December 13, Mr. Don MacKay President, NGCOA 1036 South Monk Drive Bracebridge, Ontario P1L 1W8

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1 December 13, 2010 Mr. Don MacKay President, NGCOA 1036 South Monk Drive Bracebridge, Ontario P1L 1W8 Mr. Jeff Calderwood Executive Director National Golf Course Owners Association Canada Green Valley Crescent Ottawa, Ontario K2C 3V4 Mr. Neil Kapp C/O East Park Golf Club 1275 Hamilton Road East London, Ontario NW5 1B1 Mr. Robert Visentin CFO Clublink Corporation ULC Dufferin Street King City, Ontario L7B 1K5 Dear Don, Jeff, Neil and Robert; RE: Ontario Golf Course I am writing further to our meetings of December 1, 8 and 9, 2010 and your request that I outline our settlement discussions and agreements in letter form for your execution on behalf of the NGCOA. It is understood that this letter agreement will on execution be provided to the NGCOA membership within seven days of this date together with the Committee s letter of recommendation that all outstanding assessment complaints by NGCOA Members be resolved applying the following agreed terms. Where the golf course owner has previously sent to MPAC its financial statements for the relevant calendar years under appeal, MPAC will, within 90 days from the date of this agreement, submit to the owner and its representative if any is shown on the ARB Estatus website, an offer to settle based upon the principles set out in this letter.

2 Page 2 Where the golf course owner has not sent to MPAC the financial statements for the relevant calendar years under appeal, MPAC will within 90 days of receipt of the financial statements submit to the owner and its representative if any is shown on the ARB Estatus website an offer to settle based upon the principles set out in this letter. The golf course owner shall have 30 days from receipt of the offer to settle to accept the offer in writing to MPAC. In the event that the individual golf course owner does not: 1. Within 120 days of notification by the NGCOA of its recommendation, provide MPAC with its financial statements, MPAC is not obliged to provide an offer to settle to the golf course owner; or 2. Accept in writing within 30 days of receipt of the offer to settle forwarded by MPAC then, in both instances the golf course owner understands that its property tax appeal will forthwith proceed to a hearing before the Assessment Review Board. Implementation of the following agreement is subject to two qualifications and exceptions; First the Municipality where any particular golf course is located will have an opportunity to review the proposed new assessed value and to exercise its right to have an appeal heard by the Assessment Review Board, and Second, where MPAC, following generally accepted Appraisal Practice consistent with the Standards of the Appraisal Institute of Canada, determines that the income pro-forma approach will not produce a correct current value for any lands currently used as a golf course it shall notify the assessed person and provide its opinion of current value and the valuation particulars. The NGCOA and MPAC agree to the following terms of settlement for golf course valuations for assessment purposes: Valuation Assumption for all Ontario golf courses under appeal It will be assumed that all golf courses are operated on a for profit basis by private industry in a daily fee format. 1. The parties agree that the income approach shall be used to determine the current value of golf course for base years 1999 through 2008; and taxation years The parties agree for private and not-for-profit courses that the estimated Total Green Fees will be determined based on a typical number of rounds for a similar quality of golf course in that geographic area multiplied by the adjusted prime green fees rate. For existing public daily fee courses the golf revenue will be developed in the same manner as above. However, this estimate used in the pro-forma will reflect a stabilized amount based on the individual course actual results where the actual are an accurate reflection of the market in that area for a public daily fee course;

3 Page 3 3. The parties agree that the gross revenue for Cart Fees, Services, Other Income, Pro Shop and Food & Beverage Income used in the pro-forma will reflect a stabilized amount based on the individual course actual results where the actual are an accurate reflection of the market in that area for a public daily fee course; 4. The parties agree that the Cost of Sales for Pro Shop will be fixed at 73.7%; 5. The parties agree that the Cost of Sales for Food & Beverage will be fixed at 45%; 6. The parties agree that the Undistributed Expense applied to the Gross Margin will be determined based on the ratio between income from non-golf operations to Total Revenue segmented and varied by base year. Where non-golf course revenue reflects a ratio of 33% or greater of the Total Revenue the Undistributed Expense percentage will be fixed as set out in the table below. Where non-golf course revenue reflects a ratio of 23% or lower of the Total Revenue the Undistributed Expense percentage will be fixed as set out in the table below. Where non-golf course revenue reflects a ratio between 23% and 33% the Undistributed Expense percentage will be fixed based on a sliding scale based on the formula set out below. These percentages include a management fee and reserve. Non-Golf Income % or greater 77.1% 75.9% 75.3% 74.2% 74.3% 23% or lower 74.6% 73.4% 72.8% 71.7% 71.8% Non-Golf Income between 23% and 33% Percentage for 23%< + (Percentage for 33%< - Percentage for 23%>) divided by 33% - 23% X (Individual actual ratio 23%) = Undistributed Expense percentage. Assuming 1999 base year and individual non-golf ratio of 28.3% the formula works as follows: 71.8% + [(74.3% %) / (33.0% %) X (28.3% %)] = 73.1% Or 71.8% + (.25 X 5.3) = 73.1% 7. The parties agree that the indicated net operating income shall be capitalized by a combined capitalization rate comprising a base rate and Effective Tax Rate in accordance with MPAC s standard formula; 8. The parties agree that for base years 1999 through 2005 valuations the capitalization rate used by MPAC will be employed. For base year 2008 the following adjustment will be made: Province of Ontario: 2005 Cap rate will be reduced by 1.00% for 2008

4 Page 4 Capitalization rates for the Province of Ontario for 2005 typically fall within the following ranges: West 10% - 11% East 10% - 11% Central 10% - 12% North - 11% - 14% GTA 10%- 11% This is for demonstration only 9. The parties agree that for all base year valuations the personal property deduction shall be fixed at 9% of the capitalized value. 10. Typical accommodations for staff integral to the operation of the course is assumed to be included in income valuation for the golf course value and is not to be valued separately. 11. The parties agree that where excess land exists for a particular property the parties will make their best efforts to agree to a current value for such excess lands. 12. The parties agree that the CT apportionment of the golf course assessment between RT and CT Property Class shall be determined on the basis of the following formula: Revenue from Food & Beverage and Pro Shop Cost of Goods Sold Total Gross Margin Item Revenue Percentage Cost of Sales Net Revenue RT/CT Split Golf $1, $1, % RT F & B $250 45% $112 $138 15% Merchandise $ % $111 $39 CT $1,400 $223 $1, % 2012 Base Year MPAC and the NGCOA agree to continued communication and consultation with the NGCOA Committee in respect to the valuation approach to be employed to determine the January 1, 2012 current value of golf courses in Ontario. In advance of the return of the roll for tax year 2013 MPAC will consult with the NGCOA committee on the following matters: 1. This income approach will be carried forwarded with a view to improve the quality of data used in the analysis and in the calculations of the estimate of value; 2. The creation of approximately five to seven geographic golf regions for Ontario; 3. The establishment of three tiers within each region, which tiering is to be based on the adjusted prime green fees; 4. A preliminary assignment of all golf courses into their respective regions and tiers;

5 Page 5 5. An explanation of the criteria employed to assign a golf course to its respective tier; 6. Proposed reporting format and a definition for annual number of rounds; 7. Proposed financial reporting based on a standardized chart of accounts on golf course operations to be provided by golf course operators; 8. Assuming delivery of sufficient information from golf course operators MPAC will provide its analysis of the indicated cost of goods sold from Food & Beverage operations and Merchandise sales as well as other percentages leading to the calculation of the NOI percentages; and 9. The proposed 2012 Capitalization Rate(s) including MPAC s analysis and supporting documentation. I trust the foregoing fully sets out the parties discussions and agreements. Yours truly, Larry Hummel Vice-President Valuation and Customer Relations Business Properties MPAC cc. John Watling, MPAC Robert Buller, MPAC The NGCOA agrees to the terms of settlement for golf course valuation set out above: DATED: December, 2010 Don MacKay Jeff Calderwood Neil Kapp Robert Visetin National Golf Course Owners Association Canada