Document:

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                                                                   EXHIBIT 10.35

                           AMENDED AND RESTATED LEASE

      This Lease, made and entered into this 16th day of November, 2000, by and
between the Inhabitants of the Town of Carrabassett Valley, a body corporate
under the laws of the State of Maine (the "TOWN"), and Sugarloaf Mountain
Corporation, a corporation existing under the laws of the State of Maine, whose
address is Route 27, Carrabassett Valley, Maine ("LESSEE"), and amends and
restates in its entirety that certain Lease entered into by and between the TOWN
and Mountain Greenery, dated September 10, 1984, which lease was assigned from
Mountain Greenery to LESSEE on or about June 3, 1987.

                                   WITNESSETH:

      That for and in consideration of the rent to be paid by LESSEE and the
other consideration given by the LESSEE herein, the transfer of certain real and
personal property (the "Other Assets") by LESSEE to the TOWN, the obtaining by
LESSEE of the releases or subordination of liens in the Other Assets, and for
other good and valuable consideration, the TOWN hereby leases to the LESSEE, and
LESSEE takes and leases in an "as is" condition from the TOWN, the real and
personal property described and shown on the attachment labeled EXHIBIT A and
made a part hereof.

      Said leased property, real and personal, shall hereinafter be referred to
as the "Premises."

      TO HAVE AND TO HOLD the same Premises unto LESSEE, subject to the
conditions and covenants herein contained, for the term hereinafter specified.

      The parties hereto further agree as follows:

                                    ARTICLE I

                                  TERM OF LEASE

      The initial term ("Term") of this lease shall be for a term of 23 years,
commencing the 16th day of November, 2000, and terminating at midnight on the
16th day of November, 2023.

                                   ARTICLE II

                                 OPTION TO RENEW

      Provided that no Event of Default by LESSEE then exists under the terms of
this Lease, LESSEE shall be entitled to renew the term hereof for one (1)
additional period of ten (10) years (the "Renewal Term") by giving written
notice (the "Renewal Notice") to the Town, in accordance with the terms of this
Lease, at least ten (10) months prior to the

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expiration of the Term hereof. If LESSEE gives a Renewal Notice, this Lease
shall continue in full force and effect until the expiration of the Renewal
Term.

                                   ARTICLE III

                            TERMINATION; HOLDING OVER

      A. TERMINATION. Unless renewed pursuant to Article II, this Lease shall
terminate at the end of the Term without the necessity of any notice. LESSEE
shall, at its expense, at the expiration of the Term, or Renewal Term, if
applicable, or any earlier termination of this Lease, (a) promptly surrender to
the TOWN possession of the Premises in good order and repair (ordinary wear and
tear excepted), (b) remove therefrom the LESSEE's goods and effects and any
machinery, trade fixtures and equipment which are not owned by the TOWN, and (c)
repair any damage to the Premises caused by such removal. In addition, at the
expiration or earlier termination of this Lease, LESSEE shall continue to allow
the TOWN to use the clubhouse located near the Premises and used in connection
therewith for a period of one (1) year (during the golf season only) upon
payment by the TOWN to LESSEE of the fair rental value thereof.

      B.    HOLDING OVER.

            (i)   WITH CONSENT. If LESSEE shall be in possession of the Premises
                  after the expiration of the Term, or Renewal Term, if
                  applicable, or any earlier termination of this Lease, after
                  obtaining the TOWN's written consent to such continued
                  occupancy, such occupancy shall be deemed to be under a
                  month-to-month tenancy, which shall continue until either
                  party hereto notifies the other in writing, by at least
                  fifteen (15) days, that the notifying party elects to
                  terminate such occupancy at the end of such fifteen (15) day
                  period, in which event such occupancy shall so terminate, and
                  the rent due shall equal one hundred twenty-five percent
                  (125%) of the rent for the lease year during which expiration
                  of the Term, or Renewal Term, if applicable, or earlier
                  termination occurs.

            (ii)  WITHOUT CONSENT. If LESSEE continues to occupy the Premises
                  after the expiration of the Term, or Renewal Term, if
                  applicable, or any earlier termination of this Lease, without
                  having obtained the TOWN's written consent to such continued
                  occupancy, then, without altering or impairing any of the
                  TOWN's rights under this Lease or applicable law or implying
                  any right to remain in possession, LESSEE hereby agrees to pay
                  to the TOWN as rent for the Premises until the LESSEE
                  surrenders possession of the Premises to the TOWN, a sum
                  equaling two hundred percent (200%) of the amount of the rent
                  for the lease year during which

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                  expiration of the Term, or Renewal Term, if applicable, or
                  earlier termination occurs.

                                   ARTICLE IV

                            PURPOSE AND IMPROVEMENTS

      LESSEE shall use the Premises for the operation and maintenance of a
public golf facility and appurtenances, and the Premises shall be used only for
such purposes unless consent to some other use is obtained from the TOWN in
writing in the TOWN's sole discretion. LESSEE shall use commercially reasonable
efforts to keep the golf course on the Premises open during the golf season,
weather permitting. The parties acknowledge that the typical golf season runs
from April 15 through November 15, subject to weather conditions.

      A. MAINTENANCE. LESSEE shall maintain all portions of the Premises,
including but not limited to the maintenance garages comprising a portion of the
Premises, in first class quality, and to perform, at its sole expense (except as
otherwise provided herein), all repairs and improvements to the Premises
necessary to carry out the foregoing. Notwithstanding the foregoing, the costs
of Extraordinary Maintenance, as hereafter defined, shall be paid from an
account (the "Capital Reserve Account") to be established by the TOWN, all funds
in which Capital Reserve Account shall be the exclusive property of the TOWN.
Beginning after the expiration of the first three years of the Term, and each
and every year thereafter for the balance of the Term, each of the TOWN and
LESSEE shall contribute $15,000 annually to the Capital Reserve Account, such
contributions to be made on or before April 15 in each and every year. If LESSEE
sends a Renewal Notice, as provided in Article II, the Town and the LESSEE shall
agree in good faith on the amount of annual contributions to be made by each of
them during the Renewal Term.

      "Extraordinary Maintenance" shall be defined as any single incident of
golf course maintenance costing in excess of $25,000 (the "Base Maintenance
Amount") during the first year of the Term. Beginning in the second year of the
Term, and during each and every year of the Term and Renewal Term thereafter,
the Base Maintenance Amount shall be adjusted based on changes in the Consumer
Price Index from year to year, with the base Consumer Price Index being that in
effect on the date of this Lease. To the extent that the cost of any such
maintenance project exceeds $25,000, as adjusted, then any such cost in excess
of $25,000, as adjusted, shall be paid by the Town solely from funds contained
in the Capital Reserve Account related. In the event that there are insufficient
funds in the Capital Reserve Account to pay such cost, then to the extent of
such insufficiency, the cost shall be shared equally by the TOWN and LESSEE.
Payments from the Capital Reserve Account shall be made to LESSEE within 5
business days of invoice.

      B. LESSEE'S WORK. LESSEE shall cause to be performed all work on the
Premises referred to in EXHIBIT B attached hereto, and such other work as may be

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approved by the TOWN. All such work shall be performed in good and workmanlike
manner, with contractors approved by the TOWN (such approval not to be
unreasonably withheld, conditioned or delayed). Other than improvements listed
in EXHIBIT B, LESSEE shall not make any material alterations, additions or
improvements to the Premises without first obtaining the TOWN's written consent,
which consent will not be unreasonably withheld, conditioned or delayed. For
purposes of the foregoing, a material alteration, addition or improvement shall
be any item with a cost in excess of $25,000. LESSEE shall hold the TOWN
harmless from any and all costs incurred on account of any work performed on the
Premises, other than those which are payable from the Capital Reserve Account.

      LESSEE shall (a) within 30 days after it is filed or claimed, have
released (by bonding or otherwise) any mechanics', materialman's or other lien
filed or claimed against any or all of the Premises, by reason of labor or
materials provided for LESSEE or any of its contractors or subcontractors, or
otherwise arising out of LESSEE's use or occupancy of the Premises, and (b)
defend, indemnify and hold harmless the TOWN against and from any and all
liability, claim of liability or expense (including, by way of example rather
than of limitation, that of reasonable attorneys' fees) incurred by the TOWN on
account of any such lien or claim.

      C. NON-DISCRIMINATION. The LESSEE agrees that the portions of the Premises
open to the public (together with access thereto for purposes of using the
Premises) shall be equally available to all adult members of the public without
discrimination. Any discrimination by the LESSEE in the dispensing of food and
beverage as provided for herein or in the use of any golf facility hereinabove
described on grounds of race, sex, religion or national origin shall be deemed
to be a breach of this Lease. It is understood and agreed that seasonal
memberships shall not constitute a breach of this agreement nor do preferred
arrangements for members.

      The LESSEE agrees that it will not discriminate against any employee or
applicant for employment, to be employed in the operation of the Premises or the
performance of this Lease with respect to his or her hire, tenure, terms,
conditions or privileges because of age, except when based on a bona fide
occupational qualification or because of race, sex, religion or national origin.
LESSEE understands that any such discrimination shall be deemed to be a breach
of this Lease.

                                    ARTICLE V

                                   [RESERVED]

                                   ARTICLE VI

                             RENT; LETTER OF CREDIT

      A. BASE RENT. During the Term of this Lease, LESSEE covenants and agrees
to pay to the Town annual base rent ("Base Rent") equal to all principal,
interest and

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other payments (such other payments to be in amounts previously approved by
LESSEE) incurred by the TOWN in connection with any municipal bond financing(s)
entered into by the TOWN after the date hereof and prior to November 1, 2001 for
improvements to the Golf Course (provided that all such amounts have promptly
been made available to LESSEE for such improvements), plus the sums set forth on
EXHIBIT C attached hereto. The TOWN shall notify LESSEE as soon as reasonably
possible of such amounts. Payments equal to 1/2 of the annual Base Rent due for
the year in question shall be made semi-annually on the 15th day of April and
October.

      The Base Rent shall be adjusted during the Renewal Term, if any, based on
the average Base Rent for fourth through twentieth years of the Term, adjusted
for changes in the Consumer Price Index ("CPI") since the date of this Lease,
with the CPI on the date hereof being considered the base CPI for purposes of
calculating the change in CPI over the Term.

      B. ADDITIONAL RENT. In addition to Base Rent, LESSEE shall pay all costs
and expenses in connection with the operation, maintenance (excluding
Extraordinary Maintenance, as defined in Article IV A hereof) and repair of the
Premises, including but not limited to, real and personal property taxes,
plowing, mowing, seeding and all other costs and expenses related to the
Premises.

      C. CAPITAL RESERVE ACCOUNT. In addition to base rent and additional rent,
LESSEE shall pay into the Capital Reserve Account the amounts referred to in
Article IV.

      D. LETTER OF CREDIT. Simultaneously with the execution of this Lease, and
continuously during the Term hereof, LESSEE shall provide to the TOWN a letter
of credit in favor of the TOWN, which shall be renewed from time to time (but no
more often than annually) in order to comply with this paragraph, and shall be
maintained in effect throughout the Term and any Renewal Term of this Lease. The
letter of credit shall be issued by Fleet National Bank or other bank reasonably
acceptable to the TOWN, shall be available to be drawn on by the TOWN upon an
Event of Default by LESSEE under this Lease, and shall otherwise be upon terms
and conditions as reasonably acceptable to the TOWN in writing, and at any point
in time during the term of this Lease, shall be in an amount not less than the
total Base Rent due hereunder for the eighteen (18) month period next following
any such point in time, less amount of any payments for such time period as
listed on Exhibit C. The letter of credit shall otherwise be on terms and
conditions acceptable to the TOWN in its reasonable discretion.

                                   ARTICLE VII

                             QUALITY OF GOLF COURSE

      LESSEE shall have sole possession of, and responsibility for, maintenance
(except "Extraordinary Maintenance") of, the Premises, including all
improvements constructed thereon.

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      The TOWN, from time to time, at its sole election, may cause the USGA or
another outside party reasonably acceptable to LESSEE, inspect and report on the
status and condition of the Premises, and recommendations relating to the same,
and its use and status as a first class golf course, such inspections to be paid
for by LESSEE, provided that LESSEE shall be obligated to pay for such
inspections not more frequently than once every two (2) years.

      The TOWN shall advise the LESSEE in writing of any material deficiency in
the maintenance of the Premises, as reported by such outside party. LESSEE shall
diligently commence efforts to correct all such deficiencies promptly upon
receipt of written request thereof from the TOWN, and shall complete such
correction within 45 days of such notice. If such deficiencies are of a nature
as cannot reasonably be corrected within such 45-day period, LESSEE shall
commence the correction of such deficiency within said 45 day period and shall
diligently pursue the correction of such deficiency. LESSEE may propose to the
TOWN a different time period to cure any such deficiency, but such different
time period shall not become the applicable time period without the written
consent of the TOWN, which consent shall not be unreasonably withheld,
conditioned or delayed. The cost to correct any deficiency (or group of
deficiencies identified as part of the same inspection) caused by LESSEE's
negligence in the operation of the Premises shall be paid for by LESSEE. The
cost to correct all other deficiencies (or group of deficiencies identified as
part of the same inspection) shall be paid for from the funds in the Capital
Reserve Account.

                                  ARTICLE VIII

                                    OPERATION

      A. DISCOUNTED RATES. The parties acknowledge that LESSEE shall have the
right to determine and set the fees charged for golf play on the Premises. The
parties further acknowledge that LESSEE has historically offered discounts off
its standard rates to residents and taxpayers of the Town of Carrabassett Valley
for play during off-peak periods. LESSEE shall, during the Term and any Renewal
Term of this Lease, continue to offer similar discounts and programs to
residents and taxpayers of the Town of Carrabassett Valley for play during
off-peak periods.

      B. COMPLIANCE WITH LAW. In its operation of the Premises, LESSEE shall
observe all applicable federal, state and municipal laws, regulations and
ordinances and shall take such actions as may be necessary to the protection of
health, safety and well-being of the public.

      LESSEE and American Skiing Company shall jointly and severally defend,
protect, indemnify and save harmless the TOWN, its successors and assigns, from
and against any and all liabilities, claims, demands, losses, costs, expenses
(including attorneys' fees and costs) and causes of action of any nature
whatsoever arising out of or related to any breach or violation of this Article
VIII B.

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      C. FOOD SERVICE REGULATIONS. LESSEE shall, at its expense, meet the
requirements of local and state health departments covering the handling and
dispensing of food and beverages. Adequate toilet facilities shall be provided
at acceptable locations on the golf course and at the clubhouse. Refuse and
waste materials shall be handled as required by applicable state and local laws,
ordinances and regulations.

      D. PERMITS. LESSEE agrees to procure, at its expense, all meters and
permits necessary for making connections and continuing utility services, and
for conducting all operations relating to the Premises.

      E. GOLF TOURNAMENTS. For purposes of promoting the facility, the TOWN may
from time to time join with the LESSEE in holding major golf tournaments of
State and National significance.

      F. WINTER USAGE. LESSEE agrees that off-season usage of Premises
(excepting the clubhouse, and greens area) by the public in conjunction with the
touring trail system of the Carrabassett Valley Touring Center for snow shoeing,
cross country skiing, and hiking will be permitted. Notwithstanding the
foregoing, no mechanized grooming of the Premises shall occur without the prior
written consent of the TOWN and LESSEE.

                                   ARTICLE IX

                                    INSURANCE

      During the Term and any Renewal Term of this Lease, LESSEE shall procure
and keep in force, or shall, where appropriate, require LESSEE's contractors and
subcontractors to procure and keep in force, the following insurances, with
companies acceptable to the TOWN:

      A.    Workers' compensation insurance, sufficient to meet State of Maine
            statutory requirements, including employers liability coverage,
            protecting all employees of LESSEE and employees of its contractors
            or subcontractors during the Term and any Renewal Term of this
            Lease.

      B.    Comprehensive general liability insurance, including property, with
            limits, as to bodily injury liability, of $1,000,000.00 for each
            occurrence and $2,000,000.00 in the aggregate and, as to property
            damages liability of $1,000,000.00 for each occurrence and
            $2,000,000.00 in the aggregate.  Insurance policies required by
            this paragraph shall name LESSEE as an Insured and the TOWN (as
            Landlord and Lessor) as an additional Insured.  Such insurance
            shall be made effective prior to the beginning of the Term of
            this Lease and shall remain in effect during the entire Term and
            any Renewal Term of this Lease.

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      C.    Comprehensive automobile liability insurance with limits, as to
            bodily injury liability, of $1,000,000.00 for each person and
            $1,000,000.00 for each occurrence. Such insurance shall be made
            effective prior to the beginning of the initial term of this Lease
            and shall remain in effect during the entire term of this Lease.

      D.    If LESSEE fails to obtain or timely renew any insurance policy
            required herein, the TOWN may obtain or renew such policy and LESSEE
            shall promptly reimburse the TOWN for all costs associated with the
            same.

      E.    LESSEE agrees that thirty (30) days notice in writing shall be given
            the TOWN in the event of cancellation, non-renewal, termination or
            material change in any insurance policy required hereunder.

      Duplicate originals or certificates of all insurance policies required
hereunder shall be delivered to the TOWN prior to occupation of the Premises by
LESSEE. Copies of all renewal certificates shall be delivered to the TOWN upon
request. The entire amount collected for losses under any fire and extended
coverage policies shall be made available to repair, restore, or rebuild the
damage to the Premises. Any excess portion of the insurance fund remaining after
the cost of repairs, rebuilding or restoration is paid, shall be paid to the
LESSEE. In the event the insurance fund is insufficient to cover the cost of
repairs, rebuilding or restoration the excess cost shall be paid for from the
Capital Reserve Account.

      The parties hereto agree to have the insurance needs referred to in this
Article reassessed at least every five (5) years to determine whether or not the
coverages are adequate, and if in the reasonable judgement of the parties the
then current insurance amounts are inadequate, such amounts shall be adjusted to
mutually agreed levels.

                                    ARTICLE X

                            LANDLORD'S RIGHT OF ENTRY

      The TOWN and its agents shall be entitled to enter the Premises at any
time during the LESSEE's business hours and at any other reasonable time (a) to
inspect the Premises (b) to exhibit the Premises to any existing or prospective
purchaser, tenant or Mortgagee thereof, (c) to make any alteration, improvement
or repair to the Premises, or (d) for any other purpose relating to the
operation or maintenance of the Premises; provided, that the TOWN shall (i)
(unless doing so is impractical or unreasonable because of emergency) give the
LESSEE at least twenty-four (24) hours' prior notice of its intention to enter
the Premises, and (ii) use reasonable efforts to avoid thereby interfering with
the LESSEE's use and enjoyment thereof.

                                   ARTICLE XI

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                             NO ASSIGNMENT OF LEASE

      LESSEE shall not encumber, assign, sublet or otherwise transfer this Lease
or any interest herein, in whole or in part, unless and until the TOWN approves
such encumbrance, subletting or assignment in writing, which approval shall not
be unreasonably withheld. The TOWN hereby acknowledges and reaffirms its
existing consent to LESSEE's leasehold mortgage in favor of Fleet National Bank,
as agent (f/k/a BankBoston, N.A.)("Fleet"), and agrees not to unreasonably
withhold consent to any replacement leasehold mortgage on similar terms. The
TOWN shall not encumber, assign, sublet or otherwise transfer this Lease or any
interest herein, in whole or in part, unless and until the LESSEE approves such
encumbrance, subletting or assignment in writing, which approval shall not be
unreasonably withheld.

                                   ARTICLE XII

                  SUBORDINATION; ATTORNMENT AND NON-DISTURBANCE

      A. SUBORDINATION. Provided LESSEE receives a non-disturbance agreement in
form and substance reasonably satisfactory to LESSEE, this Lease shall be
subject and subordinate to the lien, operation and effect of each mortgage, deed
of trust, and/or other instrument of encumbrance heretofore or hereafter granted
or created by the TOWN, in each case in favor of the lender executing such
non-disturbance agreement, and covering any or all of the Premises (and each
renewal, modification, consolidation, replacement or extension thereof) (each of
which is herein referred to as a "Mortgage"), all automatically and without the
necessity of any action by either party hereto.

      B. ATTORNMENT AND NON-DISTURBANCE. Subject to LESSEE'S rights under
Article XII(A), the LESSEE shall, promptly at the request of the TOWN or the
holder of any Mortgage (herein referred to as "Mortgagee"), execute, acknowledge
and deliver such further instrument or instruments on commercially reasonably
terms acceptable to LESSEE:

            (i)   evidencing such subordination as the TOWN or such Mortgagee
                  deems necessary or desirable, and
            (ii)  attorning to such Mortgagee, provided that such Mortgagee
                  agrees with the LESSEE that such Mortgagee will, in the event
                  of a foreclosure of any such mortgage or deed of trust take no
                  action to interfere with the LESSEE's rights hereunder, except
                  on the occurrence of an Event of Default.

                                  ARTICLE XIII

                                DEFAULT; REMEDIES

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      A. EVENTS OF DEFAULT. As used in this Lease, each of the following events
shall constitute, and is hereinafter referred to as, an "Event of Default":

            (i)   if the LESSEE fails (a) to pay any Base Rent, additional
                  rent or other sum which it is obligated to pay by any
                  provision of this Lease, within thirty (30) days of the
                  date when due and payable hereunder, provided LESSEE
                  receives five (5) days prior written notice of such
                  failure, or (b) perform any of its other obligations under
                  the provisions of this Lease within thirty (30) days of
                  receipt of written notice from the Town of such failure; or
            (ii)  if the LESSEE (a) applies for or consents to the appointment
                  of a receiver, trustee or liquidator of the LESSEE or of all
                  or a substantial part of its assets generally, or as related
                  to the Premises, or (b) files a voluntary petition under any
                  federal or state bankruptcy, insolvency, or reorganization
                  law, or admits in writing its inability to pay its debts as
                  they come due, (c) makes an assignment for the benefit of its
                  creditors, (d) files a petition or an answer seeking a
                  reorganization or any arrangement with creditors, or seeks to
                  take advantage of any insolvency law, (e) performs any other
                  act of bankruptcy, or (f) files an answer admitting the
                  material allegations of a petition filed against the LESSEE in
                  any bankruptcy, reorganization or insolvency proceeding; or
            (iii) if (a) a petition or complaint is filed against LESSEE under
                  any state or federal bankruptcy, insolvency, or receivership
                  law, including, without limitation, an involuntary petition
                  under the federal bankruptcy code (the "Bankruptcy Code"), or
                  a complaint to appoint a receiver under state law, or (b) an
                  order, judgment or decree is entered by any court of competent
                  jurisdiction granting in whole or in part any of the relief
                  requested in a petition or complaint described in (a) above,
                  or (c) there otherwise commences as to the LESSEE or any of
                  its assets any proceeding under any bankruptcy,
                  reorganization, arrangement, insolvency, readjustment,
                  receivership or similar law, and if such proceeding continues
                  unstayed for more than sixty (60) consecutive days after any
                  stay thereof expires; or
            (iv)  if the LESSEE (a) fails to occupy and assume possession of the
                  Premises within fifteen (15) days after the Commencement Date
                  or (b) fails to continuously occupy and operate the Premises
                  pursuant to the terms hereof; or
            (v)   if there shall be a Change in Control of LESSEE, defined as
                  the sale or transfer of a majority of the stock of LESSEE, or
                  a sale, lease, disposition or transfer (other than encumbrance
                  in the ordinary course of business) of substantially all of
                  the assets of LESSEE, in either case without the prior consent
                  of the Town, which consent shall not be unreasonably withheld,
                  conditioned or delayed; provided, however, that the exercise
                  of rights under any

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                  pledge of stock in LESSEE in favor of Fleet or any successor
                  or replacement lender holding a leasehold mortgage to which
                  the Town has consented under Article XI shall not be deemed a
                  Change in Control, but that any further sale or transfer of a
                  majority of any stock so pledged shall be deemed a Change of
                  Control; or
            (vi)  if LESSEE fails to obtain, prior to December 15, 2000, upon
                  terms reasonably satisfactory to the TOWN, the release of the
                  Other Assets (or subordination, with respect to easements
                  comprising a portion of the Other Assets) from the lien of any
                  mortgage or other encumbrance affecting the same; or
            (vii) if LESSEE fails to pay its debts to creditors generally as
                  they become due.

      B.    REMEDIES.  Upon the occurrence of any Event of Default, the TOWN
may do any one or more of the following:

      (i)   terminate this lease, by giving written notice to Lessee of such
            termination; and/or
      (ii)  re-enter and repossess any or all of the Premises and any or all
            improvements thereon and additions thereto, and receive from LESSEE
            all reservations and deposits related to the Premises held by
            LESSEE. In connection therewith, LESSEE shall cooperate with the
            TOWN in accomplishing an orderly transfer of the Premises and will
            assist with the transitional issues such as staffing and operations;
            and/or
      (iii) declare the entire balance of the Base Rent for the remainder of the
            Term or Renewal Term hereof, as applicable, to be due and payable
            immediately, and collect such balance in any manner not inconsistent
            with applicable law. Accelerated payments hereunder shall not
            constitute a penalty or forfeiture or liquidated damages, but shall
            merely constitute payment of rent in advance, provided, however,
            that LESSEE shall be entitled to a credit against such sums for any
            rents or proceeds (net of commissions and other costs of reletting)
            received by the Town from re-letting or operating the Premises
            during all or any portion of the Term; and/or
      (iv)  in the TOWN's own name but either (i) as agent for the LESSEE, if
            this Lease has not then been terminated, or (ii) for the benefit of
            the LESSEE, if this Lease has then been terminated, relet any or all
            of the Premises with or without any additional premises, for any or
            all of the remainder of the Term or Renewal Term hereof, as
            applicable, (or, if this Lease has then been terminated, for any or
            all of the period which would, but for such termination, have
            constituted the remainder of the Term or Renewal Term) or for a
            period exceeding such remainder, on such terms and subject to such
            conditions as are commercially reasonably, and collect and receive
            the rents therefor. Anything contained in the provisions of this
            Lease to the contrary notwithstanding, (i) the TOWN shall not have
            any duty or

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            obligation to relet any or all of the Premises as the result of any
            Event of Default, or any liability to the LESSEE or any other person
            for any failure to do so or to collect any rent or other sum due
            from any such reletting; and (ii) the LESSEE shall have no right in
            or to any surplus which may be derived by the TOWN from any such
            reletting, in the event that the proceeds of such reletting exceed
            any rent due hereunder, installment thereof or other sum owed by the
            LESSEE to the TOWN hereunder; and/or
      (v)   Cure such Event of Default in any other manner, but such cure, if
            performed by or for the account of the TOWN, shall not constitute a
            cure of any such default as to LESSEE, or a waiver of any rights of
            the TOWN; and/or
      (vi)  Pursue any combination of such remedies and/or any other right or
            remedy available to the TOWN on account of such Event of Default
            under this Lease and/or at law or in equity.

      Nothing herein contained shall limit or prejudice the TOWN's right to
      obtain as damages, by reason of such termination, an amount equal to the
      maximum allowed by any statute or rule of law in effect at the time when,
      and governing the proceedings in which, such damages are to be proved.

      C. LESSEE TO REMAIN LIABLE. No such expiration of termination of this
Lease, or summary dispossession proceedings, abandonment, reletting, bankruptcy,
re-entry by the TOWN or vacancy, shall relieve the LESSEE of any of its
liabilities and obligations under this Lease (whether or not any or all of the
Premises are relet), and the LESSEE shall remain liable to the TOWN for all
damages resulting from any Event of Default, including but not limited to, any
damage resulting from the breach by the LESSEE of any of its obligations under
this Lease to pay rent and any other sums which the LESSEE is obligated to pay
hereunder.

      D. ADDITIONAL REMEDIES. In addition to the TOWN's remedies set forth
above, the TOWN may, at its sole discretion and without notice, invoke the
following provisions:

      (i)   Upon the filing by or against LESSEE of any petition under the
            Bankruptcy Code, to the fullest extent permitted by law, this
            Lease and all rights of the LESSEE hereunder shall automatically
            terminate with the same force and effect as if the date of any
            such event were the date stated herein for the expiration of the
            Term, or Renewal Term, as applicable, and the LESSEE shall vacate
            and surrender the Premises, but shall remain liable as herein
            provided.  The TOWN reserves any and all remedies provided herein
            or at law or in equity.

      (ii)  If this Lease is not terminated by the TOWN as set forth above
            because such termination is not permitted under the Bankruptcy Code
            upon the filing of a petition by or against LESSEE under the
            Bankruptcy Code, the

<PAGE>

            LESSEE as LESSEE, and as debtor and debtor in possession, and any
            trustee who may be appointed, shall be conclusively deemed to have
            agreed as follows:

            (a)   TOWN cannot be required by applicable state of federal law,
                  other than the Bankruptcy Code, to accept performance from or
                  to render performance to a party other than LESSEE, the debtor
                  or the debtor in possession;

            (b)   to perform promptly each and every obligation of the LESSEE
                  under this Lease until such time as this Lease is either
                  terminated, or is rejected or assumed by order of a United
                  States Bankruptcy Court or other United States Court of
                  competent jurisdiction; or deemed rejected by operation of
                  law, pursuant to 11 U.S.C. ss.365(c)(4);

            (c)   to pay in advance on the 15th day of each April and October as
                  reasonable compensation for use and occupancy of the Premises
                  an amount equal to one half of all annual Base Rent and all
                  additional rent.

            (d)   to reject or assume this Lease within sixty (60) days of the
                  filing of such petition under Chapter 7 of the Bankruptcy Code
                  or within thirty (30) days of the filing of a petition under
                  any other Chapter, or within such earlier time as may be
                  required under the Bankruptcy Code;

            (e)   to give the TOWN at least forty-five (45) days prior written
                  notice of any proceeding relating to any assumption of this
                  Lease;

            (f)   to give the TOWN at least thirty (30) days prior written
                  notice of any abandonment of the Premises, any such
                  abandonment to be deemed conclusively a rejection of this
                  Lease;

            (g)   to be deemed conclusively to have rejected this Lease in the
                  event of the failure to comply with any of the above; and

            (h)   to have consented to the entry of an order by an appropriate
                  United States Bankruptcy Court providing all of the above,
                  waiving notice and hearing of the entry of same.

                                   ARTICLE XIV

<PAGE>

                               HAZARDOUS MATERIALS

      The LESSEE represents and warrants to the TOWN that the present use and
condition of the Premises comply with all applicable state and federal
environmental laws, regulations and ordinances. LESSEE covenants that it will
not introduce or permit to be introduced or located on the Premises any
Hazardous Materials in violation of law any Hazardous Materials as hereafter
described, and that the LESSEE will not violate any Environmental Laws in
connection with the LESSEE's use, maintenance or operation of the Premises,
including but not limited to the maintenance garages comprising a portion of the
Premises (the "Maintenance Garages"), and the LESSEE shall, and hereby does,
totally and completely defend, save, and hold harmless the TOWN, its employees,
agents, officers, trustees, trust beneficiaries, and directors, successors and
assigns (the "Indemnified Parties") from and against, and shall promptly pay to
or reimburse the Indemnified parties for, all claims, demands, actions, losses,
penalties, costs, expenses and damages, including all attorneys' fees and
expenses and court costs (including any of the same incurred in connection with
enforcing this indemnity), investigation and laboratory fees, and cleaning and
removal costs incurred by or asserted against the Indemnified Parties by reason
of the inaccuracy or breach of the covenant contained in this subparagraph. Upon
termination of this Lease, the LESSEE covenants and agrees to remove any and all
Hazardous Materials introduced by it in violation of this Lease at its sole
expense. The LESSEE acknowledges and agrees that the expiration or sooner
termination of this Lease shall not relieve or release the LESSEE of any legal
liability or responsibility whether by way of damages, penalties, remedial
actions or otherwise for unlawful discharges of Hazardous Materials. As used
herein, "Hazardous Materials" shall mean any flammable explosives, radioactive
materials, hazardous materials, hazardous waste, hazardous matter, hazardous or
toxic substances, or toxic pollutants, oil or waste oil as any of those terms
are used or defined in the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, as amended (42 U.S.C. ss.ss.9601 et seq.), the
Hazardous Materials Transportation Act, as amended (49 U.S.C. ss.ss.2802, et
seq.), the Resource Conservation and Recovery Act, as amended (42 U.S.C.
ss.ss.6901, et seq.), applicable Maine statutes or any similar federal, state or
local law, or in the regulations adopted and publications promulgated pursuant
thereto, including all amendments to such laws and regulations and all
supplements or successors thereto, or any other pollutants, contaminants,
substances or materials that may constitute a hazard, peril or threat to the
health of persons, animals, plant life or the environment; excepting, however,
"Hazardous Materials" shall not for the purposes hereof include any materials or
substances in amounts or concentrations insufficient to require any remedial
action under any applicable law, order, rule or regulation of the federal, state
or local governments.

      LESSEE and American Skiing Company shall jointly and severally defend,
protect, indemnify and save harmless the TOWN, its successors and assigns, from
and against any and all liabilities, claims, demands, losses, costs, expenses
(including reasonable attorneys' fees and costs) and causes of action of any
nature whatsoever arising out of or related to any breach or violation of this
Article XIV.

<PAGE>

                                   ARTICLE XV

                                 INDEMNIFICATION

      LESSEE shall defend, protect, indemnify and save harmless the TOWN, its
successors and assigns, from and against any and all liabilities, claims,
demands, losses, costs, expenses (including attorneys' fees and costs) and
causes of action of any nature whatsoever for injury to or death of persons or
loss or damage to property, occurring on the Premises or in any manner growing
out of or connected with the LESSEE's use and occupation of the Premises,
including but not limited to the Maintenance Garages, or the physical or
environmental condition of the Premises, including but not limited to the
Maintenance Garages, arising during the Term or Renewal Term of this Lease,
together with all costs and expenses (including reasonable attorneys' fees and
expenses) in connection with enforcing this indemnity.

                                   ARTICLE XVI

                                WAIVER OF DEFAULT

      Any waiver by the TOWN of any default or breach of this Lease in any one
instance shall not be construed to be a continuing waiver of such default or
breach, nor as a waiver or permission, express or implied, of any other or
subsequent default or breach.

                                  ARTICLE XVII

                                  FORCE MAJEURE

      If by reason of strike, lockout, war, rebellion, material or labor
shortage due to a national emergency, fire, flood, hurricane or other casualty,
periods of excessive rain, or by any other matter not within its control, the
TOWN or LESSEE in good faith and without fault or neglect on its part is
prevented or delayed in the meeting of any condition except as relates to rental
payments or the maintenance of insurance which, under the terms of this Lease,
it is required to do or perform within a specified period of time, the period of
time within which such performance was to have been completed shall be extended
by a period of time equal to that of such delay or prevention, and the TOWN or
LESSEE, as the case may be, shall not be deemed to be in default if it
diligently performs and completes such work or covenant or specified period of
time as so extended.

                                  ARTICLE XIII

                                    EASEMENTS

      This Lease is subject to all easements affecting the Premises that are on
record in the offices of the Registry of Deeds of Franklin County, and any
easements permitted to be granted hereafter.

<PAGE>

                                   ARTICLE XIX

                                 GENERAL CLAUSES

      A. BINDING NATURE. All references to the parties to this Lease and all
covenants, conditions and agreements of this Lease shall apply to and be binding
upon the TOWN and LESSEE and their respective heirs, executors, administrators,
legal representatives, successors and assigns (when assignment is made by LESSEE
in accord with the provisions hereof) as if they were in each case fully named
and stated. In this Lease, both the TOWN and LESSEE are referred to in the
singular and neuter gender. However, such words and all other terms and words
used in this Lease regardless of the number and gender in which they are used,
shall be deemed and construed to include any other number (singular or plural)
and any other gender, masculine, feminine or neuter, as the sense of the writing
herein may require, the same as if such words had been fully and properly
written in the required number and gender.

      B. UNIQUE NATURE OF RELATIONSHIP OF PARTIES TO THIS LEASE. The TOWN and
LESSEE each acknowledge and agree that in entering into this Lease, they are
relying upon the unique attributes, abilities, goodwill, reputation, management
skill, and other characteristics of each other, and that performance of this
Lease, or any of the provisions of this LEASE, by any other party would not be
acceptable and would not constitute adequate consideration for entering into of
this Lease. The TOWN and LESSEE each acknowledge and agree that they would not
enter into a lease, upon the same terms and conditions hereof, with any other
party.

      C. NOTICES. All notices to the TOWN shall be sent by certified or
registered mail addressed to the Town Manager, Carrabassett Valley, Kingfield,
ME 04947, or at such other address as the TOWN may in writing from time to time
designate by written notice to the LESSEE. All notices to LESSEE shall be sent
by certified or registered mail addressed to LESSEE at Carrabassett Valley, ME
04947, with a copy by telecopier to Samuel L. Richardson, Goodwin, Procter &
Hoar LLP, Exchange Place, Boston, MA 02149, Fax 617-227-8591, or at such other
addresses as LESSEE may from time to time designate by written notice to the
TOWN.

      D. APPLICABLE LAW; SEVERABILITY. This Lease is made under the applicable
laws of the State of Maine and if any term, clause, provision, part or portion
of this Lease shall be adjudged invalid or illegal for any reason the validity
of any other part or portion of this Lease shall not be affected thereby any
invalid or illegal term, clause, provision, part or portion shall be deleted and
ignored as if the same had not been written.

      E. DUE AUTHORIZATION. The TOWN and LESSEE each represent and warrant to
the other that the execution, delivery and performance by them of this Lease and
each of the transactions contemplated hereby have been authorized by all
necessary corporate (in the case of LESSEE) or municipal (in the case of the
Town) actions.

<PAGE>

      IN WITNESS WHEREOF, the parties have caused this Lease to be executed as
of the ____ day of November, 2000.

                                    TOWN OF CARRABASSETT VALLEY

/s/ David Cota                      By: /s/ Robert Luce
------------------------------         ---------------------------------------
Witness
                                    SUGARLOAF MOUNTAIN
                                    CORPORATION

/s/ Jennifer S.G. Dionne            By: /s/ Foster A. Stewart, Jr.
------------------------------         ---------------------------------------
Witness                                Its:  Vice President

      American Skiing Company hereby joins in this lease for purposes of Article
and XIV hereof.

                                    American Skiing Company

                                    By: /s/ Foster A. Stewart, Jr.
                                       ---------------------------------------

                                LIST OF EXHIBITS

EXHIBIT A

      A complete legal description of the Premises will be attached.

EXHIBIT B

      Tenant's Work.

EXHIBIT C

      Base Rent<PAGE>

                                                                   EXHIBIT 10.43

                                                                  EXECUTION COPY

                              EMPLOYMENT AGREEMENT

      THIS EMPLOYMENT AGREEMENT (the "Agreement") hereby amends and restates the
Employment Agreement entered into by and between AMERICAN SKIING COMPANY, a
Delaware company, (the "Company"), and LESLIE B. OTTEN of Newry, Maine
("Executive"), dated August 9, 2000. This Agreement shall be effective between
Executive and the Company, its successors and assigns as of the close of
business on the day of the consummation of the transaction contemplated by the
Agreement and Plan of Merger dated as of November__, 2000 among the Company,
MeriStar Hotel & Resorts, Inc. and ASC Merger Sub, Inc. (the "Effective Date"),
pursuant to which the Company will be the surviving entity.

      WHEREAS, Executive has been employed as chairman and chief executive
officer of the Company; and

      WHEREAS, the Company desires to continue to employ Executive as chairman
and to enter into such an agreement embodying the terms of such employment; and

      WHEREAS, Executive desires to continue to serve as chairman of the
Company and to enter into the Agreement;

      NOW, THEREFORE, in consideration of the promises and mutual covenants
herein and for other good and valuable consideration, the parties hereby agree
as follows:

      1. TERM OF EMPLOYMENT. The Company hereby continues to employ Executive
for a period commencing on the Effective Date and ending on December 31, 2005
(the "Initial Term"); PROVIDED, HOWEVER, that on each December 31st, starting
with December 31, 2005, the term shall be automatically extended for an
additional one (1) year period (the first possible extension period therefore
being January 1, 2006 - December 31, 2006), unless, at least 90 days prior to
the relevant December 31, either party hereto shall provide written notice of
its or his desire not to extend the term hereof to the other party hereto
subject to Section 7 of the Agreement; such initial term and all automatic
extensions thereof shall be referred to herein as the "Employment Term".

<PAGE>

         2. POSITION.

         (a) During the Employment Term, Executive shall serve as Chairman of
the Board of Directors of the Company (the "Board"), Chairman of the Executive
Committee of the Board, a member of the Nominating Committee of the Board and a
member of the board of directors of ASC Utah and American Skiing Company Resort
Properties, Inc. and each Material Subsidiary listed on Exhibit A annexed
hereto.

         The duties, authority, and responsibilities of Executive with respect
to the Company shall be as follows:

         o        To conduct meetings of the Board;

         o        To assist in the development of a strategic business plan and
                  meet on a regular basis with the Chief Executive Officer of
                  the Company ("CEO") to review and update implementation plans;

         o        To chair the Executive Committee of the Board;

         o        To participate in all management executive committee meetings;

         o        To help develop a strategic branding strategy;

         o        To help maintain industry relations;

         o        To maintain community relations and public relations;

         o        To assist in coordinating governmental affairs;

         o        To help establish and review annual marketing plans; and

         o        To develop strategic alliances with other entities which so
                  as to seek to further promote revenue growth and real estate
                  development.

         For purposes of reporting and authority Executive shall have a rank
equal to that of the CEO of the Company, and there shall be no officer of the
Company who is senior to the Executive. In addition, Executive shall perform
such other duties as shall be reasonably determined by the Board, in addition to
those listed above, subject to the general direction, approval and control of
the Board.

         (b) Executive shall report directly to the Board.

                                       2

<PAGE>

         (c) Executive's place of employment shall be split between the
executive offices of the Company, the eastern regional offices of the Company at
Sunday River, Maine and the western regional offices at The Canyons, Utah.
Executive shall perform his duties hereunder from all such executive offices of
the Company, subject to travel requirements on account of Company business.

         (d) During the Employment Term, Executive shall devote the majority of
his business time and best efforts to the performance of his duties hereunder
and shall not engage in any Competitive Business (as such term is defined in
Section 8 of the Agreement), profession or occupation for compensation or
otherwise, without the prior written consent of the Board, PROVIDED, HOWEVER,
that Executive may continue to own and develop (i) through Sugarbush Land
Holdings, Inc. and/or SB River Realty LLC, real property located in or around
Warren, Fayston and Waitsfield, Vermont (the "Sugar Bush Property") and (ii)
through the Sunday River Land Corporation, real property located in or around
Newry and Riley Township, Maine (the "SR Property") subject to the following
limitations: Except to the extent to which any agreement between Executive and
the Company may be applicable with respect to real property, if Executive
proposes to sell or otherwise transfer his interest in the SR Property or enter
into a binding agreement to develop the SR Property with a third party
(collectively "Development"), other than the grant of a mortgage or other
security for an obligation, Executive shall notify the Company and Oak Hill
Capital Partners, L.P. at the address specified in Section 11(g) hereof, in
writing of such Development, and the terms and conditions of such Development.
The Notice shall further state that the Company shall have the right to purchase
or otherwise engage in such Development pursuant to terms and conditions at
least as favorable as those proposed to such third party (the "Right of First
Refusal"). If within twenty (20) days following delivery of the Notice, the
Company fails to deliver to Executive written notice of its intention to
exercise its Right of First Refusal pursuant to the previous sentence hereof,
then the Company shall be deemed to have waived its Right of First Refusal.

         (e) Notwithstanding anything herein, during the Employment Term,
Executive may not develop any real property for use in a Competitive Business
(as such term is defined in Section 8 of the Agreement). Nothing in this Section
2 shall limit or restrict Executive

                                       3

<PAGE>

from performing uncompensated services for or from serving on the board of
directors of any business entity, charitable, religious or any other
non-profit organization, so long as such service does not interfere with
Executive's ability or availability to perform his duties hereunder.
Executive shall provide the Board at least annually, a list of each such
board upon which he serves.

         3. BASE SALARY. During the Employment Term, the Company shall pay
Executive a base salary (the "Base Salary") at a minimum annual rate of $380,000
payable in regular installments in accordance with the Company's usual payroll
practices. Executive shall be entitled to such increases in his Base Salary, if
any, as may be determined from time to time in the sole discretion of the Board;
PROVIDED, HOWEVER, that in any event, on each anniversary of the Employment Term
commencing on or after January 1, 2001, Base Salary shall be increased by an
amount of not less than the increase in the Consumer Price Index over the 12
month period ending on December 31st of the preceding calendar year. Consumer
Price Index shall mean the Consumer Price Index for Urban Consumers issued by
the Department of Labor for Boston, Massachusetts or any substantially similar
index (the "CPI").

      4. BONUS PAYMENTS. Executive shall be afforded the opportunity to earn a
cash bonus for each calendar year ending during the Employment Term, contingent
upon the Company's achievement of certain specified target earnings before
interest, taxes, depreciation and amortization (the "EBITDA Budget") established
prior to each July 31st in respect of the fiscal year commencing thereafter, by
the Board or a committee thereof in its discretion (but after consultation with
Executive). Such bonus award shall be as follows: (i) $190,000 upon the
Company's attainment of 90% of the EBITDA Budget, and for each whole percentage
increase between 90% and 100%, such amount shall be increased ratably, (ii)
$300,000 upon the Company's attainment of 100% of the EBITDA Budget and for each
whole percentage increase between 100% and 110%, such amount shall be increased
ratably, and (iii) $380,000 upon the Company's attainment of 110% or greater of
the EBITDA Budget (the "Bonus"). The Bonus shall be paid at the same time as
annual bonuses are paid to other senior executives of the Company. The foregoing
amounts shall be subject to annual adjustment upward on each

                                       4

<PAGE>

anniversary of the Employment Term in accordance with increases in the CPI over
the preceding year; PROVIDED; HOWEVER that Executive shall have an opportunity
during the thirty (30) day period immediately following the adoption of a new
senior management team bonus plan (the "Senior Bonus Plan") by the Compensation
Committee of the Board, to elect to replace the bonus formula (in its entirety)
set forth in this Section 4 with the bonus formula (in its entirety) to be used
to calculate the total annual bonus to be paid to the CEO of the Company under
the terms of the Senior Bonus Plan. Executive shall make such election in
writing which shall be delivered to the Board or the Compensation Committee of
the Board prior to the expiration of such thirty (30) day period. In addition,
in the Board's sole and complete discretion, with respect to any fiscal year,
Executive may also be awarded an additional bonus not to exceed $100,000 (the
"Discretionary Bonus").

         5. EMPLOYEE BENEFITS, BUSINESS EXPENSES AND PERQUISITES.

         (a) During the Employment Term, Executive shall be entitled to
participate in all regular employee benefit plans established by the Company and
generally made available to senior executives of the Company, including, without
limitation, any savings and profit sharing plans, retirement plans, vacation,
health plans, life insurance or disability insurance plans or tax preparation
services (collectively, "Employee Benefits").

         (b) Reasonable travel, entertainment and other business expenses
incurred by Executive in the performance of his duties hereunder shall be
reimbursed by the Company in accordance with Company policies and procedures
applicable to senior executives of the Company as in effect from time to time.

         (c) During the Employment Term, Executive shall be entitled to (i)
reimbursement of the actual cost of appropriate residential living quarters in
the Grand Summit Hotel, The Canyons, Utah or the actual cost of a substantially
equivalent living quarters adjacent to said hotel, and (ii) reimbursement for
appropriate residential living quarters in the Washington D.C. area (to be
provided by the Company if acceptable to the Executive). The aggregate
reimbursements provided in the foregoing sentence shall not exceed $9,000 per
month. In addition, Executive shall be provided with a transportation allowance,
in a manner consistent with the travel policy of the Company. Such business
transportation allowance is intended to

                                       5

<PAGE>

provide Executive with appropriate means of travel to and from Bethel, Maine,
including use of the Company's airplane.

         (d) During the Employment Term, the Company shall provide Executive
with a reasonable and appropriate level of staffing, consistent with the
performance of his duties hereunder, subject to the applicable limitations
provided in the Company's annual budget approved by the Board.

         6. STOCK OPTIONS.

         At the discretion of the Compensation Committee of the Board, Executive
shall be eligible for annual grants of stock options under the Company's stock
option plan as awarded by the Board to the Company's senior executives.

         7. TERMINATION.

         (A) FOR JUST CAUSE BY THE COMPANY. Executive's employment hereunder may
be terminated by the Board for "Just Cause". Any such termination shall require
a vote of not less than seven (7) of eleven members of theBoard. For purposes of
the Agreement, "Just Cause" shall mean (A)Executive's substantial failure to
perform his duties hereunder or to follow reasonable, lawful directions of the
Board conforming to this Agreement causing demonstrable injury to the Company,
(B) willful misconduct or willful malfeasance by Executive in connection with
his employment, (C) Executive's conviction of, or plea of NOLO CONTENDERE to,
any crime constituting a felony under the laws of the United States or any State
thereof, or any other crime involving moral turpitude or (D) Executive's
material breach of any of the provisions of the Agreement or the Company's
By-Laws. A termination described in clause (C) shall be effective immediately
following the Board's review. If the Board gives notice of its intention to
discharge Executive for Just Cause under clause (A), (B) or (D) of this Section
7(a), the Board shall designate with specificity the conduct in question and a
finding of Just Cause shall be made only after Executive has had reasonable
advance notice of and opportunity to be heard by the Board regarding such
conduct. Executive shall have a thirty (30) day opportunity to cure, if cure is
possible, and if, in the Board's sole discretion, Executive has not cured the
Just Cause for his termination within that time, the Board shall

                                       6

<PAGE>

have the right to declare Executive's employment terminated. Notwithstanding
anything herein to the contrary, if Executive is terminated for Just Cause
pursuant to this Section 7(a), he shall be entitled to receive his Base Salary
through the date of termination and Executive shall be entitled to no other
salary or bonus payments or any other benefits under the Agreement. All other
benefits, if any, due Executive following Executive's termination of employment
pursuant to this Section 7(a) shall be determined in accordance with the plans,
policies and practices of the Company; provided, however, that Executive shall
not participate in any severance plan, policy or program of the Company.

         (B) DISABILITY OR DEATH. Executive's employment hereunder shall
terminate upon his death. If Executive becomes physically or mentally
incapacitated and is therefore unable (or will, as a result thereof, be unable)
for a period of four (4) consecutive months or for an aggregate of six (6)
months in any twelve (12) consecutive month period to perform the essential
functions of his job, with reasonable accommodations (such incapacity is
hereinafter referred to as "Disability"), the Board shall have the right to
terminate Executive's employment hereunder, subject to the receipt of Board
consent as provided herein. Any question as to the existence of a Disability as
to which Executive and the Board cannot agree shall be determined in writing by
a qualified independent physician mutually acceptable to Executive and the
Board. If Executive and the Board cannot agree as to a qualified independent
physician, each shall appoint such a physician and those two physicians shall
select a third who shall make such determination in writing. The determination
of Disability made in writing to the Board and Executive shall be final and
conclusive for all purposes of the Agreement. During the period when such
determination is being made, Executive shall remain an employee and be
compensated as such in full; provided that Executive does not unduly prolong or
delay such determination.

         Upon termination of Executive's employment hereunder during the
Employment Term as a result of Executive's death, Executive's estate shall
receive from the Company his Base Salary and earned accrued bonus at the rate in
effect at the time of Executive's death through the end of the month in which
his death occurs. Executive's estate shall be entitled to no other salary or
bonus payments under the Agreement.

                                       7

<PAGE>

         (C) WITHOUT JUST CAUSE BY THE COMPANY OR WITH GOOD REASON BY EXECUTIVE.
Executive's term of employment hereunder may be terminated by (A) a vote of
seven (7) of eleven (11) members of the Board without Just Cause (for reasons
other than death or Disability) or (B) Executive for Good Reason (as defined
below), in each case, upon ten (10) business days written notice.

         For purposes of the Agreement, "Good Reason" shall mean: (A) any
material breach by the Company of the provisions of the Agreement, including but
not limited to, any reduction by the Company in Executive's Base Salary or other
compensation to which Executive does not consent or (B) any material diminution
in Executive's authority, duties or responsibilities, it being understood and
agreed that the exercise of rights of approval of certain corporate action by
the Board or rights of supervision of the Board described in Section 2(a)
hereof, shall not be considered to be a diminution of Executive's duties or
responsibilities. The Company shall have a thirty (30) business day period in
which to cure, if cure is possible, and if, the Company has not cured the
circumstances giving rise to Good Reason within that time, the Executive shall
have the right to declare his employment terminated for Good Reason.

         (D) TERMINATION BY EXECUTIVE. If Executive terminates his employment
with the Company for any reason (other than for Good Reason, death or
Disability) during the Employment Term, such termination shall be treated as a
termination for Just Cause pursuant to Section 7(a) of the Agreement and the
provisions of Section 7(a) shall apply.

         (E) SEVERANCE PAY. In case of any termination of the Employment Term
for (i) Disability pursuant to Section 7(b), (ii) without Just Cause by the
Company or for Good Reason by the Executive pursuant to Section 7(c) or (iii)
for any reason by Executive during the one year period following a "Change of
Control" (as defined below), or (iv) for any reason by the Company other than
for Just Cause during the one year period following such a "Change of Control"
the Company shall pay to Executive, subject to Section 7(g) hereof: (A) his Base
Salary at the rate in effect immediately prior to such termination, for a period
of twenty-four (24) months following such termination, such payments to be made
over such twenty-four (24) month period in accordance with the Company's regular
payroll practices and (B) an amount equal to the Discretionary Bonus (at the
rate in effect immediately prior to such

                                       8

<PAGE>

termination) that Executive would have been paid during the twenty-four month
period following such termination, such Discretionary Bonus substitute payment
or payments to be made at the same time as bonuses are generally paid to the
senior most executives of the Company. All other Employee Benefits, if any, due
Executive following Executive's termination shall be continued subject to the
terms of the applicable plans, policies and practices of the Company; PROVIDED,
HOWEVER, that Executive shall not participate in any other salary severance
plan, policy or program of the Company (collectively the "Executive Severance
Payments").

         Upon a Change in Control, all stock options or other incentive awards
shall become 100% vested.

         For purposes of this Agreement the term "Change of Control" shall have
the meaning ascribed to it in the Third Supplemental Indenture, dated as August
6, 1999 among ASC East, Inc. and United States Trust Company of New York, and
the parties named therein, a copy of which is attached hereto as Exhibit B, but
excluding the pending merger with MeriStar Hotel & Resorts, Inc.

         (F) NOTICE OF TERMINATION. Any purported termination of employment or
the Agreement by the Company or by Executive shall be communicated by written
Notice of Termination to the other party hereto in accordance with Section 11(g)
hereof and within 30 days prior to such termination; provided, that a shorter
notice period may apply if so prescribed by the applicable subsection of this
Section 7. For purposes of the Agreement, a "Notice of Termination" shall mean a
notice which shall indicate the specific termination provision in the Agreement
relied upon and shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of employment under the provision so
indicated.

         (G) MITIGATION/OFFSET. Following the termination of his employment,
Executive shall have no obligation or duty to seek subsequent employment or
engagement as an employee or a consultant, PROVIDED, HOWEVER, that in the event
that Executive secures other employment from an Employer in a Competitive
Business , or shall be engaged in a significant consulting relationship with an
Employer in a Competitive Business, then the Company shall have the right to
reduce the salary continuation payments provided in Section 7(e) otherwise
exceeding

                                       9

<PAGE>

one times salary payable pursuant to Section 7(e) by (X) compensation earned by
Executive, as an employee from subsequent employment and/or (Y) net income
earned by the Executive as an independent contractor, commencing on or after his
termination of employment. Executive shall provide the Company with written
notice that he has secured such other employment or entered into such other
consulting relationship within thirty (30) days following the commencement of
such employment or consulting relationship.

         8. NON-COMPETITION/NONSOLICITATION. Executive recognizes and
acknowledges that the services to be performed by him hereunder are special,
unique and extraordinary and Executive further acknowledges and recognizes the
highly competitive nature of the business of the Company. Accordingly, Executive
agrees that during the Employment Term and for a period of twelve (12) months
following termination of employment (the "Restrictive Period"), Executive will
not, directly or indirectly, as an officer, director, stockholder, partner,
member, associate, employee, consultant, owner, agent, creditor, co-venturer or
otherwise, become or be financially interested in or be associated with any
other person or entity, in any state in the United States in which the Company
has operations at the date of his termination of employment, in a "Competitive
Business" with that of the Company at such time. For purposes of the Agreement,
a Competitive Business shall mean any business which derives 25% or more of its
revenue directly or indirectly from skiing and other winter resorts, winter-
associated real estate development and related activities which involve skiing
and winter resorts as its primary business, but excluding SR Property, SB River
Realty LLC and Sugar Bush Land Holdings, Inc. as provided in Section 2(b)
hereof. Executive's ownership of shares in the Company and the ownership,
directly or indirectly, of not more than five percent (5%) of the issued and
outstanding stock of any corporation, the shares of which are regularly traded
on a national securities exchange or in the over-the-counter market, shall not
in any event be deemed to be a violation of the provisions of this Section 8.

         During the Restricted Period, Executive shall not (i) directly or
indirectly, (A) solicit or encourage any employee of the Company to leave the
employment of the Company, or (B) hire any such employee who has left the
employment of the Company (other than as a result of the termination of such
employment by the Company) within one (1) year after the

                                       10

<PAGE>

termination of such employee's employment with the Company, and (ii) directly or
indirectly, solicit or encourage to cease to work with the Company any
consultant then under contract with the Company.

         For purposes of this Section 8 and Section 9 of the Agreement, the term
"the Company" shall mean the Company and any subsidiary or affiliate (as such
term is defined in Rule 144 promulgated under the Securities Act of 1933, as
amended, or any successor rule) of the Company.

         It is expressly understood and agreed that although Executive and the
Company consider the restrictions contained in this Section 8 to be reasonable,
if a final judicial determination is made by a court of competent jurisdiction
that the time or territory or any other restriction contained in the Agreement
is an unenforceable restriction against Executive, the provisions of the
Agreement shall not be rendered void but shall be deemed amended to apply as to
such maximum time and territory and to such maximum extent as such court may
judicially determine or indicate to be enforceable. Alternatively, if any court
of competent jurisdiction finds that any restriction contained in the Agreement
is unenforceable, and such restriction cannot be amended so as to make it
enforceable, such finding shall not affect the enforceability of any of the
other restrictions contained herein.

         9. CONFIDENTIALITY AND NONDISPARAGEMENT.

            (a) Executive will not at any time (whether during or after his
employment with the Company) disclose or use for his own benefit or purposes or
the benefit or purposes of any other person, entity or enterprise other than the
Company, any confidential trade secrets, information, or data relating to
customers, development programs, costs, marketing, trading, investment, sales
activities, promotion, credit and financial data, manufacturing processes,
financing methods, plans, or the business and affairs of the Company generally,
and shall not make disparaging statements about the Company, its businesses,
officers, directors, employees or stockholders; provided, that the foregoing
shall not apply (i) to information which is not unique to the Company or which
is generally known to the industry or the public other than as a result of
Executive's breach of this covenant, (ii) to information, the disclosure of
which Executive did not know, and did not have reason to know, could be damaging
to the

                                       11

<PAGE>

reputation or business and affairs of the Company, (iii) to information
which Executive is required to disclose to any governmental or judicial
authority, or (iv) to information that could be lawfully obtained, compiled or
recreated by a third party unaffiliated with the Company for a reasonable cost
and with reasonable effort. Executive hereby agrees that during and after the
Employment Term, he shall provide the Company with access to all memoranda,
books, papers, plans, information, letters and other data which relate to the
operations of the business of the Company at such times and from time to time as
the Board shall request. Executive further agrees that he will not retain or use
for his account at any time any trade names, trademarks or service marks owned
by the Company.

            (b) The Company agrees not to issue or circulate false or
disparaging statements, remarks or rumors about Executive unless giving truthful
testimony under subpoena. Executive agrees not to issue or circulate false or
disparaging statements, remarks or rumors about the Company, its businesses,
officers, directors, employees or stockholders unless giving truthful testimony
under subpoena.

      10. SPECIFIC PERFORMANCE. Executive acknowledges and agrees that the
Company's remedies at law for a breach or threatened breach of any of the
provisions of Section 8 or 9 would be inadequate and, in recognition of this
fact, Executive agrees that, in the event of such a breach or threatened breach,
in addition to any remedies at law, the Company shall be entitled to obtain
equitable relief in the form of specific performance, temporary restraining
order, temporary or permanent injunction or any other equitable remedy which may
then be available; PROVIDED, HOWEVER, the foregoing shall not prevent Executive
from contesting the issuance of any such injunction on the ground that no
violation or threatened violation of Section 8 or 9 has occurred.

      11.  MISCELLANEOUS.

      (a)  GOVERNING LAW.  The Agreement shall be governed by and construed
in accordance with the laws of the State of Delaware without regard to its
conflict of laws principles.

      (b) INDEMNIFICATION. To the full extent not inconsistent with applicable
law and the Company's governing documents, in the event that Executive is a
party to any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or

                                       12

<PAGE>

investigative, by reason of the fact that he is or was a director, officer or
employee of the Company, the Company shall indemnify Executive and hold him
harmless, against all expenses (including reasonable costs and attorneys' fees),
judgments, fines and amounts paid in settlement (with the Company's consent)
actually and reasonably incurred by him, as and when incurred, in connection
with such action, suit or proceeding if he acted in good faith and in a manner
reasonably believed to be in the best interests of the Company. The provisions
of this Section 11(b) shall not be deemed exclusive of any other rights of
indemnification to which Executive may be entitled or which may be granted to
him, and it shall be in addition to any rights of indemnification to which he
may be entitled under any policy of insurance or the Company's by-laws or by
statute. These provisions shall continue in effect after Executive has ceased to
be an officer or director of the Company.

         (c) AMENDMENTS. The Agreement may not be amended except by written
instrument signed by the parties hereto.

         (d) NO WAIVER. The failure of a party to insist upon strict adherence
to any term of the Agreement on any occasion shall not be considered a waiver of
such party's rights or deprive such party of the right thereafter to insist upon
strict adherence to that term or any other term of the Agreement.

         (e) SEVERABILITY. In the event that any one or more of the provisions
of the Agreement shall be or become invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions
of the Agreement shall not be affected thereby.

         (f) SUCCESSORS AND ASSIGNS. The Agreement shall be binding upon and
inure to the benefit of the heirs and representatives of Executive and the
assigns and successors of the Company, but neither the Agreement nor any rights
or obligations hereunder shall be assignable or otherwise subject to
hypothecation by Executive (except by will or by operation of the laws of
intestate succession) or by the Company, except it is understood that the
Company may assign the Agreement to any successor (whether by merger, purchase
or otherwise) to all or substantially all of the stock or assets of, or common
ownership interests in, the Company, if such successor expressly agrees to
assume, or otherwise assumes by application of law, the obligations of the
Company hereunder.

                                       13

<PAGE>

         (g) NOTICE. For the purpose of the Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given (i) when delivered or mailed by United States
registered mail, return receipt requested, postage prepaid, addressed to the
respective addresses of the parties or (ii) when delivered by telecopy with
written confirmation of receipt thereof, PROVIDED; HOWEVER, that a copy of all
notices to the Company shall (X) be directed to the Secretary of the Company
with instructions to send such a copy to each member of the Board and (Y) be
forwarded simultaneously with the copy being sent to the Company to each of
Steven B. Gruber and Bradford E. Bernstein, Oak Hill Capital Partners, L.P.,
Park Avenue Tower, 65 East 55th Street, New York, New York 10022, telecopy:
(212) 754-5685.

         (h) WITHHOLDING TAXES. The Company may withhold from any amounts
payable under the Agreement such Federal, state and local taxes as may be
required to be withheld pursuant to any applicable law or regulation.

         (i) COUNTERPARTS. The Agreement may be signed in counterparts, each of
which shall be an original, with the same effect as if the signatures thereto
and hereto were upon the same instrument.

                                       14

<PAGE>

      IN WITNESS WHEREOF, the parties hereto have duly executed the Agreement as
of January 3, 2000.

                                    /s/ Leslie B. Otten
                                    ---------------------------
                                    LESLIE B. OTTEN

                                    AMERICAN SKIING COMPANY

                                    By: /s/ Christopher E. Howard
                                        -------------------------
                                        Christopher E. Howard

                                    Title: Secretary

                                       15

<PAGE>

                  Exhibit A - List of each Material Subsidiary

                                       16

<PAGE>

                                   Exhibit B -

  "Change of Control" definition from the Third Supplemental Indenture, dated
         as August 6, 1999 among ASC East, Inc. and United States Trust
                               Company of New York

                                       17

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