Document:

EXHIBIT 10.01

SHOREBREEZE

SHOREBREEZE II

REDWOOD
CITY, CALIFORNIA

OFFICE
LEASE AGREEMENT

BETWEEN

CA-SHOREBREEZE LIMITED PARTNERSHIP, a
Delaware limited partnership

(“LANDLORD”)

AND

VERSANT CORPORATION, a California
corporation

(“TENANT”)

OFFICE
LEASE AGREEMENT

THIS OFFICE LEASE AGREEMENT
(the “Lease”) is made and entered into as of                          ,
20  , by and between, CA-SHOREBREEZE LIMITED
PARTNERSHIP, a Delaware limited partnership (“Landlord”)
and VERSANT CORPORATION, a California
corporation (“Tenant”).  The following exhibits and attachments are
incorporated into and made a part of the Lease: Exhibit A
(Outline and Location of Premises), Exhibit B
(Expenses and Taxes), Exhibit C
(Work Letter), Exhibit C-1 (Space
Plans), Exhibit D (Commencement Letter), Exhibit E (Building Rules and Regulations), Exhibit F (Additional Provisions) and Exhibit G (Parking Agreement).

1.                  Basic
Lease Information.

1.01                                                   “Building” shall mean the building located at 255 Shoreline
Drive, Redwood City, California, commonly known as Shorebreeze II.  “Rentable Square Footage of
the Building” is deemed to be 114,531 square
feet.

1.02                                                   “Premises” shall mean the area shown on Exhibit A
to this Lease.  The Premises is located
on the fourth floor and known as Suite 450. If the Premises include one or more
floors in their entirety, all corridors and restroom facilities located on such
full floor(s) shall be considered part of the Premises. The “Rentable Square Footage of the Premises” is deemed to be 6,758 square feet. Landlord and Tenant stipulate and agree
that the Rentable Square Footage of the Building and the Rentable Square
Footage of the Premises are correct.

1.03                                                   “Base Rent”:

	
  Months of Term

  	
   

  	
  Annual Rate

  Per Square Foot

  	
   

  	
  Monthly

  Base Rent

  	
   

  
	
  Months 1 – 12

  	
   

  	
  $

  	
  33.60

  	
   

  	
  $

  	
  18,922.40

  	
   

  
	
  Months 13 – 24

  	
   

  	
  $

  	
  34.94

  	
   

  	
  $

  	
  19,677.04

  	
   

  
	
  Months 25 - 36

  	
   

  	
  $

  	
  36.34

  	
   

  	
  $

  	
  20,465.48

  	
   

  

 

Notwithstanding anything in
this Section of the Lease to the contrary, so long as Tenant is not in Default,
Tenant shall be entitled to an abatement of Base Rent in the amount of
$18,922.40 per month for two consecutive full calendar months of the Term,
beginning with the first full calendar month of the Term (the “Base Rent Abatement Period”).  The total amount of Base Rent
abated during the Base Rent Abatement Period shall equal $37,844.80 (the “Abated Base Rent”).  During the Base Rent Abatement Period, only
Base Rent shall be abated, and all Additional Rent and other costs and charges
specified in this Lease shall remain as due and payable pursuant to the
provisions of this Lease.

1.04                                                   “Tenant’s Pro Rata Share”: 5.9006%.

1.05                                                   “Base Year” for Taxes (defined in Exhibit B):  2007; “Base Year” for
Expenses (defined in Exhibit B):  2007.  

1.06.                                                “Term”:  The period
commencing on the Commencement Date (defined below) and, unless terminated
earlier in accordance with this Lease, ending on the last day of the 36 full
calendar month following the Commencement Date (the “Termination Date”).  The
“Commencement Date” shall mean the
date on which the Landlord Work (defined in Section 1.14) is Substantially
Complete (defined in Section 3).  The
parties anticipate that the Landlord Work will be Substantially Complete on or
about June 1, 2007 (the “Target Commencement
Date”).

1.07                                                   “Allowance”: $101,370.00,
as more fully described in Exhibit C
attached hereto.

1.08                                                   “Security Deposit”: 
$37,844.80, as more fully described in Section 6.

1.09                                                   “Guarantor(s)”:  As of
the date of this Lease there is no Guarantor.

1.10                                                   “Broker(s)”:  Sherry
Gubera of Cornish & Carey.

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1.11                                                   “Permitted Use”: 
General office and administrative use.

1.12                                                   “Notice Address(es)”:

	
  Landlord:

  	
   

  	
  Tenant:

  
	
   

  	
   

  	
  Prior to the Commencement Date:

  
	
  CA-Shorebreeze
  Limited Partnership

  	
   

  	
   

  
	
  c/o Equity
  Office

  	
   

  	
  6539 Dumbarton Circle

  
	
  950 Tower Lane,
  Suite 950

  	
   

  	
  Fremont, California 94555-3619

  
	
  Foster City,
  California 94404

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  From and after the Commencement Date:

  
	
   

  	
   

  	
   

  
	
  Equity Office

  	
   

  	
  At the Premises.

  
	
  One Market,
  Spear Tower, Suite 600

  	
   

  	
   

  
	
  San Francisco,
  California 94105

  	
   

  	
  With a copy to:

  
	
  Attention:
  Managing Counsel-San Francisco (Peninsula & Sacramento)

  	
   

  	
  

  Hopkins & Carley

  70 South First Street

  San Jose, California 95113

  Attention: Julie A. Frambach, Esq.

  

 

1.13                                                   “Business Day(s)” are Monday through Friday of each week,
exclusive of New Year’s Day, Presidents Day, Memorial Day, Independence Day,
Labor Day, Thanksgiving Day and Christmas Day (“Holidays”).  Landlord may designate additional Holidays
that are commonly recognized by other office buildings in the area where the
Building is located.  “Building Service Hours” are 7:00 A.M. to 6:00 P.M. on
Business Days.

1.14                                                   “Landlord Work” means the work, if any, that Landlord is
obligated to perform in the Premises pursuant to a separate agreement (the “Work Letter”), if any, attached to this Lease as Exhibit C.

1.15                                                   “Property” means the Building and the parcel(s) of land on
which it is located and, at Landlord’s discretion, the parking facilities and
other improvements, if any, serving the Building and the parcel(s) of land on
which they are located.

2.                                      Lease
Grant.

The Premises are
hereby leased to Tenant from Landlord, together with the right to use any
portions of the Property that are designated by Landlord for the common use of
tenants and others (the “Common Areas”).

3.                                      Adjustment
of Commencement Date; Possession.

3.01  The Landlord Work shall be deemed to be “Substantially Complete” on the date that all Landlord Work
has been performed, other than any details of construction, mechanical
adjustment or any other similar matter, the non-completion of which does not
materially interfere with Tenant’s use of the Premises.  If Landlord is delayed in the performance of
the Landlord Work as a result of the acts or omissions of Tenant, the Tenant
Related Parties (defined in Section 13) or their respective contractors or
vendors, including, without limitation, changes requested by Tenant to approved
plans, Tenant’s failure to comply with any of its obligations under this Lease,
or Tenant’s specification of any materials or equipment with long lead times
(each a “Tenant Delay”), the Landlord Work shall
be deemed to be Substantially Complete on the date that Landlord could
reasonably have been expected to Substantially Complete the Landlord Work
absent any Tenant Delay.  Notwithstanding
anything to the contrary in Section 1.06 above, Landlord’s failure to
Substantially Complete the Landlord Work by the Target Commencement Date
(described in Section 1.06) shall not be a default by Landlord or
otherwise render Landlord liable for damages. 
Promptly after the determination of the Commencement Date, Landlord and
Tenant shall execute and deliver a commencement letter in the form attached as Exhibit D (the “Commencement Letter”).  Tenant’s failure to
execute and return the Commencement Letter, or to provide written objection to
the statements contained in the Commencement Letter, within 30 days after the
date of the Commencement Letter shall be deemed an approval by Tenant of the
statements contained therein.  If the
Termination Date does not fall on the last day of a calendar month, then,
notwithstanding anything in Section 1.03 or 1.06 to the contrary,
Landlord, at its option, by written notice to Tenant, may elect to adjust the
Termination Date to the last day of the calendar month in which the Termination
Date would otherwise occur, in which event the Base Rent rate, per rentable
square foot, applicable to the

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portion of such calendar
month so added to the Term shall be the same as that which applies to the
preceding portion of such calendar month.

3.02  Subject to
Landlord’s obligation to perform Landlord Work, the Premises are accepted by
Tenant in “as is” condition and configuration without any representations or
warranties by Landlord.  By taking
possession of the Premises, Tenant agrees that the Premises are in good order
and satisfactory condition.  Notwithstanding the foregoing, Landlord shall
be responsible for latent defects in the Landlord Work of which Tenant notifies
Landlord to the extent that the correction of such defects is covered under
valid and enforceable warranties given Landlord by contractors or
subcontractors performing the Landlord Work. 
Landlord, at its option, may pursue such claims directly or assign any such
warranties to Tenant for enforcement. 
Tenant’s acceptance of the Premises shall be subject to Landlord’s
obligation to correct portions of the Landlord Work as set forth on a
construction punch list prepared by Landlord and Tenant in accordance with the
terms hereof.  Within 15 days after Substantial
Completion of the Landlord Work, Landlord and Tenant shall together conduct an
inspection of the Premises and prepare a “punch list” setting forth any portions of the Landlord
Work that are not in conformity with the Landlord Work as required by the terms
of this Lease.  Notwithstanding the
foregoing, at the request of Landlord, such construction punch list shall be
mutually prepared by Landlord and Tenant prior to the date on which Tenant
first begins to move its furniture, equipment or other personal property into
the Premises.  Landlord, as part of the
Landlord Work, shall use good faith efforts to correct all such items within a
reasonable time following the completion of the punch list. Except as
otherwise provided in this Lease, Tenant shall not be permitted to take
possession of or enter the Premises prior to the Commencement Date without
Landlord’s permission.  If Tenant takes
possession of or enters the Premises before the Commencement Date, Tenant shall
be subject to the terms and conditions of this Lease; provided, however, except
for the cost of services requested by Tenant (e.g. after hours HVAC service),
Tenant shall not be required to pay Rent for any entry or possession before the
Commencement Date during which Tenant, with Landlord’s approval, has entered,
or is in possession of, the Premises for the sole purpose of performing
improvements or installing furniture, equipment or other personal
property.  Landlord shall use reasonable efforts to provide Tenant with advance
notice (which may be given orally) of the estimated Commencement Date at least
1 week prior to such estimated Commencement Date, but Landlord’s failure to
accurately estimate the Commencement Date shall in no manner affect the
Commencement Date or any other obligations of Landlord or Tenant hereunder.  However, notwithstanding the foregoing but
subject to the terms of this Section, Landlord grants Tenant the right to enter
the Premises, at Tenant’s sole risk, fourteen (14) days prior to the
Commencement Date, solely for the purpose of installing telecommunications and
data cabling in the Premises, and installing equipment, furnishings and other
personalty.  Landlord may withdraw such
permission to enter the Premises prior to the Commencement Date at any time
that Landlord reasonably determines that such entry by Tenant is causing a
dangerous situation for Landlord, Tenant or their respective contractors or
employees, or if Landlord reasonably determines that such entry by Tenant is
hampering or otherwise preventing Landlord from proceeding with the completion
of Landlord’s Work at the earliest possible date.

3.03  Notwithstanding
the foregoing, except to the extent caused by Tenant or any Tenant Related
Parties (as defined in Section 13), the Base Building electrical, heating,
ventilation and air conditioning, mechanical and plumbing systems shall be in
good and working order and repair as of the date Landlord delivers possession
of the Premises to Tenant.  If the
foregoing are not in good and working order as provided above, Landlord shall
be responsible for repairing or restoring same at its cost and expense
promptly, provided that Tenant has delivered written notice thereof to Landlord
not later than 30 days following the date Landlord delivers possession of the
Premises to Tenant. 
Notwithstanding the foregoing, but subject to Section 15 hereinbelow,
Tenant, and not Landlord, shall be responsible, at its cost, for any repairs
and for the correction of any defects that arise out of or in connection with
the specific nature of Tenant’s business, the acts or omissions of Tenant, its
agents, employees or contractors, Tenant’s arrangement of any furniture,
equipment or other property in the Premises, any repairs, alterations,
additions or improvements performed by or on behalf of Tenant and any design or
configuration of the Premises created by or for Tenant which specifically
results in such defect in the mechanical or electrical systems in the Premises.

4.                                      Rent.

4.01  Tenant shall pay Landlord, without any setoff
or deduction, unless expressly set forth in this Lease, all Base Rent and
Additional Rent due for the Term (collectively referred to as “Rent”).  “Additional Rent” means all sums (exclusive of Base Rent)
that Tenant is required to pay Landlord under this Lease.  Tenant shall pay and be liable for all
rental, sales and use taxes (but excluding income taxes), if any, imposed upon
or measured by Rent.  Base Rent and
recurring monthly charges of Additional Rent shall be due and payable in
advance on the first day of each calendar month without notice or demand,
provided that the installment of Base Rent

 3
 

for the third full
calendar month of the Term, and the first monthly installment of Additional
Rent for Expenses and Taxes, shall be payable upon the execution of this Lease
by Tenant.  All other items of Rent shall
be due and payable by Tenant on or before 30 days after billing by
Landlord.  Rent shall be made payable to
the entity, and sent to the address, Landlord designates and shall be made by
good and sufficient check or by other means acceptable to Landlord.  If Tenant does not pay any Rent when due
hereunder, Tenant shall pay Landlord an administration fee in the amount of
$250.00, provided that Tenant shall be entitled to a grace period of up to 5
days for the first 2 late payments of Rent in a calendar year.  In addition, past due Rent shall accrue
interest at 12% per annum, and Tenant shall pay Landlord a reasonable fee for
any checks returned by Tenant’s bank for any reason.  Landlord’s acceptance of less than the correct
amount of Rent shall be considered a payment on account of the oldest
obligation due from Tenant hereunder, then to any current Rent then due
hereunder, notwithstanding any statement to the contrary contained on or
accompanying any such payment from Tenant. 
Rent for any partial month during the Term shall be prorated.  No endorsement or statement on a check or
letter accompanying payment shall be considered an accord and satisfaction.  Tenant’s covenant to pay Rent is independent
of every other covenant in this Lease.

4.02.  Tenant shall pay Tenant’s Pro Rata Share of
Taxes and Expenses in accordance with Exhibit B
of this Lease.

5.                                      Compliance
with Laws; Use.

The Premises shall be used for the Permitted Use and
for no other use whatsoever. Tenant shall comply with all statutes, codes,
ordinances, orders, rules and regulations of any municipal or governmental
entity whether in effect now or later, including the Americans with
Disabilities Act (“Law(s)”),
regarding the operation of Tenant’s business and the use, condition,
configuration and occupancy of the Premises. In addition, Tenant shall, at its
sole cost and expense, promptly comply with any Laws that relate to the “Base
Building” (defined below), but only to the extent such obligations are triggered
by Tenant’s particular use of the Premises, other than for general office use,
or Alterations or improvements in the Premises performed or requested by
Tenant. Except to the extent properly
included in Expenses, Landlord shall be responsible for the cost of correcting
any violations of Title III of the Americans with Disabilities Act (ADA) with
respect to the Common Areas of the Building. 
Notwithstanding the foregoing, Landlord shall have the right to contest
any alleged violation in good faith, including, without limitation, the right
to apply for and obtain a waiver or deferment of compliance, the right to
assert any and all defenses allowed by Law and the right to appeal any
decisions, judgments or rulings to the fullest extent permitted by Law.  Landlord, after the exhaustion of any and all
rights to appeal or contest, will make all repairs, additions, alterations or
improvements necessary to comply with the terms of any final order or
judgment.  “Base
Building” shall include the structural portions of the Building, the
public restrooms and the Building mechanical, electrical and plumbing systems
and equipment located in the internal core of the Building on the floor or
floors on which the Premises are located. Tenant shall promptly provide
Landlord with copies of any notices it receives regarding an alleged violation
of Law.  Tenant shall not exceed the
standard density limit for the Building. Tenant shall comply with the rules and
regulations of the Building attached as Exhibit E
and such other reasonable rules and regulations adopted by Landlord from time
to time, including rules and regulations for the performance of Alterations
(defined in Section 9.03).

6.                                      Security
Deposit.

The Security
Deposit, if any, shall be delivered to Landlord upon the execution of this
Lease by Tenant and held by Landlord without liability for interest (unless
required by Law) as security for the performance of Tenant’s obligations.  The Security Deposit is not an advance
payment of Rent or a measure of damages. 
Landlord may from time to time and without prejudice to any other remedy
provided in this Lease or by Law, use all or a portion of the Security Deposit
to the extent necessary to satisfy past due Rent or to satisfy any other loss
or damage resulting from Tenant’s breach under this Lease.  If Landlord uses any portion of the Security
Deposit, Tenant, within 5 days after demand, shall restore the Security Deposit
to its original amount. Landlord shall return any unapplied portion of the
Security Deposit to Tenant within 45 days after the later to occur of:
(a) determination of the final Rent due from Tenant; or (b) the later
to occur of the Termination Date or the date Tenant surrenders the Premises to
Landlord in compliance with Section 25. 
Landlord may assign the Security Deposit to a successor or transferee
and, following the assignment, Landlord shall have no further liability for the
return of the Security Deposit. Landlord shall not be required to keep the
Security Deposit separate from its other accounts. Tenant hereby waives the
provisions of Section 1950.7 of the California Civil Code, or any similar
or successor Laws now or hereafter in effect.

 4
 

7.                                      Building
Services.

7.01  Landlord shall furnish Tenant with the
following services: (a) cold water for use in the Base Building
lavatories; (b) customary heat and air conditioning in season during
Building Service Hours, although (i) Tenant shall have the right to
receive HVAC service during hours other than Building Service Hours by paying
Landlord’s then standard charge for additional HVAC service and providing such
prior notice as is reasonably specified by Landlord, and (ii) if Tenant is
permitted to connect any supplemental HVAC units to the Building’s condenser
water loop or chilled water line, such permission shall be conditioned upon
Landlord having adequate excess capacity from time to time and such connection
and use shall be subject to Landlord’s reasonable approval and reasonable
restrictions imposed by Landlord, and Landlord shall have the right to charge Tenant
a connection fee and/or a monthly usage fee, as reasonably determined by
Landlord; (c) standard janitorial service on Business Days;
(d) elevator service; (e) electricity in accordance with the terms
and conditions in Section 7.02; (f) access to the Building for Tenant
and its employees 24 hours per day/7 days per week, subject to the terms of
this Lease and such protective services or monitoring systems, if any, as
Landlord may reasonably impose, including, without limitation, sign-in
procedures and/or presentation of identification cards; and (g) such other
services as Landlord reasonably determines are necessary or appropriate for the
Property.  If Landlord, at Tenant’s
request, provides any services which are not Landlord’s express obligation
under this Lease, including, without limitation, any repairs which are Tenant’s
responsibility pursuant to Section 9 below, Tenant shall pay Landlord, or
such other party designated by Landlord, the cost of providing such service
plus a reasonable administrative charge.

7.02  Electricity used by Tenant in the Premises
shall, at Landlord’s option, be paid for by Tenant either:  (a) through inclusion in Expenses
(except as provided for excess usage); (b) by a separate charge payable by
Tenant to Landlord; or (c) by separate charge billed by the applicable
utility company and payable directly by Tenant. 
Without the consent of Landlord, Tenant’s use of electrical service
shall not exceed the Building standard usage, per square foot, as reasonably
determined by Landlord, based upon the Building standard electrical design
load.  Landlord shall have the right to
measure electrical usage by commonly accepted methods, including the
installation of measuring devices such as submeters and check meters.  If it is reasonably determined that Tenant is
using electricity in such
quantities or during such periods as to cause the total cost of Tenant’s
electrical usage, on a monthly, per-rentable-square-foot basis, to materially
exceed that which Landlord reasonably deems to be standard for the Building, Tenant
shall pay Landlord Additional Rent for the cost of such excess electrical usage
and, if applicable, for the cost of purchasing and installing the measuring
device(s).

7.03  Landlord’s failure to furnish, or any
interruption, diminishment or termination of services due to the application of
Laws, the failure of any equipment, the performance of maintenance, repairs,
improvements or alterations, utility interruptions or the occurrence of an
event of Force Majeure (defined in Section 26.03) (collectively a “Service Failure”) shall not render Landlord liable to
Tenant, constitute a constructive eviction of Tenant, give rise to an abatement
of Rent, nor relieve Tenant from the obligation to fulfill any covenant or
agreement.  However, if the Premises, or
a material portion of the Premises, are made untenantable for a period in
excess of 3 consecutive Business Days as a result of a Service Failure that is
reasonably within the control of Landlord to correct, then Tenant, as its sole
remedy, shall be entitled to receive an abatement of Rent payable hereunder
during the period beginning on the 4th consecutive Business Day of the Service
Failure and ending on the day the service has been restored.  If the entire Premises have not been rendered
untenantable by the Service Failure, the amount of abatement shall be equitably
prorated.

8.                                      Leasehold
Improvements.

All improvements
in and to the Premises, including any Alterations (defined in Section 9.03)
(collectively, “Leasehold Improvements”) shall
remain upon the Premises at the end of the Term without compensation to Tenant,
provided that Tenant, at its expense, shall remove any Cable (defined in
Section 9.01 below).  In addition,
Landlord, by written notice to Tenant at least 30 days prior to the Termination
Date, may require Tenant, at Tenant’s expense, to remove any Landlord Work or
Alterations that, in Landlord’s reasonable judgment, are of a nature that would
require removal and repair costs that are materially in excess of the removal and
repair costs associated with standard office improvements (the Cable and such
other items collectively are referred to as “Required
Removables”).  Required
Removables shall include, without limitation, internal stairways, raised
floors, personal baths and showers, vaults, rolling file systems and structural
alterations and modifications.  The
Required Removables shall be removed by Tenant before the Termination Date.
Tenant shall repair damage caused by the installation or removal of Required
Removables.  If Tenant fails to perform
its obligations in a timely manner, Landlord may perform such work at Tenant’s
expense.  Tenant, at the time it

 5
 

requests
approval for a proposed Alteration, including any Initial Alterations or
Landlord Work, as such terms may be defined in the Work Letter attached as Exhibit C, may request in writing that Landlord advise
Tenant whether the Alteration, including any Initial Alterations or Landlord
Work, or any portion thereof, is a Required Removable.  Within 10 days after receipt of Tenant’s
request, Landlord shall advise Tenant in writing as to which portions of the
alteration or other improvements are Required Removables. Notwithstanding the foregoing, Tenant shall
not be required to remove any portion of the Landlord Work shown on the Space
Plans as of the date of this Lease, as such terms are defined in Exhibit C-1.

9.                                      Repairs
and Alterations.

9.01  Tenant shall periodically inspect the
Premises to identify any conditions that are dangerous or in need of
maintenance or repair.  Tenant shall
promptly provide Landlord with notice of any such conditions. Tenant, at its
sole cost and expense, shall perform all maintenance and repairs to the
Premises that are not Landlord’s express responsibility under this Lease, and
keep the Premises in good condition and repair, reasonable wear and tear and
damage by Casualty (defined in Section 16) and Taking (defined in Section 17)
excepted. Tenant’s repair and maintenance obligations include, without
limitation, repairs to: (a) floor covering; (b) interior partitions;
(c) doors; (d) the interior side of demising walls;
(e) Alterations (described in Section 9.03); (f) supplemental
air conditioning units, kitchens, including hot water heaters, plumbing, and
similar facilities exclusively serving Tenant, whether such items are installed
by Tenant or are currently existing in the Premises; and (g) electronic,
fiber, phone and data cabling and related equipment  that
is installed by or for the exclusive benefit of Tenant (collectively, “Cable”).  All repairs
and other work performed by Tenant or its contractors, including that involving
Cable, shall be subject to the terms of Section 9.03 below.  If Tenant fails to make any repairs to the
Premises for more than 15 days after notice from Landlord (although notice
shall not be required in an emergency), Landlord may make the repairs, and,
within 30 days after demand, Tenant shall pay the reasonable cost of the
repairs, together with an administrative charge in an amount equal to 10% of
the cost of the repairs.  Notwithstanding the foregoing, if the repair
to be performed by Tenant cannot reasonably be completed within 15 days after
Landlord’s notice to Tenant, Landlord shall not exercise its right to make such
repair on Tenant’s behalf so long as Tenant commences such repair within 5 days
after notice from Landlord and is diligently pursuing the same to completion.

9.02  Landlord shall keep and maintain in good
repair and working order and perform maintenance upon the: (a) structural
elements of the Building; (b) mechanical (including HVAC), electrical,
plumbing and fire/life safety systems serving the Building in general;
(c) Common Areas; (d) roof of the Building; (e) exterior windows
of the Building; and (f) elevators serving the Building.  Landlord shall promptly make repairs for
which Landlord is responsible.  Tenant
hereby waives any and all rights under and benefits of subsection 1 of
Section 1932, and Sections 1941 and 1942 of the California Civil
Code, or any similar or successor Laws now or hereafter in effect.

9.03  Tenant shall not make alterations, repairs,
additions or improvements or install any Cable (collectively referred to as “Alterations”) without first obtaining the written consent of
Landlord in each instance, which consent shall not be unreasonably withheld,
conditioned or delayed. However, Landlord’s consent shall not be required for
any Alteration that satisfies all of the following criteria (a “Cosmetic Alteration”): 
(a) is of a cosmetic nature such as painting, wallpapering, hanging
pictures and installing carpeting; (b) is not visible from the exterior of
the Premises or Building; (c) will not affect the Base Building (defined
in Section 5); and (d) does not require work to be performed inside
the walls or above the ceiling of the Premises. 
Cosmetic Alterations shall be subject to all the other provisions of
this Section 9.03.  Prior to
starting work, Tenant shall furnish Landlord with plans and specifications
(which shall be in CAD format if requested by Landlord); names of contractors
reasonably acceptable to Landlord (provided that Landlord may designate
specific contractors with respect to Base Building and vertical Cable, as may
be described more fully below); required permits and approvals; evidence of
contractor’s and subcontractor’s insurance in amounts reasonably required by
Landlord and naming Landlord and the managing agent for the Building (or any
successor(s)) as additional insureds; and any security for performance in
amounts reasonably required by Landlord. 
Landlord may designate specific contractors with respect to oversight,
installation, repair, connection to, and removal of vertical Cable.  All Cable shall be clearly marked with adhesive plastic labels (or
plastic tags attached to such Cable with wire) to show Tenant’s name, suite
number, and the purpose of such Cable (i) every 6 feet outside the
Premises (specifically including, but not limited to, the electrical room
risers and any Common Areas), and (ii) at the termination point(s) of such
Cable.  Changes to the plans and
specifications must also be submitted to Landlord for its approval, which
approval shall not be unreasonably withheld, conditioned or delayed.  Alterations shall be constructed in a good
and workmanlike manner using materials of a quality reasonably approved by
Landlord, and Tenant shall ensure that no Alteration impairs any Building
system or

 6
 

Landlord’s ability to
perform its obligations hereunder. 
Tenant shall reimburse Landlord for any sums paid by Landlord for third
party examination of Tenant’s plans for non-Cosmetic Alterations.  In addition, Tenant shall pay Landlord a fee
for Landlord’s oversight and coordination of any non-Cosmetic Alterations equal
to 10% of the cost of the non-Cosmetic Alterations.  Upon completion, Tenant shall furnish “as-built”
plans (in CAD format, if requested by Landlord) for non-Cosmetic Alterations,
completion affidavits and full and final waivers of lien.  Landlord’s approval of an Alteration shall
not be deemed a representation by Landlord that the Alteration complies with
Law.

10.                               Entry
by Landlord.

Landlord may enter
the Premises to inspect, show (but only
during the last 6 months of the Term or any time during an uncured Default by
Tenant) or clean the Premises or to perform or facilitate the
performance of repairs, alterations or additions to the Premises or any portion
of the Building.  Notwithstanding the foregoing, except in emergencies, Landlord shall
provide Tenant with at least 24 hours’ prior notice of entry into the Premises,
which may be given orally to the entity occupying the Premises  and shall use reasonable efforts to minimize any
interference with Tenant’s use of the Premises. 
If reasonably necessary, Landlord may temporarily close all or a portion
of the Premises to perform repairs, alterations and additions.  However, except in emergencies, Landlord will
not close the Premises if the work can reasonably be completed on weekends and
after Building Service Hours.  Entry by
Landlord (in accordance with this Section 10) shall not constitute a constructive
eviction or entitle Tenant to an abatement or reduction of Rent.

11.                               Assignment
and Subletting.

11.01  Except in connection with a
Business Transfer (defined in Section 11.04), Tenant shall not
assign, sublease, transfer or encumber any interest in this Lease or allow any
third party to use any portion of the Premises (collectively or individually, a
“Transfer”) without the prior
written consent of Landlord, which consent shall not be unreasonably withheld,
conditioned or delayed if Landlord does not exercise its recapture rights under
Section 11.02.  Without limitation,
it is agreed that Landlord’s consent shall not be considered unreasonably
withheld if the proposed transferee is a governmental entity or an occupant of
the Building or if the proposed transferee, whether or not an occupant of the
Building, is in discussions with Landlord regarding the leasing of space within
the Building.  If the entity(ies) which
directly or indirectly controls the voting shares/rights of Tenant (other than
through the ownership of voting securities listed on a recognized securities
exchange) changes at any time, such change of ownership or control shall
constitute a Transfer. Tenant hereby waives the provisions of
Section 1995.310 of the California Civil Code, or any similar or successor
Laws, now or hereafter in effect, and all other remedies, including, without
limitation, any right at law or equity to terminate this Lease, on its own
behalf and, to the extent permitted under all applicable Laws, on behalf of the
proposed transferee. Any Transfer in
violation of this Section shall, at Landlord’s option, be deemed a Default by
Tenant as described in Section 18, and shall be voidable by Landlord.  In no event shall any Transfer, including a
Business Transfer, release or relieve Tenant from any obligation under this
Lease, and Tenant shall remain primarily liable for the performance of the
tenant’s obligations under this Lease, as amended from time to time.

11.02  Tenant shall provide Landlord with financial
statements for the proposed transferee (or, in the case of a change of
ownership or control, for the proposed new controlling entity(ies)), a fully
executed copy of the proposed assignment, sublease or other Transfer
documentation and such other information as Landlord may reasonably request.
Within 15 Business Days after receipt of the required information and
documentation, Landlord shall either: (a) consent to the Transfer by
execution of a consent agreement in a form reasonably designated by Landlord;
(b) reasonably refuse to consent to the Transfer in writing; or
(c) in the event of an assignment of this Lease or subletting of more than
20% of the Rentable Square Footage of the Premises for more than 50% of the
remaining Term (excluding unexercised options), recapture the portion of the
Premises that Tenant is proposing to Transfer. 
If Landlord exercises its right to recapture, this Lease shall
automatically be amended (or terminated if the entire Premises is being
assigned or sublet) to delete the applicable portion of the Premises effective
on the proposed effective date of the Transfer, although Landlord may require
Tenant to execute a reasonable amendment or other document reflecting such
reduction or termination.  Tenant shall
pay Landlord a review fee of $1,500.00 for Landlord’s review of any requested
Transfer.

11.03  Tenant shall pay Landlord 50% of all rent and
other consideration which Tenant receives as a result of a Transfer that is in
excess of the Rent payable to Landlord for the portion of the Premises and Term
covered by the Transfer.  Tenant shall
pay Landlord for Landlord’s share of the excess within 30 days after Tenant’s
receipt of the excess.  In determining
the excess due Landlord, Tenant may deduct from the excess, on a straight line basis, all
reasonable

 7
 

and customary expenses directly incurred by Tenant
attributable to the Transfer, including brokerage fees, legal fees,
construction costs, and Landlord’s review fee. 
If Tenant is in Default, Landlord may require that all sublease
payments be made directly to Landlord, in which case Tenant shall receive a
credit against Rent in the amount of Tenant’s share of payments received by
Landlord.

11.04  Tenant may assign this Lease to a successor to Tenant by merger,
consolidation or the purchase of substantially all of Tenant’s assets, or
assign this Lease or sublet all or a portion of the Premises to an Affiliate
(defined below), without the consent of Landlord, provided that all of the
following conditions are satisfied (a “Business
Transfer”):  (a) Tenant must
not be in Default; (b) Tenant must give Landlord written notice at least 15
Business Days before such Transfer; and (c) if such Transfer will result from a
merger or consolidation of Tenant with another entity, then the Credit
Requirement (defined below) must be satisfied. 
Tenant’s notice to Landlord shall include information and documentation
evidencing the Business Transfer and showing that each of the above conditions
has been satisfied.  If requested by
Landlord, Tenant’s successor shall sign and deliver to Landlord a commercially
reasonable form of assumption agreement. 
“Affiliate” shall mean an
entity controlled by, controlling or under common control with Tenant.  The “Credit
Requirement” shall be deemed satisfied if, as of the date immediately
preceding the date of the Transfer, the financial strength of the entity with
which Tenant is to merge or consolidate is not less than that of Tenant, as
determined (x) based on credit ratings of such entity and Tenant by both Moody’s
and Standard & Poor’s (or by either such agency alone, if applicable
ratings by the other agency do not exist), or (y) if such credit ratings do not
exist, then in accordance with Moody’s KMV RiskCalc (i.e., the on-line software
tool offered by Moody’s for analyzing credit risk) based on CFO-certified
financial statements for such entity and Tenant covering their last two fiscal
years ending before the Transfer.

11.05  Notwithstanding anything to the contrary contained in this
Section 11, neither Tenant nor any other person having a right to possess,
use, or occupy (for convenience, collectively referred to in this subsection as
“Use”) the Premises shall enter into any
lease, sublease, license, concession or other agreement for Use of all or any
portion of the Premises which provides for rental or other payment for such Use
based, in whole or in part, on the net income or profits derived by any person
that leases, possesses, uses, or occupies all or any portion of the Premises
(other than an amount based on a fixed percentage or percentages of receipts or
sales), and any such purported lease, sublease, license, concession or other
agreement shall be absolutely void and ineffective as a transfer of any right
or interest in the Use of all or any part of the Premises.

12.                               Liens.

Tenant shall not
permit mechanics’ or other liens to be placed upon the Property, Premises or
Tenant’s leasehold interest in connection with any work or service done or
purportedly done by or for the benefit of Tenant or its transferees.  Tenant shall give Landlord notice at least 15
days prior to the commencement of any work in the Premises to afford Landlord
the opportunity, where applicable, to post and record notices of
non-responsibility.  Tenant, within 20 days
of notice from Landlord, shall fully discharge any lien by settlement, by
bonding or by insuring over the lien in the manner prescribed by the applicable
lien Law and, if Tenant fails to do so, Tenant shall be deemed in Default under
this Lease and, in addition to any other remedies available to Landlord as a
result of such Default by Tenant, Landlord, at its option, may
bond, insure over or otherwise discharge the lien.  Tenant shall reimburse Landlord for any
amount paid by Landlord, including, without limitation, reasonable attorneys’
fees.

13.                               Indemnity
and Waiver of Claims.

Except to the
extent caused by the negligence or willful misconduct of Landlord or any
Landlord Related Parties (defined below), Tenant shall indemnify, defend and
hold Landlord and Landlord Related Parties harmless against and from all
liabilities, obligations, damages, penalties, claims, actions, costs, charges
and expenses, including, without limitation, reasonable attorneys’ fees and
other professional fees (if and to the extent permitted by Law) (collectively
referred to as “Losses”), which may be imposed
upon, incurred by or asserted against Landlord or any of the Landlord Related
Parties by any third party and arising out of or in connection with any damage
or injury occurring in the Premises or any acts or omissions (including
violations of Law) of Tenant, the Tenant Related Parties (defined below) or any
of Tenant’s transferees, contractors or licensees.  Except to the extent caused by the negligence
or willful misconduct of Tenant or any Tenant Related Parties, Landlord shall
indemnify, defend and hold Tenant, its trustees, members, principals,
beneficiaries, partners, officers, directors, employees and agents (“Tenant Related Parties”) harmless against and from all
Losses which may be imposed upon, incurred by or asserted against Tenant or any
of the Tenant Related Parties by any third party and arising out of or in
connection with the acts or omissions (including violations of Law) of

 8
 

Landlord or the Landlord
Related Parties.  Tenant hereby waives
all claims against and releases Landlord and its trustees, members, principals,
beneficiaries, partners, officers, directors, employees, Mortgagees (defined in
Section 23) and agents (the “Landlord Related Parties”)
from all claims for any injury to or death of persons, damage to property or
business loss in any manner related to (a) Force Majeure, (b) acts of
third parties, (c) the bursting or leaking of any tank, water closet,
drain or other pipe, (d) the inadequacy or failure of any security or
protective services, personnel or equipment, or (e) any matter not within
the reasonable control of Landlord.  Notwithstanding the foregoing, except as
provided in Section 15 to the contrary, Tenant shall not be required to waive
any claims against Landlord (other than for loss or damage to Tenant’s
business) where such loss or damage is due to the negligence or willful
misconduct of Landlord or any Landlord Related Parties.  Nothing herein shall be construed as to
diminish the repair and maintenance obligations of Landlord contained elsewhere
in this Lease.

14.                               Insurance.

Tenant shall
maintain the following insurance (“Tenant’s Insurance”):  (a) Commercial General Liability
Insurance applicable to the Premises and its appurtenances providing, on an
occurrence basis, a minimum combined single limit of $2,000,000.00;
(b) Property and Income Coverage Insurance written on an All Risk or
Special Cause of Loss Form, including
earthquake sprinkler leakage, at replacement cost value and with a
replacement cost endorsement covering all of Tenant’s business and trade
fixtures, equipment, movable partitions, furniture, merchandise and other
personal property within the Premises (“Tenant’s Property”)
and any Leasehold Improvements performed by or for the benefit of Tenant;
(c) Workers’ Compensation Insurance in amounts required by Law; and
(d) Employers Liability Coverage of at least $1,000,000.00 per
occurrence.  Any company writing Tenant’s
Insurance shall have an A.M. Best rating of not less than A-VIII.  All Commercial General Liability Insurance
policies shall name as additional insureds Landlord (or its successors and
assignees), the managing agent for the Building (or any successor), Equity
Office Properties Trust and their respective members, principals,
beneficiaries, partners, officers, directors, employees, and agents, and other
designees of Landlord and its successors as the interest of such designees
shall appear.  In addition, Landlord
shall be named as a loss payee with respect to Tenant’s Property Insurance on
the Leasehold Improvements.  All policies
of Tenant’s Insurance shall contain endorsements that the insurer(s) shall give
Landlord and its designees at least 30 days’ advance written notice of any
cancellation, termination, material change or lapse of insurance. Tenant shall
provide Landlord with a certificate of insurance evidencing Tenant’s Insurance
prior to the earlier to occur of the Commencement Date or the date Tenant is
provided with possession of the Premises, and thereafter as necessary to assure
that Landlord always has current certificates evidencing Tenant’s Insurance. So
long as the same is available at commercially reasonable rates, Landlord shall
maintain so called All Risk property insurance on the Building at replacement
cost value as reasonably estimated by Landlord, together with such other
insurance coverage as Landlord, in its reasonable judgment, may elect to
maintain.

15.                               Subrogation.

Landlord and
Tenant hereby waive and shall cause their respective insurance carriers to
waive any and all rights of recovery, claims, actions or causes of action
against the other for any loss or damage with respect to Tenant’s Property,
Leasehold Improvements, the Building, the Premises, or any contents thereof,
including rights, claims, actions and causes of action based on negligence,
which loss or damage is (or would have been, had the insurance required by this
Lease been carried) covered by insurance. 
For the purposes of this waiver, any deductible with respect to a party’s
insurance shall be deemed covered by and recoverable by such party under valid
and collectable policies of insurance.

16.                               Casualty
Damage.

16.01  If all or any portion of the Premises becomes
untenantable or inaccessible by fire or other casualty to the Premises or the
Common Areas (collectively a “Casualty”),
Landlord, with reasonable promptness, shall cause a general contractor selected
by Landlord to provide Landlord with a written estimate of the amount of time
required, using standard working methods, to substantially complete the repair
and restoration of the Premises and any Common Areas necessary to provide
access to the Premises (“Completion Estimate”).  Landlord shall promptly forward a copy of the
Completion Estimate to Tenant.  If the
Completion Estimate indicates that the Premises or any Common Areas necessary
to provide access to the Premises cannot be made tenantable within 180 days
from the date the repair is started, then either party shall have the right to
terminate this Lease upon written notice to the other within 10 days after Tenant’s
receipt of the Completion Estimate. 
Tenant, however, shall not have the right to terminate this Lease if the
Casualty was caused by the negligence or intentional misconduct of

 9
 

Tenant or any Tenant
Related Parties.  In addition, Landlord,
by notice to Tenant within 90 days after the date of the Casualty, shall have
the right to terminate this Lease if: 
(1) the Premises have been materially damaged and there is less
than 2 years of the Term remaining on the date of the Casualty; (2) any
Mortgagee requires that the insurance proceeds be applied to the payment of the
mortgage debt; or (3) a material uninsured loss to the Building or
Premises occurs.  Tenant also shall have the right to terminate this Lease by notice to
Landlord if:  (a) a substantial portion
of the Premises has been damaged by Casualty and such damage cannot reasonably
be repaired within 60 days after receipt of the Completion Estimate;
(b) there is less than 1 year of the Term remaining on the date of the
Casualty; (c) the Casualty was not caused by the negligence or willful
misconduct of Tenant or its agents, employees or contractors; and
(d) Tenant provides Landlord with written notice of its intent to
terminate within 30 days after the date of Tenant’s receipt of the Completion
Estimate.

16.02  If this Lease is not terminated, Landlord
shall promptly and diligently, subject to reasonable delays for insurance
adjustment or other matters beyond Landlord’s reasonable control, restore the
Premises and Common Areas.  Such
restoration shall be to substantially the same condition that existed prior to
the Casualty, except for modifications required by Law or any other
modifications to the Common Areas deemed desirable by Landlord.  Upon notice from Landlord, Tenant shall
assign or endorse over to Landlord (or to any party designated by Landlord) all
property insurance proceeds payable to Tenant under Tenant’s Insurance with
respect to any Leasehold Improvements performed by or for the benefit of
Tenant; provided if the estimated cost to repair such Leasehold Improvements
exceeds the amount of insurance proceeds received by Landlord from Tenant’s
insurance carrier, the excess cost of such repairs shall be paid by Tenant to
Landlord prior to Landlord’s commencement of repairs.  Within 15 days of demand, Tenant shall also
pay Landlord for any additional excess costs that are determined during the
performance of the repairs to such Leasehold Improvements.  In no event shall Landlord be required to
spend more for the restoration of the Premises and Common Areas than the
proceeds received by Landlord, whether insurance proceeds or proceeds from
Tenant.  Landlord shall not be liable for
any inconvenience to Tenant, or injury to Tenant’s business resulting in any
way from the Casualty or the repair thereof. 
Provided that Tenant is not in Default, during any period of time that
all or a material portion of the Premises is rendered untenantable as a result
of a Casualty, the Rent shall abate for the portion of the Premises that is
untenantable and not used by Tenant.

16.03  The provisions of this Lease, including this
Section 16, constitute an express agreement between Landlord and Tenant
with respect to any and all damage to, or destruction of, all or any part of
the Premises or the Property, and any Laws, including, without limitation,
Sections 1932(2) and 1933(4) of the California Civil Code, with respect to
any rights or obligations concerning damage or destruction in the absence of an
express agreement between the parties, and any similar or successor Laws now or
hereafter in effect, shall have no application to this Lease or any damage or
destruction to all or any part of the Premises or the Property.

17.                               Condemnation.

Either
party may terminate this Lease if any material part of the Premises is taken or
condemned for any public or quasi-public use under Law, by eminent domain or
private purchase in lieu thereof (a “Taking”).  Landlord shall also have the right to
terminate this Lease if there is a Taking of any portion of the Building or
Property which would have a material adverse effect on Landlord’s ability to
profitably operate the remainder of the Building.  If Landlord has the right to terminate this
Lease pursuant to this Section 17, Landlord agrees to exercise such right in a
nondiscriminatory fashion among tenants in the Building.  Consideration of the following factors in
arriving at its decision shall not be deemed discriminatory: Length of term
remaining on the Lease, time needed to repair and restore, costs of repair and
restoration not covered by condemnation proceeds, Landlord’s plans to repair
and restore Common Areas serving the Premises, Landlord’s plans for repair and
restoration of the Building, and other relevant factors of Landlord’s decision
as long as they are applied to Tenant in the same manner as other tenants. The
terminating party shall provide written notice of termination to the other
party within 45 days after it first receives notice of the Taking.  The termination shall be effective as of the
effective date of any order granting possession to, or vesting legal title in,
the condemning authority.  If this Lease
is not terminated, Base Rent and Tenant’s Pro Rata Share shall be appropriately
adjusted to account for any reduction in the square footage of the Building or
Premises. All compensation awarded for a Taking shall be the property of
Landlord.  The right to receive
compensation or proceeds are expressly waived by Tenant, provided, however,
Tenant may file a separate claim for Tenant’s Property and Tenant’s reasonable
relocation expenses, provided the filing of the claim does not diminish the
amount of Landlord’s award.  If only a
part of the Premises is subject to a Taking and this Lease is not terminated,
Landlord, with reasonable diligence, will restore the remaining portion of the
Premises as nearly as practicable to the

 10
 

condition immediately
prior to the Taking.  Tenant hereby
waives any and all rights it might otherwise have pursuant to
Section 1265.130 of the California Code of Civil Procedure, or any similar
or successor Laws.

18.                               Events
of Default.

In addition to any
other default specifically described in this Lease, each of the following
occurrences shall be a “Default”:
(a) Tenant’s failure to pay any portion of Rent when due, if the failure
continues for 5 days after written notice to Tenant (“Monetary
Default”); (b) Tenant’s failure (other than a Monetary Default)
to comply with any term, provision, condition or covenant of this Lease, if the
failure is not cured within 20 days after written notice to Tenant provided,
however, if Tenant’s failure to comply cannot reasonably be cured within 20
days, Tenant shall be allowed additional time (not to exceed 90 days) as is
reasonably necessary to cure the failure so long as Tenant begins the cure
within 20 days and diligently pursues the cure to completion; (c) Tenant
permits a Transfer without Landlord’s required approval or otherwise in
violation of Section 11 of this Lease; (d) Tenant or any Guarantor
becomes insolvent, makes a transfer in fraud of creditors, makes an assignment
for the benefit of creditors, admits in writing its inability to pay its debts
when due or forfeits or loses its right to conduct business; (e) the
leasehold estate is taken by process or operation of Law; (f) in the case
of any ground floor or retail Tenant, Tenant does not take possession of or
abandons or vacates all or any portion of the Premises; or (g) Tenant is
in default beyond any notice and cure period under any other lease or agreement
with Landlord at the Building or Property. If Landlord provides Tenant with
notice of Tenant’s failure to comply with any specific provision of this Lease
on 3 separate occasions during any 12 month period, Tenant’s subsequent
violation of such provision shall, at Landlord’s option, be an incurable Default
by Tenant. All notices sent under this Section shall be in satisfaction of, and
not in addition to, notice required by Law.

19.                               Remedies.

19.01  Upon the occurrence of any Default under this Lease, whether enumerated in
Section 18 or not, Landlord shall have the option to pursue any one or
more of the following remedies without any notice (except as expressly
prescribed herein) or demand whatsoever (and without limiting the generality of
the foregoing, Tenant hereby specifically waives notice and demand for payment
of Rent or other obligations, except for those notices specifically required
pursuant to the terms of Section 18 or this Section 19, and waives
any and all other notices or demand requirements imposed by applicable Law):

(a)                                  Terminate
this Lease and Tenant’s right to possession of the Premises and recover from
Tenant an award of damages equal to the sum of the following:

(i)                                     The
Worth at the Time of Award of the unpaid Rent which had been earned at the time
of termination;

(ii)                                  The
Worth at the Time of Award of the amount by which the unpaid Rent which would
have been earned after termination until the time of award exceeds the amount
of such Rent loss that Tenant affirmatively proves could have been reasonably
avoided;

(iii)                               The Worth at the Time of
Award of the amount by which the unpaid Rent for the balance of the Term after
the time of award exceeds the amount of such Rent loss that Tenant
affirmatively proves could be reasonably avoided;

(iv)                              Any
other amount necessary to compensate Landlord for all the detriment either
proximately caused by Tenant’s failure to perform Tenant’s obligations under
this Lease or which in the ordinary course of things would be likely to result
therefrom; and

(v)                                 All
such other amounts in addition to or in lieu of the foregoing as may be
permitted from time to time under applicable law.

The “Worth at the Time of Award” of the amounts referred to in parts
(i) and (ii) above, shall be computed by allowing interest at the lesser
of a per annum rate equal to: (A) the greatest per annum rate of
interest permitted from time to time under applicable law, or (B) the
Prime Rate plus 5%.  For purposes hereof,
the “Prime Rate” shall be the per annum interest rate publicly announced as its
prime or base rate by a federally insured bank selected by Landlord in the
State of California.  The “Worth at the
Time of Award” of the amount referred to in part (iii),

 11
 

above, shall be computed by discounting such amount at the discount
rate of the Federal Reserve Bank of San Francisco at the time of award plus 1%;

(b)                                 Employ
the remedy described in California Civil Code § 1951.4 (Landlord may continue
this Lease in effect after Tenant’s breach and abandonment and recover Rent as
it becomes due, if Tenant has the right to sublet or assign, subject only to
reasonable limitations); or

(c)                                  Notwithstanding
Landlord’s exercise of the remedy described in California Civil Code § 1951.4
in respect of an event or events of default, at such time thereafter as
Landlord may elect in writing, to terminate this Lease and Tenant’s right to
possession of the Premises and recover an award of damages as provided above in
Paragraph 19.01(a).

19.02  The
subsequent acceptance of Rent hereunder by Landlord shall not be deemed to be a
waiver of any preceding breach by Tenant of any term, covenant or condition of
this Lease, other than the failure of Tenant to pay the particular Rent so
accepted, regardless of Landlord’s knowledge of such preceding breach at the
time of acceptance of such Rent.  No
waiver by Landlord of any breach hereof shall be effective unless such waiver
is in writing and signed by Landlord.

19.03  TENANT
HEREBY WAIVES ANY AND ALL RIGHTS CONFERRED BY SECTION 3275 OF THE CIVIL
CODE OF CALIFORNIA AND BY SECTIONS 1174 (c) AND 1179 OF THE CODE OF CIVIL PROCEDURE
OF CALIFORNIA AND ANY AND ALL OTHER LAWS AND RULES OF LAW FROM TIME TO TIME IN
EFFECT DURING THE LEASE TERM OR THEREAFTER PROVIDING THAT TENANT SHALL HAVE ANY
RIGHT TO REDEEM, REINSTATE OR RESTORE THIS LEASE FOLLOWING ITS TERMINATION BY
REASON OF TENANT’S BREACH.

THE PARTIES HEREBY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, THE
RIGHT TO TRIAL BY JURY IN ANY LITIGATION ARISING OUT OF OR RELATING TO THIS
LEASE.  IF THE JURY WAIVER PROVISIONS OF
THIS SECTION 19.03 ARE NOT ENFORCEABLE UNDER CALIFORNIA LAW, THEN THE
FOLLOWING PROVISIONS SHALL APPLY.  It is
the desire and intention of the parties to agree upon a mechanism and procedure
under which controversies and disputes arising out of this Lease or related to
the Premises will be resolved in a prompt and expeditious manner.  Accordingly, except with respect to actions
for unlawful or forcible detainer or with respect to the prejudgment remedy of
attachment, any action, proceeding or counterclaim brought by either party
hereto against the other (and/or against its officers, directors, employees,
agents or subsidiaries or affiliated entities) on any matters whatsoever
arising out of or in any way connected with this Lease, Tenant’s use or
occupancy of the Premises and/or any claim of injury or damage, whether
sounding in contract, tort, or otherwise, shall be heard and resolved by a
referee under the provisions of the California Code of Civil Procedure,
Sections 638 — 645.1, inclusive (as same may be amended, or any successor
statute(s) thereto) (the “Referee Sections”).  Any fee to initiate the judicial reference
proceedings and all fees charged and costs incurred by the referee shall be
paid by the party initiating such procedure (except that if a reporter is
requested by either party, then a reporter shall be present at all proceedings
where requested and the fees of such reporter — except for copies ordered by
the other parties — shall be borne by the party requesting the reporter);
provided however, that allocation of the costs and fees, including any
initiation fee, of such proceeding shall be ultimately determined in accordance
with Section 26.02 below.  The venue
of the proceedings shall be in the county in which the Premises are located.  Within 10 days of receipt by any party of a
written request to resolve any dispute or controversy pursuant to this
Section 19.03, the parties shall agree upon a single referee who shall try
all issues, whether of fact or law, and report a finding and judgment on such
issues as required by the Referee Sections. 
If the parties are unable to agree upon a referee within such 10 day
period, then any party may thereafter file a lawsuit in the county in which the
Premises are located for the purpose of appointment of a referee under the
Referee Sections.  If the referee is
appointed by the court, the referee shall be a neutral and impartial retired
judge with substantial experience in the relevant matters to be determined,
from Jams/Endispute, Inc., the American Arbitration Association or similar
mediation/arbitration entity. The proposed referee may be challenged by any
party for any of the grounds listed in the Referee Sections.  The referee shall have the power to decide
all issues of fact and law and report his or her decision on such issues, and
to issue all recognized remedies available at Law or in equity for any cause of
action that is before the referee, including an award of attorneys’ fees and
costs in accordance with this Lease.  The
referee shall not, however, have the power to award punitive damages, nor any
other damages which are not permitted by the express provisions of this Lease,
and the parties hereby waive any right to recover any such damages.  The parties shall be entitled to conduct all
discovery as provided in the California Code of Civil Procedure, and the
referee shall oversee discovery and may enforce all discovery orders in the
same manner as any trial court

 12
 

judge, with rights to regulate discovery and to issue and enforce
subpoenas, protective orders and other limitations on discovery available under
California law.  The reference proceeding
shall be conducted in accordance with California law (including the rules of
evidence), and in all regards, the referee shall follow California law
applicable at the time of the reference proceeding.  The parties shall promptly and diligently
cooperate with one another and the referee, and shall perform such acts as may
be necessary to obtain a prompt and expeditious resolution of the dispute or
controversy in accordance with the terms of this Section 19.03.  In this regard, the parties agree that the
parties and the referee shall use best efforts to ensure that
(a) discovery be conducted for a period no longer than 6 months from the
date the referee is appointed, excluding motions regarding discovery, and (b) a
trial date be set within 9 months of the date the referee is appointed.   In accordance with Section 644 of the
California Code of Civil Procedure, the decision of the referee upon the whole
issue must stand as the decision of the court, and upon the filing of the
statement of decision with the clerk of the court, or with the judge if there
is no clerk, judgment may be entered thereon in the same manner as if the
action had been tried by the court.   Any
decision of the referee and/or judgment or other order entered thereon shall be
appealable to the same extent and in the same manner that such decision,
judgment, or order would be appealable if rendered by a judge of the superior
court in which venue is proper hereunder. 
The referee shall in his/her statement of decision set forth his/her
findings of fact and conclusions of law. The parties intend this general
reference agreement to be specifically enforceable in accordance with the Code
of Civil Procedure. Nothing in this Section 19.03 shall prejudice the
right of any party to obtain provisional relief or other equitable remedies
from a court of competent jurisdiction as shall otherwise be available under
the Code of Civil Procedure and/or applicable court rules.

19.04  No
right or remedy herein conferred upon or reserved to Landlord is intended to be
exclusive of any other right or remedy, and each and every right and remedy
shall be cumulative and in addition to any other right or remedy given
hereunder or now or hereafter existing by agreement, applicable Law or in
equity.  In addition to other remedies
provided in this Lease, Landlord shall be entitled, to the extent permitted by
applicable Law, to injunctive relief, or to a decree compelling performance of
any of the covenants, agreements, conditions or provisions of this Lease, or to
any other remedy allowed to Landlord at law or in equity.  Forbearance by Landlord to enforce one or
more of the remedies herein provided upon an event of default shall not be deemed
or construed to constitute a waiver of such default.

19.05  If
Tenant is in Default of any of its non-monetary obligations under the Lease,
Landlord shall have the right to perform such obligations.  Tenant shall reimburse Landlord for the cost
of such performance upon demand together with an administrative charge equal to
10% of the cost of the work performed by Landlord.

19.06  This
Section 19 shall be enforceable to the maximum extent such enforcement is
not prohibited by applicable Law, and the unenforceability of any portion
thereof shall not thereby render unenforceable any other portion.

20.                               Limitation
of Liability.

NOTWITHSTANDING
ANYTHING TO THE CONTRARY CONTAINED IN THIS LEASE, THE LIABILITY OF LANDLORD
(AND OF ANY SUCCESSOR LANDLORD) SHALL BE LIMITED TO THE INTEREST OF LANDLORD IN
THE PROPERTY. TENANT SHALL LOOK SOLELY TO LANDLORD’S INTEREST IN THE PROPERTY
FOR THE RECOVERY OF ANY JUDGMENT OR AWARD AGAINST LANDLORD OR ANY LANDLORD
RELATED PARTY. NEITHER LANDLORD NOR ANY LANDLORD RELATED PARTY SHALL BE
PERSONALLY LIABLE FOR ANY JUDGMENT OR DEFICIENCY, AND IN NO EVENT SHALL
LANDLORD OR ANY LANDLORD RELATED PARTY BE LIABLE TO TENANT FOR ANY LOST PROFIT,
DAMAGE TO OR LOSS OF BUSINESS OR ANY FORM OF SPECIAL, INDIRECT OR CONSEQUENTIAL
DAMAGE.  BEFORE FILING SUIT FOR AN
ALLEGED DEFAULT BY LANDLORD, TENANT SHALL GIVE LANDLORD AND THE MORTGAGEE(S)
WHOM TENANT HAS BEEN NOTIFIED HOLD MORTGAGES (DEFINED IN SECTION 23 BELOW),
NOTICE AND REASONABLE TIME TO CURE THE ALLEGED DEFAULT.

21.                               Relocation.  Intentionally Omitted.

22.                               Holding
Over.

If Tenant fails to
surrender all or any part of the Premises at the termination of this Lease,
occupancy of the Premises after termination shall be that of a tenancy at
sufferance.  Tenant’s occupancy shall be
subject to all the terms and provisions of this Lease, and Tenant shall pay an
amount (on a per month basis without reduction for partial months during the
holdover) equal to 150% of the sum of the Base Rent and Additional Rent due for
the period immediately preceding the holdover. 
No holdover by Tenant or payment by Tenant after the termination of this
Lease

 13
 

shall be construed to
extend the Term or prevent Landlord from immediate recovery of possession of
the Premises by summary proceedings or otherwise. If Landlord is unable to
deliver possession of the Premises to a new tenant or to perform improvements
for a new tenant as a result of Tenant’s holdover and Tenant fails to vacate
the Premises within 15 days after notice from Landlord, Tenant shall be liable
for all damages that Landlord suffers from the holdover.

23.                               Subordination
to Mortgages; Estoppel Certificate.

Tenant accepts
this Lease subject and subordinate to any mortgage(s), deed(s) of trust, ground
lease(s) or other lien(s) now or subsequently arising upon the Premises, the
Building or the Property, and to renewals, modifications, refinancings and
extensions thereof (collectively referred to as a “Mortgage”).  The party having the benefit of a Mortgage
shall be referred to as a “Mortgagee”.  This clause shall be self-operative, but upon
request from a Mortgagee, Tenant shall execute a commercially reasonable
subordination agreement in favor of the Mortgagee.  As an alternative, a Mortgagee shall have the
right at any time to subordinate its Mortgage to this Lease.  Upon request, Tenant, without charge, shall
attorn to any successor to Landlord’s interest in this Lease and shall
recognize such successor as lessor under this Lease without change in the
provisions of this Lease, provided, however, if such succession shall be the
result of Mortgagee’s enforcement of any remedy under the Mortgage or related
documents, such successor shall not be liable for or bound by (a) any
payment of an installment of Rent which may have been made more than 30 days
before the due date of such installment, (b) any act or omission of or
default by Landlord under this Lease (but the successor shall be subject to the
continuing obligations of the landlord under this Lease to the extent arising
from and after such succession to the extent of such successor’s interest in
the Property), (c) any credits, claims, setoffs or defenses which Tenant
may have against Landlord, or (d) any obligation under this Lease to
maintain a fitness facility at the Property. 
Upon the reasonable request of any successor to Landlord’s interest,
Tenant shall execute and deliver an instrument or instruments confirming such
attornment.  Notwithstanding the foregoing, upon written request by Tenant, Landlord
will use reasonable efforts to obtain a non-disturbance, subordination and
attornment agreement from Landlord’s then current Mortgagee on such Mortgagee’s
then current standard form of agreement. 
“Reasonable efforts” of Landlord shall not require Landlord to incur any
cost, expense or liability to obtain such agreement, it being agreed that
Tenant shall be responsible for any fee or review costs charged by the
Mortgagee.  Upon request of Landlord,
Tenant will execute the Mortgagee’s form of non-disturbance, subordination and
attornment agreement and return the same to Landlord for execution by the Mortgagee.  Landlord’s failure to obtain a
non-disturbance, subordination and attornment agreement for Tenant shall have
no effect on the rights, obligations and liabilities of Landlord and Tenant or
be considered to be a default by Landlord hereunder.  Landlord and Tenant shall each,
within 10 Business Days after receipt of a written request from the other,
execute and deliver a commercially reasonable estoppel certificate to those
parties as are reasonably requested by the other (including a Mortgagee or prospective
purchaser).  Without limitation, such
estoppel certificate may include a certification as to the status of this
Lease, the existence of any defaults and the amount of Rent that is due and
payable.

24.                               Notice.

All demands,
approvals, consents or notices (collectively referred to as a “notice”) shall be in writing and delivered by hand or sent
by registered, express, or certified mail, with return receipt requested or
with delivery confirmation requested from the U.S. postal service, or sent by
overnight or same day courier service at the party’s respective Notice
Address(es) set forth in Section 1; provided, however, notices sent by
Landlord regarding general Building operational matters may be posted in the
Building mailroom or the general Building newsletter or sent via e-mail to the
e-mail address provided by Tenant to Landlord for such purpose.  In addition, if the Building is closed
(whether due to emergency, governmental order or any other reason), then any notice
address at the Building shall not be deemed a required notice address during
such closure, and, unless Tenant has provided an alternative valid notice
address to Landlord for use during such closure, any notices sent during such
closure may be sent via e-mail or in any other practical manner reasonably
designed to ensure receipt by the intended recipient.  Each notice shall be deemed to have been
received on the earlier to occur of actual delivery or the date on which
delivery is refused, or, if Tenant has vacated the Premises or any other Notice
Address of Tenant without providing a new Notice Address, 3 days after notice
is deposited in the U.S. mail or with a courier service in the manner described
above.  Either party may, at any time,
change its Notice Address (other than to a post office box address) by giving
the other party written notice of the new address.

 14

25.                               Surrender
of Premises.

At the termination of this Lease or Tenant’s right of possession,
Tenant shall remove Tenant’s Property from the Premises, and quit and surrender
the Premises to Landlord, broom clean, and in good order, condition and repair,
ordinary wear and tear and damage which Landlord is obligated to repair
hereunder and condemnation excepted.  If
Tenant fails to remove any of Tenant’s Property, or to restore the Premises to
the required condition, within 5 days after termination of this Lease or Tenant’s
right to possession, Landlord, at Tenant’s sole cost and expense, shall be
entitled (but not obligated) to remove and store Tenant’s Property and/or
perform such restoration of the Premises. 
Landlord shall not be responsible for the value, preservation or
safekeeping of Tenant’s Property.  Tenant
shall pay Landlord, upon demand, the expenses and storage charges
incurred.  If Tenant fails to remove
Tenant’s Property from the Premises or storage, within 30 days after notice,
Landlord may deem all or any part of Tenant’s Property to be abandoned and, at
Landlord’s option, title to Tenant’s Property shall vest in Landlord or
Landlord may dispose of Tenant’s Property in any manner Landlord deems
appropriate.

26.                               Miscellaneous.

26.01  This Lease shall be interpreted and enforced
in accordance with the Laws of the state or commonwealth in which the Building
is located and Landlord and Tenant hereby irrevocably consent to the
jurisdiction and proper venue of such state or commonwealth.  If any term or provision of this Lease shall
to any extent be void or unenforceable, the remainder of this Lease shall not
be affected. If there is more than one Tenant or if Tenant is comprised of more
than one party or entity, the obligations imposed upon Tenant shall be joint
and several obligations of all the parties and entities, and requests or
demands from any one person or entity comprising Tenant shall be deemed to have
been made by all such persons or entities. 
Notices to any one person or entity shall be deemed to have been given
to all persons and entities.  Tenant represents and warrants to Landlord,
and agrees, that each individual executing this Lease on behalf of Tenant is
authorized to do so on behalf of Tenant and that the entity(ies) or
individual(s) constituting Tenant or Guarantor or which may own or control
Tenant or Guarantor or which may be owned or controlled by Tenant or Guarantor
are not and at no time will be (i) in violation of any Laws relating to
terrorism or money laundering, or (ii) among the individuals or entities
identified on any list compiled pursuant to Executive Order 13224 for the
purpose of identifying suspected terrorists or on the most current list
published by the U.S. Treasury Department Office of Foreign Assets Control at
its official website, http://www.treas.gov/ofac/tllsdn.pdf or any replacement
website or other replacement official publication of such list.

26.02  If Landlord retains an attorney or institutes
legal proceedings due to Tenant’s failure to pay Rent when due, then Tenant
shall be required to pay Additional Rent in an amount equal to the reasonable
attorneys’ fees and costs actually incurred by Landlord in connection
therewith.  Notwithstanding the
foregoing, in any action or proceeding between Landlord and Tenant, including
any appellate or alternative dispute resolution proceeding, the prevailing
party shall be entitled to recover from the non-prevailing party all of its
costs and expenses in connection therewith, including, but not limited to,
reasonable attorneys’ fees actually incurred. 
No failure by either party to declare a default immediately upon its
occurrence, nor any delay by either party in taking action for a default, nor
Landlord’s acceptance of Rent with knowledge of a default by Tenant, shall constitute
a waiver of the default, nor shall it constitute an estoppel.

26.03  Whenever a period of time is prescribed for
the taking of an action by Landlord or Tenant (other than the payment of the
Security Deposit or Rent), the period of time for the performance of such
action shall be extended by the number of days that the performance is actually
delayed due to strikes, acts of God, shortages of labor or materials, war,
terrorist acts, pandemics, civil disturbances and other causes beyond the
reasonable control of the performing party (“Force
Majeure”).

26.04  Landlord shall have the right to transfer and
assign, in whole or in part, all of its rights and obligations under this Lease
and in the Building and Property.  Upon
transfer, Landlord shall be released from any further obligations hereunder and
Tenant agrees to look solely to the successor in interest of Landlord for the
performance of such obligations, provided that any successor pursuant to a
voluntary, third party transfer (but not as part of an involuntary transfer
resulting from a foreclosure or deed in lieu thereof) shall have assumed
Landlord’s obligations under this Lease.

26.05  Landlord
has delivered a copy of this Lease to Tenant for Tenant’s review only and the
delivery of it does not constitute an offer to Tenant or an option. Tenant
represents that it has dealt directly with and only with the Broker (described
in Section 1.10) as a broker in connection

 15
 

with this Lease. 
Tenant shall indemnify and hold Landlord and the Landlord Related Parties
harmless from all claims of any other brokers claiming to have represented
Tenant in connection with this Lease. Landlord shall indemnify and hold Tenant
and the Tenant Related Parties harmless from all claims of any brokers claiming
to have represented Landlord in connection with this Lease.  Equity Office Properties Management Corp., or such other entity
affiliated with Equity Office Properties Management Corp. that is involved in
the negotiation of this Lease (each referred to as “EOPMC”), represents only the Landlord in this
transaction.  Any assistance rendered by
any agent or employee of EOPMC in connection with this Lease or any subsequent
amendment or modification or any other document related hereto has been or will
be made as an accommodation to Tenant solely in furtherance of consummating the
transaction on behalf of Landlord, and not as agent for Tenant.

26.06 Time is of
the essence with respect to Tenant’s exercise of any expansion, renewal or
extension rights granted to Tenant. The expiration of the Term, whether by
lapse of time, termination or otherwise, shall not relieve either party of any
obligations which accrued prior to or which may continue to accrue after the
expiration or termination of this Lease.

26.07  Tenant may peacefully have,
hold and enjoy the Premises, subject to the terms of this Lease, provided
Tenant pays the Rent and fully performs all of its covenants and
agreements.  This covenant shall be
binding upon Landlord and its successors only during its or their respective periods
of ownership of the Building.

26.08  This Lease does not grant any rights to light
or air over or about the Building. 
Landlord excepts and reserves exclusively to itself any and all rights
not specifically granted to Tenant under this Lease.  Landlord reserves the right to make changes
to the Property, Building and Common Areas as Landlord deems appropriate.  This
Lease constitutes the entire agreement between the parties and supersedes all
prior agreements and understandings related to the Premises, including all
lease proposals, letters of intent and other documents.  Neither party is relying upon any warranty,
statement or representation not contained in this Lease.  This Lease may be modified only by a written
agreement signed by an authorized representative of Landlord and Tenant.

26.09  Subject to the provisions of this
Section 26.09, so long as Tenant is not in Default under this Lease, and
provided Tenant’s employees execute Landlord’s standard waiver of liability
form and pay the applicable one time or monthly fee, if any then Tenant’s
employees (the “Fitness Center Users”) shall be
entitled to use the fitness center (the “Fitness Center”)
in the building located at 275 Shoreline Drive, Redwood City, California. The
use of the Fitness Center shall be subject to the reasonable rules and
regulations (including rules regarding hours of use) established from time to
time by Landlord for the Fitness Center. 
Landlord and Tenant acknowledge that the use of the Fitness Center by
the Fitness Center Users shall be at their own risk and that the terms and
provisions of Section 13 of this Lease shall apply to Tenant and the
Fitness Center User’s use of the Fitness Center.  The costs of operating, maintaining and
repairing the Fitness Center may be included as part of Expenses.  Tenant acknowledges that the provisions of
this Section shall not be deemed to be a representation by Landlord that
Landlord shall continuously maintain the Fitness Center (or any other fitness
facility) throughout the Term of this Lease, and Landlord shall have the right,
at Landlord’s sole discretion, to expand, contract, eliminate or otherwise
modify the Fitness Center. No expansion, contraction, elimination or
modification of the Fitness Center, and no termination of Tenant’s or the
Fitness Center Users’ rights to the Fitness Center shall entitle Tenant to an
abatement or reduction in Rent, or constitute a constructive eviction, or
result in an event of default by Landlord under this Lease.

26.10  Subject to the provisions of this
Section 26.10, so long as Tenant is not in Default under this Lease,
Tenant shall be entitled to use the Building’s shower facility (the “Shower Facility”). 
The use of the Shower Facility shall be subject to the reasonable rules
and regulations (including rules regarding hours of use) established from time
to time by Landlord for the Shower Facility. 
The costs of operating, maintaining and repairing the Shower Facility
shall be included as part of Expenses. 
Tenant acknowledges that the provisions of this Section shall not be
deemed to be a representation by Landlord that Landlord shall continuously
maintain the Shower Facility throughout the Term, and Landlord shall have the
right, at Landlord’s sole discretion, to expand, contract, eliminate or
otherwise modify the Shower Facility.  In
addition, in the event Landlord no longer owns the building located at 275
Shoreline Drive, Redwood City, California, the rights of Tenant and the users
of the Shower Facility to use the Shower Facility may, at Landlord’s option, be
terminated.  No expansion, contraction,
elimination or modification of the Shower Facility, and no termination of
Tenant’s or the user’s of the Shower facility rights to the Shower Facility
shall entitle Tenant to an abatement or reduction in Rent, constitute a
constructive eviction, or result in an event of default by Landlord under this
Lease. Tenant hereby voluntarily releases,
discharges, waives and relinquishes any and all actions or causes of action

 16
 

for
personal injury or property damage occurring to Tenant or its employees or
agents arising as a result of the use of the Shower Facility, or any activities
incidental thereto, wherever or however the same may occur, and further agrees
that Tenant will not prosecute any claim for personal injury or property damage
against Landlord or any of its officers, agents, servants or employees for any
said causes of action.  It is the
intention of Tenant with respect to the Shower Facility to exempt and relieve
Landlord from liability for personal injury or property damage caused by
negligence.

Landlord and
Tenant have executed this Lease as of the day and year first above written.

	
  

  	
   

  	
  LANDLORD:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CA-SHOREBREEZE LIMITED PARTNERSHIP, a

  
	
   

  	
   

  	
  Delaware limited partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  EOP Owner GP L.L.C., a Delaware limited liability

  company, its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  VERSANT
  CORPORATION, a California corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tenant’s Tax ID Number (SSN or FEIN):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
												

 

 17

EXHIBIT A

OUTLINE
AND LOCATION OF PREMISES

This Exhibit is attached to and made a part of the Office Lease
Agreement (the “Lease”) by and
between CA-SHOREBREEZE LIMITED
PARTNERSHIP, a Delaware limited partnership  (“Landlord”) and VERSANT CORPORATION, a California corporation  (“Tenant”) for space in the Building located at 255
Shoreline Drive, Redwood City, California.  Capitalized terms used but not defined herein
shall have the meanings given in the Lease.

 1

EXHIBIT B

EXPENSES
AND TAXES

This Exhibit is attached to and made a part of the Office Lease
Agreement (the “Lease”) by and
between CA-SHOREBREEZE LIMITED
PARTNERSHIP, a Delaware limited partnership  (“Landlord”) and VERSANT CORPORATION, a California corporation  (“Tenant”) for space in the Building located at 255
Shoreline Drive, Redwood City, California.  Capitalized terms used but not defined herein
shall have the meanings given in the Lease.

1.  Payments.

1.01  Tenant shall pay Tenant’s Pro Rata Share of the
amount, if any, by which Expenses (defined below) for each calendar year during
the Term exceed Expenses for the Base Year (the “Expense
Excess”) and also the amount, if any, by which Taxes (defined below)
for each calendar year during the Term exceed Taxes for the Base Year (the “Tax Excess”).  If
Expenses or Taxes in any calendar year decrease below the amount of Expenses or
Taxes for the Base Year, Tenant’s Pro Rata Share of Expenses or Taxes, as the
case may be, for that calendar year shall be $0.  Landlord shall provide Tenant with a good
faith estimate of the Expense Excess and of the Tax Excess for each calendar
year during the Term.  On or before the
first day of each month, Tenant shall pay to Landlord a monthly installment
equal to one-twelfth of Tenant’s Pro Rata Share of Landlord’s estimate of both
the Expense Excess and Tax Excess.  If
Landlord determines that its good faith estimate of the Expense Excess or of
the Tax Excess was incorrect by a material amount, Landlord may provide Tenant
with a revised estimate.  After its
receipt of the revised estimate, Tenant’s monthly payments shall be based upon
the revised estimate.  If Landlord does
not provide Tenant with an estimate of the Expense Excess or the Tax Excess by
January 1 of a calendar year, Tenant shall continue to pay monthly installments
based on the previous year’s estimate(s) until Landlord provides Tenant with
the new estimate.  Upon delivery of the
new estimate, an adjustment shall be made for any month for which Tenant paid
monthly installments based on the previous year’s estimate.  Tenant shall pay Landlord the amount of any
underpayment within 30 days after receipt of the new estimate.  Any overpayment shall be refunded to Tenant
within 30 days or credited against the next due future installment(s) of
Additional Rent.

1.02  As soon as is practical following the end of
each calendar year, Landlord shall furnish Tenant with a statement of the
actual Expenses and Expense Excess and the actual Taxes and Tax Excess for the
prior calendar year.  If the estimated
Expense Excess or estimated Tax Excess for the prior calendar year is more than
the actual Expense Excess or actual Tax Excess, as the case may be, for the
prior calendar year, Landlord shall either provide Tenant with a refund or
apply any overpayment by Tenant against Additional Rent due or next becoming
due, provided if the Term expires before the determination of the overpayment,
Landlord shall refund any overpayment to Tenant after first deducting the
amount of Rent due.  If the estimated
Expense Excess or estimated Tax Excess for the prior calendar year is less than
the actual Expense Excess or actual Tax Excess, as the case may be, for such
prior year, Tenant shall pay Landlord, within 30 days after its receipt of the
statement of Expenses or Taxes, any underpayment for the prior calendar year.

2.  Expenses.

2.01  Expenses”
means all costs and expenses incurred in each calendar year in connection with
operating, maintaining, repairing, and managing the Building and the Property.  Landlord agrees to act in a commercially
reasonable manner in incurring Expenses, taking into consideration the class
and the quality of the Building.  “Expenses”
shall include, but not be limited to: (a)  all labor and labor related costs, including wages,
salaries, bonuses, taxes, insurance, uniforms, training, retirement plans,
pension plans and other employee benefits; (b) management fees;
(c) the cost of equipping, staffing and operating an on-site and/or
off-site management office for the Building, provided if the management office
services one or more other buildings or properties, the shared costs and
expenses of equipping, staffing and operating such management office(s) shall
be equitably prorated and apportioned between the Building and the other
buildings or properties; (d) accounting costs; (e) the cost of
services; (f) rental and purchase cost of parts, supplies, tools and
equipment; (g) insurance premiums and deductibles (provided, however, that
insurance deductibles with respect to earthquake coverage shall not exceed 5%
of the total insurable value of the Property on a per occurrence basis and all
other insurance deductibles shall not exceed $100,000.00 per occurrence);
(h) electricity, gas and other utility costs; and (i) the amortized cost
of capital improvements (as distinguished from replacement parts or components
installed in the ordinary course of business) made subsequent to the Base Year
which are:  (1) performed primarily
to reduce current or future operating expense costs, upgrade Building security
or otherwise improve the operating efficiency of the

 1
 

Property; or
(2) required to comply with any Laws that are enacted, or first
interpreted to apply to the Property, after the date of the Lease.  The cost of capital improvements shall be
amortized by Landlord over the lesser of the Payback Period (defined below) or
the useful life of the capital improvement as reasonably determined by
Landlord. The amortized cost of capital improvements may, at Landlord’s option,
include actual or imputed interest at the rate that Landlord would reasonably
be required to pay to finance the cost of the capital improvement. “Payback Period”
means the reasonably estimated period of time that it takes for the cost
savings resulting from a capital improvement to equal the total cost of the
capital improvement. Landlord, by itself or through an affiliate, shall
have the right to directly perform, provide and be compensated for any services
under the Lease. If Landlord incurs Expenses for the Building or Property
together with one or more other buildings or properties, whether pursuant to a
reciprocal easement agreement, common area agreement or otherwise, the shared
costs and expenses shall be equitably prorated and apportioned between the
Building and Property and the other buildings or properties.

2.02  Expenses shall not include: the cost of
capital improvements (except as set forth above); depreciation; principal
payments of mortgage and other non-operating debts of Landlord; the cost of
repairs or other work to the extent Landlord is reimbursed by insurance or
condemnation proceeds; costs in connection with leasing space in the Building,
including brokerage commissions; lease concessions, rental abatements and
construction allowances granted to specific tenants; costs incurred in
connection with the sale, financing or refinancing of the Building; fines,
interest and penalties incurred due to the late payment of Taxes or Expenses;
organizational expenses associated with the creation and operation of the entity
which constitutes Landlord; any penalties or damages that Landlord pays to
Tenant under this Lease or to other tenants in the Building under their
respective leases; or sums (other than
management fees, it being agreed that the management fees included in Expenses
are as described in Section 2.01 above) paid to subsidiaries or other
affiliates of Landlord for services on or to the Property, Building and/or
Premises, but only to the extent that the costs of such services exceed the
competitive cost for such services rendered by persons or entities of similar
skill, competence and experience.

2.03  If at any time during a calendar year the
Building is not at least 95% occupied or Landlord is not supplying services to
at least 95% of the total Rentable Square Footage of the Building, Expenses
shall, at Landlord’s option, be determined as if the Building had been 95%
occupied and Landlord had been supplying services to 95% of the Rentable Square
Footage of the Building during that calendar year.  If Expenses for a calendar year are
determined as provided in the prior sentence, Expenses for the Base Year shall
also be determined in such manner. Notwithstanding the foregoing, Landlord may
calculate the extrapolation of Expenses under this Section based on 100% occupancy
and service so long as such percentage is used consistently for each year of
the Term. The extrapolation of Expenses under this Section shall be performed
in accordance with the methodology specified by the Building Owners and
Managers Association.

3.  “Taxes” shall
mean:  (a) all real property taxes
and other assessments on the Building and/or Property, including, but not
limited to, gross receipts taxes, assessments for special improvement districts
and building improvement districts, governmental charges, fees and assessments
for police, fire, traffic mitigation or other governmental service of purported
benefit to the Property, taxes and assessments levied in substitution or
supplementation in whole or in part of any such taxes and assessments and the
Property’s share of any real estate taxes and assessments under any reciprocal
easement agreement, common area agreement or similar agreement as to the
Property; (b) all personal property taxes for property that is owned by
Landlord and used in connection with the operation, maintenance and repair of
the Property; and (c) all costs and fees incurred in connection with
seeking reductions in any tax liabilities described in (a) and (b), including,
without limitation, any costs incurred by Landlord for compliance, review and
appeal of tax liabilities.  Without
limitation, Taxes shall not include any income, capital levy, transfer, capital
stock, gift, estate or inheritance tax. If a change in Taxes is obtained for any
year of the Term during which Tenant paid Tenant’s Pro Rata Share of any Tax
Excess, then Taxes for that year will be retroactively adjusted and Landlord
shall provide Tenant with a credit, if any, based on the adjustment.  Likewise, if a change is obtained for Taxes
for the Base Year, Taxes for the Base Year shall be restated and the Tax Excess
for all subsequent years shall be recomputed. 
Tenant shall pay Landlord the amount of Tenant’s Pro Rata Share of any
such increase in the Tax Excess within 30 days after Tenant’s receipt of a
statement from Landlord.

4.  Audit Rights.  Within 120 days after receiving Landlord’s
statement of Expenses (or, with respect to the Base Year Expenses, within 120
days after receiving Landlord’s initial statement of Expenses for the Base
Year) (each such period is referred to as the “Review Notice Period”), Tenant may give Landlord written
notice (“Review Notice”) that Tenant intends to
review

 2
 

Landlord’s records of the
Expenses for the calendar year (or Base Year, as applicable) to which the
statement applies, and within 120 days after sending the Review Notice to
Landlord (such period is referred to as the “Request
for Information Period”), Tenant shall send Landlord a written
request identifying, with a reasonable degree of specificity, the information
that Tenant desires to review (the “Request
for Information”).  Within a
reasonable time after Landlord’s receipt of a timely Request for Information
and executed Audit Confidentiality Agreement (referenced below), Landlord, as
determined by Landlord, shall forward to Tenant, or make available for
inspection on site at such location deemed reasonably appropriate by Landlord,
such records (or copies thereof) for the applicable calendar year (or Base
Year, as applicable) that are reasonably necessary for Tenant to conduct its
review of the information appropriately identified in the Request for
Information.  Within 90 days after any
particular records are made available to Tenant (such period is referred to as
the “Objection Period”), Tenant
shall have the right to give Landlord written notice (an “Objection
Notice”) stating in reasonable detail any objection to Landlord’s
statement of Expenses for that year which relates to the records that have been
made available to Tenant.  If Tenant
provides Landlord with a timely Objection Notice, Landlord and Tenant shall
work together in good faith to resolve any issues raised in Tenant’s Objection
Notice.  If Landlord and Tenant determine
that Expenses for the calendar year are less than reported, Landlord shall
provide Tenant with a credit against the next installment of Rent in the amount
of the overpayment by Tenant.  Likewise,
if Landlord and Tenant determine that Expenses for the calendar year are
greater than reported, Tenant shall pay Landlord the amount of any underpayment
within 30 days.  If Tenant fails to give
Landlord an Objection Notice with respect to any records that have been made
available to Tenant prior to expiration of the Objection Period applicable to
the records which have been provided to Tenant, Tenant shall be deemed to have
approved Landlord’s statement of Expenses with respect to the matters reflected
in such records and shall be barred from raising any claims regarding the
Expenses relating to such records for that year.  If Tenant fails to provide Landlord with a
Review Notice prior to expiration of the Review Notice Period or fails to
provide Landlord with a Request for Information prior to expiration of the
Request for Information Period described above, Tenant shall be deemed to have
approved Landlord’s statement of Expenses and shall be barred from raising any
claims regarding the Expenses for that year.

If Tenant retains an
agent to review Landlord’s records, the agent must be with a CPA firm licensed
to do business in the state or commonwealth where the Property is located.  Tenant shall be solely responsible for all
costs, expenses and fees incurred for the audit, and the fees charged cannot be
based in whole or in part on a contingency basis.  The records and related information obtained
by Tenant shall be treated as confidential, and applicable only to the
Building, by Tenant and its auditors, consultants and other parties reviewing
such records on behalf of Tenant (collectively, “Tenant’s Auditors”), and, prior to making any records
available to Tenant or Tenant’s Auditors, Landlord may require Tenant and
Tenant’s Auditors to each execute a reasonable confidentiality agreement (“Audit Confidentiality Agreement”) in
accordance with the foregoing.  In no
event shall Tenant be permitted to examine Landlord’s records or to dispute any
statement of Expenses unless Tenant has paid and continues to pay all Rent when
due.

 3

EXHIBIT C

WORK
LETTER

This Exhibit is attached to and made a part of the Office Lease
Agreement (the “Lease”) by and
between CA-SHOREBREEZE LIMITED
PARTNERSHIP, a Delaware limited partnership  (“Landlord”) and VERSANT CORPORATION, a California corporation  (“Tenant”) for space in the Building located at 255
Shoreline Drive, Redwood City, California.  Capitalized terms used but not defined herein
shall have the meanings given in the Lease.

As used in this Work
Letter, the “Premises” shall be
deemed to mean the Premises, as initially defined in the attached Lease.

1.                                       This
Work Letter shall set forth the obligations of Landlord and Tenant with respect
to the improvements to be performed in the Premises for Tenant’s use.  All improvements described in this Work Letter
to be constructed in and upon the Premises by Landlord are hereinafter referred
to as the “Landlord Work.”  It is agreed that construction of the
Landlord Work will be completed at Tenant’s sole cost and expense, subject to
the Allowance (as defined below). 
Landlord and Tenant acknowledge that Plans (hereinafter defined) for the
Landlord Work have not yet been prepared; provided, however that the Plans
shall be substantially consistent with the space plans dated March 20, 2007
prepared by AP+I Designs and attached hereto as Exhibit C-1 (the “Space Plans”).  Landlord shall enter into a direct contract
for the Landlord Work with a general contractor selected by Landlord; provided,
however that Landlord shall competitively bid the Landlord Work (as determined
by Landlord in Landlord’s reasonable discretion) to South Bay Construction,
Venture Builders and McClarney Construction. 
The general contractor with the lowest bid that commits to Landlord’s
scheduling requirements (after adjustment for inconsistent qualifications,
clarifications and exclusions) shall be selected.  In addition, Landlord shall have the right to
select and/or approve of any subcontractors used in connection with the
Landlord Work.

2.                                       Tenant
shall be solely responsible for the timely preparation and submission to
Landlord of the final architectural, electrical and mechanical construction
drawings, plans and specifications (called “Plans”)
necessary to construct the Landlord Work, which plans shall be substantially
consistent with the Space Plans and shall be subject to approval by Landlord
and Landlord’s architect and engineers and shall comply with their requirements
to avoid aesthetic or other conflicts with the design and function of the
balance of the Building.  Tenant shall be
responsible for all elements of the design of Tenant’s plans (including,
without limitation, compliance with law, functionality of design, the
structural integrity of the design, the configuration of the Premises and the
placement of Tenant’s furniture, appliances and equipment), and Landlord’s
approval of Tenant’s plans shall in no event relieve Tenant of the
responsibility for such design.  If
requested by Tenant, Landlord’s architect will prepare the Plans necessary for
such construction at Tenant’s cost.  Whether
or not the layout and Plans are prepared with the help (in whole or in part) of
Landlord’s architect, Tenant agrees to remain solely responsible for the timely
preparation and submission of the Plans and for all elements of the design of
such Plans and for all costs related thereto. 
Tenant has assured itself by direct communication with the architect and
engineers (Landlord’s or its own, as the case may be) that the final approved
Plans can be delivered to Landlord on or before April 9, 2007 (the “Plans Due Date”), provided that Tenant
promptly furnishes complete information concerning its requirements to said
architect and engineers as and when requested by them.  Tenant covenants and agrees to cause said
final, approved Plans to be delivered to Landlord on or before said Plans Due
Date and to devote such time as may be necessary in consultation with said
architect and engineers to enable them to complete and submit the Plans within
the required time limit.  Time is of the
essence in respect of preparation and submission of Plans by Tenant.  If the Plans are not fully completed and
approved by the Plans Due Date, Tenant shall be responsible for one day of
Tenant Delay (as defined in the Lease to which this Exhibit is attached) for
each day during the period beginning on the day following the Plans Due Date
and ending on the date completed Plans are approved.  Landlord and Tenant acknowledge and agree
that the parties shall meet once weekly to discuss the construction of the
Landlord Work.  The day and time of said
meetings shall be mutually agreed upon by Landlord and Tenant.  (The word “architect” as used in this Exhibit
shall include an interior designer or space planner.)

3.                                       If
Landlord’s estimate and/or the actual cost of construction shall exceed the Allowance,
Landlord, prior to commencing any construction of Landlord Work, shall submit
to Tenant a written estimate setting forth the anticipated cost of the Landlord
Work, including but not limited to labor and materials, contractor’s fees and
permit fees.  Within 3 Business Days

 1
 

thereafter, Tenant shall either notify Landlord in
writing of its approval of the cost estimate, or specify its objections thereto
and any desired changes to the proposed Landlord Work.  If Tenant notifies Landlord of such objections
and desired changes, Tenant shall work with Landlord to reach a mutually
acceptable alternative cost estimate.

4.                                       If
Landlord’s estimate and/or the actual cost of construction shall exceed the
Allowance, if any (such amounts exceeding the Allowance being herein referred
to as the “Excess Costs”), Tenant
shall pay to Landlord such Excess Costs, plus any applicable state sales or use
tax thereon, within 30 days receipt of notice from Landlord.  The statements of costs submitted to Landlord
by Landlord’s contractors shall be conclusive for purposes of determining the
actual cost of the items described therein. 
The amounts payable by Tenant hereunder constitute Rent payable pursuant
to the Lease, and the failure to timely pay same constitutes an event of
default under the Lease.

5.                                       If
Tenant shall request any change, addition or alteration in any of the Plans
after approval by Landlord, Landlord shall have such revisions to the drawings
prepared, and Tenant shall reimburse Landlord for the cost thereof, plus any
applicable state sales or use tax thereon, within 30 days receipt of notice
from Landlord.  Promptly upon completion
of the revisions, Landlord shall notify Tenant in writing of the increased cost
which will be chargeable to Tenant by reason of such change, addition or
deletion.  Tenant, within one Business
Day, shall notify Landlord in writing whether it desires to proceed with such
change, addition or deletion.  In the absence
of such written authorization, Landlord shall have the option to continue work
on the Premises disregarding the requested change, addition or alteration, or
Landlord may elect to discontinue work on the Premises until it receives notice
of Tenant’s decision, in which event Tenant shall be responsible for any Tenant
Delay in completion of the Premises resulting therefrom.  If such revisions result in a higher estimate
of the cost of construction and/or higher actual construction costs which
exceed the Allowance, such increased estimate or costs shall be deemed Excess
Costs pursuant to Paragraph 4 hereof and Tenant shall pay such Excess
Costs, plus any applicable state sales or use tax thereon, upon demand.

6.                                       Following
approval of the Plans and the payment by Tenant of the required portion of the
Excess Costs, if any, Landlord shall cause the Landlord Work to be constructed
substantially in accordance with the approved Plans.  Landlord shall notify Tenant of substantial
completion of the Landlord Work.

7.                                       Landlord,
provided Tenant is not in default, agrees to provide Tenant with an allowance
(the “Allowance”) in an amount not
to exceed $101,370.00 (i.e., $15.00 per rentable square foot of the Premises)
to be applied toward the cost of the Landlord Work in the Premises.  If the Allowance shall not be sufficient to
complete the Landlord Work, Tenant shall pay the Excess Costs, plus any
applicable state sales or use tax thereon, as prescribed in Paragraph 4
above.  If the cost of the Landlord Work
is less than the Allowance, Tenant, provided it is not in default under the
Lease, shall be entitled to apply such unused Allowance (the “Cabling Allowance”) toward the cost of
purchasing and installing telephone and computer cabling in the Premises.  All such costs, as evidenced by invoices for
same, are referred to herein as the “Cabling
Costs”.  Landlord shall
disburse the Cabling Allowance, or applicable portion thereof (not to exceed
the actual Cabling Costs), to Tenant within thirty (30) days after the later to
occur of (i) receipt of paid invoices from Tenant with respect to Tenant’s actual
Cabling Costs, and (ii) completion of the Landlord Work.  However, notwithstanding the foregoing, any
portion of the Allowance which exceeds the cost of the Landlord Work and the
Cabling Costs or is otherwise remaining after November 30, 2007, shall accrue
to the sole benefit of Landlord, it being agreed that Tenant shall not be
entitled to any credit, offset, abatement or payment with respect thereto.  Landlord shall be entitled to deduct from the
Allowance a construction management fee for Landlord’s oversight of the
Landlord Work in an amount equal to 3% of the total cost of the Landlord Work.

8.                                       This
Exhibit shall not be deemed applicable to any additional space added to the
Premises at any time or from time to time, whether by any options under the
Lease or otherwise, or to any portion of the original Premises or any additions
to the Premises in the event of a renewal or extension of the original Term of
the Lease, whether by any options under the Lease or otherwise, unless
expressly so provided in the Lease or any amendment or supplement to the Lease.

 2

EXHIBIT
C-1

SPACE
PLANS

This Exhibit is attached to and made a part of the Office Lease
Agreement (the “Lease”) by and
between CA-SHOREBREEZE LIMITED
PARTNERSHIP, a Delaware limited partnership  (“Landlord”) and VERSANT CORPORATION, a California corporation  (“Tenant”) for space in the Building located at 255
Shoreline Drive, Redwood City, California.  Capitalized terms used but not defined herein
shall have the meanings given in the Lease.

 1

EXHIBIT D

COMMENCEMENT
LETTER

This Exhibit is attached to and made a part of the Office Lease
Agreement (the “Lease”) by and
between CA-SHOREBREEZE LIMITED
PARTNERSHIP, a Delaware limited partnership  (“Landlord”) and VERSANT CORPORATION, a California corporation  (“Tenant”) for space in the Building located at 255
Shoreline Drive, Redwood City, California.  Capitalized terms used but not defined herein
shall have the meanings given in the Lease.

(EXAMPLE)

	
  Date

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Tenant

  	
   

  	
  VERSANT CORPORATION, a California corporation

  
	
  Address

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

Re:                               Commencement
Letter with respect to that certain Lease dated as of                ,
20   , by and between CA-SHOREBREEZE
LIMITED PARTNERSHIP, a Delaware limited partnership, as Landlord, and VERSANT CORPORATION, a
California corporation, as Tenant, for 6,758
rentable square feet on the fourth floor of the Building located at 255
Shoreline Drive, Redwood City, California.

	
  Lease Id:

  	
   

  	
   

  
	
  Business Unit
  Number:

  	
   

  	
   

  
					

 

Dear                                   :

In accordance with
the terms and conditions of the above referenced Lease, Tenant accepts
possession of the Premises and acknowledges:

1.         The
Commencement Date of the Lease is                                      ;

2.         The
Termination Date of the Lease is                                              .

Please acknowledge
the foregoing and your acceptance of possession by signing all 3 counterparts
of this Commencement Letter in the space provided and returning 2 fully
executed counterparts to my attention. 
Tenant’s failure to execute and return this letter, or to provide
written objection to the statements contained in this letter, within 30 days
after the date of this letter shall be deemed an approval by Tenant of the
statements contained herein.

Sincerely,

 

 

	
  

  	
   

  
	
  Authorized Signatory

  

 

Acknowledged and
Accepted:

Tenant:     VERSANT CORPORATION, a California corporation

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
				

 

cc:    EOP Lease Administration

EOP Leasing AA

EOP Legal

 1

EXHIBIT E

BUILDING
RULES AND REGULATIONS

This Exhibit is attached to and made a part of the Office Lease
Agreement (the “Lease”) by and
between CA-SHOREBREEZE LIMITED
PARTNERSHIP, a Delaware limited partnership  (“Landlord”) and VERSANT CORPORATION, a California corporation  (“Tenant”) for space in the Building located at 255
Shoreline Drive, Redwood City, California.  Capitalized terms used but not defined herein
shall have the meanings given in the Lease.

The following
rules and regulations shall apply, where applicable, to the Premises, the
Building, the parking facilities (if any), the Property and the
appurtenances.  In the event of a
conflict between the following rules and regulations and the remainder of the
terms of the Lease, the remainder of the terms of the Lease shall control.

1.                                       Sidewalks,
doorways, vestibules, halls, stairways and other similar areas shall not be
obstructed by Tenant or used by Tenant for any purpose other than ingress and
egress to and from the Premises.  No
rubbish, litter, trash, or material shall be placed, emptied, or thrown in
those areas.  At no time shall Tenant
permit Tenant’s employees to loiter in Common Areas or elsewhere about the
Building or Property.

2.                                       Plumbing
fixtures and appliances shall be used only for the purposes for which designed
and no sweepings, rubbish, rags or other unsuitable material shall be thrown or
placed in the fixtures or appliances.

3.                                       No
signs, advertisements or notices shall be painted or affixed to windows, doors
or other parts of the Building, except those of such color, size, style and in
such places as are first approved in writing by Landlord.  All tenant identification and suite numbers
at the entrance to the Premises shall be installed by Landlord, at Tenant’s
cost and expense, using the standard graphics for the Building. Except in
connection with the hanging of lightweight pictures and wall decorations, no
nails, hooks or screws shall be inserted into any part of the Premises or
Building except by the Building maintenance personnel without Landlord’s prior
approval, which approval shall not be unreasonably withheld.

4.                                       Landlord
may provide and maintain in the first floor (main lobby) of the Building an
alphabetical directory board or other directory device listing tenants and no
other directory shall be permitted unless previously consented to by Landlord
in writing.

5.                                       Tenant
shall not place any lock(s) on any door in the Premises or Building without
Landlord’s prior written consent, which consent shall not be unreasonably
withheld, and Landlord shall have the right at all times to retain and use keys
or other access codes or devices to all locks within and into the
Premises.  A reasonable number of keys to
the locks on the entry doors in the Premises shall be furnished by Landlord to
Tenant at Tenant’s cost and Tenant shall not make any duplicate keys.  All keys shall be returned to Landlord at the
expiration or early termination of the Lease.

6.                                       All
contractors, contractor’s representatives and installation technicians
performing work in the Building shall be subject to Landlord’s prior approval,
which approval shall not be unreasonably withheld, and shall be required to
comply with Landlord’s standard rules, regulations, policies and procedures,
which may be revised from time to time.

7.                                       Movement
in or out of the Building of furniture or office equipment, or dispatch or
receipt by Tenant of merchandise or materials requiring the use of elevators,
stairways, lobby areas or loading dock areas, shall be performed in a manner
and restricted to hours reasonably designated by Landlord.  Tenant shall obtain Landlord’s prior approval
by providing a detailed listing of the activity, including the names of any
contractors, vendors or delivery companies, which approval shall not be
unreasonably withheld.  Tenant shall
assume all risk for damage, injury or loss in connection with the activity.

8.                                       Landlord
shall have the right to approve the weight, size, or location of heavy
equipment or articles in and about the Premises, which approval shall not be unreasonably
withheld; provided that approval by Landlord shall not relieve Tenant from
liability for any damage in connection with such heavy equipment or articles

9.                                       Corridor
doors, when not in use, shall be kept closed.

10.                                 Tenant
shall not:  (a) make or permit any
improper, objectionable or unpleasant noises or odors in the Building, or
otherwise interfere in any way with other tenants or persons

 1
 

having business with them; (b) solicit business or distribute or
cause to be distributed, in any portion of the Building, handbills, promotional
materials or other advertising; or (c) conduct or permit other activities
in the Building that might, in Landlord’s sole opinion, constitute a nuisance.

11.                                 No
animals, except those assisting handicapped persons, shall be brought into the
Building or kept in or about the Premises.

12.                                 No
inflammable, explosive or dangerous fluids or substances shall be used or kept
by Tenant in the Premises, Building or about the Property, except for those substances as are typically found
in similar premises used for general office purposes and are being used by
Tenant in a safe manner and in accordance with all applicable Laws.  Tenant shall not, without Landlord’s prior
written consent, use, store, install, spill, remove, release or dispose of,
within or about the Premises or any other portion of the Property, any
asbestos-containing materials or any solid, liquid or gaseous material now or
subsequently considered toxic or hazardous under the provisions of 42 U.S.C.
Section 9601 et seq. or any other applicable environmental Law which may
now or later be in effect.  Tenant shall
comply with all Laws pertaining to and governing the use of these materials by
Tenant and shall remain solely liable for the costs of abatement and removal.

13.                                 Tenant
shall not use or occupy the Premises in any manner or for any purpose which
might injure the reputation or impair the present or future value of the
Premises or the Building. Tenant shall not use, or permit any part of the
Premises to be used for lodging, sleeping or for any illegal purpose.

14.                                 Tenant
shall not take any action which would violate Landlord’s labor contracts or
which would cause a work stoppage, picketing, labor disruption or dispute or
interfere with Landlord’s or any other tenant’s or occupant’s business or with
the rights and privileges of any person lawfully in the Building (“Labor Disruption”). 
Tenant shall take the actions necessary to resolve the Labor Disruption,
and shall have pickets removed and, at the request of Landlord, immediately
terminate any work in the Premises that gave rise to the Labor Disruption,
until Landlord gives its written consent for the work to resume.  Tenant shall have no claim for damages
against Landlord or any of the Landlord Related Parties nor shall the
Commencement Date of the Term be extended as a result of the above actions.

15.                                 Tenant
shall not install, operate or maintain in the Premises or in any other area of
the Building, electrical equipment that would overload the electrical system
beyond its capacity for proper, efficient and safe operation as determined
solely by Landlord.  Tenant shall not
furnish cooling or heating to the Premises, including, without limitation, the
use of electric or gas heating devices, without Landlord’s prior written
consent.  Tenant shall not use more than
its proportionate share of telephone lines and other telecommunication
facilities available to service the Building.

16.                                 Tenant
shall not operate or permit to be operated a coin or token operated vending
machine or similar device (including, without limitation, telephones, lockers,
toilets, scales, amusement devices and machines for sale of beverages, foods,
candy, cigarettes and other goods), except for machines for the exclusive use
of Tenant’s employees and invitees.

17.                                 Bicycles
and other vehicles are not permitted inside the Building or on the walkways
outside the Building, except in areas designated by Landlord.

18.                                 Landlord
may from time to time adopt systems and procedures for the security and safety
of the Building and Property, its occupants, entry, use and contents.  Tenant, its agents, employees, contractors,
guests and invitees shall comply with Landlord’s systems and procedures.

19.                                 Landlord
shall have the right to prohibit the use of the name of the Building or any
other publicity by Tenant that in Landlord’s sole opinion may impair the
reputation of the Building or its desirability. 
Upon written notice from Landlord, Tenant shall refrain from and
discontinue such publicity immediately.

20.                                 Neither
Tenant nor its agents, employees, contractors, guests or invitees shall smoke
or permit smoking in the Common Areas, unless a portion of the Common Areas
have been declared a designated smoking area by Landlord, nor shall the above
parties allow smoke from the Premises to emanate into the Common Areas or any
other part of the

 2
 

Building.  Landlord shall have
the right to designate the Building (including the Premises) as a non-smoking
building.

21.                                 Landlord
shall have the right to designate and approve standard window coverings for the
Premises and to establish rules to assure that the Building presents a uniform
exterior appearance.  Tenant shall
ensure, to the extent reasonably practicable, that window coverings are closed
on windows in the Premises while they are exposed to the direct rays of the
sun.

22.                                 Deliveries
to and from the Premises shall be made only at the times in the areas and
through the entrances and exits reasonably designated by Landlord.  Tenant shall not make deliveries to or from
the Premises in a manner that might interfere with the use by any other tenant
of its premises or of the Common Areas, any pedestrian use, or any use which is
inconsistent with good business practice.

23.                                 The
work of cleaning personnel shall not be hindered by Tenant after 5:30 P.M., and cleaning work may be done at
any time when the offices are vacant. Windows, doors and fixtures may be
cleaned at any time.  Tenant shall
provide adequate waste and rubbish receptacles to prevent unreasonable hardship
to the cleaning service.

24.                                 Fitness
Center Rules.  Tenant shall cause its
employees (whether members or prospective members of the Fitness Center) to
comply with the following Fitness Center rules and regulations (subject to
change from time to time as Landlord may solely determine):

A.                                   Membership
in the Fitness Center is open to the tenants of Shorebreeze I and Shorebreeze II.  No guests will be permitted to use the
Fitness Center without the prior written approval of Landlord or Landlord’s
representative.

B.                                     Fitness
Center users are not allowed to be in the Fitness Center other than the hours
designated by Landlord from time to time. 
Landlord shall have the right to alter the hours of use of the Fitness
Center, at Landlord’s sole discretion.

C.                                     All
Fitness Center users must execute Landlord’s Waiver of Liability prior to use
of the Fitness Center and agree to all terms and conditions outlined therein.

D.                                    Individual
membership and guest keycards to the Fitness Center shall not be shared and
shall only be used by the individual to whom such keycard was issued.  Failure to abide by this rule may result in
immediate termination of such Fitness Center user’s right to use the Fitness
Center.

E.                                      All
Fitness Center users and approved guests must have a pre-authorized keycard to
enter the Fitness Center.  A
pre-authorized keycard shall not be issued to a prospective Fitness Center user
until receipt by Landlord of Landlord’s initial fee, if any, for use of the
Fitness Center by such Fitness Center user(s).

F.                                      Use
of the Fitness Center is a privilege and not a right.  Failure to follow gym rules or to act
inappropriately while using the facilities shall result in termination of
Tenant’s Fitness Center privileges.

 3
 

EXHIBIT F

ADDITIONAL PROVISIONS

This Exhibit is attached to and made a part of the Office Lease
Agreement (the “Lease”) by and
between CA-SHOREBREEZE LIMITED
PARTNERSHIP, a Delaware limited partnership  (“Landlord”) and VERSANT CORPORATION, a California corporation  (“Tenant”) for space in the Building located at 255
Shoreline Drive, Redwood City, California.  Capitalized terms used but not defined herein
shall have the meanings given in the Lease.

1.                                       Renewal Option.

A.                                   Grant
of Option; Conditions.  Tenant shall
have the right to extend the Term (the “Renewal Option”)
for one additional period of one (1) year commencing on the day following the
Termination Date of the initial Term and ending on the first anniversary
of the Termination Date (the “Renewal Term”),
if:

1.                                       Landlord
receives notice of exercise (“Initial Renewal Notice”)
not less than 6 full calendar months prior to the expiration of the initial
Term and not more than 9 full calendar months prior to the expiration of the
initial Term; and

2.                                       Tenant
is not in default under the Lease beyond any applicable cure periods at the
time that Tenant delivers its Initial Renewal Notice or at the time Tenant
delivers its Binding Notice (as defined below); and

3.                                       No
part of the Premises is sublet (other than pursuant to a Business Transfer, as
defined in Section 11.04 of the Lease) at the time that Tenant delivers
its Initial Renewal Notice or at the time Tenant delivers its Binding Notice;
and

4.                                       The
Lease has not been assigned (other than pursuant to a Business Transfer, as
defined in Section 11.04 of the Lease) prior to the date that Tenant
delivers its Initial Renewal Notice or prior to the date Tenant delivers its
Binding Notice.

B.                                     Terms
Applicable to Premises During Renewal Term.

1.                                       The
initial Base Rent rate per rentable square foot for the Premises during the
Renewal Term shall equal the Prevailing Market (hereinafter defined) rate per
rentable square foot for the Premises.  Base Rent during the Renewal Term shall increase,
if at all, in accordance with the increases assumed in the determination of
Prevailing Market rate.  Base Rent
attributable to the Premises shall be payable in monthly installments in
accordance with the terms and conditions of the Lease.

2.                                       Tenant
shall pay Additional Rent (i.e. Taxes and Expenses) for the Premises during the
Renewal Term in accordance with the Lease, and the manner and method in which
Tenant reimburses Landlord for Tenant’s share of Taxes and Expenses and the
Base Year, if any, applicable to such matter, shall be some of the factors
considered in determining the Prevailing Market rate for the Renewal Term.

C.                                     Procedure
for Determining Prevailing Market. 
Within 30 days after receipt of Tenant’s Initial Renewal Notice,
Landlord shall advise Tenant of the applicable Base Rent rate for the Premises
for the Renewal Term (“Landlord’s Renewal
Base Rent Notice”), which shall reflect the Prevailing Market rate
(described below in this Section) per rentable square foot for the
Premises.  Tenant, within 15 days
after Tenant’s receipt of Landlord’s Renewal Base Rent Notice, shall either
(i) give Landlord written notice (“Binding
Notice”) that Tenant accepts the
Base Rent rate for the Premises for the Renewal Term described in Landlord’s
Renewal Base Rent Notice, in which event the parties shall enter into the
Renewal Amendment as described in the “Renewal Amendment”) provision below, or
(ii) if Tenant disagrees with Landlord’s determination of the applicable
Base Rent rate for the Premises during the Renewal Term, provide Landlord with
written notice of rejection (the “Rejection Notice”).  If Tenant fails to provide Landlord with
either a Binding Notice or Rejection Notice within such 15 day

 4
 

period, Tenant’s Renewal Option shall be null and void
and of no further force and effect.  If
Tenant provides Landlord with a Binding Notice, Landlord and Tenant shall enter
into the Renewal Amendment (as defined below) upon the terms and conditions set
forth herein.  If Tenant provides
Landlord with a Rejection Notice, Landlord and Tenant shall work together in
good faith to agree upon the Prevailing Market rate for the Premises during the
Renewal Term.  When Landlord and Tenant
have agreed upon the Prevailing Market rate for the Premises, such agreement
shall be reflected in a written agreement between Landlord and Tenant, whether
in a letter or otherwise (and such shall be deemed a “Binding Notice”, for
purposes herein), and Landlord and Tenant shall enter into the Renewal
Amendment in accordance with the terms and conditions hereof.  Notwithstanding the foregoing, if Landlord
and Tenant are unable to agree upon the Prevailing Market rate for the Premises
within 30 days after the date Tenant provides Landlord with the Rejection
Notice, Tenant’s Renewal Option shall be deemed to be null and void and of no
force and effect.

D.                                    Renewal
Amendment.  If Tenant is entitled to and
properly exercises its Renewal Option, and if Tenant provides Landlord with a
Binding Notice (as described above) or Landlord and Tenant otherwise agree upon
the Prevailing Market rate for the Premises applicable during the Renewal Term,
Landlord shall prepare an amendment (the “Renewal Amendment”)
to reflect changes in the Base Rent, Term, Termination Date and other
appropriate terms.  The Renewal Amendment
shall be sent to Tenant within a reasonable time after Landlord’s receipt of
the Binding Notice or other written agreement by Landlord and Tenant regarding
the Prevailing Market rate, and Tenant shall execute and return the Renewal
Amendment to Landlord within 15 days after Tenant’s receipt of same, but, upon
final determination of the Prevailing Market rate applicable during the Renewal
Term as described herein, an otherwise valid exercise of the Renewal Option
shall be fully effective whether or not the Renewal Amendment is executed.

E.                                      Definition
of Prevailing Market. For purposes of this Renewal Option, “Prevailing Market” shall mean the arms length fair market
annual rental rate per rentable square foot under renewal leases and amendments
entered into on or about the date on which the Prevailing Market is being
determined hereunder for space comparable to the Premises in the Building and office
buildings comparable to the Building in the Redwood City, California area.  The determination of Prevailing Market shall
take into account any material economic differences between the terms of this
Lease and any comparison lease or amendment, such as rent abatements,
construction costs and other concessions, and the manner, if any, in which the
landlord under any such lease is reimbursed for operating expenses and
taxes.  The determination of Prevailing
Market shall also take into consideration any reasonably anticipated changes in
the Prevailing Market rate from the time such Prevailing Market rate is being
determined and the time such Prevailing Market rate will become effective under
this Lease.

2.                                       Supplemental HVAC.  To the extent included in the Plans described
in Exhibit C attached to this Lease, Landlord shall install a supplemental HVAC
unit (“Supplemental HVAC”) and
submeter for use in Tenant’s computer room located in the Premises, subject to
the terms of the Work Letter and this Section. 
The size and design of the supplemental HVAC unit(s) and the manner in
which the Supplemental HVAC units will be
vented and access outside air, if applicable, shall be subject to
Landlord’s prior reasonable written approval. 
Tenant shall be responsible, at its cost, for maintaining and repairing
the Supplemental HVAC unit and submeter to the reasonable satisfaction of
Landlord and the cost of electricity that is consumed by the Supplemental HVAC
as measured by the submeter.  In no
event, however, shall the size of Tenant’s Supplemental HVAC unit exceed five
(5) tons.  Upon expiration or earlier
termination of this Lease, title to the Supplemental HVAC unit and submeter
shall pass to Landlord.

3.                                       Additional Provisions. 
Notwithstanding anything to the contrary contained in the Lease:

A.                                   Permitted Use.  No
portion of the Premises shall be used for any of the following uses:  any pornographic or obscene purposes, any
commercial sex establishment, any pornographic, obscene, nude or semi-nude
performances, modeling, materials, activities, or sexual conduct or any other
use that, as of the time of the execution hereof, has or could reasonably be
expected to have a material adverse effect on the Property or its use, operation
or value.

 5
 

B.                                     Proceeds.

1.                                       Nothing in the Lease shall be deemed to prevent
Proceeds (defined below) from being held and disbursed by any Mortgagee in
accordance with the terms of the applicable Mortgage loan documents.
However, if, in the event of any Casualty or partial Taking, any
obligation of Landlord under the Lease to restore the Premises or the Building
is materially diminished by the operation of the preceding sentence, then
Landlord, as soon as reasonably practicable after the occurrence of such Casualty
or partial Taking, shall provide written notice to Tenant describing such
diminution with reasonably specificity, whereupon Tenant, by written notice to
Landlord delivered within 10 days after receipt of Landlord’s notice,
shall have the right to terminate the Lease effective 10 days after the
date of such termination notice.

2.                                       Nothing in the Lease shall be deemed to entitle
Tenant to receive and retain Proceeds except those that may be specifically
awarded to it in condemnation proceedings because of the Taking of its trade
fixtures and its leasehold improvements which have not become part of the
Property and such business loss as Tenant may specifically and separately
establish.  Nothing in the preceding sentence
shall be deemed to expand any right Tenant may have under the Lease to receive
or retain any Proceeds.

3.                                       As used herein, “Proceeds” means any compensation, awards, proceeds,
damages, claims, insurance recoveries, causes or rights of action (whenever accrued) or payments which Landlord
may receive or to which Landlord may become entitled with respect to the
Property or any part thereof (other than payments received in connection with
any liability or loss of rental value or business interruption insurance) in
connection with any Taking of or any Casualty or other damage or injury to the
Property or any part thereof.

 6

EXHIBIT G

PARKING
AGREEMENT

This Exhibit (the “Parking Agreement”) is attached to and made a part of the Office Lease Agreement (the “Lease”) by and between CA-SHOREBREEZE LIMITED PARTNERSHIP, a Delaware limited
partnership  (“Landlord”) and VERSANT CORPORATION, a California corporation  (“Tenant”) for space in the Building located at 255
Shoreline Drive, Redwood City, California.  Capitalized terms used but not defined herein
shall have the meanings given in the Lease.

1.                                       During the initial Term, and any extension
thereof, Tenant agrees to lease from Landlord and Landlord agrees to lease to
Tenant a total of 22 non-reserved parking spaces and 0 reserved parking spaces
in the parking facility servicing the Building (“Parking
Facility”). During the initial Term, and any extension thereof,
there shall be no charge for such parking spaces.  Tenant may, from time to time request
additional parking spaces, and if Landlord shall provide the same, such parking
spaces shall be provided and used on a month-to-month basis, and otherwise on
the following terms and provisions, and at such prevailing
monthly parking charges as shall be established from time to time.  Such charges, if any, shall be payable in
advance to Landlord or such other entity as designated by Landlord, and shall
be sent concurrent with Tenant’s payment of monthly Base Rent to the address
Landlord designates from time to time. Except
as otherwise set forth herein below, no deductions from such charges, if any, shall be made for days on which
the Parking Facility is not used by Tenant.

2.                                       Tenant shall at all times comply with all
applicable ordinances, rules, regulations, codes, laws, statutes and
requirements of all federal, state, county and municipal governmental bodies or
their subdivisions respecting the use of the Parking Facility.  Landlord reserves the right to adopt, modify
and enforce reasonable rules (“Rules”)
governing the use of the Parking Facility from time to time including any
key-card, sticker or other identification or entrance system and hours of
operation. Landlord may refuse to permit any person who violates such Rules to
park in the Parking Facility, and any violation of the Rules shall subject the
car to removal from the Parking Facility. Tenant shall comply with and
cause its employees to comply with all the Rules as well as all reasonable
additions and amendments thereto.

3.                                       Unless specified to the contrary above, the
parking spaces hereunder shall be provided on a non-designated “first-come,
first-served” basis.  Subject to Tenant’s
rights to the reserved spaces set forth above, if any, Landlord reserves the
right to assign other specific parking spaces, and to reserve other parking
spaces for visitors, small cars, handicapped persons and for other tenants,
guests of tenants or other parties, which assignment and reservation or spaces
may be relocated as determined by Landlord from time to time, and Tenant and
persons designated by Tenant hereunder shall not park in any such location
designated for such assigned or reserved parking spaces.  Tenant acknowledges that the Parking Facility
may be closed entirely or in part in order to make repairs or perform
maintenance services, or to alter, modify, re-stripe or renovate the Parking
Facility, or if required by casualty, strike, condemnation, act of God,
governmental law or requirement or other reason beyond the operator’s
reasonable control; and in such events, Landlord shall refund any prepaid
parking fee hereunder, prorated on a per diem basis.

4.                                       Tenant
shall not store or permit its employees to store any automobiles in the Parking
Facility without the prior written consent of the operator.  Except for emergency repairs, Tenant and its
employees shall not perform any work on any automobiles while located in the
Parking Facility, or on the Property.  If it is necessary for Tenant or its
employees to leave an automobile in the Parking Facility overnight, Tenant
shall provide the operator with prior notice thereof designating the license
plate number and model of such automobile.

5.                                       LANDLORD SHALL NOT BE LIABLE FOR ANY LOSS, INJURY OR DAMAGE TO PERSONS
USING THE PARKING FACILITY OR AUTOMOBILES OR OTHER PROPERTY THEREIN, IT BEING
AGREED THAT, TO THE FULLEST EXTENT PERMITTED BY LAW, THE USE OF THE SPACES
SHALL BE AT THE SOLE RISK OF TENANT AND ITS EMPLOYEES.  WITHOUT LIMITING THE
FOREGOING, TENANT HEREBY VOLUNTARILY RELEASES, DISCHARGES, WAIVES AND
RELINQUISHES ANY AND ALL ACTIONS OR CAUSES OF ACTION FOR PERSONAL INJURY OR
PROPERTY DAMAGE OCCURRING TO TENANT ARISING AS A RESULT OF PARKING IN THE
PARKING FACILITY, OR ANY ACTIVITIES INCIDENTAL THERETO, WHEREVER OR HOWEVER THE
SAME MAY OCCUR, AND

FURTHER AGREES THAT TENANT WILL NOT PROSECUTE ANY
CLAIM FOR PERSONAL INJURY OR PROPERTY DAMAGE AGAINST LANDLORD OR ANY OF THE LANDLORD RELATED PARTIES FOR ANY SAID
CAUSES OF ACTION.  IN ALL EVENTS, TENANT AGREES TO
LOOK FIRST TO ITS INSURANCE CARRIER AND TO REQUIRE THAT TENANT’S EMPLOYEES LOOK
FIRST TO THEIR RESPECTIVE INSURANCE CARRIERS FOR PAYMENT OF ANY LOSSES
SUSTAINED IN CONNECTION WITH ANY USE OF THE PARKING FACILITY.  TENANT HEREBY WAIVES ON BEHALF OF ITS
INSURANCE CARRIERS ALL RIGHTS OF SUBROGATION AGAINST LANDLORD OR LANDLORD
RELATED PARTIES.   Notwithstanding the foregoing, but
except as provided in Section 15 of the Lease (Subrogation) and Section 20 of
the Lease (Limitation of Liability) to the contrary, Tenant shall not be
required to waive any claims against Landlord (other than for loss or damage to
Tenant’s business) where such loss or damage is due to the negligence or
willful misconduct of Landlord or any Landlord Related Parties.

6.                                       Tenant
shall not assign its rights under this Parking Agreement or sublease any of the
parking spaces without the consent of Landlord, except in connection with an
assignment or sublease pursuant to the terms and conditions set forth in
Section 11 of this Lease.  Landlord shall
have the right to terminate this Parking Agreement with respect to any parking
spaces that Tenant desires to sublet or assign its rights thereto, except in
connection with an assignment or sublease pursuant to the terms and conditions
set forth in Section 11 of this Lease.

7.                                       Landlord hereby reserves the right to enter into a
management agreement or lease with another entity for the operation of the
Parking Facility (“Operator”).  In such event, Tenant, upon request of
Landlord, shall enter into a parking agreement upon substantially the same
terms hereunder with the Operator and pay the Operator the monthly charge
established hereunder, and Landlord shall have no liability for claims arising
through acts or omissions of the Operator. 
It is understood and agreed that the identity of the Operator may change
from time to time during the Term.  In
connection therewith, any parking lease or agreement entered into between
Tenant and any Operator shall be freely assignable by such Operator or any
successors thereto.Exhibit
10.1

 

PURCHASE AGREEMENT

by and among

SUNDAY
RIVER SKIWAY CORPORATION

SUGARLOAF
MOUNTAIN CORPORATION

S-K-I
LTD.

AMERICAN SKIING COMPANY

and

BOYNE USA, INC.

June 4, 2007

 

TABLE OF CONTENTS

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE I

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CERTAIN
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  Certain Definitions

  	
  1

  
	
  1.2

  	
  Other Capitalized Terms

  	
  9

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE II

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PURCHASE PRICE
  AND PAYMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  Sale and Purchase of Stock

  	
  11

  
	
  2.2

  	
  Payment at the Closing, Subsequent Payment

  	
  11

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE III

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  REPRESENTATIONS
  AND WARRANTIES OF

  	
   

  
	
   

  	
  THE SELLERS

  	
   

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  Organization and Qualification

  	
  11

  
	
  3.2

  	
  Title to the Stock

  	
  12

  
	
  3.3

  	
  Subsidiaries

  	
  12

  
	
  3.4

  	
  Binding Obligation

  	
  12

  
	
  3.5

  	
  No Default or Conflicts

  	
  13

  
	
  3.6

  	
  No Governmental Authorization or Consent Required

  	
  13

  
	
  3.7

  	
  Financial Statements

  	
  14

  
	
  3.8

  	
  Powers of Attorney

  	
  14

  
	
  3.9

  	
  Brokers

  	
  14

  
	
  3.10

  	
  Compliance with Laws

  	
  14

  
	
  3.11

  	
  Insurance

  	
  15

  
	
  3.12

  	
  Litigation

  	
  15

  
	
  3.13

  	
  Approvals

  	
  15

  
	
  3.14

  	
  Labor Matters

  	
  16

  
	
  3.15

  	
  Employee Benefit Plans

  	
  16

  
	
  3.16

  	
  Real Property

  	
  19

  
	
  3.17

  	
  Tax Matters

  	
  22

  
	
  3.18

  	
  Contracts and Commitments

  	
  23

  
	
  3.19

  	
  Environmental Matters

  	
  25

  
	
  3.20

  	
  Intellectual Property

  	
  27

  
	
  3.21

  	
  Related Persons

  	
  28

  
	
  3.22

  	
  Condition of and Title to Assets

  	
  29

  

 

 i
 

 

	
  3.23

  	
  Absence of Certain Changes

  	
  30

  
	
  3.24

  	
  Water Rights

  	
  30

  
	
  3.25

  	
  No Clubs

  	
  30

  
	
  3.26

  	
  Books and Records

  	
  30

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE IV

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  REPRESENTATIONS
  AND

  	
   

  
	
   

  	
  WARRANTIES OF
  THE BUYER

  	
   

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Organization of the Buyer

  	
  31

  
	
  4.2

  	
  Power and Authority

  	
  31

  
	
  4.3

  	
  No Conflicts

  	
  31

  
	
  4.4

  	
  Purchase for Investment

  	
  32

  
	
  4.5

  	
  Litigation

  	
  32

  
	
  4.6

  	
  Brokers

  	
  32

  
	
  4.7

  	
  Availability of Funds

  	
  32

  
	
  4.8

  	
  No Divestitures

  	
  32

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE V

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EMPLOYEES AND
  EMPLOYEE-RELATED MATTERS

  	
   

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  Employment Matters

  	
  33

  
	
  5.2

  	
  Benefit Plans

  	
  33

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE VI

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CLOSING

  	
   

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Closing Date

  	
  34

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE VII

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CONDITIONS TO
  OBLIGATIONS OF

  	
   

  
	
   

  	
  THE BUYER TO
  CONSUMMATE THE TRANSACTION

  	
   

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  Representations and Warranties; Compliance with
  Covenants

  	
  34

  
	
  7.2

  	
  No Material Adverse Effect

  	
  34

  
	
  7.3

  	
  No Injunction

  	
  34

  
	
  7.4

  	
  Approvals

  	
  35

  
	
  7.5

  	
  Release of Liens

  	
  35

  
	
  7.6

  	
  Assignment

  	
  35

  
	
  7.7

  	
  Related Documents

  	
  35

  
	
  7.8

  	
  FIRPTA

  	
  35

  
	
  7.9

  	
  Resignations

  	
  35

  
	
  7.10

  	
  Settlement of Accounts

  	
  35

  
	
  7.11

  	
  Specimen Title Policies

  	
  35

  

 

 ii
 

 

	
  7.12

  	
  Approval of Documentation

  	
  35

  
	
  7.13

  	
  Opinion and Certificates

  	
  36

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE VIII

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CONDITIONS TO
  OBLIGATIONS OF

  	
   

  
	
   

  	
  THE SELLERS TO
  CONSUMMATE THE TRANSACTION

  	
   

  
	
   

  	
   

  	
   

  
	
  8.1

  	
  Representations and Warranties; Compliance with
  Covenants

  	
  36

  
	
  8.2

  	
  No Injunction

  	
  36

  
	
  8.3

  	
  Approvals

  	
  37

  
	
  8.4

  	
  Settlement of Accounts

  	
  37

  
	
  8.5

  	
  Related Documents

  	
  37

  
	
  8.6

  	
  Letters of Credit

  	
  37

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE IX

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  9.1

  	
  Regulatory Filings, Etc.

  	
  37

  
	
  9.2

  	
  Injunctions

  	
  38

  
	
  9.3

  	
  Access to Information

  	
  38

  
	
  9.4

  	
  No Extraordinary Actions by the Sellers

  	
  39

  
	
  9.5

  	
  Commercially Reasonable Efforts; Further Assurances

  	
  41

  
	
  9.6

  	
  Use of Names; Name Change

  	
  43

  
	
  9.7

  	
  Confidentiality; Publicity

  	
  44

  
	
  9.8

  	
  Transition

  	
  45

  
	
  9.9

  	
  Access to Records After the Closing

  	
  45

  
	
  9.10

  	
  No Employee Solicitation

  	
  45

  
	
  9.11

  	
  Interim Operations of the Buyer

  	
  45

  
	
  9.12

  	
  No Solicitation

  	
  46

  
	
  9.13

  	
  Intercompany Guarantees

  	
  46

  
	
  9.14

  	
  Third Party Contracts and Cross Default Provisions

  	
  47

  
	
  9.15

  	
  Patriot Act

  	
  48

  
	
  9.16

  	
  Change in Control Bonuses

  	
  48

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE X

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SURVIVAL AND
  INDEMNIFICATION

  	
   

  
	
   

  	
   

  	
   

  
	
  10.1

  	
  Survival

  	
  48

  
	
  10.2

  	
  Indemnification by Sellers, Jointly and Severally

  	
  48

  
	
  10.3

  	
  Indemnification by the Buyer

  	
  49

  
	
  10.4

  	
  Limitations on Indemnification

  	
  49

  
	
  10.5

  	
  Right to Indemnification not Affected by Knowledge

  	
  50

  

 

 iii
 

 

	
  

  	
  ARTICLE XI

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TAX MATTERS

  	
   

  
	
   

  	
   

  	
   

  
	
  11.1

  	
  Tax Indemnification

  	
  51

  
	
  11.2

  	
  Tax Refunds

  	
  52

  
	
  11.3

  	
  Preparation and Filing of Tax Returns and Payment of
  Taxes

  	
  52

  
	
  11.4

  	
  Tax Cooperation

  	
  53

  
	
  11.5

  	
  Tax Audits

  	
  54

  
	
  11.6

  	
  Tax Treatment of Indemnification Payment

  	
  56

  
	
  11.7

  	
  338(h)(10) Election

  	
  56

  
	
  11.8

  	
  Tax Sharing Agreements

  	
  57

  
	
  11.9

  	
  Survival of Obligations

  	
  57

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE XII

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TERMINATION

  	
   

  
	
   

  	
   

  	
   

  
	
  12.1

  	
  Termination

  	
  57

  
	
  12.2

  	
  Other Agreements; Material To Be Returned

  	
  58

  
	
  12.3

  	
  Effect of Termination

  	
  59

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE XIII

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  13.1

  	
  Complete Agreement

  	
  59

  
	
  13.2

  	
  Waiver, Discharge, etc.

  	
  59

  
	
  13.3

  	
  Fees and Expenses

  	
  59

  
	
  13.4

  	
  Amendments

  	
  60

  
	
  13.5

  	
  Notices

  	
  60

  
	
  13.6

  	
  Venue

  	
  61

  
	
  13.7

  	
  GOVERNING LAW; WAIVER OF JURY TRIAL

  	
  61

  
	
  13.8

  	
  Headings

  	
  61

  
	
  13.9

  	
  Interpretation

  	
  61

  
	
  13.10

  	
  Exhibits and Schedules

  	
  61

  
	
  13.11

  	
  Successors

  	
  61

  
	
  13.12

  	
  Remedies

  	
  62

  
	
  13.13

  	
  Third Parties

  	
  62

  
	
  13.14

  	
  Severability

  	
  62

  
	
  13.15

  	
  Counterparts; Effectiveness

  	
  62

  
	
  13.16

  	
  NO OTHER REPRESENTATIONS

  	
  62

  
	
  13.17

  	
  CONDITION OF THE BUSINESS

  	
  63

  
	
  13.18

  	
  NO OTHER REPRESENTATIONS

  	
  63

  
	
  13.19

  	
  INDEPENDENT INVESTIGATION

  	
  63

  

 

 iv
 

EXHIBITS

	
  A

  	
  -

  	
  CORIS and WRMS License Agreement

  
	
  B

  	
  -

  	
  Specimen Title Policies

  
	
  C

  	
  -

  	
  Transition Services Agreement

  
	
  D

  	
  -

  	
  Escrow Agreement

  

 

 v

PURCHASE AGREEMENT

PURCHASE AGREEMENT, dated as of June 4, 2007 (this “Agreement”), by and among SUNDAY RIVER SKIWAY
CORPORATION, a Maine corporation (“SRSC”), SUGARLOAF MOUNTAIN
CORPORATION, a Maine corporation (“SMC”), S-K-I LTD., a Delaware
corporation (“SKI”), AMERICAN SKIING COMPANY, a Delaware corporation (“ASC”, and together with SKI, the “Sellers”), and BOYNE USA, INC., a Michigan
corporation (“Buyer”), for the sale and purchase of all of the
outstanding capital stock in SRSC, SMC, SRL and BBD (the “Stock”).

W I T N E S S E T H:

WHEREAS, ASC owns all of the Stock of SRSC, SRL and
BBD, and SKI owns all of the Stock of SMC;

WHEREAS, ASC and SKI wish to sell to the Buyer, and
the Buyer wishes to purchase from ASC and SKI, all of such Stock upon the terms
and subject to the conditions of this Agreement;

NOW, THEREFORE, in consideration of the premises and
the mutual promises and covenants contained herein, the parties hereby agree as
follows:

ARTICLE I

CERTAIN DEFINITIONS

1.1                                 Certain
Definitions.  As used in this
Agreement, unless the context requires otherwise, the following terms shall
have the meanings indicated:

“Affiliate” of
any specified Person means any other Person, directly or indirectly
Controlling, Controlled by or under common Control with the specified Person.

“Approvals”
means franchises, licenses, permits, certificates of occupancy and other
required approvals, authorizations and consents.

“Base Balance Sheet”
means the balance sheet of the Companies at April 29, 2007 included in the
Interim Financial Statements.

“Base Balance Sheet Date”
means April 29, 2007.

“BBD” means Blunder Bay Development, Inc., a
Maine corporation.

“Business Day”
means any day other than a Saturday, Sunday or other day on which commercial
banks in the State of New York are authorized or required by law or executive
order to close.

“Capital Expenditures”
means the aggregate of all expenditures incurred by a Person with respect to
and/or in connection with either (i) acquisition or leasing (pursuant to a
capital lease) of fixed or capital assets or (ii) additions, improvements,
replacements and/or repairs to real property, existing buildings and
improvements, and/or equipment and all other expenditures that should be
capitalized under GAAP on a balance sheet.

“Capital Lease”
means any capital lease listed on Section 1.1(a) of the Seller
Disclosure Letter.

“Closing” means
the closing of the transactions contemplated by this Agreement.

“Closing Date”
means the date on which the Closing actually occurs.

“Code” means the
Internal Revenue Code of 1986, as amended.

“Companies” means SRSC, SMC, BBD and SRL.

“Confidentiality Agreement”
means that certain letter agreement, dated March 20, 2006, by and between Buyer
and ASC.

“Contamination” means the actual or threatened
presence of, or Release at, in, on, under, from or to the environment of any
Hazardous Substance, excepting the routine storage, handling, management and
use of Hazardous Substances from time to time in the ordinary course of
business in strict compliance with Environmental Laws and with good commercial
practice.

“Contract” means
any loan or credit agreement, note, bond, mortgage, indenture, deed of trust,
license agreement, franchise, contract, agreement, Lease (including any Real
Property Lease), instrument or guarantee (including any amendments,
modifications, extensions or replacements thereof), option agreement or
agreement conferring similar rights.

 2
 

“Control” means
the power to direct or cause the direction of the management and policies of
another Person, whether through the ownership of securities, by contract or
otherwise.

“CORIS and WRMS License
Agreements” mean duly executed license agreements in favor of each
of SRSC and SMC substantially in the forms attached as Exhibit A hereto.

“Environmental Claims” means, with respect to
either Company and its Subsidiaries, and the Real Property, any and all claims,
demands, actions and/or proceedings brought or instigated by any Governmental
Agency or other third party in connection with any Environmental Law (including
without limitation civil, criminal and/or administrative proceedings), whether
or not seeking costs, damages, penalties or expenses, and/or any and all third
party claims, actions, demands or proceedings (including without limitation
those based on negligence, trespass, strict liability, nuisance, or toxic tort)
due to any actual or threatened Release of a Hazardous Substance, and whether
or not seeking costs, damages, penalties or expenses (collectively, a “Demand”),
including, without limitation, (a) any and all Demands for enforcement,
cleanup, removal, response, remedial or other actions or damages pursuant to
Environmental Laws and (b) any and all Demands seeking damages, contribution,
indemnification, cost recovery, compensation or injunctive relief for
Environmental Liabilities resulting from a Release or otherwise arising from an
Environmental Condition.

“Environmental Conditions” means any and all
conditions, including regulatory compliance, relating to soil, surface water,
groundwater, or air, Releases and/or Contamination, whether on or migrating
from the Real Property in actual or threatened violation of applicable
standards of Environmental Laws in effect as of the date of this Agreement.

“Environmental Law” means all federal, state
and local Laws pertaining or relating to or purporting to relate to the
handling, use, presence, disposal, Release or threatened Release of any
Hazardous Substance, noise, wetlands, Contamination or any injury or threat of
injury to persons or property, the protection of the environment, natural
resources and human health and safety, including, without limitation: (a) the
Comprehensive Environmental Response, Compensation and Liability Act of 1980,
as amended (“CERCLA”); (b) the Solid Waste Disposal Act, as amended; (c)
the Clean Air Act, as amended; (d) the Clean Water Act, as amended and (e) the
Toxic Substances Control Act, as amended, as each of the foregoing are in
effect on the date of this Agreement, and including analogous applicable Laws
of the State of Maine pertaining to the environment, natural resources and
employee health and safety.

“Environmental Liability” means any and all
Liabilities, Environmental Claims and/or Environmental Conditions which have,
or would reasonably be expected to have, a Material Adverse Effect on a Resort,
individually or in the aggregate, including arising in connection with any
Environmental Claim by any private Person or Governmental Agency.

 3
 

“ERISA” means
the Employee Retirement Income Security Act of 1974, as amended.

“ERISA Affiliate”
means any entity which is (or at any relevant time was) a member of a “controlled
group of corporations” with, under “common control” with, or a member of an “affiliated
service group” with any Company as defined in Section 414(b), (c), (m) or (o)
of the Code, or under “common control” with any Company, within the meaning of
Section 4001(b)(1) of ERISA.

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and
regulations thereunder.

“Financial Statements”
means the unaudited balance sheets and statements of operations, stockholder’s
equity and cash flows of each Company and its Subsidiaries as of and for the
fiscal years ended July 31, 2005 and July 30, 2006, as included in the audited
consolidated financial statements of ASC for such periods.

“GAAP” means
United States generally accepted accounting principles in effect at the time in
question.

“Governmental Agency”
means any federal, state or local governmental body or other regulatory or
administrative agency or commission.

“Hazardous Substance” means (a) any hazardous
materials, hazardous wastes, solid wastes, hazardous substances, toxic wastes
and toxic substances as those or similar terms are listed in, defined by and/or
regulated under any Environmental Laws; (b) asbestos or asbestos containing
materials, urea-formaldehyde, lead-containing plumbing or paint, or radon; (c)
polychlorinated biphenyls (PCBs) or PCB-containing materials or fluids; (d) any
other hazardous, radioactive or toxic substance, or contaminant regulated under
any Environmental Law; and (e) any petroleum, gasoline, oil, petroleum
hydrocarbons, petroleum products (or by-products), crude oil and any
constituents, additives, fractions or derivatives thereof.

“Hotels” means
the Sugarloaf Grand Summit Hotel, located at the SMC Resort, and the Summit
Hotel and the Jordan Grand Hotel, located at the SRSC Resort.

“HSR Act” means
the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

“Indebtedness”
means (i) any liability, contingent or otherwise, of any Company (a) for
borrowed money (whether or not the recourse of the lender is to the whole of
the assets of such

 4
 

Company or only to a
portion thereof) or (b) evidenced by a note, debenture or similar instrument or
letter of credit (including a purchase money obligation or other obligation
relating to the deferred purchase price of property); (ii) any liability of
others of the kind described in the preceding clause (i) which such Company has
guaranteed or which is otherwise its legal liability; (iii) any monetary
obligation secured by a lien to which the property or assets of such Company is
subject, whether or not the obligations secured thereby shall have been assumed
by it or shall otherwise be its legal liability, but not including Liens of the
nature described in clauses (ii) and (iii) of the definition of “Permitted
Exceptions”; and (iv) all capitalized lease obligations of such Company.  In no event shall Indebtedness include trade
payables or operating lease obligations, provided the same are properly
disclosed in the Financial Statements or included in the Interim Financial
Statements or incurred in the ordinary course of business after the Base
Balance Sheet Date.

“Intellectual Property”
means all intellectual property and industrial property rights of any kind or
nature, including all U.S. and foreign (i) patents, patent applications, patent
disclosures, and all related continuations, continuations-in-part, divisionals,
reissues, re-examinations, substitutions, and extensions thereof, (ii)
trademarks, service marks, names, corporate names, trade names, domain names,
logos, slogans, trade dress, and other similar designations of source or
origin, together with the goodwill symbolized by any of the foregoing, (iii)
copyrights and copyrightable subject matter, (iv) rights of publicity, (v)
computer programs (whether in source code, object code, or other form),
algorithms, databases, compilations and data, technology supporting the
foregoing, and all documentation, including user manuals and training
materials, related to any of the foregoing (“Software”), (vi) trade secrets and
all other confidential information, know-how, inventions, proprietary
processes, formulae, models, and methodologies, (vii) rights of privacy and
rights to personal information, (viii) telephone numbers and Internet protocol
addresses, and (ix) all rights in the foregoing and in other similar intangible
assets, (x) all applications and registrations for the foregoing, and (xi) all
rights and remedies against past, present, and future infringement,
misappropriation, or other violation thereof.

“Interim Financial
Statements” means the unaudited balance sheet and statements of
operations, stockholder’s equity and cash flows as of and for the nine (9)
month period ended April 29, 2007.

“Judgment” means
any judgment, ruling, writ, injunction, order, arbitral award or decree issued
by a court of competent jurisdiction.

“Knowledge of the Companies”
(and any similar phrases as they relate to the Companies) means the existing
actual knowledge of Stan Hansen, B.J. Fair, Betsy Wallace, John Diller, Dana
Bullen and Foster Stewart.

 5
 

“Law” means any
Judgment, law, statute, rule or regulation of any Governmental Agency.

“Lease” means
any lease, sublease, license, or similar occupancy right in real or personal
property.

“Liabilities” means losses, damages,
deficiencies, obligations, claims, demands, judgments, awards, interest, fines,
penalties or settlements of any nature or kind, including all costs and
expenses, whether accrued or unaccrued, actual or contingent, known or unknown,
foreseen or unforeseen, asserted or unasserted, liquidated or unliquidated, and
due or to become due, and whether or not required to be reflected on a balance
sheet prepared in accordance with GAAP.

“Lien” means any
lien, encumbrance, security interest (whether or not the subject of a UCC
financing statement), charge, mortgage, UCC financing statement, right of first
offer, right of first refusal, collateral assignment or pledge of any nature
whatsoever which encumbers or affects the Stock, any Company and/or any of any
Company’s assets.

“Litigation”
means any arbitration, action, suit, claim, proceeding, investigation or
written inquiry by or before any Governmental Agency, court or arbitrator.

“Material Adverse Effect”
means a material adverse effect upon (i) the results of operations, properties,
assets, liabilities or financial condition of the business of either Resort,
(ii) the valid, binding effect or enforceability of this Agreement or any
Related Document, or (iii) the ability of either Seller to perform its
obligations under this Agreement; provided, however, that “Material
Adverse Effect” shall not include any change, effect, condition, event or
circumstance (collectively, “Events”) arising out of, or attributable to
(i) general economic conditions, changes, effects, events or circumstances,
except to the extent such Events disproportionately affect such Resort, (ii)
changes, effects, conditions, events or circumstances that generally affect the
ski, resort or hospitality industries, except to the extent such Events
disproportionately affect such Resort, (iii) in the case of either Resort, any
effect which the financial condition of ASC may have on the terms and
conditions on which inventory or other assets are purchased by such Resort
(provided that such effect will be taken into account for purposes of this
definition of Material Adverse Effect only to the extent such effect would
reasonably be expected to have a material adverse effect (taking into account
the reasonably expected duration of said effect) on such Resort following the
Closing), (iv) any acts of terrorism or acts of war, whether occurring within
or outside the United States, or any effect of any such acts on general
economic or other conditions, except to the extent such Events
disproportionately affect such Resort, (v) any climatic or weather condition,
except to the extent of any damage or destruction of the assets of such Resort
which has a material and adverse effect on such Resort and which is caused by
such damage or destruction, (vi) changes arising from the consummation of the
transactions contemplated hereby or the announcement of the execution of this
Agreement.

 6
 

“Materials of Environmental
Concern” means pollutants, contaminants, wastes, toxic substances,
hazardous substances, radioactive materials, asbestos, petroleum and petroleum
products.

“Mountainside” means Mountainside, a Maine
corporation and wholly owned subsidiary of SMC.

“Multiemployer Plan”
means an employee pension benefit plan, as defined in Section 3(37) of ERISA,
to which the Sellers or any of their ERISA Affiliates contribute, have
contributed, are obligated to contribute or have been obligated to contribute.

“Outstanding Indebtedness”
means the aggregate outstanding principal balance of, and accrued and unpaid
interest on, all Indebtedness of the Companies, calculated as of the close of
business on the day immediately preceding the Closing Date, but not including
the Capital Leases or the ASC-Level Financings.

“Permitted Exceptions”
means (i) Liens disclosed on any balance sheet included in the Financial
Statements or Interim Financial Statements or securing liabilities reflected
therein (provided that Liens securing the financings described in Section
1.1(b) of the Seller Disclosure Letter (the “ASC-Level
Financings”) shall not be Permitted Exceptions); (ii) Liens for
taxes, assessments and similar charges that are not yet due and payable; (iii)
mechanic’s, materialman’s, carrier’s, repairer’s and other similar Liens imposed
by applicable Law arising or incurred in the ordinary course of business; (iv)
easements, rights-of-way, restrictions and other similar charges or
encumbrances the existence of which do not materially adversely detract from
the value of the property affected by such encumbrances(s) and do not
materially interfere with the operation of the Companies’ or any of their
respective Subsidiaries’ respective businesses as currently conducted; (v)
Liens or other encumbrances that would be disclosed by an accurate survey of
the Real Property provided that the same do not materially adversely detract
from the value of the property affected by such encumbrance(s) and do not
materially interfere with the operation of the Companies’ or any of their
respective Subsidiaries’ respective businesses as currently conducted; (vi)
applicable zoning regulations and ordinances, and building, health and other
applicable laws or ordinances; and (vii) any exceptions to title set forth in
any subsection of Section 3.16 of the Seller Disclosure Letter.

“Person” means
an individual, a corporation, a limited liability company, a partnership, an
unincorporated association, a joint venture, a Governmental Agency or any other
entity.

“Prime Rate” means the prime rate of Citibank
N.A., in effect on the applicable date.

 7
 

“Related Documents”
means (i) the CORIS and WRMS License Agreements, (ii) the Transition Services
Agreement, and (iii) all other agreements, instruments and certificates
described in or contemplated by this Agreement or reasonably requested by
either the Buyer or the Sellers that are to be executed and delivered in
connection with the transactions contemplated hereby, including, without
limitation, good standing certificates, incumbency certificates and secretary
certificates for the parties and Subsidiaries of the Companies.

“Release” means any actual or threatened
presence in, or release, escape, spill, emission, discharge, leaking, pumping,
injection, deposit, disposal, dispersal, leaching or migration into, on, at,
from or under the indoor or outdoor environment (including, without limitation,
ambient air, surface water, groundwater and surface or subsurface strata) of
Hazardous Substances, whether intentional or unintentional, including in
violation of Environmental Laws.

“Resorts” means
the mountain resorts operated by SMC known as Sugarloaf Resort located in
Carrabassett Valley, Maine and by SRSC known as Sunday River Resort located in
Newry, Maine.

“Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations
thereunder.

“Seller Disclosure Letter”
means the disclosure letter prepared by the Sellers, dated as of the date
hereof, and delivered by the Sellers to the Buyer.

“Specimen Title Policies” shall mean the
specimen owner title insurance policies issued by the Title Company in the form
attached hereto as Exhibit B.

“SRL” means Sunday River Ltd., a Maine
corporation.

“Subsidiary” of
any specified Person means any other Person (i) as to which more than 50% of
its outstanding shares or securities representing the right to vote for the
election of directors or other managing authority of such other Person are
owned or Controlled, directly or indirectly, by such specified Person, but such
other Person shall be deemed to be a Subsidiary only so long as such ownership
or Control exists, or (ii) which does not have outstanding shares or securities
with such right to vote, as may be the case in a partnership, limited liability
company, joint venture or unincorporated association, but more than 50% of
whose ownership interest representing the right to make the decisions for such
other Person is owned or Controlled, directly or indirectly, by such specified
Person, but such other Person shall be deemed to be a Subsidiary only so long
as such ownership or Control exists.

 8
 

“Taxes” means
all taxes, charges, fees, duties or levies, imposed by any federal, state or
local taxing authority, including federal, state or local income, profits,
franchise, gross receipts, environmental, customs duty, severances, stamp,
payroll, sales, use, intangibles, employment, unemployment, disability,
property, withholding, backup withholding, excise, production, occupation,
service, service use, leasing and lease use, ad valorem, value added,
occupancy, transfer, and other taxes, of any nature whatsoever, together with
all interest, penalties and additions imposed with respect to such amounts and
any interest in respect of such penalties and additions.

“Tax Returns”
means all returns and reports, information returns, or payee statements
(including, elections, declarations, filings, forms, statements, disclosures,
schedules, estimates and information returns) required to be supplied to a Tax
authority relating to Taxes.

“Title Company” means First American Title
Insurance Company.

“Tramway Authorities” means the Board of
Elevator and Tramway Safety, the State of Maine.

“WARN Act” means
the Worker Adjustment and Retraining Notification Act, as amended.

“Week” means a
period of seven days ending on Sunday at 11:59 p.m. Mountain Time.

1.2           Other Capitalized Terms.  The following capitalized terms are defined
in the following Sections of this Agreement:

	
  Term

  	
   

  	
  Section

  
	
   

  	
   

  	
   

  
	
  Agreement

  	
   

  	
  Preamble

  
	
  ASC

  	
   

  	
  Preamble

  
	
  ASC-Level
  Financings

  	
   

  	
  1.1

  
	
  Assignments

  	
   

  	
  7.6

  
	
  Base Balance
  Sheet

  	
   

  	
  1.1

  
	
  Base Balance
  Sheet Date

  	
   

  	
  1.1

  
	
  Buyer

  	
   

  	
  Preamble

  
	
  Buyer
  Indemnitees

  	
   

  	
  10.2

  
	
  Buyer Trade
  Names

  	
   

  	
  9.6(b)

  
	
  Capital Program

  	
   

  	
  3.7

  
	
  Companies

  	
   

  	
  1.1

  
	
  Company Plans

  	
   

  	
  3.15(a)

  
	
  Company Subject
  Matter

  	
   

  	
  9.3

  
	
  Contest

  	
   

  	
  11.5(b)

  

 

 9
 

 

	
  Term

  	
   

  	
  Section

  
	
   

  	
   

  	
   

  
	
  Current Plan Year

  	
   

  	
  5.2(b)

  
	
  Employees

  	
   

  	
  5.1

  
	
  Enforceability
  Exceptions

  	
   

  	
  3.4

  
	
  Escrow Agent

  	
   

  	
  10.6

  
	
  Escrow Agreement

  	
   

  	
  10.6

  
	
  FCC

  	
   

  	
  3.6

  
	
  Indemnifiable
  Losses

  	
   

  	
  10.2

  
	
  Indemnity Escrow
  Agreement

  	
   

  	
  10.6

  
	
  Indemnity Escrow
  Amount

  	
   

  	
  10.6

  
	
  Initial Purchase
  Price

  	
   

  	
  2.1

  
	
  Insurance
  Policies

  	
   

  	
  3.11(a)

  
	
  Intellectual
  Property

  	
   

  	
  1.1

  
	
  Interim
  Financial Statements

  	
   

  	
  1.1

  
	
  Interim Period

  	
   

  	
  11.1(a)

  
	
  Leased Real
  Property

  	
   

  	
  3.16(a)

  
	
  Nonqualified
  Deferred Compensation Plan

  	
   

  	
  3.15(j)

  
	
  Other ASC
  Resorts

  	
   

  	
  5.1

  
	
  Owned Real
  Property

  	
   

  	
  3.16(a)

  
	
  Plans

  	
   

  	
  3.15(a)

  
	
  Pre-Closing
  Periods

  	
   

  	
  11.1(a)

  
	
  Purchase Price

  	
   

  	
  2.1

  
	
  Real Property

  	
   

  	
  3.16(a)

  
	
  Real Property
  Leases

  	
   

  	
  3.16(a)

  
	
  Representatives

  	
   

  	
  9.3

  
	
  Resorts

  	
   

  	
  1.1

  
	
  SEC

  	
   

  	
  9.4(e)

  
	
  Section
  338(h)(10) Election

  	
   

  	
  11.7(a)

  
	
  Seller
  Indemnitees

  	
   

  	
  10.3

  
	
  Sellers

  	
   

  	
  Preamble

  
	
  Seller Trade
  Names

  	
   

  	
  9.6(a)

  
	
  Software

  	
   

  	
  1.1

  
	
  Stock

  	
   

  	
  Preamble

  
	
  Straddle Contest

  	
   

  	
  11.5(c)

  
	
  Tax Indemnifying
  Party

  	
   

  	
  11.1(a)

  
	
  Tax Notice

  	
   

  	
  11.5(a)

  
	
  Tempest
  Agreement

  	
   

  	
  2.1

  
	
  Transition
  Services Agreement

  	
   

  	
  9.5(1)

  
	
  Unresolved
  Claims

  	
   

  	
  10.6

  

 

 10
 

ARTICLE II

PURCHASE PRICE AND PAYMENT

2.1                                 Sale
and Purchase of Stock.  At the
Closing, upon the terms and subject to the conditions of this Agreement, ASC
and SKI shall sell to the Buyer, and the Buyer shall purchase from ASC and SKI,
the Stock.  The aggregate purchase price
for the Stock shall be (i) $76,500,000 (the “Initial Purchase Price”), plus
(ii) the assignment by SRSC to ASC of all rights to receive any amounts (up to
$500,000) that become payable to SRSC pursuant to Section 6(a) of the Short
Form Purchase and Sale Agreement (the “Tempest Agreement”), dated as of January
18, 2006, between SRSC and Fort Point Real Estate Company, Inc. (the “Purchase
Price”).  In addition, at the Closing,
Buyer shall reimburse Seller (a) the amount actually expended prior to the
Closing Date by ASC or its Affiliates with respect to the items described on
the 2007-08 Capital Expenditure Plan for the Resorts pursuant to Section
3.7(b) of the Seller Disclosure Letter, plus (b) any amounts paid by ASC or
its Affiliates subsequent to the Base Balance Sheet Date and prior to the
Closing Date as prepayments under the equipment leases for the snow-grooming
equipment located at the Resorts and listed on Section 2.1 of the Seller
Disclosure Letter.  At the Closing, the
Buyer shall cause SRSC to assign to ASC the rights described in clause (ii)
above, as well as the mortgage securing the performance of such obligations, by
an instrument or instruments reasonably satisfactory to ASC.  ASC shall reassign to Buyer such mortgage
upon receipt by ASC of the payment contemplated by clause (ii) above.

2.2                                 Payment
at the Closing, Subsequent Payment. 
At the Closing, the Buyer shall (subject to Section 10.6 hereof) pay the
Initial Purchase Price and the reimbursement contemplated by Section 2.1 hereof
by wire transfer of immediately available funds to ASC.  The balance of the Purchase Price shall be
paid by wire transfer to ASC of immediately available funds by Fort Point
pursuant to the terms of the Tempest Agreement.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF

THE SELLERS

The Sellers jointly and severally represent and
warrant to the Buyer as follows:

3.1                                 Organization
and Qualification.

(a)                                  Each Company has previously
delivered to or made available to the Buyer, prior to the date hereof, a complete
and correct copy of: the Certificate of Incorporation and bylaws (or similar
organizational documents) of such Company and each Subsidiary, as each of the
same may have been amended, each of which is in full force and effect.  Each of SMC, SRSC, SRL, BBD, and Mountainside
is a corporation duly formed, validly existing and in good standing under the
laws of the State of Maine, and each has all requisite power and authority to

 11
 

own,
lease and operate its properties and to carry on its business as presently
owned or conducted.

(b)                                 Each of SKI and ASC has previously
delivered to or made available to the Buyer, prior to the date hereof, complete
and correct copies of its Certificate of Incorporation and bylaws, as each of
the same may have been amended, each of which is in full force and effect.  Each of SKI and ASC is a corporation duly
formed, validly existing and in good standing under the laws of Delaware and
has all requisite power and authority to own, lease and operate its properties
and carry on its business as presently owned or conducted; provided, however,
that no representation is made as to the qualification of ASC or SKI in any
jurisdiction other than its state of incorporation.

3.2                                 Title
to the Stock.  ASC owns, and as of
the Closing Date will own, beneficially and of record, free and clear of any
Lien with full right, power and authority to transfer, convey and deliver, the
SRSC, SRL and BBD Stock, and SKI owns, and as of the Closing Date, will own,
beneficially and of record, free and clear of any Lien with full right, power
and authority to transfer, convey and deliver, the SMC Stock, and, upon
delivery of and payment for the Stock at the Closing as herein provided, ASC
and SKI, as applicable, will convey to the Buyer good and valid title thereto,
free and clear of any Lien.  The Stock
consists of all of the issued and outstanding capital stock in each Company, as
the same is set forth in Section 3.2 of the Seller Disclosure Letter.  Except for the rights of Buyer under this
Agreement, there is no outstanding right, warrant, subscription, call,
preemptive right, option or other agreement or outstanding offer of any kind to
sell, purchase, encumber or otherwise convey, transfer, encumber or dispose of
any right, title and/or interest in and to the Stock and there is no
outstanding debt or security which is convertible into same, and no other
Person has any legal, beneficial or equitable right, title or interest in
and/or to the Stock.  Upon consummation
of the transactions contemplated hereby, Buyer will own all of the SRSC, SRL,
BBD and SMC Stock free and clear of all Liens (other than those created by or
with the consent of Buyer).  There are no
voting trusts, proxies, or other agreements or understandings with respect to
the voting of the Stock.

3.3                                 Subsidiaries.  Except as set forth on Section 3.3 of
the Seller Disclosure Letter, which sets forth the number and type of
outstanding equity securities of each Subsidiary and a list of the holders
thereof, none of the Companies has any Subsidiaries and does not directly or
indirectly own or have any investment in the capital stock of, or other
propriety interest in, any Person.  There
is no outstanding right, warrant, subscription, call, preemptive right, option
or other agreement or outstanding offer of any kind to sell, purchase, encumber
or otherwise convey, transfer, encumber or dispose of any right, title and/or
interest in and to the equity of any Subsidiary of any Company and there is no
outstanding debt or security which is convertible into same, and no other
Person has any legal, beneficial or equitable right, title or interest in
and/or to such equity.

3.4                                 Binding
Obligation.  The Sellers have all
requisite corporate authority and power to execute and deliver this Agreement
and the Related Documents to be executed by them in connection herewith and to
perform their respective obligations set forth herein and therein.  This Agreement has been, and such Related
Documents will be at the Closing, duly and validly

 12
 

authorized by all required corporate or stockholder
action on the part of the Sellers and no other corporate or stockholder
proceedings on the part of any of them are necessary to authorize this
Agreement or the Related Documents.  This
Agreement has been duly executed and delivered by the Sellers and, assuming
that this Agreement constitutes a legal, valid and binding obligation of the
Buyer, constitutes the legal, valid and binding obligation of the Sellers,
enforceable against them in accordance with its terms, except to the extent that
the enforceability thereof may be limited by: 
(i) applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium or similar laws from time to time in effect
affecting generally the enforcement of creditors’ rights and remedies; and (ii)
general principles of equity (the exceptions set forth in (i) and (ii), the “Enforceability Exceptions”).

3.5                                 No
Default or Conflicts.  The execution
and delivery of this Agreement and the Related Documents by the Sellers and the
performance by them of their respective obligations hereunder and thereunder
(a) does not and will not result in any violation of, or breach or default
under the Certificate of Incorporation or bylaws (or equivalent organizational
documents) of ASC, SKI or any Company or any of their respective Subsidiaries
(subject to receipt of approval of the shareholders of ASC, which has not yet
been obtained); (b) assuming compliance with the matters referred to in Section
3.6, does not and will not violate nor result in a breach or default under any
existing applicable Law material to the business of any Company or any of their
respective Subsidiaries or any Judgment of any Governmental Agency having
jurisdiction over any of the Sellers or any Company or any of their respective
Subsidiaries or their or any of their respective Subsidiaries’ properties in
any material respect; (c) does not and will not result in the imposition of any
Lien upon any of the assets of ASC, SKI, any Company or any of their respective
Subsidiaries; and (d) does not and will not conflict with, result in a breach
of, constitute (with or without due notice or lapse of time or both) a default
under, result in the termination, cancellation or acceleration of obligations
under, create in any party the right to terminate, modify or cancel any
Contract to which ASC, SKI, any Company or any of their respective Subsidiaries
is a party or by which ASC, SKI, any Company or any of their respective
Subsidiaries is bound or to which any of their respective assets is subject, except,
with respect to clause (c) (but only with respect to Liens upon any of the
assets of ASC, SKI or their respective Subsidiaries (excluding the Companies
and their respective Subsidiaries)) and clause (d), for any such conflicts,
breaches, defaults and other occurrences which, individually or in the
aggregate, would not materially and adversely affect, impede or delay the
Sellers’ ability to consummate the transactions contemplated by this Agreement
and the Related Documents (in accordance with the terms of this Agreement).

3.6                                 No
Governmental Authorization or Consent Required.  Except as set forth on Section 3.6 of
the Seller Disclosure Letter and except for compliance with any applicable
requirements of the HSR Act and the Federal Communications Commission (the “FCC”), no authorization or approval or other
action by, and no notice to or filing with, any Governmental Agency will be
required to be obtained or made by any of ASC, SKI or any Company or any of
their respective Subsidiaries in connection with the due execution and delivery
by ASC, SKI and the Companies of this Agreement and the consummation by such
Persons of the transactions contemplated hereby, other than such
authorizations, approvals, notices or filings with any Governmental Agency
that, if not obtained or made, would not materially and adversely affect,

 13
 

impede or delay the Sellers’ ability to consummate the
transactions contemplated by this Agreement and the Related Documents (in
accordance with the terms of this Agreement).

3.7                                 Financial
Statements.  The Financial Statements
and the Interim Financial Statements fairly present, in all material respects,
the financial position of the Companies and their respective Subsidiaries, the
results of operations, stockholder’s equity and cash flows for the periods
indicated, all in conformity with GAAP applied on a consistent basis (except,
in the case of the Interim Financial Statements, for the absence of footnotes
and year end adjustments).  The Financial
Statements and the Interim Financial Statements have been accurately derived
from the books and records of the Companies and their respective
Subsidiaries.  Neither the Companies nor
any of their respective Subsidiaries have any material indebtedness, obligations
or other liabilities of a kind required to be disclosed in its financial
statements under GAAP other than those (i) fully reflected in, reserved against
or otherwise described in the Base Balance Sheet; (ii) incurred in the ordinary
course of business since the Base Balance Sheet Date (including work in
progress on capital expenditures which are contemplated by the capital
expenditures program set forth on Section 3.7(b) of the Seller
Disclosure Letter (the “Capital Program”)) or (iii) set forth on Section
3.7(a) of the Seller Disclosure Letter.

3.8                                 Powers
of Attorney.  Except as set forth on Section
3.8 of the Seller Disclosure Letter, neither the Companies nor any of their
respective Subsidiaries have any material outstanding revocable or irrevocable
powers of attorney or similar authorizations issued to any individual who is
not one of the Company’s employees or officers.

3.9                                 Brokers.  Except as set forth on Section 3.9 of
the Seller Disclosure Letter, no broker, finder, agent, investment banker,
financial advisor or similar Person has acted for or on behalf of the
Companies, ASC or SKI in connection with this Agreement or the transactions
contemplated hereby (an “ASC Broker”), and no broker, finder, agent, investment
banker, financial advisor or similar Person is entitled to any broker’s, finder’s,
financial advisor’s or similar fee or other commission in connection therewith
based on any agreement, arrangement or understanding with the Companies, ASC or
SKI or any action taken by any such Person.

3.10                           Compliance
with Laws.  As of the date hereof,
except as set forth in Section 3.10(i) of the Seller Disclosure Letter,
no investigation or material review by any Governmental Agency with respect to
any Company or any of their respective Subsidiaries or their properties or
assets is pending or, to the Knowledge of the Companies, threatened.  Except as set forth in Section 3.10(ii)
of the Seller Disclosure Letter, neither ASC, SKI, any Company nor any of their
respective Subsidiaries, has received any notice or communication of any
noncompliance by any Company or any of their respective Subsidiaries in any
material respect with any applicable Laws or Approvals, including without
limitation any applicable Laws with respect to the Laws and standards of any
Tramway Authorities, that has not been cured as of the date hereof.  Except as set forth on Section 3.10(iii)
of the Seller Disclosure Letter, any of the Companies and their respective
Subsidiaries is currently conducting, and has at all times since December 31,
2003 conducted, their respective businesses in compliance in all material
respects with all applicable Laws and Approvals.

 14

3.11         Insurance.

(a)           Section 3.11(a)
of the Seller Disclosure Letter sets forth as of the date hereof a description
of each insurance policy (the “Insurance Policies”) of each Company and
its Subsidiaries.  Except as noted on Section
3.11(a) of the Seller Disclosure Letter and as of the date hereof, (i) all
Insurance Policies are in full force and effect and all premiums due and
payable thereunder have been paid in full and will not in any way be adversely
affected by, or terminate or lapse by reason of, the transactions contemplated
by this Agreement, (ii) there are no pending claims in excess of $50,000 under
any Insurance Policy as to which the respective insurers have denied coverage,
(iii) since July 30, 2003, each Company and its Subsidiaries have been fully
insured for worker’s compensation claims and (iv) none of the Companies nor any
of their Subsidiaries is in material breach or default under any of the
Insurance Policies, and no event has occurred which, with notice or lapse of
time, would constitute such a material breach or default, or permit
termination, modification or acceleration, under any of the Insurance
Policies.  None of the Sellers nor any
Subsidiary of any Company has received any notice from any insurance company of
such insurance company’s intention not to renew any such Insurance Policy
applicable to any Company or materially increase the premiums thereunder beyond
such premiums currently in effect, nor, to the Knowledge of the Companies, is
any such cancellation, non-renewal or premium increase threatened.  The consummation of the transactions
contemplated by this Agreement will not constitute a default under the terms
of, or result in the invalidation or termination of, any of the Insurance Policies.  All of the Insurance Policies are issued by
financially sound and reputable insurers, and are in reasonable and customary
amounts in light of the Companies’ respective businesses.

(b)           Section 3.11(b)
of the Seller Disclosure Letter sets forth a true and correct list of any
pending worker’s compensation claims not covered by insurance.

3.12         Litigation.  Except as disclosed on Section 3.12 of
the Seller Disclosure Letter, there is no Litigation pending or, to the
Knowledge of the Companies, threatened against any of the Sellers, the Companies
or their respective Subsidiaries or any of their respective properties or
assets that, with respect to each such Litigation (a) in the case of the
Companies and their respective Subsidiaries (i) is not fully covered by
insurance or (ii) is covered by insurance and would reasonably be expected to
result in a liability to the Companies in excess of $50,000 individually or
$150,000 in the aggregate for all such Litigation or (b) in the case of ASC or
SKI, would reasonably be expected to result in a material and adverse effect on
ASC’s or SKI’s ability to consummate the transactions contemplated by this
Agreement.  Except as set forth on Section
3.12 of the Seller Disclosure Letter, none of the Companies nor any of
their respective Subsidiaries is subject to any material order, Judgment,
injunction or decree of any Governmental Agency.

3.13         Approvals.  Except as set forth in Section 3.13(a)
of the Seller Disclosure Letter, the Companies and their respective
Subsidiaries have in full force and effect all material Approvals necessary for
the lawful operation of the business of the Companies and their respective
Subsidiaries as presently conducted (including for this purpose any Approvals

 15
 

necessary for any
development or construction activity that has been commenced with respect to
any Real Property, or otherwise to the extent required by applicable Law).  Since December 31, 2003, except as set forth
on Section 3.13(b) of the Seller Disclosure Letter, the Companies and
their respective Subsidiaries have been in substantial compliance with the
terms of each Approval and have not received written notice of any material
default under any such Approval.  Except
as set forth on Section 3.13(c) of the Seller Disclosure Letter, to the
Knowledge of the Companies, no suspension or cancellation of any such Approval
is threatened and there is no basis for believing that any such Approval will
not be renewable upon expiration.  To the
Knowledge of the Companies, Section 3.13(d) of the Seller
Disclosure Letter sets forth a list of all material Approvals required for the
operation of the business of the Companies and their Subsidiaries as presently
conducted or for the consummation of the transactions contemplated by this
Agreement.

3.14         Labor Matters.

(a)           Except as set forth on Section
3.14(a) of the Seller Disclosure Letter, the Companies and their respective
Subsidiaries are in compliance in all material respects with all Laws relating
to the employment of labor, including all such Laws relating to wages, hours,
the WARN Act, collective bargaining, discrimination, civil rights, immigration,
safety and health, workers’ compensation and the collection and payment of
withholding and/or social security taxes and similar tax.

(b)           There are no strikes,
work stoppages, lockouts, boycotts or material labor disputes pending or, to
the Knowledge of the Companies, threatened against or affecting the Companies
or their respective Subsidiaries, and there have been no such events or actions
since December 31, 2003.

(c)           Except as set forth on Section
3.14(c) of the Seller Disclosure Letter, as of the date hereof, none of the
Sellers has received written notice of any pending or, to the Knowledge of the
Companies, threatened (i) proceedings under the National Labor Relations Act or
before the National Labor Relations Board, the Equal Employment Opportunity
Commission, the Department of Labor or any other Governmental Agency
responsible for regulating employment practices, (ii) grievances or
arbitrations, or (iii) organizational drives or unit clarification requests, in
each case against or affecting any Company or their respective
Subsidiaries.  There are no collective
bargaining agreements or similar labor agreements that any Company or any of
its respective Subsidiaries is bound by, party to or in the process of
negotiating.

3.15         Employee Benefit Plans.

(a)           Section 3.15(a)
of the Seller Disclosure Letter contains a true and complete list of each “employee
benefit plan” (within the meaning of Section 3(3) of ERISA),

 16
 

stock purchase, stock
option or other stock-related rights, severance, employment, change-in-control,
fringe benefit, savings or thrift benefits, vacation benefits, cafeteria plan
benefits, life, health, medical, or accident benefits (including any “voluntary
employees’ beneficiary association” as defined in Section 501(c)(9) of the Code
providing for the same or other benefits), employee assistance program,
disability or sick leave benefits, worker’s compensation, supplemental
unemployment benefits, insurance coverage (including any self-insured
arrangements), post-employment or retirement benefits (including compensation,
pension, health, medical or life insurance benefits), collective bargaining,
bonus, incentive, deferred compensation, profit sharing, and all other employee
benefit or compensation plans, agreements, programs, practices, policies or
other arrangements, whether or not subject to ERISA and whether written or
unwritten (collectively referred to as “Plans”), under which any
employee, former employee, consultant, former consultant, director or former
director of any Company has any present or future right to benefits or which is
entered into, sponsored, maintained, contributed to or required to be
contributed to, as the case may be, by any Company or any ERISA Affiliate or under
which any Company or any ERISA Affiliate has any present or future liability
(including, without limitation, contingent liability).  To the extent any Company sponsors,
maintains, contributes to, is required to contribute to, or has any present or
future liability (including, without limitation, contingent liability) with
respect to any such Plans, the same shall be collectively referred to as the “Company
Plans.”

(b)           With respect to each
Company Plan, the Buyer has been furnished access to a current and complete
copy (or, to the extent no such copy exists, a description) thereof and all
amendments thereto, and, to the extent applicable:  (i) any related trust agreement, annuity
contract, or other funding instrument; (ii) the most recent IRS determination letter,
if applicable; (iii) any summary plan description or other written description
or interpretation thereof; (iv) for the three most recent plan years (a) the
Form 5500 and attached schedules, (b) audited financial statements, (c)
actuarial valuation reports and (d) attorneys’ responses to any auditor’s
request for information; (v) any correspondence and other materials submitted
to or received from the IRS or Department of Labor in connection with any
correction program with respect to the Company Plans; (vi) any correspondence
and other materials submitted to or received from any Multiemployer Plan or its
trustees with respect to its funding status or potential withdrawal liability;
and (vii) all contracts and other service agreements with any third party
administrators in connection with the Company Plans.

(c)           (i) Each Company Plan
has been established, maintained, and administered in accordance with its
terms, and in material compliance with the applicable provisions of ERISA, the
Code and other applicable Laws; (ii) each Company Plan which is intended to be
qualified within the meaning of Section 401(a) of the Code (and each related
trust agreement, annuity contract, or other funding instrument) has received a
favorable opinion letter from the IRS as to its qualification, and the
Companies have no Knowledge of any reason why any such opinion letter would
reasonably be expected to be revoked or not be reissued; (iii) for each Company
Plan that is a “welfare plan” within the meaning of Section 3(1) of ERISA,
neither the Companies nor any of their ERISA Affiliates has or will have any
liability or obligation under any plan which provides medical, death or other
welfare benefits with respect to

 17
 

current or former
employees of any Company beyond their termination of employment (other than
coverage mandated by Law) and no condition exists which would prevent any
Company from amending or terminating any such welfare plan; (iv) no event has
occurred with respect to any Company Plan that would subject any Company to any
Tax, fine, lien, penalty or other liability imposed by ERISA, the Code or other
applicable Laws; (v) no “prohibited transaction” (as such term is defined in
Section 406 of ERISA and Section 4975 of the Code, other than any such
transaction which is subject to an administrative or statutory exemption) has
occurred with respect to any Company Plan; (vi) none of the Companies nor any
plan fiduciary of any Company Plan subject to ERISA has otherwise violated the
provisions of Part 4 of Title I, Subtitle B of ERISA; and (vii) each Company
Plan which is a “group health plan” as defined in Section 607(1) of ERISA has
been operated in compliance with the provisions of Part 6 of Title I, Subtitle
B of ERISA and Section 4980B of the Code, as well as with the provisions of any
similar state law, at all times.

(d)           Neither the Companies
nor any of their ERISA Affiliates has ever (i) maintained, contributed to, or
been obligated to contribute to any plan which is subject to Title IV of ERISA
or the minimum funding requirements of Section 412 of the Code or (ii)
contributed to, been obligated to contribute to, or incurred any liability to a
Multiemployer Plan as defined in Section 3(37) of ERISA.  No liability under Title IV of ERISA has been
incurred by any Company or any ERISA Affiliate that has not been satisfied in
full, and no condition exists that presents a material risk to the Companies or
any of their ERISA Affiliates of incurring a liability under such Title.

(e)           Except as set forth on Section
3.15(e) of the Seller Disclosure Letter, the consummation of the
transactions contemplated by this Agreement will not (either alone or together
with any other event) entitle any current or former employee, director or
consultant of any Company to severance pay or accelerate the time of payment or
vesting of compensation or benefits under, increase the amount payable or
trigger any other material obligation pursuant to, any Company Plan.  Except as set forth on Section 3.15(e)
of the Seller Disclosure Letter, there is no Company Plan covering any current
or former employee, director or consultant of any Company that, individually or
collectively, will give rise to the payment of any amount that would not be
deductible by such Company pursuant to Section 280G of the Code.

(f)            All contributions
(including all employer contributions and employee salary reduction
contributions) required by each Company Plan or by any applicable Law or
agreement to have been made under any Company Plan to any fund, trust, or
account established thereunder or in connection therewith have been made by the
due date thereof, or the deadline for making such contribution has not yet
passed.

(g)           None of the Company
Plans are “multiple employer welfare arrangements” within the meaning of
Section 3(40) of ERISA.  With respect to
any of the Company Plans which are self-insured welfare benefit plans, no
claims have been made pursuant to any such plans that have not been paid (other
than claims which have not yet been paid but are

 18
 

in the normal course of
processing) and no individual has incurred injury, sickness or other medical
condition with respect to which claims may be made pursuant to any such plans
where the liability could in the aggregate with respect to each such individual
exceed $25,000 per year.

(h)           There is no default on
behalf of any Company with respect to any of the Plans and each of the Plans is
in full force and effect, enforceable by the Companies in accordance with its
terms.  There is no Litigation pending
or, to the Knowledge of the Companies, threatened alleging any breach of the
terms of any Company Plan or of any fiduciary duties thereunder or violation of
any applicable Law with respect to any Company Plan, nor to the Knowledge of
the Companies, any arbitration, proceeding or investigation.  None of the Companies nor any ERISA Affiliate
nor any of their respective directors, officers, employees or, to the Knowledge
of the Companies, other fiduciaries (as such term is defined in Section 3(21)
of ERISA) has any liability for failure to comply with ERISA or the Code for
any action or failure to act in connection with the administration or
investment of any Company Plan.

(i)            Section 3.15(i)(1)
of the Seller Disclosure Letter lists all of the full-time year-round employees
of each Company as of the date hereof, together with their respective salaries
and date of hire; such list will be updated as of five Business Days prior to
the Closing Date and delivered to Buyer prior to the Closing Date.  Section 3.15(i)(2) of the Seller
Disclosure Letter also identifies those employees of each Company who are
parties to employment agreements, bonus agreements or other written agreements
relating to compensation and identifies those agreements.

(j)            Each Company Plan that
is a “nonqualified deferred compensation plan” within the meaning of, and
subject to, Section 409A of the Code (a “Nonqualified Deferred Compensation
Plan”) has been operated in material compliance with Section 409A of the Code
since January 1, 2005, based upon a good faith, reasonable interpretation of
Section 409A of the Code, the proposed regulations issued thereunder and
Internal Revenue Service Notices 2005-1 and 2006-79.

3.16         Real Property.

(a)           Section 3.16(a)(1)
of the Seller Disclosure Letter is a complete and accurate list of all real
property owned by any Company or any of its Subsidiaries as of the date hereof
and which is to be acquired and owned by any Company or any of its Subsidiaries
on or prior to the Closing Date (the “Owned Real Property”).  Section 3.16(a)(2) of the Seller
Disclosure Letter is a complete and accurate list of all leases, subleases,
licenses, permits and other agreements, documents or instruments (including,
without limitation, easement agreements) and all amendments, modifications
and/or supplements thereto (collectively, the “Real Property Leases”)
under which any Company or any of its Subsidiaries lease, sublease, license,
use or occupy any real property (the land, buildings and other improvements
covered by the Real Property Leases being herein called the “Leased Real
Property” and together with the Owned Real Property, the “Real Property”).  The Companies have made available to the
Buyer,

 19
 

prior to the date hereof,
copies of the Real Property Leases, all of which are true, complete and correct
in all material respects.  Except as set
forth in Section 3.16(a)(3) of the Seller Disclosure Letter, each Real
Property Lease is in full force and effect as to the applicable Company or its
applicable Subsidiary and, to the Knowledge of the Companies, as to the other
parties thereto.  Except as set forth in Section
3.16(a)(4) of the Seller Disclosure Letter, neither the applicable Company
nor its applicable Subsidiary nor, to the Knowledge of the Companies, any other
party to such Real Property Lease is in breach in any material respect thereof
or default in any material respect thereunder. 
The Real Property is all of the material real property that is necessary
for the operation of the business of the Companies and their respective
Subsidiaries as presently conducted. 
Except as set forth in Section 3.16(a)(4) of the Seller
Disclosure Letter, neither the Companies nor any of their respective
Subsidiaries have received notice that any party to any Real Property Lease
intends, or has threatened, to terminate or revoke all or any rights granted in
favor of any Company or its applicable Subsidiary thereunder.

(b)           The Companies own fee
title to the Owned Real Property and good and valid non-subordinated
leasehold interests in the Leased Real Property, subject only to Permitted
Exceptions and Liens to be released on or before the Closing Date including as
provided in Section 7.5.  The foregoing
representation (a) shall not be construed in any event to relate to the fee
interest in any Leased Real Property and (b) shall be deemed deleted with
respect to any matter covered by a title insurance policy obtained for the
benefit of Buyer.

(c)           Except as set forth on Section
3.16(c) of the Seller Disclosure Letter, there are no outstanding options
or rights of first refusal to purchase or lease the Real Property or any
portion thereof or interest therein, other than rights running in favor of any
Company and its Subsidiaries, and the Real Property is free from agreements
creating any obligation on the part of any Person to sell, lease or grant a
third party option to sell or lease.

(d)           Except as set forth in Section
3.16(d) of the Seller Disclosure Letter, none of the Sellers has received
notice of and there is no pending or, to the Knowledge of the Companies,
threatened or contemplated condemnation proceeding affecting the Real Property
or any part thereof, nor any sale or other disposition of the Real Property or
any part thereof in lieu of condemnation.

(e)           All chairlifts,
gondolas, buildings and other improvements, access roads and ski-runs used in
connection with either Resort and the conduct of the business of each Company
and its Subsidiaries as presently conducted are located either on (i) the Owned
Real Property, and/or (ii) the Leased Real Property pursuant to valid Real Property
Leases (including valid easement agreements in favor of the applicable Company
and its Subsidiaries) which allow and provide for the existence, operation, and
maintenance of the chairlifts, gondolas, buildings, improvements, roads and/or
ski-runs, as applicable.

 20
 

(f)            Section 3.16(f)(i)
of the Seller Disclosure Letter lists all of the Real Property Leases and other
Contracts, including any amendments, modifications and/or supplements thereto,
pursuant to which any Person has the right to use, occupy and/or possess all or
any portion of the Real Property (the “Third Party Real Property Leases”);
provided, however, that Section 3.16(f)(i) of the Seller
Disclosure Letter need not include any bookings at hotels or conference
facilities within either Resort in the ordinary course of business.  Except as set forth on Section 3.16(f)(ii)
of the Seller Disclosure Letter, (i) there are no material real property Leases
affecting the Real Property or any portion thereof, (ii) there are no material
security deposits under any real property Leases affecting the Real Property or
any portion thereof and (iii) no material tenant or other occupant is currently
entitled to any material rent concessions, rent abatements or rent credits and
no material rent concessions or rent abatements permitted under any real
property Leases are currently claimed by any material tenant(s) or occupant(s)
as a result of a default by any Company, its Subsidiaries or otherwise.  Copies of all such Third Party Real Property
Leases (including any amendments, modifications and/or supplements) which are
true, complete and correct in all material respects, have previously been made
available to Buyer prior to the date hereof. 
Except as set forth in Section 3.16(f) of the Seller Disclosure
Letter, each third Party Real Property Lease is in full force and effect and
none of the Companies nor any of their Subsidiaries nor, to the Knowledge of
the Companies, any other party to such Third Party Real Property Lease is in
breach in any material respect thereof or default in any material respect
thereunder.

(g)           Except as set forth on Section
3.16(g) of the Seller Disclosure Letter, none of the Sellers or the
Companies nor any of their respective Subsidiaries has received written notice
of, and the Companies have no Knowledge of, (i) any violations of any covenants
or restrictions affecting any Real Property including any covenants, conditions
or restrictions of or issued by any applicable condominium or home owners
association, or (ii) any violations of any zoning codes or ordinances or other
Laws of any Governmental Agency applicable to such Real Property.

(h)           None of the Real
Property is subject to regulation by the United States Forest Service.

(i)            At Closing, other than
with respect to the capital program described in Section 3.7(b) of the
Seller Disclosure Letter, there will be no outstanding construction contracts
made by the Sellers or any Company or its Subsidiaries for the construction,
development or repair of any improvements located at any of the Real Property
which have not been fully paid for, or provision for the payment of which has
not been made by such Seller, Company or Subsidiary, and such Seller, Company
or Subsidiary shall discharge and have released of record or bonded all
mechanic’s, builder’s or materialman’s liens, if any, arising from any labor or
materials furnished to the Real Property prior to the Closing to the extent any
such lien is not bonded over pursuant to applicable Laws or insured over under
a valid title insurance policy insuring the applicable Company and its
Subsidiaries or the Buyer on the Closing Date.

 21
 

(Nothing contained herein
shall be deemed to modify the Buyer’s reimbursement obligations under Section
2.1 hereof.)

(j)            None of the Sellers or
the Companies or their Subsidiaries has received written notice from any
insurance carrier of defects or inadequacies in the Real Property which, if
uncorrected, would result in a termination of insurance coverage or a material
increase in the premiums charged therefore.

3.17         Tax Matters.

(a)           All material Tax
Returns required to be filed by or with respect to any Company and/or its
Subsidiaries on or before the date hereof have been properly prepared and
timely filed.  All such Tax Returns were
correct and complete in all material respects. 
All material Tax Returns required to be filed by or with respect to any
Company and/or its Subsidiaries after the date hereof and on or before the
Closing Date shall be properly prepared and timely filed, in a manner
consistent with prior years (except where any inconsistency is required by
applicable laws and regulations) and applicable laws and regulations.  All material Taxes due and payable by any
Company and its Subsidiaries (whether or not shown on a Tax return) have been
paid.  All material Taxes that any
Company or its Subsidiaries is or was required by Law to withhold or collect
have been duly withheld or collected and, to the extent required, have been
paid to the proper Tax authority, and have been properly reported as required
under applicable information reporting requirements.  With respect to any Taxes of any Company
and/or its Subsidiaries not yet due and payable, adequate reserves and accruals
in all material respects for such Taxes have been made in the Financial
Statements or in the Interim Financial Statements.  None of the Companies or its Subsidiaries is
currently the beneficiary of any extension of time within which to file any Tax
Return.  No claim has been made by a
Governmental Agency in a jurisdiction where any Company or its Subsidiaries do
not file Tax Returns that any such corporation is or may be subject to taxation
by that jurisdiction.

(b)           None of the Companies
nor their Subsidiaries has waived any statute of limitations in respect of any
Taxes or agreed to any extension of time with respect to a material assessment
or Tax deficiency.

(c)           With respect to all
material federal, state and local Tax Returns of each Company and/or its
Subsidiaries, (i) no audit is in progress and no extension of time (other than
automatic extensions of time) is in force with respect to any date on which any
Tax Return was or is to be filed and no waiver or agreement is in force for the
extension of time for the assessment or payment of any Tax; and (ii) there is
no unassessed deficiency as to which any Company has received written notice or
as to which the Companies have Knowledge based upon personal contact with any
agent of a taxing authority against any Company.

 22
 

(d)           Except as set forth on Section
3.17(d) of the Disclosure Letter, each Company and/or its Subsidiaries have
not agreed to and, to the Knowledge of the Companies, each Company and/or its
Subsidiaries are not required to make any adjustments pursuant to Section
481(a) of the Code by reason of a change in accounting method or otherwise for
any Tax period for which the applicable federal statute of limitations has not
yet expired.

(e)           There are no material
Liens for Taxes upon the assets or properties of any Company, except for
statutory Liens for current Taxes not yet due and except for Taxes, if any, as
are being contested in good faith.  None
of the Sellers or any Company or its Subsidiaries has received any written
notice for an audit or delinquency of any Taxes with respect to any portion of the
Real Property which has not been resolved or completed.  None of the Sellers or any Company or its
Subsidiaries is currently contesting any Taxes with respect to any portion of
the Real Property except as disclosed in Section 3.17(e) of the Seller
Disclosure Letter.

(f)            None of the Companies
nor any of their Subsidiaries is a party to any agreement providing for the
allocation or sharing of Taxes.

(g)           There are no special
assessments or charges which have been levied, and with respect to which any
Company has received written notice, against the Real Property that are not
reflected on the tax bills issued with respect thereto.

(h)           None of the Companies
nor any of their Subsidiaries (i) has entered into any “reportable transaction”
within the meaning of Treasury Regulations Section 1.6011-4(b) that must be
disclosed pursuant to Section 6011 of the Code and the Regulations promulgated
thereunder, (ii) is a party to any closing agreement as defined in Section 7121
of the Code or any similar provision of state, local, or foreign Law or (iii)
has requested any private ruling from any Tax authority.

3.18         Contracts and
Commitments.  Except as set forth in Section
3.18 of the Seller Disclosure Letter, none of the Companies nor any of
their Subsidiaries is a party to:

(a)           any partnership
agreements or joint venture agreements which require a payment, or delivery of
assets or services beyond the 2006-2007 ski season and which are not terminable
by the applicable Company on 30 days or less notice without penalty to the
applicable Company or any of its Subsidiaries, or which contain exclusivity
arrangements which will be binding upon Affiliates of the applicable Company
(other than a Subsidiary thereof) following the Closing;

(b)           any agreement pursuant
to which the applicable Company or its Subsidiaries would be required to pay
severance to any director, officer, employee or consultant;

 23
 

(c)           any material agreement
with another person or entity limiting or restricting the ability of the
applicable Company or its Subsidiaries to enter into or engage in any market or
line of business or restricting the ability of any Company or its Subsidiaries
to enter into or engage in any market or line of business or restricts or
limits the ability of any Company or its Subsidiaries to own, operate, sell,
transfer, pledge, or otherwise dispose of or encumber any of its assets or
properties;

(d)           any material brokerage
agreements;

(e)           any agreements for the
sale of any of the assets of the applicable Company or its Subsidiaries other
than in the ordinary course of business or for the grant to any person or
entity of any preferential rights to purchase any of its assets;

(f)            any agreement relating
to the acquisition by the applicable Company or its Subsidiaries of any
operating business or the assets or capital stock of any other corporation,
entity or business entered into during the last twelve (12) months;

(g)           any material agreements
relating to the incurrence, assumption, surety or guarantee of any indebtedness
other than ASC-Level Financings;

(h)           any material agreements
(other than agreements granting rights to use readily available commercial
Software and having an acquisition price of less than $50,000 in the aggregate
for all such agreements and agreements allowing the use of Company trademarks,
tradenames and the like in connection with promotional activities) (i) granting
or obtaining any right to use any Intellectual Property or (ii) restricting the
rights of the applicable Company or any of its Subsidiaries, or permitting
other Persons, to use or register any Intellectual Property of the applicable
Company;

(i)            any material
agreements under which the applicable Company or its Subsidiaries has made
advances or loans to any entity or individual (which shall not include advances
made to an employee of the applicable Company in the ordinary course of
business consistent with past practice);

(j)            any
agreement for the supply of materials or services to a Company or its
Subsidiaries (i) pursuant to which payments in excess of $50,000 in the
aggregate were made by such Company or its Subsidiaries during the prior twelve
(12) months, or (ii) that is otherwise necessary for the continued operation of
the business which is conducted prior to the Closing Date, except, in either
case, for purchases of retail inventory, insurance, or items subject to capital
leases;

 24
 

(k)           any
agreement for the lease of personal property to or from any Person providing
for lease payments in excess of $50,000 per year;

(l)            any
agreement relating to capital expenditures providing for payments in excess of
$50,000 not cancelable without penalty or further payment or without more than
30 days notice;

(m)          any
agreement relating to the grant or receipt of any license or royalty fees
providing for payments in excess of $50,000 to or from any Person;

(n)           any
agreement with ASC or any of its Affiliates that will not be terminated prior
to the Closing;

(o)           any
sole source or exclusive supplier agreement; or

(p)           except for agreements
described in Section 3.18(a), any other agreement (or group of related
agreements) the performance of which presently requires aggregate payments be
made to or from any Company or any of its Subsidiaries in excess of $50,000 per
year or requires performance by any Company and its Subsidiaries of any
obligation for a period of time extending more than one (1) year from the date
of this Agreement.

Each of the contracts to
which any Company or any of its Subsidiaries is a party and which is required
to be set forth on Section 3.18 of the Seller Disclosure Letter (the “Material
Contracts”), a true and complete copy of each of which has been delivered
or made available to the Buyer prior to the date hereof is in full force and
effect and is the legal, valid and binding obligation of the applicable
Company, enforceable against it in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium and similar laws
affecting creditors’ rights and remedies generally and subject, as to
enforceability, to general principles of equity (regardless of whether
enforcement is sought in a proceeding at law or in equity).  With respect to each Material Contract,
neither the applicable Company nor its Subsidiaries nor, to the Knowledge of
the Companies, any other party, is in material breach of violation of, or
default under, any such Material Contract, and no event has occurred, is
pending or, to the Knowledge of the Companies, is threatened, which, after the
giving of notice, with lapse of time, or otherwise, would constitute a material
breach or default by the applicable Company or its Subsidiaries or, to the
Knowledge of the Companies, any other party under such Material Contract.  With respect to each Material Contract, no
Company or any of its Subsidiaries party thereto, and to the Knowledge of the
Companies, no other party thereto, has repudiated any material provision of
such contract.

3.19         Environmental Matters.  Except as otherwise set forth on Section
3.19 of the Seller Disclosure Letter:

 25
 

(a)           There
has not been, and is not now present, any Contamination at any Real Property
currently owned, leased or operated by any Company or its Subsidiaries, or any
of them (including, without limitation, in improvements, soils, groundwater,
surface water in, at, on, from or under such properties), and, to the Knowledge
of the Companies, none of the Real Property is identified on any current list,
schedule, log, inventory or record, however defined, of contaminated property
(including, without limitation, the National Priorities List or other list with
respect to sites from which there is or has been a Release of a Hazardous
Substance, established and/or maintained or any Governmental Agency having
jurisdiction over the Real Property and any Hazardous Substances including,
without limitation, by the United States Environmental Protection Agency or the
State of Maine;

(b)           There
was no Contamination at property formerly owned, leased or operated by any
Company or its Subsidiaries, or any of them, during or, to the Knowledge of the
Companies, prior to the period of ownership or operation by the Companies and
their subsidiaries (including, without limitation in improvements, soils,
groundwater, surface water in, at on, from or under such properties), and, to
the Knowledge of the Companies, none of such property is identified on any
current list, schedule, log, inventory or record, however defined, of
contaminated property (including without limitation, the National Priorities
List or other list with respect to sites from which there is or has been a
Release of a Hazardous Substance), established and/or maintained or any
Governmental Agency having jurisdiction over the property and any Hazardous
Substances including without limitation, by the United States Environmental
Protection Agency or the State of Maine;

(c)           None
of the Companies or any of their Subsidiaries, or any of them, nor, to the
Knowledge of the Companies, any current or former tenant of any Real Property
is subject to any orders, decrees, injunctions or other arrangements with any
Governmental Agency or is subject to any indemnity or other agreement with any
third party relating to liability or other obligation under any Environmental
Law or relating to Hazardous Substances that obligates or may obligate any of
the Companies or its Subsidiaries, or any of them, to pay money;

(d)           The
ownership and/or operation by each Company and its Subsidiaries of its business
is currently and, at all times during such Company’s and its Subsidiaries’
ownership or operation, in strict compliance with all Environmental Laws;

(e)           During
ownership and/or operation of the Real Property by the Companies and their
Subsidiaries and, to the Knowledge of the Companies, at all other times,
Hazardous Substances have not been managed, manufactured, produced or generated
by, Released, treated or stored in, on, at, under or transported to or from,
the Real Property in violation of any Environmental Laws;

(f)            To
the Knowledge of the Companies, there has been no Release(s) and there exists
no Environmental Condition(s) at, on, under or from any of the Real Property;

(g)           There
are no actual, pending, or, to the Knowledge of the Companies, threatened
Environmental Claims including, without limitation, investigations by any
Governmental Agency, against or concerning any Company or its Subsidiaries or
any of their

 26
 

properties, assets or business, or any of them, which, if adversely
decided, singly or in the aggregate, would reasonably be expected to have a
Material Adverse Effect on the business use currently conducted or otherwise
result in an Environmental Liability;

(h)           There
exists no material Lien affecting the business, properties or assets of any
Company or its Subsidiaries arising under Environmental Laws; and

(i)            The
Sellers have made available to the Buyer complete and legible copies of all
environmental assessments, reports, audits, communications to/from Governmental
Agencies and other documents in their possession or under their control that
relate to (i) any and all Real Property that each of the Companies and their
Subsidiaries currently own, operate, or lease or (ii) compliance with
Environmental Laws by the Companies and their Subsidiaries or any tenant at any
and all Real Property.  To the Knowledge
of the Companies, all information furnished to the Buyer concerning the Environmental
Condition of any property, prior uses of any property, and/or the operations of
the Companies and their Subsidiaries related to compliance with Environmental
Laws is accurate and complete in all material respects, and there has been no
material change in the Environmental Condition of any property of the Companies
or their Subsidiaries and no violation of any Environmental Laws by any Company
or its Subsidiaries since the most recent Phase I environmental site
assessment.

3.20         Intellectual Property.

(a)           Section 3.20(a)
of the Seller Disclosure Letter sets forth a true, correct, and complete list
of all U.S. and foreign (i) issued Patents and Patent applications, (ii)
Trademark registrations and applications, (iii) copyright registrations and
applications, (iv) domain names and URLS and (v) Software, in each case which
is owned, licensed or used by any Company or any of its Subsidiaries, and all
material licenses, permissions, permits and other rights relating to
Intellectual Property running to or from the Companies and their subsidiaries.  The applicable Company or its Subsidiaries,
as set forth on Section 3.20(a) of the Seller Disclosure Letter, is the
sole and exclusive beneficial and record owner of (or otherwise has the rights
described therein to) each of the Intellectual Property items set forth on Section
3.20(a) of the Seller Disclosure Letter, and to the Knowledge of the
Companies all such Intellectual Property is subsisting, valid and
enforceable.  There are no actions that
must be taken within 90 days from the date of this Agreement, including the
payment of fees or the filing of documents, for the purposes of obtaining,
maintaining, perfecting or renewing any rights in such registered or applied
for Intellectual Property.

(b)           Except as set forth on Section
3.20(b) of the Seller Disclosure Letter:

(i)            each of the Companies
owns, or has valid right to use, free and clear of all Liens, all Intellectual
Property used or held for use in, or necessary to conduct, such Company’s
business (including (as of the Closing Date) the CORIS and WRMS software
systems as and to the extent provided in the CORIS and WRMS License

 27
 

Agreements); provided, however, that
this Section 3.20(b)(i) shall not constitute a noninfringement representation
(which noninfringement representation is the subject of Section 3.20(b)(ii)
below);

(ii)           the conduct of each
Company’s business (including the products and services of such Company) as
currently conducted does not infringe, misappropriate or otherwise violate any
Person’s Intellectual Property rights, and there has been no such claim
asserted or threatened in the past three years against such Company or, to the
Knowledge of the Companies, any other Person;

(iii)          to the Knowledge of the
Companies, no Person is infringing, misappropriating or otherwise violating any
Intellectual Property owned by or licensed to any Company, and no such claims
have been asserted or threatened against any Person by any Company or, to the
Knowledge of the Companies, any other Person, in the past three years;

(iv)          the consummation of the
transactions contemplated by this Agreement will not result in the loss or
impairment of or payment of any additional amounts with respect to, nor require
the consent of any other Person in respect of, any Company’s right to own, use
or hold for use any of the Intellectual Property as owned, used or held for use
in the conduct of the business of such Company as currently conducted; and

(v)           each Company has at all
times complied in all material respects with all applicable Laws, as well as
its own rules, policies, and procedures relating to privacy, data protection,
and the collection and use of personal information collected, used or held for
use by such Company in the conduct of such Company’s business.  No claims have been asserted or, to the
Knowledge of the Companies, threatened against any Company alleging a violation
of any Person’s privacy or personal information or data rights and the
consummation of the transactions contemplated hereby will not breach or
otherwise cause any violation of any Law, policy or procedure related to
privacy, data protection or the collection and use of personal information
collected, used or held for use by any Company in the conduct of any Company’s
business.  Each Company takes reasonable
measures to ensure that such information is protected against unauthorized
access, use, modification or other misuse.

3.21         Related Persons.  Except as set forth on Section 3.21(a)
of the Seller Disclosure Letter, as of the date hereof, and as immediately
after the Closing, none of the assets, including Intellectual Property, used in
the business of any Company and its Subsidiaries is or will be owned, or leased
from a third party, by ASC, SKI or any of their respective Affiliates (other
than such Company and its Subsidiaries). 
Section 3.21(b) of the Seller Disclosure Letter sets forth a true
and complete list of all material Contracts to which any Company or any of its
Subsidiaries,

 28
 

on the one hand, and ASC,
SKI or any of their respective Subsidiaries (other than any Company and their Subsidiaries),
on the other hand, are party to.

3.22         Condition of and Title
to Assets.

(a)           Section 3.22(a) of the
Seller Disclosure Letter contains a listing (as of May 1, 2007) of the tangible
assets owned by the Companies or their respective Subsidiaries having a book
value in excess of $25,000 (excluding real property, buildings, fixtures and
inventories).  Such assets are located on
the Real Property, are not in the possession of any party other than a Company
or its Subsidiaries, and are owned by one of the Companies or their respective
Subsidiaries free and clear of all Liens. 
Such assets are in the aggregate in sufficiently good operating
condition (except for ordinary wear and tear) to allow the Companies and their
Subsidiaries to operate their business as currently conducted, except where the
failure to be in such condition or repair would not be reasonably likely to
have a Material Adverse Effect on the applicable Resort.

(b)           The accounts receivable
of the Companies reflected on the Base Balance Sheet (as well as those arising
thereafter and prior to the Closing Date) are (or will be) valid and genuine,
arising from bona fide transactions in the ordinary course of the Companies’
(and their respective Subsidiaries’) business.

(c)           The inventory held by
the Companies and their Subsidiaries is of customary quality, is merchantable
and fit for the purpose for which it was procured, is owned by the Companies
and their Subsidiaries, will be (as of the Closing Date) free and clear of all
Liens, and is accurately reflected in the Interim Financial Statements.

(d)           Section 3.22(d) of the
Seller Disclosure Letter contains a complete and accurate listing of the bank
accounts and investment assets of the Companies and their Subsidiaries.

(e)           Section 3.22(e) of the
Seller Disclosure Letter contains a complete and accurate listing of each
vendor with whom, during the current fiscal year, the Companies and their
Subsidiaries expended more than $50,000, excluding retail inventory, capital
leases and insurance.

(f)            Except as set forth in
Section 3.22(f) of the Seller Disclosure Letter, neither Company nor any
of its Subsidiaries has made or is subject to any commitment to grant to any
Governmental Agency in the future any easement or other right in respect of any
of the Real Property.

 29

(g)           Except as set forth in Section
3.22(g) of the Seller Disclosure Letter, neither ASC nor any of its
Affiliates has issued any guarantee with respect to the indebtedness of any
Company or its Subsidiaries.

(h)           Section 3.22(h) of the
Seller Disclosure Letter contains (i) a complete listing of all outstanding
lifetime ski passes and (ii) a summary of the dollar amount of gift cards
useable at either Resort.

3.23         Absence of Certain
Changes.  Since the Base Balance
Sheet Date, each Company and its Subsidiaries have conducted their respective
businesses in the ordinary course consistent with past practice. There has not
been, with respect to any Company or any of its Subsidiaries, (i) any action
taken since the Base Balance Sheet Date that, if taken during the period from
the date of this Agreement through the Closing, would constitute a breach of
Section 9.4, or (ii) since the Base Balance Sheet Date, any event, occurrence,
development or state of circumstances or facts that has had or reasonably could
be expected to have a Material Adverse Effect on either Resort.

3.24         Water Rights.  Except as set forth in Section 3.24 of
the Seller Disclosure Letter, each Company and its Subsidiaries has all water
rights, riparian rights, appropriative rights, water allocations, water stock,
water disbursal rights, water discharge rights and water collection rights
necessary for the collection, discharge and disbursal of water and for the
continued snowmaking, irrigation and operation of its business in accordance
with its historical practices.

3.25         No Clubs.  Except as set forth in Section 3.25 of
the Seller Disclosure Letter, there are no clubs owned or operated by the
Companies or their Subsidiaries in connection with their business, including,
without limitation, golf and health and fitness facilities (each, a “Club”
and collectively, the “Clubs”). 
Neither the Sellers, the Companies or their Subsidiaries, their
Affiliates, nor the officers, employees or agents thereof, have made any
representations, statements, promises, or agreements (either orally or in
writing) to any person or entity, including without limitation, home builders
and prospective home buyers, regarding any of the following: (a) the right to
membership in a Club or the intent to operate a Club as a private or
semi-private country club, (b) the right to play golf at a Club or ski or make
any other use of either Resort, except in the ordinary course of business, on
the same terms and conditions as offered to the public, (c) the right to
participate in the operation, management, or maintenance of either Resort or
any of the properties or assets thereof, and (d) the manner in which any Club
is to be operated, managed, maintained or improved.

3.26         Books and Records.  The books and records of the Companies and
their Subsidiaries (including all customer lists, manuals, drawings, imprints,
engineering and design information, service and parts records, warranty
records, maintenance and repair records relating to the Companies and their
Subsidiaries, their business and any of their properties and assets) are
complete and correct in all material respects and fairly reflect the
transactions, dispositions, assets and liabilities of each of them.  The Sellers will deliver to the Buyer any
such books and

 30
 

records in the possession
of the Sellers, the Companies or their Subsidiaries (including any electronic
records and data) prior to the Closing Date (subject to reimbursement for
Seller’s out of pocket costs).  Each
Company and its Subsidiaries maintains a system of internal accounting controls
sufficient to provide reasonable assurances that (a) transactions are executed
in accordance with management’s general or specific authorizations, (b)
transactions are recorded as necessary to permit preparation of financial
statements in accordance with GAAP and to maintain asset accountability, (c)
access to assets is permitted only in accordance with management’s general or
specific authorization and (d) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate
action is taken with respect to any differences.  Each Company and its Subsidiaries has
maintained all books and records required to be maintained by applicable Law
with respect to the operation of its business and the maintenance of its
properties and assets.

ARTICLE
IV

REPRESENTATIONS
AND

WARRANTIES OF THE BUYER

The Buyer
represents and warrants to ASC as follows:

4.1           Organization of the
Buyer.  Buyer is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Michigan, and has all requisite power and authority to own, operate and lease
its properties and to carry on its business as presently owned or conducted.

4.2           Power and Authority.  Buyer has the requisite corporate authority
and power to execute and deliver this Agreement and the Related Documents and
to perform the transactions contemplated hereby.  All corporate and stockholder action on the
part of the Buyer necessary to approve or to authorize the execution and
delivery of this Agreement and the Related Documents and the performance by the
Buyer of the transactions contemplated hereby and thereby has been duly
taken.  This Agreement has been duly
executed and delivered by the Buyer and constitutes the legal, valid and
binding obligation of the Buyer, enforceable against the Buyer in accordance
with its terms, except to the extent that the enforceability thereof may be
limited by the Enforceability Exceptions.

4.3           No Conflicts.  Except as may be required under the HSR Act,
neither the execution or delivery by the Buyer of this Agreement and the
Related Documents nor the performance by the Buyer of the transactions
contemplated hereby and thereby, shall:

(a)           conflict with or result
in a breach of any provision of the certificate of incorporation or bylaws of
Buyer;

 31
 

(b)           violate any existing
applicable Law by which Buyer or any of its properties is bound, which
violation would reasonably be expected to have a material adverse effect on the
ability of Buyer to purchase the Stock or pay the Purchase Price, in each case
on the terms and subject to the conditions set forth herein;

(c)           require any consent,
approval, authorization or other order or action of, or notice to, or
declaration, filing or registration with, any Person other than any such
consent, approval, authorization, order, action, notice, declaration, filing or
registration the absence of which would not reasonably be expected to have a
material adverse effect on the ability of Buyer to purchase the Stock or pay
the Purchase Price, in each case on the terms and subject to the conditions set
forth herein; or

(d)           conflict with or result
in a breach of any of the terms or provisions of, or constitute a default under
any Material Contract other than such of the foregoing matters which would not
reasonably be expected to have a material adverse effect on the ability of
Buyer to purchase the Stock or pay the Purchase Price, in each case on the
terms and subject to the conditions set forth herein.

4.4           Purchase for
Investment.  Buyer is purchasing the
Stock for its own account for investment and not for resale or distribution in
any transaction that would be in violation of the securities laws of the United
States of America or any state thereof. 
Buyer is an “accredited investor” as that term is defined in Rule 501 of
the Regulation D promulgated under the Securities Act.

4.5           Litigation.  There is no Litigation pending or, to the
knowledge of Buyer, threatened against Buyer or any of its properties or assets
which seeks to restrain, enjoin or prevent the consummation of this Agreement
or any of the transactions contemplated hereby.

4.6           Brokers.  No broker, finder or similar intermediary has
acted for or on behalf of Buyer or its Affiliates in connection with this
Agreement or the transactions contemplated hereby, and no broker, finder, agent
or similar intermediary is entitled to any broker’s, finder’s or similar fee or
other commission in connection therewith based on any agreement, arrangement or
understanding with Buyer or its Affiliates or any action taken by Buyer or its
Affiliates.

4.7           Availability of
Funds.  Buyer has cash available or
existing borrowing facilities or binding funding commitments, true and complete
copies of which have been provided to the Sellers, in each case that are
sufficient to enable it to consummate the transactions contemplated by this
Agreement and the Related Documents.

4.8           No Divestitures.  To the knowledge of Buyer, none of the
businesses or operations of Buyer or any of its Subsidiaries or use or ownership
of assets or interests in connection with such businesses or operations would
reasonably be expected, in connection with and in anticipation of the
consummation of the transactions contemplated hereby, to result in Buyer being
required to divest itself or hold or operate separately any of its assets or
result in any other materially burdensome condition to Buyer or any Company

 32
 

ARTICLE
V

EMPLOYEES
AND EMPLOYEE-RELATED MATTERS

5.1           Employment Matters.  Except to the extent otherwise agreed in
writing by the parties, the Buyer agrees to cause each Company to offer
employment to the employees of such Company and its Subsidiaries as of the
Closing Date (the “Employees”) and that, through the day that is 180
days following the Closing Date, the compensation paid and benefits (to the
extent described on Section 5.1 of the Seller Disclosure Letter)
provided to the Employees, in the aggregate, will be at least comparable to the
aggregate compensation and benefits under such Company’s compensation benefit
plans immediately prior to the Closing Date.

5.2           Benefit Plans.

(a)           For all purposes of any
employee welfare benefit plans in which Employees participate after the Closing
Date, the Buyer shall credit Employees for prior service with the Sellers and
their Affiliates to the extent permitted under the applicable Plan.  The Buyer shall allow Employees with vacation
earned but unused as of the Closing Date to use such vacation in accordance
with the Buyer’s policy as in effect on the date hereof with respect to Buyer’s
employees generally.  The Buyer shall (i)
credit deductible payments and coinsurance payments made in the plan year in
which the Closing Date occurs (the “Current Plan Year”) by Employees
under the applicable Company’s group health plans on or prior to the Closing
Date towards deductibles and other out-of-pocket costs incurred by Employees in
the Current Plan Year in connection with any group health plan in which
Employees participate after the Closing Date; (ii) waive all pre-existing
condition clauses applicable to any group health plan in which Employees
participate after the Closing Date to the extent permitted under the applicable
Plan; and (iii) waive eligibility waiting periods for Employees in connection
with any group health plan in which Employees participate after the Closing
Date to the extent permitted under the applicable Plan.  For purposes of the preceding sentence, “group
health plan” shall have the meaning prescribed in Section 5000(b)(1) of the
Code.

(b)           Effective as of the
Closing Date or as soon thereafter as reasonably practicable, the Buyer shall
cause each Company to become a participating employer in the Buyer’s 401(k)
Retirement Plan (the “401(k) Plan”) and shall cause each Employee to be
given credit for his or her prior service as reflected in the records of the
Companies for all purposes under the 401(k) Plan.

(c)           No provision in this
Article V shall be construed to prevent the termination of employment of any
Employee or the amendment or termination of any particular Company Plan to the
extent not prohibited by its terms as in effect immediately prior to the date
hereof.

 33
 

ARTICLE
VI

CLOSING

6.1           Closing Date.  Subject to the satisfaction or waiver of the
conditions set forth in Articles VII and VIII hereof, the Closing, unless the
parties otherwise agree, shall be held at 10:00 a.m. on the second Business Day
after the last to be fulfilled or waived of such conditions (other than those
conditions that by their nature are to be satisfied at the Closing, but subject
to the fulfillment or waiver of such conditions) is satisfied or waived, at the
offices of Pierce Atwood LLP, Portland, Maine, or at such other place as the
parties hereto otherwise agree.

ARTICLE
VII

CONDITIONS
TO OBLIGATIONS OF

THE BUYER TO CONSUMMATE THE TRANSACTION

The obligations of
the Buyer to be performed at the Closing shall be subject to the satisfaction
or Buyer’s waiver, at or prior to the Closing, of the following conditions:

7.1           Representations and
Warranties; Compliance with Covenants. 
The representations and warranties of the Sellers contained herein shall
be true and correct (without giving effect to any limitation as to “materiality”
or “Material Adverse Effect” or similar terms set forth therein) both as of the
date of this Agreement and on and as of the Closing Date with the same force
and effect as though made on and as of the Closing Date (except for those
representations and warranties that are expressly limited by their terms to
dates or times other than the Closing Date, which representations and warranties
need only be true and correct as of such other date or time), except where the
failure to be so true and correct individually or in the aggregate with all
other such failures, does not have and would not reasonably be expected to have
a Material Adverse Effect on either Resort. 
The Sellers shall have performed and complied in all material respects
with all covenants and agreements required hereby to be performed or complied
with by them on or prior to the Closing Date. 
ASC and SKI shall have delivered to the Buyer a certificate, dated the
date of the Closing and signed by officers of ASC and SKI, to the foregoing
effect.

7.2           No Material Adverse
Effect.  Since the date hereof, there
shall have occurred no change, effect, condition, event or circumstance which
has had or would reasonably be expected to, individually or in the aggregate,
have a Material Adverse Effect on either Resort.

7.3           No Injunction.  No Judgment shall have been rendered in any
Litigation which has the effect of enjoining the consummation of the
transactions contemplated by this Agreement, and no Litigation shall be pending
that would reasonably be expected to result in such a Judgment.

 34
 

7.4           Approvals.  All Approvals required under the HSR Act
necessary for the consummation of the transactions contemplated by this
Agreement shall have been obtained, and all applicable waiting periods
thereunder shall have expired or been terminated.

7.5           Release of Liens.  On or prior to Closing, the Sellers shall
have effected the release of (i) all Liens securing the ASC-Level Financings
and (ii) all other Liens (other than Permitted Exceptions and any Liens
relating to the Capital Leases) securing monetary obligations.

7.6           Assignment.  ASC and SKI, as applicable, shall have
delivered to the Buyer stock certificates representing all of the outstanding
shares of the Stock and executed stock powers, in form and substance reasonably
satisfactory to the Buyer, concerning the Stock (the “Assignment”).

7.7           Related Documents.  The Sellers and the Companies shall have
executed and delivered all Related Documents required to be executed by them at
or prior to the Closing.

7.8           FIRPTA.  The Buyer shall have received a statement
from ASC that it is not a “foreign person” within the meaning of Section 1445
of the Code.

7.9           Resignations.  On the Closing Date, the Sellers shall cause
to be delivered to the Buyer duly signed resignations, effective immediately
after the Closing, of all directors of the Companies and their respective
Subsidiaries and all officers of the Companies which are not on any Company’s
payroll.

7.10         Settlement of Accounts.  On or prior to the Closing Date, all of the
accounts payable and other obligations owing from any Company to ASC or any of
its Affiliates shall have been cancelled or forgiven and, following the Closing
Date, the Companies shall have no obligation or liability in respect thereof.

7.11         Specimen Title
Policies.  Provided that Buyer has
taken all customary and necessary actions for the issuance of the title
policies, including without limitation satisfying the requirements of the Title
Company within the control and reasonably required to be satisfied on the part
of Buyer, Title Company shall have committed and be prepared to deliver
contemporaneously with the Closing, at the Buyer’s sole expense, an Owner’s
Policy of Title Insurance materially in accordance with the Specimen Title
Policies and with no exceptions to title other than as set forth in the
Specimen Title Policies or the Permitted Exceptions.  Sellers hereby covenant to satisfy all
requirements of the Title Company within the control of and reasonably required
to be satisfied on the part of Sellers, including without limitation all
actions required to be performed by Sellers pursuant to this Agreement.

7.12         Approval of Documentation.  The form and substance of all certificates,
instruments, opinions and other documents delivered to Buyer under this
Agreement shall be satisfactory in all reasonable respects to Buyer and its
counsel.  

 35
 

7.13         Opinion and
Certificates.

(a)           Buyer shall have
received an opinion of counsel to ASC, SKI and the Companies as to (i) the due
organization and good standing of each such entity under the laws of its
jurisdiction of incorporation, (ii) the due authorization by all necessary
corporate action on the part of each such entity of the execution and delivery
of this Agreement and the consummation of the transactions contemplated hereby,
(iii) no knowledge of any litigation or investigation against the Sellers
(relating to or affecting any Company, its Subsidiaries, the Resorts or the
transaction contemplated by this Agreement) or any Company or its Subsidiaries
and (iv) no default under or violation of any articles of incorporation or
bylaws of any of the Sellers or the Companies and their Subsidiaries.

(b)           Buyer shall have
received tax clearance certificates with respect to each of the Companies and
their respective Subsidiaries from the Maine Department of Revenue Services.

(c)           Buyer shall have
received copies of the approvals of Governmental Authorities that are required
for the consummation of the transactions contemplated by this Agreement and
which are listed on Section 7.13(c) of the Seller Disclosure Letter.

ARTICLE
VIII

CONDITIONS
TO OBLIGATIONS OF

THE SELLERS TO CONSUMMATE THE TRANSACTION

The obligations of
the Sellers to be performed at the Closing shall be subject to the satisfaction
or waiver, at or prior to the Closing, of the following conditions:

8.1           Representations and
Warranties; Compliance with Covenants. 
The representations and warranties of the Buyer contained herein shall
be true and correct (without giving effect to any limitation as to “materiality”
or “Material Adverse Effect” or similar terms set forth therein) both as of the
date of this Agreement and on and as of the Closing Date with the same force
and effect as though made on and as of the Closing Date (except for those
representations and warranties that are expressly limited by their terms to
dates or times other than the Closing Date, which representations and
warranties need only be true and correct as of such other date or time), except
where the failure to be so true and correct, individually or in the aggregate
with all other such failures, does not have and would not reasonably be
expected to have a Material Adverse Effect on the Buyer.  The Buyer shall have performed and complied
in all material respects with all material covenants and agreements required
hereby to be performed or complied with by it on or prior to the Closing Date.  The Buyer shall have delivered to ASC, a
certificate, dated the date of the Closing and signed by an officer of the
Buyer, to the foregoing effect.

8.2           No Injunction.  No Judgment shall have been rendered in any
Litigation which has the effect of enjoining the consummation of the transactions
contemplated by this Agreement

 36
 

and no Litigation shall
be pending that would reasonably be expected to result in such a Judgment.

8.3           Approvals.  All Approvals required under the HSR Act for
the consummation of the transaction contemplated by this Agreement shall have
been obtained, and all applicable waiting periods thereunder shall have expired
or been terminated.  The shareholders of
ASC shall have duly authorized the execution and delivery of this Agreement and
the consummation of the transactions contemplated hereby.  Twenty (20) days shall have passed since the
date that ASC mailed an information statement pursuant to Section 14(c) of the
Securities Exchange Act of 1934 providing notification of shareholder approval
of the transaction contemplated by this Agreement (an “Information Statement”)
to its shareholders.  ASC covenants that it will promptly submit a draft
Information Statement to the Securities and Exchange Commission and (a) shall
promptly send such Information Statement to its shareholders after the
Securities and Exchange Commission declines review of such Information
Statement or (b) if the Securities and Exchange Commission does review and
comment on such Information Statement, shall diligently pursue finalization of
such Information Statement and mail such Information Statement promptly
thereafter.

8.4           Settlement of
Accounts.  On or prior to the Closing
Date, all of the accounts receivable and other obligations owing to any Company
from ASC or any of its Affiliates shall have been cancelled or forgiven and,
following the Closing Date, ASC and any such Affiliate shall have no obligation
in respect thereof.

8.5           Related Documents.  The Buyer shall have executed and delivered
all Related Documents required to be executed by them at or prior to the
Closing.

8.6           Letters of Credit.  The Buyer shall have provided substitute
letters of credit for each of those letters of credit furnished by (or for the
benefit of) SMC and SRSC and listed on Section 8.6 of the Seller Disclosure
Letter (the “Seller LCs”), and each of the Seller LCs shall have been
unconditionally released by the beneficiary thereof.

ARTICLE
IX

COVENANTS

9.1           Regulatory Filings,
Etc.  As soon as practicable after
the date hereof (and in any event no later than five (5) Business Days after
the date hereof), the parties hereto shall make all filings with the
appropriate Governmental Agencies of the information and documents required or
contemplated by the HSR Act and the FCC and make application for all required
Approvals thereunder or therewith with respect to the transactions contemplated
by this Agreement.  The parties hereto
shall keep each other apprised of the status of any communications with, and
inquiries or requests for information from, such Governmental Agencies, in each
case, relating to the transactions contemplated hereby.  The parties hereto shall each use their
respective commercially reasonable best efforts to comply as expeditiously as
possible in good faith with all

 37
 

lawful requests of the
Governmental Agencies for additional information and documents pursuant to such
Laws.

9.2           Injunctions.  If any court having jurisdiction over any of
the parties hereto issues or otherwise promulgates any restraining order,
injunction, decree or similar order which prohibits the consummation of any of
the transactions contemplated hereby or by any Related Document, the parties
hereto shall use their respective commercially reasonable efforts in good faith
to have such restraining order, injunction, decree or similar order dissolved
or otherwise eliminated as promptly as possible and to pursue the underlying
Litigation diligently and in good faith. 
Notwithstanding anything to the contrary contained in this Agreement,
nothing contained in this Section 9.2 shall limit the respective rights of the
parties to terminate this Agreement in accordance with the terms of Section
12.1 or shall limit or otherwise affect the respective conditions to the
obligations of the parties set forth in Articles VII and VIII hereof.

9.3           Access to
Information.  Between the date of
this Agreement and the Closing Date, the Sellers shall, and shall cause their
Affiliates (to the extent reasonably required) to, upon reasonable request by
the Buyer, provide the Buyer, the Buyer’s lenders and their respective
employees, counsel, accountants and other representatives and advisors
(collectively, the “Representatives”) full access, during normal
business hours on reasonable notice (and at such other times as Buyer
reasonably requests) and under reasonable circumstances, to any and all
premises, properties, Contracts, commitments, books and records and other
information exclusively of or relating exclusively to the Stock or the
Companies and their properties and assets, or relating to the status of any
filings with Governmental Authorities made in connection with the transactions
contemplated by this Agreement (the “Company Subject Matter”); provided,
however, that the Sellers shall use their respective commercially
reasonable efforts to provide to the Buyer and its lenders any such information
that does not relate exclusively to the Company Subject Matter to the extent
such information can be segregated without undue effort from information
relating to the Sellers or their Affiliates and that is not otherwise
confidential or of a competitive nature; provided, further, that
such access may be limited to the location at which the relevant information is
normally maintained, shall not unreasonably interfere with the operations of
the Companies or their Affiliates, and shall be limited to the extent
reasonably determined to be required by the applicable law.  In furtherance of the foregoing but subject
to the limitations of this Section 9.3, the Sellers shall, and shall cause each
Company’s Subsidiaries to, permit the Buyer, the Buyer’s lenders and their
respective Representatives to have reasonable access to the Real Property to
perform, at the Buyer’s expense, any environmental testing that the Buyer
reasonably deems appropriate, including, without limitation, a Phase I
environmental site assessment of any such property pursuant to ASTM Standard E
1527-05.  Prior to the Closing Date,
neither the Buyer nor any of its Representatives shall contact or make
inquiries to any governmental agencies (other than as contemplated by Articles
VII and VIII hereof) in connection with the transactions contemplated by this
Agreement without the prior written consent of Sellers.  Sellers shall promptly notify Buyer of any
event or circumstance that could reasonably be expected to cause Sellers to
breach any representation, warranty or covenant contained in this Agreement and
promptly commence and diligently pursue reasonable actions to prevent or cure
the same.

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9.4           No Extraordinary
Actions by the Sellers.  In each case
except as disclosed on Section 9.4 of the Seller Disclosure Letter, or
consented to or approved in writing by the Buyer (which consent or approval
shall not be unreasonably withheld, conditioned, or delayed), or contemplated
by this Agreement or the Related Documents from the date hereof until the
Closing, the Sellers shall:

(a)           cause the Companies and
their respective Subsidiaries to conduct their respective businesses in the
ordinary course and in accordance, in all material respects, with their
respective past policies and procedures;

(b)           not amend or otherwise
change the Certificate of Incorporation or bylaws or other organizational
documents of any Company or any of its Subsidiaries;

(c)           not permit any Company
or any of its Subsidiaries to admit, or undertake to admit, any new stockholders,
nor issue or sell any stock or other securities of any Company or any of its
Subsidiaries or any options, warrants or rights to acquire any such stock or
other securities or repurchase or redeem any stock or other securities of any
Company;

(d)           not split, combine or
reclassify any shares of any Company’s or any Subsidiary’s capital stock; or
declare, set aside or pay any dividend or other distribution (whether in cash,
stock or property or any combination thereof) in respect of such capital stock;

(e)           cause the Companies and
each of their respective Subsidiaries not to take any action with respect to,
or make any material change in its accounting or Tax policies or procedures,
except as may be required by changes in generally accepted accounting principles
upon the advice of its independent accountants or as required by the Securities
and Exchange Commission (the “SEC”) or any securities exchange;

(f)            cause the Companies
and their respective Subsidiaries not to make or revoke any material Tax
election or settle or compromise any material Tax liability, or amend any
material Tax Return;

(g)           comply with and not
take any action or fail to take any action which would constitute a material
breach or default under any of (i) the Certificate of Incorporation or bylaws
or other organizational documents of any Company or any of its Subsidiaries,
(ii) any Real Property Lease, (iii) any other material Lease, or (iv) any other
Material Contract and/or any material judgment, order or other writing with the
force of Law;

 39
 

(h)           not dispose of, pledge,
hypothecate, encumber, transfer or assign any of the Stock or the equity
securities of any Subsidiary of any Company, nor any material assets of any
Company or any of its Subsidiaries;

(i)            cause the Companies
and their respective Subsidiaries not to acquire, lease or license any assets
or property, other than purchases of assets in the ordinary course of business,
or merge or consolidate with any entity;

(j)            not take any action or
omit to take any action for the purpose of directly or indirectly preventing,
materially delaying or materially impeding the consummation of the transactions
contemplated by this Agreement;

(k)           maintain in full force
and effect the casualty insurance policies currently in effect with respect to
the Real Property and all other Insurance Policies, and shall deliver to the
Buyer, upon request, reasonable evidence of same in the form of certificates of
such insurance;

(l)            not terminate, amend
or modify any Real Property Lease, material Lease, or any other Material
Contract, nor enter into any new or additional Material Contracts of any type,
nature or description, except in the ordinary course of business and in
accordance with past practice;

(m)          not undertake any
material capital improvement projects nor make any material additions,
improvements or renovations to existing facilities and/or equipment;

(n)           not institute or
settle, except for settlements which do not exceed $100,000 in the aggregate or
are claims which are fully covered by insurance, except for applicable
self-insured retentions under existing insurance policies, any Litigation;

(o)           not create, incur or
assume any short-term Indebtedness (including obligations in respect of capital
leases) on behalf of any Company or any Subsidiary, other than in the ordinary
course of business, or create, incur or assume any long-term Indebtedness, and
not assume, guarantee, endorse or otherwise become liable or responsible
(whether directly, contingently or otherwise) for the obligations of any other
Person, or make any loans, advances or capital contributions to, or investments
in, any other Person;

(p)           not enter into, adopt
or amend in any respect any Company Plan or (except for annual adjustments in
the ordinary course of business consistent with past practice) increase in any
material respect the compensation or benefits of, or modify the employment
terms of, its directors, officers or employees, generally or individually, or
pay or promise to pay any bonus or

 40
 

benefit to its directors,
officers or employees (except as required by the Company Plans in accordance
with their terms immediately prior to the execution of this Agreement) or hire
any new officers, or, except in the ordinary course of business, any new
employees, nor terminate the employment of or reassign any employees other than
non-officer employees in the ordinary course of business consistent with past
practice;

(q)           not increase the
compensation or benefits payable under any existing employment, severance or
termination policies or agreements, or enter into any employment, deferred
compensation, severance or other similar agreement (or amend any such existing
agreement) with any director, officer or employee of any Company or any
Subsidiary (except as required by applicable Law), except for anniversary date
adjustments for at-will employees;

(r)            not enter into any
collective bargaining agreement or similar labor agreement, or renew, extend or
renegotiate any existing collective bargaining agreement or similar labor
agreement; and

(s)           not take any action
that would make any representation or warranty of Sellers hereunder untrue in
any material respect;

(t)            take all commercially
reasonable actions to cause the Companies and their Subsidiaries to preserve
their organizational structures and their goodwill;

(u)           exercise commercially
reasonable efforts to cause the Companies and their Subsidiaries to maintain
their properties and assets in good working order (ordinary wear and tear
excepted);

(v)           exercise commercially
reasonable efforts to cause the Companies and their Subsidiaries to comply in
all material respects with all applicable Laws;

(w)          exercise commercially
reasonable efforts to cause the Companies and their Subsidiaries to maintain
their books and records in a consistent manner; and

(x)            not agree to do
anything prohibited by this Section 9.4.

9.5           Commercially
Reasonable Efforts; Further Assurances.

(a)           Upon the terms and
subject to the conditions hereof (including without limitation, Sections 9.2
and 13.3), the Sellers and the Buyer each agree, and agree to cause each of
their respective Affiliates, to use their respective commercially reasonable
efforts in good faith

 41
 

to take or cause to be
taken all actions and to do, or cause to be done, all things necessary, proper
or advisable to ensure that the conditions set forth in Articles VII and VIII
are satisfied and to consummate and make effective the transactions
contemplated by this Agreement and the Related Documents insofar as such
matters are within their respective control.

(b)           Except as otherwise
expressly provided for in this Agreement, the parties hereto shall provide such
information and cooperate fully with each other in making such applications,
filings and other submissions which may be required or reasonably necessary in
order to obtain all approvals, consents, authorizations, releases and waivers
as may be required under this Agreement and the Related Documents as conditions
to the parties’ Closing obligations.

(c)           Except as otherwise
expressly provided for in this Agreement, the parties hereto shall promptly
take all actions necessary to make each filing, including any supplemental
filing, which either of them may be required to make with any Governmental
Agency as a condition to or consequence of the consummation of the transactions
contemplated by this Agreement or any Related Document.

(d)           On or prior to the
Closing, the parties hereto shall execute and deliver to each other the Related
Documents.

(e)           The Sellers shall, to
the extent permitted by applicable Law, use their commercially reasonable
efforts to assist and cooperate with the Buyer in making such arrangements as
would permit the continued sales of alcoholic beverages by the Companies at the
Resorts following the Closing and pending the issuance of a new liquor license
to the Companies reflecting the transactions contemplated by this Agreement,
including assisting with transfer applications; and (ii) in causing the
transfer of other operational permits used in the conduct of the Companies’ and
their respective Subsidiaries’ businesses, including explosive permits, food
service licenses and permits, FCC permits, Public Utilities Commission permits
and day care licenses.

(f)            [Intentionally
omitted.]

(g)           The Buyer agrees to
cause the Companies to honor ASC’s obligations under ASC’s gift cards, Peaks
Rewards Coupons/First Edge Visa Rewards Coupons (until their stated expiration
date), Edge Frequent Skier Points and single-day complimentary lift ticket
vouchers, as well as obligations arising in the 2006-07 ski season under
ASC’s snow guaranty and season pass refund programs to customers who purchased
their passes through one of the Resorts. 
ASC will regularly and promptly reimburse the Buyer for ASC issued gift
cards and Peaks Rewards Coupons to the extent redeemed at the Resorts after the
Closing.  Each of ASC and the Companies
will provide access to their respective systems to the other parties to enable

 42
 

them to track the usage
of such cards, tickets and passes.  The
manner of reimbursement and access described above shall be agreed upon in good
faith by ASC and the Buyer.

(h)           Subject to compliance
by the Sellers with any proprietary rights, confidentiality or similar
regulations or agreements, the Sellers shall transfer, or shall cause to be
transferred, to each Company, at or prior to the Closing, all data and all
right, title and interest to such data that relates exclusively to such Company
and is maintained in electronic format by ASC or any of its Affiliates,
including, without limitation, marketing data and customer lists (including
skiers and lodging guests) for the past three years, and shall not retain any
of such data for the use of ASC or for any other reason; provided, however,
that the Sellers shall use their respective commercially reasonable efforts to
transfer to each Company any such data that does not relate exclusively to such
Company to the extent such data can be segregated from information relating to
the Sellers or their Affiliates (other than such Company) and that is not
otherwise subject to a proprietary rights, confidentiality or similar
agreement.

(i)            To the extent that,
following the Closing, none of the Companies shall be able to continue to use
any of the licenses set forth on Section 9.5(i) of the Seller Disclosure
Letter, the Sellers agree to use their commercially reasonable efforts
(excluding the payment of money or the delivery of any item of value) to assist
such Company in replacing such licenses and/or to provide such Company with the
benefits of such licenses (including allowing such Company to act as
sub-licensee to the extent the underlying license permits).

(j)            The Buyer agrees to
cause the Companies to honor ASC’s obligations under the partnership marketing
arrangements set forth on Section 9.5(j) of the Seller Disclosure
Letter.  The parties agree to act in good
faith to address any such marketing arrangements which continue beyond the
2006/2007 ski season.

(k)           The Sellers shall use
their commercially reasonable efforts to obtain estoppel certificates, in form
and substance reasonably satisfactory to the Buyer, from all third parties to
the contracts listed on Section 9.5(k) of the Seller Disclosure Letter.

(l)            The Buyer agrees to
cause the Companies to honor ASC’s obligations with respect to the ski passes
described in Section 3.7(a) of the Seller Disclosure Letter, and to
cause any subsequent owner or operator of either Resort to assume such
obligations in writing.

9.6           Use of Names; Name
Change.

(a)           As soon as reasonably
practicable after the Closing (and in no event later than sixty (60) days after
the Closing), the Buyer shall cease (and cause the Companies to cease) to use
any written materials, including, without limitation, labels, packing
materials, letterhead, advertising materials and forms, which include the words
identified on Section 9.6(a) of the

 43
 

Seller Disclosure Letter
(collectively, the “Seller Trade Names”); provided, however,
that the Companies may use inventory, checks, application forms, product
literature and sales literature (but not letterhead, business cards or the
like), trail maps, signs or the like, each as in existence as of the Closing
Date, until the earlier of the exhaustion of such materials or the opening of
the 2007/2008 ski season.  Except as
specifically provided herein, Buyer agrees that it shall not hereafter permit
the Companies to adopt or use any trade name, trademark or service mark
incorporating any of the Seller Trade Names or any trade name, trademark or
service mark likely to indicate endorsement or sponsorship by, or any
connection with, the Sellers or any of their Affiliates, including the name or
mark “American Skiing” or any name or mark similar thereto.

(b)           As soon as commercially
reasonably practicable after the Closing (and in no event later than sixty 60
days after the Closing), ASC shall, and shall cause its Affiliates to, cease to
use any written materials, including labels, packing materials, letterhead,
advertising materials and forms, which include the words identified on Section
9.6(b) of the Seller Disclosure Letter (collectively, the “Buyer Trade
Names”); provided, however, that ASC and its Affiliates may
use inventory, checks, application forms, product literature, sales literature
(but not letterhead, business cards or the like), trail maps, signs and the
like, each as in existence as of the Closing Date, until the earlier of the
exhaustion of such materials or the opening of the 2007/2008 ski season; and, provided,
further, that ASC and its Affiliates shall be entitled to utilize “Perfect
Turn” in connection with the operation of the Canyons Resort through the
2009-10 ski season.  .  Except as specifically provided herein, the
Sellers agree that they and their Affiliates shall not hereafter adopt or use
any trade name, trademark or service mark incorporating any of the Buyer Trade
Names or any trade name, trademark or service mark likely to indicate
endorsement or sponsorship by, or any connection with, Buyer or any of its
Affiliates.

(c)           ASC shall, and shall
cause its Affiliates to, cease and desist the use of the internet domain names “Sugarloaf.com”
and “Sundayriver.com” and any other domain names containing the words “Sugarloaf”
or “Sunday River” at the Closing Date and all times thereafter.

9.7           Confidentiality;
Publicity.  Each party shall hold,
and shall use its commercially reasonable efforts to cause its employees and
agents to hold, in strict confidence all information concerning the other
parties or their Affiliates furnished to it by such other Persons, all in
accordance with the Confidentiality Agreement, as if originally a party thereto
who was required to keep information confidential except that the Sellers shall
maintain such information with respect to each Company as confidential only to
the extent such information is specific to such Company and does not relate to
the operations of ASC or any of their Affiliates following the Closing
Date.  Any release to the public of
information with respect to the matters contemplated by this Agreement
(including any termination of this Agreement) shall be made only in the form
and manner approved jointly by ASC and Buyer, provided that if a party is
required by law to make any disclosure concerning such matters, such party
shall discuss in good faith with the other party the form and content of such
disclosure prior to its release (but such release shall not require the prior
approval of the other parties).

 44

9.8           Transition.  Without limiting the agreements set forth in
Sections 9.9 and Article XI, for a period of six (6) months following the
Closing Date, ASC shall, and the Buyer shall and shall cause the Companies to,
cooperate in good faith to effect an orderly transition in the operation of the
Resorts, provided, that no party shall be required to expend any funds or enter
into any contractual commitments in performing its obligations under this
Section 9.8.  In connection with the
foregoing, at the Closing the Buyer shall cause the Companies to, and ASC
shall, execute and deliver a Transition Services Agreement substantially in the
form attached hereto as Exhibit C.

9.9           Access to Records
After the Closing.  The Sellers and
the Buyer recognize that subsequent to the Closing they may have information
and documents which relate to the Companies, the Resorts, their employees,
their properties and Taxes that relate to the period prior to Closing and to
which the other party may need access subsequent to the Closing.  Each such party shall provide the other party
and their Representatives commercially reasonable access, during normal
business hours on reasonable notice (and at such other times as such other
party reasonably requests) and under reasonable circumstances, to all such
information and documents, and to furnish copies thereof, which such other
party reasonably requests.  The Buyer and
the Sellers agree that prior to the destruction or disposition of any such
books or records pertaining to the Companies at any time within three (3) years
after the Closing Date (or, in any matter involving Taxes, within seven (7)
years after the Closing Date), each such party shall provide not less than
thirty (30) calendar days prior written notice to the other such party of any
such proposed destruction or disposal. 
If the recipient of such notice desires to obtain any such documents, it
may do so by notifying the other party in writing at any time prior to the
scheduled date for such destruction or disposal.  Such notice must specify the documents which
the requesting party wishes to obtain. 
The parties shall then promptly arrange for the delivery of such
documents.  All out-of-pocket costs associated
with the delivery of the requested documents shall be paid by the requesting
party.  Notwithstanding any provision of
this Agreement or the Related Documents to the contrary, in no event shall the
Sellers or their Affiliates be required to provide the Buyer with access to or
copies of the Sellers’, or their Affiliates’ Tax Returns to the extent such Tax
Returns do not relate to the Companies and in no case shall the Buyer have any
right to review any Tax Returns other than pro forma Tax Returns of the
Companies.

9.10         No Employee
Solicitation.  For a period of 12
months following the Closing, without the prior written agreement of the other
parties, (a) the Buyer and its Affiliates shall not, directly or indirectly,
solicit for employment or employ or cause to leave the employ of ASC or its
Affiliates any individual that is serving at such time as an officer of ASC or
its Affiliates; and (b) ASC and its Affiliates shall not, directly or
indirectly, solicit for employment any individual that is employed at such time
by any Company or any of its Subsidiaries provided that the use of a general
solicitation (such as advertisement) not specifically directed to applicable
employees will not be deemed to be a violation of the no solicitation provision
of this Section 9.10.

9.11         Interim Operations of
the Buyer.  Prior to the Closing,
unless the Sellers have otherwise consented in writing thereto, the Buyer shall
not:

 45
 

(a)           take any action or omit
to take any action for the purpose of directly or indirectly preventing,
materially delaying or materially impeding the consummation of the transactions
contemplated by this Agreement;

(b)           directly or indirectly
authorize any of, or commit or agree, in writing or otherwise, to take any
action or actions which would make any representations of the Buyer set forth
in this Agreement untrue or incorrect in any material respect; and

(c)           enter into any binding
agreement to do any of the foregoing.

9.12         No Solicitation.  From the date hereof until the earlier of the
Closing or the termination of this Agreement, Sellers shall not and shall cause
each of their Representatives not to, directly or indirectly, (a) initiate,
solicit, encourage or otherwise facilitate any inquiry, proposal, offer or
discussion with any party (other than the Buyer) concerning any merger,
reorganization, consolidation, recapitalization, business combination,
liquidation, dissolution, share exchange, sale of stock, sale of material
assets or similar business transaction involving the Company, its Subsidiaries
or any division of any Company, (b) furnish, or make available, any non-public
information concerning the business, properties or assets of any Company, its
Subsidiaries or any division of any Company to any Person (other than the
Buyer) or (c) engage in discussions or negotiations with any Person (other than
the Buyer) concerning any such transaction. 
Sellers shall immediately notify any Person with which discussions or
negotiations of the nature described above were pending that the Sellers are
terminating such discussions or negotiations. 
If the Sellers receive any inquiry, proposal or offer of the nature
described above, the Sellers shall, within two Business Days after such
receipt, notify the Buyer of such inquiry, proposal or offer, including the
general terms of such inquiry, proposal or offer.

9.13         Intercompany
Guarantees.  Prior to the Closing
Date, ASC shall use its commercially reasonable efforts to cause the Companies
and any of their respective Subsidiaries to be removed or released, effective
as of the Closing, or, if not possible, as soon thereafter as reasonably practicable,
in respect of all obligations of ASC or any of its Affiliates under each of the
guarantees and letters of comfort obtained by the Companies or any of their
respective Subsidiaries for the benefit of ASC and its Affiliates (other than
the Companies and their respective Subsidiaries) prior to the Closing, and for
all obligations of the Companies and their respective Subsidiaries in respect
thereof to be terminated, with, in each case, such substitution, removal,
release and termination to be in form and substance reasonably satisfactory to
the Buyer.  ASC agrees to indemnify and
hold harmless the Buyer and its Affiliates (including the Companies and their
respective Subsidiaries) from and against and in respect of Indemnifiable
Losses incurred by the Buyer and its Affiliates (including the Companies and
their respective Subsidiaries) under or pursuant to any such guarantee or
letters of comfort.  Prior to the Closing
Date, the Companies shall use their commercially reasonable efforts and
following the Closing, the Buyer shall use its commercially reasonable efforts,
to cause ASC and any of its Affiliates to be removed or released, effective as
of the Closing, or, if not possible, as soon thereafter as reasonably
practicable, in respect of all obligations of the Companies or any of their
respective Subsidiaries under each of the guarantees and letters of comfort
obtained by ASC or any of its

 46
 

Affiliates for the
benefit of the Companies and their respective Subsidiaries prior to the
Closing, and for all obligations of ASC and its Affiliates in respect thereof
to be terminated, with, in each case, such substitution, removal, release and
termination to be in form and substance reasonably satisfactory to ASC.  The Buyer agrees to indemnify and hold
harmless ASC and its Affiliates from and against and in respect of
Indemnifiable Losses incurred by ASC and its Affiliates under or pursuant to
any such guarantee or letters of comfort.

9.14         Third Party Contracts
and Cross Default Provisions.

(a)           The parties agree that,
to the extent that ASC or any of its Affiliates provides any Company and any of
their respective Subsidiaries the ability to receive services or use assets
that any Company or any of its Subsidiaries prior to the Closing receives or
uses pursuant to a contract of ASC or any of its Affiliates with a third party,
the parties will cooperate with each other to cause such Companies and any of
their respective Subsidiaries, as applicable, to directly enter into a new
contract with such third party with respect to such services or assets to the
extent the Buyer desires that such Companies and their respective Subsidiaries
continue to receive such services from, or use such assets of, such third party
after the Closing, which cooperation shall be deemed to include, without
limitation, ASC requiring a third party, to the extent it has the power to do
so under any such contract, to split such contract into two separate contracts,
one with ASC or its Affiliate and the other with such Company.  The
parties agree that, to the extent that any of the Companies or any of their
respective Subsidiaries provides ASC and any of its Affiliates (other than the
Companies and their respective Subsidiaries) prior to the Closing the ability
to receive services or use assets that ASC or any of its Affiliates (other than
the Companies and their respective Subsidiaries) receives or uses pursuant to a
contract of any of the Companies or any of their respective Subsidiaries with a
third party, the parties will cooperate with each other to cause ASC and any of
its Affiliates (other than the Companies and their respective Subsidiaries), as
applicable, to directly enter into a new contract with such third party with
respect to such services or assets to the extent ASC desires that ASC and the
Affiliates (other than the Companies and their respective Subsidiaries)
continue to receive such services from, or use such assets of, such third party
after the Closing, which cooperation shall be deemed to include, without
limitation, a Company requiring a third party, to the extent it has the power
to do so under any such contract, to split such contract into two separate
contracts, one with ASC or its Affiliate and the other with such Company.

(b)           Prior to and after the
Closing Date, ASC shall use its commercially reasonable efforts to cause the
third party(ies) to each contract with any of the Companies or any of their
respective Subsidiaries which have cross-default or cross-termination
provisions referring to one or more contracts between such third party and/or
one or more of its Affiliate(s), and ASC and/or one or more of its Affiliates
(excluding the Companies and their respective Subsidiaries), to agree to the
removal from such contract of the cross-default or cross-termination provisions
which relate to such contracts with ASC and/or one or more of its
Affiliate(s).  Prior to the Closing Date,
ASC, and following the Closing Date, the Buyer, shall use their commercially
reasonable efforts to cause the third party(ies) to each contract with ASC and/or
one or more of its Affiliates (excluding the Companies or any of their
respective Subsidiaries)

 47
 

which have cross-default
or cross-termination provisions referring to one or more contracts between such
third party and/or one or more of its Affiliate(s), and any of the Companies or
any of their respective Subsidiaries, to agree to the removal from such
contract of the cross-default or cross-termination provisions which relate to
such contracts with any of the Companies or any of their respective Subsidiaries.

9.15         Patriot Act.  The Sellers and their respective officers and
principals shall not transfer the proceeds obtained as a result of this
Agreement to any person or entity listed on the Office of Foreign Assets
Control list as “Terrorists” and “Specially Designated Nationals and Blocked
Persons”, or otherwise be in violation of the International Money Laundering
Abatement and Financial Anti-Terrorism Act of 2001. 

9.16         Change in Control
Bonuses.  On or prior to the Closing,
ASC agrees to pay to the applicable individuals directly, and to indemnify the
Purchasers and to assume all obligations of SSRC and SMC with respect to, or
relating to, the Change in Control Bonuses payable under the agreements listed
in Section 3.15(i)(2) of the Seller Disclosure Letter, provided, however, that
SSRC, SMC and the Purchasers shall remain responsible for (and ASC shall not be
responsible for) any Severance Payment (as defined in such agreements) which
may be due or become due to the applicable individuals under such agreements.

ARTICLE
X

SURVIVAL
AND INDEMNIFICATION

10.1         Survival.  The representations and warranties contained
in Articles III and IV hereof and the covenants and agreements of the parties
contained herein to be performed on or prior to the Closing shall terminate
upon consummation of the Closing; provided, however, that the
representations and warranties in Sections 3.1, 3.2, 3.4, 3.9, 3.12, 3.14,
3.15, 3.16, 3.17, 3.19(a)-(c), 3.19(e)-(h), 3.24 and 4.2 and 4.6) shall survive
the Closing for a period of one (1) year. 
The covenants of the Sellers and the Buyer contained in this Agreement
which by their terms require action following the Closing shall survive the
Closing.

Notices for claims in
respect of an inaccuracy in any of the representations or a breach of any of
the warranties which survive the Closing must be received prior to the
expiration of the applicable statute of limitations for such representation or
warranty for any Indemnifiable Losses arising therefrom to be recoverable
hereunder.

10.2         Indemnification by
Sellers, Jointly and Severally. 
Sellers, jointly and severally, shall indemnify and hereby hold harmless
Buyer and its nominees, affiliates, officers, directors, employees and agents
(the “Buyer Indemnitees”) against any loss or liability, in full as such loss
or liability is incurred, suffered as a result of:  (a) any breach of any representation or
warranty made by Sellers in this Agreement or in any other document, instrument
or agreement entered into in connection herewith (subject to Section 10.1
hereof); (b) any breach of any covenant

 48
 

made by Sellers in this
Agreement or in any other document, instrument or agreement entered into in
connection herewith; (c) any loss or liability incurred by Buyer, any of the
Companies or any of their respective Subsidiaries arising out of development
obligations (other than obligations related to maintenance or operations) with
respect to the Summit Hotel at the SRSC Resort; (d) any loss or liability
incurred by Buyer, any of the Companies or any of their respective Subsidiaries
arising out of the matter described in paragraph 3 of Section 3.12 of
the Seller Disclosure Letter (to the extent in excess of (i) any insurance
reimbursement received by a Buyer Indemnitee in connection with such matter and
(ii) the portion of any such settlement or award that benefits SRSC by virtue
of its ownership interest in the Hotel involved in such matter); and (e) any
breach of the Confidentiality Agreement made herein in favor of Buyer; provided
that such indemnification obligation shall only arise with respect to losses
and liability suffered or incurred as a result of any breach of any
representation or warranty (subject to Section 10.1 hereof) to the extent such
losses or liability (which, individually, must be at least $25,000.00) in the
aggregate exceed $1,000,000.00; provided, however, that the liability of
Sellers hereunder, excluding any liability arising pursuant to clause (c) or
clause (d) of this Section 10.2, shall not in the aggregate exceed $2,000,000;
and, provided, further, that with respect to clause (c) of this Section 10.2,
such indemnification obligation shall only arise with respect to losses and
liability to the extent exceeding $250,000, but in no event shall the liability
of the Sellers with respect thereto exceed $1,000,000 in the aggregate and
that, with respect to clause (d) of this Section 10.2, such indemnification
obligation shall apply to all such losses and liability.

10.3         Indemnification by the
Buyer.  Buyer shall indemnify and
hereby hold harmless ASC and each of its Subsidiaries and their nominees,
affiliates, officers, directors, employees and agents (“Seller Indemnitees”)
against any loss or liability, in full as such loss or liability is incurred,
suffered as a result of:  (a) any breach
of any representation or warranty made by Buyer in this Agreement or in any
other document, instrument or agreement entered into in connection herewith
(subject to Section 10.1 hereof); (b) any breach of any covenant made by Buyer
in this Agreement or in any other document, instrument or agreement entered
into in connection herewith; and (c) any breach of the Confidentiality
Agreement made herein in favor of ASC; provided that such indemnification
obligation shall only arise with respect to losses and liability suffered or
incurred as a result of any breach of any representation or warranty (subject
to Section 10.1 hereof) to the extent such losses or liability (which,
individually, must be at least $25,000.00) in the aggregate exceed
$1,000,000.00.

10.4         Limitations on
Indemnification.

(a)           To the extent that a
party hereto shall have any obligation to indemnify and hold harmless any other
Person hereunder, such obligation shall not include lost profits or other
consequential, special, punitive, incidental or indirect damages (and the
injured party shall not recover for such amounts), except to the extent such
amounts are required to be paid to a third party other than an Indemnified
Party or a Person affiliated therewith.

 49
 

(b)           The amount of any loss,
liability, cost or expense for which indemnification is provided under this
Article X shall be net of any amounts actually recovered by a Buyer Indemnitee
or a Seller Indemnitee, as the case may be, under an insurance policy with
respect to such loss, liability, cost or expenses.

(c)           Except as provided in
Article XI and except for fraud, from and after the Closing, the
indemnification obligations set forth in this Article X are the exclusive
remedy of the Indemnitees (a) for any inaccuracy in any of the representations
or any breach of any of the warranties or covenants contained herein or (b)
otherwise with respect to this Agreement, the Company and the transactions
contemplated by this Agreement and matters arising out of, relating to or
resulting from the subject matter of this Agreement, whether based on statute,
contract, tort, property or otherwise, and whether or not arising from the
relevant party’s sole, joint or concurrent negligence, strict liability or
other fault.

10.5         Right to
Indemnification not Affected by Knowledge. 
The right to indemnification, payment of damages or other remedy based
on such representations, warranties, covenants and obligations will not be
affected by any investigation conducted with respect to, or any knowledge
acquired (or capable of being acquired) at any time, whether before or after
the execution and delivery of this Agreement or the Closing Date, with respect
to the accuracy or inaccuracy of or compliance with, any such representation,
warranty, covenant, or obligation. 
Without limiting the scope and effect of the immediately preceding and
following sentences, Buyer will use its best efforts to give ASC notice when
Buyer has actual knowledge that a representation or warranty of ASC is
materially inaccurate.  The waiver of any
condition based on the accuracy of any representation or warranty, or on the
performance of or compliance with any covenant or obligation, or Buyer’s notice
to ASC with respect to the inaccuracy or lack of accuracy of any representation
or warranty of ASC will not affect the right to indemnification, payment of
damages, or other remedy based on such representations, warranties, covenants
and obligations.

10.6         Indemnity Escrow.  On the Closing Date, Buyer shall, on behalf
of Sellers, pay from the Initial Purchase Price to Title Company, as agent to
Buyer and Sellers (the “Escrow Agent”), in immediately available funds,
to the account designated by the Escrow Agent (the “Indemnity Escrow Account”),
an amount equal to $2,000,000 (the “Indemnity Escrow Amount”), in
accordance with the terms of this Agreement and the Escrow Agreement,
substantially in the form attached hereto as Exhibit D, which will be
executed at the Closing, by and among Buyer, Sellers and the Escrow Agent (the “Escrow
Agreement”).  Any payment any Seller
is obligated to make to any Buyer Indemnitees pursuant to this Article X shall
be paid first, to the extent there are sufficient funds in the Indemnity Escrow
Account, by release of funds to the Buyer Indemnitees from the Indemnity Escrow
Account by the Escrow Agent within five Business Days after the date notice of
any sums due and owing is given to the Sellers (with a copy to the Escrow Agent
pursuant to the Escrow Agreement) by the applicable Buyer Indemnitee and shall
accordingly reduce the Indemnity Escrow Amount and, second, to the extent the
Indemnity Escrow Amount is insufficient to pay any remaining sums due, then the
Sellers shall be required to pay all of such additional sums due and owing to
the Buyer Indemnitees by wire transfer of immediately available funds within
five Business Days after the

 50
 

date of such notice.  On the first anniversary of the Closing Date,
the Escrow Agent shall release the Indemnity Escrow Amount (to the extent not
utilized to pay Buyer for any indemnification claim) to Sellers, except that
the Escrow Agent shall retain an amount (up to the total amount then held by
the Escrow Agent) equal to the amount of claims for indemnification under this
Article X asserted prior to the first anniversary of the Closing Date but not
yet resolved (“Unresolved Claims”). 
The Indemnity Escrow Amount retained for Unresolved Claims shall be
released by the Escrow Agent (to the extent not utilized to pay Buyer for any
such claims resolved in favor of Buyer) upon their resolution in accordance
with this Article X and the Escrow Agreement.

ARTICLE
XI

TAX
MATTERS

11.1         Tax Indemnification.

(a)           Subject to Section
13.3, from and after the Closing Date, ASC (for purposes of this Article XI
only, the “Tax Indemnifying Party”), shall be responsible for, shall pay
or cause to be paid, and shall indemnify, defend and hold harmless the Buyer
and the Companies and reimburse the Buyer and the Companies for the following
Taxes, to the extent that such Taxes have not been paid as of the Closing Date:
 (i) all Taxes imposed on the Companies
or the Buyer as a result of the operations of the Companies with respect to any
taxable year or period ending on or before the Closing Date; (ii) with respect
to taxable years or periods beginning before the Closing Date and ending after
the Closing Date, all Taxes imposed on the Companies or the Buyer as a result
of the operations of the Companies, which Taxes are allocable to the portion of
such taxable year or period ending on the Closing Date (an “Interim Period”)
(Interim Periods and any taxable years or periods that end on or prior to the
Closing Date being referred to collectively hereinafter as “Pre-Closing
Periods”); (iii) Taxes of any member of any affiliated group of
corporations (as defined in Section 1504 of the Code) with which the Companies
or any of their respective Subsidiaries files or has filed a Tax Return on a
consolidated, combined, affiliated, unitary or similar basis for a taxable year
or period beginning before the Closing Date; (iv) Taxes or other costs of the
Buyer Indemnitees payable as a result of any inaccuracy in or breach of any
representation or warranty made in Section 3.17 of this Agreement or any breach
of any covenant contained in this Article XI, without duplication; and (v) any
Taxes or other payments required to be made after the Closing Date by the
Companies or any of their respective Subsidiaries to any Person under any Tax
sharing, indemnity or allocation agreement or other arrangement in effect prior
to the Closing (whether or not written) with respect to a Pre-Closing Period.

(b)           For purposes of this
Section 11.1, in order to apportion appropriately any Taxes relating to any
taxable year or period that includes an Interim Period, the parties hereto
shall, to the extent permitted under applicable law, elect with the relevant
Tax authority to treat for all purposes the Closing Date as the last day of the
taxable year or period of the Companies.

 51
 

In any case where
applicable law does not permit the Companies to treat the Closing Date as the
last day of the taxable year or period, then, in each such case, the portion of
any Taxes that are allocable to the portion of the Interim Period ending on the
Closing Date shall be: (i) in the case of Taxes that are based upon or related
to income or receipts, deemed equal to the amount that would be payable if the
taxable year or period ended on the Closing Date; and (ii) in the case of Taxes
not described in subparagraph (i) above that are imposed on a periodic basis,
deemed to be the amount of such Taxes for the entire period (or, in the case of
such Taxes determined on an arrears basis, the amount of such Taxes for the
immediately preceding period) multiplied by a fraction the numerator of which
is the number of calendar days in the Interim Period ending on the Closing Date
and the denominator of which is the number of calendar days in the entire
relevant period.

(c)           Subject to Section 11.5
and the limitations contained in Section 11.3(b), payment of any amount by the
Tax Indemnifying Party under this Section 11.1 shall be made within ten (10)
days following written notice by the Buyer or a Company to ASC that a Company
is required to pay such amounts to the appropriate Tax authority; provided,
however, that the Tax Indemnifying Party shall not be required to make
any payment to Buyer or a Company hereunder earlier than five (5) Business Days
before it is due to the appropriate Tax authority.

(d)           All matters relating in
any manner to Tax indemnification obligations and payments shall be governed exclusively
by this Article XI except for provisions regarding notice of claims, which
shall be governed by Section 10.5.

11.2         Tax Refunds.  The Buyer shall pay to ASC all refunds or
credits of Taxes received by Buyer or any Company or any of their respective
Subsidiaries after the Closing Date and attributable to Taxes paid by any
Company or their Subsidiaries (or any predecessor of any Company or their
Subsidiaries) with respect to a Pre-Closing Period, net of any Taxes imposed on
such refund amount, and adjusted to reflect any Tax benefit received by the
Buyer or any Company in connection with the accrual or payment of amounts
pursuant to this Section 11.2.

11.3         Preparation and Filing
of Tax Returns and Payment of Taxes.

(a)           ASC shall be
responsible for the preparation and filing of (i) all income Tax Returns with
respect to the Companies and their respective Subsidiaries for any Tax period
ending on or prior to the Closing Date and (ii) all non-income Tax Returns with
respect to the Companies and their respective Subsidiaries for any Tax period
ending on or prior to the Closing Date, but only to the extent such Tax Returns
are required to be filed on or prior to the Closing Date.  All such Tax Returns shall be prepared and
filed in a manner that is consistent, in all material respects, with the prior
practice of the Companies and their respective Subsidiaries (including, without
limitation, prior Tax elections and accounting methods or conventions made or
utilized by the Companies and their respective Subsidiaries), except as
required by a change in the applicable Law or regulations.

 52
 

(b)           The Buyer shall prepare
and timely file or cause the Companies or their respective Subsidiaries to
prepare and timely file all Tax Returns required to be filed after the Closing
Date other than Tax Returns described as the responsibility of ASC in Section
11.3(a).  All such Tax Returns with
respect to Pre-Closing Periods shall be prepared and filed in a manner that is
consistent, in all material respects, with the prior practice of the Companies
or their respective Subsidiaries (including prior Tax elections and accounting
methods or conventions made or utilized by the Companies or their respective
Subsidiaries), except as required by a change in the applicable Law or regulations.  The Buyer shall deliver all such Tax Returns
with respect to Pre-Closing Periods to ASC for ASC’s review at least forty-five
(45) days prior to the due date (including extensions) of any such Tax
Return.  If ASC disputes any item on such
Tax Return, it shall notify the Buyer of such disputed item (or items) and the
basis for its objection.  The parties
shall act in good faith to resolve any such dispute prior to the date on which
the Tax Return is required to be filed. 
If the parties cannot resolve any disputed item, the item in question
shall be resolved by an independent accounting firm mutually acceptable to ASC
and the Buyer.  The fees and expenses of
such accounting firm shall be borne equally by ASC and the Buyer.

(c)           ASC shall deliver to
Buyer for its review any sales use, real property, transfer or other non-income
Tax Returns of the Companies that are to be filed on or prior to the Closing
Date at least 45 days prior to the due date (including extensions) of any such
Tax Return or within 15 days after the date hereof , whichever is later,
provided that any such Tax Return that is due within 15 days after the date
hereof shall be delivered to Buyer as soon as reasonably practicable, but in
any event prior to the due date (including extensions) of such Tax Return.  If the Buyer disputes any item on a Tax
Return delivered pursuant to the preceding sentence, it shall notify ASC of
such disputed item (or items) and the basis for its objection.  The parties shall act in good faith to
resolve any such dispute prior to the date on which the Tax Return is required
to be filed.  If the parties cannot
resolve any disputed item, the item in question shall be resolved by an
independent accounting firm mutually acceptable to ASC and the Buyer.  The fees and expenses of such accounting firm
shall be borne equally by ASC and the Buyer. 
Notwithstanding the foregoing, nothing in this Section 11.3(c) shall
prevent ASC or the Companies from timely filing any Tax Returns that are due
(including extensions) on or prior to the Closing Date.

11.4         Tax Cooperation.

(a)           For a period of seven
years from and after the Closing, ASC and the Buyer agree to furnish or cause
to be furnished to each other, upon request, as promptly as practicable, such
information (including access to books and records), and assistance relating to
the Companies and their respective Subsidiaries as is reasonably requested for
the filing of any Tax Returns, for the preparation of any audit, and for the
prosecution or defense of any claim, suit or proceeding related to any proposed
adjustment.  Any information obtained
under this Section 11.4(a) shall be kept confidential, except as may be
otherwise necessary in connection with the filing of Tax Returns or claims for
refund or in conducting an audit or other proceeding.  After the expiration of such seven-year
period, the Buyer or ASC, as the case may be, may dispose of

 53
 

such information, books
and records, provided that prior to such disposition, (i) ASC shall give the
Buyer the opportunity, at Buyer’s expense, to take possession of such
information, books and records held by ASC; and (ii) the Buyer shall give ASC
the opportunity, at ASC’s expense, to take possession of such information,
books and records held by the Companies and their respective Subsidiaries.

(b)           The Buyer agrees that
with respect to Pre-Closing Periods, it shall not, on or after the Closing
Date, without the prior written consent of ASC, amend any Tax Return (except as
required by Law), or waive or extend any statute of limitations with respect to
any such Tax Return to the extent such amendment or waiver would increase the
Taxes of any Company or its Subsidiaries for any Pre-Closing Period.  ASC agrees that, with respect to Pre-Closing
Periods, it shall not, on or after the date hereof, without the prior written
consent of Buyer, amend any Tax Return (except as required by Law) of any
Company or its Subsidiaries or the consolidated group of corporations of which
any Company or any Subsidiary is a member, or waive or extend the statute of
limitations with respect to any such Tax Return, to the extent such amendment
or waiver would increase the Taxes of any Company, their Subsidiaries, or Buyer
in a taxable period (or portion thereof) beginning on or after the Closing
Date.

11.5         Tax Audits.

(a)           After the Closing, the
Buyer shall notify ASC in writing (a “Tax Notice”) of any demand or
claim received by the Buyer or any Company from any Tax authority or any other
party with respect to Taxes for which the Tax Indemnifying Party is liable
pursuant to Section 11.1 within ten (10) days of the receipt of such demand or
claim by the Buyer or any Company; provided, however, that a
failure to give such Tax Notice will not affect the rights of the Buyer or any
Company to indemnification under Section 11.1 unless, or except to the extent
that such failure precludes the Tax Indemnifying Parties from contesting such
demand or claim.  Such Tax Notice shall
contain factual information (to the extent known) describing the asserted Tax
liability in reasonable detail and shall include copies of any notice or other
document received from any Tax authority in respect of any such asserted Tax
liability.

(b)           Subject to the
following sentence, ASC may elect to control the conduct, through counsel
chosen by ASC and reasonably acceptable to the Buyer and at ASC’s own expense,
of any audit, claim for refund, or administrative or judicial proceeding
involving any asserted liability with respect to which indemnity may be sought
under Section 11.1, including any contest in respect of an Interim Period (any
such audit, claim for refund, or proceeding relating to an asserted Tax
liability is referred to herein as a “Contest”).  If ASC elects to control a Contest, ASC shall
within thirty (30) calendar days of receipt of the Tax Notice notify the Buyer
in writing of its intent to do so; provided, however, that the
Buyer and the Companies are authorized to file any motion, answer or other
pleading that may be reasonably necessary or appropriate to protect their
interests during such 30 day period.  If
ASC properly elects to control a Contest, then ASC shall have all rights to
settle, compromise and/or concede such asserted liability and the Buyer shall
cooperate and shall cause the Companies (and any of their

 54
 

successors) to cooperate
in each phase of such Contest.  If ASC
does not elect to control the Contest, the Buyer or the Companies may, without
affecting its or any other indemnified party’s rights to indemnification under
this Article XI, assume and control the defense of such Contest with
participation by the Sellers.

(c)           In the event that a
Contest involves an Interim Period (a “Straddle Contest”), the parties
shall endeavor to cause the Contest proceeding to be separated into two or more
separate proceedings, one of which shall involve exclusively the applicable
Interim Period.  In the event that such
separation cannot, after diligent efforts, be achieved, the Buyer and ASC shall
jointly control the Straddle Contest; provided, however, that,
subject to this Section 11.5 generally, the Buyer shall have all rights to make
decisions, settle, compromise and/or concede such asserted liability as relates
to the portion of the taxable period that begins after the Closing Date, and
ASC shall have all rights to settle, compromise and/or concede such asserted
liability as relates to the Interim Period.

(d)           With respect to a
Contest that is described in paragraphs (b) and (c) of this Section, and which
relates to a method of accounting, a recurring item of income, gain, loss,
deduction or credit.  Taxes other than
income Taxes, franchise Taxes, and Transfer and Recording Taxes, ASC’s ability
to settle, compromise and/or concede any asserted liability shall be subject to
the Buyer’s consent, not to be unreasonably withheld, conditioned or delayed,
if ASC’s proposed settlement, compromise or concession would adversely affect
such Tax liability of a Company in a Post-Closing period; provided, however,
if the Buyer does not provide ASC with such consent, and ASC shall pay to the
Buyer the amount that ASC was willing to pay the Taxing authority to settle the
asserted Tax liability, ASC shall be released by the Buyer from all
indemnification obligations thereto pursuant to Section 11.1 and the Buyer
shall assume control over the conduct of such Contest and shall have all rights
if such Contest does not involve any issues for which ASC remains liable under
this Article XI to make decisions, settle, compromise, and/or concede such
asserted liability.

(e)           Notwithstanding
anything contained in this Section 11.5 to the contrary, none of the Buyer or
the Companies shall be required to permit ASC to contest any claim; provided,
however, that the Tax Indemnifying Parties shall have no obligation to
pay, indemnify or reimburse the Buyer or the Companies for any amounts that the
Buyer or the Companies pay without the prior approval of ASC (which may not be
unreasonably withheld or delayed if the related indemnification obligation does
not have a material economic impact on ASC or the Indemnifying Parties) with
respect to a claim ASC timely elects to contest but is not permitted to contest
under this Section 11.5(e).

(f)            Notwithstanding
anything contained in this Section 11.5 to the contrary, ASC shall not, without
the prior written consent of the Buyer (which consent shall not be unreasonably
withheld, contained or delayed), settle, compromise or concede any asserted
liability unless ASC has (i) paid or otherwise satisfied the asserted liability
on or prior to the date of such settlement, compromise or concession, or (ii)
obtained, as an unconditional term of such

 55
 

settlement, compromise or
concession, an unconditional release, issued by the applicable taxing authority
in favor of the Companies, for all responsibility in respect of the asserted
liability.

11.6         Tax Treatment of
Indemnification Payment.  The parties
agree to treat any indemnity payment made under this Agreement as an adjustment
to the Purchase Price for all Tax purposes.

11.7         338(h)(10) Election.

(a)           Section 338(h)(10)
Election; Allocation of “Adjusted Grossed-Up Basis.”  ASC and the Buyer shall elect under Section
338(h)(10) of the Code to treat the sale of the Stock as a sale by the
Companies and their respective Subsidiaries of all of their respective assets
(the “Section 338(h)(10) Election”) and shall make any such available
election under any substantially similar state or local law.  The making of the Section 338(h)(10) Election
shall not increase the Purchase Price. 
Subject to Section 13.3, ASC shall pay any Tax associated with the
Section 338(h)(10) Election and any analogous election made under state or
local law.  Each party shall take such
actions as the other parties deem necessary to effect the Section 338(h)(10)
Election (including, without limitation, the timely filing of Internal Revenue
Service Form 8023 (Corporate Qualified Stock Purchase Elections)).

(b)           Allocation.  On or before the date that is 30 days after
the Closing Date, the Buyer shall provide to ASC a proposed allocation of the
Purchase Price for the deemed sale of assets resulting from the making of the
Section 338(h)(10) Election, setting forth the estimated fair market values of
the assets of each Company and each of their respective Subsidiaries.  On or before the date that is 60 days after
the Closing Date, ASC and the Buyer shall cooperate in developing and agree
upon a final allocation of such Purchase Price (the “Final Allocation”).  ASC and the Buyer shall cooperate in
developing the Final Allocation.

(c)           Forms.  On or before the date that is ten days before
the Closing Date, ASC shall provide to the Buyer drafts of all forms, together
with all drafts of required attachments thereto, other than allocation of the
Purchase Price, required for making the Section 338(h)(10) Election and any
such available election under any substantially similar state or local law if
requested by the Buyer (the “Election Forms”).  On the Closing Date, ASC shall deliver to the
Buyer the Election Forms, properly executed by ASC.  ASC and the Buyer shall cooperate in drafting
and making final the Election Forms.  If
the parties have not reached agreement with respect to the allocation schedule,
then the dispute shall be presented to an independent accounting firm mutually
agreed upon by the Buyer and ASC, whose determination shall be binding on both
parties.  The fees and expenses of such
accounting firm shall be paid one-half by the Buyer and one-half by ASC.  ASC shall be responsible for filing the
Election Forms with the proper taxing authorities, provided that the Buyer
shall be responsible for filing any Election Form that must be filed with its
Tax Returns.

 56

(d)           Modification;
Revocation.  The Buyer and ASC each
agree that it shall not, and shall not permit any of its respective Affiliates
to, take any action to modify the Election Forms following the execution
thereof, or to modify or revoke the Section 338(h)(10) Election, or any such
available election under any substantially similar state or local law,
following the filing of the Election Forms, without the written consent of the
Buyer or ASC, as the case may be.

(e)           Consistent Treatment.  The Buyer and ASC shall, and shall cause
their respective Affiliates to, file all Tax Returns in a manner consistent
with the information contained in the Election Forms as filed and the Final
Allocation, unless otherwise required because of a change in applicable tax law.

(f)            Expenses Resulting
from Section 338(h)(10) Elections. 
The Buyer and its Affiliates, on the one hand, and ASC and its
Affiliates, on the other hand, shall bear their respective administrative,
legal and similar expenses resulting from the making of the Section 338(h)(10)
Election and any such available elections under any substantially similar state
or local law.

11.8         Tax Sharing Agreements.  Any Tax sharing agreements or arrangements to
which any Company or any of its Subsidiaries is a party or may have any
liability or obligation shall be terminated effective as of the Closing.  After the Closing, this Agreement shall be
the sole Tax sharing agreement relating to any Company or any Subsidiary for
all Pre-Closing Tax Periods.

11.9         Survival of Obligations.  Notwithstanding any other provision of this
Agreement, the obligations of the parties set forth in this Article XI shall
remain in effect until the expiration of the applicable statutes of limitations
(including valid extensions thereof).

ARTICLE
XII

TERMINATION

12.1         Termination.  This Agreement may be terminated at any time
prior to the Closing:

(a)           by the written mutual
consent of the parties hereto;

(b)           upon written notice by
(i) any party hereto, if any court of competent jurisdiction or any other Governmental
Agency shall have issued a Judgment or taken any other action restraining,
enjoining or otherwise prohibiting the transactions contemplated by this
Agreement and (ii) such Judgment or other action shall have become final and
nonappealable;

 57
 

(c)           upon written notice at
any time on or after July 31, 2007 (the “Termination Date”), by the
Sellers, on the one hand, or the Buyer, on the other hand, if the Closing has
not occurred by such date; provided, however, that (i) if any of
the Sellers is seeking termination, then none of the Sellers is in breach in
any material respect of their respective representations, warranties, covenants
or agreements contained in this Agreement or (ii) if Buyer is seeking
termination, then Buyer is not in breach in any material respect of any of its
representations, warranties, covenants or agreements contained in this
Agreement; and provided  further,
however, that the Sellers may elect to extend the date of the
Termination Date by up to 60 additional days if the condition set forth in
Section 7.4(a) shall have not been satisfied and the parties shall have
received a “second request” or the equivalent from the applicable Governmental
Authorities under the HSR Act; and

(d)           upon written notice by
the Sellers, on the one hand, or by the Buyer, on the other hand, to the other
party if the other party (being any of the Sellers or the Buyer) is in material
breach of any of its representations, warranties, covenants or agreements
hereunder (which breach continues unremedied by such party for thirty (30) days
after written notice thereof to such party); provided, however,
that if such other party is Buyer, it shall not be entitled to such 30-day
period if it is in default of its obligation to pay the Purchase Price to the
Sellers on the Closing Date as provided herein; and provided, further,
that (i) if any Seller is seeking termination, then no Seller is then in breach
in any material respect of its respective representations, warranties,
covenants or agreements contained in this Agreement or (ii) if Buyer is seeking
termination, then Buyer is not then in breach in any material respect of any of
its representations, warranties, covenants or agreements contained in this
Agreement.

12.2         Other Agreements;
Material To Be Returned.

(a)           In the event that this
Agreement is terminated pursuant to Section 12.1, the transactions contemplated
by this Agreement and the Related Documents shall be terminated, without
further action by any party hereto, and the Sellers on the one hand and the
Buyer on the other hand shall immediately enter into, or cause their relevant
Affiliates to enter into, written consents to terminate each of the Related
Documents that have become effective prior to the date of such termination.

(b)           Furthermore, in the
event that this Agreement is terminated pursuant to Section 12.1:

(i)            The Buyer shall return
to Sellers or destroy all documents and other material received from the
Sellers, their Affiliates or any of their respective Representatives relating
to the Resorts or the transactions contemplated by this Agreement and the
Related Documents, whether obtained before or after the execution of this
Agreement; and

 58
 

(ii)           The Buyer agrees that
all confidential information received by the Buyer or their Affiliates or its
Representatives with respect to either of the Sellers, the Companies, the
Resorts or this Agreement or any of the Related Documents or the transactions
contemplated hereby or thereby shall be treated in accordance with the
Confidentiality Agreement, which shall remain in full force and effect
notwithstanding the termination of this Agreement, in accordance with Section
9.7.

12.3         Effect of Termination.  In the event that this Agreement shall be
terminated pursuant to Section 12.1 hereof, all obligations of the parties
hereto under this Agreement shall terminate and become void and of no further
effect and there shall be no liability of any party hereto to any other party
except (a) for the obligations with respect to confidentiality and publicity
contained in Section 9.7 hereof, (b) as set forth in Section 13.3 in respect of
certain fees and expenses, (c) the obligations with respect to brokers
contained in Sections 3.16 and 4.6 and (d) this Article XII; provided, however,
that no party hereto shall be relieved from liabilities arising out of any
willful breach of its representations and warranties, or for any breach of its
covenants or other agreements contained in this Agreement.

ARTICLE
XIII

MISCELLANEOUS

13.1         Complete Agreement.  This Agreement, the Related Documents (if
any) and the Schedules and Exhibits attached hereto and thereto and the
documents referred to herein (including the Confidentiality Agreement referred
to in Section 9.7) and therein shall constitute the entire agreement between
the parties hereto with respect to the subject matter hereof and thereof and
shall supersede all previous negotiations, commitments and writings with
respect to such subject matter.

13.2         Waiver, Discharge,
etc.  This Agreement may not be
released, discharged, abandoned, waived, changed or modified in any manner,
except by an instrument in writing signed on behalf of each of the parties
hereto by their duly authorized representatives.  The failure of any party hereto to enforce at
any time any of the provisions of this Agreement shall in no way be construed
to be a waiver of any such provision, nor in any way be construed to affect the
validity of this Agreement or any part thereof or the right of any party
thereafter to enforce each and every such provision.  No waiver of any breach of this Agreement
shall be held to be a waiver of any other or subsequent breach.

13.3         Fees and Expenses.  Except as otherwise expressly provided in
this Agreement, ASC shall pay all of the fees and expenses incurred by the
Sellers and the Buyer shall pay all of the fees and expenses incurred by it, in
connection with this Agreement, the Related Documents and the transactions
contemplated hereby and thereby. 
Notwithstanding the foregoing, the Buyer, shall be responsible for the
payment of (i) all real estate transfer taxes and sales taxes payable as a
result of the consummation of the transaction contemplated hereby, and (ii) the
HSR Act filing fee.

 59
 

13.4         Amendments.  No amendment to this Agreement shall be
effective unless it shall be in writing signed by each party hereto.  Each of the parties hereto agree that no
amendment to any Related Document shall be effective unless it shall have been
approved in writing by each of the parties hereto.

13.5         Notices.  All notices, requests, consents and demands to
or upon the respective parties hereto shall be in writing, and, unless
otherwise expressly provided herein, shall be deemed to have been duly given or
made (a) if delivered by hand (including by overnight courier), when delivered,
(b) on the day after delivery to a nationally recognized overnight carrier
service if sent by overnight delivery for next morning delivery, and (c) in the
case of facsimile transmission, upon receipt of a legible copy.  In each case: 
(x) if delivery is not made during normal business hours at the place of
receipt, receipt and due notice under this Agreement shall be deemed to have
been made on the immediately following Business Day, and (y) notice shall be
sent to the address of the party to be notified, as follows, or to such other
address as may be hereafter designated by the respective parties hereto in
accordance with these notice provisions:

	
  If to the Buyer, to:

  
	
   

  	
   

  
	
   

  	
  Roland
  Andreasson

  
	
   

  	
  Chief Financial
  Officer

  
	
   

  	
  Boyne USA, Inc.

  
	
   

  	
  P.O. Box 19

  
	
   

  	
  Boyne Falls, MI
  49713

  
	
   

  	
   

  
	
  With a copy to:

  
	
   

  	
   

  
	
   

  	
  Ross Agre, Esq.

  
	
   

  	
  P.O. Box 2304

  
	
   

  	
  Edwards, CO
  81632

  
	
   

  	
   

  
	
  If to the Sellers, to:

  
	
   

  	
   

  
	
   

  	
  c/o American
  Skiing Company

  
	
   

  	
  One Monument Way

  
	
   

  	
  Portland, ME
  04101

  
	
   

  	
  Attention:

  	
  Foster A. Stewart, Jr., Esq.

  
	
   

  	
   

  	
  General Counsel

  
	
   

  	
  Facsimile:

  	
  (207) 791-2607

  

 

 60
 

 

	
  and a copy to:

  
	
   

  	
   

  
	
   

  	
  Pierce Atwood
  LLP

  
	
   

  	
  One Monument
  Square

  
	
   

  	
  Portland, ME
  04101

  
	
   

  	
  Attention:

  	
  David J. Champoux, Esq.

  
	
   

  	
  Facsimile:

  	
  (207) 791-1350

  

 

13.6         Venue.  Any legal suit, action or proceeding arising
out of or relating to this Agreement may be instituted in any federal or state
court in Cumberland County, Maine and each party hereto waives any objection
which it may now have or hereafter have to the laying of venue of any such
suit, action or proceeding in Cumberland County, Maine and each party hereto
hereby irrevocably submits to the jurisdiction of any such court in Cumberland
County, Maine in any action, suit or proceeding.

13.7         GOVERNING LAW; WAIVER
OF JURY TRIAL.

(A)          THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF MAINE
WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THEREOF.

(B)           EACH PARTY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY ACTION, SUIT OR PROCEEDING BETWEEN THE PARTIES
TO THIS AGREEMENT ARISING OUT OF OR RELATING TO THIS AGREEMENT.

13.8         Headings.  The descriptive headings of the several
Articles and Sections of this Agreement are inserted for convenience only and
do not constitute a part of this Agreement.

13.9         Interpretation.  All pronouns and any variations thereof refer
to the masculine, feminine or neuter, singular or plural, as the context may
require.  All terms defined in this
Agreement in one form have correlative meanings when used herein in any other
form.  Any capitalized terms used in any
Schedule or Exhibit but not otherwise defined therein shall have the meaning as
defined in this Agreement.  When a
reference is made in this Agreement to a Section, Article, Exhibit or Schedule,
such reference shall be to a Section or Article of, or an Exhibit or Schedule
to, this Agreement unless otherwise indicated. 
For all purposes hereof, the terms “include”, “includes” and “including”
shall be deemed to be followed by the words “without limitation”.

13.10       Exhibits and Schedules.  The Exhibits and Schedules are a part of this
Agreement as if fully set forth herein.

13.11       Successors.  This Agreement and all of the provisions hereof
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted

 61
 

assigns.  Neither this Agreement nor any of the rights,
interests or obligations hereunder shall be assigned by any of the parties hereto
except with the prior written consent of the other parties or by operation of
law; provided, however, that Buyer may assign any or all of its
rights or delegate any or all of its duties under this Agreement to any
Affiliate without the prior written consent of Sellers; provided  further,
however, that the Buyer shall remain liable for its obligations and
duties under this Agreement notwithstanding any such assignment.

13.12       Remedies.

Except as
otherwise provided herein, any and all remedies herein expressly conferred upon
a party shall be deemed cumulative with and not exclusive of any other remedy
conferred hereby, or by law or equity upon such party, and the exercise by a
party of any one remedy shall not preclude the exercise of any other remedy.  The parties hereto agree that irreparable
damage would occur in the event that any of the provisions of this Agreement
were not performed in accordance with their specific terms or were otherwise
breached.  It is accordingly agreed that
the parties shall be entitled to an injunction or injunctions to prevent
breaches of this Agreement and to enforce specifically the terms and provisions
of this Agreement, without proof of actual damages, this being in addition to
any other remedy to which the parties are entitled at law or in equity.

13.13       Third Parties.  Except as provided in Article V and Sections
10.2 and 10.3, nothing herein expressed or implied is intended or shall be
construed to confer upon or give any Person, other than the parties hereto and
their successors and permitted assigns, any rights or remedies under or by
reason of this Agreement.

13.14       Severability.  If any provision of this Agreement shall be
declared by any court of competent jurisdiction to be invalid, illegal or
unenforceable in any respect, the other provisions shall not be affected by
such invalidity, illegality or unenforceability, but shall remain in full force
and effect.

13.15       Counterparts;
Effectiveness.  This Agreement may be
executed in one or more counterparts, all of which shall be considered one and
the same instrument and each of which shall be deemed an original.  This Agreement shall become effective when
each party hereto shall have received counterparts hereof signed by all of the
other parties hereto.

13.16       NO OTHER REPRESENTATIONS.  EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES
OF THE SELLERS SPECIFICALLY CONTAINED IN ARTICLE III OR A WRITING DELIVERED BY
A SELLER PURSUANT TO THE TERMS OF THIS AGREEMENT, NONE OF SELLERS, THE
COMPANIES OR ANY OTHER PERSON MAKES ANY REPRESENTATION OR WARRANTY OF ANY KIND
WHATSOEVER, EXPRESS OR IMPLIED, WITH RESPECT TO THE TRANSACTIONS CONTEMPLATED
HEREBY OR THE CONDITION (FINANCIAL OR OTHERWISE) OF, OR ANY OTHER MATTER
INVOLVING, THE COMPANIES, THE RESORTS OR SELLERS.  IN ADDITION, EXCEPT AS SPECIFICALLY PROVIDED
IN ARTICLE III, NONE OF SELLERS, THE COMPANIES OR ANY OTHER PERSON MAKES ANY
REPRESENTATION OR

 62
 

WARRANTY WITH RESPECT TO
ANY INFORMATION, DOCUMENTS OR MATERIAL MADE AVAILABLE TO THE BUYER, INCLUDING
IN ANY “DATA ROOMS,” IN CONNECTION WITH ANY MANAGEMENT PRESENTATIONS, OR IN
CONNECTION WITH ANY OTHER MATTER (INCLUDING, WITHOUT LIMITATION, THE PROVISION
OF ANY BUSINESS OR FINANCIAL ESTIMATES AND PROJECTIONS AND OTHER FORECASTS AND
PLANS (INCLUDING THE REASONABLENESS OF THE ASSUMPTIONS UNDERLYING SUCH
ESTIMATES, PROJECTIONS OR FORECASTS)).

13.17       CONDITION OF THE
BUSINESS.  EXCEPT AS EXPRESSLY SET
FORTH IN ARTICLE III OR A WRITING DELIVERED BY A SELLER PURSUANT TO THE TERMS
OF THIS AGREEMENT AND WITHOUT LIMITING THE PROVISIONS OF SECTION 13.16, THE
COMPANIES ARE BEING SOLD WITH THEIR ASSETS AND THE RESORTS IN THEIR “AS IS”
CONDITION, AND NONE OF SELLERS, THE COMPANIES OR ANY OTHER PERSON MAKES ANY
OTHER REPRESENTATIONS OR WARRANTIES, WHATSOEVER, EXPRESS OR IMPLIED, RELATING
TO SUCH ASSETS, THE RESORTS, OR THE COMPANIES, INCLUDING ANY REPRESENTATION OR
WARRANTY (A) AS TO THE FUTURE SALES OR PROFITABILITY OF THE BUSINESS AS IT WILL
BE CONDUCTED BY THE BUYER OR (B) ARISING BY STATUTE OR OTHERWISE IN LAW, FROM A
COURSE OF DEALING OR USAGE OF TRADE.  ALL
SUCH OTHER REPRESENTATIONS AND WARRANTIES ARE HEREBY EXPRESSLY DISCLAIMED BY
THE SELLERS.

13.18       NO OTHER REPRESENTATIONS.  EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES
OF THE BUYER SPECIFICALLY CONTAINED IN ARTICLE IV, NEITHER THE BUYER NOR ANY OTHER
PERSON MAKES ANY REPRESENTATION OR WARRANTY OF ANY KIND WHATSOEVER, EXPRESS OR
IMPLIED, WITH RESPECT TO EITHER THE TRANSACTIONS CONTEMPLATED HEREBY OR THE
CONDITION (FINANCIAL OR OTHERWISE) OF, OR ANY OTHER MATTER INVOLVING, THE
BUYER.  IN ADDITION, EXCEPT AS
SPECIFICALLY PROVIDED IN ARTICLE IV, NEITHER THE BUYER NOR ANY OTHER PERSON
MAKES ANY REPRESENTATION OR WARRANTY WITH RESPECT TO ANY INFORMATION, DOCUMENTS
OR MATERIAL MADE AVAILABLE TO THE SELLERS.

13.19       INDEPENDENT
INVESTIGATION.  BUYER HEREBY ACKNOWLEDGES
AND AFFIRMS THAT IT HAS CONDUCTED AND COMPLETED ITS OWN INVESTIGATION, ANALYSIS
AND EVALUATION OF THE COMPANIES, THEIR RESPECTIVE ASSETS AND THE RESORTS, THAT
IT HAS MADE ALL SUCH REVIEWS AND INSPECTIONS OF THE RESULTS OF OPERATIONS,
CONDITION (FINANCIAL AND OTHERWISE) AND PROSPECTS OF SUCH ASSETS, THE RESORTS
AND THE COMPANIES AS IT HAS DEEMED NECESSARY OR APPROPRIATE, AND THAT IN MAKING
ITS DECISION TO ENTER INTO THIS AGREEMENT AND TO CONSUMMATE THE TRANSACTIONS
CONTEMPLATED HEREBY IT HAS RELIED SOLELY ON (A) ITS OWN INVESTIGATION, ANALYSIS
AND EVALUATION OF THE RESORTS AND (B) THE REPRESENTATIONS, WARRANTIES AND
COVENANTS OF THE SELLERS CONTAINED IN THIS AGREEMENT.

 63
 

IN WITNESS
WHEREOF, each of the parties hereto has caused this Agreement to be executed by
its duly authorized representatives as of the day and year first above written.

	
   

  	
  SUNDAY RIVER SKIWAY
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Foster A.
  Stewart, Jr.

  	
   

  
	
   

  	
   

  	
  Name: Foster A.
  Stewart, Jr.

  	
   

  
	
   

  	
   

  	
  Title: Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  SUGARLOAF MOUNTAIN CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Foster A. Stewart, Jr.

  	
   

  
	
   

  	
   

  	
  Name:  Foster A.
  Stewart, Jr.

  
	
   

  	
   

  	
  Title:  Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  S-K-I LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Foster A. Stewart, Jr.

  	
   

  
	
   

  	
   

  	
  Name:  Foster A.
  Stewart, Jr

  
	
   

  	
   

  	
  Title:  Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  AMERICAN SKIING
  COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Foster A. Stewart, Jr.

  	
   

  
	
   

  	
   

  	
  Name:  Foster A.
  Stewart, Jr

  
	
   

  	
   

  	
  Title:  Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BOYNE USA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen Kircher

  	
   

  
	
   

  	
   

  	
  Name:  Stephen Kircher

  
	
   

  	
   

  	
  Title:  President – Boyne Eastern Operations

  

 

 64

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}]]