Document:

BLUE MOUNTAIN RESORTS HOLDINGS INC.

 

-and-

 

INTRAWEST CORPORATION

 

-and-

 

BLUE MOUNTAIN RESORTS LIMITED

 

 

 

SHAREHOLDERS’ AGREEMENT

 

 

 

January 28, 1999

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	ARTICLE 1
	 	 	 	 	 
	DEFINITIONS AND INTERPRETATION
	 	 	 	 	 
	 	 	 	 	 
	1.1	 	Definitions	 	2
	1.2	 	Sections and Headings	 	9
	1.3	 	Gender, Etc.	 	10
	1.4	 	Accounting Principles 	 	10
	1.5	 	Preamble 	 	10
	1.6	 	Approval 	 	10
	1.7	 	Unanimous
    Shareholders’ Agreement	 	10
	 	 	 	 	 
	ARTICLE 2
	 	 	 	 	 
	MANAGEMENT
	 
	2.1	 	Board of Directors	 	10
	2.2	 	Initial Nominees 	 	11
	2.3	 	Meetings	 	11
	2.4	 	Officers 	 	12
	2.5	 	Auditors 	 	12
	2.6	 	Matters Requiring Approval 	 	12
	2.7	 	Shareholder Representatives	 	15
	2.8	 	Investment in Village Core Commercial Space	 	15
	2.9	 	Distribution Policy	 	16
	2.10	 	Annual Budgets and Capital Expenditures Budgets 	 	16
	2.11	 	Implementation of Approved Budgets	 	17
	2.12	 	Information 	 	17
	2.13	 	Head Office Services	 	17
	2.14	 	Agreement to Act	 	17
	2.15	 	Corporation to be Bound	 	17
	2.16	 	Claims against the Corporation	 	18
	2.17	 	Confidentiality	 	18
	 	 	 	 	 
	ARTICLE 3
	 	 	 	 	 
	RESTRICTIONS ON TRANSFER
	 	 	 	 	 
	3.1	 	No Transfer of Shares	 	19
	3.2	 	Endorsement on Certificates 	 	19

 

    	-i-

    	 

    

	3.3	 	Permitted Encumbrances	 	19
	3.4	 	Intrawest Permitted Transfers 	 	20
	3.5	 	Continuance or Amalgamation Permitted	 	20
	3.6	 	Covenants re Intrawest Permitted Transferee 	 	20
	3.7	 	Holdings Permitted Transfers	 	21
	3.8	 	Covenants re Holdings Permitted Transferee 	 	21
	3.9	 	Matters Relating to Holdings 	 	22
	3.10	 	Eligible Holdings Transferees 	 	22
	3.11	 	Covenants re Eligible Holdings Transferee	 	23
	 	 	 	 	 
	ARTICLE 4
	 	 	 	 	 
	ISSUANCES OF ADDITIONAL SHARES
	 	 	 	 	 
	4.1	 	Pre-emptive Rights	 	23
	4.2	 	Closing	 	24
	 	 	 	 	 
	ARTICLE 5
	 	 	 	 	 
	RIGHT OF FIRST OFFER
	 	 	 	 	 
	5.1	 	Right of First Offer	 	24
	5.2	 	Carryback Note and Non-Cash Consideration	 	25
	5.3	 	Withdrawal of Offer	 	25
	5.4	 	Offeree’s Right to Purchase Offered Shares	 	25
	5.5	 	Notice of Intention to Purchase	 	27
	5.6	 	Purchase of Offered Shares by Offerees 	 	27
	5.7	 	Sale to Third Party Offeror 	 	27
	5.8	 	Extension of Time 	 	27
	5.9	 	Outstanding Notices 	 	27
	5.10	 	Limitations	 	27
	5.11	 	Limitations	 	28
	 	 	 	 	 
	ARTICLE 6
	 	 	 	 	 
	DRAW ALONG RIGHTS
	 	 	 	 	 
	6.1	 	Draw Along Right	 	28
	6.2	 	Draw Along Notice 	 	29
	6.3	 	Closing Procedures 	 	30
	6.4	 	Time Limit	 	31
	 	 	 	 	 

    	-ii-

    	 

    

 

	ARTICLE 7
	 	 	 	 	 
	TAG ALONG RIGHTS
	 	 	 	 	 
	7.1	 	Tag Along Rights		31
	7.2	 	Tag Along Offer	 	31
	7.3	 	Election by Remaining Shareholder 	 	33
	7.4	 	Closing Procedures 	 	33
	7.5	 	Failure to Give Tag Along Notice	 	33
	7.6	 	Time Limit		34
	 	 	 	 	 
	ARTICLE 8
	 	 	 	 	 
	PUT OPTIONS
	 	 	 	 	 
	8.1	 	Put Options 	 	34
	8.2	 	Put Notice	 	34
	8.3	 	Price	 	35
	8.4	 	Holdings Indemnity	 	35
	8.5	 	Closing	 	36
	8.6	 	Call Notice	 	36
	8.7	 	Suspension of Put Options	 	36
	 	 	 	 	 
	ARTICLE 9
	 	 	 	 	 
	INTRAWEST CALL OPTION
	9.1	 	Call Options	 	37
	9.2	 	Call Notice	 	37
	9.3	 	Price	 	37
	9.4	 	Closing	 	37
	9.5	 	Suspension of Call Option	 	37
	 	 	 	 	 
	ARTICLE 10
	 	 	 	 	 
	RESOLUTION OF DISPUTES BETWEEN HOLDINGS AND INTRAWEST
	 	 	 	 	 
	10.1	 	Deadlock 	 	38
	 	 	 	 	 

 

    	-iii-

    	 

    

	ARTICLE 11
	 	 	 	 	 
	DEFAULT AND INVOLUNTARY TRANSFERS OF SHARES
	 	 	 	 	 
	11.1	 	Default and Involuntary Transfers of Shares	 	39
	11.2	 	Right to Purchase Pro Rata	 	40
	11.3	 	Price	 	40
	11.4	 	Exercise of Involuntary Transfer Option	 	40
	11.5	 	Closing	 	40
	 	 	 	 	 
	ARTICLE 12
	 	 	 	 	 
	CLOSING PROCEDURES
	 	 	 	 	 
	12.1	 	Closing Procedures	 	40
	12.2	 	Time and Place of Closing	 	40
	12.3	 	Consents	 	41
	12.4	 	Payment and Delivery	 	41
	12.5	 	Default of Selling Shareholder	 	41
	12.6	 	Sale Effective	 	42
	12.7	 	Non-Completion by Intrawest	 	42
	12.8	 	Power of Attorney	 	42
	12.9	 	Consent to Transfer	 	42
	12.10	 	Entitlement to Purchase Price 	 	43
	 	 	 	 	 
	ARTICLE 13
	 	 	 	 	 
	GENERAL
	 
	13.1	 	Conflict 	 	43
	13.2	 	Transferees to be Bound by Agreement	 	43
	13.3	 	No Partnership	 	43
	13.4	 	Time of the Essence	 	44
	13.5	 	Benefit of the Agreement	 	44
	13.6	 	Entire Agreement	 	44
	13.7	 	Amendments and Waivers 	 	44
	13.8	 	Assignment 	 	44
	13.9	 	Termination	 	44
	13.10	 	Severability 	 	44
	13.11	 	Notices 	 	44
	13.12	 	Governing Law 	 	45

    	-iv-

    	 

    

	13.13	 	Counterparts	 	46
	13.14	 	Further Acts 	 	46
	13.15	 	Business Day	 	46
	13.16	 	Legal Fees 	 	46
	 	 	 	 	 
	ARTICLE 14
	 	 	 	 	 
	EXECUTION
	 	 	 	 	 
	14.1	 	Execution	 	46

 

SCHEDULE A - DETERMINATION OF MARKET VALUE

SCHEDULE B - HOLDINGS SHAREHOLDERS

SCHEDULE C - DIRECTORS’ REMUNERATION

 

    	-v-

    	 

    

 

SHAREHOLDERS’ AGREEMENT

 

THIS AGREEMENT is made as of the 28th day of January, 1999

 

AMONG:

 

BLUE MOUNTAIN RESORTS HOLDINGS INC.
an Ontario corporation

 

AND:

 

INTRAWEST CORPORATION,
a British Columbia company

 

AND:

 

BLUE MOUNTAIN RESORTS LIMITED,
an Ontario corporation

 

WHEREAS:

 

A.The
Corporation is incorporated under the laws of the Province of Ontario;

 

B.The
authorized capital of the Corporation consists of an unlimited number of Common Shares, of which 243,302 Common Shares are
issued and outstanding to the Shareholders in the respective numbers set forth opposite their names as follows:

 

	Shareholder	 	No.
    and Class of Shares
	Holdings	 	121,651 Common Shares
	Intrawest	 	121,651 Common Shares

 

C.The
parties hereto wish to set forth and declare herein their relationship towards each other in the Corporation and to provide, inter
alia, for the operation and management of the Corporation’s business and affairs and the transfer and sale of shares in the
capital of the Corporation and this Agreement supersedes all prior shareholders’ agreements entered into by the shareholders
of the Corporation, as they apply to the Corporation, including, without limitation, the agreement made August 27,1982, as amended
by the agreement made December 22,1993.

 

NOW THEREFORE THIS AGREEMENT WITNESSES
that in consideration of the premises and the mutual covenants and agreements herein contained the parties hereto agree as follows:

 

 

    	-1-

    	 

    

 

ARTICLE 1

 

DEFINITIONS AND INTERPRETATION

 

1.1 Definitions.
In this Agreement, unless something in the subject matter or context is inconsistent therewith:

 

“Act” means the Ontario Business
Corporations Act as amended and in force from time to time;

 

“Additional Share” means any Share
proposed to be issued by the Corporation;

 

“Agreement” means this agreement
and all schedules attached hereto and all amendments made hereto and thereto by written agreement between the parties hereto;

 

“Annual Budget” means, in respect
of any fiscal year of the Corporation, a budget and business plan for the Corporation and its subsidiaries for such fiscal year
prepared by management of the Corporation in a form consistent with past practice, including a summary of projected consolidated
net income of the Corporation for such fiscal year and projected EBITDA for such fiscal year (each determined in accordance with
generally accepted accounting principles) and a summary of projected consolidated cash flow from operations of the Corporation
for such fiscal year and changes in the consolidated financial position of the Corporation for such fiscal year (each determined
in accordance with generally accepted accounting principles);

 

“Appraiser” has the meaning set
out in section 5.2;

 

“Approved Budget” means, collectively,
the Annual Budget or amended Annual Budget and the Capital Expenditures Budget or amended Capital Expenditures Budget, most recently
approved pursuant to subsection 2.6(8);

 

“BMR Option” has the meaning given
to it in the Real Estate Purchase Agreement;

 

“Board of Directors” means the
directors of the Corporation from time to time;

 

“Business Day” means any day other
than a Saturday, Sunday or statutory holiday in Ontario;

 

“Call Event” means the second
anniversary of the date upon which the sales of 90% of the Commercial Resort Units and 50% of the aggregate of the Horizontally
Attached Dwellings and the Multi Attached Dwellings contemplated by the Master Plan have closed;

 

“Call Notice” has the meaning
set out in section 9.2;

 

“Call Option” has the meaning
set out in section 9.1;

 

    	-2-

    	 

    

 

“Call Shares” has the meaning
set out in section 9.1;

 

“Capital Expenditures Budget”
means, in respect of any fiscal year of the Corporation, a summary of the budgeted capital expenditures and dispositions of capital
assets of the Corporation during such fiscal year prepared by management of the Corporation in a form consistent with past practice;

 

“Carryback Note” has the meaning
set out in section 5.2;

 

“Carryback Note and Non-Cash Consideration
Value” has the meaning set out in section 5.2;

 

“Cash Equivalent Purchase Price per Offered
Share” means the aggregate of:

 

		(a)	the amount of cash to be
paid for the Offered Shares as set forth in the Notice divided by the number of Offered Shares;

 

		(b)	a cash amount equal to the
fair market value of all Carryback Notes, if any, set forth in the Notice to be given in exchange for the Offered Shares divided
by the number of Offered Shares; and

 

		(c)	a cash amount equal to the
fair market value of all Non-Cash Consideration, if any, set forth in the Notice to be given in exchange for the Offered Shares
divided by the number of Offered Shares;

 

“Claim” has the meaning given
to it in section 2.16;

 

“Commercial Resort Unit” has the
meaning given to it in the Real Estate Purchase Agreement;

 

“Common Shares” means the common
shares in the capital of the Corporation;

 

“Consent” has the meaning set
out in section 12.3;

 

“Constating Documents” of the
Corporation or any subsidiary of the Corporation means the articles of incorporation, continuance, amalgamation or arrangement
and the bylaws, or other constating documents, as the case may be, of the Corporation or any subsidiary of the Corporation, as
the same may be altered or amended in compliance with the terms hereof, and from time to time in effect and includes the memorandum
and articles, articles of incorporation, continuance, amalgamation or arrangement or other constating documents of any Successor
Corporation, as the same may be altered or amended in compliance with the terms hereof, and from time to time in effect;

 

“Corporation” means Blue Mountain
Resorts Limited and any Successor Corporation;

 

    	-3-

    	 

    

 

“Depositary” has the meaning set
out in subsection 8.4;

 

‘‘Determined Sales Price”
has the respective meanings set out in section 6.2 and section 7.2;

 

“Draw Along Notice” has the meaning
set out in section 6.2;

 

“Draw Along Right” has the meaning
set out in section 6.1;

 

“Draw Along Shareholder” has the
meaning set out in subsection 6.1(1);

 

“EBITDA”
means, for any period, the consolidated revenues less the consolidated expenses of the Corporation for such period determined in
accordance with generally accepted accounting principles, plus (i) consolidated interest expense of the Corporation for such period,
plus (ii) consolidated income tax expense of the Corporation for such period, plus (iii) consolidated depreciation expense of the
Corporation for such period, plus (iv) consolidated
amortization expense of the Corporation for such period, minus (v) consolidated
interest income of the Corporation for such period, all as determined in accordance with generally accepted accounting principles;
provided, however, that to the extent taken into account in determining such amount there shall be excluded therefrom all extraordinary
or non-recurring items and all income taxes (either positive or negative) attributable to extraordinary or non-recurring gains
or losses;

 

“Eligible
Holdings Transferee” means (i) any Holdings Family Member, (ii) any one or more trusts, the only beneficiaries of which
are one or more Holdings Family Members or (iii) any
general or limited partnership, corporation or limited liability company which is wholly owned, directly or indirectly, by one
or more Holdings Family Members or any trust of which they are the sole beneficiaries;

 

“Government Authority” means Canada
and the Provinces of British Columbia and Ontario and includes any agency, department, commission, board, bureau or instrumentality
thereof and any other Person exercising executive, legislative, judicial, regulatory or administrative functions thereof or pertaining
thereto;

 

“Holdings” means Blue Mountain
Resorts Holdings Inc.;

 

“Holdings Family Member” means,
with respect to a Holdings Shareholder who is an individual, such individual and any one or more of the direct lineal descendants,
natural or adoptive, of such Holdings Shareholder, or his or her current or future spouse, and with respect to any Holdings Shareholder
that is a corporation, the individuals who directly or indirectly hold the shares of such corporation at the date hereof, and any
one or more of their lineal descendants, natural or adoptive, and their current or future spouses;

 

“Holdings Permitted Transferee”
has the meaning set out in section 3.7;

 

“Holdings Shareholders” means
those Persons listed on Schedule B to this Agreement;

 

    	-4-

    	 

    

 

“Holdings Shares” means any shares
in the capital of Holdings;

 

“Horizontally Attached Dwellings”
has the meaning given to it in the Real Estate Purchase Agreement;

 

“Indemnity Deposit” has the meaning
set out in subsection 8.4(2)(a);

 

“Independent”, with reference
to an appraiser for purposes of section 5.2 or a public chartered accountancy firm for purposes of sections 4 and 6 of Schedule
A, means such Person (i) is in fact independent of each Shareholder involved in the relevant determination of fair market value,
(ii) does not have any direct financial interest or material indirect financial interest in any Shareholder, (iii) deals at “arm’s
length” with each Shareholder within the meaning of such expression in the Tax Act and (iv) does not have significant business
dealings with any Shareholder or any of its directors who form part of management or its senior officers;

 

“Intrawest” means Intrawest Corporation;

 

“Intrawest Permitted Transferee”
has the meaning set out in section 3.4;

 

“Involuntary Transfer” has the
meaning set out in section 11.1;

 

“Involuntary Transferor” has the
meaning set out in section 11.1;

 

“Involuntary Transferor Option”
has the meaning set out in section 11.1;

 

“Involuntary Transferor Shares”
has the meaning set out in section 11.1;

 

“Master Plan” has the meaning
given to it in the Real Estate Purchase Agreement;

 

“Material Asset” means any asset
of the Corporation or any subsidiary of the Corporation which is material to the business of the Corporation and its subsidiaries,
taken as a whole, and has a fair market value of $100,000 or more;

 

“Material Contract” means any
contracts to which the Corporation is a party:

 

		(a)	which are not entered into
in the ordinary and normal course of business and which involve an obligation of the Corporation to pay an amount of $25,000 or
more in respect of any single transaction or series of transactions constituting part of an overall transaction;

 

		(b)	which affect ownership or
possession of, or title to, or any interest in, or the right to use or occupy any Material Assets (other than by way of security
for indebtedness in respect of borrowed monies), in each case in a manner material to the Corporation and its subsidiaries, taken
as a whole;

 

    	-5-

    	 

    

 

		(c)	which involve co-ownership,
joint venture or partnership arrangement in respect of or affecting any Material Assets;

 

		(d)	which involve non-competition
obligations of the Corporation or any subsidiary of the Corporation;

 

		(e)	which involve restrictive
covenants of the Corporation or any subsidiary of the Corporation that limit the ability of the Corporation or such subsidiary
to carry on its business or operations in a manner consistent with past practice or future planned activities;

 

		(f)	under which the Corporation
or any subsidiary of the Corporation is required to pay any royalty, licence fee, management fee or the like to any Person of $100,000
or more in respect of any single transaction or series of transactions constituting part of an overall transaction; or

 

		(g)	the terms and conditions
of which would conflict with, or be breached by, or result in the acceleration of any debts, liabilities or obligations of the
Corporation or any subsidiary of the Corporation in the event of any Transfer of Common Shares expressly provided for in this Agreement;

 

“Mediator” has the meaning set
out in subsection 10.1(2);

 

“Multi Attached Dwellings” has
the meaning given to it in the Real Estate Purchase Agreement;

 

“Non-Cash Consideration” has the
meaning set out in section 5.2;

 

“Notice” has the meaning set out
in section 5.1;

 

“Offer” has the meaning set out
in section 5.1;

 

“Offered Shares” has the meaning
set out in subsection 5.1(1);

 

“Offeree” has the meaning set
out in section 5.1;

 

“Offeror” has the meaning set
out in section 5.1;

 

“Other Shareholder” has the meaning
set out in section 11.1;

 

“Person” includes an individual,
a firm, a corporation, a partnership, a trust, an association, a joint venture, an unincorporated organization and every other
legal or business entity whatsoever;

 

“Place of Closing” has the meaning
set out in section 12.2;

 

    	-6-

    	 

    

 

“Purchase Offer” has the meaning
set out in subsection 6.2(1)(b);

 

“Purchase Price” has the meaning
set out in section 12.4;

 

“Purchased Shares” has the meaning
set out in subsection 12.4(1);

 

“Purchaser” has the meaning set
out in section 12.4;

 

“Put Notice” has the meaning set
out in section 8.2;

 

“Put Option” has the meaning set
out in section 8.1;

 

“Put Shares” has the meaning set
out in section 8.1;

 

“Real Estate Purchase Agreement”
means the agreement of purchase and sale dated for reference December 31, 1998 among Intrawest, the Corporation and Craigleith
Development Limited relating to the purchase and development of certain lands currently owned by the Corporation and Craigleith
and known as the “Village Core”, as amended from time to time;

 

“Related Party” of the Corporation
or any subsidiary of the Corporation means any Person that is:

 

		(a)	a corporation of which the
Corporation or such subsidiary beneficially owns or controls, directly or indirectly, voting securities carrying more than 10%
of the voting rights attached to all voting securities of such corporation for the time being outstanding;

 

		(b)	a Person that beneficially
owns or controls, directly or indirectly, voting securities carrying more than 10% of the voting rights attached to all voting
securities of the Corporation for the time being outstanding;

 

		(c)	a partner of the Corporation
or such subsidiary, other than;

 

		(i)	a
limited partner in a limited partnership of the Corporation or such subsidiary; and

 

		(ii)	a partner of the Corporation
or such subsidiary holding less than a 20% interest in a partnership the business of which is not related to the business of the
Corporation;

 

		(d)	a current or former director,
officer or shareholder of the Corporation or such subsidiary or of any corporation or business enterprise in which the Corporation
or such subsidiary has a material interest;

 

    	-7-

    	 

    

 

		(e)	a trust or estate in which
the Corporation or such subsidiary or any Person referred to in paragraphs (a) to (d) above has a material interest or as to which
the Corporation or such subsidiary or any such Person serves as trustee or in a similar capacity;

 

		(f)	a beneficiary of any trust
or estate referred to in paragraph (e) above;

 

		(g)	a relative of any Person
referred to in paragraphs (a) to (f) above;

 

		(h)	a
Person to whom any Person referred to in paragraphs (a) to (f) aboveis married or with whom any such Person is living in
a conjugal relationship outside marriage;

 

		(i)	a
relative of a Person mentioned in paragraph (h) above who has the same home as any Person referred to in paragraphs (a) to
(f) above; or

 

		(j)	any Person not dealing at “arm’s length” with the Corporation or such subsidiary within the meaning of those
expressions in the Tax Act;

 

“Remaining Shareholder” has the
meaning set out in sections 6.1 and 7.1;

 

“Share Purchase Agreement” means
the Share Purchase Agreement dated as of January 8, 1999 between the Corporation and Intrawest;

 

“Shareholder Representative”
has the meaning set out in section 2.7;

 

“Shareholders” means Holdings
and Intrawest, together with such other Persons as may become parties to this Agreement pursuant to section 13.2 and the other
provisions hereof who are holders of Shares, and “Shareholder” means any of them (provided that any such party
will cease to be a Shareholder following the Transfer by such party of all of its right, title and interest in all Shares and such
Person ceasing to be registered as the owner of any Shares);

 

“Shares” means any shares in the
capital of the Corporation and “Share” means any of them;

 

“subsidiary” has the meaning given
to the term “subsidiary” in the Act;

 

“Successor Corporation” means
any successor corporation to Blue Mountain Resorts Limited following an amalgamation, reorganization or reconstruction of Blue
Mountain Resorts Limited or statutory arrangement between Blue Mountain Resorts Limited and its shareholders (or any class thereof);

 

“Tag Along Block Shareholder”
has the meaning set out in subsection 7.1(1);

 

“Tag Along Notice” has the meaning
set out in section 7.3;

 

    	-8-

    	 

    

 

“Tag Along Offer” has the meaning set out in section 7.1;

 

“Tax Act” means the Income
Tax Act (Canada), R.S.C. 1985, c.l (5th Supp.), as amended from time to time;

 

“Third Party Offer” has the respective
meanings set out in subsections 6.1(1) and 7.1(1);

 

“Third Party Offeror” means a
Person acting as principal and dealing at arm’s length with the Offeror within the meaning of such expression in the Tax
Act;

 

“Time of Closing” has the meaning
set out in section 12.2;

 

“Transfer” of any Share means
any sale, exchange, transfer, assignment, gift, pledge, encumbrance, hypothecation, alienation, disposition or other transaction,
whether voluntary, involuntary or by operation of law (as upon a court order or declaration or execution sale or otherwise), by
which the legal or beneficial ownership of, or any security interest or other interest in, such Share passes from one Person to
another, or to the same Person in a different capacity, whether or not for value, including any sale, assignment, transfer, mortgage,
pledge, charge, disposition or other encumbrance of any interest in or control over any Share by any assignee of a bankrupt or
insolvent Shareholder, execution creditor, liquidator, receiver, mortgagee, pledgee or other security holder of a Shareholder
other than a transmission of the Share from a deceased or incompetent Shareholder to the estate or legal personal representative
of the Shareholder or a transfer of the Share to a beneficiary of the estate of the Shareholder, for so long as the Share continues
to be held by such estate or legal personal representative or by such beneficiary, and “Transfer” includes
any corporate reorganization a significant result of which is to achieve indirectly that which is not permitted directly hereunder,
and “to Transfer”, “Transferred” and similar expressions have corresponding meanings;

 

“Vendor” has the meaning set out
in section 12.4; and

 

“Withdrawal Notice” has the meaning
set out in section 5.3;

 

and the terms defined in Schedule A have the
meanings assigned to such terms therein.

 

1.2 Sections
and Headings. The division of this Agreement into Articles and sections
and the insertion of headings are for the convenience of reference only and shall not affect the construction or interpretation
of this Agreement. The terms “this Agreement”, “hereof”, “hereunder” and similar expressions
refer to this Agreement and not to any particular Article, section or other portion hereof and include any agreement or instrument
supplemental or ancillary hereto. The expressions “Article”, “section”, “subsection” and “paragraph”
followed by a number or a letter mean and refer to the specified article, section, subsection or paragraph of this Agreement.

 

    	-9-

    	 

    

 

1.3 Gender,
Etc. Except where the context requires otherwise, any reference in this Agreement
to gender includes all genders, words used herein importing the singular number include the plural and vice versa, words importing
Persons shall include individuals, partnerships, associations, trusts, unincorporated organizations and companies and vice versa,
the word “or” is not exclusive and the word “including” is not limiting (whether or not non-limiting language
(such as “without limitation” or “but not limited to” or words of similar import) is used with reference
thereto).

 

1.4 Accounting
Principles. Wherever in this Agreement reference is made to generally accepted
accounting principles, such reference shall be deemed to be to the generally accepted accounting principles from time to time approved
by the Canadian Institute of Chartered Accountants or any successor thereto, applicable as at the date on which a calculation is
made or required to be made hereunder in accordance with generally accepted accounting principles. All accounting terms not otherwise
defined herein shall have the meanings assigned to them, and all computations made pursuant to this Agreement, except as expressly
provided, otherwise shall be made in accordance with generally accepted accounting principles.

 

1.5 Preamble.
The preamble hereto is hereby incorporated into this Agreement and forms a part hereof.

 

1.6 Approval.
Unless the context otherwise requires or except as is otherwise provided, any reference to “approval”, “authorization”
or “consent” of a Shareholder means the written approval, written authorization or written consent of the Shareholder.

 

1.7 Unanimous
Shareholders’ Agreement. This Agreement is entered into between all the
Shareholders of the Corporation and, accordingly, is a unanimous shareholders’ agreement for the purposes of section 108(3)
of the Act.

 

ARTICLE 2 

 

MANAGEMENT

 

2.1 Board
of Directors. The Board of Directors will consist of eight directors. Each
Shareholder will vote or cause its Shares to be voted at each meeting of the shareholders of the Corporation at which directors
of the Corporation are elected or appointed (or execute or cause to be executed one or more consent resolutions in lieu thereof)
so:

 

		(1)	during the time when Holdings
holds greater than 90% of the issued and outstanding Common Shares, seven Persons nominated by Holdings and one Person nominated
by Intrawest for election to the Board of Directors will be elected or appointed as directors of the Corporation;

 

		(2)	during the time when Holdings
holds greater than 75% and no more than 90% of the issued and outstanding Common Shares, six Persons nominated by Holdings and
two Persons nominated by Intrawest for election to the Board of Directors will be elected or appointed as directors of the Corporation;

 

    	-10-

    	 

    

 

		(3)	during the time when Holdings
holds greater than 50% and no more than 75% of the issued and outstanding Common Shares, five Persons nominated by Holdings and
three Persons nominated by Intrawest for election to the Board of Directors will be elected or appointed as directors of the Corporation;

 

		(4)	during the time when each
of Intrawest and Holdings holds 50% of the issued and outstanding Common Shares, four Persons nominated by Intrawest and four Persons
nominated by Holdings for election to the Board of Directors will be elected or appointed as directors of the Corporation;

 

		(5)	during the time when Intrawest
holds greater than 50% and no more than 75% of the issued and outstanding Common Shares, five Persons nominated by Intrawest and
three Persons nominated by Holdings for election to the Board of Directors will be elected or appointed as directors of the Corporation;

 

		(6)	during the time when Intrawest
holds greater than 75% and no more than 90% of the issued and outstanding Common Shares, six Persons nominated by Intrawest and
two Persons nominated by Holdings for election to the Board of Directors will be elected or appointed as directors of the Corporation;
and

 

		(7)	during the time when Intrawest
holds greater than 90% of the issued and outstanding Common Shares, seven Persons nominated by Intrawest and one Person nominated
by Holdings for election to the Board of Directors will be elected or appointed as directors of the Corporation;

 

and no Shareholder will vote or suffer or permit any of its
Shares to be voted in favour of any Person for the office of director of the Corporation (or execute or suffer or permit to be
executed any consent resolution by which any Person is to be elected or appointed as a director of the Corporation) except Persons
nominated in accordance with this section 2.1.

 

2.2Initial
Nominees. The initial director nominees of Intrawest shall be Gary Raymond,
Hugh Smythe, Roger McCarthy and Lorne Bassel and the initial director nominees of Holdings shall be Gordon Canning, George Weider,
Don McGillivray and Urban Joseph. If a director vacates his or her position, the vacancy shall be filled with a nominee of the
nominator of such director within 30 days of the occurrence of such vacancy.

 

2.3Meetings.
Meetings of the Board of Directors shall be held at least once every three months. At least five Business Days’ prior notice
shall be given for each meeting unless the giving of such notice is waived by all directors before, during or after the meeting.
Such notice shall set out in reasonable detail the business to be considered at the meeting. Any director may participate in a
meeting by telephone. A quorum for the transaction of business at any meeting of the Board of Directors shall be a majority present
in person or by conference telephone, provided that such majority includes at least one nominee of Intrawest and one nominee of
Holdings; provided that if a meeting of the Board of Directors is called and a quorum is not achieved, the meeting shall be postponed
to the date which is one week after the date of such meeting, to be held at the same time 

    	-11-

    	 

    

 

and place, and the postponed meeting
shall be deemed to be duly constituted even if there is not one nominee of Intrawest and one nominee of Holdings present thereat.
Subject to section 2.6, all matters or questions requiring action or decision at any meeting of the Board of Directors shall be
determined by a majority of votes cast at such meeting. Any business to be conducted at a meeting of the Board of Directors may,
in lieu of a meeting, be conducted by resolution in writing signed by all of the directors. The Corporation shall reimburse each
of the directors for any reasonable travel costs incurred by him or her in the course of fulfilling his or her responsibilities
as director.

 

2.4  Officers.
The officers of the Corporation shall be:

 

	Name	 	Office or Offices to be Held
	George Weider	 	Chairman of the Board
	Gordon Canning	 	President and Chief Executive Officer
	Donald McGillivray	 	Vice-President
	Harold Abbotts	 	Vice-President, Finance
	William Skelton	 	Vice-President, Recreation Services
	Alvard Petten	 	Vice-President, Hospitality Services
	Bev Philp	 	Vice-President, Marketing
	David Sinclair	 	Vice-President, Human Resources

 

The officers of the Corporation shall be fully responsible
for the day-to-day operations of the Corporation, subject at all times to the provisions of section 2.6, and shall report to the
Board of Directors as required.

 

2.5 Auditors.
The auditors of the Corporation shall be Gaviller & Company, or such other firm of chartered accountants as may be appointed
from time to time by the Shareholders pursuant to subsection 2.6(17).

 

2.6 Matters
Requiring Approval. During
the time Intrawest or Holdings holds at least 25% of the issued and outstanding Common Shares, in addition to any other approval
that may be required by law, by this Agreement or pursuant to the Corporation’s Constating Documents, neither the Corporation
nor any subsidiary of the Corporation shall take any of the following actions, and none of the parties to this Agreement shall
authorize, take part in or permit any of the following actions to be taken by the Corporation or any subsidiary, unless such action
is approved by each of the Shareholders:

 

		(1)	the redemption or
                                                                  purchase for cancellation or acquisition or other retirement for value of any Shares, or any other distribution of the assets
                                                                  of the Corporation to its shareholders other than lawful distributions in accordance with the distribution policy referred to
                                                                  in section 2.9;

 

		(2)	the transfer or issuance
by the Corporation or any subsidiary of the Corporation of any shares in the capital of, or right, title or interest in, the Corporation
or any subsidiary of the Corporation or any corporation or other business entity other than the Corporation which carries on a material part of its overall business, including the making of an allotment of, or the issuance or granting of any option, right or warrant to subscribe for, purchase or otherwise acquire, any Share or any security convertible into or exchangeable for any Share;

 

    	-12-

    	 

    

 

		(3)	the conversion, exchange,
reclassification, redesignation, subdivision, consolidation or other change of or to any Shares or the amendment or variation of
any rights, privileges, restrictions or conditions attaching to any such Shares;

 

		(4)	the amalgamation, merger,
consolidation or reorganization of the Corporation or any subsidiary of the Corporation, or the approval or effecting of any compromise
or arrangement between the Corporation or any subsidiary of the Corporation and its creditors or any class of them or its Shareholders
or any class of them, in each case, whether statutory or otherwise;

 

		(5)	the filing of a voluntary
petition under any bankruptcy laws or the making of a voluntary assignment for the benefit of the creditors of the Corporation
or any subsidiary of the Corporation generally or the taking or institution of any proceedings for the winding-up, liquidation
or dissolution of the Corporation or any subsidiary of the Corporation;

 

		(6)	the taking of any action
to alter or amend or change the Constating Documents of the Corporation or any subsidiary of the Corporation;

 

		(7)	the entering into of any
transaction, contract, commitment or agreement with any Related Party of the Corporation or of a subsidiary of the Corporation
where the subject matter of the transaction, contract, commitment or agreement has a value in excess of, or such transaction, contract,
commitment or agreement may involve the Corporation or any of its subsidiaries being, or becoming obligated to make payments or
capital expenditures or incurring liabilities, in the aggregate over the term of such transaction, contract, commitment or agreement
in excess of, $50,000 in respect of any single transaction or series of transactions constituting part of an overall transaction,
provided that where the value of such transaction, contract, commitment or agreement is less than $50,000, such transaction, contract,
commitment or agreement is on terms and at a cost or for a price or consideration to the Corporation or any of its subsidiaries
which are no less advantageous to the Corporation or such subsidiary than would generally be available to the Corporation or such
subsidiary from Persons acting as principal and dealing at arm’s length with the Corporation or such subsidiary within the
meaning of such expression in the Tax Act;

 

		(8)	the adoption or approval
of an Annual Budget, an amended Annual Budget, a Capital Expenditures Budget or an amended Capital Expenditures Budget;

 

    	-13-

    	 

    

 

		(9)	except for indebtedness
for or in respect of borrowed monies in an amount less than $15,000,000 in the aggregate for the Corporation and its subsidiaries
and except as provided for in the Approved Budget, borrow any money, assume, incur or become liable upon any indebtedness for or
in respect of borrowed money, give any security or assume, incur or become liable or undertake, commit or agree to assume, incur
or become liable in respect of any indebtedness for borrowed monies of any Person;

 

		(10)	except as provided for in
the Approved Budget, authorize or make any capital expenditures in excess of, or purchase or otherwise acquire or sell, transfer,
lease, exchange or otherwise dispose of or encumber, or agree, absolutely or contingently, to purchase or otherwise acquire or
sell, transfer, lease, exchange or otherwise dispose of or encumber any single asset, or property or right having a value in excess
of $100,000 for any item or series of items constituting part of a single item, or $100,000 in the aggregate in any fiscal year
for the Corporation and its subsidiaries;

 

		(11)	enter into, or make any
material modification or material amendment to any Material Contract or waive (in whole or in part) any material rights under any
Material Contract, other than as provided for in the Approved Budget;

 

		(12)	establish, adopt, enter
into, make or amend any collective bargaining, bonus, profit sharing, compensation, pension, retirement, deferred compensation,
employment, termination, severance or other plan, agreement, trust, fund, policy or arrangement for the benefit of any director,
officer or employee of the Corporation or any of its subsidiaries, or make any award or payment to any director, officer or employee
of the Corporation or any of its subsidiaries except in the ordinary course of business and consistent with past practice and except
as provided for in the Approved Budget; provided, however, that compensation paid to the directors of the Corporation set out in
Schedule C for all services rendered to the Corporation by them will remain at the levels set out in Schedule C until the first
anniversary of the date of this Agreement;

 

		(13)	grant financial assistance
to any Person, directly or indirectly, by way of loan, guarantee, the provision of security or otherwise, other than financial
assistance where the amount or value of the loan, guarantee, security or other financial assistance provided to or for the benefit
of any Person or in respect of any single transaction or series of transactions constituting part of an overall transaction, does
not exceed $50,000 and the amount or value of the aggregate financial assistance in any financial year of the Corporation does
not exceed $50,000;

 

		(14)	subscribe for, take, purchase,
acquire or hold, or undertake, commit or agree to subscribe for, take, purchase, acquire or hold, shares or other securities of
any Person or the whole or any substantial part of the assets and liabilities of any Person comprising a business;

 

    	-14-

    	 

    

 

		(15)	enter into, create, dissolve or terminate any partnership, joint venture or any arrangement for the sharing of profits, co-ownership
or reciprocal concession with any Person pursuant to which the Corporation and its subsidiaries is or may become obligated to make
payments or incur liabilities, in the aggregate, over the term of the partnership, joint venture or profit sharing, co-ownership
or reciprocal concession arrangement, in excess of $50,000;

 

		(16)	the taking of any action
which would result in any material change in the nature of the business of the Corporation or the implementation of any other material
change in the present business, affairs, capitalization, distribution policy or practice, or financial condition of the Corporation
and its subsidiaries, taken as a whole, other than any change in general business conditions or any change in the markets or prices
for the Corporation’s principal services;

 

		(17)	any change in the fiscal
year end of the Corporation or of the auditors of the Corporation; or

 

		(18)	any change in the officers
of the Corporation;

 

provided that nothing contained in this section 2.6 shall prohibit
the making of any non-discretionary expenditures or any expenditures necessary for the normal repair and maintenance of any asset
or property owned or held under lease or licence by the Corporation or any subsidiary of the Corporation or to avoid the suspension
of necessary services to or the provisions of necessary services by the Corporation or any subsidiary of the Corporation, The provisions
of this section 2.6 do not apply to transactions between the Corporation and any of its wholly-owned subsidiaries or between any
of its wholly-owned subsidiaries.

 

2.7Shareholder
Representatives. For the purposes of approving the matters set out in section
2.6, each of the Shareholders shall appoint two representatives (“Shareholder Representatives”) and the initial Shareholder
Representatives shall be as follows:

 

	Intrawest	 	Holdings
	Gary Raymond	 	Gordon Canning
	Hugh Smythe	 	George Weider

 

Each of the Shareholder Representatives shall have full authority
to act on behalf of and to bind the Shareholder who appointed him or her, and all decisions and determinations made by a Shareholder
Representative in respect of matters under this Agreement shall be binding on the Shareholder who appointed him or her. Each of
the Shareholders may at any time and from time to time by notice replace any one or both of its Shareholder Representatives and
any Shareholder Representative so replaced shall cease to be a Shareholder Representative upon the delivery of a copy of such notice
to the other Shareholder.

 

    	-15-

    	 

    

 

2.8
Investmentin Village Core Commercial Space. Notwithstanding
any other provision of this Agreement, as long as Holdings owns at least 25% of the issued and outstanding Common Shares, Holdings
will have the unfettered ability in its sole discretion to cause the Corporation to exercise the BMR Option.

 

2.9 Distribution
Policy. Subject to the provisions of the Act in respect of the making of distributions,
including the payment of dividends, and unless the making of a distribution, including the declaration and payment of dividends,
causes a default in the Corporation’s loan agreements, each of the Shareholders acknowledges and agrees that the distribution
policy of the Corporation shall be:

 

		(1)	during each fiscal year
of the Corporation, the Corporation shall distribute to the holders of its Common Shares an aggregate amount equal to $576,000;
and

 

		(2)	in addition to the distributions
set out in subsection (1) above, for each of the first two years following the date of this Agreement, the Corporation shall distribute
to the holders of its Common Shares an aggregate amount equal to $300,000.

 

2.10Annual
Budgets and Capital Expenditures Budgets. Management of the Corporation
will prepare and submit to the Shareholders for approval pursuant to subsection 2.6(8): (i) no
later than November 1 in each fiscal year an Annual Budget in respect of such fiscal year and the first 45 days of the immediately
following fiscal year of the Corporation for approval pursuant to subsection 2.6(8) together with a draft Capital Expenditures
Budget for such fiscal year for informational purposes only; and (ii) no later than February 15 in each fiscal year, a final Capital
Expenditures Budget for such fiscal year for approval pursuant to subsection 2.6(8). In addition, if during any fiscal year of
the Corporation following approval by the Shareholders of an Annual Budget in respect of such fiscal year management of the Corporation,
in good faith, believes, or either of the Shareholders notifies the Corporation that it, in good faith, believes it is reasonably
likely that EBITDA in respect of such fiscal year will be less than 75% of budgeted EBITDA in respect of such fiscal year as set
out in such Approved Budget, as promptly as reasonably possible management of the Corporation will prepare and submit to the Shareholders
for approval pursuant to subsection 2.6(8) an amended Annual Budget and an amended Capital Expenditures Budget in respect of such
fiscal year. Promptly (and in any event within 30 days after the same is submitted to the Shareholders), a meeting of the Shareholders
will be held at which the Shareholders will either approve pursuant to subsection 2.6(8) or disapprove any Annual Budget or Capital
Expenditures Budget, as the case may be, submitted to the Shareholders pursuant to the foregoing provisions of this section 2.10,
or an adjustment thereof. If any such Annual Budget or Capital Expenditures Budget, as the case may be, is not approved by the
Shareholders pursuant to subsection 2.6(8) at such a meeting of the Shareholders, management of the Corporation will submit revisions
of such Annual Budget or Capital Expenditures Budget, as the case may be, to the Shareholders within 15 days thereafter, which
revised Annual Budget or Capital Expenditures Budget, as the case may be, will be subject to approval or disapproval at a further
meeting of the Shareholders which will be held within 15 days after such revised Annual Budget or Capital Expenditures Budget,
as the case may be, is submitted to the Shareholders. If an Annual Budget or Capital Expenditures Budget, as the case may be, or
an adjustment thereof, is not approved by the Shareholders pursuant to subsection 2.6(8) at such further meeting of the Shareholders,
thereafter, until an Annual Budget or Capital Expenditures Budget, as the case may be, is approved by the Shareholders pursuant
to subsection 2.6(8), the Annual Budget or Capital Expenditures Budget, as the case may be, shall be deemed to be the Annual Budget
or Capital Expenditures Budget, as the case may be, most recently approved by the Shareholders pursuant to subsection 2.6(8), mutatis
mutandis, except that there shall be excluded therefrom any acquisition, expansion or disposition of any Material Assets.

 

    	-16-

    	 

    

 

2.11 Implementation
of Approved Budgets.
Management of the Corporation will take all reasonable steps to implement and adhere to each Approved Budget for so long as such
Approved Budget remains in effect, provided that management of the Corporation will be permitted to deviate from an Approved Budget
to the extent management of the Corporation in good faith believes it is necessary or desirable to do so and such deviation is
not material when viewed as part of such Approved Budget as a whole, or is otherwise made in accordance with section 2.6, and provided
management of the Corporation notifies the Shareholders of such deviation within 15 days after the occurrence thereof.

 

2.12 Information.
As promptly as reasonably possible (and, in any event, within 90 days following the end of each fiscal year of the Corporation),
the Corporation will distribute to the Shareholders audited consolidated financial statements of the Corporation as at the last
day of such fiscal year and for the fiscal year of the Corporation then ended, prepared in accordance with generally accepted accounting
principles, together with a comparison of the actual operations and the Approved Budget for such fiscal year (if applicable, as
most recently amended) prepared by management of the Corporation. Each Shareholder will have the right to request additional financial
reports and information not expressly provided for herein in order to satisfy reporting or other requirements under any law, rule
or regulation applicable to such Shareholder and the Corporation will provide any such additional financial reports and information
to such Shareholder as promptly as reasonably possible after such request is made.

 

2.13 Head
Office Services. Intrawest agrees that it shall provide, upon request by the Corporation
and on terms agreed upon between Intrawest and the Corporation, head office services to the Corporation.

 

2.14 Agreement
to Act.
Subject as herein after provided, each of the parties covenants and agrees to execute and deliver, and to cause to be executed
and delivered, all such instruments and other documents and, subject to the other provisions hereof, to exercise or cause to be
exercised their influence and any and all voting rights held by them, respectively, from time to time, and to do or cause to be
done all such other acts and things in order that all provisions of this Agreement shall be fully and effectively carried out,
implemented and given effect to in accordance with the terms hereof and all such changes to the Constating Documents, resolutions
and other documents governing the Corporation or any subsidiary of the Corporation as may be necessary or desirable to accurately
reflect and give effect to the provisions of this Agreement will be made.

 

2.15 Corporation
to be Bound. The Corporation confirms its knowledge of this Agreement and
will carry out and be bound by the provisions of this Agreement to the full extent that it has the capacity and power at law to
do so.

 

    	-17-

    	 

    

 

2.16 Claims
against the Corporation. Notwithstanding any other provision of this Agreement,
the parties agree that if Intrawest makes a claim against the Corporation for compensation or indemnity under the Share Purchase
Agreement or the Real Estate Purchase Agreement, or any documents or agreements contemplated thereunder other than this Agreement,
or any other claim against the Corporation for damages arising as a result of any of the transactions contemplated by any of those
agreements or documents (a “Claim”), Holdings shall have the sole right to dispute and contest, and assume the defence
of such Claim on behalf of the Corporation, the costs relating to such Claim to be borne by the Corporation. Intrawest agrees that
notwithstanding any other provision of this Agreement, upon making a Claim, it shall have no further right to receive information
with respect to such Claim from the Corporation, other than as the Corporation may be required to disclose in accordance with applicable
law, that direction of the defence of such Claim on behalf of the Corporation shall be the sole responsibility of Holdings and
that neither Intrawest nor any of its nominee directors shall have any further involvement with respect to the defence of such
Claim on behalf of the Corporation.

 

2.17 Confidentiality.
The Shareholders acknowledge that they may have access to and may be entrusted with information concerning the business of the
Corporation and its subsidiaries (collectively, the “Information”). Accordingly, each of the Shareholders hereby covenants
and agrees that it will not at any time disclose Information to any Person provided that:

 

		(a)	each Shareholder may disclose
such Information to consultants, legal advisors, auditors, insurance consultants, financial institutions, investment bankers and
other third parties in accordance with prudent business practice as such Shareholder may reasonably consider to be necessary or
desirable for the bona fide purposes of its business and affairs and having reasonable regard for the interests of the Corporation
in the circumstances, provided that such Shareholder obtains reasonable assurances from the recipient of such Information that
the Information will be kept confidential by such recipient;

 

		(b)	Intrawest may disclose such
portions of the Information to financial analysts and shareholders of Intrawest in accordance with prudent business practice, provided
(i) such disclosed Information shall not contain any personal information relating to the directors, officers or employees of the
Corporation and its subsidiaries, including the salary or other terms of such Person’s employment, and (ii) with respect
to any press release issued by Intrawest with respect to the business and affairs of the Corporation, Holdings shall approve the
form of such press release prior to its release, such approval not to be unreasonably withheld;

 

		(c)	each Shareholder may
                                                                  disclose Information which is required to be disclosed by such Shareholder under any applicable law or regulation or any
                                                                  requirement of any judicial, administrative or governmental authority, including any applicable securities laws or
                                                                  regulations                                                                   and the rules of any stock exchange applicable
                                                                  to such Shareholder; and

 

		(d)	each Shareholder may disclose
any Information to the extent such disclosure has been approved by the other Shareholder.

 

    	-18-

    	 

    

 

ARTICLE
3 

 

RESTRICTIONS
ON TRANSFER

 

3.1 No
Transfer of Shares. Except as expressly provided for in this Agreement,
no Shareholder shall Transfer or suffer or permit any Transfer of, any Share unless, prior to the Transfer of such Share, all of
the Shareholders have consented in writing to such Transfer and the transferee or Person acquiring any interest or control over
the Share, is a Shareholder or complies with section 13.2.

 

3.2 Endorsement
on Certificates. Share certificates of the Corporation shall bear the following
legend either as an endorsement or on the face thereof:

 

“The shares represented by this certificate
are subject to certain restrictions upon transfer and voting and all the other terms and conditions of that certain Shareholders’
Agreement dated January 28th, 1999 as the same may be amended from time to time, a copy of which is on file at the registered office
of the Corporation. A holder of the shares represented by this certificate may obtain, upon written request and without charge,
a copy of such Shareholders’ Agreement, as may be amended from time to time.”

 

3.3 Permitted
Encumbrances. Notwithstanding section 3.1, a Shareholder may hypothecate,
mortgage, pledge, charge or otherwise encumber any interest in any Shares held by such Shareholder to any chartered bank or other
institutional lender provided that the bank or other institutional lender agrees with each other Shareholder that the exercise
by it of any right or remedy that it is entitled to in connection therewith shall be subject to the following restrictions:

 

		(1)	the bank or other lender
shall not be entitled to demand that any Shares be Transferred on the register of the Corporation to the name of such bank or lender
or any nominee of such bank or lender;

 

		(2)	the bank or other lender
shall not be entitled to Transfer any interest in any Share except in accordance with the provisions of this Agreement; and

 

		(3)	the bank or other lender
will assign absolutely all of its interest in such Shares to any Shareholder or Shareholders who may subsequently be entitled to
acquire such Shares pursuant to this Agreement upon payment by such Shareholder or Shareholders to the bank or other lender of
all amounts to which the Shareholder hypothecating, mortgaging, pledging, charging or otherwise encumbering such Shares is entitled
pursuant to this Agreement in payment for such Shares, and each Shareholder hereby irrevocably authorizes and directs each other
Shareholder to pay all such amounts to which such Shareholder is so entitled to any bank or other lender to which it may hypothecate,
mortgage, pledge, charge or otherwise encumber any Shares held by such Shareholder.

 

    	-19-

    	 

    

 

3.4 Intrawest
Permitted Transfers. Notwithstanding anything to the contrary
contained herein, Intrawest may Transfer all or any of its Shares and rights under this Agreement to a corporation in which
Intrawest owns, directly or indirectly, voting shares carrying more than 75% of the voting rights attached to all voting
shares of such corporation then outstanding or a partnership or other non-corporate business entity in which Intrawest owns,
directly or indirectly, more than 75% of the total equity interests therein and directly or indirectly controls the
management thereof (an “Intrawest Permitted Transferee”) and any such Intrawest Permitted Transferee may Transfer
all or any of its Shares or rights under this Agreement to Intrawest or to any other Intrawest Permitted Transferee at any
time and from time to time, free of the restrictions otherwise applicable thereto under the terms of this Agreement on the
condition that:

 

		(1)	Intrawest provides prior
written notice thereof to the Corporation and to each of the other Shareholders;

 

		(2)	the Intrawest Permitted
Transferee executes such documents as may be reasonably required by any of the Shareholders to reflect such Transfer on and subject
to the terms of this Agreement including any document required pursuant to section 13.2;

 

		(3)	Intrawest shall remain liable
for the performance of all of its obligations hereunder, including, without limitation, those under Article 8; and

 

		(4)	if Holdings holds at least
25% of the issued and outstanding Common Shares at the time of such Transfer, Intrawest obtains the prior written consent of Holdings
to such Transfer (such consent not to be unreasonably withheld).

 

In the event of a Transfer pursuant to this section 3.4 of
less than all of the Shares held by Intrawest to an Intrawest Permitted Transferee, Holdings and Intrawest shall promptly execute
such documents as may be reasonably required to set forth new provisions in this Agreement or amend any existing provisions of
this Agreement so that Intrawest and the Intrawest Permitted Transferee will be treated as one and the same Person for all purposes
of this Agreement, mutatis mutandis.

 

3.5 Continuance
or Amalgamation Permitted. Notwithstanding any other provision of this
Agreement, nothing in this Agreement will restrict the continuance or amalgamation of Intrawest or any Intrawest Permitted Transferee
and the acquisition or continued ownership by the Corporation continuing following such continuance or amalgamation of Shares held
by Intrawest or such Intrawest Permitted Transferee.

 

3.6 Covenants
re Intrawest Permitted Transferee. So long as any Intrawest Permitted Transferee
continues to be a Shareholder, such Intrawest Permitted Transferee shall not, and Intrawest shall not permit such Intrawest Permitted
Transferee, or any corporation or other entity holding securities of such Intrawest Permitted Transferee, to issue any securities
or additional shares of any class or kind whatsoever, or permit the transfer of any of its securities or shares of any class or
kind whatsoever, or take or omit to take, any action or permit any other circumstance to occur if, as a result thereof, Intrawest
will cease to own, directly or indirectly, voting shares carrying more than 75% of the voting rights attached to all voting shares
of such Intrawest Permitted Transferee if such Intrawest Permitted Transferee is a corporation, or cease to own, directly or indirectly,
more than 75% of the total equity interests in, and directly or indirectly control the management of, such Intrawest Permitted
Transferee if such Intrawest Permitted Transferee is a partnership or other non-corporate business entity.

 

    	-20-

    	 

    

 

3.7 Holdings
Permitted Transfers. Notwithstanding anything to the contrary contained
herein, Holdings may Transfer any or all of its Shares and rights under this Agreement to a corporation in which Eligible Holdings
Transferees own, directly or indirectly, all of the shares of such corporation then outstanding or a partnership or other non-corporate
business entity in which Holdings owns, directly or indirectly, all of the total equity interests therein and directly or indirectly
controls the management thereof (a “Holdings Permitted Transferee”) and any such Holdings Permitted Transferee may
Transfer any or all of its Shares or rights under this Agreement to Holdings or to any other Holdings Permitted Transferee at any
time and from time to time, free of the restrictions otherwise applicable thereto under the terms of this Agreement on the condition
that:

 

		(1)	Holdings provides prior
written notice thereof to the Corporation and to each of the other Shareholders;

 

		(2)	the Holdings Permitted Transferee
executes such documents as may be reasonably required by any of the Shareholders to reflect such Transfer on and subject to the
terms of this Agreement, including any document required pursuant to section 13.2;

 

		(3)	Holdings shall remain liable
for the performance of all of its obligations hereunder; and

 

		(4)	if Intrawest holds at least
25% of the issued and outstanding Common Shares at the time of such Transfer, Holdings obtains the prior written consent of Intrawest
to such Transfer (such consent not to be unreasonably withheld).

 

In the event of a Transfer pursuant to this section 3.7 of less
than all of the Shares held by Holdings to a Holdings Permitted Transferee, Holdings and Intrawest shall promptly execute such
documents as may be reasonably required to set forth new provisions in this Agreement or amend any existing provisions of this
Agreement so that Holdings and the Holdings Permitted Transferee will be treated as one and the same Person for all purposes of
this Agreement, mutatis mutandis.

 

3.8Covenants
re Holdings Permitted Transferee. So long as any Holdings Permitted Transferee
continues to be a Shareholder, such Holdings Permitted Transferee shall not, and Holdings shall not permit such Holdings Permitted
Transferee, or any corporation or other entity holding securities of such Holdings Permitted Transferee, to issue any securities
or additional shares of any class or kind whatsoever, or permit the transfer of any of its securities or shares of any class or
kind whatsoever, or take or omit to take, any action or permit any other circumstance to occur if, as a result thereof, Eligible
Holdings Transferees will cease to own, directly or indirectly, all of the shares of such Holdings Permitted Transferee if such
Holdings Permitted Transferee is a corporation, or cease to own, directly or indirectly, all of the total equity interests in,
and directly or indirectly control the management of, such Holdings Permitted Transferee if such Holdings Permitted Transferee
is a partnership or other non-corporate business entity.

 

    	-21-

    	 

    

 

3.9 Matters
Relating to Holdings.

 

(1) Covenants
of Holdings

 

Holdings acknowledges that the identity
of its shareholders is of substantial importance to Intrawest and covenants and agrees that it will not, without the prior consent
in writing of Intrawest, such consent not to be unreasonably withheld:

 

		(a)	issue any securities or
additional shares of any class or kind whatsoever including, without limitation, Holdings Shares, except to a Holdings Shareholder
or an Eligible Holdings Transferee; or

 

		(b)	permit the transfer of any
of its securities or its shares of any class or kind whatsoever including, without limitation, Holdings Shares, except to a Holdings
Shareholder or an Eligible Holdings Transferee.

 

(2) Further
Assurances by Holdings

 

From time to time as reasonably required
by Intrawest, Holdings will provide to Intrawest:

 

		(a)	a list of its shareholders,
together with a description of the number of shares beneficially owned by each shareholder; and

 

		(b)	a copy of its articles of
incorporation and bylaws and any amendments thereto;

 

in each case, if required by Intrawest, certified to be correct
by a duly elected or appointed officer of Holdings.

 

3.10 Eligible
Holdings Transferees. Notwithstanding anything to the contrary contained
herein, any Holdings Shareholder may transfer all or any of the shares of Holdings held by such Holdings Shareholder to any Eligible
Holdings Transferee and any Eligible Holdings Transferee may transfer all or any of its shares of Holdings to any Holdings Shareholder
or to any other Eligible Holdings Transferee at any time and from time to time. In addition, notwithstanding any other provision
of this Agreement, the transmission of any shares of Holdings from a deceased or incompetent Holdings Shareholder to the estate
or legal representative of such Holdings Shareholder or the transfer of any shares of Holdings to a beneficiary of the estate of
such Holdings Shareholder will not constitute a breach of subsection 3.9(1) for so long as such shares of Holdings continue to
be held by such estate or legal representative or by such beneficiary or if such estate or legal representative or such beneficiary
transfers such shares of Holdings to any Holdings Shareholder or an Eligible Holdings Transferee.

 

    	-22-

    	 

    

 

3.11 Covenants
re Eligible Holdings Transferee. So long as any Eligible Holdings Transferee
continues to hold any shares of Holdings, such Eligible Holdings Transferee shall not issue any securities or additional shares
of any class or kind or other ownership interests in such Eligible Holdings Transferee or, where such Eligible Holdings Transferee
is a trust, designate any additional beneficiaries of such Eligible Holdings Transferee, or permit the transfer of any of its securities
or shares of any class or kind or other ownership interests in such Eligible Holdings Transferee or, where such Eligible Holdings
Transferee is a trust, the designation of any additional beneficiaries of such Eligible Holdings Transferee, or take or omit to
take any action or permit any other circumstance to occur if, as a result thereof:

 

		(1)	all of the shares of or
100% of any other ownership interests in such Eligible Holdings Transferee will cease to be owned, directly or indirectly, by one
or more Holdings Family Members; or

 

		(2)	all of the beneficiaries
of such trusts will not be Eligible Holdings Transferees;

 

provided that the foregoing provisions of this section 3.11
will not be breached by the transmission of any shares of or other ownership interest in, or, where the Eligible Holdings Transferee
is a trust, any beneficial interest in, such Eligible Holdings Transferee from a deceased or incompetent shareholder of or holder
of an ownership interest in, or beneficiary of, such Eligible Holdings Transferee to the estate or legal representative of such
shareholder, holder or beneficiary or the transfer of any shares of or other ownership interest in or, where the Eligible Holdings
Transferee is a trust, any beneficial interest in, such Eligible Holdings Transferee to a beneficiary of the estate of such shareholder,
holder or beneficiary for so long as such shares of or other ownership interests in, or, where the Eligible Holdings Transferee
is a trust, such beneficial interest in, such Eligible Holdings Transferee continue to be held by such estate or legal representative
or by such beneficiary or if such estate or legal representative or such beneficiary transfers such shares of Holdings to any Holdings
Shareholder or an Eligible Holdings Transferee.

 

ARTICLE 4

 

ISSUANCES OF ADDITIONAL SHARES

 

4.1 Pre-emptive
Rights. If the Corporation is to issue any Additional Shares, the Corporation
shall first offer such Additional Shares to all Shareholders by notice given to them of the Corporation’s intention to issue
Additional Shares, the number thereof to be so issued and the issue price per Additional Share. The Shareholders shall have the
right to purchase the Additional Shares so offered at the issue price per Additional Share set forth in such notice, pro rata based
upon the number of Common Shares held by the Shareholders at the date such notice is given. Each Shareholder shall have 20 Business
Days from the date such notice is given in which to notify the Corporation in writing that such Shareholder wishes to purchase
all or any of the Additional Shares so offered at such issue price per Additional Share which notice will specify either that the
Shareholder is electing to take up and pay for all of the Additional Shares offered to it or the number or portion of the Additional
Shares offered to it that the Shareholder wishes to purchase and upon receipt of such notice by the Corporation a binding contract
for the sale and purchase of the Shares

 

    	-23-

    	 

    

 

referred to in such notice will be deemed to be formed between
such Shareholder and the Corporation. If either Shareholder advises the Corporation in writing that it will not be exercising its
right to acquire all of the Additional Shares offered to it, does not exercise such right to acquire all of the Additional Shares
offered to it within the time stipulated in this section 4.1 or exercises such right in respect of less than all of the Additional
Shares offered to it, the Corporation will, following expiry of the foregoing 20 Business Day period, offer by notice given to
the Shareholder who elected to take up and pay for all of the Additional Shares initially offered to it, the Additional Shares
in respect of which the other Shareholder has not exercised its rights to acquire, and such Shareholder shall have the right to
purchase the Additional Shares so offered at such issue price per Additional Share. The Shareholder shall have 10 Business Days
from the date such subsequent notice is given in which to notify the Corporation in writing that such Shareholder wishes to purchase
all or any of the Additional Shares so offered at such issue price per Additional Share which notice will specify either that the
Shareholder is electing to take up and pay for all of the Additional Shares offered to it or the number or portion of the Additional
Shares offered to it that the Shareholder wishes to purchase and upon receipt of such notice by the Corporation a binding contract
for the sale and purchase of the Shares referred to in such notice will be deemed to be formed between such Shareholder and the
Corporation. After the expiration of such period of 20 Business Days or 10 Business Days, as applicable, the Additional Shares
not so taken up by the Shareholders may be issued to such Persons who are not Shareholders of the Corporation at such issue price
per Additional Share provided in the notice, provided that all such Additional Shares must be issued within 100 days from the date
such notice is given and such Persons to whom Additional Shares are so issued agree to be bound by this Agreement and to become
parties hereto.

 

4.2Closing.
The closing of a transaction contemplated in section 4.1 shall take place on the 10th Business Day following, as applicable, the
expiry of the 20 Business Day period referred to in section 4.1, in respect of the purchase and sale of Additional Shares in response
to an initial notice given by the Corporation offering to sell Additional Shares pursuant to section 4.1, or the expiry of the
10 Business Day Period referred to in section 4.1, in respect of the purchase and sale of Additional Shares in response to a subsequent
notice under section 4.1.

 

ARTICLE 5

 

RIGHT OF FIRST OFFER

 

5.1Right
of First Offer. Any Shareholder (the “Offeror”) who desires
to Transfer all or any of its Common Shares shall first give notice of such proposed Transfer (the “Notice”) to the
other Shareholder (the “Offeree”) and to the Corporation and shall set out in the Notice:

 

		(1)	the number of Common Shares
that the Offeror desires to Transfer (the “Offered Shares”); and

 

		(2)	the terms upon which the
Offeror desires to Transfer the Offered Shares, including the amount and form of consideration to be paid for the Offered Shares
and all of the terms pursuant to which such consideration shall be paid (including, but not limited to, all payment terms and a
description of the security for any debt to be issued).

 

    	-24-

    	 

    

 

If, prior to delivery of the Notice, the Offeror has received
a bona fide offer (an “Offer”) from a Third Party Offeror to purchase the Offered Shares which Offer has been accepted
or remains open for acceptance, or the Offeror has solicited or entered discussions or negotiations with a Third Party Offeror
concerning a possible sale of the Offered Shares by such Third Party Offeror (unless such discussions or negotiations have been
discontinued and at the time of delivery of the Notice the Offeror does not propose to resume discussions or negotiations with
such Third Party Offeror concerning a possible sale of the Offered Shares or anticipate that discussions or negotiations with such
Third Party Offeror concerning such a sale will be resumed by such Third Party Offeror), the Notice will contain the name and address
of such Third Party Offeror and be accompanied by a copy of the Offer or a summary setting out in reasonable detail the details
and status of such discussions or negotiations, as the case may be, and if, after delivery of the Notice but prior to the expiry
of the period set out in section 5.5 below, the Offeror receives such an Offer, or solicits or enters such discussions or negotiations,
the Offeror will promptly deliver to the Offeree such Offer or summary of the status of such discussions or negotiations, as the
case may be.

 

5.2 Carryback
Note and Non-Cash Consideration. If the Notice provides that any portion
of the consideration to be paid for the Offered Shares is in the form of a promissory note (a “Carryback Note”) or
any consideration other than cash or a Carryback Note (the “Non-Cash Consideration”), the fair market value (the “Carryback
Note and Non-Cash Consideration Value”) of all Carryback Notes and Non-Cash Consideration may be determined by agreement
of the Offeror and the Offeree. Unless the Carryback Note and Non-Cash Consideration Value has been determined by agreement of
the Offeror and the Offeree, the Offeror or the Offeree shall be entitled, at any time, to require such fair market value to be
determined by a qualified appraiser (an “Appraiser”) who has recognized competence in appraising property of the type
the fair market value of which is to be determined and who is Independent, as agreed to by the Offeror and the Offeree within five
Business Days of the date of the Notice, or, failing agreement within such five Business Day period, shall be determined by an
Appraiser appointed by a judge of the superior court of Ontario on the application of either the Offeror or the Offeree. The fees
and disbursements of any Appraiser shall be borne by the Corporation.

 

5.3 Withdrawal
of Offer. Notwithstanding any other provision in this Article 5, the Offeror
shall have the right to withdraw the Notice by giving notice (a “Withdrawal Notice”) on or before five Business Days
after the determination by the Appraiser of the Carryback Note and Non-Cash Consideration Value to the Offeree. If the Offeror
fails to deliver a Withdrawal Notice within such five Business Day period, this provision shall be deemed waived by the Offeror.
Upon the delivery of a Withdrawal Notice, the Offeror shall not be permitted to Transfer any of the Offered Shares without once
again complying with all the provisions of this Article 5.

 

5.4Offeree’s
Right to Purchase Offered Shares. Upon the Notice being given, the Offeree
shall have the right to purchase all of the Offered Shares for a per share price equal to any of the following, as the Offeree
may select in its sole and absolute discretion; provided, for greater certainty, that the Offeree shall only be entitled to select
payment by way of Carryback Notes or Non-Cash Consideration to the extent the terms of the proposed Transfer as set out in the
Notice also provide for the purchase price to be paid by Carryback Notes or Non-Cash Consideration, as the case may be, and in
such case, only in respect of the portion of the purchase price so provided for in the Notice:

 

    	-25-

    	 

    

 

		(1)	the Cash Equivalent Purchase
Price per Offered Share;

 

		(2)	the aggregate of:

 

		(a)	the amount of cash to be
paid for the Offered Shares as set forth in the Notice divided by the number of Offered Shares;

 

		(b)	Carryback Notes, if any,
to be given in exchange for the Offered Shares in accordance with the terms thereof set forth in the Notice and in the respective
principal amounts therefor as set forth in the Notice divided by the number of Offered Shares; and

 

		(c)	the amount of Non-Cash Consideration,
if any, to be given in exchange for the Offered Shares as set forth in the Notice divided by the number of Offered Shares;

 

		(3)	the aggregate of:

 

		(a)	the amount of cash to be
paid for the Offered Shares as set forth in the Notice divided by the number of Offered Shares;

 

		(b)	Carryback Notes, if any,
to be given in exchange for the Offered Shares in accordance with the terms thereof set forth in the Notice and in the respective
principal amounts therefor as set forth in the Notice divided by the number of Offered Shares; and

 

		(c)	a cash amount equal to the
fair market value of all Non-Cash Consideration, if any, set forth in the Notice to be given in exchange for the Offered Shares
(determined as set forth in section 5.2) divided by the number of Offered Shares; or

 

		(4)	the aggregate of:

 

		(a)	the amount of cash to be
paid for the Offered Shares as set forth in the Notice divided by the number of Offered Shares;

 

		(b)	a cash amount equal to the
fair market value of all Carryback Notes, if any, set forth in the Notice to be given in exchange for the Offered Shares (determined
as set forth in section 5.2) divided by the number of Offered Shares; and

 

		(c)	the amount of Non-Cash Consideration,
if any, to be given in exchange for the Offered Shares as set forth in the Notice divided by the number of Offered Shares.

 

    	-26-

    	 

    

 

5.5 Notice of Intention to Purchase.
Within either:

 

		(1)	25 Business Days after the
date the Notice is given if no portion of the consideration to be given for the Offered Shares (as set forth in the Notice) consists
of Carryback Notes or Non-Cash Consideration; or

 

		(2)	20 Business Days after the
date of determination of the Carryback Note and NonCash Consideration Value;

 

as applicable, if the Offeree is willing to purchase all of
the Offered Shares, it shall give notice thereof to the Offeror and to the Corporation, which notice shall specify whether the
Offeree is selecting the consideration payable pursuant to subsection 5.4(1), (2), (3) or (4).

 

5.6Purchase
of Offered Shares by Offerees. If the Offeree gives notice in accordance
with the provisions of section 5.5 that it is willing to purchase all of the Offered Shares, a binding contract of purchase and
sale will exist between the Offeror and the Offeree, which contract will be subject to the provisions of, and be completed in accordance
with the terms set out in the Notice as modified by this Article 5 and the provisions of Article 12. The closing of a transaction
contemplated in this Article 5 shall take place on the fifth Business Day after the expiry of the applicable 25 or 20 Business
Day period, as the case may be, specified in section 5.5.

 

5.7Sale
to Third Party Offeror. If the Offeree does not give notice in accordance with
the provisions of section 5.5 that it is willing to purchase all of the Offered Shares, the rights of the Offeree, subject as hereinafter
provided, to purchase the Offered Shares shall forthwith cease and terminate and, subject to compliance with sections 5.11 and
13.2, the Offeror may complete a Transfer of all but not less than all of the Offered Shares to any Third Party Offeror within
150 days after the expiry of the applicable 25 or 20 Business Day period, as the case may be, specified in section 5.5 for the
consideration per Offered Share set forth in the Notice and on terms no more favourable than those set forth in the Notice. If
the Offered Shares which the Offeree has not agreed to purchase are not Transferred by the Offeror within the 150 day period referred
to above and otherwise in accordance with the foregoing provisions of this Article 5, the rights of the Offeree pursuant to this
Article 5 shall again take effect and so on from time to time.

 

5.8Extension
of Time. Notwithstanding anything to the contrary contained in this Article 5,
the Offeror may extend any of the time periods set forth in section 5.5 upon written notice to the Offeree. In no event shall such
time periods be shorter than those currently set forth in such section, without the mutual agreement of the Offeror and the Offeree.

 

5.9Outstanding
Notices. At any time after (i) a Call Notice is delivered to Holdings pursuant
to section 9.2, (ii) notice of any exercise of an Involuntary Transfer Option is delivered to a Shareholder pursuant to Article
11 or (iii) Holdings gives a Put Notice given pursuant to section 8.2, the
Shareholder whose Common Shares are affected by such delivery will not be entitled to give a Notice pursuant to section 5.1.

 

    	-27-

    	 

    

 

5.10Limitations.
Notwithstanding anything to the contrary herein, no Transfer may be made to any Person pursuant to section 5.7 or Article 6 or
7 if:

 

		(1)	in
connection with such Transfer, it is necessary to obtain any consent, approval, authorization, waiver, exemption or ruling from
any Government Authority, the failure to obtain which would (i) result in such Transfer being prohibited by law or (ii)would
otherwise have a material adverse effect on the condition (financial or otherwise) of the Corporation and its subsidiaries, taken
as a whole; or

 

		(2)	such Transfer would, in
the absence of any necessary third party consent or approval, be prohibited by the terms of any indenture, agreement or instrument
to which the Corporation is a party or by which the Corporation is bound, or result in the acceleration of any indebtedness, liabilities
or obligations of the Corporation or any subsidiary of the Corporation, unless (i) such consent or approval has been obtained and
is in effect or (ii) the failure to obtain such consent or approval would not have a material adverse effect on the condition (financial
or otherwise) of the Corporation and its subsidiaries, taken as a whole.

 

If a proposed Transfer to a Third Party Offeror pursuant to
section 5.7 or Article 6 or 7 is prohibited by the foregoing provisions of this section 5.10 in the absence of any necessary consent,
approval, authorization, waiver, exemption, ruling or the like from any Government Authority or any necessary third party consent
or approval, the Shareholders shall give all reasonable co-operation in order to obtain such consent, approval, authorization,
waiver, exemption, ruling or the like or such third party consent or approval, as the case may be, as expeditiously as possible.

 

5.11Limitations.
Notwithstanding anything to the contrary contained herein,the Transfer by Holdings or Intrawest of any of its Common
Shares to a Third Party Offeror pursuant to section 5.7 shall
not be permitted unless prior to or contemporaneously with such Transfer such Third Party Offeror executes and delivers such agreements,
instruments and documents as the other Shareholder may require, acting reasonably, so that such Third Party Offeror will be subject
to and bound by the terms and conditions set out in this Agreement, mutatis mutandis, as if such Third Party Offeror were
originally a party to this Agreement in place of Holdings or Intrawest, as the case may be, in respect of the Transferred Common
Shares. In such event, the other Shareholder and the Corporation shall execute and deliver such agreements, instruments and documents
as such Third Party Offeror may require, acting reasonably, to assure the right of such Third Party Offeror to enjoy the benefits
and advantages of Holdings or Intrawest, as the case may be, under this Agreement. Notwithstanding any such Transfer by Intrawest,
Intrawest will remain liable for the performance of its obligations under Article 8.

 

ARTICLE 6

 

DRAW ALONG RIGHTS

 

6.1 Draw
Along Right. If:

 

		(1)	a Shareholder holding more
than two-thirds of the total issued Common Shares (“Draw Along Shareholder”) proposes to accept an Offer to purchase
all of the Common Shares beneficially owned by the Draw Along Shareholder (the “Third Party Offer”); and

 

    	-28-

    	 

    

 

		(2)	the Draw Along Shareholder
has complied with the provisions of Article 5 with respect to the sale of its Common Shares;

 

the Draw Along Shareholder shall have the right (the “Draw
Along Right”), but not the obligation, to require the remaining Shareholder (the “Remaining Shareholder”) to
sell all but not less than all of its Common Shares to the Third Party Offeror for an amount equal to the Determined Sales Price
and otherwise on the terms and conditions as set out in this Article 6.

 

6.2 Draw
Along Notice.The Draw Along Right may be exercised by the Draw Along Shareholder
giving a written notice (a “Draw Along Notice”) to the Remaining Shareholder, which notice shall be:

 

		(1)	accompanied by:

 

		(a)	a copy of the Notice delivered
pursuant to section 5.1; and

 

		(b)	a written offer (the “Purchase
Offer”) from the Third Party Offeror offering to purchase from the Remaining Shareholder all of the Common Shares owned by
it for the Determined Sales Price, on the same terms and conditions as are contained in the Third Party Offer, including that the
completion of the purchase by the Third Party Offeror of the Remaining Shareholder’s Common Shares will be at the same time,
date and place as the time, date and place of the completion of the sale of Common Shares pursuant to the Third Party Offer, provided
that, if any portion of the consideration to be paid for the Remaining Shareholder’s Common Shares is in the form of a Carryback
Note or Non-Cash Consideration, the Purchase Offer shall provide that the Remaining Shareholder may select in its sole and absolute
discretion to receive any of the following:

 

(i)the
aggregate of:

 

		(A)	the amount of cash to be
paid for the Common Shares owned by the Remaining Shareholder;

 

		(B)	a cash amount equal to the
fair market value of such Carryback Note, if any, to be given in exchange for Common Shares owned by the Remaining Shareholder,
determined as set forth in section 5.2; and

 

		(C)	a cash amount equal to the
fair market value of such Non-Cash Consideration, if any, to be given in exchange for the Common Shares owned by the Remaining Shareholder,
determined as set forth in section 5.2;

 

    	-29-

    	 

    

 

		(ii)	the aggregate of:

 

		(A)	the amount of cash to be
paid for the Common Shares owned by the Remaining Shareholder;

 

		(B)	such Carryback Note, if
any, to be given in exchange for the Common Shares owned by the Remaining Shareholder; and

 

		(C)	the amount of Non-Cash Consideration,
if any, to be given in exchange for the Common Shares owned by the Remaining Shareholder;

 

		(iii)	the aggregate of:

 

		(A)	the amount of cash to be
paid for the Common Shares owned by the Remaining Shareholder;

 

		(B)	such Carryback Note, if
any, to be given in exchange for the Common Shares owned by the Remaining Shareholder; and

 

		(C)	a cash amount equal to the
fair market value of such Non-Cash Consideration, if any, to be given in exchange for Common Shares owned by the Remaining Shareholder,
determined as set forth in section 5.2; or

 

		(iv)	the aggregate of:

 

		(A)	the amount of cash to be
paid for the Common Shares owned by the Remaining Shareholder;

 

		(B)	a cash amount equal to the
fair market value of such Carryback Note, if any, to be given in exchange for Common Shares owned by the Remaining Shareholder,
determined as set forth in section 5.2; and

 

		(C)	the amount of Non-Cash Consideration,
if any, to be given in exchange for the Common Shares owned by the Remaining Shareholder; 

 

		(the “Determined Sales Price”);and

 

		(2)	given not less than 30 Business
Days prior to the date fixed for the completion of the transaction provided for in the Purchase Offer,

 

    	-30-

    	 

    

 

6.3 Closing
Procedures. No later than five Business Days after the expiry of the applicable
25 or 20 Business Day period specified in section 5.5 or, where the Draw Along Shareholder has complied fully with the provisions
of Article 5, after the date of the Draw Along Notice, the Remaining Shareholder will duly execute the Purchase Offer and will
deliver it to the Third Party Offeror in the manner contemplated by the Purchase Offer accompanied by a notice in writing specifying
whether the Remaining Shareholder is selecting the consideration described in clause 6.2(1 )(b)(i), (ii), (iii) or (iv). At the
closing of the sale of the Common Shares of the Remaining Shareholder pursuant to this Article 6, the Remaining Shareholder will
deliver to the Third Party Offeror share certificates representing its Common Shares duly endorsed in blank for Transfer and all
necessary documents required to Transfer to the Third Party Offeror, free and clear of all encumbrances, its Common Shares and
to otherwise fully comply with the terms of the Purchase Offer and the Draw Along Shareholder shall, or shall cause the Third Party
Offeror to, deliver to the Remaining Shareholder, consideration in an amount equal to the Remaining Shareholder’s Determined
Sales Price in the form selected by the Remaining Shareholder.

 

6.4 Time
Limit. If the sale of the Common Shares of the Draw Along Shareholder and
the Remaining Shareholder pursuant to this Article 6 is not completed within 150 days of the date specified for such completion
in the Third Party Offer and the Purchase Offer, the rights of the Draw Along Shareholder pursuant to this Article 6 shall again
take effect and so on from time to time.

 

ARTICLE 7 

 

TAG ALONG RIGHTS

 

7.1 Tag
Along Rights.
If

 

		(1)	a Shareholder holding at
least one-half of the total issued Common Shares (the “Tag Along Block Shareholder”) proposes to accept an Offer to
purchase at least 75% of the Common Shares beneficially owned by the Tag Along Block Shareholder (the “Third Party Offer”);
and

 

		(2)	the Tag Along Block Shareholder
has complied with the provisions of Article 5 with respect to the sale of its Common Shares;

 

the Tag Along Block Shareholder will not complete the
transaction contemplated by the Third Party Offer unless either (i) the Draw Along Right is exercised in respect of the Third
Party Offer or (ii) prior to the completion of the transaction contemplated by the Third Party Offer the Third Party Offeror
offers (the “Tag Along Offer”) to purchase from the remaining Shareholder (the “Remaining
Shareholder”) all of its Common Shares for an amount equal to the Determined Sales Price and otherwise on the terms and
conditions in this Article 7. For greater certainty, the foregoing provisions of this section 7.1 will not apply to a
purchase or sale of Common Shares pursuant to Article 8, 9 or 11.

 

    	-31-

    	 

    

 

7.2 Tag
Along Offer.
The Tag Along Offer shall:

 

		(1)	constitute an offer from the Third Party Offeror to purchase from the Remaining Shareholder all of the Common Shares owned
by it for the Determined Sales Price, on the same terms and conditions as are contained in the Third Party Offer, including that
the completion of the purchase by the Third Party Offeror of the Remaining Shareholder’s Common Shares will be at the same
time, date and place as the time, date and place of the completion of the sale of Common Shares pursuant to the Third Party Offer,
provided that, if any portion of the consideration to be paid for the Remaining Shareholder’s Common Shares is in the form
of a Carryback Note or Non-Cash Consideration, the Tag Along Offer shall provide that the Remaining Shareholder may select in its
sole and absolute discretion to receive any of the following:

 

		(a)	the aggregate of:

 

		(i)	the
amount of cash to be paid for the Common Shares owned by the Remaining Shareholder;

 

		(ii)	a cash amount equal to the
fair market value of such Carryback Note, if any, to be given in exchange for Common Shares owned by the Remaining Shareholder,
determined as set forth In section 5.2; and

 

		(iii)	a cash amount equal to the
fair market value of such Non-Cash Consideration, if any, to be given in exchange for the Common Shares owned by the Remaining
Shareholder, determined as set forth in section 5.2;

 

		(b)	the aggregate of:

 

		(i)	the
amount of cash to be paid for the Common Shares owned by the Remaining Shareholder;

 

		(ii)	such Carryback Note,
                                                                  if any, to be given in exchange for the Common Shares owned by the Remaining Shareholder; and

 

		(iii)	the amount of Non-Cash Consideration,
if any, to be given in exchange for the Common Shares owned by the Remaining Shareholder;

 

		(c)	the aggregate of:

 

		(i)	the
amount of cash to be paid for the Common Shares owned by the Remaining Shareholder;

 

		(ii)	such Carryback Note, if
any, to be given in exchange for the Common Shares owned by the Remaining Shareholder; and

 

		(iii)	a cash amount equal to the
fair market value of such Non-Cash Consideration, if any, to be given in exchange for Common Shares owned by the Remaining Shareholder,
determined as set forth in section 5.2; or

 

    	-32-

    	 

    

 

		(d)	the aggregate of;

 

		(i)	the
amount of cash to be paid for the Common Shares owned by the Remaining Shareholder;

 

		(ii)	a cash amount equal to the
fair market value of such Carryback Note, if any, to be given in exchange for Common Shares owned by the Remaining Shareholder,
determined as set forth in section 5.2; and

 

		(iii)	the amount of Non-Cash Consideration,
if any, to be given in exchange for the Common Shares owned by the Remaining Shareholder; 

 

		(the “Determined Sales Price”);

 

		(2)	be open for acceptance by
the Remaining Shareholder for a period of 30 days following delivery of the Tag Along Offer to it pursuant to section 7.1; and

 

		(3)	be given not less than 30
Business Days prior to the date fixed for completion of the transaction provided for in the Tag Along Offer.

 

7.3Election
by Remaining Shareholder. Following receipt by the Remaining Shareholder
of the Tag Along Offer, the Remaining Shareholder will have the right, but not the obligation, to elect to sell all of the Remaining
Shareholder’s Common Shares to the Third Party Offeror pursuant to the terms and conditions contained in the Tag Along Offer
and this Article 7, exercisable by delivering written notice (the “Tag Along Notice”) to the Tag Along Block Shareholder
and the Third Party Offeror within 30 days of receipt of the Tag Along Offer pursuant to section 7.1, accompanied by a notice in
writing specifying whether the Remaining Shareholder is selecting the consideration described in clause 7.2(1 )(a), (b), (c) or
(d).

 

7.4Closing
Procedures. At the closing of the sale of the Common Shares of the Remaining
Shareholder pursuant to this Article 7, the Remaining Shareholder will deliver to the Third Party Offeror share certificates representing
its Common Shares duly endorsed in blank for Transfer and all necessary documents required to Transfer to the Third Party Offeror,
free and clear of all encumbrances, its Common Shares and to otherwise fully comply with the terms of the Tag Along Offer and the
Tag Along Block Shareholder shall, or shall cause the Third Party Offeror to, deliver to the Remaining Shareholder consideration
in an amount equal to the Remaining Shareholder’s Determined Sales Price in the form selected by the Remaining Shareholder.

 

7.5Failure
to Give Tag Along Notice. If the Remaining Shareholder does not give a
Tag Along Notice within the 30 day period referred to in section 7.3, the Remaining Shareholder will be deemed to have elected
not to accept the Tag Along Offer.

 

    	-33-

    	 

    

 

7.6 Time
Limit. If the sale of the Common Shares of the Tag Along Block Shareholder
and the Remaining Shareholder, if a Tag Along Notice has been given pursuant to this Article 7 are not completed within 150 days
of the date specified for such completion in the Third Party Offer and the Tag Along Offer, the rights of the Remaining Shareholder
pursuant to this Article 7 shall again take effect and so on from time to time.

 

ARTICLE 8

 

PUT OPTIONS

 

8.1 Put Options.
Holdings shall have the option:

 

		(1)	exercisable at any time during the period commencing September 1 and ending December 31 in any year, to sell to Intrawest all,
but not less than all, of the Common Shares held by Holdings; and

 

		(2)	exercisable at any time during the period commencing September 1 and ending December 31 in any year, but not exercisable more
than one time, to sell to Intrawest Common Shares representing not less than 10% and not more than 25% of the total number of issued
and outstanding Common Shares;

 

(each such option is called a “Put Option” and the
Common Shares which are the subject of a Put Option are called “Put Shares”).

 

8.2 Put
Notice. If Holdings wishes to exercise either of the Put Options, it shall
give to Intrawest a notice (the “Put Notice”) which must:

 

		(1)	indicate whether Holdings
is exercising the Put Option set out in subsection 8.1(1) or (2);

 

		(2)	where Holdings is exercising
the Put Option set out in subsection 8.1(2), indicate the number of Common Shares it wishes to sell to Intrawest pursuant thereto;

 

		(3)	stipulate the time, the
date and the place of completion of the purchase of Holdings’ shares which time and date of completion will take into account
the time periods required to determine the fair market value of the Put Shares and which, in any event, shall not be longer than
90 days after the date of the Put Notice; and

 

		(4)	be executed by Holdings.

 

Promptly after a Put Notice is given to Intrawest (and in any
event no later than five Business Days thereafter), Intrawest will duly execute the Put Notice acknowledging the terms thereof
and Intrawest will deliver the Put Notice to Holdings.

 

    	-34-

    	 

    

 

8.3
Price. The price per Put Share shall be 90% of the fair market value of the
Put Shares calculated at the (date of the Put Notice in accordance with Schedule A, less the aggregate amount of any distributions
made or to be made by the Corporation to Holdings in respect of the Put Shares pursuant to section 2.9, after the date of the Put
Notice.

 

8.4
Holdings Indemnity.

 

		 (1)	If Holdings
                                                                      exercises the Put Option pursuant to subsection 8.1(l) prior to the Claims Expiry Date (as defined in the Share Purchase
                                                                      Agreement),                                                                       Holdings hereby agrees and shall be deemed
                                                                      to have agreed, as of the date the Purchase Price in respect of the Put Shares is
                                                                      paid by Intrawest to Holdings, to indemnify and hold harmless Intrawest from any Losses (as defined in the Share Purchase
                                                                      Agreement), actions or causes of action in accordance with the terms of Article 12 of the Share Purchase Agreement subject
                                                                      in                                                                       all respects to the limitations and restrictions set
                                                                      out in such Article 12, mutatis mutandis, in the place and stead
                                                                      of the Corporation, provided that the maximum aggregate obligation of Holdings pursuant to such indemnity shall not exceed
                                                                      $15,000,000 and provided that the indemnity shall expire on the Claims Expiry Date. In connection with such indemnity,
                                                                      Intrawest shall be entitled to deposit 20% of the Purchase Price with the Depositary to be held by the Depositary in
                                                                      accordance with the terms and conditions of subsection 8.4(2).

 

	(2)		(a)     In
                                                                                the event that funds are deposited by Intrawest with the Depositary pursuant to subsection 8.4(1), the
                                                                                           funds so deposited, together with any interest earned
                                                                                thereon (the “indemnity Deposit”), shall be held by
                                                                                           the Depositary in trust in an interest bearing account and
                                                                                disbursed only in accordance with the
             provisions of
                                                                                this subsection 8.4(2).

		(b)	The parties agree that, subject to paragraphs
(c) and (d) below, the Depositary shall pay to Holdings on the Claims Expiry Date the entire amount of the Indemnity Deposit then
remaining.

 

		(c)	Notwithstanding subsection
8.4(2)(b), the Depositary shall pay to Intrawest from the indemnity Deposit any and all amounts to which Intrawest is entitled
pursuant to the indemnity obligations of Holdings pursuant to subsection 8.4(1). Such amounts shall be agreed upon by Intrawest
and Holdings, failing which the matter will be determined by binding arbitration in such manner as the parties may agree or by
a court of competent jurisdiction (which determination has been certified or otherwise authenticated to the satisfaction of the
Depositary and which is final and is not itself subject to review or appeal).

 

    	-35-

    	 

    

 

		(d)	Notwithstanding subsection
8.4(2)(b), in the event that Intrawest delivers to the Depositary a certificate of two senior officers of Intrawest certifying
that Intrawest has a bona fide claim against Holdings pursuant to subsection 8.4(1I), the estimated amount of such claim
and that it has provided notice to Holdings of such claim together with reasonable particulars of the factual basis for such claim,
the Depositary shall only pay to Holdings pursuant to subsection 8.4(2)(b) the amount otherwise required to be paid to Holdings
thereunder less a reasonable reserve for the amount that could reasonably be anticipated to be payable to Intrawest pursuant to
subsection 8.4(1) in respect of such claim. The amount of such reserve shall be agreed upon by Intrawest and Holdings, failing
which the matter will be determined by binding arbitration in such manner as the parties may agree or by a court of competent jurisdiction
(which determination has been certified or otherwise authenticated to the satisfaction of the Depositary and which is final and
is not itself subject to review or appeal); provided that until the amount of such reserve is so agreed upon or determined, the
Depositary will be entitled to retain as such reserve the estimated amount of such claim specified in such certificate. Any reserve
retained by the Depositary in accordance with the foregoing shall only be held until such time as the claim to which such reserve
relates has been abandoned or the amount payable to Intrawest pursuant to the indemnity obligations of Holdings pursuant to subsection
8.4(1) has been agreed upon by Intrawest and Holdings or otherwise determined by binding arbitration in such manner as the parties
may agree or by a court of competent jurisdiction (which determination has been certified or otherwise authenticated to the satisfaction
of the Depositary and which is final and not itself subject to review or appeal). Forthwith upon such resolution, such reserve
plus any interest accrued thereon shall be applied by the Depositary to the payment of the amount payable to Intrawest pursuant
to subsection 8.4(1) in respect of such claim, if any, and the balance thereof, if any, shall be paid by the Depositary to Holdings.

 

For
purposes of this section 8.4, “Depositary” shall mean McCarthy Tetrault or, if for any reason McCarthy Tetrault is
unwilling to act as a Depositary for purposes of this section 8.4, such other law firm as Intrawest and Holdings may agree, and
Holdings and Intrawest will execute and deliver to the Depositary such confirmations as the Depositary may reasonably request for
its protection in acting as the Depositary. Notwithstanding any other provision hereof (including section 13.9), this section 8.4
to the extent that it is applicable shall survive the termination of this Agreement.

 

8.5
Closing. Upon a Put Notice being given, a binding contract of purchase and
sale for the Put Shares will be formed between Intrawest and Holdings, which contract will be subject to the provisions of, and
completed in the manner provided in, Article 12.

 

8.6
Call Notice. At any time after a Call Notice is given to Holdings pursuant
to section 9.2,Holdings will not be entitled to give a Put Notice under section
8.2.

 

8.7
Suspension of Put Options. The Put Options shall be suspended, and any outstanding
Put Notices pursuant to, or contracts or agreements of purchase and sale arising under, this Article 8 which have not been completed
shall be deemed to be terminated and of no further force and effect without prejudice to the rights of Holdings to deliver a further
Put Notice in accordance with the terms of section 8.1, in the event that the Corporation makes an assignment for the benefit of
creditors or is adjudicated bankrupt or insolvent or takes steps to wind up or terminate its existence, and thereafter the Put
Options shall not be exercisable unless and until such assignment or adjudication has ceased or the Corporation abandons its steps
to wind up or terminate its existence.

 

    	-36-

    	 

    

 

ARTICLE
9

 

INTRAWEST
CALL OPTION

 

9.1 Call
Options. Upon the occurrence of the Call  Event, Intrawest shall  have the option
(the “Call Option”) exercisable at any time during the period commencing September 1 and ending December 31 in any
year, to purchase from Holdings all, but not less than all, of the Common Shares held by Holdings (the “Call Shares”).

 

9.2 Call
Notice. If Intrawest wishes to exercise the Call Option, it shall give
to Holdings a notice (the “Call Notice”) which must:

 

		(1)	indicate that Intrawest is exercising its Call Option;

 

		(2)	stipulate the time, the date and the place of completion of the purchase of Call Shares, which time and date of completion
will take into account the time periods required to determine the fair market value of the Call Shares and which, in any event,
shall not be longer than 90 days after the date of the Call Notice; and

 

		(3)	be executed by Intrawest.

 

Promptly after a Call Notice is given to Holdings (and in any
event no later than five Business Days thereafter), Holdings will duly execute the Call Notice acknowledging the terms thereof
and Holdings will deliver the Call Notice to Intrawest.

 

9.3 Price.
The price per Call Share shall be 110% of the fair market value of the Call Shares, calculated at the date of the Call Notice in
accordance with Schedule A, less the aggregate amount of any distributions made or to be made by the Corporation to Holdings pursuant
to section 2.9, after the date of the Call Notice.

 

9.4 Closing.
Upon a Call Notice being given to Holdings, a binding contract of purchase and sale will be formed between Intrawest and Holdings,
which contract will be subject to the provisions of, and completed in the manner provided in, Article 12.

 

9.5 Suspension
of Call Option. The provisions of section 8.7 shall apply to the Call Option and
any outstanding Call Notice pursuant to, or a contract or agreement of purchase and sale arising under, this Article 9 which has
not been completed, mutatis mutandis.

 

    	-37-

    	 

    

 

ARTICLE 10

 

RESOLUTION OF DISPUTES BETWEEN

HOLDINGS AND INTRAWEST

 

10.1
Deadlock. In the event that there is a disagreement between Holdings
and Intrawest regarding any matter referred to in subsection 2.6(8), Holdings and Intrawest shall attempt to resolve such disagreement
in the manner and in accordance with the following procedures:

 

		(1)	Holdings and Intrawest will attempt in good faith to resolve the disagreement by negotiation, including convening a meeting
of their representatives for that purpose. All reasonable requests for relevant information relating to the disagreement made by
either party will be honoured.

 

		(2)	If Holdings and Intrawest are unable to resolve the disagreement through negotiation, either one of them may give notice to
the other requesting mediation of the disagreement. Following such notice being given, Holdings and Intrawest will agree on the
appointment of a qualified, impartial and experienced individual (the “Mediator”) to serve as a mediator in connection
with the disagreement.

 

		(3)	Should Holdings and Intrawest be unable
to agree on the appointment of a mutually acceptable Mediator within 14 days of the notice referred to in subsection 10.1(2), they
agree to refer the matter of the appointment of the Mediator to a judge of the superior court of Ontario.

 

		(4)	Within three days of the appointment of
the Mediator in accordance with the provisions of subsection 10.1(2) or (3), Holdings and Intrawest will each provide the Mediator
and each other with a written statement of their position in respect of the disagreement and a summary of the arguments supporting
its position.

 

		(5)	The Mediator will meet with Holdings and
Intrawest either together or separately as the Mediator in his or her sole discretion shall determine, in an attempt to resolve
the disagreement through mediation. In connection with the mediation of the disagreement, the Mediator shall be permitted to request
additional information from the parties, which requests shall not be unreasonably denied, and shall be permitted to engage experts.
The costs of the Mediator and of any experts retained by the Mediator in the course of the mediation shall be borne by the Corporation.

 

		(6)	Holdings and Intrawest will each be entitled
to retain legal counsel or other advisors in connection with the mediation. Each party shall be responsible for the costs of any
counsel or advisors so retained.

 

For
the purposes of this section 10.1, a disagreement between Holdings and Intrawest regarding a matter referred to in subsection 2.6(8)
will be deemed to exist if, but not until, an Annual Budget or Capital Expenditures Budget, as the case may be, submitted to the
Shareholders pursuant to section 2.10 is
not approved pursuant to subsection 2.6(8) at a meeting of the Shareholders held within 30 days after the same is submitted to
the Shareholders pursuant to section 2.10 and a revised Annual Budget or Capital Expenditures Budget, as the case may be, submitted
to the Shareholders pursuant to section 2.10 is not approved pursuant to subsection 2.6(8) at a meeting of the Shareholders held
within 15 days after such revised Annual Budget or Capital Expenditures Budget, as the case may be, is submitted to the Shareholders
pursuant to section 2.10.

 

    	-38-

    	 

    

 

ARTICLE 11

 

DEFAULT
AND INVOLUNTARY TRANSFERS OF SHARES

 

11.1
Default and Involuntary Transfers of Shares. In the event that:

 

		(1)	any Shareholder contravenes
section 3.1, 3.3, 3.6, 3.8, 3.9 or 3.11;

 

		(2)	any Shareholder makes an
assignment for the benefit of creditors or is adjudicated bankrupt or insolvent or any Shareholder other than an individual Shareholder
takes steps to wind up or terminate its existence; or

 

		(3)	any proceedings are commenced
                                                                  requesting the sale or transfer of, or a declaration of trust in relation to, any Common Shares of which the Shareholder is
                                                                  the registered owner, whether by operation of law or court order, and whether pursuant to the Family Law Act, R.S.O.
                                                                  1990, c. F6, any statute of similar purport in any jurisdiction, or otherwise than by voluntary act of such Shareholder
                                                                  (other than the transmission of any Common Shares from a deceased or incompetent Shareholder to the legal representative of
                                                                  such Shareholder);

 

(any
such event being herein referred to as an “Involuntary Transfer” and any such Shareholder being herein referred to
as an “Involuntary Transferor”), the other Shareholder (the “Other Shareholder”) will have the option (the
“Involuntary Transferor Option”), exercisable at any time (i) with
respect to (1) above, no sooner than 30 and no later than 60 days after notice by the Other Shareholder has been given to the Involuntary
Transferor and only to the extent the relevant contravention has not been subsequently cured, and (ii) with respect to (2) and
(3) above prior to the expiration of 30 days after the Other Shareholder has been notified, or has otherwise become aware, of such
event, to purchase all or any of the Common Shares of which such involuntary Transferor is the registered owner immediately prior
to the Involuntary Transfer (the “Involuntary Transferor Shares”) on the terms set out in this Article 11, provided
that where any violation by Holdings of a provision referred to in section 3.9 or 3.11 which is caused by a Holdings Shareholder
or an Eligible Holdings Transferee, the Other Shareholder shall only be entitled to purchase that number of Common Shares equal
to (i) the number of Common Shares held by Holdings multiplied by (ii) the percentage obtained by dividing (A) the number of Holdings
Shares owned by such Holdings Shareholder or Eligible Holdings Transferee immediately prior to the violation of such provision
by (B) the number of
issued and outstanding Holdings Shares at such time.

 

    	-39-

    	 

    

 

11.2 Right
to Purchase Pro Rata. The Other Shareholder shall have the right to purchase
the Involuntary Transferor Shares at the price to be determined in accordance with the provisions of section. 

 

11.3 Price.
The price of the Involuntary Transferor
Shares shall be:

 

		(1)	in respect of an Involuntary Transfer referred to in subsection 11.1(1), 90%; and

 

		(2)	in respect of an Involuntary Transfer
referred to in subsections 11.1(2) and (3), 100%;

 

of the fair market value of the Involuntary Transferor Shares
as determined pursuant to Schedule A as at the end of the fiscal quarter of the Corporation immediately preceding the fiscal quarter
in which the event set out in subsection 11.1(1), (2) or (3) occurs, less the aggregate amount of any distributions made or to
be made by the Corporation to the Involuntary Transferor after the end of such immediately preceding fiscal quarter.

 

11.4 Exercise
of Involuntary Transfer Option. Within 10 Business Days of the fair market value
of the Involuntary Transferor Shares having been determined, the Other Shareholder who desires to purchase all of the Involuntary
Transferor Shares shall give notice thereof to the Involuntary Transferor and to the Corporation.

 

11.5 Closing.
Upon the giving of notice pursuant to section 11.4, a binding contract of purchase and sale will exist between the
Involuntary Transferor and the Other Shareholder which contract will be subject to the provisions of, and completed in the manner
provided in, Article 12. The closing of a transaction contemplated in this Article 11 shall take place 10 Business Days after
the date of the notice given pursuant to section 11.4.

 

ARTICLE 12

 

CLOSING PROCEDURES

 

12.1 Closing
Procedures. The closing of (i) all purchases and sales of Offered Shares
to an Offeree pursuant to Article 5, to the extent that the closing procedures contemplated in this Article 12 are not inconsistent
with the terms stipulated in any Notice delivered pursuant to section 5.1; (ii) all purchases and sales of Put Shares or Call
Shares pursuant to Articles 8 and 9; and (iii) all
purchases and sales of Involuntary Transferor Shares pursuant to Article 11 shall take place in accordance with the provisions
of this Article 12.

 

12.2 Time
and Place of Closing. Closing shall take place at the head office of the
Corporation (the “Place of Closing”) at 10:00 a.m. (Eastern Daylight or Standard Time, as the case may be) (the “Time
of Closing”) on the dates for closing specified in or contemplated by each of Articles 5, 8, 9, or 11, respectively.

 

    	-40-

    	 

    

 

12.3 Consents.
If in connection with any purchase and sale transaction contemplated under Article 5 (where the purchaser of the Offered Shares
is the Offeree), 8.9 or 11, it is necessary to obtain any consent, approval, authorization, waiver, exemption or ruling from any
Government Authority, the failure to obtain which would have a material adverse effect on the condition (financial or otherwise)
of the Corporation and its subsidiaries, taken as a whole, or would under applicable law prohibit completion of the purchase and
sale transaction (a “Consent”), each of the Purchaser and the Vendor shall use all reasonable commercial efforts, and
act together in good faith, to obtain such Consent as expeditiously as possible and in any event, prior to the Time of Closing.
If despite such efforts of the parties, a Consent is not obtained prior to the Time of Closing and the Purchaser does not waive
the obtaining of the Consent, the closing of the relevant transaction shall be delayed until such Consent is obtained provided
that if such Consent cannot be obtained within 180 days of the date of the Put Notice or Call Notice, as the case may be, and the
Purchaser does not waive the obtaining of the Consent the binding contract of purchase and sale formed pursuant to the Put Notice
or Call Notice, as the case may be, shall be deemed to be terminated and of no force and effect, without prejudice to the relevant
party’s right to deliver further Put Notices or Call Notices, as the case may be, in accordance with the terms hereof.

 

12.4 Payment
and Delivery. At the Time of Closing, each Person who has exercised its right,
or who is required, to purchase Common Shares (a “Purchaser”) shall deliver to the Person selling Common Shares (the
“Vendor”) the consideration required to be paid pursuant to Article 5, 8, 9, or 11, as the case may be, (the “Purchase
Price”). At the Time of Closing:

 

		(1)	the Vendor shall deliver
to the Purchaser share certificates representing the Common Shares required to be issued or Transferred to the Purchaser (the “Purchased
Shares”);

 

		(2)	the Vendor shall deliver
all necessary documents (which documents shall, as to form and content, be satisfactory in all respects to the Purchaser and its
counsel, acting reasonably) required to Transfer to the Purchaser the Purchased Shares, free and clear of all mortgages, pledges,
liens, charges, security interests, adverse claims and other encumbrances and to otherwise comply fully with the intent of this
Agreement and to deliver a representation and warranty to the Purchaser in a form satisfactory to the Purchaser, acting reasonably,
regarding the Vendor’s title to and ownership of the Purchased Shares and such other documents as may otherwise be required
to comply with and to fulfil the intent of this Agreement; and

 

		(3)	each Consent required under
section 12.3 shall be tabled by the party who obtained it.

 

12.5 Default
of Selling Shareholder. If the Vendor is not present at the Place of Closing at
the Time of Closing or is present but fails for any reason whatsoever to comply with section 12.4, in addition to and without limitation
to any other rights it may have at law, the Purchaser may make payment of the Purchase Price by depositing the same into a special
interest-bearing account at a branch of the Corporation’s bankers in the name of and in trust for the Vendor. Such deposit
shall constitute valid and effective payment of the Purchase Price to the Vendor even though the Vendor has voluntarily encumbered
or disposed of any of the Purchased Shares and notwithstanding the fact that a certificate or certificates representing the Purchased
Shares may have been delivered to any pledgee, transferee or other Person.

 

    	-41-

    	 

    

 

12.6 Sale
Effective. If the Purchase Price is deposited pursuant to section 12.5 into a
special account at a branch of the Corporation’s bankers in the name of and in trust for the Vendor, then from and after
the date of such deposit and even though the Purchased Shares have not been delivered to the Purchaser, the purchase and sale of
such Purchased Shares shall be deemed to have been fully completed and all right, title, benefit and interest, both at law and
at equity, in and to such Purchased Shares shall be conclusively deemed to have been Transferred and assigned to and become vested
in the Purchaser and all right, title, benefit and interest, both at law and in equity, of the Vendor, or of any assignee or other
Person having any interest, legal or equitable, therein or thereto, whether as shareholder or creditor of any Person in the Corporation
or otherwise, shall cease and determine; provided, however, that the Vendor shall be entitled to receive the Purchase Price so
deposited with interest thereon.

 

12.7 Non-Completion
by Intrawest. If Intrawest fails to complete a purchase of any Common Shares under
the Put Option or the Call Option on the later of the date provided for under subsection 8.2(3) or 9.2(2), as the case may be,
and the date which is five Business Days after the determination of Market Value in accordance with the provisions of Schedule
A, and provided that Holdings shall have complied with all of its obligations under section 12.4 with respect to such purchase
and all relevant Consents shall have been obtained, Intrawest shall pay to Holdings, in addition to the Purchase Price, interest
from such date on the amount of the Purchase Price, at a rate equal to the prime rate quoted by the Corporation’s principal
banker plus 2% until such time as the relevant purchase transaction closes, without prejudice to any other right of Holdings at
law or in equity, arising as a result of Intrawest’s failure to complete such purchase.

 

12.8 Power
of Attorney. If the Vendor is not present at the Place of Closing at the Time
of Closing or is present but fails for any reason whatsoever to comply with section 12.4 and provided that the Purchaser has complied
with all of its obligations under section 12.4, the Vendor irrevocably constitutes and appoints the Purchaser as its true and lawful
attorney in fact as agent for, in the name of and on behalf of the Vendor to execute and deliver in the name of the Vendor all
such assignments, transfers, deeds and instruments as may be necessary effectively to Transfer and assign the Purchased Shares
to the Purchaser or its nominee or nominees. Such appointment and power of attorney, being coupled with an interest, shall not
be revoked by the insolvency, bankruptcy or incapacity of the Vendor and the Vendor hereby ratifies and confirms and agrees to
ratify and confirm all that the Purchaser may lawfully do or cause to be done by virtue of the provisions of this section 12.8.

 

12.9 Consent
to Transfer. All parties to this Agreement from time to time hereby
irrevocably consent, including, without limitation, for the purposes of the restrictions on Transfer contained in the
Constating Documents of the Corporation, to any Transfer of Shares made pursuant to the provisions of this Agreement and
hereby agree to execute any and all such forms of consent, instruments and other documents as may be required from time to
time to evidence or give effect to the foregoing and to cause the Board of Directors of the Corporation to pass such
resolutions or to take such other action necessary to implement the same.

 

    	-42-

    	 

    

 

12.10 Entitlement
to Purchase Price. The Vendor shall be entitled to receive the Purchase
Price deposited with the bankers of the Corporation on delivery to the Purchaser of the documents required by section 12.4
together with an indenture, in form satisfactory to the Purchaser, acting reasonably, ratifying and confirming all that the
Purchaser has lawfully done or caused to be done by virtue of the provisions of section 12.8.

 

ARTICLE 13 

 

GENERAL

 

13.1 Conflict.
In the event of any conflict between the provisions of this Agreement and the Constating Documents of the Corporation or any subsidiary
of the Corporation, the provisions of this Agreement shall govern to the extent permitted by law. Each of the Shareholders agrees
to vote its Shares or cause its Shares to be voted and the Corporation agrees to take such acts so as to cause the Constating Documents
of the Corporation or any subsidiary of the Corporation to be amended to the extent permitted by law in order to resolve such conflict
in favour of the provisions of this Agreement.

 

13.2 Transferees
to be Bound by Agreement. Notwithstanding anything to the contrary contained herein,
no Common Share may be Transferred by any Shareholder or allotted or issued to any Person who has not agreed to be bound by all
of the provisions of this Agreement including, without limitation, that any purchaser or other acquirer of Common Shares held by
Intrawest will assume its obligations under Article 8 hereof, and no such Person who acquires any interest in or control over any
Common Shares under this Agreement will be recognized or considered as a Shareholder under this Agreement and the Shareholders
will not be required to consider any Person a Shareholder under this Agreement or afford any Person the rights afforded by this
Agreement or any of the incidents connected with being a Shareholder under this Agreement until that Person agrees to be bound
by this Agreement. Any Person who becomes a holder of Common Shares or rights under this Agreement after the date of this Agreement
will agree to be bound by this Agreement and will signify its assent to the terms of this Agreement by signing this Agreement or
by delivering an instrument in writing duly executed under seal to the Secretary of the Corporation and to the existing Shareholders
indicating an intention and agreement to be bound by the terms of this Agreement. Each of the parties to this Agreement will be
bound each to each other and, upon the subsequent assent to this Agreement by any Person, each of them will be bound to each and
every such Person and, in like manner, each and every such Person will be bound to each party and to each and every subsequent
Person who agrees to be bound by this Agreement thereafter. Each of the parties agrees that to the extent any Person to which it
Transfers Common Shares hereunder fails to perform any obligation assumed by such transferee pursuant to this section 13.2, the
transferring party shall remain fully obligated to the other Shareholders for the performance of such obligation.

 

13.3 No
Partnership. Nothing in this Agreement or in the relationship of the parties hereto
shall be construed as in any sense creating a partnership between the parties or as giving to any party any of the rights of, or
subjecting any party to any of the creditors of, the other party.

 

    	-43-

    	 

    

 

13.4 Time of the Essence. Time shall be of the
essence of this Agreement

 

13.5 Benefit
of the Agreement. This Agreement shall ensure to the benefit of and be binding
upon the respective heirs, executors, administrators, successors and permitted assigns of the parties hereto.

 

13.6 Entire
Agreement. This Agreement constitutes the entire agreement between the parties
hereto with respect to the subject matter hereof and cancels and supersedes any prior understandings and agreements between the
parties hereto with respect thereto. There are no representations, warranties, terms, conditions, undertakings or collateral agreements,
express, implied or statutory, between the parties other than those expressly set forth or contemplated in this Agreement and in
the Share Purchase Agreement.

 

13.7 Amendments
and Waivers. No amendment to this Agreement shall be valid or binding unless set
forth in writing and duly executed by all of the parties hereto. No waiver of any breach of any provision of this Agreement shall
be effective or binding unless made in writing and signed by the party purporting to give the same and, unless otherwise provided
in the written waiver, shall be limited to the specific breach waived. Failure by any party hereto to insist in any one or more
instances upon the strict performance of any one of the covenants contained herein shall not be construed as a waiver or relinquishment
of such covenant.

 

13.8 Assignment. Except as may be expressly provided
in this Agreement, none of the parties hereto may assign its rights or obligations under this Agreement without the prior written
consent of all of the other parties hereto.

 

13.9 Termination. This Agreement shall terminate
upon:

 

		(1)	the written agreement of all of the Shareholders;

 

		(2)	the dissolution of the Corporation; or

 

		(3)	one Shareholder becoming the beneficial owner of all of the issued and outstanding Common Shares.

  

13.10 Severability. If any provision of
this Agreement is determined to be invalid or unenforceable in whole or in part, such invalidity or unenforceability shall
attach only to such provision or part thereof and the remaining part of such provision and all other provisions hereof shall
continue in full force and effect and the parties hereby undertake to renegotiate in good faith, with a view to concluding
arrangements as nearly as possible the same as those herein contained.

 

13.11 Notices.
Any demand, notice or other communication to be given in connection with this Agreement shall be given in writing and may be
given by actual delivery, or by transmittal by facsimile transmission addressed to the recipient as
follows:

 

    	-44-

    	 

    

 

To Holdings:

 

Blue
Mountain Resorts Holdings Inc. 

R.R.
#3 

Collingwood,
Ontario 

L9Y
3Z2

 

Attention:
President 

Facsimile No.: (705) 443-5520

 

To
Intrawest:

 

Intrawest
Corporation 

800 - 200 Burrard Street 

Vancouver, British Columbia

V6C 3L6

 

Attention:
President, Resort Development Group 

Facsimile
No.: (604) 669-0605

 

To
the Corporation:

 

Blue
Mountain Resorts Limited 

R.R. #3 

Collingwood,
Ontario 

L9Y
3Z2

 

Attention:
President

 Facsimile No.: (705) 443-5520

 

or such other address, telecopy number or individual as may
be designated by notice by any party to the others. Any demand, notice or other communication given by actual delivery shall be
conclusively deemed to have been given on the day of actual delivery thereof (or, if such day is not a Business Day, on the next
Business Day) or on the day on which the party to which such demand, notice or other communication is transmitted received such
transmission (or, if such day is not a Business Day, on the next Business Day).

 

13.12 Governing
Law. This Agreement shall be governed by and construed in accordance with
the laws of the Province of Ontario applicable in the case of contracts made and to be wholly performed in such province and
without application of the choice of law principles of such province. All disputes arising under this Agreement will be
referred to the courts of the Province of Ontario which will have exclusive jurisdiction and, by execution and delivery of
this Agreement, each party hereto irrevocably submits to the jurisdiction of such courts.

 

    	-45-

    	 

    

 

13.13 Counterparts.
This Agreement may be executed is any number of counterparts, each of which when so executed shall be deemed to be an original
and all of which when taken together shall constitute one and the same agreement.

 

13.14 Further
Acts. Each of the parties to this Agreement shall at the request of any other
party hereto, and at the expense of the Corporation, execute and deliver any further documents and do all acts and things as that
party may reasonably require to carry out the true intent and meaning of this Agreement.

 

13.15 Business
Day. Any obligations required to be performed by a party under this Agreement
on a day, other than a Business Day, shall be properly discharged if performed by such party on the next following day which is
a Business Day.

 

13.16 Legal
Fees. If any party institutes legal proceedings with respect to this Agreement,
the prevailing party shall be entitled to court costs and reasonable legal fees incurred by such party in connection with such
legal proceedings.

 

ARTICLE 14 

 

EXECUTION

 

14.1
Execution. This Agreement has been executed by the parties hereto on January
28, 1999.

 

	 	BLUE MOUNTAIN RESORTS HOLDINGS INC.	 	 
	 	By: 	

/s/ Illegible	 	 	 
	 	Title: 	President	 	 	 

	 	By: 	

 	 	 	 
	 	Title: 	 	 	 	 

	 	INTRAWEST CORPORATION	 	 
	 	By: 	

/s/ Illegible	 	 	 
	 	Title: 	 	 	 	 

	 	By: 	

 	 	 	 
	 	Title: 	 	 	 	 

    	-46-

    	 

    

 

	 	BLUE
    MOUNTAIN RESORTS LIMITED	 	 
	 	By: 	

/s/ Illegible	 	 	 
	 	Title: 	 	 	 	 

	 	By: 	

 	 	 	 
	 	Title: 	 	 	 	 

    	-47-

    	 

    

 

SCHEDULE A

 

DETERMINATION OF MARKET VALUE

 

1.Definition
of Market Value. “Market Value” shall mean fair market value
as determined in accordance with section 2 of this Schedule A or, failing agreement under section 2, in accordance with the remaining
provisions of this Schedule A.

 

2.Determination
by Agreement. If the Market Value of any Common Shares is to be determined pursuant
to this Schedule, the Market Value of such Common Shares may be determined by agreement of Holdings and Intrawest.

 

3.Determination
by Valuator. Unless the Market Value of any Common Shares has been determined
by agreement of Holdings and Intrawest in accordance with section 2, any party shall be entitled, at any time, to require such
Market Value to be determined in accordance with the remaining provisions of this Schedule A, provided that such Market Value
will be the fair market value with no minority discount or majority premium, and shall be calculated on a per share basis.

 

4.Selection
of Valuator. Any party (the “Selecting Party”) that wishes
to exercise the right referred to in section 3 shall provide notice in writing to the other party (the “Other Party”),
Forthwith following such notice being given and in any event within three Business Days thereafter, the Selecting Party and the
Other Party shall each engage an Independent internationally recognized public chartered accountancy firm or investment bank which
has substantial offices in Canada and which has substantial experience in business valuation (in this Schedule A, the “First
Valuator” and the “Second Valuator”) to determine the Market Value of the relevant Common Shares.

 

5.Cooperation
and Delivery of Valuation. The Selecting Party and the Other Party shall, respectively,
retain the First Valuator and the Second Valuator to determine the Market Value of the relevant Common Shares as at the date referred
to in section 8.2, 9.2 or 11.3, as applicable (the “Relevant Date”) as required under this Agreement, without taking
into account any liabilities of the Corporation in respect of any distributions made or to be made by the Corporation to the Shareholders
pursuant to section 2.9 of the Shareholders’ Agreement after the Relevant Date, applying such principles of valuation as
each of the First Valuator and the Second Valuator, respectively, considers appropriate in the circumstances. Each of the parties
hereto shall in all respects cooperate with the First Valuator and the Second Valuator in the determination of such Market Value.
In particular, each of the parties shall make available to the First Valuator and the Second Valuator all such documents and information
with respect to the affairs of the Corporation and its subsidiaries or any other Person as either the First Valuator or the Second
Valuator may reasonably require to make its determination of Market Value, and shall make their personnel available at all reasonable
times to assist in such determination. Each of the parties shall use its best efforts to ensure that, within 30 Business Days
following their appointment, the First Valuator and the Second Valuator shall provide the Selecting Party and the Other Party
with their determinations of Market Value of the relevant Common Shares. If the First Valuator or Second Valuator specifies a
range of values for Market Value, subject to section 6, such “Market Value” shall be the mid-point of the range.

 

    	-1-

    	 

    

 

6.Market
Value - Average. If the amount determined by the First Valuator in accordance
with the provisions of section 5 (the “First Valuation”) and the amount determined by the Second Valuator in accordance
with the provisions of section 5 (the “Second Valuation”) do not vary by more than 10% of the higher of the two, the
Market Value of the relevant Common Shares shall be the arithmetic average of the First Valuation and the Second Valuation. If
the First Valuation and Second Valuation vary by more than 10% of the higher of the two, the Selecting Party and the Other Party
shall cause the First Valuator and the Second Valuator to engage a third Independent internationally recognized public chartered
accountancy firm or investment bank which has substantial offices in Canada and which has substantial experience in business valuations
(the “Third Valuator”) to determine the Market Value of the relevant Common Shares as at the Relevant Date without
taking into account any liabilities of the Corporation in respect of any distributions made or to be made by the Corporation to
the Shareholders pursuant to section 2.9 of the Shareholders’ Agreement. The Selecting Party and the Other Party shall jointly
retain the Third Valuator to determine the Market Value of the relevant Common Shares as at the Relevant Date as required under
this Agreement and the provisions of section 5 shall apply, mutatis mutandis, to such third determination (the “Third
Valuation”). In these circumstances, the Market Value of the relevant Common Shares shall be:

 

	(a)		the
arithmetic average of the two of the First Valuation,Second Valuation and Third Valuation that are closest to one another,
provided that the Third Valuation is higher than one of the First Valuation and the Second Valuation and lower than one of the
First Valuation and the Second Valuation;

	(b)		if
the Third Valuation is higher than both the FirstValuation and the Second Valuation, the higher of the First Valuation and
the Second Valuation; and

 

	(c)		if
the Third Valuation is lower than both the FirstValuation and the Second Valuation, the lower of the First Valuation and the
Second Valuation.

7.Fees
and Disbursements. All fees, disbursements and other costs and expenses associated
with the determination of Market Value by the Valuator, the Second Valuator or the Third Valuator shall be borne by the Corporation.

 

8.Determination
by Board of Directors. In the event that any action required to be taken
by the Selecting Party or the Other Party pursuant to this Schedule A shall not have been taken within the period of time provided
for in this Schedule A, the Board of Directors may (but shall be under no obligation to) by resolution determine such matter or
take such action on behalf of the Selecting Party or the Other Party.

 

    	-2-

    	 

    

 

SCHEDULE
B

 

HOLDINGS SHAREHOLDERS

 

A.Common
Shares

 

Mr. Gordon Canning

Mrs. Barbara Weider

Mrs. Katherine Canning

Mr. George Weider

Dr. Donald McGillivray

Mrs. Helen Weider

Mrs. Helen McGillivray

Jozo Weider Limited*

Mrs. Anna Marik

 

B.
Class “A” Shares

Mr. Gordon Canning 

Mr. Gordon Canning, in
Trust

  

	*		All of the shares of Jozo Weider Limited are owned by certain of the Persons listed
in this Schedule B.

 

    	 

    	 

    

 

SCHEDULE
C

 

DIRECTORS’ REMUNERATION

 

	 	 	November
    1, 1997 to October 31, 1998	 	November
    1, 1998 to October 31, 1999
	Urban Joseph 	 	$	23,058
                                                                                          plus $6,000 onetime bonus	 	 	$	23,750 (3% increase)	 
	Don
    McGillivray	 	 	33,619	 	 	 	34,628 (3% increase)	 
	George Welder	 	 	53,403	 	 	 	54.285(1.6%increase)	 
	Total	 	$	110,080	 	 	$	112,663	 
	 	 	 	 	 	 	 	 	 

    	-2-1621
    18TH street

    suite 300

    denver, co 80202

    tel.303-749-8200

    fax.303-749-8340

October
1st, 2013

Personal
and Confidential - Delivered Via Email (REVISED)

Dallas
E Lucas

c/o Intrawest Denver

Dear
Dallas:

This
letter will confirm termination of your employment effective October 11th, 2013 (the “Termination Date”),
your employment with Intrawest U.S. Holdings (“Intrawest”) and pursuant to the Employment Agreement (the “Agreement”)
executed on August 1st, 2012 between yourself and Intrawest. In accordance with the terms of the Agreement applicable
in the event of a termination of your employment by Intrawest without cause, Intrawest will provide you with the following terms
of settlement (“Terms of Settlement”).

Terms
of Settlement

Intrawest
will pay you the salary accrued, the discretionary Denver team payment as well as any and all accrued vacation up to the Termination
Date to which you are entitled pursuant to Section 4.2(a) of the Agreement. Per our calculations, the total for these amounts
is $57,888.71 (less statutory withholdings).

As
provided in Section 4.2 in the Agreement, at future dates, Intrawest will also pay you:

	 	 
	•	The full payout of the FY13 annual
    performance-based incentive bonus amount of $402,499.97 (less statutory withholdings) provided in Section 4.2(b);
	 	 
	•	In lieu of periodic payments as
    provided for in Section 4.2 (c), a lump sum payment equivalent to eight (8) weeks of base pay in the amount of $61,923.04
    (less statutory withholdings) will be provided;
	 	 
	•	Continued employer contributions
    for COBRA (health) coverage provided in Section 4.2 (d) for three (3) months, if you elect to continue your group health and
    dental insurance benefits under the terms, conditions, and limitations of the Consolidated Omnibus Budget Reconciliation Act
    of 1985 (“COBRA”) through January 31st, 2014, assuming you remain eligible for such continuation coverage.
    With the sole exception of the group health and dental insurance benefits continuation pursuant to COBRA, all other employment
    benefits provided by Intrawest and/or affiliates to you terminate on the Termination Date;
	 	 
	•	The pro-rated portion of the FY14
    annual performance-based incentive bonus amount. Assuming Intrawest reaches its FY14 financial expectations, and bonuses are
    payable under the terms of the plan, you will receive a bonus when payout occurs for other plan participants in October/November
    2014.

Notwithstanding
the above, these payments will cease entirely in the event you breach any of your fiduciary responsibilities or any of the covenants
under Section 3 (Covenants) of the Agreement.

Intrawest
Property

Upon
the Termination Date, all proprietary assets including computer hardware, software, mobile devices, corporate credit cards, files,
keys, etc. will be returned.

Outplacement
Services

As
additional consideration for the release and confidentiality agreements contained herein, outplacement services are available
for up to three (3) months to provide you with assistance in obtaining your next position. Further information detailing this
provision and questions should be directed to Stefanie Stark, Human Resources at 303-749-8223.

    	Page 1 of 4

    	 

    

The
amounts and benefits, provided by Sections 4.2 (b), 4.2 (c) and 4.2(d) will be provided as stipulated in the Agreement, contingent
on future events. As a condition of Intrawest paying you any amounts or benefits under Sections 4.2 (b), 4.2 (c) and 4.2(d), you
must:

	 	 
	1.	deliver or cause to be delivered
    to the undersigned all books, documents, effects, money, securities or other property belonging to Intrawest or its Affiliates
    (as defined in the Agreement) or for which Intrawest or its Affiliates are liable to others, which are in your possession,
    charge, control or custody, as directed above; and
	 	 
	2.	execute and return to Mara Pagotto,
    the Release and Indemnity attached herewith as Schedule “A”. The Release and Indemnity shall not take effect until
    the seven-day revocation period provided in the Release and Indemnity has been exhausted, without you revoking your acceptance
    of the Release and Indemnity.

In
addition to the above, Intrawest will reimburse you for all outstanding expenses which have been properly incurred up to and including
the Termination Date. In this regard, please submit an expense report to me as soon as possible and no later than October 18th,
2013.

The
Terms of Settlement and the terms of Schedule “A” shall be governed by the laws in force in the State of Colorado,
and the U.S., as the parties expressly acknowledge and agree that Intrawest and its affiliates have a large business presence
in the State of Colorado. Each party irrevocably submits to the non-exclusive jurisdiction of the courts of Colorado and all courts
competent to hear appeals from those courts with respect to any matter related to this Agreement. You expressly waive any right
to a jury trial relating to any dispute arising under the Terms of Settlement or Schedule “A”.

Please
acknowledge receipt of this letter and the attachment below by signing and returning to Mara Pagotto by the end of day October
3rd, 2013. If you have any questions or require clarification on any of the matters addressed in this letter, please
do not hesitate to contact Mara Pagotto at 303.749.8220.

Yours
truly,

INTRAWEST
U.S. HOLDINGS INC.

/s/ Bill
Jensen

Bill
Jensen
 Chief Executive Officer

cc:
Mara Pagotto, Chief People Officer

Enclosure

I,
Dallas E Lucas, acknowledge receipt of this letter and the Schedule A “Release and Indemnity” attached.

	 	 	 
	/s/ Dallas E Lucas	 	10/2/13
	Signature	 	Date

    	Page 2 of 4

    	 

    

SCHEDULE
“A”- RELEASE AND INDEMNITY

                    WHEREAS
on or about August 1, 2012, Dallas E Lucas (the “Employee”) entered into an Employment Agreement (“Agreement”)
with Intrawest U.S. Holdings Inc. (“Intrawest”);

                    AND
WHEREAS the Employee acknowledges and agrees that he has received from Intrawest all compensation to which he is entitled
for services provided to Intrawest through the Termination Date. The Employee further acknowledges and agrees that he is not entitled
to any accrued vacation or other benefits, and that he has received reimbursement from Intrawest of all reasonable business expenses
incurred by him through the Termination Date, if any, in accordance with Intrawest’s expense reimbursement policy and practices
and applicable law.

                    AND
WHEREAS the Employee wishes to receive the payments outlined under the Terms of Settlement, which are conditional on his execution
of this Release and Indemnity;

                    AND
WHEREAS the Employee has agreed to accept the Terms of Settlement outlined in the letter dated October 1st,
2013, to which this Release and Indemnity is attached as Schedule “A”, in full and final settlement of all claims
which the Employee may have against the Releasees (as hereinafter defined), including, without limitation, with respect to the
Agreement, the Employee’s employment thereunder and/or the termination of the Agreement, the Employee’s employment
thereunder, and the Employee’s employment with Intrawest;

                    IN
CONSIDERATION of the Terms of Settlement, the Employee releases and forever discharges Intrawest and any parent, subsidiaries,
affiliates or corporations associated with or related to Intrawest and each of their respective past, present, and future officers,
directors, employees, agents, trustees, and shareholders, and the respective successors, heirs and assigns of these individuals
(collectively referred to as the “Releasees”) from any and all actions, causes of action, proceedings, claims, complaints
and demands whether statutory, contractual or pursuant to the common law, the civil law or at equity, which have arisen at any
time from the beginning of time up to and including the Termination Date (collectively “Claims”), including, without
limitation, Claims with respect to the Agreement, the Employee’s employment thereunder, the termination of the Agreement
and the Employee’s employment thereunder, including any Claims for salary, wages, anticipated earnings, commissions, bonus,
incentive pay, stock options, benefits, perquisites, overtime pay, vacation pay, holiday pay, pay pursuant to employment standards
legislation as amended from time to time, any other form of remuneration, notice of termination, termination, pay, severance pay,
compensation in lieu of notice, damages for wrongful dismissal, reinstatement in employment, damages of any kind, as well as any
express or implied right under any contract of employment, the common law, the civil law, at equity or under the applicable employment
standards and human rights legislation or under any other statute or regulation. The Claims include, but are not limited to, Claims
under federal, state, or local statutes, ordinances, regulations or orders in the United States, including but not limited to
the Age Discrimination in Employment Act, as amended, 29 U.S.C. ‘621 et seq., and Title VII of the
1964 Civil Rights Act, as amended, 42 U.S.C. ‘2000e et seq. Notwithstanding the foregoing; the Releases
do not extend to Claims for indemnification by Employee to which Employee would otherwise be entitled under any organizational
document of Intrawest ULC or any of its affiliates or Claims involving losses or damages that would be fully covered under any
applicable insurance contract.

                    FOR
THE CONSIDERATION, the Employee further agrees not to make any Claims against, take any proceedings against, or file suit
against any of the Releasees or any entities or persons which are not Releasees as to any Claim hereby released.

                    FOR
THE CONSIDERATION, the Employee further agrees to indemnify and save harmless the Releasees from any and all claims or demands
under the U.S. Internal Revenue Service and any other U.S. statute or regulations for or in respect of any failure on the
part of the Releasees to withhold income tax, or any other tax, premium, payment or levy from all or any part of the consideration
and any interest or penalties relating to the failure to withhold and any costs or expenses incurred in defending such claims
or demands, provided that the Employee shall have no liability under this paragraph with respect to any failure by any of the
Releasees to remit any amounts withheld from all or part of the said consideration to the appropriate governmental authority.

                    THIS
RELEASE AND INDEMNITY will not apply to any claims that the Employee may have relating to the failure or the refusal of Intrawest
to comply with the Terms of Settlement.

    	Page 3 of 4

    	 

    

                    THE
EMPLOYEE ACKNOWLEDGES that this Release and Indemnity and the Terms of Settlement must remain confidential and unless he is
required by law, undertakes not to divulge them to any person, except to counsel, his financial advisors, or to his immediate
family;

                    THE
EMPLOYEE ALSO DECLARES that he has been advised by Intrawest to discuss the Terms of Settlement and this Release and Indemnity
with legal counsel before signing this Release and Indemnity, he has had a reasonable opportunity to seek independent legal advice
with respect to the Terms of Settlement as well as this Release and Indemnity and fully understands them. The Employee voluntarily
accepts the Terms of Settlement for the purpose of making full and final compromise, adjustment and settlement of all Claims as
aforesaid.

                    THE
EMPLOYEE FURTHER DECLARES that he was afforded a 21-day period in which to consider the Terms of Settlement and this Release
and Indemnity, and, if applicable, has voluntarily waived the full 21-day period of time by executing this Release and Indemnity
on the date indicated below. The Employee further represents that he has knowingly and voluntarily signed this Release and Indemnity
as his own free act, without coercion or duress, and has returned this fully executed Release and Indemnity to Intrawest’s
designated representative for this limited purpose, Mara Pagotto, 1621 18th Street, Suite 300, Denver, Colorado 80202.
The Employee acknowledges that he may revoke this Release and Indemnity by arranging for the receipt by Ms. Pagotto, Intrawest’s
designated representative for this limited purpose, of a written notice of said revocation within the seven (7) day period following
the designated representative’s receipt of the Release and Indemnity executed by Employee. If Intrawest’s designated
representative receives such timely notice of revocation, this Release and Indemnity will be null and void, and without any effect
whatsoever. If Intrawest’s designated representative does not receive such timely written notice of revocation, this Release
and Indemnity will take effect on the eighth day following receipt of the Release and Indemnity (executed by the Employee) by
Intrawest’s representative.

                    THIS
RELEASE AND INDEMNITY, together with the Terms of Settlement and the Agreement incorporated by reference, sets forth the entire
agreement and understanding of the parties, and, upon the effective date of this Release and Indemnity, shall supersede all prior
agreements, arrangements and understandings between the parties. No term or provision of this Release and Indemnity may be modified
or extinguished, in whole or in part, except by a writing which is dated and signed by the Employee and the President of Intrawest.

                    THIS
RELEASE AND INDEMNITY will be deemed to have been made in and will be construed in accordance with the laws of the State of
Colorado.

                    THIS
RELEASE AND INDEMNITY will enure to the benefit of and be binding upon the Employee and his heirs, estate, members of his
family, executors, administrators, legal personal representatives, successors and assigns.

                    THIS
RELEASE AND INDEMNITY shall not be construed more strictly against one party than another merely by virtue of the fact that
it may have been prepared by one of the parties.

                    BY
ENTERING INTO THIS RELEASE AND INDEMNITY, none of the Releases nor the Employee admits any impropriety, wrongdoing or liability
of any kind whatsoever, and on the contrary, each expressly denies the same.

                    IN
WITNESS WHEREOF the Employee has executed this document at Denver, CO, on the 11
day of October, 2013.

	 	 	 
	SIGNED in the presence of:	 	 
	 	 	 
	/s/ [Illegible]	 	/s/ Dallas E Lucas
	Witness	 	Dallas E Lucas

 

    	Page 4 of 4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}]]