be US $2,078,119.84 from the date of this Lease until December 31, 2006 (10.25% times the Initial
Landlord Expenditure). 
  
 “Insurance
Requirements” shall mean all terms of any insurance policy required by this Lease and all requirements of the issuer of any such policy and all orders, rules and regulations and any other requirements of the National Board of Fire
Underwriters as well as any such demand under the Secured Loan Documents or any other body exercising similar functions binding upon Landlord, Tenant or the Premises. 
  
 “Insurance Retention” shall have the meaning given such term in Section 9.3B. 
  
 “Interest Rate” shall mean an annual rate of interest equal
to, as of the date of determination, the Originally Agreed Lease Rate plus two hundred (200) basis points. 
  
 “Landlord Expenditure” shall mean any expenditure made by Landlord in connection with the Landlord’s investment in the Leased
Property, including without limitation each amount expended by Landlord to fund the cost of any excess Capital Expenditure pursuant to Section 5.3 of the Lease. Landlord and Tenant agree and confirm upon execution of this Lease that the
Landlord’s Expenditure in connection with Landlord’s acceptance of the Leased Property is the Initial Landlord Expenditure. Landlord shall notify Tenant in writing of each Additional Landlord Expenditure subsequent to the date of this
Lease, which amount shall be final and conclusive in the absence of manifest error. 
  

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 “Landlord Liens” shall mean Liens on or against the Ground Lease, the Premises or any
payment of Rent (a) which result from any act of, or any claim against, Landlord to the State of Tennessee which result from any violation by Landlord of any terms of this Lease, or (b) which result from Liens in favor of any taxing
authority by reason of any tax owed by Landlord to the State of Tennessee; provided, however, that “Landlord Lien” shall not include any Lien resulting from any tax for which Tenant is obligated to pay or indemnify Landlord against until
such time as Tenant shall have already paid to or on behalf of Landlord the tax or the required indemnity with respect to the same. 
  
 “Lease” shall mean this Sublease Agreement, including all Exhibits hereto, as it and they may be amended from time to time as herein
provided. 
  
 “Lease Rate” shall mean that
percentage rate agreed by Landlord and Tenant to be applicable to a given Landlord Expenditure for the calculation of Minimum Rent. The Lease Rate applicable to the Initial Landlord Expenditures on or prior to the date of this Lease shall be the
Originally Agreed Lease Rate. The Lease Rate applicable to each Landlord Expenditure subsequent to the date of this Lease shall be the Subsequently Agreed Lease Rate. 
  
 “Lease Year” shall mean any Fiscal Year during the Term and any partial Fiscal Year at the beginning or end
of the Term. 
  
 “Leased Property” shall mean all
of the Improvements and Personal Property now existing, and all future additions to and replacements thereof, and the exclusive right to use and occupy the Premises pursuant to the Ground Lease. 
  

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 “Legal Requirements” shall mean all federal, state, local and other governmental
statutes, laws, rules, orders, regulations, safety standards, ordinances, judgments, decrees and injunctions affecting the Premises or the maintenance, construction, alteration or operation thereof, whether now or hereafter enacted or in existence,
including, without limitation, (a) all Environmental Laws, and (b) all applicable safety code requirements imposed by Government Agencies, and (d) all permits, licenses, authorizations, certificates and regulations necessary to
operate the Premises and Leased Property for its Permitted Use, and (e) all covenants, agreements, declarations, restrictions and encumbrances contained in any instruments at any time in force affecting the Premises or the Leased Property as of
the date hereof, or to which Tenant has consented or required to be granted pursuant to Applicable Laws, including those which may (i) require material repairs, modifications or alterations in or to the Premises or Leased Property or
(ii) in any way materially and adversely affect the use and enjoyment thereof, but excluding any requirements arising as a result of Landlord’s or any Affiliated Person of Landlord’s status as a real estate investment trust.

  
 “Licenses and Permits” shall mean all
licenses, permits, consents, authorizations, approvals, registrations and certificates issued by any Governmental Agency which are held by Landlord with respect to the Premises or the Leased Property, including, without limitation, those necessary
for the construction, use or occupancy of the Premises or the Leased Property, to the extent that the same are transferable, together with any deposits made by Landlord thereunder to the extent that they are transferable. 
  
 “Lien” shall mean any mortgage, hypothecation, security
interest, pledge, collateral assignment, or other encumbrance, lien or charge of any kind, or any transfer of property or assets for the purpose of subjecting the same to the payment of Financial Indebtedness or performance of any other obligation
in priority to payment of its general creditors. 
  

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 “Major Destruction” shall mean damage to the Improvements resulting in a
cost of repair, replacement or rebuilding of such damaged portion of the Leased Property, as reasonably estimated by Landlord, that will exceed One Million Dollars ($1,000,000) as valued at the initial Lease Year (with such $1,000,000 threshold to
be increased by three percent (3%), on a compounded basis, for each succeeding Lease Year thereafter), and at the time of such damage there remain less than two (2) years to the expiration of the Term of this Lease; provided, however, that if
the Tenant is entitled to an Extension Term and agrees in writing that this Lease shall not be terminated at the end of the Term but shall be extended through the next Extension Term, then such damage shall not be deemed a “Major
Destruction.” 
  
 “Management
Agreement” shall have the meaning set forth in Section 5.7 of this Lease. 
  
 “Minimum Rent” shall mean with respect to any Fiscal Year an amount equal to the sum of: (a) the Initial Minimum Rent; and (b) the Additional Minimum Rent. 
  
 “Notice” shall mean a notice given in
accordance with Section 19.10. 
  
 “Officer’s Certificate” shall have the meaning given such term in Section 3.1B 
  
 “Originally Agreed Lease Rate” shall mean the Lease Rate noted below with respect to each of the following Fiscal Years:

  
 10.25% from the date of this Lease until
December 31, 2006; 
  
 10.50% from
January 1, 2007 through December 31, 2007; 
  
 10.75% from January 1, 2008 through December 31, 2008; 
  
 11.00% from January 1, 2009 through December 31, 2009; 
  
 11.25% from January 1, 2010 through December 31, 2010; 
  
 11.50% from January 1, 2011 through December 31, 2011; 
  

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 11.75% from January 1, 2012 through December 31, 2012; 
  
 12.00% from January 1, 2013 through December 31,
2013; 
  
 12.25% from January 1, 2014
through December 31, 2014; 
  
 12.50% from
January 1, 2015 through December 31, 2015; 
  
 12.75% from January 1, 2016 through December 31, 2016; and 
  
 13.00% from January 1, 2016 through the remainder of the Lease Term and any Extension Term. 
  
 “Partial Destruction” shall mean any damage to a portion of the Leased Property which is not a Major Destruction. 
  
 “Percentage Rent” shall have the meaning given such term in
Section 3.1B. 
  
 “Permitted Encumbrances”
shall mean all rights, restrictions, easements, and agreements affecting the Premises on the date of this Lease, or hereafter imposed thereon pursuant to the Ground Lease, or with the written consent of Landlord and Tenant. 
  
 “Permitted Use” shall mean only such use of the Premises
permitted pursuant to Section 4.1A. 
  
 “Person” shall mean any individual or Entity, and the heirs, executors, administrators, legal representatives, successors and assigns of such Person where the context so admits. 
  
 “Personal Property” shall mean all of those items of
furniture, equipment and other tangible personal property owned by Landlord and located at or used or usable in connection with the Premises, including without limitation all items of personal property described in the Personal Property Schedule
attached hereto as Exhibit “A”, as such items of personal property are modified, replaced, altered and added to. Personal Property shall include, but is not limited to, all items of personal property hereafter purchased with funds
from the Capital Renewals Reserve. For greater certainty, Personal Property does not include any property that is, or may become, a Retained Business Asset under the terms of the Turnover Agreement. 
  

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 “Premises” shall mean all of those lands to which Landlord has been granted rights of
use pursuant to the Ground Lease. 
  
 “Re-letting
Expenses” shall have the meaning given such term in Section 12.2. 
  
 “Rent” shall mean, collectively, the Minimum Rent, Percentage Rent and Additional Charges. 
  
 “Replacement Value” shall mean the costs of repairing, replacing or reinstating any item of property with materials of like kind and
quality on the same or similar site without deduction for physical, accounting or any other depreciation. 
  
 “Revenue Audit” shall have the meaning given such term in Section 3.2. 
  
 “Sales Tax” means all goods and services taxes, sales taxes, multi-stage sales taxes, use or consumption
taxes, business transfer taxes, value added or transaction taxes and any other existing or future tax imposed with respect to any amount payable by Tenant to Landlord under this Lease. 
  
 “Secured Loan” shall mean any loan made by the Secured Party to Landlord secured by a mortgage or
collateral assignment against the Ground Lease or Leased Property, in whole or in part, from time to time as said Secured Loan is amended, extended, renewed, supplemented and/or replaced from time to time. 
  
 “Secured Loan Agreement” shall mean any loan agreement
evidencing and/or governing any Secured Loan made by a Secured Party to Landlord from time to time as said agreement is amended, extended, renewed, supplemented and/or replaced from time to time. 
  
 “Secured Loan Documents” shall mean the Security Instrument,
the Secured Loan Agreement and any note or notes evidencing the Secured Loan secured by the Security Instrument as well as all guarantees and/or indemnities executed and/or delivered in connection 
  

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 therewith and any and all other documents evidencing, securing, governing or otherwise entered into in connection with
the Secured Loan as such agreements, guarantees and/or indemnities may be amended, extended, renewed, supplemented and/or replaced from time to time. 
  
 “Secured Party” shall mean an institutional lender which is the holder of any Security Instrument and its successors and assigns.

  
 “Security Instrument” shall mean any
mortgage, debenture, charge, hypothecation, deed of trust, or security document encumbering Landlord’s interest in the Ground Lease, the Leased Property, and/or this Lease from time to time as said instrument is amended, extended, renewed,
supplemented and/or replaced from time to time. 
  
 “Sole
Discretion” shall mean, in each instance, discretion exercised by the relevant party in its sole subjective and unfettered discretion which discretion may be exercised unreasonably and/or arbitrarily. 
  
 “State” shall mean the State of Tennessee. 
  
 “Subsequently Agreed Lease Rate” shall mean the Lease Rate
agreed by Landlord and Tenant as applicable to each Landlord Expenditure made by Landlord subsequent to the Initial Landlord Expenditure, for purposes of calculating Additional Minimum Rent. In the absence of written agreement by Landlord and Tenant
as to the amount of the Subsequently Agreed Lease Rate, Landlord and Tenant agree that the Subsequently Agreed Lease Rate applicable to a given Landlord Expenditure shall be the Originally Agreed Lease Rate. 
  
 “Subsidiary” shall mean, with respect to any Person:
(i) any corporation of which more than 50% of the outstanding capital stock having ordinary voting power to elect the majority of the board of directors of such corporation is at the time directly or indirectly owned by (A) such Person,
(B) such Person and one or more corporations each of which is Controlled by such 
  

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 Person or (C) one or more corporations each of which is Controlled by such Person, or (ii) any limited or
general partnership, joint venture, limited liability company, trust or other Entity as to which (A) such Person, (B) such Person and one or more Persons referred to in clause (i) above or (C) one or more Persons referred to in
clause (i) above owns more than a 50% ownership, equity or similar interest or has power to direct or cause the direction of management and policies, or the power to elect the general partner or managing partner (or equivalent thereof) of such
limited or general partnership, joint venture, limited liability company, trust or other Entity, as the case may be. 
  
 “Term” shall mean, collectively, the Fixed Term and the Extension Terms, to the extent properly exercised pursuant to the provisions of
Section 2.4, unless sooner terminated pursuant to the provisions of this Lease. 
  
 “Turnover Agreement” shall mean that certain “Turnover Agreement” by, inter alia, Landlord and Tenant with respect to the turnover by Tenant to Landlord of certain items of personal
property upon the expiration or termination of this Lease, as such agreement may be amended, modified and/or supplemented from time to time. 
  
 1.2. Affiliates. In this Lease, two entities are “Affiliates” if (i) one of the entities is a Subsidiary
of the other Entity, (ii) both of the entities are Subsidiaries of the same Entity, (iii) both of the entities are Controlled by the same Person or Entity, (iv) one of the entities is a partnership and the other Entity is its general
partner, or (v) one of the entities is a trust and the other Entity is its beneficiary, and where a Person is an Affiliate of two entities each of those entities will be Affiliates of each other (for greater certainty, a partnership and a trust
shall be deemed to be entities for the purpose of the foregoing). 
  

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 2. SUBLEASE AND TERM 
  
 2.1. Sublease. Upon and subject to the terms and conditions hereinafter set forth, Landlord hereby subleases
to and in favor of Tenant, and grants to Tenant the right to use and occupy, the Premises for the purposes and subject to the limitations and conditions set forth in this Lease. Tenant hereby covenants and agrees to pay and perform all obligations
of the “Lessee” as provided for in the Ground Lease. Tenant is not entitled to, and shall not agree to, any modification of its obligations under the Ground Lease, or any other modification of the Ground Lease, without the prior written
consent of the Landlord. 
  
 2.2. Lease of Improvements and
Personal Property. Landlord hereby leases to Tenant, and grants to Tenant the right to use and occupy the Improvements located at the Premises, and the Personal Property subject to the limitations and conditions set forth in the Ground Lease
and in this Lease. Tenant confirms that Tenant has inspected the Premises and the Leased Property and has reviewed the Permitted Encumbrances, and all related agreements and documentation. In that regard, Tenant acknowledges and agrees that it is
leasing and/or assuming Landlord’s relevant interests in the Permitted Encumbrances, the Premises and the Leased Property “AS IS/WHERE IS.” LANDLORD MAKES ABSOLUTELY NO WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING ANY WARRANTY OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Tenant agrees to indemnify and hold Landlord and Landlord’s agents, employees, officers, and directors harmless from and against, any and all Claims, including any and all attorneys’
fees and legal expenses, arising from or caused directly or indirectly by any actual or alleged use, possession, maintenance, condition (whether or not latent or discoverable), operation, location, delivery or transportation of any of the Leased
Property. This indemnity remains in full force notwithstanding the termination or expiration of this Lease, but will be released as to the original Tenant at the time of any Transferee’s assumption of this Lease and release of original Tenant
if provided pursuant to Section 15.1C. 
  

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 2.3. Fixed Term. The initial term of this Lease (the “Fixed Term”) shall
commence on the Commencement Date and shall expire on March 31, 2026 unless sooner terminated in accordance with the provisions hereof. 
  
 2.4. Extension Terms. Provided that no Event of Default shall have occurred and be continuing, this Lease shall automatically extend for
four (4) consecutive extension terms of five (5) years each (each being an “Extension Term”) unless Tenant elects, by providing Notice to Landlord not sooner than thirty (30) months and no later than twenty-four
(24) months prior to the scheduled expiration of the Fixed Term or the current Extension Term, as applicable, to not extend and to terminate this Lease upon the expiration of the then fixed Term or the current Extension Term as the case may be.
Any such Notice of non-extension and termination shall, if given, be irrevocable, but Tenant’s failure to give any such notice of non-extension and termination shall not preclude Landlord from exercising any of its rights to terminate this
Lease in accordance with the terms hereof. Each Extension Term shall commence on the day succeeding the expiration of the Fixed Term or the preceding Extension Term, as the case may be. All of the terms, covenants and provisions of this Lease shall
apply to each such Extension Term providing Tenant shall have no right to extend the Term beyond the expiration of the fourth and final Extension Term. 
  
 3. RENT 
  
 3.1. Rent. Tenant shall pay to Landlord or to any other Person designated in writing to Tenant by Landlord, by wire transfer of immediately
available federal funds or by other means acceptable to Landlord, acting reasonably, in lawful money of the United States which shall be legal tender 
  

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 for the payment of public and private debts, without offset, abatement, demand or deduction, Rent during the Term of this
Lease as follows: 
  
 A. Tenant shall pay to Landlord monthly
Minimum Rent in advance equal to one-twelfth (1/12th) of the annual amount of Minimum Rent applicable for a
Lease Year beginning on the Commencement Date and continuing on the first (1st) day of each calendar month thereafter; provided, however, that Minimum Rent shall be prorated as to any Lease Year which is less than twelve (12) calendar
months and as to any partial calendar months and Additional Minimum Rent shall be prorated to the extent that a Landlord Expenditure is made on a date other than the first day of a Lease Year or the first day of a calendar month. 
  
 B. Tenant shall pay to Landlord percentage rent (“Percentage
Rent”) calculated for each calendar quarter at three percent (3%) of Gross Revenues for the calendar quarter, which amount shall be payable quarterly in arrears commencing on or before the thirtieth (30th) day after the end of the
first full calendar quarter after the Commencement Date and continuing on the thirtieth (30th) day after the
end of each calendar quarter during the term hereof. Landlord and Tenant expressly acknowledge and agree that the applicable percentage under this Section 3.1B, beginning with the eleventh (11th) calendar year following the Commencement Date shall be reset by Landlord to achieve an equivalent yield (which shall in any event not be less than the
aggregate amount of Percentage Rent received by Landlord in the Lease Year preceding such reset), adjusted to reflect changes in Gross Revenues and in non-controllable expenses (including, without limit, real estate taxes, and insurance and utility
costs) and each on the tenth (10th) anniversary and each fifth (5th) anniversary thereafter through the end of the Lease Term and any Extension Term. Tenant shall deliver to Landlord a Certificate from a senior officer of
Tenant (an “Officer’s Certificate”) with each Percentage Rent payment (or, if no Percentage 
  

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 Rent is then payable, on the due date therefore) setting forth the calculation of the Percentage Rent payment for the
most recently completed calendar quarter of each Lease Year in the Term, and the Percentage Rent due year-to-date through such recently completed calendar quarter. Percentage Rent shall be subject to confirmation and adjustment, if applicable, as
set forth in Section 3.2. 
  
 3.2. Confirmation of
Percentage Rent. Tenant shall utilize, or cause to be utilized, an accounting system for the Tenant’s operations at the Premises in accordance with customary industry practices, and in accordance with GAAP, that will accurately record
all data necessary to compute Percentage Rent, and Tenant shall retain, for at least five (5) years after the expiration of each Lease Year, reasonably adequate records conforming to such accounting system showing all data necessary to conduct
Landlord’s Audit and to compute Percentage Rent for the applicable Lease Year. Landlord shall have the right, for a period of two (2) years following each Lease Year, from time to time, by its accountants or representatives at its cost, to
audit such information in connection with Landlord’s Audit, and to examine all Tenant’s records (including supporting data and sales and excise tax returns) reasonably required to complete Landlord’s Audit and to verify Percentage
Rent, subject to any prohibitions or limitations on disclosure of any such data under Legal Requirements. Tenant shall produce all such Tenant records at a single location in Gatlinburg, Tennessee. If any Landlord’s Audit discloses a deficiency
in the payment of Percentage Rent, and either Tenant agrees with the results of Landlord’s Audit or the matter is otherwise determined or compromised, Tenant shall forthwith pay to Landlord the amount of the deficiency, as finally agreed or
determined, together with interest at the Interest Rate from the date when said payment should have been made to the date of payment thereof. If any Landlord’s Audit discloses a deficiency in the determination or 
  

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 reporting of Gross Revenue, which, as finally agreed or determined, exceeds five percent (5%), Tenant shall pay the costs
of the portion of Landlord’s Audit allocable to the determination of such Revenues (the “Revenue Audit”). Any proprietary information obtained by Landlord pursuant to the provisions of this Section shall be treated as confidential,
except that such information may be used, subject to appropriate confidentiality safeguards, in any litigation or arbitration between the parties and except further that Landlord may disclose such information to prospective lenders, investors and
underwriters and to any other persons to whom disclosure is necessary to comply with applicable laws, regulations and government requirements. The obligations of Tenant contained in this Section shall survive the expiration or earlier termination of
this Lease. Any dispute as to the existence or amount of any deficiency in the payment of Percentage Rent as disclosed by Landlord’s Audit shall, if not otherwise settled by the parties, be submitted to arbitration. 
  
 3.3. Personal Property. 
  
 A. Landlord and Tenant agree that a portion of the Minimum Rent payable
under this Agreement shall be paid for, and allocable to, the rental of the Personal Property included in the Leased Property, and described on Exhibit “A” attached hereto. The portion of the Rent allocable to the Personal Property shall
be that amount calculated by multiplying the total Minimum Rent payable in a calendar year by a “fraction” the numerator of which is the average of the aggregate fair market values of all leased Personal Property at the beginning and the
aggregate fair market values at the end of the taxable year, and the denominator of which is the average of the aggregate fair market values of all Personal Property at the beginning and the aggregate fair market values of all of the Leased Property
at the end of the taxable year. “Fair market values” shall be determined by reference to the amount of Landlord’s original investment 
  

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 in such Leased Property, adjusted from time to time to take account of economic appreciation and depreciation as well as
Capital Expenditures made with respect to the Leased Property and additional amounts invested in Personal Property. 
  
 B. If (A) any amount of Rent otherwise accruing or payable to the Landlord under this Agreement with respect to a calendar year would fail to qualify
as “rents from real property” within the meaning of Section 856(d) of the Internal Revenue Code of 1986 if received or accrued by CNL Income Properties, Inc., with respect to such calendar year (such amount of
“non-qualifying” gross income otherwise accruing or payable under this Agreement hereinafter referred to as “Excess Rent”), and (B) such Excess Rent, when aggregated with all other “non-qualifying”
gross income of CNL Income Properties, Inc., with respect to such calendar year within the meaning of Sections 856(c)(2) or 856(c)(3) of the Code (the “Gross Income Tests”) would cause CNL Income Properties, Inc., to fail to
satisfy either of the Gross Income Tests (determined without regard to the provisions of this Real Estate Investment Trust (“REIT”) gross income compliance threshold provision or a similar REIT gross income compliance
threshold provision contained in any other rental or contractual agreement (collectively, the “Compliance Threshold Provisions”)), then the portion of such Excess Rent equal to the product of (1) the Excess Rent,
multiplied by (2) the “Limitation Ratio,” as defined below, shall be deemed accrued and otherwise be payable as Rent for Personal Property payable to CNL TRS for all purposes of this Agreement, or otherwise. 
  
 C. For purposes of the foregoing paragraph, the “Limitation
Ratio” shall be a fraction (x) the numerator of which is the excess of (I) the aggregate amount of “non-qualifying” gross income CNL Income Properties, Inc., would receive or accrue for such calendar year, determined
without the limitation provisions of any Compliance Threshold Provisions, over (II) 
  

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 the aggregate amount of “non-qualifying” gross income CNL Income Properties, Inc., would be permitted to
receive for such calendar year without failing to satisfy either of the Gross Income Tests, and (y) the denominator of which is the aggregate of all amounts described as “Excess Rent” (or other similar term) pursuant to any of the
Compliance Threshold Provisions with respect to such calendar year. 
  
 3.4. Additional Charges. In addition to the Minimum Rent, Tenant also will pay and discharge as and when due and payable all other amounts, liabilities, obligations and Impositions, including without limitation all Ground
Lease rent and all fees and charges due from time to time under the Ground Lease. In the event of any failure on the part of Tenant to pay any of those amounts, liabilities, obligations and Impositions, Tenant also will promptly pay and discharge
every fine, penalty, interest and cost that may be added for non-payment or late payment of such items (all of the foregoing amounts, liabilities, obligations and Impositions referred to in this Section 3.3 shall be deemed to be additional rent
payable by Tenant hereunder and being referred to herein collectively as the “Additional Charges”), and Landlord shall have all legal and contractual rights, powers and remedies provided either in this Lease or by statute or
otherwise in the case of non-payment of the Additional Charges as in the case of non-payment of the Minimum Rent. If any installment of Minimum Rent or on Additional Charges (but only as to those Additional Charges that are payable directly to
Landlord) shall not be paid on its due date, Tenant will pay Landlord within fifteen (15) days of demand, as Additional Charges, an amount equal to the interest computed at the Interest Rate on the amount of such installment, from the due date
of such installment to the date of payment thereof. If Tenant fails to timely pay any Additional Charges due to any third party Entity (e.g. payment of rent to the lessor under 
  

 - 27 - 

 the Ground Lease), Landlord may pay such third party Entity and will be reimbursed by Tenant on demand the amount paid by
Landlord, plus interest at the Interest Rate from the date of such payment by Landlord until reimbursement by Tenant. To the extent that Tenant pays any Additional Charges to Landlord pursuant to the requirements of this Lease, Tenant shall be
relieved of its obligation to pay such Additional Charges to the Entity to which they would otherwise be due and Landlord shall promptly pay the same from monies received from Tenant and any interest or penalties resulting from late payment thereof
that is the responsibility of the Landlord shall be borne by the Landlord. 
  
 3.5. Payment of Impositions. 
  
 A. Subject to Article 8 hereof relating to permitted contests, Tenant shall pay, or cause to be paid, all Impositions before any fine, penalty, interest or cost (other than any opportunity cost as a result of a
failure to take advantage of any discount for early payment) may be added for non-payment, such payments to be made directly to the State and other taxing authorities where feasible, and shall promptly, upon request, furnish to Landlord copies of
official receipts or other reasonably satisfactory proof evidencing such payments. If any such Imposition may, at the option of the taxpayer, lawfully be paid in installments (whether or not interest shall accrue on the unpaid balance of such
Imposition), Tenant may exercise the option to pay the same (and any accrued interest on the unpaid balance of such Imposition) in installments and, in such event, shall pay such installments during the Term as the same become due and before any
fine, penalty, premium, further interest or cost may be added thereto. Landlord, at its expense, shall, to the extent required or permitted by Applicable Law, prepare and file all tax returns and pay all taxes due in respect of Landlord’s net
income, gross receipts (from any source other than the Rent received by Landlord from Tenant), sales and use, single 
  

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 business, ad valorem, franchise taxes and taxes on its capital stock, and Tenant, at its expense, shall, to the extent
required or permitted by Applicable Laws, prepare and file all other tax returns and reports in respect of any Imposition as may be required by Government Agencies. If any refund shall be due from any taxing authority in respect of any Imposition
paid by Tenant, the same shall be paid over to or retained by Tenant if no Event of Default shall have occurred hereunder and be continuing. If an Event of Default shall have been declared by Landlord and be continuing, any such refund shall be paid
over to or retained by Landlord to be held by Landlord subject to a resolution of any dispute of same between Landlord and Tenant. Landlord and Tenant shall, upon request of the other, provide such data as is maintained by the party to whom the
request is made with respect to the Premises as may be necessary to prepare any required returns and reports. It is Landlord and Tenant’s intent that none of the Leased Property be personal property for any purpose, and in the event Government
Agencies classify any property covered by this Lease as personal property, such personal property shall be deemed to be leased personal property. Landlord shall provide Tenant with copies of assessment notices in sufficient time for Tenant to
prepare a protest, which Landlord shall file upon the Tenant’s request. Landlord may, upon notice to Tenant, at Landlord’s option and at Landlord’s sole expense, appeal, protest, or institute such other proceedings (in its or
Tenant’s name) as Landlord may deem appropriate to effect a reduction of assessments and Tenant shall fully cooperate with Landlord in such protest, appeal or other action. 
  
 B. Landlord shall give prompt Notice to Tenant of all Impositions payable by Tenant hereunder of which Landlord at any time
has received notice and as to which Tenant has received no other notice; provided, however, that Landlord’s failure to give any such notice shall in no way diminish Tenant’s obligation hereunder to pay such Impositions (except that
Landlord shall be responsible for any interest or penalties incurred as a result of Landlord’s failure promptly to forward the same). 
  

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 C. In addition, Tenant shall timely pay at or before the time such become due and payable without
duplication, the following with respect to the period from and after the Commencement Date (while remaining solely liable and paying for such during the period prior to the Commencement Date pursuant to the Asset Purchase Agreement): 
  
 (i) Utility Charges. All charges for electricity,
power, gas, oil, water and other utilities used in connection with the Premises that are not included within the definition of “Impositions”. 
  
 (ii) Insurance Premiums. All premiums for the insurance coverage required to be maintained pursuant to Article 9; 
  
 (iii) Other Charges. All other amounts, liabilities
and obligations arising in connection with the Premises, the Leased Property and Tenant’s obligations in connection herewith not already covered by the definition of Impositions, except those obligations expressly assumed by Landlord pursuant
to the provisions of this Lease or expressly stated not to be an obligation of Tenant pursuant to this Lease. 
  
 D. If Tenant pays or causes to be paid any Additional Charges attributable to periods after the end of the Term, whether upon expiration or sooner
termination of this Lease, Tenant may, within a reasonable time after the end of the Term, provide Notice to Landlord of its estimate of such amounts. Landlord shall promptly reimburse Tenant for all payments of such Additional Charges that are
attributable to any period after the Term to the extent not offset by amounts due from Tenant to Landlord. 
  

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 3.6. Late Payment of Rent, Etc. If any installment of Minimum Rent or Additional Charges
shall not be paid within five (5) days after its due date, Tenant shall pay Landlord, within five (5) days after Landlord’s written demand therefore, as Additional Charges, a late charge (to the extent permitted by law) computed at
the Interest Rate on the amount of such installment, from the due date of such installment to the date of payment thereof. To the extent that Tenant pays any Additional Charges directly to Landlord or any Secured Party pursuant to any requirement of
this Lease, Tenant shall be relieved of its obligation to pay such Additional Charges to the Entity to which they would otherwise be due and Landlord shall pay when due, or cause the applicable Secured Party to pay when due, such Additional Charges
to the Entity to which they are due. In the event of any failure by Tenant to pay any Additional Charges when due, except as expressly provided in Section 3.3 with respect to permitted contests pursuant to Article 8, Tenant shall promptly pay
(unless payment thereof is in good faith being contested and enforcement thereof is stayed) and discharge, as Additional Charges, every fine, penalty, interest and cost which may be added for non-payment or late payment of such items. Landlord shall
have all legal and contractual rights, powers and remedies provided either in this Lease or by statute or otherwise in the case of non-payment of the Additional Charges as in the case of non-payment of the Minimum Rent. 
  
 3.7. Triple Net Lease. The Rent shall be absolutely net to
Landlord so that this Lease shall yield to Landlord the full amount of the installments or amounts of the Rent throughout the Term, subject to any other provisions of this Lease which expressly provide otherwise. This Lease is a net Lease and,
except to the extent otherwise expressly specified in this Lease, it is agreed and intended that Rent payable hereunder by Tenant shall be paid without notice, demand, counterclaim, setoff, deduction or defense and without abatement, suspension,

  

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 deferment, diminution or reduction and that Tenant’s obligation to pay all such amounts, throughout the Term and all
applicable Extension Terms is absolute and unconditional and except to the extent otherwise expressly specified in this Lease, the respective obligations and liabilities of Tenant and Landlord hereunder shall in no way be released, discharged or
otherwise affected for any reason, including without limitation: (a) any defect in the condition, merchantability, design, quality or fitness for use of the Premises, the Leased Property or any part thereof; or the failure of the Premises or
Leased Property to comply with any Applicable Laws, including any inability to occupy or use the Premises by reason of such non-compliance; (b) any damage to, removal, abandonment, salvage, loss, condemnation, theft, scrapping or destruction of
or any requisition or taking of the Premises, the Leased Property or any part thereof, or any environmental conditions on the Premises or any property in the vicinity of the Premises; (c) any restriction, prevention or curtailment of or
interference with any use of the Premises, the Leased Property, or any part thereof; (d) any defect in title to or rights to the Premises or Leased Property or any Lien on such title or rights to the Premises or Leased Property; (e) any
change, waiver, extension, indulgence or other action or omission or breach in respect of any obligation or liability of or by any Person; (f) any bankruptcy, insolvency, reorganization, composition, adjustment, dissolution, liquidation or
other like proceedings relating to Tenant or any other Person, or any action taken with respect to this Lease by any trustee or receiver of Tenant or any other Person, or by any court, in any such proceeding; (g) any right or claim that Tenant
has or might have against any Person, including without limitation Landlord (other than a monetary default) or any vendor, manufacturer, contractor of or for the Premises or the Leased Property; (h) any failure on the part of Landlord or any
other Person to perform or comply with any of the terms of this Lease, or of any other agreement; (i) any 
  

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 invalidity, unenforceability, rejection or disaffirmance of this Lease by operation of law or otherwise against or by
Tenant or any provision hereof; (j) the impossibility of performance by Tenant or Landlord, or both; (k) any action by any court, administrative agency or other Government Agencies; (l) any interference, interruption or cessation in
the use, possession or quiet enjoyment of the Premises or otherwise; or (m) any other occurrence whatsoever, whether similar or dissimilar to the foregoing, whether foreseeable or unforeseeable, and whether or not Tenant shall have notice or
knowledge of any of the foregoing; provided, however, that the foregoing shall not apply or be construed to restrict Tenant’s rights in the event of any act or omission by Landlord constituting gross negligence or willful misconduct for which
the Tenant is not insured or required to be insured hereunder. Except as specifically set forth in this Lease, this Lease shall be noncancellable by Tenant for any reason whatsoever and, except as expressly provided in this Lease, Tenant, to the
extent now or hereafter permitted by Applicable Laws, waives all rights now or hereafter conferred by statute or otherwise to quit, terminate or surrender this Lease or to any diminution, abatement or reduction of Rent payable hereunder. Except as
specifically set forth in this Lease, under no circumstances or conditions shall Landlord be expected or required to make any payment of any kind hereunder or have any obligations with respect to the use, possession, control, maintenance,
alteration, rebuilding, replacing, repair, restoration or operation of all or any part of the Premises, and Tenant expressly waives the right to require any such action at the expense of Landlord pursuant to any law, except as otherwise expressly
set forth in this Lease. 
  
 3.8. Sales Tax. Tenant
shall pay to Landlord all Sales Tax, it being the intention of the parties that Landlord shall be fully reimbursed by Tenant with respect to any and all Sales Tax payable by Landlord with respect to this Lease or any amounts payable by Tenant to

  

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 Landlord hereunder or the use and occupancy by Tenant or any of its subtenants of the Premises or any part thereof. Sales
Tax shall be payable by Tenant at the same time as the amounts to which the Sales Tax relate are payable to Landlord under this Lease, or on demand at such other time or times as Landlord from time to time determines. 
  
 3.9. Deposit of Prepaid Minimum Rent. If Tenant at
Tenant’s option delivers to Landlord one month’s prepaid Minimum Rent with written direction that the amount is to be held and applied pursuant to the provisions of this Section 3.9 as a Deposit for payment of Minimum Rent(
the “Deposit”), Landlord will put such Deposit in a separate interest bearing account, with interest, subject to this Section 3.9, accruing to the benefit of the Tenant and Landlord will not commingle such
funds. The Deposit amount will be applied by Landlord to the payment of Minimum Rent in the event that : (i) Tenant is delinquent in the payment of any installment of Minimum Rent, and (ii) Tenant has been delivered a
written notice of nonpayment of such installment, and (iii) Tenant has failed to cure the payment default within the cure period allowed in this Lease. Tenant will not be deemed in default for failing to pay any single
installment of Minimum Rent so long as Landlord has in its possession an unapplied Deposit in an amount sufficient to pay in full such delinquent installment. Landlord will notify Tenant in writing of any such application of the Deposit
upon such application. At the expiry of this Lease or earlier termination pursuant to the exercise by the Tenant of its Buyback Option under the Buyback Option Agreement, the Landlord will return to the Tenant any unused Deposit plus all interest
accrued thereon, provided the Tenant is current on all Rent payments. If the Lease is terminated by the Landlord as a result of an Event of Default then the Landlord may apply the Deposit and any accrued interest thereon upon such termination
to any damages, losses or costs suffered or incurred by the Landlord as a 
  

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 result of such Event of Default and termination provided that the Landlord provides to the Tenant written evidence of
such damages, losses or costs and returns to the Tenant any unused portion thereof. 
  
 4. USE OF THE PREMISES 
  
 4.1.
Permitted Use. 
  
 A. Tenant shall at all times during
the Term and at any other time that Tenant shall be in use and occupancy of the Premises, continuously use and operate the Premises and the Leased Property solely for commercial purposes in compliance with the terms of the Ground Lease and shall use
reasonable commercial efforts to seek to maximize Gross Revenues. Tenant shall not use the Premises, the Leased Property or any portion thereof for any other use without the prior written consent of Landlord. No use shall be made or permitted to be
made of the Premises or the Leased Property and no acts shall be done thereon which will cause the cancellation of any insurance policy covering the Premises, the Leased Property or any part thereof (unless another adequate policy is available), and
Tenant shall not sell or otherwise provide or permit to be kept, used or sold in or about the Premises any article which may be prohibited by law or by the standard form of fire insurance policies, or any other insurance policies required to be
carried hereunder, or fire underwriter’s regulations. Tenant shall, at its sole cost, comply with all Insurance Requirements. Further, Tenant shall not take or omit to take any action, the taking or omission of which materially impairs the
value or the usefulness of the Premises, the Leased Property, or any part thereof for its Permitted Use. 
  
 B. Tenant shall proceed with all due diligence and exercise commercially reasonable efforts to obtain and maintain all approvals necessary to continuously
use and continuously operate the Premises and Leased Property for its Permitted Use under Applicable Laws. Landlord shall reasonably cooperate with Tenant in this regard, at no expense to Landlord, including executing all applications and consents
required to be signed by Landlord, to which Landlord has no reasonable objection, in order for Tenant to obtain and maintain such approvals. 
  

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 C. Tenant shall not use or suffer or permit the use of the Premises or Leased Property for any unlawful
purpose. Tenant shall not commit or suffer to be committed any waste on the Premises, or cause or permit any unlawful nuisance thereon or therein. Except as may be required by law or any order of a Court having jurisdiction over the Premises, Tenant
shall not permit the Premises, the Leased Property, or any portion thereof, to be used in such a manner as might reasonably impair Landlord’s rights or title thereto or to any portion thereof, or may reasonably allow a claim or claims for
adverse usage or adverse possession by any person or implied dedication of the Premises, the Leased Property or any material portion thereof. 
  
 4.2. Compliance with Legal/Insurance Requirements, Etc. Subject to the provisions of Article 8, Tenant, at its sole expense, shall
(i) comply with all Legal Requirements and Insurance Requirements, and with all reasonable requirements of Secured Loan Documents which do not materially impair Tenant’s operations or cause Tenant to incur any substantial expense, in
respect of the use, operation, maintenance, repair, alteration and restoration of the Leased Property, (ii) comply with all Permitted Encumbrances; and (iii) comply with all appropriate licenses, and other authorizations and agreements
required for, or in respect of, any use of the Leased Property, if any, then being made and which are material to the operation of the Leased Property, and for the proper operation and maintenance of the Leased Property and each part thereof.
Notwithstanding the foregoing, the Tenant will have no obligation to comply, or liability for non-compliance, if such non-compliance is a result of the Landlord exercising its discretion not to consent, to the detriment of the Tenant, to a course of
action by the Tenant as requested by the Tenant pursuant to the terms of this Lease. 
  

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 4.3. Environmental Matters. 
  
 A. In the event of the discovery of Hazardous Materials on any portion of the Premises during the Term, Tenant shall
undertake appropriate and prudent actions to promptly remove such Hazardous Materials, together with all contaminated soil and containers, and shall otherwise remedy the problem in accordance with all Environmental Laws without duplication in
connection with any other agreements between Tenant and Landlord in respect of indemnification for environmental matters. Tenant shall indemnify, defend and hold Landlord harmless from and against all loss, costs, liability and damage (including,
without limitation, engineers’ and legal fees and expenses, and the cost of litigation) arising from the presence of Hazardous Materials on the Premises; and this obligation of Tenant shall survive termination of this Lease for the applicable
period of any statute of limitations. 
  
 B. Each party shall
promptly notify the other party concerning the presence of any Hazardous Materials on or under the Premises, in violation of Applicable Laws, of which the notifying party has knowledge; provided, however, that unless required by Legal Requirements,
the parties shall otherwise maintain such information confidential. 
  
 4.4. Negative Covenants. Tenant covenants and agrees with Landlord that Tenant will not during the Term without the prior written consent of Landlord: 
  

	 	(a)	engage in any activities of a material nature other than the operation of the Premises and all necessary or advisable activities related thereto; 

  

	 	(b)	incur, assume or otherwise become liable to pay any Financial Indebtedness, other than that certain guaranty granted by the Tenant to JPMorgan Chase Bank, N.A. as administrative
agent for certain banks, LaSalle Bank Midwest National Association, as syndication agent and 

  

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 General Electric Capital Corporation, as co-administrative agent; provided, however, that
Tenant may incur, assume or otherwise become liable to pay Financial Indebtedness up to a maximum of $1,500,000, in the aggregate for both the Tenant and CBRLP, but only for working capital necessary to finance inventory and other working capital
needs of Tenant; further provided that in any event none of such Financial Indebtedness shall be secured by an assignment, lien, security or other interest in the Tenant’s rights, title or interest under this Sublease. 
  

	 	(c)	sell or agree to sell or otherwise dispose of or assign any of its interest in this Lease other than in accordance with the provisions of Section 15.1;

  

	 	(d)	enter into any material agreement or contract involving more than $100,000.00 in annual cost or value during the initial Lease Year (with such $100,000 threshold amount to be
increased by three percent (3%), on a compounded basis, for each succeeding Lease Year) that is not approved in advance by the Landlord; 

  

	 	(e)	incur in any calendar year, an aggregate of Capital Expenditures at the Premises that exceed the aggregate amounts budgeted for Capital Expenditures in the Capital Reserve Budget
(other than Capital Expenditures due to Emergency Requirements and Capital Expenditures approved in advance by Landlord); 

  

	 	(f)	enter into any joint venture (regardless of the form of joint venture) or any co-ownership arrangement; 

  

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	 	(g)	enter into any future sublease in respect of the Premises in breach of the Secured Loan Documents; or 

  

	 	(h)	enter into any management agreement or leasing agreement with respect to the Premises or the Leased Property. 

  
 4.5. Nature Of Relationship. Nothing contained in this
Lease shall be deemed to create any relationship between the Landlord and Tenant other than the relationship of landlord and tenant. 
  
 4.6. Application of Ground Lease. Notwithstanding anything else contained herein, Tenant covenants and agrees in favor of the Landlord that:

  

	 	(a)	all services, utilities, repairs (structural or otherwise), replacements, rebuilding, maintenance, restorations, parking facilities, equipment and access to and from the Premises
and the Leased Property and any insurance coverage and any other obligations of the Landlord deriving from the provisions of the Ground Lease will in fact be provided by the lessor under the Ground Lease pursuant to the Ground Lease and Landlord
shall have no obligation during the Term or ever to provide any such services, utilities, repairs (structural or otherwise), replacements, rebuilding, maintenance, restorations, parking facilities, equipment, security services, insurance or access
and/or to perform such other obligations. Tenant covenants and agrees to look solely to the ground lessor for the furnishing of such services, utilities, repairs (structural or otherwise), replacements, rebuilding, maintenance, restorations, parking
facilities, equipment, security services, insurance, access and/or the 

  

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 performance of such other obligations. If the ground lessor shall default in any of its material
obligations to the Landlord with respect to the Premises and/or the Leased Property, so long as no Event of Default has occurred, the Landlord, at Landlord’s option and expense, may seek to enforce the Landlord’s rights, or the Tenant on
behalf of Landlord, and at the sole cost, risk and expense of Tenant, may attempt to enforce Landlord’s rights against the ground lessor. In the event that Tenant shall seek on behalf of Landlord to enforce the Ground Lease, any settlement of
such action shall be subject to the written consent and approval of Landlord, and Tenant shall indemnify and save harmless the Landlord from any costs, liability, damages, or expenses suffered or incurred by Landlord in so doing; and 
  

	 	(b)	if any term of this Lease is directly contradictory to any term of the Ground Lease, the term of the Ground Lease shall prevail. 

  
 4.7. Equipment Lease. Tenant shall not enter into any equipment
lease that is not a capital lease for equipment having a fair market value exceeding $10,000, or annual lease expense exceeding $10,000, without the prior written consent of Landlord, and all such Equipment Leases shall expressly authorize a
turnover to Landlord or its designee of such equipment and Equipment Lease pursuant to the terms of the Turnover Agreement. Tenant agrees to turn over delivery of such equipment to Landlord or its designee in good operating condition and repair at
the termination of this Lease. The dollar limits in this Section 4.7 shall increase annually by 3%, compounded annually. 
  
 4.8. Asset Purchase Agreement Obligations. Tenant shall perform all of those obligations to be undertaken by Tenant in the Skylift
Post-closing Agreement (as such term is 
  

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 defined in the Asset Purchase Agreement) and all reasonable costs and expenses incurred by Tenant in connection therewith
shall be drawn from the Capital Renewals Reserve as and when the monies become available in the Capital Renewals Reserve, not to exceed 2% of Gross Revenues deposited into the account from time to time. If Landlord incurs any reasonable expense
in connection with the Skylift Post-closing Agreement, such expense will be paid, or Landlord will be reimbursed, from the Capital Renewals Reserve as and when the moneys become available in the Capital Renewals Reserve, not to exceed 2% of Gross
Revenues deposited into the account from time to time. Each party will notify the other of any such withdrawal at or prior to the time of such withdrawal, including a description of the reasonable expenses so incurred by category and amount.

  
 5. REPAIRS, MAINTENANCE AND REPLACEMENTS 
  
 5.1. Repairs and Maintenance Costs. 
  
 A. Tenant shall at Tenant’s sole cost and expense, (i) maintain
the Premises and the Leased Property in good repair and working condition, clean and attractive to tourists, and in accordance with all safety and maintenance requirements of Government Agencies and shall make such maintenance, repairs and
alterations as necessary for such purposes, (ii) cause inspections to be made of all lift equipment on a regular basis in accordance with all requirements of Government Agencies, and (iii) not commit waste or permit impairment or
deterioration of the Premises or the Leased Property (normal wear and tear excepted); (iv) not abandon the Premises or Leased Property; (v) comply in all material respects with all Applicable Laws applicable to the Premises and the Leased
Property; (vi) provide prompt written notification to Landlord of any material adverse change to the Premises and Leased Property, such as a major avalanche or landslide, or any other material change to any environmental condition, including,
without limitation, a material change in the presence of biocontaminants, 
  

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 such as mold; (vii) promptly undertake appropriate assessment, remedial and preventative actions sufficient to meet
any guidelines or regulations adopted by applicable Government Agencies or standards generally employed by well operated chairlift operations in connection with the safety of the lift operations and operating equipment. In the event of mold
contamination in any of the Improvements, Tenant shall undertake or cause to be undertaken at Tenant’s sole cost and expense (a) removal of the mold, (b) abatement of the underlying cause of mold (including water intrusion), and
(c) repair of any leaks and associated water damage at the Premises. 
  
 B. If Landlord notifies Tenant in writing of the need for Tenant to undertake repairs and maintenance in accordance with the provisions of this Section 5.1, specifying the items of repair or maintenance in
question, Tenant shall respond within ten (10) Business Days as to Tenant’s planned course of action with respect to the specific items identified by Landlord, or as to such items which Landlord feels are inappropriate, except in the case
of an emergency in which event the Tenant shall respond as quickly as the emergency requires. If Tenant disputes the Landlord’s determination that repair or maintenance is needed, or otherwise fails thereafter to promptly undertake such repairs
and maintenance identified by Landlord, Landlord may at Landlord’s option request arbitration for resolution of the dispute. Landlord shall not have the right to terminate the Lease as a result of such repair or maintenance failure, but shall
have the right to specific performance of the Tenant’s obligations if the arbitrator so awards it. If the arbitrator awards specific performance to Landlord, such award shall be binding upon the Tenant and enforceable in the courts of
Tennessee. The prevailing party in any such arbitration and in obtaining of a court order shall be entitled to all costs and expenses incurred in connection with the enforcement of Tenant’s obligations under this Section 5.1. If the
arbitrator or courts does 
  

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 not specify the time within which such repair or maintenance must be carried out, then the Tenant shall present a plan
for rectification to the Landlord and shall promptly carry out such plan, acting reasonably. 
  
 5.2. Capital Renewals Reserve. 
  
 A. Landlord and Tenant shall establish a reserve account in Landlord’s name, with Tenant’s designee(s) as signatory on the account (the “Capital Renewals Reserve”), in a bank or
similar institution selected by Landlord and reasonably acceptable to Tenant, to cover the cost of approved Capital Expenditures. The Capital Renewals Reserve is the exclusive property of the Landlord. 
  
 B. For each Accounting Period until the resolution, satisfactory to the
Landlord acting reasonably, of those survey matters identified in the Skylift Post-closing Agreement (as such term is defined in the Asset Purchase Agreement) and the payment of all expenses incurred by the Tenant and/or Landlord in such resolution,
Tenant shall transfer into the Capital Renewals Reserve an amount equal to five percent (5%) of Gross Revenues until such time as the amount in the Capital Renewals Reserve reaches $500,000.00, and upon the Capital Renewals Reserve reaching
$500,000.00 the amount contributed in each Accounting Period shall be the lesser of 5% or the amount required to maintain the Capital Renewals Reserve at $500,000.00. For each Accounting Period during the Term hereof after resolution of the survey
matters identified in the Skylift Post-closing Agreement and payment of the expenses incurred by Tenant and/or Landlord in connection therewith, Tenant shall transfer into the Capital Renewals Reserve an amount equal to three percent (3%) of
Gross Revenues, until such time as the amount in the Capital Renewals Reserve reaches $400,000.00, after which time the amount contributed in each Accounting Period shall be the lesser of 3%, or the amount required to maintain the Renewals Reserve
at $400,000.00. Transfers into the Capital Renewals Reserve shall be made at the time of each interim accounting described in Section 16.2 hereof. 
  

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 C. Tenant shall prepare an annual estimate (the “Capital Reserve Budget”) of the
Capital Expenditures anticipated during the ensuing Fiscal Year, and shall deliver the Capital Reserve Budget to Landlord for its review, comment and approval sixty (60) days prior to the end of the Fiscal Year, in each case acting reasonably and
taking into account the operating experience of the Tenant. The Capital Reserve Budget shall also indicate the estimated time schedule for making such replacements, renewals, and additions, a reasonable description of items required to be replaced,
unit costs and costs in the aggregate, together with such additional information as Landlord shall reasonably request. 
  
 D. In compliance with the approved Capital Reserve Budget, Tenant shall from time to time expend moneys from the Capital Renewal Reserve Account as
necessary to make such approved Capital Expenditures as may be required to maintain the Leased Property and all related personal property in good working order and condition and to improve, modernize or alter the Leased Property and related personal
property up to the balance in the Capital Renewals Reserve. No expenditures will be made in excess of said balance without the approval of Landlord. In addition, Tenant shall not, without Landlord’s approval, acting reasonably, make any
expenditures from the Capital Renewals Reserve that, in the aggregate, exceed the total aggregate amount of expenditures set forth in the then-applicable Capital Reserve Budget; provided, however, that Tenant shall be authorized to take appropriate
remedial action (including making any necessary expenditures from the Capital Renewals Reserve above the total aggregate amount set forth in the then-applicable Capital Reserve Budget), without receiving Landlord’s prior approval, to the extent
immediately required to remedy or respond to any of the Emergency 
  

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 Requirements (provided further that Tenant shall notify Landlord of any such remedial action that requires more than a
de-minimus expenditure of funds from the Capital Renewals Reserve and shall promptly deliver to Landlord for Landlord’s approval a revised Capital Reserve Budget showing how such Capital Reserve Budget is impacted as a result of such
emergency expenditure and how such over-Budget expenditure is recommended to be resolved). At the end of each Fiscal Year, any amounts remaining in the Capital Renewals Reserve shall be carried forward to the next Fiscal Year. The Capital Renewals
Reserve will be kept in an interest-bearing account, and any interest which accrues thereon shall be retained in the Capital Renewals Reserve. Interest which accrues on amounts held in the Capital Renewals Reserve, shall not result in any reduction
in the required transfers to the Capital Renewals Reserve set forth in Section 5.2(B) above, or (2) be included in Gross Revenues. 
  
 5.3. Capital Expenditures Exceeding Capital Renewals Reserve. Tenant shall notify Landlord of the need for any Capital Expenditures
determined by Tenant to be necessary or desirable for the Leased Property and related personal property. Tenant will provide to Landlord such information regarding the nature of the Capital Expenditure as Landlord may request. Landlord shall have no
obligation to fund any such Capital Expenditure exceeding the amount of capital available in the Capital Renewals Reserve. Landlord may, in Landlord’s Sole Discretion, fund the cost of such excess Capital Expenditure at a mutually determined
Subsequently Agreed Lease Rate. To the extent that Landlord funds any Capital Expenditures, all such amounts shall be Additional Landlord Expenditures and increase the amount of Minimum Rent payable hereunder for subsequent Fiscal Years. Landlord
agrees to review any alternative financing proposal provided by Tenant to finance such excess Capital Expenditure from a party other than the Landlord and may, in Landlord’s Sole Discretion, approve or refuse to approve the proposed excess
Capital Expenditure and/or such alternative financing option. 
  

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 5.4. Ownership of Replacements. All repairs, alterations, improvements, renewals or
replacements made pursuant to this Article 5, and all Improvements shall be the property of Landlord upon the earlier of affixation or completion; provided that, if such repairs, alterations, improvements, renewals or replacements are paid for, or
financed by, Tenant after Landlord has declined to fund the Capital Renewals Reserve after a Tenant request pursuant to Section 5.3, then all such Improvements, to the extent paid for by Tenant, shall be the property of Tenant upon the earlier
of affixation or completion. Tenant shall maintain, and produce for Landlord’s review upon request, an inventory of all of Tenant’s property used in Tenant’s operations at or located on the Premises. 
  
 5.5. Yield Up. Upon the expiration or sooner termination of
this Lease (unless such termination occurs at the closing after Tenant’s exercise of its buyback option pursuant to the Buyback Option Agreement), Tenant shall at Tenant’s sole cost and expense: 
  
 A. prior to vacating the Premises make or cause to be made such maintenance,
repairs, and alterations as may be necessary to put the Leased Property in the condition required by this Section 5.5; and 
  
 B. vacate and surrender the Premises and deliver the Leased Property to Landlord in substantially the same condition in which the Premises and Leased
Property were in on the Commencement Date, except as repaired, replaced, rebuilt, restored, replaced, altered or added to as permitted or required by the provisions of this Lease, reasonable wear and tear and Condemnation (and casualty damage, in
the event that this Lease is terminated following a casualty in accordance with Article 10) excepted; and 
  

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 C. use Tenant’s good faith, commercially reasonable efforts to transfer to Landlord, and cooperate
with Landlord or Landlord’s nominee in connection with the processing of all applications for transfer to Landlord of, all Licenses and Permits and other governmental authorizations and all Contracts entered into by Tenant, including Contracts
with Governmental Agencies which may be necessary for the use and operation of the Premises and Improvements as then operated, but excluding utility deposits. Landlord shall indemnify and hold Tenant harmless for all claims, costs and expenses
(including reasonable legal fees) arising from acts or omissions by Landlord under such Contracts subsequent to the date of transfer thereof to Landlord; and Tenant shall indemnify and hold Landlord harmless for all claims, costs and expenses
(including reasonable legal fees) arising from acts or omission by Tenant under such Contracts and/or the Licenses and Permits prior to the date of transfer thereof to Landlord; and (ii) Tenant shall re-assign to Landlord or Landlord’s
nominee all of its right, title and interest under all then existing subleases. In addition, any non-exclusive license pursuant to which Landlord allows Tenant’s use of the Trademarks shall automatically terminate. 
  
 D. turn over and deliver to Tenant all of the personal property required to
be turned over to Tenant pursuant to the Turnover Agreement. 
  
 5.6. Management Matters. Tenant shall not enter into a management agreement (the “Management Agreement”) without Landlord’s prior written consent. Any such Management Agreement shall expressly provide
that the Management Agreement and all provisions thereof are expressly subordinate and subject to the terms of this Lease, and that the manager shall at all times be an “eligible independent contractor” as defined in
Section 856(d) of the Code. The terms of such Management Agreement (a) shall not, in Landlord’s and its counsel’s reasonable opinion, cause the Rent to fail to qualify as “rents from real property” within the meaning of

  

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 Section 856(d) of the Code; (b) shall expressly provide that if Landlord and its counsel reasonably conclude
that the terms of the Management Agreement will have such an effect, then the terms of the Management Agreement will be modified so that the Management Agreement, in the reasonable opinion of Landlord and its counsel, does not cause the Rent to be
so characterized under the Code; provided, however, no such modifications shall affect the amount of management fees or the practical realization of the rights and benefits of the Manager thereunder; and (c) shall not in the Landlord’s
reasonable opinion be inconsistent with the terms and conditions of any Secured Loan Documents. 
  
 6. IMPROVEMENTS, ETC. 
  
 6.1. No Liens. Tenant shall not grant a Lien on or security interest in the Premises or the Leased Property, or Tenant’s interest under this Lease, without the prior written consent of Landlord, which consent may be
withheld by Landlord in Landlord’s Sole Discretion. 
  
 6.2. Salvage. Other than Tenant’s personal property, all materials which are scrapped or removed in connection with the making of repairs, alterations, improvements, renewals, replacements and additions pursuant to
Article 5 shall be disposed of by Tenant and the net proceeds thereof, if any, shall be deposited into the Capital Reserve Account. 
  
 7. LIENS 
  
 Subject to Article 8, Tenant shall not directly or indirectly, create or allow to remain, and shall promptly discharge, at its expense, any Lien,
encumbrance, attachment, title retention agreement or claim upon the Premises, the Leased Property, or Tenant’s interest under this Lease, or any attachment, levy, claim or encumbrance in respect of the Rent, other than (a) Permitted
Encumbrances, (b) restrictions, Liens and other encumbrances which are consented to in writing by Landlord, (c) Liens for those taxes of Landlord which Tenant is not required to pay hereunder, (d) subleases, if any, permitted by
Article 15, (e) Liens for Impositions or for 
  

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 sums resulting from non-compliance with Legal Requirements so long as (i) the same are not yet due and payable, or
(ii) are being contested in accordance with Article 8, (f) Liens of mechanics, laborers, materialmen, suppliers or vendors incurred in the ordinary course of business that are not yet due and payable (but will be paid in full by Tenant or
Manager) or are for sums that are being contested in accordance with Article 8, (g) any Secured Loan Documents or other Liens which are the responsibility of Landlord pursuant to the provisions of Article 11, and (h) Landlord’s Liens.

  
 8. PERMITTED CONTESTS 
  
 Tenant shall have the right to contest the amount or validity of any
Imposition, Legal Requirement, Insurance Requirement, Environmental Obligation, Lien, attachment, levy, encumbrance, charge or claim (collectively, “Claims”) as to the Premises and Leased Property, by appropriate legal action or
proceedings, conducted in good faith and with due diligence, provided that (a) the foregoing shall in no way be construed as relieving, modifying or extending Tenant’s obligation to pay any Claims required hereunder to be paid by Tenant as
finally determined, (b) such contest shall not cause Landlord or Tenant to be in default under any Secured Loan Documents, deed of trust or other agreement encumbering the Premises or any part thereof and Tenant shall not contest any
requirement set forth in the Secured Loan Documents, (c) no part of the Premises, the Leased Property nor any Rent therefrom shall be in any immediate danger of sale, forfeiture, attachment or loss, and (d) Tenant hereby indemnifies and
holds harmless Landlord from and against any cost, claim, damage, penalty or reasonable expense, including reasonable legal fees, incurred by Landlord in connection therewith or as a result thereof. Landlord agrees to join in any such proceedings if
required legally to prosecute such contest, provided that Landlord shall not thereby be subjected to any liability therefore (including, without limitation, for the payment of any costs or expenses in connection therewith) 
  

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 unless Tenant agrees to assume and indemnify Landlord with respect to the same. Tenant shall be entitled to any refund of
any Claims and such charges and penalties or interest thereon which have been paid by Tenant or paid by Landlord to the extent that Landlord has been reimbursed by Tenant. If Tenant shall fail (a) to pay or cause to be paid any Claims when
finally determined, (b) to provide reasonable security therefore, or (c) to prosecute or cause to be prosecuted any such contest diligently and in good faith, Landlord may, upon Notice to Tenant, pay such charges, together with interest
and penalties due with respect thereto, and Tenant shall reimburse Landlord therefore, upon demand, as Additional Charges, together with interest at the Interest Rate from the date of Landlord’s payment until reimbursement. 
  
 9. INSURANCE 
  
 Insurance Coverages. Commencing with the Commencement Date, and throughout the Term, Tenant shall procure and maintain for the benefit of
Landlord, at Tenant’s sole cost and expense, the following: 
  

	 	(a)	insurance against damage to the Premises and Leased Property from risks of all nature including, without limitation, avalanche, erosion, landslide, wind & hail, flood and
earthquake (but only if the Premises is within a flood or earthquake zone for which such insurance is customarily obtained) and comprehensive boiler and machinery insurance with respect to any boiler, pressure vessel and unfired pressure vessel and
all air conditioning equipment, auxiliary piping, motors, compressors and electrical equipment (all on a broad form, blanket replacement cost basis), in aggregate amounts which shall not be less than the full Replacement Value thereof and in no
event less than the minimum amount necessary to avoid the effect of co-insurance provisions of such policies; Ordinance and Law coverage; 

  

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	 	(b)	use and occupancy or business interruption insurance covering loss of income to Tenant and Landlord, as applicable, for a minimum indemnity period of twelve (12) months
resulting from interruption of business caused by the occurrence of any of the risks insured against under the property damage insurance referred to in Section 9.1A above; 

  

	 	(c)	comprehensive or commercial liability insurance on a claims made basis against claims for personal injury, death or property damage suffered by others arising out of the operations
of Tenant or other occupants of the Premises, indemnifying and protecting Tenant and Landlord, any Secured Party specified by Landlord, and the lessor under the Ground Lease if required thereunder, in such amounts and to such extent as may from time
to time be usual and prudent for companies operating or owning similar properties and businesses (which amounts shall initially be $25,000,000, including liquor liability, for any personal injury, death, property damage or other claim in respect of
any one accident or occurrence) and, without limitation of the foregoing, with provisions for cross liability and severability of interests and naming Landlord and any Secured Party specified by Landlord as an additional insured; and if alcoholic
beverages are served on the Premises, liquor liability is required in the above; 

  

	 	(d)	Business auto liability insurance, including owned, non-owned and hired vehicles, for combined single limits (including bodily injury and property damage) of not less than five
million dollars ($5,000,000) each Occurrence; 

  

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	 	(e)	worker compensation insurance or insurance required by similar employee benefit acts as required by law, as well as employer’s liability insurance in amounts not less than one
million dollars ($1,000,000) per accident/per disease; 

  

	 	(f)	such additional insurance as may reasonably be required from time to time, by (i) the Ground Lease and (ii) a Secured Party under any Secured Loan Documents.

  
 9.2. General Insurance Provisions.

  
 A. All insurance described in Section 9.1 shall be with
companies with an A.M. Best Rating of A-VII or greater. If Tenant wishes to place insurance in an insurance company that is affiliated with Tenant, the financial standing and creditworthiness of the affiliate is subject to Landlord’s approval,
and Tenant will deliver Landlord such financial information regarding the affiliate as may be requested by Landlord prior to approval. All insurance may be obtained through blanket insurance programs, provided that such blanket programs
substantially fulfill the requirements specified herein. The blanket insurance programs may include deductibles or risk retention levels; however, the deductibles or risk retention levels allocated to the Premises and the Leased Property shall be
limited to the Insurance Retention as defined in Section 9.3. The charge-back/deductible for general liability insurance and workers’ compensation insurance allocated to the Premises and Leased Property shall not exceed One Hundred
Thousand Dollars ($100,000) unless such greater amount is agreeable to both Landlord and Tenant. The property insurance deductible allocated to the Premises and the Leased Property shall not exceed One 
  

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 Hundred Thousand Dollars ($100,000) unless such greater amount is agreeable to both Landlord and Tenant, or if a higher
deductible for high hazard risks (i.e., wind or flood) is mandated by the insurance carrier. 
  
 B. The insurance required under Section 9.1(A) shall name the Landlord as the “lender loss payee,” as well as the lessor under the Ground Lease if required thereby, and any Secured Party specified by
Landlord, in writing, as required by the Secured Loan Documents. All proceeds of insurance obtained pursuant to Sections 9.1(A) shall be payable to Landlord as a lender loss payee and shall be made available by Landlord to the repair,
rebuilding or replacement of the damaged Leased Property. Landlord shall make available to Tenant the insurance proceeds required by Tenant from time to time to pay the costs of repair, rebuilding or replacement of the damaged Lease Property by
deposit of such sums into the Capital Renewal Reserves account or otherwise as required by Landlord. If for any reason the Leased Property is not repaired, rebuilt or replaced, or if there are excess insurance proceeds, Landlord shall be entitled to
retain such monies or, at Landlord’s option, deposit such monies into the Capital Renewals Reserve fund for future Capital Expenditure requirements. 
  
 C. Tenant shall deliver to Landlord prior to the effective date of this Lease (and, with respect to any renewal policy, at least thirty (30) days
prior to the expiration of the existing policy) certificates of insurance evidencing the insurance coverages required under Section 9.1 and any renewals thereof. All such certificates of insurance shall, to the extent obtainable, state that the
insurance shall not be cancelled or materially reduced without at least sixty (60) days’ prior written notice to the certificate holder. Upon Landlord’s request, copies of said policies shall be delivered to Landlord for
Landlord’s review. All such insurance shall be evaluated by Landlord, Tenant and Secured Party from time to time to ensure that the limits and coverages are adequate. 
  

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 D. Notwithstanding the foregoing or anything else contained herein or elsewhere, in addition to the
foregoing requirements, Tenant shall also ensure that all requisite insurance is obtained and maintained throughout the Term in accordance with all requirements set forth in any Secured Loan Documents (including, without limitation, all requirements
with respect to the insurance company providing the policies and all other provisions relating to insurance set forth in the Secured Loan Documents). 
  
 9.3. Costs and Expenses. 
  
 A. All charges under any blanket programs shall be allocated to the Premises and other similar participating projects on a reasonable basis. 

 
 B. “Insurance Retention” shall mean the insurance policy
deductible; however, for any insurance obtained through the blanket insurance programs, “Insurance Retention” shall mean the Premises per occurrence limit for any loss or reserve as established for the Premises, which limit shall be the
same as is applied to other similar projects participating in the blanket insurance programs, or such higher amount if mandated by the insurer for high hazard risks such as earthquake, flood and wind. 
  
 9.4. Waiver of Subrogation. All policies of insurance will
provide that (i) the insurance company will have no right of subrogation against the holder of any Secured Party or Landlord, or any of their respective Affiliates or the agents or employees thereof, and (ii) that the proceeds thereof in
the event of loss of damage will, to the extent payable to any Secured Party, be payable notwithstanding any act of negligence or breach of warranty by Landlord which might otherwise result in the forfeiture or nonpayment of such insurance proceeds.

  

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 9.5. Indemnification of Landlord. Except as expressly provided herein including as
otherwise covered by insurance, Tenant shall protect, indemnify and hold harmless Landlord for, from and against all liabilities, obligations, claims, damages, penalties, causes of action, costs and reasonable expenses (including, without
limitation, reasonable legal fees), to the maximum extent permitted by law, imposed upon or incurred by or asserted against Landlord by reason of: (a) any accident, injury to or death of persons or loss of or damage to property of third parties
occurring during the Term on or about the Premises and Leased Property or rights of way under Tenant’s control, and (b) any use, misuse, condition, management, maintenance or repair by Tenant or anyone claiming under Tenant of the Premises
or the Leased Property or Tenant’s personal property during the Term or any litigation, proceeding or claim by Governmental Agencies to which Landlord is made a party or participant relating to such use, misuse, condition, management,
maintenance, or repair thereof to which Landlord is made a party; provided, however, that Tenant’s obligations hereunder shall not apply to any liability, obligation, claim, damage, penalty, cause of action, cost or expense arising from any
gross negligence or willful misconduct of Landlord, its employees, agents or contractors. Tenant, at its expense, shall defend any such claim, action or proceeding asserted or instituted against Landlord covered under this indemnity or may
compromise or otherwise dispose of the same. The obligations of Tenant under this Section 9.5 shall survive the termination of this Lease for a period of three (3) years, plus for such additional time as is necessary until any such claim,
action or proceeding asserted or instituted against Landlord covered under this indemnity is completely and finally resolved and all opportunities for appeals have passed. 
  
 9.6. Landlord Advance. If Tenant fails to deliver the original policies and certificates required under
Section 9.2C within the time required thereby, Landlord shall have the right to 
  

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 obtain such insurance at Tenant’s expense and, upon demand, Tenant shall reimburse Landlord for the cost of any such
insurance, together with interest at the Interest Rate from the date of Landlord’s payment until reimbursement. 
  
 10. DAMAGE, REPAIR AND CONDEMNATION 
  
 10.1. Partial Destruction. In the event of Partial Destruction to any Leased Property, Rent shall not abate and Tenant shall, subject to the
Secured Loan Documents, using the proceeds of insurance and with due diligence, repair, rebuild or replace the damaged Leased Property, such that following such repair, rebuilding or replacement such Leased Property shall be substantially the same
as, or better than, prior to such damage or destruction. Tenant shall promptly notify Landlord and the applicable insurance carriers of all such casualties and fully cooperate in processing the claim with the applicable insurance carriers. Tenant
shall promptly make all necessary arrangements for the appropriate contractors and suppliers to repair and/or replace the damaged portion of the Leased Property. All such work shall be undertaken by Tenant in a workmanlike manner and in accordance
with plans and specifications approved by Landlord (which approval or disapproval shall be made within fifteen (15) business days after Landlord receives the applicable plans or specifications and, if applicable, within five (5) business
after Landlord receives any modifications of said plans or specifications), failing which the Landlord shall be deemed to have approved, provided that the parties agree that the standard for such repair and/or replacement shall be to repair and/or
replace the damaged portion of the Improvements to levels of quality and quantity that are equal to those that existed with respect to such portion of the Improvements prior to the occurrence of the damage at issue. If insurance proceeds are
insufficient to pay all of the costs of such repair, rebuild, or replacement, Tenant shall use funds available in the Capital Renewals Reserve to fund such shortfall, and if there are inadequate funds in the Capital Renewals Reserve, then the
provisions of Section 5.3 regarding 
  

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 “Capital Expenditures Exceeding the Capital Renewals Reserve” shall apply. Tenant shall, upon completion of
such repair, rebuilding or replacement, be entitled to continue its operation of the Leased Property under the terms and conditions of this Lease. If Tenant fails to diligently pursue the repair, rebuilding or replacement, or in any event fails to
substantially commence such repair, rebuilding or replacement within one hundred eighty (180) days after the date of such occurrence, or if Tenant thereafter fails to diligently prosecute and complete the work, Landlord may, at its option and
in addition to any other remedy it may have under this Lease, give to Tenant Notice electing to undertake such repair, replacement or rebuilding of the Leased Property in which event the insurance proceeds and funds in the Capital Renewals Reserve
shall be available to Landlord for such repair, replacement or rebuilding. If Tenant determines that for reasons of obsolescence or any other reason it would be best not to undertake any such repair, replacement or rebuilding, and Landlord agrees in
writing, then the Lease shall be deemed to have been amended to remove the damaged portion of the Leased Property only and the definition of “Leased Property” will be deemed to have been accordingly modified to take into account the
removal of such portion of the Premises. 
  
 10.2. Major
Destruction. In the event of a Major Destruction of the Leased Property, Rent shall not abate and, subject to the Secured Loan Documents, Landlord may in its Sole Discretion elect within thirty (30) days after the date of such event, to
terminate this Lease (subject to the Tenant’s right to extend the Lease as provided for in the definition of Major Destruction), in which event this Lease shall be deemed to have terminated. In such an event, all insurance proceeds shall be the
sole and absolute property of Landlord. 
  
 10.3.
Reinstatement. If this Lease is terminated with respect to any portion or portions of the Leased Property, pursuant to Section 10.1 and thereafter such portion or portions that were 
  

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 damaged or destroyed are repaired or rebuilt within five (5) years after the occurrence of the damage or
destruction, this Lease (if still in force) will be reinstated with respect to such Leased Property effective on the first day of the Fiscal Year immediately following the Fiscal Year in which the work is substantially completed and the definition
of Leased Property hereunder will be deemed to have been adjusted accordingly. 
  
 10.4. Condemnation. 
  
 A. In the event all or substantially all of the Premises and Improvements shall be taken in any Condemnation or similar proceeding by any competent authority for any public or quasi-public use or purpose, or in the event a portion of the
Premises or Leased Property that is critical to the operation (e.g. access) shall be so taken, and the result is that the continued operation of the Premises as a skylift area is no longer possible, this Lease shall terminate unless each of Landlord
and Tenant agree to the contrary in writing. In either such event, Landlord shall be entitled to receive all Awards resulting from such Condemnation. 
  
 B. In the event a portion of the Premises and Improvements shall be taken by the events described in Section 10.4A, or the entire Premises and
Improvements are affected but on a temporary basis, and the result is not to make it impossible to continue to operate the Premises, this Lease shall not terminate and shall continue in full force and effect without abatement of Rent. If however any
of the Improvements are damaged by such taking, then Tenant shall diligently repair and restore such damaged portion, using so much of any Award for any such partial taking or Condemnation as shall be necessary to render the Leased Property
equivalent to its condition prior to such event. Landlord shall be entitled to the entire Award in any such circumstance, but shall transfer such portion of any Award received by it that is reasonably required to repair and restore the Improvements
damaged by any Condemnation to the Capital 
  

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 Renewals Reserve, or at Landlord’s option to an escrow agent (“Escrow Agent”) for the purpose of
funding the cost of the repair or restoration. Tenant agrees that a Secured Party is an acceptable Escrow Agent. Such amounts shall be drawn by Tenant from the Capital Renewals Reserve, or advanced by Escrow Agent, so as to permit payment for the
cost of any restoration and repair. The obligations under this Section 10.4B to disburse the Award and such other amounts shall be subject to (a) the collection thereof and (b) the release of such Award by the applicable Secured
Party. Tenant’s obligation to repair and restore the Improvements shall be subject to the availability of the Award, and if the Award is insufficient and there are inadequate funds in the Capital Renewals Reserve a Landlord advance as
contemplated by Section 5.3, to fund the cost of such repair or restoration. 
  
 10.5. Secured Loan Documents. Notwithstanding the foregoing or anything else contained herein or elsewhere, Tenant acknowledges and agrees that the disposition of all matters relating to Partial
Destruction, Major Destruction or Condemnation shall be governed by the Secured Loan Documents, to the extent applicable. 
  
 11. SECURITY 
  
 11.1. Security. 
  
 A. Landlord shall be permitted to encumber its interest in this Lease, the Leased Property or any part thereof, in favor of any Secured Party from time to
time, subject to the terms and conditions of the Ground Lease. 
  
 B. In the event Tenant receives any reasonable request for information on the Premises from any Secured Party, Tenant will, at Landlord’s cost, provide or distribute such information directly to such Secured Party. 
  
 11.2. Subordination and Attornment. Tenant shall, subject to a
Secured Party delivering to the Tenant a non-disturbance agreement pursuant to which the Lease will continue 
  

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 as long as no Event of Default of Tenant has occurred, provide to any Secured Party an instrument (the
“Subordination Agreement”) in form and content acceptable to Secured Party pursuant to which: 
  
 A. this Lease and any extensions, renewals, replacements or modifications thereto, and all right and interest of Tenant in and to the Premises and the
Leased Property shall be subject and subordinate to such Secured Loan Documents; 
  
 B. Tenant shall be obligated to each of the Subsequent Owners (as defined below) to perform all of the terms and conditions of this Lease for the balance of the remaining Term hereof, with the same force and effect as
if such Subsequent Owner were Landlord; 
  
 C. If the Secured
Party or a Subsequent Owner takes any proceedings in respect of the Premises or the Leased Property (including taking possession, foreclosure or power of sale) as a result of the occurrence of a default under the Secured Loan Documents, Tenant shall
attorn and be bound to such Secured Party or a Subsequent Owner under all of the terms of this Lease for the balance of the Term thereof remaining, including any renewals and/or extensions, with the same force and effect as if Secured Party or a
Subsequent Owner were the landlord under this Lease, and Tenant hereby attorns to Secured Party or a Subsequent Owner as landlord under this Lease, such attornment to take effect automatically, without the execution of any further instrument on the
part of any of the parties hereto, immediately upon the Secured Party or a Subsequent Owner taking possession or control of the Premises or foreclosing under the Secured Loan Documents or otherwise becoming the permittee of the Premises or the owner
of the Leased Property, but in each case subject to any conditions or restrictions imposed under or pursuant to the Ground Lease. If Secured Party exercises a power of sale as a result of the occurrence of a default under the Secured Loan Documents,
Tenant shall attorn and be bound to 
  

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 the Subsequent Owner pursuant to such power of sale under all of the terms of this Lease for the balance of the Term
hereof remaining, including any renewals and extensions, with the same force and effect as if the Subsequent Owner were the landlord under this Lease, such attornment to take effect automatically, without the execution of any further instrument on
the part of the purchaser or Tenant, immediately upon the Subsequent Owner taking possession of the Premises. Tenant also agrees, however, to execute and deliver at any time and from time to time, upon the request of Secured Party or any such
Subsequent Owner: (a) any instrument or certificate which, in the reasonable judgment of Secured Party or such Subsequent Owner may be necessary or appropriate to evidence such attornment, and (b) an up to date estoppel certificate in form
and substance consistent with this Lease. Further, but subject to Section 11.2D below, from and after any such attornment, Secured Party or such a Subsequent Owner shall be bound to Tenant under all of the terms, covenants and conditions of
this Lease and Tenant shall not be disturbed in its rights to use and occupancy under the terms of this Lease; provided, however, that Secured Party or such Subsequent Owner shall not be: 
  
 (i) liable for any action or omission of, or any payment
required to be made by, any prior landlord (including Landlord); 
  
 (ii) bound by any rent which Tenant might have paid for more than the current month to any prior landlord (including Landlord); 
  

(iii) liable for the return or application of any security deposits unless Landlord actually delivers such deposits to Secured Party;

  
 (iv) liable for the cost of any Improvements
which are Landlord’s responsibility; 
  

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 (v) bound by any termination, surrender or amendment or modification of this Lease made
without Secured Party’s written consent; or 
  
 (vi) subject to any offsets or deficiencies, which Tenant might be entitled to assert against any prior landlord (including Landlord). 
  
 D. Notwithstanding the foregoing or anything else contained herein or elsewhere, Tenant acknowledges and agrees that if Tenant is in default under this
Lease and there is a foreclosure of the Security Instrument (or a deed, vesting order or other conveyance in lieu of foreclosure), or other exercise by such Secured Party (or its successor or assign) of its rights or remedies in connection with
which title or possession of the Ground Lease or the Leased Property, or any portion thereof is transferred to the Secured Party (or its designee) or to a purchaser at foreclosure or to a subsequent purchaser from the Secured Party (or from its
designee) (all of the foregoing shall collectively be referred to as “Subsequent Owners”), this Lease may or may not be terminated in the Secured Party’s or the Subsequent Owner’s Sole Discretion. If the Secured Party or
the Subsequent Owner elects to terminate this Lease, Tenant shall first assign all of its right, title and interest in any subleases to the Secured Party or Subsequent Owner at no cost to the Secured Party or Subsequent Owner and comply with the
balance of this Lease. 
  
 11.3. Liens; Credit.
Tenant shall not cause any Lien to be filed against the Premises or the Leased Property and shall use commercially reasonable efforts to prevent any Liens from being filed against the Premises or the Leased Property which may arise from any
maintenance, repairs, alterations, improvements, renewals or replacements in or to the Premises or the Leased Property, and shall obtain the release of any such Liens. This obligation shall not limit Tenant’s rights to Contest provided for
under Article 8 hereunder nor to grant a security interest in respect of any Financial Indebtedness incurred by the Tenant in connection with its working capital within the limitations set forth in Section 4. 
  

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 11.4. Amendments Requested by Secured Party. If requested by any Secured Party or
prospective Secured Party, Tenant agrees to execute and deliver any amendment of this Lease that is reasonably required by such Secured Party or prospective Secured Party, provided that Tenant shall be under no obligation to amend this Lease if the
result of such amendment would be to materially and adversely increase Tenant’s obligations or to materially and adversely affect Tenant’s rights under this Lease. Any such amendment shall be in effect only for the period of time in which
such Secured Loan Documents are outstanding. 
  
 11.5.
Blocked Account Arrangements. To the extent required by a Secured Party from time to time, Tenant and the Secured Party shall enter into a written lock box or blocked account agreement or agreements, in the form and content requested by
the Secured Party, in connection with the deposit, payment and disbursement only of all Rent hereunder from time to time and such other matters may be agreed between Landlord and Tenant each acting reasonably. 
  
 11.6. Direction re: Payment of Secured Loan and other Financial
Indebtedness. If so directed by Landlord in writing, Tenant will pay Rent payable to Landlord hereunder directly to any Secured Party or other lender or creditor in respect of any Financial Indebtedness of Landlord. 
  
 12. DEFAULTS AND REMEDIES 
  
 12.1. Events of Default. The occurrence of any one or more of
the following events shall constitute an “Event of Default” hereunder: 
  

	 	(a)	should Tenant fail to make any payment of Minimum Rent within five (5) Business Days after Notice thereof, or fail to make payment of any other Rent or any other sum, payable
hereunder when due and such failure shall continue for a period of ten (10) days after Notice thereof; or 

  

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	 	(b)	should Tenant fail to maintain the insurance coverages required under Article 9; or 

  

	 	(c)	should Tenant breach or be in default under, and, if a cure period is applicable, fail to timely cure in accordance with the provisions thereof, any obligation under the Ground
Lease that is applicable to Tenant pursuant to this Lease; or 

  

	 	(d)	should CBRLP breach or be in default under, and, if a cure period is applicable, fail to timely cure in accordance with the provisions thereof, any of the Cypress Leases; or

  

	 	(e)	subject to Article 8 relating to permitted contests, should Tenant default in the due observance or performance of any of the terms, covenants or agreements contained herein to be
performed or observed by it (other than as specified in clauses (a) and (b) above) and such default shall continue for a period of thirty (30) days after Notice thereof from Landlord to Tenant; provided, however, that if such default
is susceptible of cure but such cure cannot be accomplished with due diligence within such period of time and if, in addition, Tenant commences to cure or cause to be cured such default within thirty (30) days after Notice thereof from Landlord
and thereafter prosecutes the curing of such default with all due diligence, such period of time shall be extended to such period of time (not to exceed three hundred sixty-five (365) days) as may be necessary to cure such default with all due
diligence; or 

  

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	 	(f)	should Tenant (or Guarantor during the period that its Guaranty is in effect) generally not be paying its debts as they become due or should Tenant (or Guarantor during the period
that its Guaranty is in effect) make a general assignment for the benefit of creditors; or 

  

	 	(g)	should any petition be filed by, on behalf of or against Tenant (or Guarantor during the period that its Guaranty is in effect) under the Bankruptcy and Insolvency Act, or
should any other proceeding be instituted by or against Tenant (or Guarantor during the same period) seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, reorganization, arrangement, adjustment or composition of it or its debts
under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for Tenant (or Guarantor during the
same period) or for any substantial part of the property of Tenant or Guarantor and such proceeding is not dismissed within ninety (90) days after institution thereof, or should Tenant take any action to authorize any of the actions set forth
above in this paragraph; or 

  

	 	(h)	should Tenant (or Guarantor during the period its Guaranty is in effect) cause or institute any proceeding for its dissolution or termination; or 

  

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	 	(i)	unless Tenant shall be contesting such Lien or attachment in good faith in accordance with Article 8, should the estate or interest of Tenant in the Premises or any part thereof be
levied upon or attached in any proceeding and the same shall not be vacated, discharged or fully bonded or otherwise secured to the reasonable satisfaction of Landlord within the later of (i) one hundred and twenty (120) days after such
attachment or levy in which case Tenant shall give notice to Landlord of the dispute but Tenant may defend in any reasonably suitable way, and (ii) thirty (30) days after receipt by Tenant of Notice thereof from Landlord; it being
understood and agreed that Tenant may commence a contest of such matter pursuant to Article 8 above following such Notice from Landlord; or 

  

	 	(j)	any default by the Guarantor under the Guaranty, and failure to cure within any applicable cure period, shall be a default under this Lease, including without limitation failure to
maintain minimum liquidity as set forth in the Guaranty; 

  
 then, and in any such event (and to the extent expressly provided above, the passage without cure of any cure period expressly provided above), the next three (3) months’ Rent shall immediately become due and payable to Landlord
and Landlord, in addition to all other remedies available to it, may terminate this Lease by giving Notice thereof to Tenant and upon the expiration of the time fixed in such Notice but in any event not less than thirty (30) days, this Lease
shall terminate and all rights of Tenant under this Lease shall cease. Landlord shall have and may exercise all rights and remedies available at law and in equity to Landlord as a result of Tenant’s breach of this Lease, including without
limitation the right of re-entry upon the Premises and the right to retake possession of the Leased Property upon and at any time after the occurrence of an Event of Default. 
  

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 12.2. Remedies. None of (a) the termination of this Lease pursuant to
Section 12.1, (b) the repossession of the Premises or any portion thereof, (c) the failure of Landlord to re-let the Premises, or the Leased Property, or any portion thereof, nor (d) the re-letting of all or any portion of the
Premises or the Leased Property, shall relieve Tenant of its liability and obligations hereunder, all of which shall survive any such termination, repossession or re-letting of the Premises and Leased Property. In the event of any such termination,
repossession or re-letting, Tenant shall forthwith pay to Landlord all Rent due and payable under the Lease through and including the date of such termination, repossession or re-letting. Thereafter, Tenant, until the end of what would have been the
Term of this Lease (assuming no extension beyond the then-current Term) in the absence of such termination, repossession or re-letting, and whether or not the Premises or any portion thereof shall have been re-let, shall, at Landlord’s option,
be liable to Landlord for, and shall pay to Landlord, as current damages, the Rent and other charges which would be payable hereunder for the remainder of the Term had such termination, repossession or re-letting not occurred, LESS the net proceeds,
if any, of any re-letting of the Premises or any other operation of the Premises by Landlord (if Landlord repossesses the Premises), after deducting all reasonable expenses in connection with such re-letting, or operation, as applicable, including,
without limitation, all reasonable repossession costs, brokerage commissions, legal expenses, legal fees, advertising, expenses of employees, alteration costs and expenses of preparation for such re-letting (such expenses being hereinafter referred
to as the “Re-letting Expenses”). Tenant shall pay such current damages to Landlord monthly on the days on which the Minimum Rent would have been payable hereunder if this Lease had not been so terminated. 
  

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 In case of any Event of Default, re-entry, expiration or dispossession by summary proceedings or
otherwise, Landlord may: (a) re-let the Premises and the Leased Property or any part or parts thereof, either in the name of Landlord or otherwise, for a term or terms which may at Landlord’s option, be equal to, less than or exceed the
period which would otherwise have constituted the balance of the Term and may grant concessions or free rent to the extent that Landlord considers advisable and necessary to re-let the same, and (b) may make such reasonable alterations, repairs
and decorations thereof as Landlord, acting reasonably, considers advisable and necessary for the purpose of re-letting the Premises and Leased Property; and the making of such alterations, repairs and decorations shall not operate or be construed
to release Tenant from liability hereunder as aforesaid. Landlord shall in no event be liable in any way whatsoever for any failure to re-let all or any portion of the Premises or the Leased Property, or, in the event that such is re-let, for
failure to collect the rent under such re-letting. To the maximum extent permitted by law, Tenant hereby expressly waives any and all rights of redemption granted under any present or future laws in the event of Tenant being evicted or dispossessed,
or in the event of Landlord obtaining possession of the Premises and Leased Property, by reason of the occurrence and continuation of an Event of Default hereunder. 
  
 12.3. Application of Funds. All revenues received by Tenant from the operation of the Premises and Leased
Properties subsequent to an Event of Default shall be first applied to the payment of Rent as determined by the Landlord. Any payments received by Landlord under any of the provisions of this Lease during the existence or continuance of any Event of
Default (and any payment made to Landlord rather than Tenant due to the existence of any Event of Default) 
  

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 shall be applied to Tenant’s current and past due obligations under this Lease in such order as Landlord may
determine or as may be prescribed by the laws of the State with the balance, if any, to the benefit of Tenant. 
  
 12.4. Landlord’s Right to Cure Tenant’s Default. If an Event of Default shall have occurred and be continuing, Landlord, after
Notice to Tenant (which Notice shall not be required if Landlord shall reasonably determine there is an Emergency Requirement), without waiving or releasing any obligation of Tenant and without waiving or releasing any Event of Default, may (but
shall not be obligated to), at any time thereafter, make such payment or perform such act for the account and at the expense of Tenant, and may, to the maximum extent permitted by law, enter upon the Premises and the Improvements or any portion
thereof for such purpose and take all such action thereon as, in the reasonable opinion of the Landlord, may be necessary or appropriate therefor. No such entry shall be deemed an eviction of Tenant. All reasonable costs and expenses (including,
without limitation, reasonable legal fees) incurred by Landlord in connection therewith, together with interest thereon (to the extent permitted by law) at the Interest Rate from the date such sums are paid by Landlord until repaid, shall be
reimbursed by Tenant to Landlord, on demand. 
  
 13. HOLDING OVER

  
 Any holding over by Tenant after the expiration or sooner
termination of this Lease shall be treated as a daily tenancy at sufferance at a rate equal to two times the Rent and other charges herein provided (prorated on a daily basis), provided however if such holding over is subsequent to the expiration of
the Term and precedes the closing of the Tenant’s buyback option pursuant to the Buyback Option Agreement, then Rent shall be paid at a rate as if there had been no expiration or termination of the Lease. Tenant shall also pay to Landlord all
damages (direct or indirect) sustained by reason of any such holding over. Nothing contained herein shall constitute 
  

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 the consent, express or implied, of Landlord to the holding over of Tenant after the expiration or earlier termination of
this Lease and Tenant hereby waives any right to claim the existence of a Lease by sufferance under any applicable law. 
  
 14. TRANSFERS BY LANDLORD OR SECURED PARTY 
  
 Landlord or Secured Party (including, in all cases a Subsequent Owner) shall have the unrestricted right to convey, transfer, assign or encumber the
Premises, the Leased Property, the Ground Lease, and its interest in this Lease, in whole to a Secured Party or to any other grantee or transferee, subject to the provisions of this Lease provided only that such grantee or transferee agrees to
assume all obligations of the Landlord hereunder. If Landlord or Secured Party transfers in accordance with the terms hereof to a grantee or transferee that expressly assumes in writing all obligations of Landlord hereunder or Secured Party under
its Secured Loan Documents arising or accruing from and after the date of such transfer, Landlord or Secured Party shall thereupon be released from all future liabilities and obligations of Landlord or Secured Party under this Lease or its Secured
Loan Documents arising or accruing from and after the date of such conveyance or other transfer and all such future liabilities and obligations shall thereupon be binding upon the new owner or secured party. 
  
 15. SUBLETTING AND ASSIGNMENT 
  
 15.1. Restriction on Mortgaging, Subletting and Assignment.

  
 A. Except as set forth in this Section 15.1A, Tenant
shall not, without Landlord’s prior written consent (which may be given or withheld by Landlord in its Sole Discretion) and the consent of Landlord’s Secured Party if required by any of the Secured Loan Documents, assign, mortgage, pledge,
hypothecate, encumber or otherwise transfer this Lease or any part of the Premises and/or the Leased Property or any part hereof or any right, title or interest herein or sublease (which term shall be deemed to include the granting of concessions,
licenses, permits 
  

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 and the like) all or any part of the Premises or the Leased Property, or suffer or permit this Lease or the sub-lease
rights created hereby or any other rights arising under this Lease to be assigned, transferred, mortgaged, pledged, hypothecated or encumbered, in whole or in part, whether voluntarily, involuntarily or by operation of law, or permit the use or
operation of the Premises or the Leased Property by anyone other than Tenant and its customers in the ordinary course of business but subject to the provisions of Section 4.1. For purposes of this Section 15.1, a Transfer of this Lease
requiring Landlord’s consent shall be deemed to include the following: any direct or indirect transfer of any interest in Tenant, or any transaction pursuant to which Tenant is merged or consolidated with another Entity or pursuant to which all
or substantially all of Tenant’s assets are transferred to any other Entity, but shall not include any involuntary Liens or attachments contested by Tenant in good faith in accordance with Article 8 or any merger or consolidation with another
Entity pursuant to which there is no change of Control. Each of the foregoing is considered a “Transfer” and all of the foregoing is collectively, the “Transfers”, a recipient of a Transfer is a
“Transferee”. 
  
 B. If this Lease or the
Premises, the Leased Property or any part thereof is sublet Transferred by Tenant, Landlord or its Secured Party may collect the rents from such assignee, subtenant or occupant, as the case may be, and apply the net amount collected to the Rent
herein reserved, but no such collection shall be deemed a waiver of the provisions set forth in Section 15.1(A), the acceptance by Landlord of such assignee, subtenant or occupant, as the case may be, as a tenant, or a release of Tenant from
the future performance by Tenant of its covenants, agreements or obligations contained in this Lease. In addition, Tenant hereby grants to Landlord a first ranking security interest in all rents and revenues from any assignee, subtenant, occupant or
other Transferee from time to time to secure the payment of Rent and the performance of all obligations to be paid and performed by Tenant to or for the benefit of Landlord under this Lease and any amendments hereto from time to time. 
  

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 C. If Tenant Transfers with Landlord’s consent in accordance with the terms hereof to a grantee or
transferee whose creditworthiness is expressly approved in writing by Landlord, and who expressly assumes in writing all obligations of Tenant hereunder arising or accruing from and after the date of such Transfer, Tenant shall thereupon be released
by Landlord from all future liabilities and obligations of the Tenant under this Lease arising or accruing from and after the date of such conveyance or other transfer and all such future liabilities and obligations shall thereupon be binding upon
the new tenant, its successors and assigns. No consent to any Transfer in a particular instance shall be deemed to be a waiver of the prohibition set forth in this Section 15.1 as it applies to the new tenant. No Transfer shall affect any
Permitted Use, nor contravene or result in a default under or non-compliance with any provision of the Ground Lease. Any Transfer of Tenant’s interest under this Lease in contravention of this Section 15.1 shall be void. 
  
 D. Any Transfer by or on behalf of Tenant of all or any portion of the
Premises, the Leased Property or the Lease (said Transfers being collectively, the “Future Transfers” or individually a “Future Transfer”) shall provide (a) that it is subject and subordinate to this Lease and
to the matters to which this Lease is or shall be subject to subordinate; (b) that in the event of termination of this Lease or re-entry or dispossession of Tenant by Landlord under this Lease, Landlord may take over all of the right, title and
interest of Tenant, and, except as provided below, such Future Transferee shall, at Landlord’s option, attorn to Landlord and/or any Secured Party (including, in each case, a Subsequent Owner) pursuant to the then executory provisions of such
Transfer and become a direct tenant of Landlord and/or any Secured Party, 
  

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 except that neither Landlord nor any Secured Party, as holder of a Security Loan Document or as landlord under this
Lease, if such Secured Party succeeds to that position, shall (i) be liable for any act or omission of Tenant under such Transfer, (ii) be subject to any credit, counterclaim, offset or defense which theretofore accrued to such Transferee
against Tenant, (iii) be bound by any previous prepayment of more than one (i) month’s rents, (iv) be bound by any covenant of Tenant to undertake or complete any construction of the Leased Property or any portion thereof,
(v) be required to account for any security deposit of the Transferee other than any security deposit actually delivered to Landlord by Tenant, (vi) be bound by any obligation to make any payment to such Transferee or grant any credits,
except for services, repairs, maintenance and restoration provided for under the sublease that are performed after the date of such attornment, (vii) be responsible for any monies owing by Tenant to the credit of such Transferee, or
(viii) be required to remove any Person occupying any portion of the Leased Property; and (c) in the rent that such Transferee receives a written Notice from Landlord or any Secured Party stating that an Event of Default has occurred and
is continuing, such subtenant shall thereafter be obligated to pay all rentals and other monies accruing under such Transfer directly to the party giving such Notice or as such party may direct. All rentals and other monies received from such
Transferee by Landlord or the Secured Party, as the case may be, shall be credited against the amounts owing by tenant under this Lease and such Transfer shall provided that the Transferee thereunder shall, at the request of Landlord, execute a
suitable instrument in confirmation of such agreement to attorn. An original counterpart of each such Transfer duly executed by Tenant and such Transferee shall be delivered promptly to Landlord, Tenant shall remain liable for the payment, from and
after the date of such assignment, and shall not be released from any obligations of the Tenant hereunder except in the circumstance of a release under Section 15.1C above. 
  

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 15.2. Transfer Limitation. For so long as Landlord or any Affiliate of Landlord, shall seek
to qualify as a real estate investment trust, anything contained in this Lease to the contrary notwithstanding, Tenant shall not sublease or otherwise Transfer the Premises or Improvements on any basis such that Landlord determines that the rental
to be paid by any Transferee thereunder would be based, in whole or in part, on either (a) the net income or profits derived by the business activities of such Transferee, or (b) any other formula such that any portion of such sublease
rental would fail to qualify as “rents from real property” within the meaning of Section 856(d) of the Code or any similar or successor provision thereto. 
  
 16. TENANT CERTIFICATES AND FINANCIAL STATEMENTS 
  
 16.1. Tenant Certificates. At any time and from time to time, upon not less than ten (10) Business Days
prior Notice by either party, the party receiving such Notice shall furnish to the other a certificate certifying that this Lease is unmodified and in full force and effect (or that this Lease is in full force and effect as modified and setting
forth the modifications), the date to which the Rent has been paid, that to its knowledge no Default or an Event of Default by the other party has occurred and is continuing or, if a Default or an Event of Default shall exist, specifying in
reasonable detail the nature thereof, and the steps being taken to remedy the same, and such additional information as the requesting party may reasonably request. If such additional information reasonably requires more than ten (10) Business
Days to provide, the party furnishing such information shall be entitled to such additional period to respond to such request as may be reasonably required under the circumstances. Any such certificate furnished pursuant to this Section 16.1
may be relied upon by the requesting party, its lenders and any prospective purchaser or Secured Party of the Premises, the Leased Property or the permitted rights hereby created. 
  

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 16.2. Accounting. 
  
 A. Within twenty (20) days after the close of each Accounting Period, Tenant shall deliver to Landlord an interim
profit and loss statement for the preceding Accounting Period, certified by the Tenant’s chief financial officer to be true and correct. 
  
 B. Calculations and payments made with respect to each Accounting Period within a Fiscal Year shall be accounted for cumulatively. Within sixty
(60) days after the end of each Fiscal Year, Tenant shall deliver to Landlord audited Financial Statements in reasonable detail summarizing the operations of the Premises for the immediately preceding Fiscal Year and a certificate of
Tenant’s chief accounting officer, or equivalent, certifying that, to the best of his or her knowledge, such Financial Statement is true and correct. The parties shall, within ten (10) Business Days after Landlord’s receipt of such
Financial Statements, make any adjustments, by cash payment, in the amounts paid or retained for such Fiscal Year as are needed because of the final figures set forth in such Financial Statements. Such Financial Statements shall be controlling over
the preceding Accounting Period profit and loss statements. 
  
 16.3. Books and Records. Books of control and account pertaining to operations at the Premises shall be kept on the accrual basis and in all material respects in accordance with GAAP consistently applied. Upon Landlord’s
reasonable request and at reasonable intervals during normal business hours Landlord shall have the right to examine such records at the Premises. If Landlord desires to audit or examine the Financial Statements, Landlord shall notify Tenant in
writing within sixty (60) days after receipt of such Financial Statements of its desire for the audit, and shall complete such audit within ninety (90) days after commencement thereof. Landlord may provide copies of any financial
statements, books or records to any Secured Party or any other person directly or indirectly providing financing to Landlord. 
  

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 16.4. Annual Business Plan. Not later than sixty (60) days prior to each Fiscal Year,
Tenant shall deliver to Landlord an annual “business plan” for the succeeding Fiscal Year for Landlord’s review and comments. Tenant shall review in good faith Landlord’s comments prior to finalizing its business plan. The
business plan shall include projections of income and expenses on a monthly basis for the succeeding fiscal year in detailed line item breakdown, together with a marketing plan describing in detail the Tenant’s plan for marketing the
Tenant’s operations at the Premises, including a detailed line item marketing budget. 
  
 16.5. Update Meetings. Tenant agrees that Tenant will meet with Landlord upon Landlord’s request to review such aspects of the Leased Property and Tenant’s operations thereon as Landlord may
reasonably request. Such meetings shall occur no more frequently than quarterly without Tenant’s consent. 
  
 16.6. Sarbanes-Oxley. In connection with Landlord’s responsibility to maintain effective internal controls over financial reporting and
the requirements for complying with the Sarbanes Oxley Act of 2002, Tenant hereby agrees to provide access and reasonable assistance necessary to Landlord that will allow Landlord to conduct activities necessary to satisfy its responsibilities, as
previously outlined, including but not limited to the activities stipulated by the Public Company Accounting Oversight Board in its release 2004-1, or other similarly promulgated guidance by other regulatory agencies. Tenant hereby agrees to
provide, at Landlord’s request, a report prepared by an independent registered certified public accountant pursuant to the AICPA’s statement on auditing standards No. 70 “Reports on the Processing of Transactions by Service
Organizations” (“SAS No. 70”) utilizing a “Type II approach,” as defined in that SAS No. 70. Other than the provision of the report pursuant to SAS No. 70, Tenant shall be reimbursed its reasonable expenses
incurred for all such services and assistance requested by Landlord. Landlord agrees to provide Tenant with appropriate notice regarding the conduct of the activities anticipated in this provision. 
  

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 17. LANDLORD’S RIGHT TO INSPECT 
  
 Tenant shall permit Landlord and any Secured Party or any other Person directly or indirectly providing financing to
Landlord and their authorized representatives to inspect the Premises at reasonable times of the day upon not less than twenty-four (24) hours’ Notice, and to make such repairs as Landlord is permitted or required to make pursuant to the
terms of this Lease, provided that any inspection or repair by Landlord or Secured Party or other Person or its representatives will not unreasonably interfere with Tenant’s use and operation of the Premises and further provided that in the
event of an emergency, as determined by Landlord or Secured Party or other Person in its reasonable discretion, prior Notice shall not be necessary. 
  
 18. TENANT’S BUYBACK OPTION 
  
 Landlord and Tenant, together with, inter alia, CNL TRS, are parties to the Buyback Option Agreement pursuant to which Landlord has granted to
Tenant the option to buy back the Leased Property and all of the rights and obligations of Landlord under and pursuant to the Ground Lease, from Landlord, and other assets purchased pursuant to the Asset Purchase Agreement, subject to and on the
terms and conditions set forth in that certain Buyback Option Agreement. 
  
 19. MISCELLANEOUS 
  
 19.1.
Limitation on Payment of Rent. All agreements between Landlord and Tenant herein are hereby expressly limited so that in no contingency or event whatsoever, whether by reason of acceleration of Rent, or otherwise, shall the Rent or any
other amounts payable to Landlord under this Lease exceed the maximum permissible under Applicable Laws, and if, from any circumstance whatsoever, fulfillment of any provision of this Lease, at the time performance 
  

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 of such provision shall be due, shall involve transcending the limit of validity prescribed by law, or if from any
circumstances Landlord should ever receive as fulfillment of such provision such an excessive amount, then, ipso facto, the amount which would be excessive shall be applied to the reduction of any installment of Minimum Rent next due and not to the
payment of such excessive amount. This provision shall control every other provision of this Lease and any other agreements between Landlord and Tenant. 
  
 19.2. No Waiver. No failure by Landlord or Tenant to insist upon the strict performance of any term hereof or to exercise any right, power
or remedy consequent upon a breach thereof, and no acceptance of full or partial payment of Rent during the continuance of any such breach, shall constitute a waiver of any such breach or of any such term. To the maximum extent permitted by law, no
waiver of any breach shall affect or alter this Lease, which shall continue in full force and effect with respect to any other then existing or subsequent breach. 
  
 19.3. Remedies Cumulative. To the maximum extent permitted by law, and except as specifically waived herein,
each legal, equitable or contractual right, power and remedy of Landlord, now or hereafter provided either in this Lease or by statute or otherwise, shall be cumulative and concurrent and shall be in addition to every other right, power and remedy
and the exercise or beginning of the exercise by Landlord (as applicable) of any one or more of such rights, powers and remedies shall not preclude the simultaneous or subsequent exercise by Landlord or Tenant of any or all of such other rights,
powers and remedies. 
  
 19.4. Severability. Any
clause, sentence, paragraph, section or provision of this Lease held by a court of competent jurisdiction to be invalid, illegal or ineffective shall not impair, invalidate or nullify the remainder of this Lease, but rather the effect thereof shall
be confined to 
  

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 the clause, sentence, paragraph, section or provision so held to be invalid, illegal or ineffective, and this Lease shall
be construed as if such invalid, illegal or ineffective provisions had never been contained therein. 
  
 19.5. Acceptance of Surrender. No surrender to Landlord of this Lease or of the Premises or any part thereof or of any interest therein,
shall be valid or effective unless agreed to and accepted in writing by Landlord and no act by Landlord or any representative or agent of Landlord, other than such a written acceptance by Landlord, shall constitute an acceptance of any such
surrender. 
  
 19.6. No Merger of Title. It is
expressly acknowledged and agreed that it is the intent of the parties that there shall be no merger of this Lease or of the interest created hereby by reason of the fact that the same Person may acquire, own or hold, directly or indirectly the
Tenant’s interest under this Lease or the rights created hereby, and the Landlord’s rights under the Ground Lease. 
  
 19.7. Quiet Enjoyment. Provided that no Event of Default shall have occurred and be continuing, Tenant shall peaceably and quietly have,
hold and enjoy the Premises and Leased Property for the Term, free of hindrance or molestation by Landlord or anyone claiming by, through or under Landlord, but subject to (a) the terms and conditions of the Ground Lease, and (b) any
Encumbrance permitted to be created by Landlord hereunder, (c) all Permitted Encumbrances, (d) Liens as to obligations of Landlord that are either not yet due or which are being contested in good faith and by proper proceedings, provided
the same do not materially interfere with Tenant’s ability to operate the Premises, and (e) Liens that have been consented to in writing by Tenant. Except as otherwise provided in this Lease, no failure by Landlord to comply with the
foregoing covenant shall give Tenant the right to cancel or terminate this Lease or abate, reduce or make a deduction from or offset against the Rent or any other sum payable under this Lease, or to fail to perform any other obligation of Tenant
hereunder. 
  

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 19.8. Dispute Resolution. The Landlord and Tenant covenant and agree with each other as
follows: 
  
 (a) if there is a dispute or
disagreement between the parties in respect of any of the provisions of this Lease (other than payment of Rent or a Tenant default that in Landlord’s reasonable judgment requires specific performance or injunctive relief, or immediate
dispossession in order to protect the value of Landlord’s reversionary interest in the Leased Property), which remains unresolved for a period of 30 days, each party will designate a senior manager or officer to review and make reasonable
efforts to develop a workable resolution to the dispute or disagreement. The communications in any such attempts to settle shall be privileged in any subsequent proceedings or action, and the failure to arrive at a resolution shall give rise to no
claim by either party, whether or not a party arguably failed to make a reasonable effort. 
  
 (b) Either party to a dispute or disagreement may at any time refer the dispute or disagreement, including a dispute or disagreement which
is under an internal review under Section 19.8(b) for determination by arbitration in accordance with the following: 
  
 A. The arbitration will be conducted by a sole arbitrator agreed by the parties to the dispute unless the parties fail to agree on such
sole arbitrator within ten (10) Business Days of the giving of the notice of arbitration or the parties agree that the arbitration should be conducted by a panel of three (3) arbitrators; 
  
 B. if the parties fail to agree on a sole arbitrator
pursuant to the above, or agree to have a panel of three (3) arbitrators conduct the arbitration: 
  
 (c) each party will promptly select an arbitrator and the two (2) arbitrators will then promptly select a third arbitrator;

  

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 (d) if either party fails to select an arbitrator within seven (7) Business Days of
the notice of arbitration the arbitrator selected by the other party will act as the sole arbitrator; 
  
 (e) if the arbitrator selected by the parties fails to select a third arbitrator within ten (10) Business Days of the later of their
appointments, either party may apply to the Circuit Court of Tennessee for the appointment of a third arbitrator; 
  
 A. the decision of a majority of the arbitrators or the sole arbitrator, as the case may be, including any decision as to costs, will be
final and binding upon the parties but will not be a precedent in any subsequent arbitration under this Lease; and 
  
 B. except as expressly provided herein, all arbitrations will be conducted according to the laws governing commercial arbitrations in
Tennessee. 
  
 (f) Any dispute referred to
arbitration will be dealt with on an expeditious basis with both parties using all commercially reasonable efforts to obtain and implement a timely decision of the arbitrator or arbitrators. 
  
 19.9. No Recordation. Neither Landlord nor Tenant shall record
this Lease or a notice thereof unless required by a Secured Party. 
  
 19.10. Notices. 
  
 A. Any and all
notices, demands, consents, approvals, offers, elections and other communications required or permitted under this Lease shall be deemed adequately given if in writing and the same shall be delivered either in hand, or by mail or Federal Express or
similar expedited commercial carrier, addressed to the recipient of the notice, post-paid and registered or certified with return receipt requested (if by mail), or with all freight charges prepaid (if by Federal Express or similar carrier).

  

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 B. All notices required or permitted to be sent hereunder shall be deemed to have been given for all
purposes of this Lease upon the date of receipt or refusal, except that whenever under this Lease a notice is either received on a day which is not a Business Day or is required to be delivered on or before a specific day which is not a Business
Day, the day of receipt or required delivery shall automatically be extended to the next Business Day. 
  
 C. All such notices shall be addressed, 
  

			
	If to the Landlord:	  	 CNL Gatlinburg Partnership LP
 c/o CNL Income Properties,
Inc.
 450 S. Orange Avenue
 Orlando, Florida 32801
 Attention: Tammie A. Quinlan, Executive Vice President and Chief Financial Officer
 Attn: Amy Sinelli, Vice President and Corporate Counsel
 Fax: 407-540-2544
 Telephone: 407-650-1000

		
	With a copy to:	  	 Lowndes, Drosdick, Doster, Kantor & Reed, P.A.
 215
N. Eola Drive
 Orlando, Florida 32801
 Attn: Michael Ryan,
Esq.
 Fax: (407) 843-4444
 Telephone: (407)
843-4600

		
	If to Tenant and/or Indemnifier to:	  	 Gatlinburg Skylift, LLC
 c/o Boyne USA, Inc.

1 Boyne Mountain Road
 PO Box 19
 Boyne Falls, Michigan 49713
 Attn: Roland Andreasson, CFO
 Fax: (231) 549-6094
 Telephone: (231) 675-7241

		
	and with a copy to:	  	 Lawson Lundell LLP
 1600-925 West Georgia
Street
 Vancouver, BC V6C 3L2
 Attn: Valerie C. Mann,
Esq.
 Fax: (604) 669-1620
 Telephone:
(604)-685-3456

  

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 D. By notice given as herein provided, the parties hereto and their respective successors and assigns
shall have the right from time to time and at any time during the term of this Lease to change their respective addresses effective upon receipt by the other parties of such notice and each shall have the right to specify as its address any other
address within Canada or the United States of America. 
  
 19.11. Construction. Anything contained in this Lease to the contrary notwithstanding, all claims against, and liabilities of, Tenant or Landlord arising prior to any date of termination or expiration of this Lease with
respect to the Premises or Leased Property shall survive such termination or expiration. Neither this Lease nor any provision hereof may be changed, waived, discharged or terminated except by an instrument in writing signed by all the parties
thereto. All the terms and provisions of this Lease shall be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and assigns. Each term or provision of this Lease to be performed by Tenant shall be
construed as an independent covenant and condition. Time is of the essence with respect to the exercise of any rights of Tenant or Landlord under this Lease. Except as otherwise set forth in this Lease, any obligations arising prior to the
expiration or sooner termination of this Lease (including without limitation, any monetary, repair and indemnification obligations) shall survive the expiration or sooner termination of this Lease; provided, however, that each party shall be
required to give the other Notice of any such surviving and unsatisfied obligations within one year after the expiration or sooner termination of this Lease. 
  

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 19.12. Limited Recourse. Anything contained in this Lease to the contrary notwithstanding,
Tenant agrees and acknowledges that no party owning any stock of any corporation that is an affiliate of the Landlord (a “CIP Stockholder”) shall be personally liable, as a result of being a CIP Stockholder, for obligations of any
kind, including, but not limited to, any debts, claims, liabilities, demands, or judgments, which arise, directly or indirectly, as a result of, or in connection with this Lease. This provision shall survive the Closing or termination of this Lease.

  
 Anything contained in this Lease to the contrary
notwithstanding, Landlord agrees and acknowledges that, except for the Guarantor pursuant to the Guaranty for the term thereof only, no party owning any stock or other security interest (including a limited partnership unit or ownership interest) of
any corporation or partnership that is an Affiliate of the Tenant (a “CBRLP Stockholder”) shall be personally liable, as a result of being a CBRLP Stockholder, for obligations of any kind, including, but not limited to, any debts,
claims, liabilities, demands, or judgments, which arise, directly or indirectly, as a result of, or in connection with this Lease. This provision shall survive the Closing or termination of this Lease. 
  
 19.13. Counterparts; Headings. This Lease may be executed in
two or more counterparts, each of which shall constitute an original, but which, when taken together, shall constitute but one instrument and shall become effective as of the date hereof when copies hereof, which, when taken together, bear the
signatures of each of the parties hereto shall have been signed. Headings in this Lease are for purposes of reference only and shall not limit or affect the meaning of the provisions hereof 
  
 19.14. Guaranty of Tenant’s Performance. With respect to a
period of four (4) calendar years from the Commencement Date, the Guarantor shall be jointly and severally liable for the Tenant’s covenant and obligation in respect of the payment to Landlord of the Minimum Rent provided for herein as
provided for, and subject to the terms of, the Guaranty. 
  

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 19.15. Applicable Law, Etc. This Lease shall be interpreted, construed, applied and
enforced in accordance with the laws of the State, regardless of (a) where this Lease is executed or delivered; or (b) where any payment or other performance required by this Lease is made or required to be made; or (c) where any
breach of any provision of this Lease occurs, or any cause of action otherwise accrues; or (d) where any action or other proceeding is instituted or pending; or (e) the nationality, citizenship, domicile, principal place of business, or
jurisdiction of organization or domestication of any party; or (f) whether the laws of the forum jurisdiction otherwise would apply the laws of a jurisdiction other than the State; or (g) any combination of the foregoing. To the maximum
extent permitted by Applicable Law, any action to enforce, arising out of, or relating in any way to, any of the provisions of this Lease, but subject to the provisions of section 19.8 which shall take precedence, may be brought and prosecuted in
such court or courts located in the State; and the parties consent to the jurisdiction of said court or courts located in the State and to service of process by registered mail, return receipt requested, or by any other manner provided by law.

  
 19.16. Right to Make Agreement. Each party
warrants, with respect to itself, that neither the execution of this Lease, nor the consummation of any transaction contemplated hereby, shall violate any provision of any law, or any judgment, writ, injunction, order or decree of any court or
governmental authority having jurisdiction over it; nor result in or constitute a breach or default under any indenture, contract, other commitment or restriction to which it is a party or by which it is bound; nor require any consent, vote or
approval which has not been given or taken, or at the time of the transaction involved shall not have been given or taken. Each party covenants that it has and will continue to have throughout the Term and any renewal and/or extension thereof the
full right to enter into this Lease and perform its obligations hereunder. 
  

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 19.17. Entire Agreement. This Lease and any other written agreement between the parties
hereto with respect to the subject matter hereof constitute the entire agreement between the Landlord and Tenant with respect to the subject matter hereof and there are no other representations, warranties, collateral warranties, agreements,
collateral agreements, statements or assurances of any kind or nature whatsoever upon which any party is entitled to rely. This Lease may not be amended, modified or varied by a written agreement signed by all parties hereto. The terms of this Lease
shall control in the event of any conflict with, and in the interpretation of, all provisions of the Asset Purchase Agreement or any term sheet or letter of intent related thereto. 
  
 19.18. Time. Time shall be of the essence of this Lease and in each and every part hereof. 
  
 [SIGNATURES ON FOLLOWING PAGE] 
  

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 IN WITNESS WHEREOF, the parties have executed this Lease as a sealed instrument as of the date above
first written. 
  

					
	TENANT:
	
	 GATLINBURG SKYLIFT LLC,
 a Michigan
limited liability company

		
	By:	 	 /s/ Stephen M. Kircher

	Name:	 	Stephen M. Kircher
	Title:	 	President
	
	LANDLORD:
	
	 CNL GATLINBURG PARTNERSHIP, LP,
 a
Delaware limited partnership

		
	By:	 	 CNL Gatlinburg GP Corp.,
 a Delaware
corporation,
 its General Partner

			
	 	 	By:	 	 /s/ Tammie A. Quinlan

	 	 	Name:	 	Tammie A. Quinlan
	 	 	Title:	 	Executive Vice President
	
	GUARANTOR [solely for Purposes of Section 19.17]:
	
	 BOYNE USA, INC.,
 a Michigan
corporation

		
	By:	 	 /s/ Stephen M. Kircher

	Name:	 	Stephen M. Kircher
	Title:	 	President of Eastern Operations

  

 - 87 - 

 SCHEDULE 1.1A 
  
 Buyback Option Agreement 
  

 - 88 - 

 EXHIBIT A 
  
 Personal Property Schedule 
  
 All that tangible personal property listed in that certain “Depreciation Expense Report as of December 31, 2004 by Boyne USA,
Inc.”, a copy of which is attached hereto for reference, together with the following: 
  

					
	No.

	  	Qty.

	  	 Description

	1	  	SCENIC SKYLIFT, 1,382 ft horizontal length, 1,516 ft slope length, 487 ft vertical rise, 840 passengers per hour, 200 ft/minute
maximum speed, 17,500 lbs maximum
upper terminal capacity under full load conditions, consisting of the following:
			
	2	  	100	  	Chairs, two passenger, 2 pass bail with armbar, welded steel construction, plastic foam covered, fastened to traction rope via Riblet insert-type clips, chair spacing is 28.5 ft, chair
interval is 8.6 seconds,
			
	3	  	13	  	Towers, 18” monocoque steel tube construction, 15 pylon type, ranging in height from 13’-15’, with reinforced concrete foundations, each tower configured with elastomer tired
sheaves which support the traction rope, and related accessories
			
	4	  	3,032	  	lf of wire rope, 1-1/8” cable diameter, 6x25 IPS
			
	5	  	 	  	 
			
	6	  	 	  	Drive Machinery
			
	7	  	1	  	Sabina D.C.S.C.R. regenerative drive, 60 hp, belt driven (lower terminal)
			
	8	  	1	  	Flexible coupling between drive and gear box (lower terminal)
			
	9	  	1	  	Western gear box, m/n 9920, totally enclosed, with service pit (lower terminal)
			
	10	  	1	  	30 hp backup drive, gas powered, belt driven (lower terminal), with torque converter (lower terminal)
			
	11	  	1	  	Vertical rotating mainshaft and bullwheel (lower terminal)
			
	12	  	2	  	Backstops (lower terminal)
			
	13	  	1	  	Automatic brake (drive sheave) (lower terminal)
			
	14	  	1	  	Electrical control system, consisting of primary service facilities, secondary disconnects, chair speed controls, switches, relays, circuits, diodes, pushbuttons, and related
accessories
			
	15	  	 	  	 
			
	16	  	 	  	Return Machinery
			
	17	  	1	  	35,000 lbs. counterweight with 8- 3/4” rope (upper
terminal)
			
	18	  	 	  	 
			
	19	  	 	  	Idler Terminal
			
	20	  	1	  	Tubular steel construction supporting idle sheave, chair guides, and guide sheaves. The return sheave is mounted with bearings and seals in the hub and rotates on a shaft fixed to the
terminal structure.

  

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	21	  	 	  	 
			
	22	  	 	  	Loading Terminal
			
	23	  	1	  	36’ x 75’ loading terminal building, wood construction, shake roof
			
	24	  	 	  	 
			
	25	  	 	  	Unloading Terminal
			
	26	  	1	  	Unloading terminal building, wood construction

  

 - 90 -

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