Document:

EX-10.1

EXHIBIT 10.1

VENTURE FORMATION AND CONTRIBUTION AGREEMENT

By and Between

CNL INCOME PARTNERS, LP,

a Delaware limited partnership,

- and -

GREAT BEAR LODGE OF WISCONSIN DELLS, LLC,

a Delaware limited liability company

- and –

GREAT BEAR LODGE OF SANDUSKY, LLC,

a Delaware limited liability company

- and –

GREAT WOLF RESORTS, INC.,

a Delaware corporation

October 3, 2005

1

TABLE OF CONTENTS

	 	1.	 	Recitals.

	 	2.	 	Definitions.

	 	3.	 	Contribution to the Partnership.

	 	4.	 	Contribution Value of the Property.

	 	5.	 	Conditions Precedent.

	 	6.	 	Requirements Upon Satisfaction of Closing Conditions.

	 	7.	 	CNL Due Diligence with Respect to Contributed Hotels.

	 	8.	 	Representations and Warranties.

	 	9.	 	Covenants of Wolf.

	 	10.	 	Closing.

	 	11.	 	Prorations and Expenses.

	 	12.	 	Default; Remedies.

	 	13.	 	Dells Hotel Development.

	 	14.	 	Liquor Licenses.

	 	15.	 	Condemnation/Casualty.

	 	16.	 	Assignability.

	 	17.	 	Brokers.

	 	18.	 	Miscellaneous.

2

SCHEDULE OF EXHIBITS

	 	 	 
	Exhibit “A-1”

	 	Dells Land
	 

	 	

	Exhibit “A-2”

	 	Sandusky Land
	 

	 	

	Exhibit “B”

	 	Partnership Agreement
	 

	 	

	Exhibit “C”

	 	Assignment and Assumption of Condominium Documents
	 

	 	

	 	 	 	Exhibit “D” Assignment and Assumption of Declaration of Easements and Covenant to
Share Costs for Great Wolf Lodge

	 	 	 	Exhibit “E” Assignment and Assumption of Great Wolf Lodge Condominium Management
Agreement

	 	 	 
	Exhibit “F”

	 	Assignment and Assumption of Intangible Property
	 

	 	

	Exhibit “G”

	 	Assignment and Assumption of Operating Agreements
	 

	 	

	Exhibit “H”

	 	Assignment and Assumption of Rental Management Agreements
	 

	 	

	Exhibit “I”

	 	Assignment of Partnership Interests – Joint Venture Entity
	 

	 	

	Exhibit “J”

	 	Assignment of Partnership Interests – Tenants
	 

	 	

	Exhibit “K”

	 	Bills of Sale
	 

	 	

	Exhibit “L”

	 	Closing Certificate
	 

	 	

	Exhibit “M”

	 	Development Agreement
	 

	 	

	Exhibit “N”

	 	Interim Beverage Facilities Management Agreement
	 

	 	

	Exhibit “O”

	 	Intentionally Omitted
	 

	 	

	Exhibit “P”

	 	Intentionally Omitted
	 

	 	

	Exhibit “Q”

	 	Intentionally Omitted
	 

	 	

	Exhibit “R”

	 	Operating Agreements
	 

	 	

	Exhibit “S”

	 	Exclusions from Personal Property
	 

	 	

	Exhibit “T”

	 	Rental Management Agreements
	 

	 	

	Exhibit “U”

	 	Condominium Project Land
	 

	 	

	Exhibit “V”

	 	Tall Pines Enforcement Agreement
	 

	 	

	Exhibit “W”

	 	Schedule of Unresolved Due Diligence Items
	 

	 	

	Exhibit “X”

	 	Dells Construction Documents
	 

	 	

	Exhibit “Y”

	 	Tall Pines Agreement
	 

	 	

3

VENTURE FORMATION AND CONTRIBUTION AGREEMENT

THIS VENTURE FORMATION AND CONTRIBUTION AGREEMENT (this “Agreement”) is made and
entered into as of the 3rd day of October, 2005 (the “Effective Date”), by and
among CNL INCOME PARTNERS, LP, a Delaware limited partnership (“CNL”), GREAT BEAR LODGE OF
WISCONSIN DELLS, LLC, a Delaware limited liability company (“Wolf Dells”), GREAT BEAR LODGE
OF SANDUSKY, LLC, a Delaware limited liability company (“Wolf Sandusky”), and GREAT WOLF
RESORTS, INC., a Delaware corporation (“Wolf Parent”)(Wolf Dells, Wolf Sandusky and Wolf
Parent are at times hereinafter referred to collectively as “Wolf”).

R E C I T A L S:

A. Wolf Dells is the fee simple owner of that certain real property more particularly
described on Exhibit “A-1" attached hereto (together with all easements, rights of way,
gores of land, streets, ways, alleys, passages, sewer rights, waters, water courses, water rights
and powers, and all estates, rights, titles, interests, privileges, liberties, tenements,
hereditaments and appurtenances whatsoever, in any way belonging, relating or appertaining to any
of the said real property, the “Dells Land”) and all fixtures, buildings, structures,
parking areas, and other improvements presently located upon the Dells Land, including, without
limitation, a three hundred nine (309) room hotel, an approximately thirty-eight thousand (38,000)
square foot indoor water-park component, an approximately ten thousand (10,000) square foot outdoor
water-park component, a Wiley’s Woods component, an arcade and all restaurant, bar, gift shop,
casual dining and spa facilities located thereon (the “Dells Improvements”), located in
Sauk County, Wisconsin, and commonly referred to as the “Great Wolf Lodge-Wisconsin Dells.” The
Dells Land and the Dells Improvements are sometimes collectively referred to herein as the
“Dells Hotel.” Wolf Dells is also the fee simple owner of the Commercial Condominium Unit
(as herein defined).

B. Wolf Sandusky is the fee simple owner of that certain real property more particularly
described on Exhibit “A-2" attached hereto (together with all easements, rights of way,
gores of land, streets, ways, alleys, passages, sewer rights, waters, water courses, water rights
and powers, and all estates, rights, titles, interests, privileges, liberties, tenements,
hereditaments and appurtenances whatsoever, in any way belonging, relating or appertaining to any
of the said real property, the “Sandusky Land”) and all fixtures, buildings, structures,
parking areas, and other improvements presently located upon the Sandusky Land, including, without
limitation, a two hundred seventy-one (271) room hotel, an approximately thirty-four thousand
(34,000) square foot indoor water-park component and an approximately five thousand (5,000) square
foot outdoor water-park component, an arcade and all restaurant, bar, gift shop and casual dining
facilities located thereon (the “Sandusky Improvements”), located in Erie County, Ohio, and
commonly referred to as the “Great Wolf Lodge-Sandusky.” The Sandusky Land and the Sandusky
Improvements are sometimes collectively referred to herein as the “Sandusky Hotel.” The
Dells Hotel and the Sandusky Hotel are sometimes collectively referred to herein as the
“Contributed Hotels.”

C. CNL and Wolf Parent intend to joint venture for the purposes (the “Business
Purposes”) of jointly owning, operating, marketing and leasing the Contributed Hotels through
the Partnership (as defined herein).

D. In accordance with and conditioned upon the terms and provisions of this Agreement, (i)
Wolf Parent shall cause the formation by certain of its Affiliates of a limited liability limited
partnership known as CNL Income GW Partnership, LLLP, a Delaware limited liability limited
partnership (the “Partnership”), for the Business Purposes, (ii) Wolf Parent shall cause
certain of its Affiliates to execute and enter into a limited liability limited partnership
agreement for the Partnership, (iii) Wolf Parent shall cause the contribution of each of the
Contributed Hotels in fee simple to two (2) separate single-purpose entities which shall be
wholly-owned subsidiaries of the Partnership (individually, an “SPE Owner” or collectively
as the “SPE Owners”), (iv) Wolf Parent shall cause the contribution of the Personal
Property (as defined herein) to the applicable SPE Owners or Tenants (as defined herein), as
applicable; (v) Wolf Parent shall cause the contribution of the Commercial Condominium Unit in fee
simple to the applicable SPE Owner, (vi) Wolf Parent shall sell or cause to be sold to CNL or its
designated affiliates the general partner interest and a portion of the limited partner interest in
the Partnership and the general partner interests in the Tenants; and (vii) CNL and Wolf shall
cause the execution of that certain Amended and Restated Limited Liability Limited Partnership
Agreement of CNL Income GW Partnership, LLLP, in the form attached hereto as Exhibit “B”
(the “Partnership Agreement”).

E. Pursuant to the Partnership Agreement, CNL shall initially own, directly or through its
wholly-owned subsidiary Affiliates, no less than, but at CNL’s election greater than, fifty-one
percent (51%)(but in no event greater than seventy percent (70%)) of the aggregate limited and
general partner interest in the Partnership and Wolf shall initially own, directly or through its
wholly-owned subsidiary Affiliates, no greater than, but at CNL’s election, less than forty-nine
percent (49%)(but in no event less than thirty percent (30%)) of the limited partnership interests
in the Partnership, and CNL shall initially own, directly or through its wholly-owned subsidiary
Affiliates, no less than, but at CNL’s election greater than, fifty-one percent (51%) (but in no
event greater than seventy percent (70%)) of the aggregate limited and general partnership
interests in the Tenants and Wolf shall initially own, directly or through its wholly-owned
subsidiary Affiliates, no greater than, but at CNL’s election, less than forty-nine percent
(49%)(but in no event less than thirty percent (30%)) of the limited partner interests in the
Tenants.

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants and
agreements contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. Recitals. The foregoing recitals are true and correct and are incorporated herein
as if repeated at length.

2. Definitions.

(a) “Affiliate” shall mean any Person owned by, under common control with or
controlled, directly or indirectly, by another Person. For the purposes of this Agreement,
an “Affiliate” shall also mean and include a parent Entity, or the Person which has a
Controlling Interest in (directly or indirectly) another Person. The plural of Affiliate is
“Affiliates”.

(b) “Agreement” shall have the meaning ascribed to it in the first paragraph of
this agreement.

(c) “Assignment and Assumption of Condominium Documents” shall mean an
assignment and assumption of the Condominium Documents in the form attached hereto as
Exhibit “C” and by this reference incorporated herein, pursuant to which Wolf Dells
shall assign and transfer to either or several of the Partnership, the applicable Tenant or
other designee of the Partnership, all of Wolf Dell’s right, title and interest in and to,
and the Partnership, the applicable Tenant or designee, shall be entitled to all of Wolf
Dells’ rights and benefits (including without limitation, all rights as Declarant
thereunder) and assume all of Wolf Dell’s obligations and liabilities with respect to the
Condominium Documents first accruing from and after Closing.

(d) “Assignment and Assumption of Declaration of Easements and Covenant to Share
Costs for Great Wolf Lodge” shall mean an assignment and assumption of the Declaration
of Easements and Covenant to Share Costs for Great Wolf Lodge in the form attached hereto as
Exhibit “D” and by this reference incorporated herein, pursuant to which Wolf Dells
shall assign and transfer to either the Partnership, the applicable SPE Owner or the
applicable Tenant or other designee of the Partnership, all of Wolf Dell’s right, title and
interest in and to, and the Partnership, the SPE Owner or applicable Tenant or designee,
shall be entitled to all of Wolf Dells’ rights and benefits (including without limitation,
all rights as Declarant thereunder) and assume all of Wolf Dell’s obligations and
liabilities first accruing from and after Closing with respect to the Declaration of
Easements and Covenant to Share Costs for Great Wolf Lodge.

(e) “Assignment and Assumption of Great Wolf Lodge Condominium Management
Agreement” shall mean an assignment and assumption of the Great Wolf Lodge Condominium
Management Agreement in the form attached hereto as Exhibit “E” and by this
reference incorporated herein, pursuant to which Wolf Dells shall assign and transfer to
either the Partnership, the applicable SPE Owner or the applicable Tenant or other designee
of the Partnership, all of Wolf Dell’s right, title and interest in and to, and the
Partnership, the SPE Owner or applicable Tenant or designee, shall be entitled to all of
Wolf Dells’ rights and benefits and assume all of Wolf Dell’s obligations and liabilities
first accruing from and after Closing with respect to the Great Wolf Lodge Condominium
Management Agreement.

(f) “Assignment and Assumption of Intangible Property” shall mean an assignment
and assumption of the Intangible Property in the form attached hereto as Exhibit “F”
and by this reference incorporated herein, pursuant to which Wolf shall assign and transfer
to either or several of the Partnership, the applicable SPE Owner, the applicable Tenant
(with respect to, without limitation, Intangible Property which relates to Personal Property
of which the applicable Tenants will be the owner as of Closing) or other designee of the
Partnership, all of Wolf’s right, title and interest in and to, and the Partnership, the
applicable SPE Owner, the applicable Tenant or designee, shall be entitled to all of Wolf’s
rights and benefits and assume all of Wolf’s obligations and liabilities first accruing from
and after Closing with respect to the Intangible Property, to the extent that such
assignments are legally and contractually permitted.

(g) “Assignment and Assumption of Operating Agreements” shall mean an
assignment and assumption of the Operating Agreements in the form attached hereto as
Exhibit “G” and by this reference incorporated herein, pursuant to which Wolf shall
assign and transfer to either or several of the Partnership, the applicable Tenant or other
designee of the Partnership, all of Wolf’s right, title and interest in and to, and the
Partnership, the applicable Tenant or designee, shall be entitled to all of Wolf’s rights
and benefits and assume all of Wolf’s obligations and liabilities with respect to, the
Operating Agreements first accruing from and after Closing.

(h) “Assignment and Assumption of Rental Management Agreements” shall mean the
assignment and assumption of the Rental Management Agreements in the form attached hereto as
Exhibit “H” and by this reference incorporated herein, pursuant to which Wolf shall
assign and transfer to the applicable Tenant, all of Wolf’s right, title and interest in and
to, the Rental Management Agreements, and the applicable Tenant, shall be entitled to all of
Wolf’s rights and benefits and assume all of Wolf’s obligations and liabilities with respect
to the Rental Management Agreements first accruing from and after Closing, to the extent
that such assignments are legally and contractually permitted.

(i) “Assignment of Partnership Interests – Joint Venture Entity” shall mean the
assignment of partnership interests in the form attached hereto as Exhibit “I” and
by this reference incorporated herein, pursuant to which Wolf shall assign and transfer or
cause to be assigned and transferred to the CNL Partner(s) all of Wolf’s or Wolf’s
Affiliates’ right, title and interest in and to general and limited partner interests in the
Partnership in accordance with this Agreement.

(j) “Assignment of Partnership Interests – Tenants” shall mean the assignments
of partnership interests in the form attached hereto as Exhibit “J” and by this
reference incorporated herein, pursuant to which Wolf shall assign and transfer or cause to
be assigned and transferred to an Affiliate the CNL Partner(s) all of Wolf’s or Wolf’s
Affiliates’ right, title and interest in and to general partner interests in the Tenants in
accordance with this Agreement.

(k) “Bankruptcy Code” shall have the meaning ascribed to such term in Section
8(a)(v).

(l) “Bills of Sale” shall mean one or more special warranty bills of sale in
the form attached hereto as Exhibit “K” and by this reference incorporated herein,
pursuant to which Wolf shall transfer and convey to the Partnership, or the applicable
Tenant, the Personal Property.

(m) “Business Day” shall mean any day other than a Saturday, Sunday or any
other day on which banking institutions in the State of Florida or the State of Wisconsin
are authorized by law or executive action to close.

(n) “Business Purpose” shall have the meaning ascribed to it in Recital C of
this Agreement.

(o) “Closing” shall mean the consummation of the transactions contemplated by
this Agreement which shall occur on the Closing Date.

(p) “Closing Certificate” shall mean that certain certificate in the form
attached hereto as Exhibit “L” and by this reference incorporated herein, pursuant
to which CNL or Wolf, as applicable, shall confirm the accuracy of the representations and
warranties set forth herein as of the Closing Date.

(q) “Closing Conditions” shall have the meaning ascribed to it in Section 5 of
this Agreement.

(r) “Closing Date” shall mean the Initial Anticipated Closing Date or, upon the
exercise by CNL of its rights pursuant to Section 10(a) hereof, the Outside Closing Date (as
the same may be extended by Wolf by the exercise of its extension rights hereunder) or such
later or earlier date agreed to by CNL and Wolf.

(s) “Closing Escrow” shall have the meaning ascribed to it in Section 10(b) of
this Agreement.

(t) “Closing Statement” shall have the meaning ascribed to it in Section 11(a)
of this Agreement.

(u) “CNL” shall have the meaning ascribed to it in the first paragraph of this
Agreement.

(v) “CNL’s Closing Conditions” shall have the meaning ascribed to it in Section
5(a) of this Agreement.

(w) “CNL Closing Condition Failure” shall have the meaning ascribed to it in
Section 5(b) of this Agreement.

(x) “CNL Partner(s)” shall have the meaning ascribed to it in Section 6 of this
Agreement.

(y) “Commercial Condominium Unit” shall have the meaning ascribed to it in the
Condominium Documents.

(z) “Condominium Documents” shall mean that certain Declaration of Condominium
for Great Wolf Lodge dated as of December 21, 2004 and recorded on June 14, 2005 as
Document No. 874991 in the public records of Sauk County, Wisconsin (including all exhibits
thereto).

(aa) “Contribution Value” shall mean the value of the Property, or any portion
thereof as the context required, as of the Closing Date as set forth in Section 4 below.

(bb) “Controlling Interest” shall mean (a) as to a corporation, the right to
exercise, directly or indirectly, more than fifty percent (50%) of the voting rights
attributable to the shares of the Entity (through ownership of such shares or by contract),
and (b) as to an Entity not a corporation, the possession directly, or indirectly, of the
power to direct or cause the direction of the management or policies of the Entity.

(cc) “Cure Period” shall have the meaning ascribed to it in Section 7(b) of
this Agreement.

(dd) “Declaration of Easements and Covenant to Share Costs for Great Wolf
Lodge” shall mean that certain Declaration of Easements and Covenant to Share Costs for
Great Wolf Lodge dated December 21, 2004, and recorded on January 5, 2005 as Document No.
856670 in the public records of Sauk County, Wisconsin (including all exhibits thereto).

(ee) “Deeds” shall mean the deed pursuant to which Wolf Dells shall convey to
the applicable SPE Owner all of Wolf Dells’ right, title and interest in and to the Dells
Hotel free of liens and encumbrances except the Permitted Exceptions, the deed pursuant to
which Wolf Sandusky shall convey to the applicable SPE Owner all of Wolf Sandusky’s right,
title and interest in and to the Sandusky Hotel free of liens and encumbrances except the
Permitted Exceptions, and the deed pursuant to which Wolf Dells shall convey to the
applicable SPE Owner all of Wolf Dells’ right, title and interest in and to the Commercial
Unit (as such term is defined in the Condominium Documents) free of liens and encumbrances
except the Permitted Exceptions, Such Deeds shall be by special warranty deeds in the form
as is customary for commercial transactions in Wisconsin and Ohio respectively.

(ff) “Default” shall have the meaning ascribed to it in Section 12 of this
Agreement.

(gg) “Defaulting Party” shall have the meaning ascribed to it in Section 12 of
this Agreement.

(hh) “Dells Attraction Addition” shall have the meaning ascribed to it in
Section 13(a) of this Agreement.

(ii) “Dells Construction Documents” shall mean all of those contracts,
agreements, performance bonds, warranties and other documents relating to the construction
of the Dells Attraction Addition.

(jj) “Dells Hotel” shall have the meaning ascribed to it in Recital A of this
Agreement.

(kk) “Dells Improvements” shall have the meaning ascribed to it in Recital A of
this Agreement.

(ll) “Dells Land” shall have the meaning ascribed to it in Recital A of this
Agreement.

(mm) “Development Agreement” shall mean that certain agreement to be entered
into by and between the applicable SPE Owner and Wolf Dells at Closing pursuant to which
Wolf Dells will manage, and escrow funds for, the completion of the construction of the
Dells Attraction Addition (as defined in Section 13(a) hereof). The Development Agreement
shall be in the form attached hereto as Exhibit “M” attached hereto and by this
reference incorporated herein.

(nn) “Effective Date” shall have the meaning ascribed to it in the first
paragraph of this Agreement.

(oo) “Entity” shall mean any corporation, general or limited partnership,
limited liability company, partnership, stock company or association, joint venture,
company, trust, bank, trust company, land trust, business trust, cooperative, any government
or agency or political subdivision thereof or any other legally existing entity.

(pp) “Environmental Law” shall mean any and all laws of a Governmental
Authority: (i) applicable to the Property or any portion thereof; and, (ii) which relate to
the protection of the environment, resource conservation, air contamination, water and/or
groundwater contamination, soil or sediment contamination, Hazardous Substances, solid or
hazardous wastes or residues, or occupational safety and health (to the extent relating to
Hazardous Substances), as such Environmental Laws may be amended from time to time,
including, without limitation, the Comprehensive Environmental, Response, Compensation and
Liability Act, the Superfund Amendments and Reauthorization Act the Solid Waste Disposal
Act, the Resource Conservation and Recovery Act of 1976, the Hazardous and Solid Waste
Amendments of 1984, the Toxic Substances Control Act, the Federal Clean Air Act, the Federal
Clean Water Act, the Safe Drinking Water Act, the Occupational Safety and Health Act, the
Emergency Planning and Community Right-to-Know Act of 1986, the Federal Insecticide,
Fungicide, and Rodenticide Act, the Atomic Energy Act of 1954, and the Energy Reorganization
Act, the Oil Pollution Act of 1990.

(qq) “Environmental Matters” shall mean the presence of any Hazardous Substance
in the soil, groundwater, surface water, sediment, or air at levels that exceed applicable
standards or criteria and that require Remediation under any applicable Environmental Law.

(rr) “Environmental Defect” shall have the meaning ascribed to it in Section
7(d)(i) of this Agreement.

(ss) “Environmental Notice” shall have the meaning ascribed to it in Section
7(d)(i) of this Agreement.

(tt) “Environmental Reports” shall have the meaning ascribed to it in Section
7(d)(i) of this Agreement.

(uu) “Escrow Agent” shall mean Title Company acting in its capacity as an
escrow agent pursuant to the terms hereof.

(vv) “Existing Title Policies” shall have the meaning ascribed to it in Section
7(b) of this Agreement.

(ww) “Force Majeure Event” shall mean any circumstance caused by any of the
following: strikes; lockouts; acts of God; civil commotion; fire or other casualty; acts of
terrorism; governmental action (including renovation or refusal to grant any required
license or permit where such revocation or refusal is not due to the fault of the party
affected thereby); or other cause or circumstance which is not in the reasonable control of
the party asserting the existence of such cause or circumstance.

(xx) “Governmental Authority” shall mean any federal, state, or local
governmental or quasi-governmental entity or authority, including, without limitation, any
department, commission, board, bureau, agency, court or instrumentality thereof, in each
case having jurisdiction, control, or authority over, or in connection with, the present or
future use or development of any of the Contributed Hotels, or any portion thereof,
including, without limitation, EPA and DEP.

(yy) “Great Wolf Lodge Condominium Management Agreement” shall mean that
certain Great Wolf Lodge Condominium Management Agreement by and between Great Wolf Lodge
Condominium Association, Inc. and Wolf Dells dated as of December 20th, 2004.

(zz) “Hazardous Substance” shall mean materials and substances defined as
“hazardous substances”, “hazardous wastes”, “toxic substances” or “toxic wastes” in (i) the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C.
Sections 9601-9675, as amended by the Superfund Amendments and Reauthorization Act of 1988,
and any further amendments thereto and rules, orders and regulations thereunder; (ii) the
Resource Conservation and Recovery Act of 1976, 42 U.S.C. Sections 6901-6992, as amended by
the Hazardous and Solid Waste Amendments of 1984, and any further amendments thereto and
rules, orders and regulations thereunder; or (iii) any other Environmental Law.

(aaa) “House Funds” shall mean cash on hand at or for the Contributed Hotels,
including, without limitation, petty cash funds and cashiers’ banks.

(bbb) “Initial Anticipated Closing Date” shall mean October 11, 2005.

(ccc) “Inspection Period” shall have the meaning ascribed to it in Section 7(a)
of this Agreement.

(ddd) “Intangible Property” shall mean all of Wolf’s right, title and interest
in and to all intangible property in the possession or control of Wolf and used in
connection with the Contributed Hotels, including without limitation, all licenses and
permits (but specifically excluding any and all licenses and permits to sell alcohol and all
intangible property to be licensed to the Partnership, SPE Owners and/or Tenants pursuant to
the License Agreements, as hereinafter defined), approvals, authorizations and other
entitlements, all guaranties and warranties related to the Contributed Hotels or the
construction, fabrication or maintenance thereof, all plans and specifications relating to
the improvements relating thereto and any landscaping, all tradenames, logos, telephone
numbers, websites and domains (including access to FTP file content) and signage rights used
by Wolf in connection with the operation of the Contributed Hotels, and all books, records,
reports, test results, environmental assessments, surveys and other documents and materials
related to Wolf’s operation of the Contributed Hotels and Wolf’s construction, maintenance
and repair of the Property.

(eee) “Interim Beverage Facilities Management Agreement” shall mean the
agreement in the form attached hereto as Exhibit “N” pursuant to which Wolf Dells
and Wolf Sandusky will manage the alcoholic beverage facilities at the Dells Hotel and
Sandusky Hotel, respectively, on an interim basis.

(fff) “Inventory” shall mean all inventory located at the Contributed Hotels,
including without limitation, the Operating Supplies, all food and beverages (other than
unopened inventory and subject to any legal restrictions pertaining to the sale or transfer
of alcoholic beverages), engineering, maintenance and housekeeping supplies, including soap
and cleaning material and fuel, stationery and printing items and supplies, other supplies
of all kinds, whether used, unused or held in reserve storage for future use in connection
with the maintenance and operation of the Contributed Hotels, together with any additions
thereto prior to the Closing Date and subject to depletion, resupply, substitution,
replacement and disposition in the ordinary course of business.

(ggg) “Knowledge” shall mean, (i) with respect to Wolf, the actual knowledge of
Hernan Martinez, Michael Schroeder, Joe Walsh, Arif Qureshi and Kim Schaefer as of the date
of this Agreement, and (ii) with respect to CNL, the actual knowledge of Charlie Muller,
Tammie Quinlan, Bob Yow, Matt Ragsdale and Dawn Worth as of the date of this Agreement.

(hhh) “Leases” shall mean those certain lease agreements to be entered into at
Closing by and between each SPE Owner and wholly-owned subsidiary Affiliates of the
Partnership (which shall be taxable REIT subsidiaries) for each of the Contributed Hotels
(individually a “Tenant,” or collectively, the “Tenants”). The Leases shall
be in substantially the form negotiated by the parties as of the date hereof.

(iii) “License Agreements” shall mean those certain license agreements to be
entered into at Closing by and between Great Lakes Services, LLC, an Affiliate of Wolf, and
the applicable Tenant for each of the Contributed Hotels for the purpose of licensing to
Tenants the right to use the name “Great Wolf Hotel” in connection with the operation of the
Contributed Hotels. The License Agreements shall be in substantially the form negotiated
by the parties as of the date hereof.

(jjj) “Liquor Licenses” shall have the meaning ascribed to it in Section 14 of
this Agreement.

(kkk) “Management Agreements” shall mean those certain management agreements to
be entered into at Closing by and between Great Lakes Services, LLC, an Affiliate of Wolf,
and the applicable Tenant for each of the Contributed Hotels. The Management Agreements
shall be in substantially the form negotiated by the parties as of the date hereof.

(lll) “Managers” shall have the meaning ascribed to it in Section 14 of this
Agreement.

(mmm) “Non-Defaulting Party” shall have the meaning ascribed to it in Section
12 of this Agreement.

(nnn) “Operating Agreements” shall mean all contracts, agreements, leases
(including, but not limited to, commercial leases and equipment leases), maintenance
agreements and service contracts, to which Wolf is a party, which are in effect on the
Closing Date and which relate to the ownership and/or operation of the Contributed Hotels,
including, without limitation, any such agreements as are listed in Exhibit “R”
annexed to this Agreement and incorporated herein by this reference, but excluding the
Rental Management Agreements and such other agreements as are acceptable to or rejected by
the Tenants.

(ooo) “Operating Supplies” shall mean any and all operating supplies, whether
consumables or non-consumables, used or consumed in the ordinary course of business at the
Contributed Hotels and owned by Wolf, including without limitation, paper products, soap,
cleaning supplies, food, and alcoholic and non-alcoholic beverages.

(ppp) “Operations Settlement” shall mean a final accounting prepared by Wolf’s
and CNL’s accountants in the period between eight o’clock p.m. (local time) on the day prior
to the Closing Date and eight o’clock a.m. (local time) on the Closing Date, the results of
which shall be incorporated into the closing statement.

(qqq) “Other Revenues” shall mean all revenues earned by Wolf from the
operation of the Contributed Hotels other than Room Revenues, including, without limitation,
revenues from the sale of food, the sale of alcoholic and nonalcoholic beverages, rental of
meeting and banquet rooms, arcade revenues, revenues from Wiley’s Woods, telephone sales,
pay television sales, valet and parking services, spa lease rent, gift shop revenues and
other similar revenues, together with any sales tax or other taxes thereon.

(rrr) “Outside Closing Date” shall mean December 31, 2005 or such other date as
mutually agreed to in writing by the parties hereto.

(sss) “Partnership” shall have the meaning ascribed to it in Recital D of this
Agreement.

(ttt) “Partnership Agreement” shall have the meaning ascribed to it in Recital
D of this Agreement.

(uuu) “Permitted Exceptions” shall mean any and all (i) restrictions,
easements, reservations, covenants and other matters set forth as exceptions to title in the
Title Commitments (but not including Title Defects cured pursuant to Article 7 hereof) and
zoning and land use ordinances and laws of any Governmental Authority (except for monetary
liens, mortgages and encumbrances which shall be paid by Wolf prior to Closing and other
matters to be cured by Wolf pursuant to this Agreement); (ii) general taxes and assessments
for the year of the Closing and thereafter, and special taxes and assessments first becoming
due and payable after the Closing Date; (iii) matters disclosed or indicated by or shown on
a Survey or any update thereto which are acceptable to the Partnership and SPE Owners; (iv)
leases and tenancies in writing for any areas of the Contributed Hotels which are to be
assumed by the Partnership; and (v) liens, mortgages and encumbrances created by the
Partnership.

(vvv) “Personal Property” shall mean all furniture, furnishings, fixtures,
equipment, vehicles, machinery, appliances, dishes, utensils, cookware, materials, Inventory
and other personal property, located at the Contributed Hotels, owned by Wolf or any
Affiliate thereof, and used in connection with the operation of the Contributed Hotels, but
specifically excluding any such items leased by Wolf or any of its Affiliates from a
third-party pursuant to written lease agreements which are more particularly described on
Exhibit “S” attached hereto and by this reference incorporated herein.

(www) “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.

(xxx) “Post Closing Environmental Matter” shall have the meaning ascribed to it
in Section 7(d(ii) of this Agreement.

(yyy) “Property” shall mean the Dells Hotel, the Sandusky Hotel, the Commercial
Condominium Unit, the Personal Property and the Intangible Property.

(zzz) “Property Information” shall have the meaning ascribed to it in Section
7(a) of this Agreement.

(aaaa) “Purchase Price” shall mean that payment by CNL pursuant to which CNL
funds the acquisition of its interest in the Partnership and Tenants. The Purchase Price
shall be calculated by multiplying the Contribution Value of the Property and the percentage
interest in the Partnership and Tenants that CNL is acquiring as of the Closing Date.

(bbbb) “Remediation” shall mean any and all activities required by Governmental
Authorities to identify, assess, test, characterize, sample, clean up, remove, neutralize,
abate, or stabilize Environmental Matters at a particular site and/or to dispose of any
Hazardous Substance and/or any material containing any Hazardous Substance, including,
without limitation, Environmental Matters assessment, testing, sampling, quality control,
modeling, consultants’ analyses and reports, laboratory work, field tests, system
installation, modification, operation, and maintenance, acquisition of equipment, contract
negotiation and execution, contract development and bidding, monitoring, transportation, and
disposal.

(cccc) “Rental Management Agreements” shall mean those certain rental
management agreements more particularly identified and listed on Exhibit “T”
attached hereto and incorporated herein by this reference pursuant to which Wolf Dells
manages the rental of the condominium units known as Great Wolf Lodge Condominium and
located on certain real property lying adjacent and contiguous to the Dells Land as more
particularly described on Exhibit “U” attached hereto, all as more particularly
described in the Rental Management Agreements.

(dddd) “Room Revenues” shall mean all revenues from the rental of guest rooms
of the Contributed Hotels and from fees/revenues associated with the use of the Contributed
Hotels by occupants of the Great Wolf Lodge Condominium, together with any and all sales or
other taxes thereon.

(eeee) “Sandusky Hotel” shall have the meaning ascribed to it in Recital A of
this Agreement.

(ffff) “Sandusky Improvements” shall have the meaning ascribed to it in Recital
A of this Agreement.

(gggg) “Sandusky Land” shall have the meaning ascribed to it in Recital A of
this Agreement.

(hhhh) “SPE Owner” or “SPE Owners” shall have the meanings ascribed to
them in Recital C of this Agreement.

(iiii) “Surveys” shall have the meaning ascribed to it in Section 7(c) of this
Agreement.

(jjjj) “Tall Pines Agreement” shall mean that certain Tall Pines Royalty and
Exclusive License Agreement entered into by and between Tall Pines Development Corporation,
a Wisconsin corporation and The Great Lakes Companies, Inc., a Wisconsin corporation (to
whose interest Great Lakes Services, LLC succeeded to by merger) and effectively dated July
26, 2004.

(kkkk) “Tall Pines Acknowledgement Enforcement Agreement” shall mean that
certain Tall Pines Acknowledgement Enforcement Agreement in the form attached hereto as
Exhibit “V” and by this reference incorporated herein.

(llll) “Tenant” shall have the meaning ascribed to it in Section 2(hhh) of this
Agreement.

(mmmm) “Third-Party Estoppels” shall have the meaning ascribed to it in Section
9(h) of this Agreement.

(nnnn) “Title Commitments” shall mean the commitments of title insurance issued
by Title Company and provided to CNL with respect to each parcel comprising the Contributed
Hotels pursuant to this Agreement. The Title Commitments shall be endorsed at Closing in
favor of the applicable SPE Owners. Each of the Title Commitments is at times herein
referred to as a “Title Commitment”.

(oooo) “Title Company” shall mean First American Title Insurance Company
through the Talon Group, Orlando Commercial Services Division, a division of First American
Title Insurance Company, whose address is 111 North Orange Avenue, Suite 1285, Orlando,
Florida 32801, Attention: Michael Moore.

(pppp) “Title Defects” shall have the meaning ascribed to it in Section 7(b) of
this Agreement.

(qqqq) “Title Policies” shall mean the owner’s policies of title insurance to
be issued to the Partnership or the SPE Owners pursuant to the terms of the Title
Commitments and this Agreement. Each of the Title Policies is at times herein referred to
as a “Title Policy”.

(rrrr) “Tray Ledgers” shall mean any accounts receivable of registered guests
who have not checked out and who are occupying rooms on the evening prior to, and the
morning of, the Closing Date.

(ssss) “Wolf” shall have the meaning ascribed to it in the first paragraph of
this Agreement.

(tttt) “Wolf’s Closing Deliveries” shall have the meaning ascribed to it in
Section 10(c) of this Agreement.

(uuuu) “Wolf’s Closing Conditions” shall have the meaning ascribed to it in
Section 5(c) of this Agreement.

(vvvv) “Wolf’s Closing Conditions Failure” shall have the meaning ascribed to
it in Section 5(d) of this Agreement.

(wwww) “Wolf Dells” shall have the meaning ascribed to it in the first
paragraph of this Agreement.

(xxxx) “Wolf Parent” shall have the meaning ascribed to it in the first
paragraph of this Agreement.

(yyyy) “Wolf Partner(s)” shall have the meaning ascribed to it in Section 6 of
this Agreement.

(zzzz) “Wolf Sandusky” shall have the meaning ascribed to it in the first
paragraph of this Agreement.

3. Contribution to the Partnership. Subject to the terms, provisions and conditions
set forth herein:

(a) Wolf shall contribute the Property to the Partnership, the SPE Owners and/or the
applicable Tenants.

(b) The parties acknowledge that CNL shall be required to obtain no less than a
fifty-one percent (51%) interest in the Partnership and the Tenants as of the Closing Date,
but shall be entitled, at its election, to obtain up to a seventy percent (70%) interest in
the Partnership and the Tenants on the Closing Date pursuant to the terms of this Agreement,
and shall acquire additional interests so as to attain a seventy percent (70%) interest in
the Partnership and the Tenants after the Closing Date pursuant to the terms of the
Partnership Agreement.

(c) CNL shall pay the Purchase Price to Wolf or the Wolf Partner(s), as Wolf directs,
at Closing subject to the adjustments and prorations set forth herein.

4. Contribution Value of the Property.

(a) The Contribution Value of the Dells Hotel, that portion of the Personal Property
and Intangible Property associated therewith, and the Commercial Condominium Unit is Sixty
Million and No/100 Dollars ($60,000,000.00).

(b) The Contribution Value of the Sandusky Hotel and that portion of the Personal
Property and Intangible Property associated therewith is Fifty-Four Million Five Hundred
Thousand and No/100 Dollars ($54,500,000.00).

(c) The parties hereto agree that the Contribution Value associated with each of the
Contributed Hotels shall be allocated between real and personal property as agreed to by the
parties and determined during the Inspection Period (as defined in Section 7(a) hereof).
Each Tenant shall take title to all Personal Property relating to the indoor and outdoor
water park components of each of the Contributed Hotels together with such other Personal
Property (as determined by the parties) such that Each SPE Owner shall receive and become
the owner of Personal Property of no greater value than thirteen percent (13%) of the
Contribution Value of the applicable Contributed Hotel and such that applicable Tenant shall
receive and become the Owner of the remaining Personal Property.

(d) At the Closing, CNL shall pay or cause to be paid to Wolf or the Wolf Partner(s),
as directed by Wolf, by wire transfer an amount equal to the Purchase Price (as adjusted
pursuant hereto). CNL shall cause the wire transfer of funds to be delivered to the Escrow
Agent no later than 5:00 p.m. (Eastern Time) on the Closing Date. All amounts to be paid by
CNL to the Escrow Agent pursuant to this Agreement shall be paid by wire transfer of
immediately available U.S. federal funds.

5. Conditions Precedent. The following conditions precedent (the “Closing
Conditions”), as set forth below, shall be fully satisfied, or waived by the parties hereto, as
applicable, on even date with, or before the applicable party is obligated to fund its
contributions as required by and provided in this Agreement and in the Partnership Agreement:

(a) CNL’s Closing Conditions. CNL’s obligations to close the transactions described
in this Agreement are subject to the satisfaction at or prior to Closing of the following
conditions precedent (“CNL’s Closing Conditions”):

(i) Wolf’s Deliveries. All of Wolf’s Closing Deliveries (as defined in
Section 10(c) hereof) shall have been delivered to CNL or deposited with Escrow
Agent to be delivered to CNL or the Partnership at Closing.

(ii) Representations and Warranties. The representations or warranties
of Wolf in this Agreement shall be true and correct in all material respects as of
the Closing (or as such other date to which such representation and warranties
expressly were made).

(iii) Covenants and Obligations. The covenants and obligations of Wolf
in this Agreement shall have been performed in all material respects.

(iv) Title Policy. The Title Company shall have irrevocably committed
to issue the Title Policies pursuant to Article 7 hereof with all standard
exceptions deleted and all requirements for issuance of the Title Policies satisfied
and deleted.

(v) Change in Environmental Condition of 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.

(vi) Adverse Proceedings. No litigation or other court action shall
have been commenced seeking 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 that
would make illegal or invalid or otherwise prevent the consummation of the
transactions described in this Agreement.

(vii) Adverse Law. No law shall have been enacted that would make
illegal or invalid or otherwise prevent the consummation of the transactions
described in this Agreement.

(viii) Operating Agreements; Rental Management Agreements. There shall
be no material default by Wolf or any Affiliate of Wolf under any of the material
Operating Agreements or Rental Management Agreements.

(ix) Due Diligence Matters. The matters set forth on Exhibit “W”
attached hereto and by this reference incorporated herein shall have been resolved
to the reasonable satisfaction of CNL as of or prior to Closing.

(b) Failure of Any CNL’s Closing Condition. If any of CNL’s Closing Conditions is not
satisfied as of the Closing (a “CNL Closing Condition Failure”), then CNL shall have the
right, in CNL’s absolute discretion, to either (i) terminate this Agreement by providing written
notice to Wolf, in which case, except as otherwise set forth herein, the parties hereto 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 CNL in respect thereof provided for herein. If CNL terminates this Agreement because one
or more of the conditions precedent to its obligation to close the transactions described in this
Agreement set forth in Section 5(a)(i), Section 5(a)(ii), Section 5(a)(iii), or Section 5(a)(viii)
is not satisfied, or one or more of the conditions precedent set forth in Section 5(a)(iv), Section
5(a)(v), Section 5(a)(vi), Section 5(a)(vii), or Section 5(a)(ix) is not satisfied as the result
of the action or a failure to act by Wolf, and provided that the Wolf’s Closing Conditions set
forth in Section 5(c)(iii) and 5(c)(iv) are satisfied, then Wolf shall reimburse CNL for all
out-of-pocket expenses incurred by CNL in connection with the transactions contemplated by this
Agreement; provided, however that Wolf’s obligation to reimburse CNL under this Section 5 and
Sections 7(b) and 7(d) shall not exceed the sum of Two Hundred Thousand and No/100 Dollars
($200,000.00) in the aggregate.

(c) Wolf’s Closing Conditions. Wolf’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 “Wolf’s Closing Conditions”):

(i) Receipt of the Purchase Price. CNL shall have paid to the
Partnership or deposited with Escrow Agent, with irrevocable written direction to
disburse the same to the Partnership, the Purchase Price (as adjusted for prorations
pursuant hereto).

(ii) CNL’s Deliveries. All of CNL’s Closing Deliveries (as defined in
Section 10(d) hereof) shall have been delivered to Wolf or the Partnership or
deposited with Title Company, as escrow agent, to be delivered to Wolf or the
Partnership at Closing.

(iii) Representations and Warranties. The representations and
warranties of CNL 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).

(iv) Covenants and Obligations. The covenants and obligations of CNL
in this Agreement shall have been performed in all material respects.

(v) Adverse Proceedings. No litigation or other court action shall
have been commenced seeking 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 that
would make illegal or invalid or otherwise prevent the consummation of the
transactions described in this Agreement.

(vi) Adverse Law. No law shall have been enacted that would make
illegal or invalid or otherwise prevent the consummation of the transactions
described in this Agreement.

(d) Failure of Wolf’s Closing Conditions. If any of Wolf’s Closing Conditions is not
satisfied at the Closing (a “Wolf’s Closing Condition Failure”), then Wolf shall have the
right, in Wolf’s absolute discretion, to either (i) terminate this Agreement by providing written
notice to CNL, in which case, except as otherwise set forth herein, the parties hereto 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, without prejudice to any right or
remedy of Wolf in respect thereof provided for herein. If Wolf terminates this Agreement because
one or more of the conditions precedent to its obligation to close the transactions described in
this Agreement set forth in Section 5(c)(i), Section 5(c)(ii), Section 5(c)(iii), or Section
5(c)(iv) is not satisfied, or one or more of the conditions precedent set forth in Section 5(c)(v)
or Section 5(c)(vi) is not satisfied as the result of the action or a failure to act by CNL and
provided that the CNL’s Closing Conditions set forth in Section 5(a)(ii), 5(a)(iii) and 5(a)(viii)
are satisfied as of the Closing, then CNL shall reimburse Wolf for all out-of-pocket expenses
incurred by Wolf in connection with the transactions contemplated by this Agreement; provided,
however that CNL’s obligation to reimburse Wolf under this Section 5 shall not exceed the sum of
Fifty Thousand and No/100 Dollars ($50,000.00).

6. Requirements Upon Satisfaction of Closing Conditions. CNL and Wolf hereby agree
that if all of the Closing Conditions have been timely met or waived as set forth herein on or
before the Closing Date, then each of Wolf, or Wolf’s designated Affiliate(s) (the “Wolf
Partner(s)”) shall contribute the Property to the Partnership, the SPE Owners and/or the
applicable Tenants, and each of CNL, or CNL’s designated Affiliate(s) (the “CNL
Partner(s)”) shall make such payments to Wolf or the Wolf Partner(s), as Wolf may designate,
all as contemplated herein, so as to give effect to the transactions contemplated hereby and to
cause the general and limited partnership interests of the CNL Partner(s) in the Partnership and
Tenants after such payment to be equal to, or, at the election of CNL pursuant to Article 3 hereof,
greater than fifty-one percent (51%) of the total partnership interests in the Partnership and
Tenants, and the limited partner interests of the Wolf Partner(s) in the Partnership and Tenants
after such contributions to be equal to, or, at the election of CNL pursuant to Article 3 hereof,
less than forty-nine percent (49%) of the partnership interests in the Partnership and Tenants.

7. CNL Due Diligence with Respect to Contributed Hotels.

(a) CNL’s Inspections. On or before the Effective Date of this Agreement, Wolf
agrees to provide to CNL true and complete copies of all documents, studies, reports and
other materials reasonably requested by CNL that relate to the Property and are in the
possession or control of Wolf or any of Wolf’s Affiliates or currently retained consultants
(the “Property Information”); provided, however, that in no event shall Wolf be
required to provide information protected by attorney-client privilege, attorney work
product, confidential reports prepared for solely investors or financial projections
distributed for internal use by Wolf. Wolf represents that all Property Information
delivered to CNL will be, upon delivery thereof, to CNL true, complete and correct in all
material respects. CNL and its officers, employees, agents and consultants shall have the
period commencing on the Effective Date and terminating at 5:00 p.m. on the Closing Date
(the “Inspection Period”), in which to undertake such physical inspections and other
investigations of and concerning the Property, including surveys, soil borings, percolation,
engineering studies and other tests as CNL and its consultants deem reasonably necessary to
(i) review and evaluate the physical characteristics of the Property and to perform certain
work or inspections in connection with such evaluation; (ii) review and evaluate all
existing permits and licenses, existing development entitlements, vested rights, contracts,
agreements, obligations and similar matters applicable to the Property; (iii) determine and
evaluate any pending and threatened litigation and claims with respect to the Property; (iv)
determine compliance of the Property with all applicable laws, rules and regulations; and
(v) determine the suitability, in CNL’s sole and absolute discretion, of the Property for
the Business Purpose; provided, however, (A) that any such activities that take place on the
Property shall be done with reasonable prior notice and at reasonable times, (B) the
employees and agents of CNL that enter the Property for the purposes of conducting due
diligence with respect to the Property, and the activities conducted by CNL, must be insured
by CNL, (C) all employees or agents of CNL that enter the Property must be accompanied by an
employee of Wolf during the conduct of any due diligence activities on the Property and must
conduct themselves so as to minimize any disturbance to the conduct of Wolf’s business on
the Property in its ordinary course, (D) any such physical testing of the Property, such as
soil borings, must be approved in advance by Wolf, (E) CNL will provide to Wolf a copy of
each third-party report received by CNL in the course of its due diligence investigation of
the Property, and (F) CNL will not have any discussions with any employee of Wolf or any of
its Affiliates without the prior consent of Wolf. Inspections related to Environmental
Matters shall be further subject to the provisions of Section 7(d) below. The cost of all
such investigations shall be borne by each party in equal proportion to their interest in
the Partnership as of Closing. CNL shall be liable for all costs and expenses, and/or
damage or injury to any person or property resulting from any such inspection, whether
occasioned by the acts of CNL or any of its employees, agents, contractors, consultants or
representatives, and CNL shall save, insure, defend, indemnify and hold harmless Wolf from
any loss, cost, liability, claims and expenses (including, without limitation, mechanic’s
liens and/or reasonable attorneys’ fees and costs) resulting therefrom; provided, however
such indemnity shall not apply to any loss, cost, liability, claims or expenses arising as a
result of Wolf’s negligence. CNL shall restore the Property to substantially the same
condition as it existed prior to CNL’s activities. The obligations of CNL set forth in this
Paragraph shall survive the Closing or the termination of this Agreement.

(b) Title. As of the Effective Date of this Agreement, Wolf has provided to CNL
for review, a copy of Wolf’s existing title insurance policies (the “Existing Title
Policies”) relating to the Contributed Hotels. CNL has, as of the Effective Date,
obtained and delivered to Wolf the Title Commitments issued by the Title Company. The Title
Commitments evidence that title to the Dells Hotel is vested in Wolf Dells and that title to
the Sandusky Hotel is vested in Wolf Sandusky and that the Contributed Hotels are free and
clear of all liens, encumbrances, exceptions or qualifications whatsoever, except for
Permitted Exceptions. Legible copies of all exceptions set forth on the Title Commitments
have been provided to CNL as of the Effective Date. The Title Commitments also evidence
that, upon the execution, delivery and recording of the Deeds and the satisfaction of all
requirements specified in Schedule B, Section I of the Title Commitments, the applicable SPE
Owners shall acquire fee simple title to the Contributed Hotels and the Commercial
Condominium Unit, subject only to the Permitted Exceptions. CNL has reviewed the Existing
Title Policies delivered by Wolf to CNL, and the Title Commitments obtained by CNL pursuant
to this Paragraph, and notified Wolf in writing specifying those liens, encumbrances,
exceptions or qualifications to title which are unacceptable to CNL (such liens,
encumbrances, exceptions or qualifications being hereinafter referred to together with any
title matter created or permitted to be created by Wolf after the Effective Date and
objected to by CNL, and together with any title matter of which Wolf had Knowledge but which
Wolf did not disclose as of the Effective Date and objected to by CNL, as “Title
Defects”). Wolf shall cure the Title Defects before the Closing Date (the “Cure
Period”), to the satisfaction of CNL and the Title Company in such manner as to permit
the Title Company to endorse the Title Commitments so as to delete the Title Defects
therefrom. If Wolf shall in fact cure the Title Defects within the Cure Period, the
obligations and rights of the parties to close shall be unaffected by the eliminated Title
Defects. If Wolf is unable to cure or eliminate the Title Defects within the Cure Period,
CNL may elect to terminate this Agreement by giving written notice of termination to Wolf on
or before the Closing Date, or, alternatively, CNL may elect to waive CNL’s objections to
the uncured Title Defects and consummate the transactions contemplated by this Agreement
subject to the Title Defects, in which event the obligations and rights of the parties to
close shall be unaffected by the waived Title Defects. If CNL elects to terminate this
Agreement due to the existence of uncured Title Defects as provided in this Article 7, all
rights and obligations of the parties hereunder shall terminate and be null and void, except
for any rights and obligations of the parties that are to survive the termination of this
Agreement as provided elsewhere herein and Wolf shall reimburse CNL for all out-of-pocket
expenses incurred by CNL in connection with the transactions contemplated by this Agreement,
including, without limitation, all costs and expenses associated with the investigations
contemplated by Section 7(a) above, provided, however that Wolf’s obligation to reimburse
CNL under this Section 7(b), Section 5 and Section 7(d) shall not exceed the sum of Two
Hundred Thousand and No/100 Dollars ($200,000.00) in the aggregate.

(c) Survey. As of the Effective Date of this Agreement, Wolf has delivered to
CNL, for its review, the existing surveys of the Property in the possession or control of
Wolf. CNL has obtained and delivered to Wolf updated/new surveys (the “Surveys”)
which Surveys are in a form satisfactory to the Title Company, state the dimensions, acreage
and square footage of the each parcel of land comprising the Contributed Hotels, and show
the location of all boundaries, encroachments, overlaps, easements and improvements thereon.
CNL has reviewed the existing surveys and the Surveys and the Title Commitments and
provided written comments to Wolf specifying those matters shown on the Surveys which
adversely affect the title to the Contributed Hotels, and the same are deemed to be Title
Defects hereunder, subject to the rights and obligations of Wolf and CNL set forth above.

(d) Environmental Matters. CNL has obtained environmental studies (including
Level I studies), audits and tests of the Contributed Hotels as deemed necessary by CNL to
determine the existence of any Environmental Matters on the Contributed Hotels
(individually, an Environmental Report and collectively the “Environmental
Reports”). CNL has provided written notice (an “Environmental Notice”) to Wolf
of the existence of any Hazardous Substances on or contaminating the Property above legally
permissible levels as set forth in the current Environmental Laws (together with any such
matters caused by Wolf and not disclosed to CNL prior to the date hereof or with respect to
which Wolf had Knowledge but did not disclose prior to the date hereof, the
“Environmental Defects”). Wolf shall undertake a reasonable good-faith effort to
cure the Environmental Defect before the Closing Date to the satisfaction of CNL; provided,
however, if such Environmental Defect are not capable of being cured prior to the Closing
Date, the Closing Date may be extended for up to forty-five (45) days to allow Wolf to cure
such Environmental Defect. If Wolf shall in fact cure the Environmental Defect prior to
Closing, the obligations and rights of the parties to close shall be unaffected by the
Environmental Defect. If Wolf is unable to cure or eliminate the Environmental Defect prior
to Closing, CNL may elect to terminate this Agreement by giving written notice of
termination to Wolf on or before the Closing Date, or, alternatively, CNL may elect to waive
CNL’s objections to the uncured Environmental Defect and consummate the transactions
contemplated by this Agreement subject to the Environmental Defect, in which event the
obligations and rights of the parties to close shall be unaffected by the waived
Environmental Defect . If CNL elects to terminate this Agreement due to the existence of
uncured Environmental Defect as provided in this Article 7, all rights and obligations of
the parties hereunder shall terminate and be null and void, except for any rights and
obligations of the parties that are to survive the termination of this Agreement as provided
elsewhere herein and Wolf shall reimburse CNL for all out-of-pocket expenses incurred by CNL
in connection with the transactions contemplated by this Agreement, including, without
limitation, all costs and expenses associated with the investigations contemplated by
Section 7(a) above, provided, however that Wolf’s obligation to reimburse CNL under this
Section 7(d), Section 5 and Section 7(b) shall not exceed the sum of Two Hundred Thousand
and No/100 Dollars ($200,000.00) in the aggregate. If the Environmental Reports disclose
information which would require reporting of such information to a Governmental Authority,
as required under applicable Environmental Laws, Wolf agrees that it shall make any and all
such reports to the extent required by applicable Environmental Laws, and that CNL shall not
be obligated to do so. If Wolf fails to make any and all such reports to the extent
required by applicable Environmental Laws, CNL shall, to the extent CNL is required by law
to make such disclosures, have the right, but not the obligation, to do so.

(e) Right of Entry. Subject to the applicable provisions of Section 7(a) above
and subject to the matters set forth in this subsection, Wolf hereby grants to CNL and its
officers, employees, consultants, agents and assigns, right of entry upon the Dells Hotel
and the Sandusky Hotel and access to the Property at all reasonable times, and upon
reasonable notice, or otherwise at mutually agreeable times, from the date hereof up to and
including the earlier of the Closing Date or termination of this Agreement. Such right of
entry is subject to the following conditions: (A) that any such activities that take place
on the Property shall be done with reasonable prior notice and at reasonable times, (B) the
employees and agents of CNL that enter the Property for the purposes of conducting due
diligence with respect to the Property must be insured by CNL, (C) all employees or agents
of CNL that enter the Property must be accompanied by an employee of Wolf during the conduct
of any due diligence activities on the Property and must conduct themselves so as to
minimize any disturbance to the conduct of Wolf’s business on the Property in its ordinary
course, (D) any such physical testing of the Property, such as soil borings, must be
approved in advance by Wolf, (E) CNL will provide to Wolf a copy of each third-party report
received by CNL in the course of its due diligence investigation of the Property, and (F)
CNL will not have any discussions with any employee of Wolf or any of its Affiliates without
the prior consent of Wolf.

(f) CNL’s Right to Terminate. In the event the matters set forth on
Exhibit “W” attached hereto and by this reference incorporated herein, are not
resolved to CNL’s reasonable satisfaction (a “Due Diligence Defect”) and CNL so
notifies Wolf in writing of such Due Diligence Defect on or prior to 5:00 p.m. on the
Closing Date, then this Agreement shall be terminated and the parties shall be relieved of
any and all obligations hereunder other than those provisions which expressly survive
termination of this Agreement; provided, however, that if Wolf agrees in writing to endeavor
to cure such Due Diligence Defect within two (2) Business Days of receipt of CNL’s notice of
its intent to terminate this Agreement, then Wolf shall have the right to cure such Due
Diligence Defect within thirty (30) days of CNL’s notice of its intent to terminate, the
Closing shall take place on the later of (i) the date on which such thirty (30) day period
expires and (ii) the first Business Day after the date on which regulatory prohibitions
barring CNL from consummating the transactions contemplated hereby expire. In the event
that Wolf elects to cure such Due Diligence Defect but fails to do so within the
aforementioned thirty (30) day period, this Agreement shall be terminated and the parties
shall be relieved of any and all obligations hereunder other than those provisions which
expressly survive termination of this Agreement.

8. Representations and Warranties.

(a) In order to induce Wolf to enter into this Agreement and to consummate the
transactions contemplated hereby, CNL represents and warrants as follows:

(i) It is duly organized, validly existing and in good standing under the laws
of the State of Maryland and has all requisite right, power and authority to enter
into this Agreement and to consummate the transactions contemplated hereby.

(ii) This Agreement constitutes its legal, valid and binding obligation,
enforceable in accordance with its terms, except to the extent that enforcement
thereof may be limited by bankruptcy, insolvency, reorganization or other laws
relating to or affecting the enforcement of creditors’ rights generally and by
general principles of equity.

(iii) The execution, delivery and performance of this Agreement and all
instruments and other documents to be executed and delivered in connection with the
transactions contemplated hereby have been duly authorized by all necessary action
on the part of CNL and do not and will not: (A) require any consent or approval of
its shareholders and/or partners, whichever is applicable, that has not been
obtained; or (B) violate any law, rule, regulation, order, writ, judgment,
injunction, decree, determination or award presently in effect having applicability
to it or any provision of its organizational documents; or (C) contravene or result
in any breach of or constitute any default under, any indenture, mortgage, chattel
mortgage, deed of trust, conditional sales contract, bank loan or credit agreement,
or other agreement or instrument to which it is a party, or by which it may be bound
or affected, which contravention, breach or default would adversely affect its
ability to perform its obligations under this Agreement or the instruments and other
documents to be executed and delivered by it in connection with the transactions
contemplated hereby.

(iv) It will cooperate with Wolf, in good faith, and use its reasonable good
faith efforts to fulfill its obligations hereunder.

(v) CNL is not insolvent within the meaning of Title 11 of the United States
Code, as amended (the “Bankruptcy Code”), and CNL has not generally ceased
to pay its debts as they become due. CNL 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 or any
state 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 them which has not been dismissed, vacated or stayed on appeal
and CNL has not been adjudicated as bankrupt or insolvent or consented to, nor filed
an answer admitting or failing reasonably to contest an allegation of bankruptcy or
insolvency. CNL 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 CNL 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 properties, which has not been duly and fully
discharged prior to the date hereof.

(vi) There is no pending, or to CNL’s Knowledge, threatened, litigation or
other proceeding against CNL that would affect CNL’s ability to close the
transaction contemplated by this Agreement.

(b) In order to induce CNL to enter into this Agreement and to consummate the
transactions contemplated hereby, Wolf Dells, Wolf Sandusky and Wolf Parent each represent
and warrant as follows:

(i) It is duly organized, validly existing and in good standing under the laws
of the State of Delaware and is duly qualified, validly existing and in good
standing in the jurisdictions where the nature of its business requires it to be
qualified, and has all requisite right, power and authority to enter into this
Agreement and to consummate the transactions contemplated hereby.

(ii) This Agreement constitutes its legal, valid and binding obligation,
enforceable in accordance with its terms, except to the extent that enforcement
thereof may be limited by bankruptcy, insolvency, reorganization or other laws
relating to or affecting the enforcement of creditors’ rights generally and by
general principles of equity.

(iii) The execution, delivery and performance of this Agreement and all
instruments and other documents to be executed and delivered in connection with the
transactions contemplated hereby have been duly authorized by all necessary action
and approvals on the part of Wolf (whether corporate or otherwise) and do not and
will not: (A) require any consent or approval of its shareholders, directors and/or
partners, whichever is applicable, that has not been obtained; or (B) violate any
law, rule, regulation, order, writ, judgment, injunction, decree, determination or
award presently in effect having applicability to it or any provision of its
organizational documents; or (C) contravene or result in any breach of or constitute
any default under, any indenture, mortgage, chattel mortgage, deed of trust,
conditional sales contract, bank loan or credit agreement, or other agreement or
instrument to which it is a party, or by which it may be bound or affected, which
contravention, breach or default would adversely affect its ability to perform its
obligations under this Agreement or the instruments and other documents to be
executed and delivered by it in connection with the transactions contemplated
hereby.

(iv) It will cooperate with CNL, in good faith, and use its reasonable good
faith efforts to fulfill its obligations hereunder.

(v) To Wolf’s Knowledge, Wolf Dells holds fee simple title to the Dells Hotel
and the Commercial Condominium Unit, free of all liens, assessments and encumbrances
except for those matters set forth in the Title Commitments, and liens and
encumbrances which will be paid and discharged or otherwise released at or prior to
the Closing. To Wolf’s Knowledge, Wolf Sandusky holds fee simple title to the
Sandusky Hotel, free of all liens, assessments and encumbrances except for those
matters set forth in the Title Commitments, and liens and encumbrances which will be
paid and discharged or otherwise released at or prior to the Closing.

(vi) Wolf has no Knowledge of any condition or state of facts which would
preclude, materially limit or materially restrict the use of the Property for the
existing hotel, water-park and existing ancillary uses.

(vii) Wolf has good title to the Personal Property, free and clear of any
claims, liens or encumbrances of any kind or nature whatsoever.

(viii) Wolf has the right to use the Intangible Property and has no Knowledge
of any adverse claims of any third party with respect to the Intangible Property.

(ix) There are no material service or maintenance contracts affecting the
Property to which the Partnership will be bound upon Closing other than the
Operating Agreements.

(x) To Wolf’s Knowledge, the Property, the use thereof for the existing hotel,
water-park and ancillary uses (including the Dells Attraction Addition), and the
condition thereof does not violate in any material respect any applicable deed
restrictions, zoning or subdivision regulations, urban redevelopment plans, local,
state or federal environmental law or regulation or any building code or fire code
applicable to the Property and are not designated by any governmental agency to be
in a flood plain area.

(xi) Wolf has not received any written notice of any pending condemnation
proceeding or other proceeding in eminent domain, and to Wolf’s knowledge, no such
condemnation proceeding or eminent domain proceeding is threatened affecting the
Contributed Hotels or any portion thereof.

(xii) There is not pending or, to Wolf’s Knowledge, threatened, any litigation
or other proceeding involving Wolf or the Property that may affect the title to or
the use or operation of any part of the Property.

(xiii) Wolf is not a “foreign person” within the meaning of Section 1445(f)(3)
of the Internal Revenue Code of 1986, as amended, and Wolf shall certify its
taxpayer identification number at Closing.

(xiv) Wolf has no Knowledge of any current federal, state, county or municipal
plans to materially restrict or materially change access to any part of the Property
from any highway or road leading directly to or abutting any part of the Property.

(xv) To Wolf’s Knowledge, all of the consolidated statement of
operations/income statements, detailed monthly and annual statement of operations,
property level balance sheets, and historical and budgeted capital expenditure
programs regarding the ownership and operation of the Property that Wolf has
provided to CNL are true, complete and correct in all material respects.

(xvi) To Wolf’s Knowledge, the improvements comprising the Sandusky Hotel have
been constructed in accordance with the plans and specifications therefor in all
material respects.

(xvii) To Wolf’s Knowledge, as of the Closing, there will be in effect all
material permits and other authorizations necessary for the use, occupancy and
operation of the Property for its current use.

(xviii) To Wolf’s Knowledge: no Hazardous Materials are, will be, or have been,
stored, treated, disposed of or incorporated into, on or around the Contributed
Hotels in violation of any Environmental Law; the Property is in material compliance
with all applicable Environmental Laws and all applicable health and safety
requirements; any business currently or heretofore operated on the Contributed
Hotels or any portion thereof has disposed of its waste in accordance with all
applicable statutes, ordinances and regulations; there is no pending or threatened
action or proceeding arising out of the environmental condition of the Property or
any alleged violation of environmental, health or safety statutes, ordinances or
regulations.

(xix) All state and local tax returns and tax reports required to be filed by
Wolf with respect to the Property and the business operated on the Property on or
before the date hereof have been timely filed with the appropriate governmental
agencies in all jurisdictions in which such returns and reports are required to be
filed, and all of such returns were true, correct and complete as filed. All state,
and local income, franchise, sales, use, property, excise, payroll and other taxes
(including interest and penalties and including estimated tax installments where
required to be filed and paid) due from or with respect to the business operated by
Wolf on the Property prior to the date hereof have been fully paid, and appropriate
accruals have been made on the books of Wolf Dells and Wolf Sandusky for taxes not
yet due and payable. All taxes and other assessments and levies which Wolf is
required by law to withhold or to collect with respect to the Property or the
business operated on the Property have been duly withheld and collected, and have
been paid over to the proper governmental authorities and agencies to the extent due
and payable. There are no outstanding or pending claims, deficiencies or
assessments for taxes, interest or penalties with respect to the Property or the
business operated thereon by Wolf for any taxable period. Wolf has not received
notice of any pending audits with respect to any state or local tax returns of Wolf
relating to the Property or the business conducted by Wolf on the Property.

(xx) To Wolf’s Knowledge, Wolf has made available to CNL a true and complete
copy of all licenses and permits material to ownership and operation of the
Property. Wolf 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 or permits that materially affect the Property that has not been cured or
dismissed with prejudice, or (ii) any failure by Wolf to obtain any licenses or
permits that affect the Property that has not been cured or dismissed with
prejudice.

(xxi) Wolf has not granted to any party any license, lease or other right
relating to the use or possession of the Property or any part thereof except as set
forth in the Permitted Exceptions and except for room reservations for overnight
hotel guests and other reservations (e.g., group meetings, reservations for parties)
in the ordinary course of Wolf’s business.

(xxii) Except for this Agreement, Wolf has not entered into any purchase
contracts, options or other agreements of any kind, whereby any Person has or will
have any right to acquire title to all or any portion of the Property.

(xxiii) Exhibit “R” sets forth a true, correct and complete list of the
material Operating Agreements relating to the Property. The copies of such material
Operating Agreements heretofore delivered to CNL are true, correct and complete in
all material respects. Wolf has not sent to, nor received from any party to any of
such material Operating Agreements, a notice that Wolf or such party is in breach or
default under any obligation thereunder or any provisions thereof, which default
remains uncured. Wolf shall use reasonable, good faith efforts to obtain the
consent of all Persons whose consent for assignment of the Operating Agreements is
required on or prior to the Closing Date.

(xxiv) Exhibit “T” sets forth a true, correct and complete list of the
Rental Management Agreements relating to the Property. The copies of the Rental
Management Agreements heretofore delivered to CNL are true, correct and complete in
all material respects. To the Knowledge of Wolf, no party to the Rental Management
Agreements is in material breach or default under any obligation thereunder or any
provisions thereof. Wolf shall use reasonable, good faith efforts to obtain the
consent of all Persons whose consent for assignment of the Rental Management
Agreements is required on or prior to the Closing Date.

(xxv) Exhibit “X” sets forth a true, correct and complete list of the
Dells Construction Documents. The copies of the Dells Construction Documents
heretofore delivered to CNL are true, correct and complete in all material respects.
To the Knowledge of Wolf, no party to the Dells Construction Documents is in
material breach or default under any obligation thereunder or any provisions
thereof. Wolf shall use reasonable, good faith efforts to obtain the consent of all
Persons whose consent for assignment of the Dells Construction Documents is required
on or prior to the Closing Date.

(xxvi) There are no delinquent payments under the Dells Construction Documents.
The budgets and schedules accurately reflect the good-faith estimated remaining
cost of completing the Dells Attraction Addition.

(xxvii) Exhibit “Y” sets forth a true, correct and complete description
of the Tall Pines Agreement.

(xxviii) Wolf is not insolvent within the meaning of Title 11 of the United
States Code, as amended (the “Bankruptcy Code”), and Wolf has not generally
ceased to pay its debts as they become due. Wolf 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 or any
state 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 them which has not been dismissed, vacated or stayed on appeal
and Wolf has not been adjudicated as bankrupt or insolvent or consented to, nor
filed an answer admitting or failing reasonably to contest an allegation of
bankruptcy or insolvency. Wolf 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 Wolf 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 them or a material part of their properties, which has not been
duly and fully discharged prior to the date hereof except to the extent that any
such tax or other lien would not have a materially adverse effect on the Property or
the business to be conducted thereon by the Partnership or its Affiliates.

(xxix) Wolf has not received any written notice of any violation of, and to
Wolf’s Knowledge there is no violation of, any provision of applicable law
(including, but not limited to, the Americans with Disabilities Act, the WARN Act,
COBRA and those of environmental agencies), with respect to the ownership,
operation, use, maintenance or condition of the Property, which violation has not
been remedied.

(xxx) Except with respect to the Dells Construction Documents, at Closing there
will be no outstanding contracts for the construction or repair of any improvements
on the real property comprising the Property pursuant to which amounts are due and
payable or provision for the payment of which has not been made by Wolf (provision
being deemed to include the indemnity set forth below) and Wolf shall discharge and
have released of record or bonded all mechanic’s, builder’s or materialman’s liens,
if any, arising from any labor or materials furnished to the Property prior to the
Closing to the extent any such lien is not insured over the Title Company or bonded
over pursuant to applicable law. Wolf hereby agrees to indemnify, save, pay,
insure, defend, indemnify and hold CNL, the Partnership and the applicable SPE Owner
harmless from and against any and all loss, cost expense or damages arising out of
claims relating to any such outstanding due amounts.

(xxxi) Wolf has not received written notice from any insurance carrier of
defects or inadequacies in the Property which, if uncorrected, would result in a
termination of insurance coverage or a material increase in the premiums charged
therefor.

(xxxii) Neither (A) any portion of the Property, nor (B) any funds to be used
by Wolf 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. Wolf is not executing
this Agreement and will not be performing its obligations or exercising its rights
or remedies under the Agreement on behalf of or for the benefit of any Plan.
Neither the execution or delivery of this Agreement by Wolf, nor the performance by
Wolf 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.

Notwithstanding the foregoing, in the event that the Closing Date is extended beyond the
Initial Anticipated Closing Date, the failure of any representation contained in subparagraphs
(viii), (ix), (xii), (xix)(only as to the last sentence thereof), (xx)(only as to clause (ii)
thereof), (xxiii)(only as to notices of breach sent by Wolf to counterparties), (xxiv)(only as to
counterparties in breach of the Rental Management Agreement), and (xxvi)(only as to delinquent
payments reasonably disputed by Wolf in good faith) above shall not entitle either party hereto to
terminate this Agreement unless such failure results in or is likely to result in a material
adverse effect on the Property.

The representations and warranties set forth in this Article 8 and the covenants and
representations set forth in Article 9 shall survive the Closing for a period of one (1) year.

9. Covenants of Wolf.

(a) Conduct of the Business. From the date of this Agreement until the
Closing or earlier termination of this Agreement, Wolf shall not create or allow a third
party to create (where affirmative action by Wolf could prevent such creation) upon the
Contributed Hotels or the Commercial Condominium Unit any title exception which adversely
affects all or any portion of the Contributed Hotels, except to the extent to be satisfied
and released at Closing at Wolf’s expense.

(b) Intangible Property. Wolf shall be responsible for obtaining the transfer
of all such Intangible Property (to the extent transferable) which relates to the ownership
of the Property to the Partnership or such other party as the Partnership directs. Wolf
shall, as promptly as possible after the execution of this Agreement, submit all necessary
applications and other materials to the appropriate Governmental Authority or other Person
and take such other actions to effect the transfer of such Intangible Property or issuance
of new licenses and permits as of the Closing, and CNL shall reasonably cooperate with Wolf
to cause such Intangible Property to be transferred or new licenses and permits to be issued
to the Partnership or the applicable Tenant, as CNL and Wolf shall determine.

(c) Tax Contests.

(i) Taxable Period Terminating Prior to Closing Date. Wolf shall have
the right to commence, continue and settle any proceeding to contest any taxes
relating to the Property for any taxable period terminating prior to Closing, and
shall be entitled to any refunds or abatements of taxes awarded in such proceedings;
provided, however, Wolf shall provide CNL with written notice of such contest and
shall indemnify, pay, save, defend and hold CNL and the Partnership harmless from
and against any loss, cost, damages or expenses incurred by CNL or the Partnership
as a result of Wolf exercising its rights under this subparagraph (i). In addition,
in the event of such contest, Wolf shall undertake such measures as may be necessary
to cause the lien securing such taxes to be satisfied of record or to induce the
Title Company to issue the Title Policy without exception for such lien. This
subparagraph (i) shall survive the Closing.

(ii) Cooperation. Wolf and CNL shall use commercially reasonable
efforts to cooperate with any party contesting any taxes (at no cost or expense to
the party not contesting such taxes other than any de minimis cost or expense or any
cost or expense which the requesting party agrees in writing to reimburse) and to
execute and deliver any documents and instruments reasonably requested by the party
contesting such taxes in furtherance of the contest of such taxes. This
subparagraph (ii) shall survive after the Closing.

(d) Payment of Taxes. All taxes relating to the Property which would be
delinquent if unpaid will be paid by Wolf in full prior to Closing or prorated at Closing.

(e) Notices and Filings. Wolf and CNL shall use commercially reasonable
efforts to cooperate with each other (at no cost or expense to the party whose cooperation
is requested, other than any de minimis cost or expense or any cost or expense which the
requesting party agrees in writing to reimburse) to provide written notice to any Person
under any Operating Agreements, or applicable 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 Property. The provisions of this Section 9(e) will survive
the Closing.

(f) Further Assurances. From the date of this Agreement until the Closing or
termination of this Agreement, Wolf and CNL 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,
including, without limitation, (i) obtaining all necessary consents, approvals and
authorizations required to be obtained from any Governmental Authority or other Person under
this Agreement or applicable law, and (ii) effecting all registrations and filings required
under this Agreement or applicable law. After the Closing, Wolf and CNL shall use
commercially reasonable efforts to further effect the transactions contemplated in this
Agreement as may be reasonably necessary. This subparagraph (e) shall survive after the
Closing.

(g) Compliance; Property Maintenance. Wolf shall perform under and comply, in
all material respects, with the Operating Agreements and Intangible Property (as applicable)
and shall continue to make all payments due thereunder prior to delinquency (whether or not
the Partnership shall assume the same). Wolf shall maintain the Property in good condition
and repair in accordance with current operating 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 Wolf’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. Wolf shall not sell, remove or
otherwise dispose of any significant items of Personal Property (other than supplies or
materials used in the ordinary course of business, which supplies or materials shall be
replaced as used) unless replaced with an item of like value, quality and utility.

(h) Contracts and Agreements. Wolf shall provide CNL with a copy of any
service contracts, equipment leases or other similar agreements relating to the operation of
the businesses located on the Property or the making of capital improvements to the Property
(or any amendment or modification of any such agreements then in existence) that will be
binding upon the Property or the Partnership after the Closing Date.

(i) Estoppel Certificate. Wolf shall obtain those estoppel certificates
previously requested by CNL in writing and deliver the same to CNL prior to the Closing
Date, and shall use good faith, diligent efforts to obtain, prior to Closing, from any
third-party required by CNL as a result of its due diligence regarding the Property,
estoppel certificates in forms reasonably satisfactory to CNL, including, without
limitation, estoppel certificates regarding the Personal Property, any Operating Agreements
and regarding any easement agreements (together, all such estoppel certificates are
hereinafter referred to as the “Third-Party Estoppels”).

(j) Exclusivity. So long as this Agreement remains in full force and effect,
Wolf covenants and agrees to refrain during the term of this Agreement from making,
accepting, or soliciting or otherwise pursuing any other offer or proposal or agreement
regarding the sale of the Property or any portion thereof or any interest therein, and will
deal exclusively with CNL in good faith towards the completion of the transactions
contemplated herein unless this Agreement shall be terminated as provided herein.

(k) Bulk Sales. Wolf, at no expense to CNL, shall comply with all applicable
“bulk sales laws” requirements in a timely manner (taking into account the timing of the
Closing).

(l) Employees.

(i) Notice. Wolf will take all actions necessary to ensure compliance
with the WARN Act and shall indemnify, save, pay, insure, defend and hold harmless
CNL from and against any and all loss, cost, expense, damages or liability relating
to a failure to take any action or to provide any notice required under the WARN Act
or any applicable state law.

(ii) Liability of Wolf and CNL. Wolf shall and hereby agrees to
indemnify and save, pay, insure, defend and hold CNL harmless from and against any
loss, cost, expense, damages or liability for wages, salaries, bonuses, accrued
vacation days, sick days and personal days to be paid to, or accrued by, employees
of the business operated at the Property on account of services rendered prior to
Closing. Notwithstanding anything to the contrary herein contained, there shall be
no apportionment or proration of medical, pension, welfare benefits, other employee
benefits or other fringe benefits (hereinafter collectively referred to as
“benefits”) and Wolf hereby agrees to indemnify, insure, pay, save, defend
and hold CNL harmless from and against all benefits due to employees prior to
Closing under plans in which employees participate and all payments due or accruing
prior to Closing on the plans providing such benefits. Wolf also hereby agrees to
indemnify, pay, insure, defend, save and hold CNL harmless from any severance pay
which may become due to any of the employees whose employment ends at or prior to
Closing as a result of this transaction, whether due to Wolf’s employment policies
or as a matter of law. CNL hereby agrees to indemnify, insure, pay, save, defend
and hold Wolf harmless from and against all benefits due to employees of Manager
from and after Closing under plans in which Manager’s employees participate and all
payments due or accruing from and after Closing on the plans providing such
benefits.

(iii) Indemnities. Wolf shall indemnify, save, defend, pay insure and
hold CNL harmless from and against any claim by any employee, for failure to pay (a)
such employees’ wages, salary, bonuses, employment taxes, accrued vacation pay, sick
days and personal days, and withholding taxes prior to the Closing Date as to which
they may be entitled, (b) benefits due or accrued prior to Closing provided under
plans in which employees participated prior to Closing, and (c) liability under
Section 4980B, Part 6 of Title I of ERISA or Title IV of ERISA related to employees
arising prior to Closing. CNL shall indemnify, save, defend, pay insure and hold
Wolf harmless from and against any claim by any employee of Managers pursuant to the
Management Agreements, for failure to pay (a) such employees’ wages, salary,
bonuses, employment taxes, accrued vacation pay, sick days and personal days, and
withholding taxes due or accruing from and after the Closing Date as to which they
may be entitled, (b) benefits due or accruing from and after Closing provided under
plans in which employees participate from and after Closing, and (c) liability under
Section 4980B, Part 6 of Title I of ERISA or Title IV of ERISA related to employees
arising from and after Closing.

The provisions of this subparagraph (l) shall survive Closing.

10. Closing.

(a) Closing Date and Location. The Closing shall occur on the Initial
Anticipated Closing Date, or, at the election of CNL and upon written notice to Wolf from
CNL prior to Initial Anticipated Closing Date, the Outside Closing Date. In the event that
CNL elects to extend the Closing Date to the Outside Closing Date, CNL shall give Wolf
written notice of the precise date of the Outside Closing Date at least five (5) Business
Days prior to such Outside Closing Date, and if such Outside Closing Date is unacceptable to
Wolf in its reasonable discretion, Wolf may extend the Outside Closing Date up to fifteen
(15) days beyond the Outside Closing Date set forth in CNL’s notice. The Closing shall
occur in the offices of CNL’s counsel in Orlando Florida, or such other place as agreed to
in writing between Wolf and CNL. At the request of either party, Wolf and CNL shall
reasonably cooperate to accomplish the Closing “by mail.” The SPE Owners and or Tenants, as
applicable, shall take possession of the Property effective as of the Closing Date.

(b) Closing Escrow. If the parties agree to effect the Closing through an
escrow, then the Closing shall take place by means of a Title Company escrow (the
“Closing Escrow”), in which case at or prior to the Closing, the parties shall enter
into a closing escrow agreement with the Escrow Agent with respect to the Closing Escrow in
form and substance reasonably acceptable to Wolf, CNL and the Escrow Agent pursuant to which
(i) the Purchase Price to be paid by CNL pursuant hereto shall be deposited with the Escrow
Agent, (ii) all of the documents required to be delivered or caused to be delivered by Wolf
and CNL at Closing pursuant to this Agreement shall be deposited with the Escrow Agent, and
(iii) at Closing, the Purchase Price (as adjusted for prorations pursuant hereto) shall be
disbursed to Wolf or the Wolf Partner(s), as directed by Wolf, and the documents deposited
into the Closing Escrow shall be delivered to CNL, Wolf, and the Partnership (as the case
may be) pursuant to the closing escrow agreement.

(c) Wolf’s Closing Deliveries. At the Closing, Wolf shall deliver or cause to
be delivered by the Managers, Tenants, SPE Owners, the Partnership or any other Party which
it controls, to Escrow Agent all of the documents, each of which shall have been duly
executed by Wolf and acknowledged (if required), and other items, set forth as follows (the
“Wolf’s Closing Deliveries”):

(i) The Partnership Agreement.

	 	 	 
	(ii)

(iii)

(iv)

	 	The Assignment of Partnership Interests – Joint Venture Entity.

The Assignment of Partnership Interests – Tenants.

The Deeds.

(v) The Bills of Sale.

(vi) The Assignments and Assumptions of Intangible Property.

(vii) The Assignments and Assumptions of Operating Agreements.

(viii) The Assignment and Assumption of Rental Management Agreements.

(ix) The Assignment and Assumption of Condominium Documents.

(x) The Assignment and Assumption of Great Wolf Lodge Condominium Management
Agreement.

(xi) The Assignment and Assumption of Declaration of Easements and Covenant to
Share Costs for Great Wolf Lodge.

	 	 	 
	(xii)

(xiii)

(xiv)

(xv)

(xvi)

(xvii)

(xviii)

	 	The Interim Beverage Facilities Management Agreement.

The Leases.

The Management Agreements.

The License Agreements.

The Closing Certificate.

The Closing Statement (as hereinafter defined).

The Development Agreement.

(xix) The Collateral Assignment (as defined in the Development Agreement)
attached to the Development Agreement as Exhibit “C”.

(xx) The Tall Pines Acknowledgment Enforcement Agreement.

(xxi) An assignment and assumption of Wolf Dells’ interest as landlord in the
space lease between Wolf Dells and the operator of the spa located at the Dells
Hotel.

(xxii) Non-disturbance and attornment agreements with respect to the Management
Agreements.

(xxiii) Such agreements, affidavits or other documents as may be reasonably
required by the Title Company from Wolf to issue the Title Policies.

(xxiv) Any real estate transfer tax declarations or other documents required
under applicable law in connection with the conveyance of the Property.

(xxv) An affidavit from Wolf 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.

(xxvi) An affidavit from the appropriate Wolf entities in favor of the Title
Company and the Partnership which shall be sufficient to delete the standard
exceptions from the Title Policies that Wolf has not done or caused to be done any
work on the Contributed Hotels that has not been paid for and as to which mechanics’
liens or builders’ liens may be filed against the Real Property following the
Closing, and such other affidavits and/or indemnity agreement as may be reasonably
required by Title Company so that Title Company will agree to issue the Title Policy
for the Dells Hotel without exception for liens or encumbrances arising out of the
construction of the Dells Attraction Addition prior to the Closing Date.

(xxvii) To the extent not previously delivered to CNL, all originals (or copies
if originals are not available) of the Operating Agreements and Intangible Property
(to the extent applicable) which shall be located at the Contributed Hotels on the
Closing Date and deemed to be delivered to the SPE Owners upon delivery of
possession of the Property.

(xxviii) A corporate resolution, and an incumbency certificate to evidence the
capacity and authority of any corporate officer signing on behalf of Wolf.

(xxix) All Third-Party Estoppels.

(xxx) Any required Uniform Commercial Code termination statements.

(xxxi) Such other documents and instruments as may be reasonably requested by
CNL or the Title Company in order to consummate the transactions described in this
Agreement.

(d) CNL’s Deliveries.(i) At the Closing, CNL shall deliver or cause to
be delivered by the Tenants, SPE Owners, the Partnership or any other Party which it
controls, to Escrow Agent in the Closing Escrow to be delivered to Wolf or the
Partnership, as applicable, all of the documents, each of which shall have been duly
executed by CNL and acknowledged (if required), and other items set forth as follows
(the “CNL’s Closing Deliveries”):

(ii) Purchase Price. The Purchase Price (as adjusted for prorations pursuant
hereto) to be paid by CNL to the Wolf Partner(s).

(iii) Disbursement Letter. A letter of direction to Escrow Agent directing
Escrow Agent to disburse the Purchase Price to Wolf or such Affiliate(s) of Wolf as
Wolf may designate.

(iv) The Partnership Agreement.

(v) The Assignment of Partnership Interests – Joint Venture Entity.

	 	 	 
	(vi)

(vii)

(viii)

	 	The Assignment of Partnership Interests – Tenants.

The Assignments and Assumptions of Intangible Property.

The Assignments and Assumptions of Operating Agreements.

(ix) The Assignment and Assumption of Rental Management Agreements.

(x) The Assignment and Assumption of Condominium Documents.

(xi) The Assignment and Assumption of Great Wolf Lodge Condominium Management
Agreement.

(xii) The Assignment and Assumption of Declaration of Easements and Covenant to
Share Costs for Great Wolf Lodge.

	 	 	 
	(xiii)

(xiv)

(xv)

(xvi)

(xvii)

(xviii)

	 	The Interim Beverage Facilities Management Agreement.

The Leases.

The Management Agreements.

The Closing Certificate.

The Closing Statement (as hereinafter defined).

The Development Agreement.

(xix) The Collateral Assignment (as defined in the Development Agreement)
attached to the Development Agreement as Exhibit “C”.

(xx) The Tall Pines Acknowledgment Enforcement Agreement.

(xxi) An assignment and assumption of Wolf Dells’ interest as landlord in the
space lease between Wolf Dells and the operator of the spa located at the Dells
Hotel.

(xxii) Non-disturbance and attornment agreements with respect to the Management
Agreements.

(xxiii) A corporate resolution and an incumbency certificate to evidence the
capacity and authority of any corporate officer signing on behalf of CNL.

(xxiv) Such other documents and instruments as may be reasonably requested by
Wolf or the Title Company in order to consummate the transactions described in this
Agreement.

(e) Possession. Upon completion of the Closing, Wolf shall deliver possession
of the Property to the applicable SPE Owner and/or Tenants, subject only to the Permitted
Exceptions.

11. Prorations and Expenses.

(a) Closing Statement. No later than one (1) Business Day prior to Closing,
the parties jointly shall prepare 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 Closing, and such adjustments and prorations shall be final with respect to the
items set forth in the Closing Statement, except to the extent any such items shall be
reported after the Closing as expressly set forth herein.

(b) Operations Settlement. Room Revenues for the night prior to the Closing
Date (e.g., if the Closing Date is June 15, 2005, Room Revenues for the period of time
commencing on the evening of June 14, 2005 and ending on the morning of June 15, 2005),
prepaid deposits for confirmed reservations, hotel facilities and services for periods after
the Closing; and the purchase price for the Tray Ledgers, House Funds and Accounts
Receivable shall be determined by the Operations Settlement. As the Closing Date’s
financial results are necessary for completion of the Operations Settlement, CNL agrees to
the Contributed Hotel’s employees’ completion of posting of financial activity, all
schedules, credit card billings, and all other activities normally associated with the daily
activity of the Contributed Hotels. Any amounts determined to be due and owing to Wolf or
any applicable Affiliate of Wolf by the Partnership or to the Partnership by Wolf or any
applicable Affiliate of Wolf pursuant to the Operations Settlement shall be incorporated
into the Closing Statements but to the extent that any of the foregoing information is
unavailable or is found to be inaccurate, the same shall be handled as a post-closing
adjustment, the obligations of which shall survive the Closing.

(c) Taxes and Rents. At Closing, all general real estate and personal property
taxes for the year of the Closing and special taxes and assessments shall be prorated as of
the Closing Date (with the applicable SPE Owner to pay taxes attributed to the Closing Date
and all periods thereafter) using the latest available tax rates and assessments and taking
advantage of any discounts or rebates available for early payment and/or payment before
delinquency. If the proration is based upon the previous tax year’s bills, the parties
shall make an appropriate adjustment upon receipt of the current tax year’s bills, if
necessary. Wolf shall pay general real estate and personal property taxes for all years
prior to the year of the Closing and all installments of special taxes or assessments then
due and payable as of the Closing Date. All taxes or assessments which become due and
payable on or after the Closing Date shall be paid by the applicable SPE Owner. The
provisions of this Section 11(c) shall survive the Closing.

(d) Utilities. Prior to the Closing, Wolf shall notify all utility companies
servicing their respective portions of the Property of the anticipated change in ownership
of the Property and request that all billings after the Closing Date be made to the
applicable SPE Owner. Utility meters will be read, to the extent that the utility company
will do so, during the daylight hours on the Closing Date, with charges to that time paid by
Wolf and charges thereafter paid by the applicable SPE Owner. Prepaid utility charges shall
be adjusted on the Closing Statement and paid for at Closing. Charges for utilities which
are unmetered, or the meters for which have not been read on the Closing Date, will be
prorated between Wolf and the Partnership as of the Closing Date based upon utility billings
received after Closing. Wolf or the Partnership, as appropriate, shall, upon receipt,
submit a copy of the utility billings for any such charges to the other party and such party
shall pay its pro rata share of such charges to the party requesting payment within seven
(7) days from the date of any such request. This obligation shall survive Closing. The
Partnership shall be responsible for paying, before the Closing, all deposits required by
utility companies, if any, in order to continue service at the Property for periods after
the Closing Date and shall take any other action and make any other payments required to
assure uninterrupted availability of utilities at the Property for all periods after
Closing. Following Closing, all utility deposits made by Wolf or any applicable Affiliate
of Wolf shall be refunded directly to Wolf or such applicable Affiliate of Wolf by the
utility company holding same, or, if received by the Partnership or CNL, turned over to
Wolf. This obligation shall survive Closing.

(e) Assigned Operating Agreements. All income and expenses with respect to the
assigned Operating Agreements will be prorated as of the Closing Date (with income and
expenses for the Closing Date and thereafter to be allocated to the Partnership). There
shall be added to the amount due to the Wolf Partner(s) at Closing, on the Closing
Statement, the amount of any amounts paid by Wolf or the Wolf Partner(s) under any Operating
Agreements attributable to periods including and after the Closing Date, and there shall be
deducted from the amount due Wolf or the Wolf Partner(s) at Closing, on the Closing
Statement, any such amounts paid to and collected by Wolf or the Wolf Partner(s) under any
Operating Agreements attributable to periods including and after the Closing Date.

(f) Room Revenues; Reservations; Tray Ledger; Accounts Receivable and House
Funds.

(1) Room Revenues for the night prior to the Closing Date (e.g., if the
Closing Date is September 30, 2005, Room Revenues for the period of time
commencing on the evening of September 29, 2005 and ending on the morning of
September 30, 2005) shall be divided equally between Wolf and the
Partnership pursuant to the Operations Settlement. Other Revenues for the
night prior to the Closing Date shall belong solely to Wolf. Room Revenues
prior to the night prior to the Closing Date shall belong solely to Wolf.

(2) The Partnership shall cause the SPE Owners to honor, for their
account, the terms and rates of all pre-closing reservations confirmed by
Wolf for dates after the Closing Date. CNL authorizes Wolf to continue to
accept reservations for periods after the Closing in the ordinary course of
Wolf’s business. The Partnership shall cause the SPE Owners to honor all
such reservations in accordance with their terms. Any pre-closing deposits
made to Wolf with respect to confirmed reservations for dates after the
Closing Date will be credited to the Partnership at the Operations
Settlement. Any post-closing deposits received by Wolf with respect to
confirmed reservations for dates after the Closing Date will be forwarded to
the Partnership upon receipt.

The Partnership shall cause the SPE Owners to honor, for their account, all of Wolf’s room
allocation agreements and banquet facility and service agreements entered into in the ordinary
course of business which have been granted to groups, persons or other customers for periods after
the Closing Date at the rates and terms provided in such agreements.

The provisions of this Section 11(f)(2) shall survive the Closing.

(3) The Partnership, applicable SPE Owner or applicable Tenant shall
purchase the Tray Ledgers from the Wolf Partner(s) pursuant to the
Operations Settlement, with deduction for the portion of the Tray Ledger
consisting of one-half of the Room Revenues for the night prior to the
Closing Date.

(4) The Partnership, applicable SPE Owner or applicable Tenant shall
purchase the House Funds, exclusive of any non-cash items, from the Wolf
Partner(s) pursuant to the Operations Settlement.

(g) Accounts Payable and Expenses. All accounts payable and expenses related
to operations of the Property which have accrued before the Closing Date shall be paid by
Wolf or the Wolf Partner(s). All accounts payable and expenses accruing after the Closing
will be the Partnership’s, the applicable SPE Owner’s or the applicable Tenant’s
responsibility.

(h) Employees. If applicable, Wolf will comply with the notice requirements under the
WARN Act, COBRA, or any similar federal, state or local legislation with respect to any
employees terminated prior to the Closing in connection with this transaction. It is
expressly understood and agreed that Partnership 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 at the Property attributable to any time period up to, upon and, with respect to
any payment pursuant to the WARN Act, after the Closing.

(i) Reconciliation and Final Payment. The terms and provisions of this Article
11 shall survive Closing for a period of one (1) year.

(j) Transaction Costs. All transaction costs incurred as a result of this
transaction, including the following closing costs, shall be borne by each party in equal
proportion to their interest in the Partnership as of Closing: (A) the fees and expenses
incurred by CNL in connection with the inspections of the Property (B) the fees and
expenses of each parties’ accountants and consultants; (C) the fees and expenses for the
Surveys; and (D) the fees and expenses for the Escrow Agent; (D) the fees and expenses
related to the preparation and issuance of the Title Policies; (E) all transfer, sales or
similar tax and recording charges payable in connection with the conveyance of the Property;
(F) any fees or expenses payable for the assignment, transfer or conveyance of any Operating
Agreements and Intangible Property.

12. Default; Remedies. If either party hereto breaches any of its representations,
warranties, covenants and/or agreements made herein (the “Defaulting Party”), the other
party (the “Non-Defaulting Party”) may deliver written notice specifying the nature of such
breach and, unless the party receiving such notice cures the specified breach within twenty (20)
days following delivery thereof, such party shall be in default (“Default”) hereunder;
provided, however, that no such opportunity to cure is applicable if the breach results from a
party’s failure to proffer Closing. The Defaulting Party shall indemnify, save, insure, pay,
defend and hold harmless the Non-Defaulting Party from and against any and all costs, losses,
liabilities, obligations and other expenses, including legal fees for negotiation, trial and all
appellate levels, which such Non-Defaulting Party has suffered or may suffer arising out of the
Default by the Defaulting Party. A Non-Defaulting Party may pursue any remedies available at law
or in equity arising from the Defaulting Party’s Default hereunder including, without limitation,
specific performance; provided, however, that no party may recover consequential damages with
respect to any breach of the terms of this Agreement; provided further, however, that the
Defaulting Party shall not be liable hereunder for any Default or Defaults by such Defaulting Party
hereunder until the aggregate amount of damages suffered by the Non-Defaulting Party as a result
thereof exceed the sum of Fifty Thousand and No/100 Dollars ($50,000.00) and the Defaulting Party
shall in no event have liability hereunder for any Default or Defaults in excess of Ten Million and
No/100 Dollars ($10,000,000.00) in the aggregate; and provided further, however, that the
Defaulting Party shall not be liable hereunder for any Default or Defaults by such Defaulting Party
hereunder resulting from any breach of any representation or warranty of which the Non-Defaulting
Party had Knowledge prior to Closing. Notwithstanding anything to the contrary contained herein,
the provisions of this Article 12 shall survive the termination of this Agreement or the Closing,
as may be applicable, for a period of twelve (12) months and any claim for a Default hereunder must
be made during such twelve (12) month period by a written notice from the Non-Defaulting Party to
the Defaulting Party.

13. Hotel Improvement.

(a) Dells Attraction Addition. Wolf Dells is in the process of
constructing an addition to the Dells Hotel comprising approximately thirty-five thousand
(35,000) square feet of additional space for the indoor water-park component of the Dells
Hotel (the “Dells Attraction Addition”). The Contribution Value of the Dells Hotel
and the Personal Property and Intangible Property associated therewith has been calculated
based on the value of the Dells Hotel upon completion of the Dells Attraction Addition.
Wolf hereby agrees that a portion of the Purchase Price equal to Seventeen Million Five
Hundred Eighty Thousand and No/100 Dollars ($17,580,000.00)(the “Construction Funds”) shall
be delivered into escrow pursuant to the terms of the Development Agreement. Wolf also
hereby agrees to complete the construction of the Dells Attraction Addition in accordance
with the terms and provisions of the Development Agreement. The Construction Funds shall be
released from escrow pursuant to the terms of the Development Agreement. Wolf hereby agrees
to indemnify, save, pay, insure, defend, indemnify and hold CNL and the Partnership harmless
from and against any and all loss, cost expense or damages arising out of claims relating to
the construction of the Dells Attraction Addition accruing prior to Closing, including,
without limitation, any claims arising out of violations of any Dells Construction Documents
accruing prior to the Closing Date. This subparagraph (a) shall survive Closing.

(b) Condominium Development. An Affiliate of Wolf Dells has developed,
marketed and sold to unit purchasers a seventy-seven (77) unit condominium project which is
attached and adjacent to the Dells Hotel and commonly known as the Great Wolf Lodge
Condominium. All residential units in the Great Wolf Lodge Condominium have been sold to
third party purchasers. The Great Wolf Lodge Condominium units were developed and marketed
as hotel condominium units, all of the units in the Great Wolf Lodge Condominium have been
sold pursuant to the marketing plan and Wolf Dells currently acts as the rental manger for
some or all of these condominium units pursuant to the Rental Management Agreements. Wolf
also manages the common elements of the Great Wolf Lodge Condominium pursuant to the Great
Wolf Lodge Condominium Management Agreement. Wolf agrees and acknowledges that the Great
Wolf Lodge Condominium Management Agreement is being assigned pursuant to the Assignment and
Assumption of Great Wolf Lodge Condominium Management Agreement. Wolf agrees and
acknowledges that the Condominium Documents are being assigned pursuant to the Assignment of
Condominium Documents, and that upon such assignment of the Condominium Documents the
applicable SPE Owner shall succeed to the rights and obligations of Wolf Dells accruing
after the Closing Date as the Declarant and Developer thereunder. Wolf hereby agrees to
indemnify, save, pay, insure, defend, indemnify and hold CNL, the Partnership and the
applicable SPE Owner harmless from and against any and all loss, cost expense or damages
arising out of claims relating to the development, marketing, sales or management of said
condominium units, including without limitation, any claims arising out of any express or
implied warranties relating to the construction of the condominium units and out of any
violations of any securities laws and any claims in connection with the Rental Management
Agreements accruing prior to, as of or after the Closing Date and any claims in connection
with the Condominium Documents, the Rental Management Agreements and the management
agreement pursuant to which Wolf manages the common elements of the Great Wolf Lodge
Condominium accruing prior to the Closing Date. This subparagraph (b) shall survive
Closing.

(c) Sandusky Repairs. Wolf shall, within on hundred eighty (180) days of
Closing, complete certain repairs to the roof of the Sandusky Hotel and upgrade the
ventilation system at the Sandusky Hotel to the reasonable satisfaction of the Partnership.
Wolf hereby agrees that a portion of the Purchase Price equal to One Hundred Fifty Thousand
and No/100 Dollars ($150,000.00) shall be delivered into escrow at Closing and shall paid by
the Partnership to Wolf at such times (and in such amounts) as Wolf presents the Partnership
with invoices for work performed in connection with such repairs. Wolf acknowledges and
agrees that Wolf shall be responsible for the total cost of all such repairs notwithstanding
the amounts escrowed hereunder in connection therewith. Wolf hereby agrees to indemnify,
save, pay, insure, defend, indemnify and hold CNL and the Partnership harmless from and
against any and all loss, cost expense, liability or damages arising out of claims relating
to the repairs and improvements contemplated by this subparagraph (c). This subparagraph
(c) shall survive Closing.

14. Liquor Licenses. Prior to Closing, Wolf shall cause the managers under the Management
Agreements (the “Managers”) to obtain and hold on behalf of the Tenants all liquor licenses
and alcoholic beverage licenses necessary to operate any restaurants, bars and lounges presently
located at the Contributed Hotels (collectively, the “Liquor Licenses”). The Management
Agreements shall provide that Managers shall, at the election of Tenants, assign or transfer the
Liquor Licenses to Tenants. Wolf and CNL hereby agrees that they shall cooperate with the
Managers’ filing of such forms, applications and other documents and the Managers’ obtaining the
necessary Liquor Licenses shall take effect simultaneously with or upon completion of Closing. If
Managers are not permitted to execute and file such forms, applications, and other documents with
the appropriate liquor and alcoholic beverage authorities prior to Closing, Wolf agrees that it
will, or will cause the submission of all forms, applications and other documents required to
effect such acquisition of such Liquor Licenses at the earliest date reasonably practicable,
consistent with the laws of the states in which the Contributed Hotels are located, in order that
all Liquor Licenses may be acquired by Managers at the earliest reasonably practicable time after
Closing. If the Liquor Licenses cannot be obtained by the Managers until after Closing, then Wolf
and CNL covenant and agree that they shall mutually cooperate with the Partnership in keeping open
the bars and lounges and liquor facilities of the Contributed Hotels between Closing and the time
when such Liquor Licenses are obtained by the Managers, including, without limitation, through the
execution of the Interim Beverage Facilities Management Agreements.

15. Condemnation/Casualty. If, before the Closing, Wolf receives notice that either
of the Contributed Hotels are to be wholly or partially condemned, or if either of the Contributed
Hotels is wholly or partially destroyed by fire or other casualty, or if so much of either of the
Contributed Hotels is damaged by fire or other casualty, then, in any such event, Wolf shall notify
CNL in writing of any such event (which notice will, to the extent then known, contain the amount
of compensation offered for such condemnation or the amount of insurance proceeds offered to be
paid on account of such casualty, as the case may be) and CNL shall have the right to (i) terminate
this Agreement in its entirety by delivering notice of termination in writing to Wolf on or prior
to the Closing Date and upon giving such notice of termination the parties hereto shall be released
and discharged from any further obligation to each other hereunder except for those which expressly
survive the termination of this Agreement; (ii) terminate this Agreement with respect to the
Contributed Hotel which is the subject of the casualty or condemnation event by delivering notice
of termination in writing to Wolf on or prior to the Closing Date and upon giving such notice of
termination the parties hereto shall be released and discharged from any further obligation to each
other hereunder with respect to such Contributed Hotel except for those which expressly survive the
termination of this Agreement; or (iii) consummate the transactions contemplated herein on the
Closing Date, and the Partnership shall be entitled to all proceeds of fire or other casualty
insurance or condemnation (other than proceeds relating to business interruption or loss for
periods prior to the Closing Date), CNL shall receive a credit to the Purchase Price for any
deductibles with respect to any insurance proceeds in an amount equal to the product of such
deductible multiplied by CNL’s percentage interest in the Partnership as of the Closing Date;
provided, however, with respect to any casualty occurring after the Initial Anticipated
Closing Date, CNL shall not have the right to terminate this Agreement set forth in clause (i) or
(ii) of this sentence unless the cost of the restoration as reasonably estimated by CNL exceeds
$500,000. Wolf shall have no responsibility for the restoration and repair of the Property.

16. Assignability. Neither Wolf nor CNL shall assign any of its rights and/or
obligations under this Agreement except as specifically provided for herein. Notwithstanding the
foregoing: (a) Wolf shall have the right to designate any Wolf Affiliate to act as the
Wolf-controlled limited partner of the Partnership in lieu of Wolf, and (b) CNL shall have the
right to designate any CNL Affiliates to act as the CNL-controlled general partner and the
CNL-controlled limited partner of the Partnership in lieu of CNL.

17. Brokers. The parties each represent and warrant to the other that there are no
real estate brokers, salespersons or finders involved in this transaction. If a claim for
brokerage in connection with the transaction is made by any broker, salesperson or finder claiming
to have dealt through or on behalf of one of the parties hereto (“Indemnitor”), Indemnitor
shall indemnify, save, defend, pay and hold harmless the other party hereunder
(“Indemnitee”), and Indemnitee’s officers, directors, agents and representatives, from all
liabilities, damages, claims, costs, fees and expenses whatsoever (including reasonable attorney’s
fees and court costs at trial and all appellate levels) with respect to said claim for brokerage.
The provisions of this paragraph shall survive the Closing or any cancellation or termination of
this Agreement.

18. Miscellaneous.

(a) Successors and Assigns. This Agreement shall be binding upon the parties
hereto and their respective heirs and permitted successors, and assigns, each of whom shall
be entitled to enforce performance and observance of this Agreement, to the same extent as
if such heirs, successors, and assigns, were parties, hereto.

(b) Liability of Interest-Holders in CNL and its Affiliates. Wolf agrees and
acknowledges that none of the members, partners, shareholders or other holders of beneficial
interests of or in CNL or any of CNL’s Affiliates shall be personally liable for any
obligation or responsibility of CNL or any of its Affiliates hereunder solely by virtue of
being a member, partner, shareholder or holder of any beneficial interest of or in CNL or
any of its Affiliates. CNL agrees and acknowledges that none of the members, partners,
shareholders or other holders of beneficial interests of or in Wolf or any of Wolf’s
Affiliates shall be personally liable for any obligation or responsibility of Wolf or any of
its Affiliates hereunder solely by virtue of being a member, partner, shareholder or holder
of any beneficial interest of or in Wolf or any of its Affiliates

(c) Prior Agreements. This Agreement constitutes the entire agreement and
understanding among the parties hereto with respect to the subject of this Agreement and
cancels all prior memorandums, discussions and agreements with respect to such subject
matter, and no alteration, modification, amendment or interpretation of this Agreement shall
be binding unless it is in writing and signed by the party against whom enforcement is
sought.

(d) Exclusivity. Wolf and CNL agree that until termination of this Agreement,
they shall work exclusively with each other with respect to the Business Purposes and they
shall not negotiate or offer to negotiate with any person or entity other than each other in
connection with such Business Purposes or the Contributed Hotels.

(e) Time is of the Essence. Time is of the essence in the performance of this
Agreement by each party.

(f) Severability. If any provision of this Agreement is ultimately determined
to be invalid or unenforceable, such provision shall be deemed limited by construction in
scope and effect to the minimum extent necessary to render the same valid and enforceable,
and, in the event no such limiting construction is possible, such invalid or unenforceable
provision shall be deemed severed from the Agreement without affecting the validity of any
other provision hereof if the essential provisions of this Agreement for each party remain
valid, binding and enforceable.

(g) Exhibits. All exhibits referenced in this Agreement are hereby
incorporated herein and made a part hereof.

(h) Further Assurances. Each of the parties hereto covenants and agrees to do,
execute, acknowledge and deliver, or cause to be done, executed, acknowledged and delivered,
any and all such further acts, instruments, papers and documents as may be reasonably
necessary to carry out and effectuate the intent and purposes of this Agreement.

(i) Choice of Law; Venue. This Agreement and all matters arising from or
relating to this Agreement shall be governed by the laws of the state of Delaware without
regard to its conflicts of laws principles. All of the parties to this Agreement have
participated fully in the negotiation and preparation hereof, and, accordingly, this
Agreement shall not be more strictly construed against any one of the parties hereto.
Except as set forth above, the parties hereto agree to submit to the jurisdiction of Ohio in
connection with any claims or controversy arising out of this Agreement and that venue for
such actions shall be in Cuyahoga County, Ohio.

(j) Notice. All notices required or permitted by this Agreement shall be in
writing and shall be hand delivered or sent by a nationally recognized overnight courier
(such as FedEx) or by facsimile transmission, addressed as follows:

	 	 	 
	If to Wolf:Great Wolf Resorts, Inc.

122 W. Washington Avenue

Madison, WI 53703

Attention:Mr. Hernan Martinez

Fax:608/661-4701

	 	

President, Development Division

	 
	 	 
	With a copy at the same time to:

	 	

	 
	 	 
	Great Wolf Resorts, Inc.

122 W. Washington Avenue

Madison, WI 53703

Attention:Michael Schroeder, Esq.

Fax:

	 	

608/661-4701

	 	 	 	and

	 	 	 
	7 Times Square

New York, New York 10036

Attention:

Fax:

	 	Heller Ehrman LLP

Bruce D. Saber, Esq.

212/763-7600
	 
	 	 
	If to CNL:

CNL Center at City Commons,

Attention:

Chief Financial Officer

Fax:

	 	CNL Income Partners, LP

450 South Orange Avenue

Orlando, Florida 32801-3336

Ms. Tammie Quinlan,

407/540-2544
	 
	 	 
	With a copy at the same time to:

	 	

	 
	 	 
	CNL Center at City Commons,

Attention:

Corporate Counsel

Fax:

	 	CNL Income Properties, Inc.

450 South Orange Avenue

Orlando, Florida 32801-3336

Ms. Amy Sinelli, Esq.,

407/540-2544
	 
	 	 
	With a copy at the same time to:

	 	

	 
	 	 
	215 North Eola Drive

Orlando, Florida 32801

Attention:

Fax:

	 	Lowndes, Drosdick, Doster, Kantor & Reed, P.A.

William T. Dymond, Esq.

407/843-4444

or to such other address as shall, from time to time, be supplied in writing by such party. Any
such notice shall be deemed given upon the earlier of receipt by the addressees if hand delivered
(or attempted delivery is refused by the intended recipient thereof), on the next business day
after deposit with a recognized overnight courier, or if sent by facsimile transmission on the day
given provided that the party making such delivery receives an electronic confirmation setting
forth the proper phone number receiving such facsimile transmission and that the entire
transmission has been properly received by the addressee without communication error.

(k) Attorney’s Fees. In connection with any disputes or actions arising out of
the transaction contemplated by this Agreement, or the breach, enforcement or interpretation
of this Agreement, the substantially prevailing party shall be entitled to recover, from the
party not substantially prevailing, all reasonable costs and attorney, paralegal and expert
fees incurred by the substantially prevailing party before trial, at trial, at retrial, on
appeal, at all hearings and rehearings, and in all administrative, bankruptcy and
reorganization proceedings.

(l) Effect of Delay and Waivers. No delay or omission to exercise any right or
power accruing prior to or upon any breach, omission, or failure of performance hereunder
shall impair any such right or power, or shall be construed to be a waiver thereof, and any
such right or power may be exercised from time to time and as often as may be deemed
expedient. In the event of any breach of any provision contained in this Agreement,
thereafter waived by another party, such waiver shall be limited to the particular waiving
party and to the particular breach in question and no other. No waiver or release of any
term or provision of this Agreement shall be established by conduct, custom, or course of
dealing, but solely by a document in writing duly authorized and executed by the waiving or
releasing party.

(m) Construction of Agreement. The titles and headings herein are for
reference purposes only, and shall not in any manner limit the construction of this
Agreement which shall be considered as a whole. Whenever the context may require in
construing this Agreement, the singular shall be held to include the plural, the plural
shall be held to include the singular, the use of any gender shall be held to include every
other and all genders, and captions and paragraph headings shall be disregarded.

(n) Confidentiality. The parties hereto acknowledge and agree that the
existence of this Agreement, the terms of this Agreement and any other information disclosed
in the due diligence materials delivered to or produced by CNL or any other documents,
materials, data or other information with respect to the Property which is not generally
known to the public (the “Confidential Information”) shall in all respects remain
confidential and shall not be disclosed by CNL except as provided herein. CNL may disclose
Confidential Information to officers, directors, employees, attorneys, accountants,
consultants, lenders, financial advisors, partners and investors (collectively,
“Representatives”), who in the reasonable business judgment of such party, need to
know the Confidential Information for the purpose of evaluating the transaction contemplated
by this Agreement. CNL will inform its Representatives of its confidentiality obligations
under this Agreement, and such Representatives shall agree to be bound by the terms and
conditions of this Agreement, before CNL may disclose any Confidential Information to its
Representatives. The disclosure of any Confidential Information by any Representative in
breach of this Agreement will constitute a breach of this Agreement by CNL, for which CNL
will be liable. If CNL or any of its Representatives is required by any subpoena,
interrogatories, request for production, or other legal process or by any applicable law or
regulation to disclose any Confidential Information, CNL will give (to the extent not
prohibited by law) Wolf prompt written notice of the requirement and will cooperate with
Wolf so that Wolf, at its expense, may seek an appropriate protective order. In the absence
of a protective order, CNL and its Representatives may disclose only such Confidential
Information as may in CNL’s reasonable opinion, be necessary to avoid any penalty, sanction,
or other material adverse consequence, and CNL will use commercially reasonable efforts to
secure confidential treatment of any Confidential Information so disclosed.

(o) WAIVER OF TRIAL BY JURY. THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVE ANY RIGHT THAT ANY PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR
ANY OTHER DOCUMENTS EXECUTED IN CONNECTION HEREWITH, OR IN RESPECT OF ANY COURSE OF CONDUCT,
STATEMENTS (WHETHER ORAL OR WRITTEN), OR ACTIONS OF EITHER PARTY. THIS PROVISION IS A
MATERIAL INDUCEMENT FOR EACH OF THE PARTIES TO ENTER INTO THIS AGREEMENT.

(p) Third Party Beneficiaries. Nothing expressed or implied in this Agreement
is intended, or shall be construed, to confer upon or give any person, firm, corporation,
partnership, association or other entity, other than the parties hereto and their respective
legal representatives, permitted successors and assigns, and Affiliates to be formed in
connection with the Business Purposes, any rights or remedies under or by reason of this
Agreement.

(q) Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be an original as against any party whose signature appears thereon, and
all of which together shall constitute one and the same agreement. All executed facsimile
copies of this Agreement shall have the same force and effect as an executed original.

(r) The parties to this Agreement agree to use commercially reasonable, good-faith
efforts to effectuate the transactions contemplated by this Agreement.

[SIGNATURE PAGE FOLLOWS]

4

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 set forth below.

CNL INCOME PARTNERS, LP,

a Delaware limited partnership

By: CNL INCOME GP CORP.,

a Delaware corporation,

its sole General Partner

By:     /s/ Tammie A. Quinlan     

Name: Tammie A. Quinlan

Title: Executive Vice President

5

GREAT BEAR LODGE OF WISCONSIN DELLS, LLC,

a Delaware limited liability company

By: /s/ Hernan R. Martinez

Hernan R. Martinez, Vice President

Date:

GREAT BEAR LODGE OF SANDUSKY, LLC,

a Delaware limited liability company

By: /s/ Hernan R. Martinez

Hernan R. Martinez, Vice President

Date:

GREAT WOLF RESORTS, INC.,

a Delaware corporation

By: /s/ Hernan R. Martinez

Hernan R. Martinez, Executive Vice

President

Date:

6

EXHIBIT “A-1”

Legal Description of Dells Land

PARCEL A:

A parcel of land being Lot Three (3), part of Lot Two (2), part of Lot Four (4), Certified Survey
Map No. 3598, recorded in Volume 18 of Certified Survey Maps, on Page 3598, as Document No. 650408,
and part of the Northwest Quarter of the Southeast Quarter (NW 1/4 SE 1/4) and the Northeast
Quarter of the Southeast Quarter (NE 1/4 SE 1/4) of Section Twenty-Eight (28), Township Thirteen
(13) North, Range Six (6) East, in the Village of Lake Delton, Sauk County, Wisconsin, bounded by
the following described line:

Beginning at the Northeast corner of said Lot 3; thence South 5°48’51” West along the East line of
said Lot 3, 325.97 feet; thence Southwesterly along said East line on a curve to the right, radius
724.00 feet, whose chord bears South 16°22’56.5” West, 265.57 feet; thence Southwesterly along the
South line of said Lot 3 on a curve to the right, radius 324.00 feet; whose chord bears South
51°32’33” West, 269.67 feet; thence Westerly along said South line on a curve to the right, radius
724.00 feet, whose chord bears South 86°52’38.5” West, 269.91 feet; thence North 84°07’08” West
along said South line of said Lots 3 and 4, 674.46 feet; thence North 82°23’12” West along the
South line of said Lot 4, 38.32 feet; thence North, 685.99 feet; thence North 89°56’30” East,
512.18 feet to the Northwest corner of said Lot 3; thence North 89°56’30” East along the North line
of said Lot 3, 465.35 feet (recorded as 465.50 feet) to the Southeast corner of said Lot 2; thence
North 0°02’30” East along the West line of said Lot 2, 133.30 feet; thence North 89°56’30” East,
333.44 feet to the East line of said Lot 2; thence South 5°48’51” West along said East line, 134.00
feet to the point of beginning.

TOGETHER WITH CERTAIN REAL PROPERTY RIGHTS IN OTHER LAND ESTABLISHED BY THE FOLLOWING: all rights,
benefits and easements created by and pursuant to the Easement Agreement dated November 8, 1999,
between Tall Pines Realty, LLC, Great Bear Lodge of Wisconsin Dells, LLC and by Tall Pines
Development of Wisconsin Dells, LLC, filed of record as Document No. 716584 in the Register’s
Office of Sauk County, Wisconsin.

PARCEL B:

Commercial Unit, Great Wolf Lodge Condominium, in the Village of Lake Delton, Sauk County,
Wisconsin, as created by that certain Declaration of Condominium recorded on June 14, 2005 as
Document No. 874991 in the Register’s Office of Sauk County, Wisconsin.

7

EXHIBIT “A-2”

Legal Description of Sandusky Land

The land referred to in this Commitment, situated in the Township of Perkins, County of Erie, State
of Ohio, is described as follows:

Parcel No. 1: Known as and being a parcel in Lot 7, Hallam Tract, Section 2, Perkins Township, Erie
County, Ohio and being more particularly described as follows: Commencing at a found railroad spike
marking the intersection of the original centerline of Hull Road, C.R. #8, with the northwesterly
line of Lot 7, Hallam Tract, Section 2, Perkins Township, Erie County, Ohio; thence proceeding
South 75 degrees 39 minutes 44 seconds East in the centerline of Hull Road, CR #8, a distance of
615.43 feet to a Found railroad spike set in the southeasterly line of a parcel owned by Perkins
Township Board of Trustees as evidenced in Erie County Deed Records Volume 370 at page 571, and
also being the point and place of beginning of the parcel herein described; thence proceeding South
50 degrees 53 minutes 16 seconds West in the southeasterly line of the previously mentioned parcel,
passing through a found 1/2” rebar at 45.44 feet and a 1/2” rebar set at 786.99 feet, a total
distance of 831.99 feet to a point in the centerline of State Route #250; thence proceeding South
39 degrees 5 minutes 00 seconds East in the centerline of State Route #250, a distance of 544.88
feet to a point in the northwesterly line of a parcel owned by Meijer, Inc., as evidenced in Book
159 at page 916, Erie County, Ohio Recorder’s Office, said line also being the southeasterly line
of Lot 7; thence proceeding North 50 degrees 37 minutes 25 seconds East in the northwesterly line
of the previously mentioned parcel, passing through a found 1/2” rebar at 45.00 feet and a found
1/2” rebar at 1186.72 feet, a total distance of 1232.00 feet to a found railroad spike set in the
centerline of Hull Road, C.R. #8; thence proceeding North 75 degrees 39 minutes 44 seconds West in
the centerline of Hull Road, C. R. #8 a distance of 671.20 feet to the point and place of
beginning. Said parcel contains 12.8547 acres but is subject to all legal highways and easements of
record. The above legal description was prepared by Allan W. Welrich, Professional Surveyor #7427,
and is based on the assumption that the southeasterly line of Lot 7, Hallam Tract, Section 2,
Perkins Township, Erie County, Ohio bears North 50 degrees 37 minutes 25 seconds East and is also
based on a field survey done September, 1998.

Parcel No. 2: Situated in the Township of Perkins, County of Erie, State of Ohio and being part of
the Original Lot 5, Hallam Tract, Section 2, and more particularly described as follows: Commencing
at a P.K. spike found marking the intersection of the centerline of Sandusky-Norwalk Road, (U.S.
250) with the southeasterly line of said Lot 5; thence N 39° 5’ 00” W, 1434.95 feet along the
centerline of U.S. 250 to a point on the northwesterly line of Lot 5; thence N 50° 37’ 25” E,
522.00 feet along said northwesterly line of lot 5 to a 5/8” rerod found with cap stamped “Ohio
6711”, said point being the principal point of beginning for the parcel described herein; 1) thence
continuing N 50° 37’ 25” E along said northwesterly line of Lot 5 and the southeasterly line of
lands conveyed to Linn W. Pelton by deed recorded in Volume 125, Page 619, 478.79 feet to a 5/8”
rerod found with cap stamped “Ohio 6711”; 2) thence parallel with Hull Road S 75° 39’ 44” E along
the southerly line of lands conveyed to Walter A. Davlin, Jr. by deed recorded in Volume 279, Page
529, 170.21 feet to a 5/8” rerod set with cap stamped “6711”; 3) thence S 50° 37’ 25” W, 579.52
feet to a 5/8” rerod found with cap stamped “Ohio 6711”; 4) thence N 39° 22’ 35” W along the
northerly line of lands conveyed to Steak N’ Shake, Inc., by deed recorded in RN 9901270, 137.18
feet to the principal point of beginning, enclosing an area of 1.6667 gross and net acres, more or
less (72,601 sq. ft.), subject to all legal easements, use restrictions and public right of way now
on record. Basis of Bearings: Bearings are based on the centerline of Sandusky-Norwalk Road (U.S.
250) per Deed Volume 159, Page 916 of Erie County Records.

TOGETHER WITH CERTAIN REAL PROPERTY RIGHTS IN OTHER LAND ESTABLISHED BY THE FOLLOWING: all rights,
benefits and easements created by and pursuant to the Nonexclusive Driveway Access Easement
Agreement dated September 28, 1999, by and between Meijer, Inc., and Black Bear Lodge, LLC filed
for record on September 29, 1999 as Document RN 9914996, Erie County Ohio Recorder’s Office; and
all rights, benefits and easements created by and pursuant to the Nonexclusive Storm Water Drainage
and Detention Pond Easement Agreement dated September 28, 1999, by and between Meijer, Inc., and
Black Bear Lodge, LLC filed for record on September 29, 1999 as Document RN 9914997, Erie County
Ohio Recorder’s Office; and all rights, benefits and easements created by and pursuant to the
Nonexclusive Sanitary Sewer Easement Agreement dated September 28, 1999, by and between Meijer,
Inc., and Black Bear Lodge, LLC filed for record on September 29, 1999 as Document RN 9914998, Erie
County Ohio Recorder’s Office.

8

EXHIBIT “B”

Form of Partnership Agreement

9

EXHIBIT “C”

Assignment and Assumption of Condominium Documents

TO BE AGREED UPON BY THE PARTIES PRIOR TO CLOSING USING GOOD FAITH, DILIGENT EFFORTS.

10

EXHIBIT “D”

Assignment of Declaration of Easements and 

Covenant to Share Costs for Great Wolf Lodge

TO BE AGREED UPON BY THE PARTIES PRIOR TO CLOSING USING GOOD FAITH, DILIGENT EFFORTS.

11

EXHIBIT “E”

Assignment of Great Wolf Lodge Condominium Management Agreement

TO BE AGREED UPON BY THE PARTIES PRIOR TO CLOSING USING GOOD FAITH, DILIGENT EFFORTS.

12

EXHIBIT “F”

Form of Assignment of Intangible Property

TO BE AGREED UPON BY THE PARTIES PRIOR TO CLOSING USING GOOD FAITH, DILIGENT EFFORTS.

13

EXHIBIT “G”

Form of Assignment of Operating Agreements

TO BE AGREED UPON BY THE PARTIES PRIOR TO CLOSING USING GOOD FAITH, DILIGENT EFFORTS.

14

EXHIBIT “H”

Form of Assignment of Rental Management Agreements

TO BE AGREED UPON BY THE PARTIES PRIOR TO CLOSING USING GOOD FAITH, DILIGENT EFFORTS.

15

EXHIBIT “I”

Assignment of Partnership Interests – Joint Venture Entity

TO BE AGREED UPON BY THE PARTIES PRIOR TO CLOSING USING GOOD FAITH, DILIGENT EFFORTS.

16

EXHIBIT “J”

Assignment of Partnership Interests – Tenants

TO BE AGREED UPON BY THE PARTIES PRIOR TO CLOSING USING GOOD FAITH, DILIGENT EFFORTS.

17

EXHIBIT “K”

Form of Bill of Sale

TO BE AGREED UPON BY THE PARTIES PRIOR TO CLOSING USING GOOD FAITH, DILIGENT EFFORTS.

18

EXHIBIT “L”

Form of Closing Certificate

TO BE AGREED UPON BY THE PARTIES PRIOR TO CLOSING USING GOOD FAITH, DILIGENT EFFORTS.

19

EXHIBIT “M”

Form of Development Agreement

20

EXHIBIT “N”

Interim Beverage Facilities Management Agreement

TO BE AGREED UPON BY THE PARTIES PRIOR TO CLOSING USING GOOD FAITH, DILIGENT EFFORTS.

 

21

EXHIBIT “O”

Intentionally Omitted

22

EXHIBIT “P”

Intentionally Omitted

23

EXHIBIT “Q”

Intentionally Omitted

24

EXHIBIT “R”

Schedule of Operating Agreements

25

EXHIBIT “S”

Exclusions from Personal Property

26

EXHIBIT “T”

Schedule of Rental Management Agreements

Condo Owners with Executed Rental Management Agreements

Acker, Brad (4426)

Acker, Nicole (1129)

Acker, Scott G. & Amy B. (3306)

Altpeter, Timothy L. & Teri L. (4437)

Arado, William N. & Mary Anne (2233)

Baek, Michael G. (4420)

Bender, Brenda & James/Acker, Don & Mary Jo (1145)

Benz, Fred & Patricia (3326)

Benz, Fred & Patricia (4413)

Bernecker, Bruno (3307)

Bernecker, David & Tamara (1113)

Bernecker, Richard (3331)

Blair Investment Corp (Scott Blair) (1137)

Blair Investment Corp (3337) Paul Edwin?

Block, Neil D. & Dorothy L. (2235)

BLT Properties, LLC (Vesper/Rademaker/Noeske) (2204)

Blue Moose Properties, LLC (Danhours) (4432)

Boland, Michael J. & Joanne K. (2215)

Bowerman, Mark & Nancy/Rosko, Rich (3343)

Braxton, Jeff & Cathy (2220)

Braxton, Robert E. & Carole D. (3332)

Brendan Wolf, LLC (Schaller) (2226)

Butler, Susan & Chris (2207)

Butler, Susan & Chris (4443)

Caswick, Scott & Kristi/McGover, Jason & Katie (1147)

Cerri, Christine & Donald/Scholler Carol & Jeffery (2219)

ChaChing, LLC et al (Borcherding) (2237)

Clancy, Andrew/Becker, John & Michelle/Birt, Joseph & Ann Clancy-Birt (3319)

Clancy, Kevin & Anne Marie (1101)

Coulter, Michael/Johnson, Kenneth/Ithal, Dennis/ Houie, Geraldine (2201)

Cristiano, Joe & Carrie/Volpentesta, Mike & Teresa (1102)

DeNoble, Jason (3301)

Downes, John B. & Mary J. (3327)

Duggal, Arpana (2238)

Edwards, Anthony (3340)

Fugate, Diana/Belanger, DeLonda (2236)

Gray, Kathleen & James (3316)

Haines, Kenneth & Mary E. (2225)

Hermsen, Pat & Patricia (2217)

Herron, The Dennis A. & Diane T. Rev. Dec. of Trust (1119)

IBR Properties, LLC (Rumore) (1120)

Khazen, Joseph/Wizorek, Roxanna (1107)

Kirb Investments, LLC (Kirby) (3308)

Kirk, William E. & Elizabeth M. Revocable Trust (1132)

Knutson, Brian & Caralynn (1114)

Lalor, Donne & Beth (2208)

Lenartz, Marc & Cathy/Weber, Chad & Kelley/James Lenartz (3304)

Leyden, Patrick & Erin/Thomas & Tracy Leyden/William & Diana Leyden (1131)

Limentato, Sam A. & Cynthia J. (1130)

Madrich Properties, LLC (Haupt) (3342)

McClure, Michael & Christine (1128)

McHugh, Joseph M. & Margaret R. (1138)

MJ Martin Family Investment LP (2234)

Pal Properties, LLC (Paulinski) (1127)

Parnell, Armar J. Jr. & Tera T. (4444)

Pass on the Riches, LLC (Dittrich) (2245)

Remer, Brian & Colleen (1148)

Ripley, Rodney (4425)

Rosko, Richard & Karen (2214)

Schlicht, Michael J. & Anneke (4407)

Schlicht, Michael J. & Anneke (4414)

Schlict, Michael J. & Anneke (4408)

Schmitz, Tim R. & Elizabeth J. (1108)

Schulz, Ed & Christine (1146)

Schwarz, John and/or Assigns (4401)

Schwarz, John and/or Assigns (4402)

Schwarz, John and/or Assigns (4419)

Schwarz, John and/or Assigns (4431)

Sesso, Ralph & Carol (2247)

Sliva, Kevin & Melissa (3329)

SMS Ventures, LLC (Steinbis) (3318)

Smuda, Wayne (2244)

T.S. Wolf, LLC (Hanson) (3313)

Walton, John R. (3344)

Witt, Ted & Cindy (2206)

Zell, Chuck & Linda (3320)

Zeman, Brad & Brian(4438)

27

EXHIBIT “U”

Condominium Project Land

SEE ATTACHED.

28

EXHIBIT “V”

Tall Pines Acknowledgment Enforcement Agreement

29

EXHIBIT “W”

Schedule of Unresolved Due Diligence Items

1. There shall be in place such alcoholic beverage licenses, or other arrangements acceptable
to CNL in its reasonable discretion (including those contemplated by Section 14 hereof), at each of
the Contributed Hotels as required by law to allow the continued sale of alcohol and otherwise
allow the continued use of such alcoholic beverage facilities currently operated at the Contributed
Hotels in the manner currently operated. Notwithstanding the foregoing, this condition shall not
be satisfied in the event that CNL determines, in its reasonable opinion, that a permanent liquor
license will not be available with respect to either of the Contributed Hotels within one hundred
eighty (180) days after Closing.

2. Wolf shall have provided CNL with evidence satisfactory to CNL, applying standards
acceptable to an institutional lender, that all parking requirements for the Dells Hotel have been
satisfied in accordance with applicable zoning requirements.

3. Wolf shall have escrowed such amounts as CNL reasonably deems necessary to ensure payment
of all sales and room taxes relating to the Contributed Hotels and relating to the period
commencing on the date through which Wolf has provided evidence of payment of such taxes and ending
on the Closing Date.

4. Wolf shall have provided CNL with evidence reasonably satisfactory to CNL that all matters
set forth in the development agreement relating to the development of the Dells Attraction Addition
entered into by or on behalf of Wolf or any of Wolf’s Affiliates and the applicable governmental
entity have been addressed so as to evidence to CNL’s reasonable satisfaction that the development
agreement has been or will be completed timely, including such further assurances and indemnities
as CNL may reasonably require.

5. There shall be no material adverse change in the physical condition of the Property between
the period from date of this Agreement to the Closing Date.

6. The parties hereto shall, through the use of good-faith, diligent efforts, have agreed upon
the form of the Management Agreements, the License Agreements and other documents to be entered
into as of Closing pursuant to this Agreement.

7. The parties hereto shall, through the use of good-faith, diligent efforts, have agreed upon
the form of the organizational documents for all entities contemplated by, or required to be
created to effectuate the transactions contemplated by, this Agreement.

8. The parties hereto shall, through the use of good-faith, diligent efforts, have agreed upon
the form of the indemnity agreement pursuant to which Wolf shall indemnify, insure, pay, save,
defend and hold CNL and the Partnership harmless from and against any loss, cost, damages or
expenses incurred by CNL or the Partnership as a result of succeeding to Wolf’s rights as declarant
under the Condominium Documents.

9. The parties hereto shall, through the use of good-faith, diligent efforts, have agreed upon
the form of any and all affidavits required to be executed by any party hereto or Affiliate thereof
in connection with the issuance of any title insurance endorsement reasonably requested by CNL.

10. Wolf shall have obtained in writing and delivered to CNL the consent to the Collateral
Assignment of each of the parties that is a party to a contract to be assigned thereunder.

11. Wolf shall have obtained and delivered to CNL a current, valid fire inspection report from
the applicable governmental authority for the Dells Hotel that does not reveal or indicate material
violations of applicable laws or deficiencies at the Dells Hotel, or shall have provided CNL
evidence reasonably satisfactory to CNL that the lack of such report is not material and such
further assurances and indemnities as CNL may reasonably require.

12. Wolf shall provide CNL with a copy of the Spring Miller Software License agreement
referenced on the Schedule of Operating Agreements, and CNL shall be satisfied that, in CNL’s
reasonable opinion, such agreement does not have a material, adverse impact on that portion of the
Property to which it relates and/or that all licensing fees that may relate to the Contributed
Hotels contemplated thereby have been paid.

13. CNL shall be satisfied in CNL’s reasonable opinion, that any material Operating Agreement
relating to the Contributed Hotels but not set forth on the Schedule of Operating Agreements does
not have a material, adverse impact on that portion of the Property to which it relates.

14. Wolf shall provide CNL with a statement of all bank accounts held by Wolf in connection
with any reserve accounts held by or on behalf of Wolf and relating to the Great Wolf Lodge
Condominium.

30

EXHIBIT “X”

Dells Construction Documents

1. Abbreviated Standard Form of Agreement between Owner and Architect (B151) dated as of May
25, 2005 between Great Wolf Resorts, Inc. and Architectural Design Consultants, Inc., as amended by
Amendment to the Professional Services Agreement (G606) dated as of August 4, 2005 and by letter
agreement dated as of August 9, 2005.

2. Standard form of Agreement between Owner and Contractor (A101) dated as of June 24, 2005
between Great Bear Lodge of Wisconsin Dells, LLC and Kraemer Brothers, LLC

3. Standard Form of Agreement between Owner and Design/Builder (A191) dated as of July 6, 2005
between Great Wolf Lodge of Wisconsin Dells, LLC and Neuman Pools, Inc.

4. Standard Form of Agreement between Owner and Design-Builder (A141) dated as of September
26, 2005 between The Great Lakes Companies, Inc. (to whose interest Great Lakes Services, LLC
succeeded to by merger) and Weber Group Inc.

5. Great Wolf Lodge Childrens Activity Pool Interactive Wetscape Purchase Agreement dated as
of May 27, 2005 between Great Bear Lodge of Wisconsin Dells, LLC and Funtraptions, Inc.

6. Commercial Insurance Policy issued by Travelers Property Casualty Company of America (issue
date 8/16/05)

31

EXHIBIT “Y”

Tall Pines Agreement

32EX-10.01

EXHIBIT 10.01

PURCHASE AND SALE AGREEMENT

AND ESCROW INSTRUCTIONS

BY AND BETWEEN

PS BUSINESS PARKS, L.P.,

a California limited partnership

(“Seller”)

and

Triple Net Properties, LLC,

a Virginia limited liability company

(“Buyer”)

Dated effective as of July 1, 2005

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE I. PURCHASE AND SALE
	 	 
	 
	 	 	 	 
	Section 1.1

	 	Agreement of Purchase and Sale.
	 	

	 
	 	 	 	 
	Section 1.2

	 	Property Defined.
	 	

	 
	 	 	 	 
	Section 1.3

	 	Purchase Price.
	 	

	 
	 	 	 	 
	Section 1.4

	 	Payment of Purchase Price.
	 	

	 
	 	 	 	 
	Section 1.5

	 	Opening of Escrow; Deposit.
	 	

	 
	 	 	 	 
	Section 1.6

	 	Non-Refundable Deposit as Liquidated Damages.
	 	

	 
	 	 	 	 
	Section 1.7

	 	Escrow Holder.
	 	

	 
	 	 	 	 
	ARTICLE II. TITLE AND SURVEYEY
	 	 
	 
	 	 	 	 
	Section 2.1

	 	Intentionally Omitted.
	 	

	 
	 	 	 	 
	Section 2.2

	 	Title Examination.
	 	

	 
	 	 	 	 
	Section 2.3

	 	Permitted Exceptions.
	 	

	 
	 	 	 	 
	Section 2.4

	 	Conveyance of Title.
	 	

	 
	 	 	 	 
	ARTICLE III. CONDITION OF PROPERTY
	 	 
	 
	 	 	 	 
	Section 3.1

	 	Buyer Inspection.
	 	

	 
	 	 	 	 
	Section 3.2

	 	Environmental Reports.
	 	

	 
	 	 	 	 
	Section 3.3

	 	Intentionally Omitted.
	 	

	 
	 	 	 	 
	Section 3.4

	 	No Financing Contingency.
	 	

	 
	 	 	 	 
	Section 3.5

	 	Review of Tenant Estoppel Certificate.
	 	

	 
	 	 	 	 
	Section 3.6

	 	Rights Upon Termination.
	 	

	 
	 	 	 	 
	ARTICLE IV. CLOSING
	 	 
	 
	 	 	 	 
	Section 4.1

	 	Time and Place.
	 	

	 
	 	 	 	 
	Section 4.2

	 	Seller’s Obligations at Closing.
	 	

	 
	 	 	 	 
	Section 4.3

	 	Buyer’s Obligations at Closing.
	 	

	 
	 	 	 	 
	Section 4.4

	 	Escrow Holder’s Obligations at Closing.
	 	

	 
	 	 	 	 
	Section 4.5

	 	Credits and Prorations.
	 	

	 
	 	 	 	 
	Section 4.6

	 	Transaction Taxes and Closing Costs.
	 	

	 
	 	 	 	 
	Section 4.7

	 	Conditions Precedent to Obligation of Buyer.
	 	

	 
	 	 	 	 
	Section 4.8

	 	Conditions Precedent to Obligation of Seller.
	 	

	 
	 	 	 	 
	Section 4.9

	 	Related Agreement.
	 	

	 
	 	 	 	 
	ARTICLE V. REPRESENTATIONS, WARRANTIES AND COVENANTS
	 	 
	 
	 	 	 	 
	Section 5.1

	 	Representations and Warranties of Seller.
	 	

	 
	 	 	 	 
	Section 5.2

	 	Survival of Seller’s Representations and Warranties.
	 	

	 
	 	 	 	 
	Section 5.3

	 	Covenants of Seller.
	 	

	 
	 	 	 	 
	Section 5.4

	 	Representations and Warranties of Buyer.
	 	

	 
	 	 	 	 
	Section 5.5

	 	Survival of Buyer’s Representations and Warranties.
	 	

	 
	 	 	 	 
	Section 5.6

	 	Covenant of Buyer.
	 	

	 
	 	 	 	 
	ARTICLE VI. DEFAULT
	 	 
	 
	 	 	 	 
	Section 6.1

	 	Default by Buyer.
	 	

	 
	 	 	 	 
	Section 6.2

	 	Default by Seller.
	 	

	 
	 	 	 	 
	Section 6.3

	 	Recoverable Damages.
	 	

	 
	 	 	 	 
	ARTICLE VII. RISK OF LOSS
	 	 
	 
	 	 	 	 
	Section 7.1

	 	Minor Damage.
	 	

	 
	 	 	 	 
	Section 7.2

	 	Major Damage.
	 	

	 
	 	 	 	 
	Section 7.3

	 	Definition of “Major” Loss or Damage.
	 	

	 	 	 
	ARTICLE VIII. COMMISSIONS

	 
	 	 
	Section 8.1

	 	Brokerage Commissions.
	 
	 	 
	ARTICLE IX. DISCLAIMERS AND WAIVERS

	 
	 	 
	Section 9.1

	 	AS IS SALE; DISCLAIMERS.
	 
	 	 
	Section 9.2

	 	Survival of Disclaimers.
	 
	 	 
	ARTICLE X. MISCELLANEOUS

	 
	 	 
	Section 10.1

	 	Confidentiality.
	 
	 	 
	Section 10.2

	 	Public Disclosure.
	 
	 	 
	Section 10.3

	 	Assignment.
	 
	 	 
	Section 10.4

	 	Notices.
	 
	 	 
	Section 10.5

	 	Modifications.
	 
	 	 
	Section 10.6

	 	Entire Agreement.
	 
	 	 
	Section 10.7

	 	Further Assurances.
	 
	 	 
	Section 10.8

	 	Counterparts.
	 
	 	 
	Section 10.9

	 	Facsimile Signatures.
	 
	 	 
	Section 10.10

	 	Severability.
	 
	 	 
	Section 10.11

	 	Applicable Law.
	 
	 	 
	Section 10.12

	 	No Third-Party Beneficiary.
	 
	 	 
	Section 10.13

	 	Captions.
	 
	 	 
	Section 10.14

	 	Construction.
	 
	 	 
	Section 10.15

	 	Recordation.
	 
	 	 
	Section 10.16

	 	Attorneys’ Fees.
	 
	 	 
	Section 10.17

	 	Time of the Essence.
	 
	 	 
	Section 10.18

	 	Joint and Several Liability
	 
	 	 
	Section 10.19

	 	STATUTORY DISCLAIMER.

EXHIBITS

	 	 	 	 	 
	A

	 	-
	 	PROPERTY ADDRESSES
	 
	 	 	 	 
	B

	 	-
	 	LEGAL DESCRIPTION OF LAND
	 
	 	 	 	 
	C

	 	-
	 	INTENTIONALLY OMITTED
	 
	 	 	 	 
	D

	 	-
	 	ESCROW HOLDER’S GENERAL PROVISIONS
	 
	 	 	 	 
	E

	 	-
	 	LIST OF PROPERTY DOCUMENTS (INCLUDING ENVIRONMENTAL REPORTS)
	 
	 	 	 	 
	F

	 	-
	 	FORM OF TENANT ESTOPPEL
	 
	 	 	 	 
	G

	 	-
	 	FORM OF DEED
	 
	 	 	 	 
	H

	 	-
	 	FORM OF BILL OF SALE
	 
	 	 	 	 
	I

	 	-
	 	FORM OF ASSIGNMENT AND ASSUMPTION OF LEASES
	 
	 	 	 	 
	J

	 	-
	 	FORM OF ASSIGNMENT AND ASSUMPTION OF CONTRACTS AND INTANGIBLES
	 
	 	 	 	 
	K

	 	-
	 	FORM OF TENANT NOTICE
	 
	 	 	 	 
	L

	 	-
	 	FORM OF FIRPTA CERTFICATE

SCHEDULES

	 	 	 	 	 
	5.1(e)

	 	-
	 	LIST OF LEASES AS OF EFFECTIVE DATE

PURCHASE AND SALE AGREEMENT

AND ESCROW INSTRUCTIONS

THIS PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS (this “Agreement”) is made effective
as of July 1, 2005 (the “Effective Date’”), by and between PS BUSINESS PARKS, L.P., a California
limited partnership (“Seller”), and Triple Net Properties, LLC, a Virginia limited liability
company (“Buyer”).

ARTICLE I.

PURCHASE AND SALE

Section 1.1 Agreement of Purchase and Sale

Subject to the terms and conditions hereinafter set forth, Seller agrees to sell and convey to
Buyer, and Buyer agrees to purchase from Seller, the following:

(a) those certain tracts or parcels of land situated in the City of Beaverton, County of
Washington, Oregon, located at the address set forth in Exhibit A attached hereto and made a part
hereof and within the project commonly known as Woodside Corporate Park, all as more particularly
described in Exhibit B attached hereto and made a part hereof, together with all rights and
appurtenances pertaining to such property, including any right, title and interest of Seller in and
to adjacent streets, alleys or rights-of-way (the property described in clause (a) of this Section
1.1 being herein referred to collectively as the “Land”);

(b) the commercial buildings located on the Land and any and all other buildings, structures,
fixtures and other improvements affixed to or located on the Land, excluding fixtures owned by
tenants (the property described in clause (b) of this Section 1.1 being herein referred to
collectively as the “Improvements”);

(c) any and all of Seller’s right, title and interest in and to all tangible personal property
located upon the Land or within the Improvements, including, without limitation, any and all
appliances, furniture, carpeting, draperies and curtains, tools and supplies, and other items of
personal property owned by Seller, located on and used exclusively in connection with the operation
of the Land and the Improvements (the property described in clause (c) of this Section 1.1 being
herein referred to collectively as the “Personal Property”);

(d) to the extent they are in effect on the date of the Closing (as such term is defined in
Section 4.1 hereof), any and all of Seller’s right, title and interest in and to the leases,
licenses, and occupancy agreements, including all amendments or modifications thereto or
supplements thereof, covering all or any portion of the Real Property (as such term is defined in
Section 1.2 hereof) (the property described in clause (d) of this Section 1.1 being referred to
collectively as the “Leases”), together with all rents and other sums due thereunder (the “Rents”)
and any and all unapplied cash security deposits, letters of credit and other credit enhancements
in Seller’s possession in connection therewith (the “Security Deposits”), and

(e) any and all of Seller’s right, title and interest in and to (i) all assignable contracts
and agreements (collectively, the “Operating Agreements”) relating to the upkeep, repair,
maintenance or operation of the Land, Improvements or Personal Property, (ii) all assignable
existing warranties and guaranties (express or implied) issued to Seller in connection with the
Improvements or the Personal Property, and (iii) all assignable existing permits, licenses,
approvals and authorizations issued by any governmental authority in connection with the Property
(the property described in clause (e) of this Section 1.1 being sometimes herein referred to
collectively as the “Intangibles”).

Section 1.2 Property Defined

The Land and the Improvements are hereinafter sometimes referred to collectively as the “Real
Property.” The Real Property, the Personal Property, the Leases and the Intangibles are hereinafter
sometimes referred to collectively as the “Property.”

Section 1.3 Purchase Price

Seller is to sell and Buyer is to purchase the Property for the amount of Twenty-Three Million
Six Hundred Thousand and No/100 Dollars ($23,600,000) (the “Purchase Price”).

Section 1.4 Payment of Purchase Price

The Purchase Price, as increased or decreased by prorations and adjustments as herein
provided, shall be payable in full at the Closing in cash by wire transfer of immediately available
funds to a bank account designated by Seller in writing to Buyer prior to the Closing. On or before
10:30 AM Pacific Time on the Closing Date, Buyer shall deposit into Escrow (as defined in Section
1.5 below), in cash or other immediately available funds, the full amount of the Purchase Price,
less the Deposit previously deposited by Buyer into Escrow; provided that said Deposit shall only
be applicable to the Purchase Price under the later to Close of this Agreement or the Related
Agreement, but not both.

Section 1.5 Opening of Escrow: Deposit

Within two (2) business days after the execution and delivery of this Agreement, Buyer shall
deposit with Chicago Title Insurance Company (the “Escrow Holder” and/or the “Title Company”),
having its office at 560 E. Hospitality Lane, San Bernardino, Ca. 92408, Attn: Kandy Knotts, a
fully executed original or original counterpart(s) of this Agreement and the sum of Two Million and
No/100 Dollars ($2,000,000) (the “First Deposit”) in good funds either by certified bank or
cashier’s check or by federal wire transfer. Buyer shall deposit with the Escrow Holder the sum of
Three Million and No/100 Dollars ($3,000,000) (the “Second Deposit”) in good funds either by
certified bank or cashier’s check or by federal wire transfer not later than fifteen (15) days
after the Effective Date. In the event Buyer does not timely make such Second Deposit, time being
of the essence, this Agreement shall terminate and Seller shall be entitled, as its sole remedy, to
retain the First Deposit and neither party shall have any further obligations to the other
hereunder, except for those provisions which survive the termination of the Agreement. The First
Deposit and the Second Deposit, together with any interest thereon as provided herein, shall
hereinafter be referred to collectively as the “Deposit.” “Opening of Escrow” shall be the date
upon which a fully executed copy of this Agreement and the First Deposit have been delivered to the
Escrow Holder. The Escrow Holder shall give Buyer and Seller and their respective counsels written
notice of the date of Opening of Escrow. Escrow Holder shall hold the Deposit in an
interest-bearing account of a federally insured bank or savings and loan association reasonably
acceptable to Buyer and Seller, and shall otherwise handle the Deposit in accordance with the
terms, and conditions of this Agreement. All interest accrued on the Deposit shall be added to and
become part of the Deposit. The entire Deposit together with all interest accrued thereon shall be
credited to the Purchase Price upon the close of Escrow. Buyer shall be responsible for the payment
of all costs and fees imposed on the Deposit account other than Escrow Holder’s fees which shall be
paid equally by Buyer and Seller (except as otherwise expressly provided herein). The failure of
Buyer to timely deliver any portion of the Deposit hereunder shall be a material default, and if
such default is not cured within one (1) business day after Buyer’s receipt of written notice from
Seller, then such default shall entitle Seller, at Seller’s sole option, to terminate this
Agreement immediately. Except as otherwise specifically provided in this Agreement, the Deposit
(including the accrued interest) thereon shall be non-refundable. The parties agree that the
Deposit shall serve as the Deposit under both this Agreement and the Related Agreement (as defined
below), and that the entire Deposit shall not be applied to the Purchase Price or returned to
Buyer, until the Closing or termination of the later of this Agreement and the Related Agreement,
and in each case in accordance with the terms of this Agreement or the Related Agreement, as
applicable.

Section 1.6 Non-Refundable Deposit as Liquidated Damages

IN THE EVENT THE SALE OF THE PROPERTY AS CONTEMPLATED HEREUNDER IS NOT CONSUMMATED FOR ANY
REASON OTHER THAN AS EXPRESSLY PROVIDED IN THIS AGREEMENT, THE DEPOSIT (INCLUDING ALL INTEREST
EARNED FROM THE INVESTMENT THEREOF) SHALL BE RETAINED BY SELLER AS LIQUIDATED DAMAGES. SELLER’S
ACTUAL DAMAGES AND LOST OPPORTUNITY COSTS IN THE EVENT THE SALE IS NOT CONSUMMATED ARE EXTREMELY
DIFFICULT OR IMPRACTICABLE TO DETERMINE AT THE EFFECTIVE DATE. THEREFORE, BY SEPARATELY EXECUTING
THIS SECTION 1.6 BELOW, THE PARTIES ACKNOWLEDGE THAT THE AMOUNT OF THE DEPOSIT HAS BEEN AGREED
UPON, AFTER NEGOTIATION, AS THE PARTIES’ REASONABLE ESTIMATE OF SELLER’S DAMAGES AND LOST
OPPORTUNITY COSTS AND AS CONSIDERATION FOR SELLER’S AGREEMENT TO EXECUTE AND DELIVER THIS AGREEMENT
WITH BUYER AND NOT A PENALTY, AND SHALL BE SELLER’S SOLE AND EXCLUSIVE RIGHT ARISING FROM BUYER’S
FAILURE TO CLOSE. NOTWITHSTANDING THE FOREGOING, IN NO EVENT SHALL THIS SECTION 1.6 LIMIT THE
DAMAGES RECOVERABLE BY EITHER PARTY AGAINST THE OTHER PARTY DUE TO THE OTHER PARTY’S OBLIGATION TO
INDEMNIFY SUCH PARTY IN ACCORDANCE WITH THIS AGREEMENT OR BY REASON OF THE OTHER PARTY’S OBLIGATION
TO PAY THE PREVAILING PARTY’S ATTORNEYS’ FEES AND COSTS PURSUANT TO SECTION 10.16 HEREOF. BY THEIR
SEPARATELY EXECUTING THIS SECTION 1.6. BELOW, BUYER AND SELLER ACKNOWLEDGE THAT THEY HAVE READ AND
UNDERSTOOD THE ABOVE PROVISION COVERING LIQUIDATED DAMAGES, AND THAT EACH PARTY WAS REPRESENTED BY
COUNSEL WHO EXPLAINED THE CONSEQUENCES AT THE TIME THIS AGREEMENT WAS EXECUTED. IN THE EVENT THAT
FOR ANY REASON THE CLOSING OCCURS UNDER THE RELATED AGREEMENT BUT NOT UNDER THIS AGREEMENT, THE
DEPOSIT (INCLUDING ALL INTEREST EARNED FROM THE INVESTMENT THEREOF) SHALL BE RETAINED BY SELLER AS
LIQUIDATED DAMAGES.

	 	 	 
	PS BUSINESS PARKS, L.P., a California

	 	TRIPLE NET PROPERTIES, LLC, a Virginia
	 
	 	 
	limited partnership

	 	limited liability company
	 
	 	 
	By: /S/ EDWARD STOKX

	 	By /S/ LOUIS ROGERS
	 

	 	 
	Name: EDWARD STOKX

	 	Name: LOUIS ROGERS
	Title: CFO

	 	Title: PRESIDENT

Section 1.7 Escrow Holder

Escrow Holder shall hold and dispose of the Deposit in accordance with the terms of this
Agreement. Escrow Holder shall incur no liability in connection with the safekeeping or disposition
of the Deposit for any reason other than Escrow Holder’s breach of contract, willful misconduct or
negligence. If Escrow Holder is in doubt as to its duties or obligations with regard to the
Deposit, or if Escrow Holder receives conflicting instructions from Buyer and Seller with respect
to the Deposit, Escrow Holder shall not be required to disburse the Deposit and may, at its option,
continue to hold the Deposit until both Buyer and Seller agree as to its disposition, or until a
final judgment is entered by a court of competent jurisdiction directing its disposition, or Escrow
Holder may interplead the Deposit in accordance with the laws of the state in which the Property is
located. Escrow Holder shall not be responsible for any interest on the Deposit except as is
actually earned, or for the loss of any interest resulting from the withdrawal of the Deposit prior
to the date interest is posted thereon. Escrow Holder’s General Provisions are attached hereto as
Exhibit D and made a part hereof. In the event of any conflict between the terms and provisions of
this Agreement and Escrow Holder’s General Provisions, the terms and provisions of this Agreement
shall control.

ARTICLE II.

TITLE AND SURVEY

	 	 	 
	Section 2.1

	 	Intentionally Omitted.
	 
	 	 
	Section 2.2

	 	Title Examination

Prior to the Effective Date, Buyer has had an opportunity to review and investigate any and
all conditions and aspects of title to the Property. Any exception to title to which the Property
is subject as of the Effective Date shall be deemed conclusively to have been approved by Buyer;
provided that Seller covenants to cure all monetary encumbrances at or prior to Closing (except
those created by Buyer). The procurement by Seller of a commitment for the issuance of the Title
Policy (as defined below) or an endorsement thereto satisfactory to Buyer and insuring Buyer
against any title exception which Seller is obligated to cure shall be deemed a cure by Seller.

Section 2.3 Permitted Exceptions

The Property shall be conveyed subject to the following matters, which are hereinafter
referred to as the “Permitted Exceptions”:

(a) those exceptions to title to which the Property is subject as of the Effective Date in
accordance with Section 2.2 hereof;

(b) the rights of tenants under the Leases;

(c) the lien of all ad valorem real estate taxes and assessments not yet due and payable as of
the date of Closing, subject to proration as herein provided;

(d) local, state and federal laws, ordinances or governmental regulations, including but not
limited to building and zoning laws, ordinances and regulations, now or hereafter in effect
relating to the Property; and

(e) those matters which would be disclosed by an accurate survey or inspection of the
Property.

The term “Permitted Exceptions” specifically excludes material matters of title which are not of
record on the title as of the Effective Date.

Section 2.4 Conveyance of Title

At Closing, Seller shall convey and transfer to Buyer fee simple title to the Real Property by
execution and delivery of the Deed (as defined in Section 4.2(a) hereof). Evidence of delivery of
such title shall be the issuance by the Title Company of a current ALTA Standard Coverage Owner’s
Policy of Title Insurance (the “Title Policy”) covering the Real Property, in the full amount of
the Purchase Price, showing fee title to the Property vested exclusively in Buyer, subject only to
the Permitted Exceptions. If prior to the Closing, Buyer shall deliver to the Title Company a new
or updated survey(s) of the Real Property meeting the minimum standards of the Title Company for
issuance of an ALTA Extended Owner’s Policy of Title Insurance, then Buyer shall be entitled to
obtain an ALTA Extended Coverage Owner’s Policy of Title Insurance in lieu of a ALTA Standard
Coverage Owner’s Policy so long as the Closing is not thereby delayed. Buyer shall pay the
additional premium for such policy and the cost of any required or requested surveys.

ARTICLE III.

CONDITION OF PROPERTY

Section 3.1 Buyer Inspection

(a) During the period from the Effective Date and ending at 5:00 p.m. (local time at the
Property) on the date which is fifteen (15) days after the Effective Date, Buyer shall have the
right (a) to review and investigate any and all conditions and aspects of the Property in its sole
discretion (except as expressly provided below and except for title and survey matters, which shall
be governed by Article II hereof), including without limitation, those items listed in Exhibit E
attached hereto (the “Property Documents”), and (b) at Buyer’s sole cost and expense, to make
physical inspections of the Real Property, including, but not limited to, an inspection of the
environmental condition thereof pursuant to the terms and conditions of this Agreement, to examine
at the Property documents and files located at the Property concerning the leasing, maintenance and
operation of the Property, but excluding Seller’s partnership or corporate records, and similar
proprietary, confidential or privileged information (collectively, the “Confidential Documents”).
If required by law, Seller has provided a Natural Hazards Disclosure Report or similar disclosure
report prior to the Effective Date.

(b) Any on-site inspections of the Property shall occur only (i) at reasonable times during
normal business hours agreed upon by Seller and Buyer after at least one (1) business day’s prior
written notice to Seller; (ii) in a manner that will not unreasonably damage the Property,
unreasonably disturb or disrupt the business activities of Seller or unreasonably interfere with
the use of the Property by Seller or its tenants; and (iii) after delivery of evidence satisfactory
to Seller that commercial general liability insurance in an amount not less than $2,000,000.00 per
occurrence respecting such work has been obtained by Buyer naming as additional insureds Seller and
any other person or entity designated by Seller as having an insurable interest in the same. Seller
may have a representative present during any such inspections. If Buyer desires to do any invasive
testing at the Property, Buyer shall do so only after notifying Seller and obtaining Seller’s prior
written consent thereto, which consent may be given or withheld in the sole discretion of Seller
and may further be subject to any terms and conditions imposed by Seller in its sole discretion,
including, without limitation, the prompt restoration of the Property to substantially its
condition prior to any such inspections or tests, at Buyer’s sole cost and expense. Buyer shall
keep the Property free and clear of any liens arising out of Buyer’s entry onto or inspection of
the Property. At Seller’s option, Buyer will furnish to Seller copies of any reports received by
Buyer relating to any inspection of the Property, without representation or warranty of any kind
(express, implied or otherwise) as to the content and accuracy thereof, and at no charge to Seller
other than the costs of reproduction; provided that furnishing such materials would not constitute
a violation by Buyer of an agreement with any third party. Buyer agrees to protect, indemnify,
defend (with counsel satisfactory to Seller) and hold Seller harmless from and against any claim
for liabilities, losses, costs, expenses (including reasonable attorneys’ fees), damages or
injuries arising out of, or directly resulting from the inspection of the Property by Buyer or its
agents or consultants, and notwithstanding anything to the contrary in this Agreement, such
obligation to indemnify and hold harmless Seller shall survive Closing or any termination of this
Agreement.

(c) Buyer’s right of access to the Property shall also include the right during the period
from Effective Date through the date which is fifteen (15) days after the Effective Date to meet
and confer with tenants of the Property on the following terms and conditions:

(i) Buyer shall give Seller not less than two (2) business days prior notice of its desire to
meet with a certain tenant;

(ii) Seller shall arrange the meeting with such tenant;

(iii) Buyer shall not disclose to any tenant any of the terms or conditions which are set
forth in this Agreement;

(iv) Seller shall have the right to have a representative present at all times during each
meeting with a tenant; and

(v) Buyer shall not enter into any agreement with or make any commitment of any nature
whatsoever to any tenant that would in any way be binding upon Seller.

Section 3.2 Environmental Reports

BUYER ACKNOWLEDGES THAT (1) BUYER HAS RECEIVED COPIES OF THE ENVIRONMENTAL REPORTS LISTED ON
EXHIBIT E AS PART OF THE PROPERTY DOCUMENTS WITHOUT REPRESENTATION AND WARRANTY, AND (2) IF SELLER
DELIVERS ANY ADDITIONAL ENVIRONMENTAL REPORTS TO BUYER, BUYER WILL ACKNOWLEDGE IN WRITING THAT IT
HAS RECEIVED SUCH REPORTS PROMPTLY UPON RECEIPT THEREOF. SELLER SHALL HAVE NO LIABILITY OR
OBLIGATION WHATSOEVER FOR ANY INACCURACY IN OR OMISSION FROM ANY ENVIRONMENTAL REPORT. BUYER SHALL
HAVE NO CLAIMS AGAINST THE PREPARER OF ANY ENVIRONMENTAL REPORT PROVIDED BY SELLER. BUYER HAS
CONDUCTED ITS OWN INVESTIGATION OF THE ENVIRONMENTAL CONDITION OF THE PROPERTY TO THE EXTENT BUYER
DEEMS SUCH AN INVESTIGATION TO BE NECESSARY OR APPROPRIATE.

	 	 	 
	Section 3.3

	 	Intentionally Omitted.
	 
	 	 
	Section 3.4

	 	No Financing Contingency

It is expressly agreed that there shall not be any conditions making Buyer’s obligations under
this Agreement contingent upon the obtaining of any financing by Buyer, and the Purchase Price
shall be on an “ALL CASH” basis in accordance with Section 1.4 of this Agreement.

Section 3.5 Review of Tenant Estoppel Certificate

Seller shall have a one time obligation to deliver to each tenant under a Lease an estoppel
certificate in substantially one of the forms attached hereto as Exhibit F (or a substantially
similar form) with such reasonable modifications as Buyer’s lender may require or in the form
required to be executed by a tenant under its Lease (the “Tenant Estoppels”) and shall request that
the tenants complete and sign the Tenant Estoppels and return them to Seller. Seller shall use
reasonable efforts to prepare and deliver to Buyer a Tenant Estoppel completed for each tenant
under a Lease of the Property in effect as of such date for Buyer’s review and approval, which
approval shall not be unreasonably withheld, prior to delivery of such Tenant Estoppel to the
applicable signatories. If Buyer does not object in writing to Seller to a proposed Tenant Estoppel
within five (5) business days after receipt of the same, then such Tenant Estoppel shall be deemed
approved for delivery to the tenant. Once approved or deemed approved for delivery to the tenants
as provided herein, Seller deliver such completed Tenant Estoppels to the tenants for signature.
Upon delivery of the completed Tenant Estoppels to the tenants, Seller shall request that each
tenant sign the Tenant Estoppels and return them to Seller within ten (10) days after such tenant’s
receipt of the same. Seller shall use reasonable efforts to obtain an executed Tenant Estoppel from
each of the tenants at the Property within twenty (20) days after delivery of such Tenant Estoppels
to the tenants. Seller shall deliver copies of the completed Tenant Estoppels to Buyer as and when
Seller receives them.

Section 3.6 Rights Upon Termination

If this Agreement is terminated by Seller in the manner and within the applicable time period
provided pursuant to Sections 4.8 or 6.1, then (i) the Deposit plus all accrued interest thereon
shall be delivered to Seller as provided in Section 1.6, (ii) all instruments in Escrow shall be
returned to the party depositing the same, (iii) Buyer shall return all items previously delivered
by Seller to Buyer, and at the request of Seller, copies of any reports, surveys or other studies
or investigations prepared or received by Buyer relating to the Property, provided, however, that
Buyer shall only be obligated to deliver third party reports to the extent it is permitted to do so
without violating agreements with third parties, (iv) Buyer and Seller shall each pay one-half
(1/2) of all Escrow and title cancellation charges, and (v) neither party shall have any further
rights, obligations or liabilities whatsoever to the other party concerning the Property by reason
of this Agreement, except for any indemnity obligations of either party pursuant to the provisions
of this Agreement or otherwise expressly stated in this Agreement to survive termination. If this
Agreement is terminated by Buyer pursuant to Sections 4.7,6.2 or 7.2, then the above procedure
shall be followed except that Deposit plus all accrued interest thereon shall be delivered to
Buyer, except that in the event Buyer elects to pursue the remedy of specific performance, the
Deposit shall remain with Escrow Holder.

ARTICLE IV.

CLOSING

Section 4.1 Time and Place

The consummation of the transaction contemplated hereby (the “Closing”) shall be consummated
on that date which is forty-five (45) days following the Effective Date, or such sooner date as the
parties may mutually agree; provided, however, if such day is not a business day, then the Closing
shall occur on the next following business day (the “Closing Date”). The term “Closing” is used in
this Agreement to mean the time and date the transactions hereby are closed and the Title Policy is
issued, regardless of whether the Deed is actually recorded in the land records in which the
Property is situated.

Notwithstanding the foregoing, either party may, in its sole discretion, extend the Closing
Date for a period of up to thirty (30) days upon notice to the other party hereto. In the event
either party so extends the Closing Date, either party may further extend the Closing Date for a
period of up to thirty (30) days with the consent of the other party hereto, such consent not to be
unreasonably withheld.

The Closing shall be consummated through the Escrow administered by Escrow Holder. At the
Closing, Seller and Buyer shall perform the obligations set forth in, respectively, Section 4.2 and
Section 4.3 hereof, the performance of which obligations shall be covenants to the parties to
perform and shall be concurrent conditions.

Section 4.2 Seller’s Obligations at Closing

At, or prior to Closing, Seller shall (except as otherwise expressly provided below):

(a) deliver to Buyer through Escrow a duly executed and acknowledged grant, bargain and sale
deed in the form attached hereto as Exhibit G (the “Deed”);

(b) deliver to Buyer through Escrow a duly executed bill of sale in the form attached hereto
as Exhibit H (the “Bill of Sale”);

(c) assign to Buyer, and Buyer shall assume through Escrow the landlord/lessor interest in and
to the Leases, Rents, and Security Deposits, and any and all Leasing Commissions and Tenant
Inducement Costs, to the extent provided in Section 4.5(b)(v) hereof, by duly executed assignment
and assumption agreement (the “Assignment of Leases”) in the form attached hereto as Exhibit I;

(d) to the extent assignable, assign to Buyer, and Buyer shall assume, through Escrow Seller’s
interest in the Operating Agreements and the other intangibles by duly executed assignment and
assumption agreement (the “Assignment of Contracts”) in the form attached hereto as Exhibit J;

(e) within five (5) business days following the Closing, join with Buyer outside of Escrow to
execute notices in the form attached hereto as Exhibit K (the “Tenant Notices”), which Buyer shall
send to each tenant under each of the Leases promptly after the Closing, informing such tenant of
the sale of the Property and of the assignment to Buyer of Seller’s interest in, and obligations
under, the Leases (including, if applicable, any Security Deposits), and directing that all Rent
and other sums payable after the Closing under such Lease be paid as set forth in the notice;

(f) if any representation or warranty of Seller needs to be modified due to changes since the
Effective Date, deliver to Buyer through Escrow a certificate, dated as of the date of Closing and
executed on behalf of Seller by a duly authorized officer thereof, identifying any representation
or warranty which is not, or no longer is, true and correct and explaining the state of facts
giving rise to the change. In no event shall Seller be liable to Buyer for, or be deemed to be in
default hereunder by reason of, any breach of representation or warranty which results from any
change that (i) occurs between the Effective Date and the date of Closing, and (ii) is expressly
permitted under the terms of this Agreement or is beyond the reasonable control of Seller to
prevent. The occurrence of a change in a representation and warranty which shall, if materially
adverse to Buyer, constitute the non-fulfillment of the condition set forth in Section 4.7(b)
hereof. If, despite changes or other matters described in such certificate, the Closing occurs,
Seller’s representations and warranties set forth in this Agreement shall be deemed to have been
modified by all statements made in such certificate;

(g) deliver to the Title Company such evidence as the Title Company may reasonably require as
to the authority of the Person or persons executing documents on behalf of Seller;

(h) deliver to Buyer through Escrow a certificate in the form attached hereto as Exhibit L
duly executed by Seller;

(i) within one (1) business day following the Closing, deliver to Buyer outside of Escrow or
at the Property the original Leases and the Operating Agreements, together with such leasing and
property files and records which are material in connection with the continued operation, leasing
and maintenance of the Property, including current financial statements but excluding any
Confidential Documents. Prior to the Closing, Seller may, at its sole cost, make and return a copy
of all files, records and documents which Seller has delivered to Buyer. In addition, for a period
of three (3) years after the Closing, Buyer shall allow Seller and its representatives access
without charge to all files, records and documents delivered to Buyer at or in connection with the
Closing, upon reasonable advance notice and at reasonable times, to make copies of any and all such
files, records and documents, which right shall survive the Closing;

(j) deliver such affidavits as may be customarily and reasonably required by the Title
Company, in a form reasonably acceptable to Seller;

(k) deliver to Buyer exclusive possession and occupancy of the Property, subject to the
Permitted Exceptions;

(l) execute and deliver a closing statement acceptable to Seller through Escrow; and

(m) deliver such additional documents as shall be reasonably required to consummate the
transaction contemplated by this Agreement.

Section 4.3 Buyer’s Obligations at Closing

At, or prior to Closing, Buyer shall:

(a) pay to Seller through Escrow the full amount of the Purchase Price (due credit shall be
given for the Deposit as provided herein), as increased or decreased by prorations and adjustments
as herein provided in immediately available wire transferred funds pursuant to Section 1.4 hereof;

(b) join Seller in execution and delivery through Escrow of the Assignment of Leases and
Assignment of Contracts;

(c) if any representation or warranty of Buyer set forth in Section 5.4 hereof needs to be
modified due to changes since the Effective Date, deliver to Seller through Escrow a certificate,
dated as of the date of Closing and executed on behalf of Buyer by a duly authorized representative
thereof, identifying any such representation or warranty which is not, or no longer is, true and
correct and explaining the state of facts giving rise to the change. In no event shall Buyer be
liable to Seller for, or be deemed to be in default hereunder by reason of any breach of
representation or warranty set forth in Section 5.4 hereof which results from any change that (i)
occurs between the Effective Date and the date of Closing and (ii) is expressly permitted under the
terms of this Agreement or is beyond the reasonable control of Buyer to prevent. The occurrence of
a change in a representation or warranty which shall, if materially adverse to Seller, constitute
the non-fulfillment of the conditions set forth in Section 4.8(c) hereof. If, despite changes or
other matters described in such certificate, the Closing occurs, Buyer’s representations and
warranties set forth in this Agreement shall be deemed to have been modified by all statements made
in such certificate;

(d) deliver to Seller such evidence as the Title Company may reasonably require as to the
authority of the person or persons executing documents on behalf of Buyer,

(e) deliver such affidavits, as may be customarily and reasonably required by the Title
Company, in a form reasonably acceptable to Buyer;

(f) execute and deliver a closing statement acceptable to Buyer through Escrow; and

(g) deliver such additional documents as shall be reasonably required to consummate the
transaction contemplated by this Agreement.

Section 4.4 Escrow Holder’s Obligations at Closing

Escrow Holder shall undertake the following at or promptly after Closing:

(a) If necessary, Escrow Holder is authorized and instructed to insert the date Escrow closes
as the effective date of any documents conveying interests herein or which are to become operative
as of the Closing Date;

(b) Cause the Deed and any other recordable instruments which the parties so direct to be
recorded in the Official Records of the Recorder of the County in which the Property is located. If
permitted by applicable law, Escrow Holder is hereby instructed not to affix the amount of the
documentary transfer tax on the face of the Deed but to pay on the basis of a separate affidavit of
Seller not made a part of the public record;

(c) Cause each non-recorded document to be delivered to the party acquiring rights thereunder,
or for whose benefit such document was obtained; and

(d) Deliver to Buyer the Title Policy and to Seller the Seller’s Policy.

Section 4.5 Credits and Prorations

(a) All income and expenses of the Property shall be apportioned as of 12:01 a.m. on the day
of Closing as if Buyer were vested with title to the Property during the entire day upon which
Closing occurs. Such prorated items include without limitation the following:

(i) all Rents and any other income with respect to the Property received by the Closing, if
any;

(ii) taxes and assessments (including personal property taxes on the Personal Property) levied
against the Property;

(iii) utility charges for which Seller is liable, if any, such charges to be apportioned at
Closing on the basis of the most recent meter reading occurring prior to Closing (dated not more
than fifteen (15) days prior to Closing) or, if unmetered. on the basis of a current bill for each
such utility;

(iv) all amounts payable with respect to Operating Agreements and all Leasing Commissions and
Tenant Inducement Costs as provided in Section 4.5(b)(v) below; and

(v) any other operating expenses or other items pertaining to the Property which are
customarily prorated between a buyer and a seller in the County in which the Property is located.

(b) Notwithstanding anything contained in Section 4.5(a) hereof:

(i) At Closing, Seller shall, at Seller’s option, either (A) deliver to Buyer any Security
Deposits actually held by Seller pursuant to the Leases (to the extent such Security Deposits have
not been applied against delinquent Rents) or (B) credit to the account of Buyer the amount of such
Security Deposits held by Seller pursuant to the Leases (to the extent such Security Deposits have
not been applied against delinquent Rents); provided, however, that all non-cash Security Deposits,
if any, shall be transferred to Buyer by appropriate transfer documentation and Seller shall pay
all fees and charges, if any, in connection therewith;

(ii) Any property taxes and assessments paid at or prior to Closing shall be prorated based
upon the amounts actually paid. If taxes and assessments due and payable during the year of Closing
have not been paid before Closing, Seller shall be charged at Closing an amount equal to that
portion of such taxes and assessments which relates to the period before Closing and Buyer shall
pay the taxes and assessments prior to their becoming delinquent. Any such apportionment made with
respect to a tax year for which the tax rate or assessed valuation, or both, have not yet been
fixed shall be based upon the tax rate and/or assessed valuation fixed. To the extent that the
actual taxes and assessments for the current year differ from the amount apportioned at Closing,
the parties shall make all necessary adjustments following the Closing by appropriate payments
between themselves within thirty (30) days after such amounts are determined, subject to the
provisions of Section 4.5(d) hereof. Buyer shall pay all supplemental taxes resulting from the
change in ownership and reassessment occurring as the result of the Closing pursuant to this
Agreement;

(iii) Charges referred to in Section 4.5(a) hereof which are payable by any tenant directly to
a third party shall not be apportioned hereunder, and Buyer shall accept title subject to any of
such charges unpaid and Buyer shall look solely to the tenant responsible therefor for the payment
of such charges. If Seller shall have paid any of such charges on behalf of any tenant, and shall
not have been reimbursed there for by the time of Closing, Buyer shall remit such amounts to Seller
when the tenant actually makes reimbursement for them; provided that Buyer covenants to use
commercially reasonable efforts to collect the same from tenants following the Closing, and
Seller’s obligations to do so shall survive the Closing or any termination of this Agreement;

(iv) As to utility charges referred to in Section 4.5(a)(iii) hereof, Seller may upon notice
to Buyer elect to pay one or more of all of said items accrued to the date hereinabove fixed for
apportionment directly to the person or entity entitled thereto, and to the extent Seller so
elects, such item shall not be apportioned hereunder, and Seller’s obligation to pay such item
directly in such case shall survive the Closing or any termination of this Agreement;

(v) On the Closing Date Buyer shall be responsible for the payment of (A) all Tenant
Inducement Costs (as hereinafter defined) and Leasing Commissions (as hereinafter defined) which
become due and payable (whether before or after Closing) as a result of any New Lease Documents (as
defined below) executed prior to Closing and approved or deemed approved by Buyer pursuant to
Section 5.3(b); and (B) all Tenant Inducement Costs and Leasing Commissions with respect to New
Lease Documents, signed or entered into from and after the date of Closing; provided, however, that
to the extent any tenant under a New Lease Document signed or executed after the Effective Date
commences payment of Rent under such New Lease Document prior to the Closing, then with respect to
such Tenant Inducement Costs and Leasing Commission Costs relating thereto, the same shall be
prorated between Buyer and Seller, with Buyer responsible for that portion thereof equal to the
number of days in the stated term of such New Lease Document after the Closing and Seller
responsible for that portion thereof equal to the number of days in the stated term prior to the
Closing. The term “Tenant Inducement Costs” shall mean any payments required under a Lease to be
paid by the landlord thereunder to or for the benefit of the tenant thereunder which is in the
nature of a tenant inducement, including specifically, without limitation, tenant improvement
costs, lease buyout costs, and moving, design, refurbishment, free rent, and club membership
allowances. The term “Leasing Commissions” includes all expenses connected with or arising out of
the negotiation, execution and delivery of the Leases executed after the Effective Date, including
brokers’ commissions, leasing fees and legal fees, if any. Seller shall be responsible for all
Leasing Commissions and Tenant Inducement Costs with respect to all Leases executed or signed prior
to the Effective Date;

(vi) Unpaid and delinquent Rent collected by Seller and Buyer after the date of Closing shall
be delivered as follows: (a) if Seller collects any unpaid or delinquent Rent for the Property,
Seller shall, within fifteen (15) days after the receipt thereof, deliver to Buyer any such Rent
which Buyer is entitled to hereunder relating to the date of Closing and any period thereafter, and
(b) if Buyer collects any unpaid or delinquent Rent from the Property, Buyer shall, within fifteen
(15) days after the receipt thereof, deliver to Seller any such Rent which Seller is entitled to
hereunder relating to the period prior to the date of Closing. Seller and Buyer agree that (i) all
Rent received by Seller or Buyer shall be applied first to current Rent and then to delinquent
Rent, if any, in the inverse order of maturity.

Buyer will use commercially reasonable efforts after Closing to collect all Rents in the usual
course of Buyer’s operation of the Property, but Buyer will not be obligated to institute any
lawsuit or other collection procedures to collect delinquent Rents. Seller may attempt to collect
any delinquent Rents owed to Seller and, after prior written notice to Buyer, may institute any
lawsuit or collection procedures, but may not evict any tenant. If there shall be any Rents or
other charges under any Leases which, although relating to a period prior to Closing, do not become
due and payable until after Closing or are paid prior to Closing but are subject to adjustment
after Closing (such as year end common area expense reimbursements and the like), then any Rents or
charges of such type received by Buyer or its agents or Seller or its agents subsequent to Closing
shall, to the extent applicable to a period extending through the Closing, be prorated between
Seller and Buyer as of Closing and Seller’s portion thereof shall be remitted promptly to Seller by
Buyer together with a detailed accounting certified by Buyer’s chief financial officer.
Notwithstanding anything to the contrary herein, Seller shall be entitled to a credit at Closing
equal to one hundred percent (100%) of the amount of all accounts receivable less than thirty-one
(31) days old as of the Closing.

Any percentage rent, escalation charges for real estate taxes, parking charges, operating and
maintenance expenses, escalation rents or charges, electricity charges, cost of living increases or
any other charges of a similar nature other than fixed or base rent under the Leases (collectively,
the “Additional Rents”) shall be prorated as of the Closing Date between Buyer and Seller on or
before the date which is sixty (60) days following the end of the calendar year in which the
closing occurs based on the actual number of days of the year and month which shall have elapsed as
of the Closing Date. Prior to the end of the calendar year in which the closing occurs, Seller
shall provide Buyer with information regarding Additional Rents which were received by Seller prior
to closing and the amount of reimbursable expenses paid by Seller prior to closing. On or before
the date which is sixty (60) days following the end of the calendar year in which the closing
occurs, Buyer shall deliver to Seller a reconciliation of all expenses reimbursable by tenants
under the Leases, and the amount of Additional Rents received by Seller and Buyer relating thereto
(the “Reconciliation”). Upon reasonable notice and during normal business hours, each party shall
make available to the other all information reasonably required to confirm the Reconciliation. In
the event of any overpayment of Additional Rents by the tenants to Seller, Seller shall promptly,
but in no event later than fifteen (15) days after receipt of the Reconciliation, pay to Buyer the
amount of such overpayment and Buyer, as the landlord under the particular Leases, shall pay or
credit to each applicable tenant the amount of such overpayment. In the event of an underpayment of
Additional Rents by the tenants to Seller, Buyer shall pay to Seller the amount of such
underpayment within fifteen (15) days following Buyer’s receipt of any such amounts from the
tenants.

(c) Seller may prosecute at Seller’s cost an appeal of the real property tax assessment for
any tax years to and including the tax year in which the Closing occurs, and may take related
action which Seller deems appropriate in connection therewith. Buyer shall cooperate with Seller in
connection with such appeal and collection of a refund of real property taxes paid, provided that
Buyer shall not be obligated to incur any material cost in doing so. Seller owns and holds all
right, title and interest in and to such appeal and refund respecting time periods up to (but not
including) the Closing Date, and all amounts payable in connection therewith shall be paid directly
to Seller by the applicable authorities. If such refund or any part thereof is received by Buyer,
then Buyer shall promptly pay such amount to Seller. Any refund received by Seller shall be
distributed as follows: first, to reimburse Seller for all costs incurred in connection with the
appeal; second, with respect to refunds payable to tenants of the Real Property pursuant to the
Leases, to such tenants in accordance with the terms of such Leases; and third, to Seller to the
extent such appeal covers the period prior to the Closing, and to Buyer to the extent such appeal
covers the period as of the Closing and thereafter. If and to the extent any such appeal covers the
period after the Closing, Buyer shall have the right to participate in such appeal.

(d) Except as otherwise provided herein, any revenue or expense amount which cannot be
ascertained with certainty as of Closing shall be prorated on the basis of the parties’ reasonable
estimates of such amount, and shall be the subject of a final proration sixty (60) days after
Closing, or as soon thereafter as the precise amounts can be ascertained. Buyer shall promptly
notify Seller when it becomes aware that any such estimated amount has been ascertained. Once all
revenue and expense amounts have been ascertained, Buyer shall prepare, and certify as correct, a
final proration statement which shall be subject to Seller’s approval. Upon Seller’s acceptance and
approval of any final proration statement submitted by Buyer, such statement shall be conclusively
deemed to be accurate and final.

(e) The provisions of this Section 4.5 shall survive Closing.

Section 4.6 Transaction Taxes and Closing Costs.

(a) Seller and Buyer shall execute such returns, questionnaires and other documents as shall
be required with regard to all applicable real property transaction taxes imposed by applicable
federal, state or local law or ordinance;

(b) Seller shall pay the fees of any counsel representing Seller in connection with this
transaction. Seller shall also pay the following costs and expenses:

(i) one-half (1/2) of the escrow fee, if any, which is charged by the Escrow Holder or Title
Company;

(ii) the premium for the ALTA Standard Coverage Owner’s Policy of Title Insurance to be issued
to Buyer by the Title Company at Closing;

(iii) the fees for recording the Deed and any additional recording fees incurred in connection
with the satisfaction of Seller’s obligations hereunder (if any);

(iv) one-half (1/2) of any documentary transfer tax or similar tax (including, without
limitation, City and County documentary transfer taxes, as applicable) which becomes payable by
reason of the transfer of the Property (collectively, “Transfer Taxes”); and

(v) the brokerage fees due to Seller’s Broker (as defined in Section 8.1 below), if any.

(c) Buyer shall pay the fees of any counsel representing Buyer in connection with this
transaction. Buyer shall also pay the following costs and expenses:

(i) one-half (1/2) of (A) the escrow fee, if any, which is charged by the Escrow Holder or
Title Company and (B) the Transfer Taxes;

(ii) the premium for the Owner’s Policy of Title Insurance to be issued to Buyer by the Title
Company at Closing, and all endorsements thereto, but only to the extent that those costs exceed
the cost of a ALTA Standard Coverage Owner’s Policy;

(iii) any recording fees incurred in connection with the satisfaction of Buyer’s obligations
hereunder (if any); and

(iv) the cost of any new or updated surveys required by Buyer.

(d) The Personal Property is included in this sale without charge, Buyer shall be responsible
for the amount of any and all sales or similar taxes payable in connection with the transfer of the
Personal Property;

(e) All costs and expenses incident to this transaction and the Closing thereof, and not
specifically described above, shall be paid by the party incurring same; and

(f) The provisions of this Section 4.6 shall survive the Closing.

Section 4.7 Conditions Precedent to Obligation of Buyer

The obligation of Buyer to consummate the transaction contemplated hereunder shall be subject
to the fulfillment on or before the date of Closing of all of the conditions set forth in this
Section 4.7 below, any or all of which may be waived by Buyer in its sole and absolute discretion.
Except as provided in Section 6.1, in the event Buyer terminates this Agreement due to the
nonsatisfaction of any such conditions, then the termination provisions set forth in Section 3.6
above shall apply.

(a) Seller shall have delivered to Buyer (or to Buyer through the Escrow Holder) all of the
items required to be delivered to Buyer pursuant to the terms of this Agreement, including but not
limited to, those provided for in Section 4.2 hereof;

(b) All of the representations and warranties of Seller contained in this Agreement shall be
true and correct in all material respects as of the date of Closing;

(c) Seller shall have performed and observed, in all material respects, all covenants and
agreements of this Agreement to be performed and observed by Seller as of the date of Closing; and

(d) The Title Company shall have issued or irrevocably committed to issue the Title Policy,
which includes no exceptions other than the Permitted Exceptions.;

(e) Seller shall have obtained and delivered to Buyer, no later than three (3) business days
prior to Closing, Tenant Estoppels from all tenants occupying 13,000 square feet or more (each, a
“Major Tenant”) and (b) Tenant Estoppels from other tenants sufficient so that the Seller has
delivered Tenant Estoppels from tenants representing in the aggregate, at least seventy-five
percent (75%) of the aggregate occupied square footage of the Property and the Related Property
(the “Estoppel Requirement”), in each case substantially consistent with the form Tenant Estoppels
sent to such tenants in accordance with Section 3.5 hereof.

If on the date that is three (3) days prior to the Closing Date Seller has obtained and
furnished to Buyer Tenant Estoppels from each of the Major Tenants but has not obtained and
furnished to Buyer sufficient Tenant Estoppels to satisfy the Estoppel Requirement, then the
Seller, at its election, may deliver a seller estoppel certificate relating to Leases which, when
combined with the Tenant Estoppels delivered to Buyer, satisfies the Estoppel Requirement, in which
event the condition to Closing set forth in this Section 4.7(e) shall be deemed to have been
satisfied; provided that such seller estoppel shall run for the benefit of both Buyer and its
lender. If Seller delivers its seller estoppel certificate with respect to any tenant, Seller shall
be entitled after Closing to continue to deal with any tenant who has not delivered an estoppel
certificate to attempt to obtain a Tenant Estoppel from such tenant, and Buyer shall reasonably
cooperate with Seller in such attempt. If a Tenant Estoppel is delivered to Buyer after the Closing
with respect to any tenant for whom Seller has delivered its certificate at Closing pursuant to
this Section, Seller’s estoppel certificate with respect to such tenant shall automatically be
deemed null and void as to matters covered in the applicable Tenant Estoppel. With respect to any
statement or certification relating to a tenant contained in a Seller’s estoppel certificate,
Seller may qualify said statement or certification therein by a “best of knowledge” standard or
similar provision.

(f) No Major Tenant shall (i) be in material default under its Lease; (ii) have filed
bankruptcy or sought any similar debtor protective measure or be the subject of an involuntary
bankruptcy; or (iii) have given notice of intent to do any of the foregoing.

Section 4.8 Conditions Precedent to Obligation of Seller

The obligation of Seller to consummate the transaction contemplated hereunder shall be subject
to the fulfillment on or before the date of Closing of all of the following conditions, any or all
of which may be waived by Seller in its sole and absolute discretion:

(a) Seller shall have received the Purchase Price as adjusted as provided herein, and payable
in the manner provided for in this Agreement;

(b) Buyer shall have delivered to Seller (or to Seller through the Escrow Holder) all of the
items provided for in Section 4.3 hereof;

(c) All of the representations and warranties of Buyer contained in this Agreement shall be
true and correct in all material respects as of the date of Closing; and

(d) Buyer shall have performed and observed, in all material respects, all covenants and
agreements of this Agreement to be performed and observed by Buyer as of the date of Closing,

Section 4.9 Related Agreement

Concurrent with the execution of this Agreement, Seller, as seller, and an affiliate of Buyer,
as buyer (“Related Buyer”), are entering into a Purchase and Sale Agreement (the “Related
Agreement”) for the sale by Seller to Related Buyer of certain additional property within the
Woodside Corporate Park (the “Related Property”). As a condition precedent to Seller’s obligations
to Closing, the closing pursuant to the Related Agreement must occur simultaneously. It is the
specific intent of Seller that Buyer and Related Buyer must purchase both the Property pursuant to
this Agreement and the Related Property pursuant to the Related Agreement, and a default by Related
Buyer or Seller under the Related Agreement shall be a default by Buyer or Seller, as applicable,
under this Agreement. If for any reason the Closing Date under the Related Agreement is extended,
the Closing Date hereunder shall automatically be extended to the same day. Notwithstanding any
provision of this Agreement to the contrary, under no circumstances shall the Closing under this
Agreement occur prior to the Closing under the Related Agreement without the prior consent of
Seller, which consent may be withheld in Seller’s sole discretion.

ARTICLE V.

REPRESENTATIONS, WARRANTIES AND COVENANTS

Section 5.1 Representations and Warranties of Seller

Seller hereby represents and warrants to Buyer as of the Effective Date that:

(a) Seller has been duly organized, is validly existing under the laws of the State of
California, and is qualified to do business in California and in the State in which the Property is
located;

(b) Seller has the full right and authority to enter into this Agreement, to transfer all of
the Property and to consummate or cause to be consummated the transaction contemplated by this
Agreement;

(c) the person signing this Agreement on behalf of Seller is authorized to do so;

(d) Seller is not a “foreign person” within the meaning of Section 1445(f)(3) of the Internal
Revenue Code of 1986, as amended;

(e) Schedule 5.1(e) sets forth a complete and correct list of the common name of each tenant
under the Leases as of the Effective Date, together with the building and suite number of the space
occupied by each tenant;

(f) Seller is not a party to any contracts or agreements relating to the upkeep, repair,
maintenance, construction, management, leasing or operation of the Property except for the
Operating Agreements;

(g) to the Knowledge of Seller (as defined below), there is no action, suit, arbitration or
other legal proceeding pending against the Property or against Seller challenging Seller’s
authority to execute and deliver this Agreement or to consummate the transaction contemplated
hereby;

(h) to the Knowledge of Seller, Seller has not received written notice of any condemnation
proceedings (or similar proceeding) relating to the Property; and

(i) to the Knowledge of Seller, Seller has not received written notice of any uncured
violation of any federal, state or local law relating to the use or operation of the Property which
would materially adversely affect the Property or the use thereof taken as a whole.

The term “Knowledge” as used herein with respect to Seller, shall mean the current actual and
not implied or constructive knowledge, and without the duty of investigation or inquiry, of Brett
Franklin. The representations and warranties contained in this Section 5.1 shall be deemed to have
been made again as of the Closing, subject to Section 4.2(f) hereof.

Section 5.2 Survival of Seller’s Representations and Warranties

The representations and warranties of Seller set forth in Section 5.1 hereof, as updated as of
the Closing in accordance with the terms of this Agreement, shall survive Closing for a period of
three (3) months following the Closing. No claim for a breach of any representation or warranty of
Seller shall be actionable or payable if the breach in question results from or is based on a
condition, state of facts or other matter which was known to Buyer prior to Closing, if Buyer
elects to consummate the transactions described herein with such knowledge. Seller shall have no
liability to Buyer for a breach of any representation or warranty unless (a) the valid claims for
all such breaches collectively aggregate more than Fifty Thousand Dollars ($50,000.00), in which
event the full amount of such valid claims shall be actionable, up to the Cap (as defined in this
Section), and (b) written notice containing a description of the specific nature of such breach
shall have been given by Buyer to Seller prior to the expiration of said three (3) month period and
an action shall have been commenced by Buyer against Seller within six (6) months of Closing. Buyer
agrees to first seek recovery under any applicable insurance policies, service contracts and/or
Leases prior to seeking recovery from Seller, and Seller shall not be liable to Buyer to the extent
Buyer’s claim is satisfied from such insurance policies, service contracts or Leases. As used
herein, the term “Cap” shall mean the total aggregate amount of Five Hundred Thousand Dollars
($500,000.00).

Section 5.3 Covenants of Seller

Seller hereby covenants with Buyer as follows:

(a) Property Maintenance. From the Effective Date hereof until the Closing or earlier
termination of this Agreement, Seller shall use reasonable efforts operate and maintain the
Property in a manner generally consistent with the manner in which Seller has operated and
maintained the Property prior to the Effective Date. Notwithstanding anything in this Agreement to
the contrary, Seller shall not voluntarily cause or create any lien, encumbrance, easement, right
or other matter materially affecting title to the Property (each, an “Intervening Lien”) unless
such Intervening Lien is consented to by Buyer in writing.

(b) Leasing. Following the Effective Date and other than an Approved Lease, Seller shall not
enter into any amendment, renewal or expansion of the existing Lease or of any new Lease respecting
the Property (as applicable, each a “New Lease Document”) without the written approval of Buyer,
which approval shall not be unreasonably withheld. At Closing, Buyer shall reimburse Seller for any
Tenant Inducement Costs, Leasing Commissions or other expenses, including legal fees, incurred by
Seller pursuant to any and all New Lease Documents approved (or deemed approved) by Buyer pursuant
hereto as provided in Section 4.5.

(c) Restrictive Covenant Estoppel. SNDA. Seller shall use commercially reasonable efforts to
obtain and deliver (a) an estoppel form from each party entitled to enforce any restrictive
covenants encumbering the property (“Restrictive Covenant Estoppel”); and (b) a subordination,
nondisturbance and attornment agreement on the form to be provided by the Buyer prior to the
Effective Date from each tenant (each, an “SNDA”); provided, however, that neither receipt of any
Restrictive Covenant Estoppel or any SNDA shall be a condition precedent to Buyer’s obligation to
proceed with the acquisition of the Property. Buyer shall provide Seller with any such SNDAs and/or
Restrictive Covenant Estoppels prior to Seller using any efforts to obtain the same.

Section 5.4 Representations and Warranties of Buyer

Buyer hereby represents and warrants to Seller as of the Effective Date that Buyer has been
duly organized and is validly existing and in good standing under the laws of its State of
incorporation/formation and is in good standing in the State in which the Property is located.
Buyer has the full right and authority to enter into this Agreement and to consummate or cause to
be consummated the transaction contemplated by this Agreement. The person signing this Agreement on
behalf of Buyer is authorized to do so. There is no action, suit, arbitration, unsatisfied order or
judgment, government investigation or proceeding pending against Buyer which, if adversely
determined, could individually or in the aggregate materially interfere with the consummation of
the transaction contemplated by this Agreement. Buyer is solvent, has timely and, to its knowledge,
accurately filed all tax returns to be filed by it and Buyer is not in default in the payment of
any taxes levied or assessed against it or any of its assets. The representations and warranties
contained in this Section 5.4 shall be deemed to have been made again as of the Closing, subject to
Section 4.2(f) hereof.

Section 5.5 Survival of Buyer’s Representations and Warranties

The representations and warranties of Buyer set forth in Section 5.4 hereof as updated as of
the Closing in accordance with the terms of this Agreement, shall survive Closing for a period of
nine (9) months. Buyer shall have no liability to Seller for a breach of any representation or
warranty unless written notice containing a description of the specific nature of such breach shall
have been given by Seller to Buyer prior to the expiration of said three (3) months’ period and an
action shall have been commenced by Seller against Buyer within six (6) months of Closing.

Section 5.6 Covenant of Buyer

Seller may be selling the Property as part of a multi-property transaction to qualify as a
tax-free exchange, including potentially a so-called reverse Starker exchange (“1031 Exchange”)
under Section 1031 of the Internal Revenue Code of 1986, as amended. Buyer shall, to the extent
provided below, cooperate with Seller’s reasonable request to allow Seller to attempt to qualify
for the 1031 Exchange; provided, however, that Buyer’s obligation to cooperate with Seller shall be
limited and conditioned as follows: (i) Buyer shall receive written notice from Seller at least
five (5) business days prior to the scheduled Closing Date, which shall identify the parties
involved in such 1031 Exchange and enclose all document for which Buyer’s signature shall be
required; (ii) in no event shall Buyer be required to execute any document or instrument which may
(A) subject Buyer to any additional liability or obligation to Seller or any other individual,
entity or governmental agency, (B) diminish or impair Buyer’s rights under this Agreement, or (C)
delay Closing for more than five (5) business days; (iii) Seller shall not be relieved of any of
its obligations under this Agreement by reason of the 1031 Exchange and (iv) Buyer shall not be
required to incur any additional costs or expenses in connection with the 1031 Exchange. Seller’s
failure to effectuate any intended 1031 Exchange shall not relieve Seller from its obligations to
consummate the purchase and sale transaction contemplated by this Agreement and the consummation of
such 1031 Exchange shall not be a condition precedent to Seller’s obligations under this Agreement.

ARTICLE VI.

DEFAULT

Section 6.1 Default by Buyer

If the sale of the Property as contemplated hereunder is not consummated due to Buyer’s
default hereunder, then Seller shall be entitled, as its sole and exclusive remedy, to terminate
this Agreement and retain the Deposit as liquidated damages as more particularly set forth in
Section 1.6 above. It shall be deemed a default by Buyer hereunder if Buyer, other than by reason
of a Seller default or a failure of condition as set forth in Section 4.7 hereof, fails to
consummate the transaction on the Closing Date.

Section 6.2 Default by Seller

If the sale of the Property as contemplated hereunder is not consummated due to Seller’s
material default hereunder, then Buyer shall be entitled, as its sole and exclusive remedy, to
either (a) receive the return of the Deposit, which return shall operate to terminate this
Agreement and release Seller from any and all liability hereunder, except that in the event of a
willful default on the part of Seller, Buyer may also seek damages from Seller for Buyer’s actual
out of pocket costs in connection with this transaction, not to exceed Fifty Thousand Dollars
($50,000); or (b) enforce specific performance of Seller’s obligation to convey the Property to
Buyer in accordance with the terms of this Agreement. The remedy of specific performance shall not
be available to enforce any other obligation of Seller hereunder. Buyer expressly waives its rights
to seek damages in the event of Seller’s default hereunder. Buyer shall be deemed to have elected
to terminate this Agreement and receive the Deposit if Buyer fails to file suit for specific
performance against Seller in a court having jurisdiction in the County and State in which the
Property is located, on or before thirty (30) days following the date upon which Closing was to
have occurred.

Section 6.3 Recoverable Damages

Notwithstanding Sections 6.1 and 6.2 hereof, in no event shall the provisions of Sections 6.1
and 6.2 limit the damages recoverable by either party against the other party due to the other
party’s obligation to indemnify such party in accordance with this Agreement or the non-prevailing
party’s obligation to pay the prevailing party’s reasonable attorneys’ fees and costs pursuant to
Section 10.16 hereof.

ARTICLE VII.

RISK OF LOSS

Section 7.1 Minor Damage

In the event of loss or damage to the Property or any portion thereof which is not “Major” (as
hereinafter defined), this Agreement shall remain in full force and effect provided that Seller
shall assign to Buyer all of Seller’s right, title and interest in and to any claims and proceeds
Seller may have with respect to any casualty insurance policies or condemnation awards relating to
the premises in question and the Purchase Price shall not be adjusted by reason thereof, but Buyer
shall receive a credit for any deductible. Upon Closing, full risk of loss with respect to the
Property shall pass to Buyer.

Section 7.2 Major Damage

Seller shall promptly notify Buyer of the occurrence of any “Major” loss or damage, which
notice shall state the cost of repair or restoration thereof as opined by an architect or other
qualified expert in accordance with Section 7.3 hereof. Buyer shall have the right, exercisable by
giving written notice to Seller within fifteen (15) business days after receipt of Seller’s written
notice, to terminate this Agreement in which event the provisions of Section 3.6 shall apply. If
Buyer does not elect to terminate this Agreement within said fifteen (15) business day period, then
Buyer shall be deemed to have elected to proceed with Closing. In that event Seller cause the
Closing to occur promptly and assign to Buyer through Escrow all of Seller’s right, title and
interest in and to any claims and proceeds Seller may have with respect to any casualty insurance
policies or condemnation awards relating to the premises in question and the Purchase Price shall
not be adjusted by reason thereof, but Buyer shall receive a credit for any deductible. Upon
Closing, full risk of loss with respect to the Property shall pass to Buyer.

Section 7.3 Definition of “Major” Loss or Damage

For purposes of Sections 7.1 and 7.2, “Major” loss or damage refers to the following: (a) loss
or damage to the Property hereof such that the cost of repairing or restoring the premises in
question to substantially the same condition which existed prior to the event of damage would be,
in the opinion of an architect or other qualified expert selected by Seller and reasonably approved
by Buyer, equal to or greater than One Million Dollars ($1,000,000.00); (b) any material loss due
to a condemnation which permanently and materially impacts the current use of the Property; and (c)
any casualty or condemnation which entitles a Major Tenant to terminate its lease. If Buyer does
not give written notice to Seller of Buyer’s reasons for disapproving an architect or other
qualified expert within five (5) business days after receipt of notice of the proposed architect or
other qualified expert, then Buyer shall be deemed to have approved the architect or other
qualified expert selected by Seller.

ARTICLE VIII.

COMMISSIONS

Section 8.1 Brokerage Commissions

With respect to the transaction contemplated by this Agreement, Seller and Buyer each
represents to the other that to the best of its knowledge, no brokerage commission, finder’s fee or
other compensation of any kind is due or owing to any person or entity, other than Grubb & Ellis
Company (“Seller’s Broker”). Furthermore, Seller agrees to pay to Triple Net Properties Realty,
Inc., a California corporation (“TNP Realty”) a real estate commission of Six Hundred Thousand
Dollars ($600,000) if and only if Closing occurs. Except for Seller’s Broker, whose fees shall be
paid by Seller pursuant to the terms of a separate written agreement between Seller and Seller’s
Broker, and TNP Realty, who shall be paid by Seller as set forth above, each party hereby agrees
that if any person or entity makes a claim for brokerage commissions or finder’s fees related to
the sale of the Property by Seller to Buyer, and such claim is made by, through or on account of
any acts or alleged acts of said party or its representatives, then said party will protect,
indemnify, defend and hold the other party free and harmless from and against any and all loss,
liability, cost, damage and expense (including reasonable attorneys’ fees) in connection therewith.
Buyer specifically agrees that Seller shall only be responsible for the payment to TNT Realty set
forth above, and any other amounts due TNT Realty shall be the responsibility of Buyer. The
provisions of this paragraph shall survive Closing or any termination of this Agreement.

ARTICLE IX.

DISCLAIMERS AND WAIVERS

Section 9.1 AS IS SALE: DISCLAIMERS

EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT:

(a) SELLER IS NOT MAKING AND HAS NOT AT ANY TIME MADE ANY WARRANTIES OR REPRESENTATIONS OF ANY
KIND OR CHARACTER, EXPRESS OR IMPLIED, WITH RESPECT TO THE PROPERTY, INCLUDING, BUT NOT LIMITED TO,
ANY WARRANTIES OR REPRESENTATIONS AS TO HABITABILITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE.

(b) UPON CLOSING SELLER SHALL SELL AND CONVEY TO BUYER AND BUYER SHALL ACCEPT THE PROPERTY “AS
IS, WHERE IS, WITH ALL FAULTS”. BUYER HAS NOT RELIED AND WILL NOT RELY ON, AND SELLER IS NOT
LIABLE FOR OR BOUND BY, ANY EXPRESS OR IMPLIED WARRANTIES, GUARANTIES, STATEMENTS, REPRESENTATIONS
OR INFORMATION PERTAINING TO THE PROPERTY OR RELATING THERETO (INCLUDING SPECIFICALLY, WITHOUT
LIMITATION, OFFERING PACKAGES DISTRIBUTED WITH RESPECT TO THE PROPERTY) MADE OR FURNISHED BY
SELLER, THE MANAGERS OF THE PROPERTY, OR ANY REAL ESTATE BROKER OR AGENT REPRESENTING OR PURPORTING
TO REPRESENT SELLER, TO WHOMEVER MADE OR GIVEN, DIRECTLY OR INDIRECTLY, ORALLY OR IN WRITING. ALL
MATERIALS, DATA AND INFORMATION DELIVERED BY SELLER TO BUYER IN CONNECTION WITH THE TRANSACTION
CONTEMPLATED HEREBY ARE PROVIDED TO BUYER AS A CONVENIENCE ONLY AND ANY RELIANCE ON OR USE OF SUCH
MATERIALS, DATA OR INFORMATION BY BUYER SHALL BE AT THE SOLE RISK OF BUYER, EXCEPT AS OTHERWISE
EXPRESSLY STATED HEREIN. NEITHER SELLER, NOR ANY, AFFILIATE OF SELLER, NOR THE PERSON OR ENTITY
WHICH PREPARED ANY REPORT OR REPORTS DELIVERED BY SELLER TO BUYER SHALL HAVE ANY LIABILITY TO BUYER
FOR ANY INACCURACY IN OR OMISSION FROM ANY SUCH REPORTS. BUYER ACKNOWLEDGES THAT THE PURCHASE PRICE
REFLECTS AND TAKES INTO ACCOUNT THAT THE PROPERTY IS BEING SOLD “AS IS.”

(c) BUYER REPRESENTS AND COVENANTS TO SELLER THAT BUYER HAS CONDUCTED, OR WILL CONDUCT PRIOR
TO CLOSING, SUCH INVESTIGATIONS OF THE PROPERTY, INCLUDING BUT NOT LIMITED TO, THE PHYSICAL AND
ENVIRONMENTAL CONDITIONS THEREOF, AS BUYER DEEMS NECESSARY OR DESIRABLE TO SATISFY ITSELF AS TO THE
CONDITION OF THE PROPERTY AND THE EXISTENCE OR NONEXISTENCE OR CURATIVE ACTION TO BE TAKEN WITH
RESPECT TO ANY HAZARDOUS OR TOXIC SUBSTANCES ON OR DISCHARGED FROM THE PROPERTY, AND WILL RELY
SOLELY UPON SAME AND NOT UPON ANY INFORMATION PROVIDED BY OR ON BEHALF OF SELLER OR ITS AGENTS OR
EMPLOYEES WITH RESPECT THERETO.

(d) UPON CLOSING, BUYER SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING BUT NOT LIMITED
TO, CONSTRUCTION DEFECTS AND ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT HAVE BEEN
REVEALED BY BUYER’S INVESTIGATIONS, AND BUYER, UPON CLOSING, SHALL BE DEEMED TO HAVE WAIVED,
RELINQUISHED AND RELEASED SELLER (AND SELLER’S OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES AND
AGENTS) FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION (INCLUDING CAUSES OF ACTION
IN TORT), LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES (INCLUDING REASONABLE ATTORNEYS’ FEES)
OF ANY AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH BUYER MIGHT HAVE ASSERTED OR ALLEGED
AGAINST SELLER (AND SELLER’S OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES AND AGENTS) AT ANY TIME
BY REASON OF OR ARISING OUT OF ANY LATENT OR PATENT CONSTRUCTION DEFECTS OR PHYSICAL CONDITIONS,
VIOLATIONS OF ANY APPLICABLE LAWS AND ANY AND ALL OTHER ACTS, OMISSIONS, EVENTS, CIRCUMSTANCES OR
MATTERS REGARDING THE PROPERTY.

Section 9.2 Survival of Disclaimers

The provisions of this Article IX shall survive Closing or any termination of this Agreement.

ARTICLE X.

MISCELLANEOUS

Section 10.1 Confidentiality

Buyer and its representatives shall hold in confidence all data and information obtained from
Seller or its agents with respect to Seller or its business (other than data and information which
is publicly available), whether obtained before or after the execution and delivery of this
Agreement, and shall not disclose the same to others; provided, however, that Buyer may disclose
such data and information to the employees, lenders, prospective investors and their
representatives, consultants, accountants, and attorneys of Buyer if such persons agree in writing
to treat such data and information confidentially. If this Agreement is terminated or Buyer fails
to perform hereunder, Buyer shall promptly return to Seller any statements, documents, schedules,
exhibits or other written information obtained from Seller in connection with this Agreement or the
transaction contemplated herein. In the event of a breach or threatened breach by Buyer or its
agents or representatives of this Section 10.1, Seller shall be entitled to an injunction
restraining Buyer or its agents or representatives from disclosing, in whole or in part, such
confidential information. Nothing herein shall be construed as prohibiting Seller from pursuing any
other available remedy at law or in equity for such breach or threatened breach. The provisions of
this Section 10.1 shall survive Closing or any termination of this Agreement.

Section 10.2 Public Disclosure

Prior to and after the Closing, any release to the public of information with respect to the
sale contemplated herein or any matters set forth in this Agreement will be made only in the form
approved by Buyer and Seller. The provisions of this Section 10.2 shall survive the Closing or any
termination of this Agreement.

Section 10.3 Assignment

Subject to the provisions of this Section 10.3, the terms and provisions of this Agreement are
to apply to and bind the permitted successors and assigns of the parties hereto. Buyer may not
assign its rights under this Agreement without first obtaining Seller’s written approval, which
approval may be given or withheld in Seller’s sole discretion; provided that Buyer may assign this
Agreement to an entity controlled or managed by Buyer without relieving Buyer of its obligations
under this Agreement. In addition, Buyer shall have the right to designate up to thirty-five (35)
entities who are not contract assignees to be the grantees on the Deed, who will take title the
Property as tenants in common; provided that the Buyer shall have provided such designation
instruction and the list of such designees and their respective percentage interests no later than
one (1) business day before Closing.

Section 10.4 Notices

Any notice pursuant to this Agreement shall be given in writing by (a) personal delivery, (b)
reputable overnight delivery service with proof of delivery, (c) United States Mail, postage
prepaid, registered or certified mail, return receipt requested, or (d) legible facsimile
transmission with a confirmation sheet, sent to the intended addressee at the address set forth
below, or to such other address or to the attention of such other person as the addressee shall
have designated by written notice sent in accordance herewith. Any notice so given shall be deemed
to have been given upon receipt or refusal to accept delivery, or, in the case of facsimile
transmission, as of the date of the facsimile transmission provided that an original of such
facsimile is also sent to the intended addressee by means described in clauses (a), (b) or (c)
above. Unless changed in accordance with the preceding sentence, the addresses for notices given
pursuant to this Agreement shall be as follows:

	 	 	 
	If to Seller:

	 	PS Business Parks, L.P.

701 Western Avenue, Suite 200

Glendale, California 91201

Attention: Brett Franklin

Telephone No.: (818)244-8080

Facsimile No.: (818) 242-0566
	 
	 	 
	with a copy to:Wilmer Cutler Pickering Hale and Dorr LLP

	 
	 	 
	
 
	 	1801 Pennsylvania Avenue NW

Washington, DC 20006

Telephone No.: (202) 247-3000

Facsimile No.: (202) 663-6363
	 
	 	 
	If to Buyer:

	 	Theresa Hutton

Triple Net Properties, LLC

1551 N. Tustin Avenue, Suite 200

Santa Ana, CA 92705

(714) 667-8252

(714) 667-6860 Fax
	 
	 	 
	with a copy to:Joseph J. McQuade, Esquire

	 
	 	 
	
 
	 	Hirschler Fleischer

701 East Byrd Street, 16th Floor

Richmond, VA 23219

(804) 771-9502

(804) 644-0957 Fax
	 
	 	 
	Section 10.5

	 	Modifications

This Agreement cannot be changed orally, and no executory agreement shall be effective to
waive, change, modify or discharge it in whole or in part unless such executory agreement is in
writing and is signed by the parties against whom enforcement of any waiver, change, modification
or discharge is sought.

Section 10.6 Entire Agreement

This Agreement, including the exhibits and schedules hereto, contains the entire agreement
between the parties hereto pertaining to the subject matter hereof and fully supersedes all prior
written or oral agreements and understandings between the parties pertaining to such subject
matter.

Section 10.7 Further Assurances

Each party agrees that it will execute and deliver such other documents and take such other
action, whether prior or subsequent to Closing, as may be reasonably requested by the other party
to consummate the transaction contemplated by this Agreement. The provisions of this Section 10.7
shall survive Closing.

Section 10.8 Counterparts

This Agreement may be executed in counterparts, all such executed counterparts shall
constitute the same agreement, and the signature of any party to any counterpart shall be deemed a
signature to, and may be appended to, any other counterpart.

Section 10.9 Facsimile Signatures

In order to expedite the transaction contemplated herein, telecopied signatures may be used in
place of original signatures on this Agreement or any document delivered pursuant hereto (other
than the Deed, the notarized original of which shall be required prior to Closing). Seller and
Buyer intend to be bound by the signatures on the telecopied document, are aware that the other
party will rely on the telecopied signatures, and hereby waive any defenses to the enforcement of
the terms of this Agreement based on the form of signature. Following any facsimile transmittal,
the party shall promptly deliver the original instrument by reputable overnight courier in
accordance with the notice provisions of this Agreement.

Section 10.10 Severability

If any provision of this Agreement is determined by a court of competent jurisdiction to be
invalid or unenforceable, the remainder of this Agreement shall nonetheless remain in full force
and effect; provided that the invalidity or unenforceability of such provision does not materially
adversely affect the benefits accruing to any party hereunder.

Section l0.1l Applicable Law

This Agreement shall be governed by and construed in accordance with the laws of the State of
California without regard to any principal or rule of law that would require the application of the
law of any other jurisdiction. Buyer and Seller agree that the provisions of this Section 10.11
shall survive the Closing or any termination of this Agreement.

Section 10.12 No Third-Party Beneficiary

The provisions of this Agreement and of the documents to be executed and delivered at Closing
are and will be for the benefit of Seller and Buyer only and are not for the benefit of any third
party; and, accordingly, no third party shall have the right to enforce the provisions of this
Agreement or of the documents to be executed and delivered at Closing.

Section 10.13 Captions

The section headings appearing in this Agreement are for convenience of reference only and are
not intended, to any extent and for any purpose, to limit or define the text of any section or any
subsection hereof.

Section 10.14 Construction

The parties acknowledge that the parties and their counsel have reviewed and revised this
Agreement and that the normal rule of construction to take effect that any ambiguities are to be
resolved against the drafting party shall not be employed in the interpretation of this Agreement
or any exhibits or amendments hereto.

Section 10.15 Recordation

This Agreement many not be recorded by any party hereto without the prior written consent of
the other party hereto. The provisions of this Section 10.15 shall survive the Closing or any
termination of this Agreement.

Section 10.16 Attorneys’ Fees

Notwithstanding anything to the contrary in this Agreement, in the event either party files a
lawsuit or demand for arbitration or other legal action (including in bankruptcy court) in
connection with this Agreement, or any provisions contained herein, then the party that prevails in
such action shall be entitled to recover, in addition to all other remedies to which it is
entitled, reasonable attorneys’ fees and costs incurred in such action. Any court costs and
attorneys’ fees shall be set by the court or arbitrator and not by jury. The provisions of this
Section 10.16 shall survive the Closing or any termination of this Agreement.

Section 10.17 Time of the Essence

Time is of the essence of each and every provision of this Agreement.

Section 10.18 Joint and Several Liability

If more than one person or entity is the “Buyer” under this Agreement, the liability of such
persons and/or entities shall be joint and several.

Section 10.19 STATUTORY DISCLAIMER

THE PROPERTY DESCRIBED IN THIS INSTRUMENT MAY NOT BE WITHIN A FIRE PROTECTION DISTRICT
PROTECTING STRUCTURES. THE PROPERTY IS SUBJECT TO LAND USE LAWS AND REGULATIONS, WHICH, IN FARM OR
FOREST ZONES, MAY NOT AUTHORIZE CONSTRUCTION OR SITING OF A RESIDENCE AND WHICH LIMITS LAWSUITS
AGAINST FARMING OR FOREST PRACTICE AS DEFINED IN ORS 30.930 IN ALL ZONES. BEFORE SIGNING OR
ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE
APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY APPROVED USES AND EXISTENCE OF FIRE
PROTECTION FOR STRUCTURES.

[Signature Page Follows]

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the Effective
Date.

SELLER:

PS BUSINESS PARKS, L.P., a California limited partnership

By: PS BUSINESS PARKS, INC., a

California corporation, its sole general partner

By: /s/ Edward Stokx

Name: Edward Stokx

Title: CFO

BUYER:

Triple Net Properties, LLC, a Virginia limited liability company

	 	 	 
	By: /s/ Louis Rogers

	 	

	 

	 	 
	Name: LOUIS ROGERS

Title: PERSIDENT

	 	

Escrow Holder hereby acknowledges that it has received a fully executed or executed
counterparts of the foregoing Agreement and agrees to act as Escrow Holder thereunder and to be
bound by the provisions thereof.

ESCROW HOLDER:

CHICAGO TITLE COMPANY

By:      Date:      , 2005

	 	 	 	 	 	 	 	 	 
	Name:	 	________________________________________

	Title:	 	_______________________________________

	 
	 	Escrow No.
	 	 	—	 
	 
	 	Escrow Officer:
	 	Kandy Knotts

	 
	 	 	 	 	 	Telephone No.: (909) 384-7857

	 
	 	 	 	 	 	Fax No.: (909) 384-7876

	 
	 	Address for Notices:
	 	Chicago Title Company

	 
	 	 	 	 	 	560 E. Hospitality Lane, San Bernardino, Ca. 92408
	 
	 	Escrow Account:
	 	 	—	 
	 
	 	Bank:
	 	 	—	 
	 
	 	ABA No.:
	 	 	—	 
	 
	 	Routing Information:
	 	 	—

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