CMPA Master Lease, Paragraph 11: Allocation of Revenues

11. REVENUES FROM THE LEASED PROPERTY. Revenues from the Leased
Property shall be managed in the following manner:

11.01. Except as otherwise provided herein and subject to any Sub-Leases or use agreements entered into by Lessee with tenants, users, or operators of any
part of the Leased Property, all revenues from the Leased Property shall be paid to Lessee, and shall include, but not be limited to, the following: (1) any development fees, surcharges and assessments paid pursuant to the Sub-Lease; (2) parking revenues on the Property; (3) use payments and other revenue sharing, e.g., concessions, from use of the community multi-use facility; (4) income from the conference center; (5) income from all festival uses; and, (6) all revenues derived from the sale of any naming rights related to the Project, provided that: (a) such name shall be subject to the approval of the Lessor; and (b) the proceeds from the naming rights for the Public Improvements shall be paid to the Lessee and may be used to pay operating, maintenance or upgrade costs of any of the Public Improvements.

11.02. After receipt of revenues from the Leased Property, Lessee agrees to apply the revenues for payment in accordance with the following priorities: (i) first, to pay operating and maintenance costs; (ii) second, to deposit into an operating and maintenance reserve fund, which shall be maintained as a separate and distinct account and shall contain reserves for at least six (6) months of operations based on historical experience and future projections; (iii) third, to deposit into a capital renewal and replacement fund until the sum of such fund is One Hundred Thousand Dollar ($100,000), plus five percent (5%) of Lessee’s annual gross operating revenues beginning in the year following the year in which such sum is accumulated in the fund; and (iv) fourth, to deposit into a separate fund of Lessee, with the balance in such separate fund each year being distributed to a Pensacola charity selected by the Trustees of Lessee.

11.03. Lessor agrees that an amount equal to at least ten percent (10%) of the ground lease revenue it receives will be deposited In a renewal and replacement fund to be used to improve, repair, update, and replace parts of the Public Improvements from time to time as deemed necessary by Lessor.

11.04. On or about July 1st of each year Lessee shall prepare and provide to Lessor a projection of operating costs, maintenance and renewal and replacement costs for the year beginning October 1st, and projections for the succeeding three (3) years thereafter.

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