**Exhibit10.38**

 

# July24, 2002

 

Mr.Jim Lacey

2644E. Chalet Circle

Sandy,Utah 84093

 

DearJim,

 

Iam delighted you have elected to join us at American Skiing Company.  I have modified the term sheet below toreflect the adjustments we agreed to over the weekend.

 
| **Position Title:**      |   | Senior  Vice President of Sales and Marketing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| **Position  Entails:**   |   | Creating and implementing  a corporate marketing vision that promotes ski vacations, learn to ski and  snowboard programs, conference business and real estate sales.  Reengineer corporate marketing strategies,  develop e-commerce marketing and sales strategy, have the ability to  influence, direct and problem negotiate with large groups of staff.  Responsibilities include development of  human capital, communication to groups of internal and external stakeholders  along with approval and management of the company’s marketing budget. |
|                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                     |   | Position will be responsible for the oversight and  management of the Company’s partnership marketing program, database marketing  efforts, public relations and communications.  Position will also be responsible for the strategic direction  and development of the Resort sales and marketing plans.                                                                                                                                                                                                                                                       |
|                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| **Position Reports To:** |   | William  J. Fair, President and CEO                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| **Location:**            |   | 136  Heber Avenue, #303, Park City, UT 84060                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

 

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| **Start Date:**                |   | August  19, 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **Annual Salary:**             |   | $240,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **Target  Incentive Bonus:**   |   | Level #4; 30% of  base compensation, as part of the ASC Incentive Compensation Plan.  Maximum payment under this plan, based  upon resort and company-wide over-performance, is equal to 150% of bonus  potential, or 45% of base compensation.   Based upon your start date, you will be eligible for full  participation in the incentive program for Fiscal Year 2003, which commences  on August 1, 2002.                                                  |
|                           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **Long  Term Incentive Plan:** |   | Position is  eligible for participation in the Company’s Phantom Equity Plan. The level of  participation shall be at 7.5% of the total pool amount. Vesting of  participation rights in the plan shall be on an annual basis in four equal  increments of 25% commencing on the first anniversary of your hire date.  Terms of the Phantom Equity Plan shall be  governed by the Phantom Equity Agreement approved by the Company’s Board of  Directors. |
|                           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **Contract  Term:**            |   | Two years with  two options to extend for two years per extension.  Severance protection under the contract will be equal to six  months of annual base salary.                                                                                                                                                                                                                                                                                                     |
|                           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **Other:**                     |   | Company will  provide employee with a company car consistent with its then current  automobile sponsorship agreement.                                                                                                                                                                                                                                                                                                                                                    |

 

Alongwith this offer, after satisfying the required eligibility periods, you will beeligible to participate in the American Skiing Company’s benefit programsincluding health, life and dental insurance, and 401(k) program.  You will also be entitled to participate inother benefit programs including skiing/snowboarding privileges, Perfect Turnclinics, vacation, and holiday pay, as well as discounts at ASC retail storesand restaurants.

 

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Itruly look forward to working with you. If this term sheet is consistent with our understanding, please sign andreturn to me no later than July 26, 2002. Please feel free to contact me with any questions you may have at (435)615-0384.

 

Sincerely,

 
| **AMERICAN SKIING COMPANY** |
|-----------------------------|
|                        |
| /s/  William J. Fair   |
| William  J. Fair            |
| President  and CEO          |

 

WJF/pe

 

cc:           Personnel File

 

AGREED AND ACCEPTED

 
| /s/ James P. Lacey |   |
|--------------------|--------|
| Jim Lacey          |   |
|               |   |
|               |   |
| Date               |   |

 

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