Document:

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                                                                   EXHIBIT 10.1

                           2000 DEVELOPMENT AGREEMENT

                  WELD, ADAMS, AND ARAPAHOE COUNTIES, COLORADO

                       (UXP'S CONTRACT NUMBER CO-0004-00)

         THIS AGREEMENT, is entered into between United States Exploration,
Inc. ("UXP"), with an office at 1560 Broadway, Suite 1900, Denver, Colorado
80202, hereinafter referred to as "Farmor," and Petroleum Development
Corporation, with an office at 103 East Main Street, Bridgeport, West Virginia
26330, hereinafter referred to as "Operator."

                               WITNESSETH, THAT:

         WHEREAS, Farmor has acquired various oil and gas leases from Union
Pacific Resources Company ("UPRC") and has entered into that certain
Exploration Agreement dated effective June 1, 1998, as amended, ("Exploration
Agreement") with UPRC which allows Farmor to conduct certain drilling
operations and thereby acquire by lease from UPRC all of UPRC's interest in any
unleased oil and gas mineral estate which is not under contract with a third
party which may include lands under the Test Wells listed on Exhibit "1";

         WHEREAS, Farmor and Operator would like to drill the Test Wells as
listed on Exhibit "1"; and,

         WHEREAS, Farmor has agreed to grant to Operator and Operator has
agreed to accept from Farmor oil and gas assignments covering certain interests
in the Test Wells, on the terms, covenants, and conditions as hereinafter set
forth.

         NOW, THEREFORE, in consideration of the premises and agreements
hereinafter contained, to be performed by the parties hereto, it is agreed
between the parties as follows:

         1.       TEST WELLS:

         Subject to the terms contained in this Agreement, on or before
December 31, 2002, Operator shall have commenced the drilling of all sixty-two
(62) Test Wells listed on Exhibit "1", attached hereto and by reference made a
part hereof, and either have completed each Test Well as a well capable of
producing oil and/or gas in commercial quantities or plugged and abandoned it
as a dry hole. Each Test Well shall be located at a lawful location in the
quarter-quarter section as shown on Exhibit "1". If any well location is
undrillable for whatever reason, which may include, but not be limited to, for
reasons of 1) title, 2) surface conditions, 3) inability by UPRC to obtain a
Surface Owner's Agreement, or 4) not owned or controlled 100% by Farmor; a
mutually agreeable substitute

                                      -1-
<PAGE>   2

location shall be added to Exhibit "1" and the undrillable location deleted.
Each Test Well drilled hereunder shall be drilled in a diligent and workmanlike
manner, without unnecessary delay, to a depth to test adequately the
formations) as shown on Exhibit "1" in accordance with all applicable laws,
rules, regulations, orders, and this Agreement.

         Operator shall meet certain performance requirements to allow it to
continue to drill Test Wells as provided herein. Operator must spud a minimum
of five (5) Test Wells, identified on Exhibit 1 as "Commitment Wells" by
December 1, 2000; an additional five (5) Commitment Wells by March 31, 2001; an
additional five (5) Commitment Wells by July 31, 2001; and, an additional five
(5) Commitment Wells by December 1, 2001. Provided Operator fails to spud the
minimum number of Commitment Wells by any deadline date as indicated above,
this Agreement shall terminate and Operator shall forfeit any further rights to
drill additional Test Wells or Option Te Wells beyond such date. Any Commitment
Wells drilled over the five (5) minimum for any period shall be credited
against future period obligations. While in compliance with the above minimum
drilling schedule Operator may drill any other Test Well identified on Exhibit
"1" that it desires. The sole penalty to be incurred by Operator's failure to
meet the minimum drilling schedule outlined above is the loss of future
drilling rights hereunder.

                  1.1 SUBSTITUTE WELL: If prior to reaching the objective
depth, impenetrable substances, heaving shale, excessive salt, mechanical
conditions, or other condition which makes further drilling impracticable and
which Operator, after a diligent effort, is unable to overcome Operator shall
have the right, but not the obligation to drill a substitute well at a lawful
location selected by it in the same quarter-quarter section on which the
discontinued well is located, provided the actual drilling of said substitute
well is commenced not later than thirty (30) days after the abandonment of the
discontinued well.

                  The substitute well shall be drilled in the manner and to the
depth specified for the discontinued well. If the substitute well is commenced,
drilled, and completed as herein provided, Operator shall be deemed to have
complied with this Agreement to the same extent as if the discontinued well had
been commenced, drilled, and completed in accordance herewith. If Operator
fails to drill a substitute well as provided above, Operator shall earn no
interest in, to, or under such well. However, Operator may continue to drill
any of the remaining Test Wells listed on Exhibit "1" on the ten-ns as provided
herein.

                  1.2 DRILLING AND COMPLETION OF THE TEST WELLS: All of
Operator's operations hereunder shall be conducted prudently in a diligent and
workmanlike manner, without unnecessary delay, and in accordance with all
applicable laws, rules, regulations, and orders. Additionally, Operator shall
comply with all of the ten-ns and conditions contained in the Exploration
Agreement attached hereto as Exhibit "3", including but not limited to,
providing UPRC with all notices and reports required therein for operations
conducted hereunder. After actual drilling has commenced, and continuing until
the total depth is reached and Operator has completed a Test Well as a
commercial producer or plugged and abandoned it as a dry hole, Operator shall
furnish to Farmor daily reports as to the progress of drilling, as well as all
other information as required to be furnished

                                      -2-
<PAGE>   3

to Farmor relative to the drilling of a Test Well as provided on the Exhibit
"2" attached hereto and by reference made a part hereof. Farmor shall have full
and free access to any Test Well and to the records thereof at any and all
reasonable times.

                  If Operator determines that a Test Well is capable of
producing oil or gas in commercial quantities at any depth drilled; or, if the
information from any drillstem test, core cutting, or formation survey
indicates that the Test Well is capable of producing oil or gas in commercial
quantities at any depth drilled, Operator shall attempt to complete such Test
Well as a producer and, if successful, shall equip such well for production
through and including the tank batteries if an oil well, or pipeline connection
if a gas well.

                  1.3 PROCEDURE TO INITIATE THE DRILLING OF A TEST WELL: Prior
to the spudding of a Test Well hereunder, Operator must have received from
Farmor written notice that title to drill such Test Well has been approved by
Farmor. There shall be no nonconsent election in the drilling of a Test Well
proposed under this Agreement.

         Upon entering into this Agreement, Farmor agrees to request UPRC to
waive its Right of First Refusal as provided in Article 10 of the Exploration
Agreement. Additionally, the rights granted to Operator herein to drill a Test
Well and earn an interest is subject to Farmor's obtaining the necessary
consents from UPRC allowing Operator to operate a Test Well and Farmor to
assign an interest into Operator. Farmor will attempt to obtain UPRC's consent,
as required under the Exploration Agreement or lease acquired (or to be
acquired) from UPRC, just once to allow Operator to operate all of the Test
Wells identified on Exhibit "1"; and, to allow Farmor to assign to Operator the
interest as provided herein under any UPRC lease to which Operator shall be
entitled by the drilling of the Test Wells hereunder. If UPRC is unwilling to
give a blanket consent, Farmor shall obtain such consents as such Test Wells
are proposed by Operator.

         2.       TITLES:

         Upon request, Farmor shall furnish to Operator such title information
as Farmor has in its files, but there shall be no obligation on the part of
Farmor to purchase new or supplemental abstracts or to do any curative work in
connection with the title to any Test Well. Operator agrees to have title
covering at least the drillsite spacing unit examined by a competent oil and
gas attorney and title cured so that title is marketable prior to commencing
operations on a Test Well. The drillsite spacing unit shall be as established
by order of the Colorado Oil and Gas Conservation Commission. If no such order
exists, the drillsite spacing unit for purposes of title examination shall be
at least the governmental quarter section on which the Test Well is proposed.
Operator shall furnish Farmor copies of all title opinions and all title
material obtained by Operator covering any of the Test Wells in sufficient time
to allow Farmor to review same prior to Operator's spudding of such wells.
Farmor makes no representation as to the accuracy of any information provided
to Operator hereunder.

                                      -3-
<PAGE>   4

         3.       EARNING:

         Operator must satisfy itself as to what lands will be earned by Farmor
under the Exploration Agreement from UPRC by Operator's drilling operations
conducted hereunder. This Agreement is made expressly subject to the
Exploration Agreement. Operator shall comply with all of the terms and
conditions contained therein. A copy of the Exploration Agreement and its
amendments are attached hereto as Exhibit "3", by reference made a part hereof
The terms and conditions of the Exploration Agreement shall be held strictly
confidential and no part thereof shall be disclosed by Operator to a third
party without prior written consent from Farmor. Operator must satisfy itself
as to what rights Farmor has under the Exploration Agreement prior to
commencing any well hereunder. Farmor is under no obligation to exercise any
option contained in the Exploration Agreement and failure to do so shall result
in no liability on Farmor to Operator. NOTWITHSTANDING ANYTHING CONTAINED
HEREIN TO THE CONTRARY, IT IS UNDERSTOOD THAT FARMOR'S FAILURE TO EXERCISE AN
OPTION UNDER THE EXPLORATION AGREEMENT WILL RESULT IN FARMOR'S LOSS OF CERTAIN
RIGHTS THEREUNDER WHICH MAY AFFECT OPERATOR'S RIGHTS UNDER THIS AGREEMENT. By
Operator's accepting an assignment affecting a lease covering UPRC-owned
minerals from Farmor as provided herein, Operator agrees that UPRC's royalty
interest shall never be placed into suspense.

         By Operator's timely drilling of a Test Well in the manner provided
herein, and completing same as a well capable of producing oil and/or gas in
commercial quantities, and submitting evidence thereof to Farmor, and otherwise
complying with and performing all other terms, covenants, and conditions
hereof, and as contained in the operating agreement affecting such Test Well,
then Operator shall earn and be entitled to receive from Farmor an assignment
of either eighty percent (80%) or eighty-seven and one half percent (87.5%) of
Farmor's interest in those leases contributed to the Spacing Unit for such Test
Well (the correct interest for each Test Well is as set out by such well on
Exhibit "1"), only insofar as to those lands located in such Spacing Unit,
limited to the wellbore of the Test Well earning such assignment, and further
limited in depth from the surface down to the stratigraphic equivalent of the
total depth reached in the earning Test Well, subject to all burdens presently
affecting such leases, whether actually or contractually burdening such leases.
"Spacing Unit" shall be defined as the drilling and spacing unit as established
by order of the Colorado Oil and Gas Conservation Commission, or if unspaced,
the 40-acre quarter-quarter section on which the well is drilled. It may be
necessary to enter into segregation agreements to reduce the size of a unit
which may be for working interest purposes only, or for working interest and
royalty purposes. Prior to obtaining an assignment from Farmor as provided
herein, Operator grants to Farmor the authority to enter into such segregation
agreements and Operator agrees to be subject to same. Farmor shall provide
Operator with copies of all segregation agreements entered into and affecting a
Test Well in which Operator has participated.

                  3.1 ASSIGNMENTS: Any assignment made into Operator pursuant
to this Agreement shall be:

                           (A)      Made without warranty of title, either
                                    express or implied;

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<PAGE>   5

                           (B)      Limited to the wellbore and further limited
                                    in depth from the surface down to the
                                    stratigraphic equivalent of the total depth
                                    reached in the Test Well earning such
                                    assignment;

                           (C)      Subject to all of the express and implied
                                    terms of the lease;

                           (D)      Subject to all agreements affecting the
                                    lease;

                           (E)      Subject to any gas purchase contract and
                                    gas gathering contract affecting the
                                    assigned interests on the date of the
                                    assignment;

                           (F)      Subject to the terms and provisions of this
                                    Agreement; and,

                           (G)      Substantially in the form of assignment as
                                    attached hereto as Exhibit "4", by
                                    reference made a part hereof, effective as
                                    of the date the Test Well earning such
                                    assignment is completed.

                  Anything to the contrary hereinabove notwithstanding, it is
understood that Operator must request such assignment in writing within thirty
(30) days from the date the Test Well earning the assignment is completed, time
being of the essence in this Agreement. This Agreement shall survive any
assignment made into Operator pursuant hereto. Upon receipt of an assignment
earned by Operator under this Agreement, Operator agrees promptly to record
same in the real estate records of the county in which the earning Test Well is
located and furnish Farmor with a copy of the recorded assignment as soon as it
is available.

         It is Farmor's understanding that Operator is entering into this
Agreement on its own behalf with the possibility of assigning all or part of
its interest acquired pursuant to this Agreement into one or more Limited
Partnerships under which Operator is, or will be, the General Partner with full
authority to commit such Limited Partnership(s) in any operation contemplated
hereunder. Operator shall notify Farmor of any assignment of any interest
acquired by Operator hereunder by providing Farmor with a copy of the recorded
document assigning such interest. Operator shall be responsible for obtaining
all consents to assign any interest acquired by Operator hereunder whether from
UPRC or otherwise.

         4.       CONTRIBUTION TO AND COST OF THE TEST WELLS:

         Farmor shall contribute its leasehold interest, whether existing or to
be earned under the Exploration Agreement or other agreement, under any
approved Test Well for either twenty percent (20%) or twelve and one half
percent (12.5%) working interest in such Test Well and the production therefrom
(the correct interest for each Test Well is as set out by such well on Exhibit
"1"). Operator shall pay one hundred percent (100%) of the costs to drill a
Test Well for either eighty percent (80%) or eighty-seven and one half percent
(87.5%) working interest in such Test Well and the production produced
therefrom (the correct interest for each Test Well is as set out by such well
on Exhibit "1").

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<PAGE>   6

Such drilling costs shall include, but not be limited to, those costs incurred
in the drilling, testing, completing, equipping of a well through the tanks,
hookup through a gas sales meter [including tap fee and cost of meter], laying
of pipeline, plugging and abandoning costs, site reclamation, all title work,
broker expenses, attorney fees, and all other reasonable costs incurred in the
preparation, drilling, and completing of a well, and gathering of gas. Farmor
shall be responsible for payment of its share of costs and expenses incurred
after the date of first production and hookup to a gas pipeline, if necessary,
for any Test Well drilled hereunder except for the cost to install tubing or
complete an additional zone, provided such zone is indicated as an objective
formation for such Test Well on Exhibit "1" and if such work is commenced
within thirty-six (36) months from the date of spudding a particular Test Well.
Allocation of costs and expenses is further outlined in the Operating Agreement
attached hereto as Exhibit "5".

                  If Farmor owns or controls (via any interest to be acquired
from UPRC under the Exploration Agreement or to be acquired from another party
by the drilling of a Test Well) less than one hundred percent (100%) of the
working interest in a proposed Test Well, Farmor's and Operator's working
interests and net revenue interests in a Test Well, and payment of the drilling
costs, as defined above, for such Test Well, shall be proportionately reduced.

         5.       GEOLOGICAL REQUIREMENTS:

         Operator agrees to provide Farmor with all of the information
contained in Exhibit "2" attached hereto and by reference made a part hereof,
for all Test Wells drilled hereunder and shall ensure that UPRC receives all
information required either under the Exploration Agreement or under any
existing lease.

         6.       AGREEMENT GRANTING OVERRIDING ROYALTY:

         By Agreement dated May 10, 1998, by and between Charles B. Hoefle,
John R. Wallace, Mark S. Wallace and James D. Brownlie, collectively referred
to as the Hoefle Group, and Farmor, Farmor agreed to assign to the Hoefle Group
a total overriding royalty equal to two and one half percent (2 1/2%), subject
to proportionate reduction, which shall burden all interests acquired by Farmor
from UPRC under the Exploration Agreement. Accordingly, any assignment acquired
by Operator pursuant to this Agreement subject to the Exploration Agreement
shall be burdened with such overriding royalty.

         7.       INDEMNIFICATION:

         Operator shall protect, indemnify, and hold harmless Farmor, its
directors, officers employees, and agents from and against all risks, expenses,
claims, demands, losses, liabilities and causes of action of every kind and
character, including attorney's fees and expense of investigation and
litigation arising out of , incident to, in connection with, or resulting from
Operator's performance or failure to perform under the Exploration Agreement or
any UPRC lease under which Operator has received, or will receive, an
assignment by the drilling of a Test Well or Option Test

                                      -6-
<PAGE>   7

Well as provided in this Agreement, or the acts of or failure to act by
Operator's employees, agents, contractors and subcontractors. Farmor shall
notify Operator in writing of any matter which gives rise to a claim for
indemnification against Operator hereunder. Farmor shall have the option of
assuming and conducting its defense and billing Operator for the cost of same,
or Farmor may ask Operator to conduct the defense of such matter with counsel
of its choice reasonably satisfactory to Farmor and paying for same directly.
However, Operator shall not consent to the entry of any judgment or enter into
any settlement with respect to any third party claim without the prior written
consent of Farmor, unless the judgment or proposed settlement involves only the
payment of money damages and does not impose an injunction or other equitable
relief upon Farmor, nor constitutes an admission of guilt, liability, fault or
assumption of responsibility by Farmor.

         8.       MARKETING OF PRODUCTS:

         When gas must be nominated on the HS Gathering gas pipeline, Farmor
and Operator may nominate their respective gas volumes separately and receive
their gross revenues directly from the gas purchaser, or Farmor will also
market Operator's share of gas production and make disbursements to Operator.
Farmor has entered into a Letter of Intent dated June 14, 2000 with North
American Resources Company ("NARCO") wherein the lands covered hereunder may be
subject thereto. Provided NARCO pays for the cost to gather the gas from any
well drilled hereunder to its gas gathering system, which would cause a
reduction in the percentage of proceeds pursuant to Paragraph 11 of said Letter
of Intent, Operator agrees promptly to reimburse NARCO in full for such "Payout
Cost", as defined in said Letter of Intent, upon Operator's receipt of a
detailed accounting of the actual costs incurred by NARCO to gather the gas to
avoid any reduction of the percentage of proceeds. Operator agrees that Farmor
may enter into a formal contract with NARCO without Operator's consent,
approval, or execution thereof provided it is entered into based on the terms
and conditions as contained in the Letter of Intent. Farmor shall furnish
Operator with a copy of the fully executed formal agreement when available.
Additionally, the lands covered hereby may also be subject to that certain Gas
Gathering Agreement dated effective July 30, 1991, between KN Energy, Inc. and
KN Front Range Gathering Company, as Gatherer, and Union Pacific Resources
Company, as Producer, as amended by that certain Agreement for Release and
Termination dated November 20, 1999, by and among United States Exploration,
Inc.; Kinder Morgan, Inc., formerly KN Energy, Inc.; HS Resources, Inc.; and
Resource Gathering Systems, Inc. If Operator acquires an interest in lands
subject to either agreement, Operator agrees to comply with same. If Operator
markets any production, it shall cause all revenues received for UPRC's royalty
interest, and any other burdens affecting its working interest, and Farmor's
gross working interest if marketing same, to be disbursed in a timely manner.
In no event is UPRC's royalty interest to be placed in suspense. Farmor and
Operator shall work together to obtain the best price for any oil production.

         9.       OPERATING AGREEMENT:

         All operations conducted in a Test Well drilled hereunder shall be
subject to and operated under the terms and provision of an operating agreement
in the form of operating agreement attached

                                      -7-
<PAGE>   8
hereto as Exhibit "5", by reference made a part hereof. In the event there is a
conflict between the operating agreement for a Test Well and this Agreement,
this Agreement shall control. Operator agrees to prepare a separate operating
agreement for each Test Well for Farmor's execution in timely manner which may
be after a well is completed.

         10.      ARBITRATION:

         Any disputes under this Agreement shall be resolved through binding
arbitration using the same method and procedure as provided under Article 17 of
the Exploration Agreement attached hereto as Exhibit "3".

         11.      SHUT-IN PAYMENTS:

         Operator shall be responsible for making any and all shut-in payments
which may become due under any lease Operator acquires an interest pursuant to
this Agreement and billing Farmor for its proportionate share. Operator shall
notify Farmor immediately whenever a Test Well is shut-in for whatever reason.

         12.      ASSIGNABILITY:

         This Agreement shall be binding on the parties hereto and their
respective successors and assigns. Operator shall not assign its rights and
duties under this Agreement, in whole or part, without Farmor's prior written
consent, which consent shall not be unreasonably withheld. Any attempted
assignment by Operator of its rights and duties arising under this Agreement
without such written consent shall be void and of no effect.

         13.      ENTIRE AGREEMENT:

         This Agreement constitutes the entire agreement between Farmor and
Operator regarding the drilling of the Test Wells identified on Exhibit "1" and
supersedes any prior understandings, agreements, or representations by or
between the parties, written or oral, to the extent they are related in any way
to the subject matter hereof. This Agreement shall not be amended or modified
except by a written instrument duly executed by Farmor and Operator.

         14.      GOVERNING LAW:

         This Agreement shall be governed by and construed in accordance with
the laws of the State of Colorado without giving effect to any choice or
conflict of law provision.

         15.      NOTICES:

         All notices or other communications required or permitted hereunder,
shall be in writing postage or charges prepaid, and shall be deemed given only
when received by the party to whom the same is directed as follows:

                                      -8-
<PAGE>   9

                  Except as instructed in Exhibit "2" attached hereto:
                  United States Exploration, Inc.
                  1560 Broadway, Suite 1900
                  Denver, Colorado 80202
                  Attention:  Shirley Kovar
                  Telephone:  (303) 863-3542
                  Fax: (303) 863-1932

                  Petroleum Development Corporation
                  P.O. Box 26
                  Bridgeport, West Virginia 26330
                  Attention:  Mr. Eric Steams
                  Telephone:  (304) 842-3597
                  Fax: (304) 842-0913

         Each party may change its address or telephone/fax number for any or
all purposes b3 notifying the other party of such change in writing. A return
receipt of the United States Post Office shall be proof of the date and time of
receipt of notice. Any notice given by fax transmittal shall be deemed given
upon confirmation of transmission of the fax, provided that any attachments
referenced in the notice are also sent via fax at the same time; however, a
party giving notice by fo transmittal shall also send a hard copy of the
notice, and any attachments referenced therein promptly by regular mail.

         16.      DEFAULT:

         The only penalty for Operator's failure to drill any of Test Wells as
provided for herein shall be the loss of all rights to an assignment associated
with such Test Well and as indicated in Paragraph 1 above. All of Operator's
right to drill a Test Well and earn an interest as provided herein shall
terminate on December 3 1, 2002, unless terminated prior to such date pursuant
hereto. If Operator materially breaches the terms of this Agreement, Farmor, at
its option, may terminate this Agreement and be released from all subsequent
obligations hereunder; provided, that in so doing Farmor shall not waive or
otherwise be precluded from exercising any other rights or remedies, at law or
in equity, which it may have available for Operator's breach of this Agreement.

         17.      RIGHT TO USE WELLBORES OF PRODUCING WELLS:

         By providing Operator with thirty (30) days prior written notice of
its intention to deepen a Test Well, Farmor shall have the right to use the
wellbore of any Test Well, which is producing oi capable of producing, to
deepen into formations in which Operator acquired no interest under this
Agreement, and thereafter to commingle such production from such deeper
formation(s) with the shallower production using a mutually acceptable
allocation formula. The deepening operations shall be at Farmor's sole cost,
risk, and expense and Farmor shall indemnify and hold Operator harmless from
and against any losses or damages Operator may suffer as a result of such
deepening

                                      -9-

<PAGE>   10

operations, other than lost production as a result of having to shut-in those
producing formations in which Operator owns an interest to allow Farmor to
conduct its deepening operations, provided such lost production is recoverable
after Farmor completes its deepening operations. Farmor shall take over as
operator for the purposes of the deepening operations, but operations shall be
returned to Operator once Farmor has completed its deepening operations.
Notwithstanding the foregoing contained in this Paragraph 17, the right to use
the wellbore of a well completed in the Codell formation, is limited to any
time after six (6) years from the date of first production, or one (1) year
after the Codell formation has been re-fractured, whichever first occurs.

         18.      RIGHTS RESERVED BY FARMOR:

         With respect to each assignment earned hereunder, Farmor reserves all
interests, rights, horizons, strata and formations which are not included in
such assignment, including, but not limited to, the right of ingress and egress
and concurrent use of the surface and the right to drill through the intervals
earned hereunder.

         19.      OPTION TO DRILL OFFSETS TO THE COMMITMENT WELLS:

         Provided this Agreement has not terminated pursuant to Paragraph 1
above, Operator shall have the option until December 31, 2002, to drill a well
or wells, each such well referred to as an "Option Test Well", in a 320-acre
unit surrounding each Commitment Well identified in Exhibit " I it. Such
320-acre unit shall be designated by Operator upon its election to exercise its
first option to drill the first Option Test Well therein; but such 320-acre
unit must include any drilling and spacing unit as established by order of the
Colorado Oil and Gas Conservation Commission for any formation as shown on
Exhibit "1" for such Commitment Well. Each Option Test Well shall be drilled to
a depth similar to the Commitment Well which established the 320-acre unit on
which the Option Test Well is located, or shallower at Operator's option, and
Operator shall earn an interest in such Option Test Well on the same terms and
conditions as contained herein for the Commitment Well located in the same
320-acre unit in which the Option Test Well is located. All herein to "Test
Well" shall also be a reference to "Option Test Well".

         20.      RELATIONSHIP OF PARTIES:

         It is not the intention of the parties to create any partnership,
mining partnership, o association, and neither this Agreement nor the
operations contemplated hereunder shall b construed or considered as creating
any such legal relationship. The liabilities of the parties shall be several,
and not joint or collective.

         21.      HEADINGS:

         The headings contained in this Agreement are inserted for convenience
and identification only and are in no way intended to describe, interpret,
define, or limit the scope, extent, or intent of this Agreement or any
provision hereof.

                                     -10-
<PAGE>   11

         22.      SEVERABILITY:

         If any term or provision hereof is determined to be illegal or invalid
for any reason whatsoever, such illegality or invalidity shall not affect the
validity of the remainder of this Agreement.

                                      -11-
<PAGE>   12

         IN WITNESS WHEREOF, the parties have executed this Agreement on this
30th day of June, 2000.

ATTEST:                                        UNITED STATES EXPLORATION, INC.

BY: /s/ F. Michael Murphy                      BY: /s/ Bruce D. Benson
    ----------------------------                   ----------------------------
    F. Michael Murphy, Secretary                   Bruce D. Benson, President

ATTEST:                                        PETROLEUM DEVELOPMENT CORPORATION

BY: /s/ Dale G. Reuthiger                      BY: /s/ E.R. Sterns
    -----------------------------                  ----------------------------
NAME:  DALE G. REUTHIGER                       NAME: ERIC R. STEARNS
       --------------------------                   ---------------------------
        (Please type or print)                        (Please type or print)
TITLE:  Asst. Sec.                             TITLE: VP Exploration
        -------------------------                     -------------------------

Listing of Exhibits Attached:

Exhibit "1":      Schedule of Well Locations
Exhibit "2":      Geological Requirement Sheet
Exhibit "3":      Exploration Agreement
Exhibit "4":      Form of Assignment
Exhibit "5":      Operating Agreement.

                                      -12-

<PAGE>   13

                                EXHIBITS OMITTED

                                     -13-<PAGE>   1

                                                                    EXHIBIT 10.1
                                                                  EXECUTION COPY

                           PURCHASE AND SALE AGREEMENT
                                      among
                        ASCENT ENTERTAINMENT GROUP, INC.,
                                       and
                          ASCENT SPORTS HOLDINGS, INC.
                                       and
                                KMS SPORTS, LLC,
                                 KMA STICK, LLC,
                                 KMN BALL, LLC,
                                       and
                                 KMC CENTER, LLC

                           Dated as of April 24, 2000

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               Page
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<S>                 <C>                                                                                        <C>
ARTICLE I.          DEFINITIONS...................................................................................2
         1.1        Definitions...................................................................................2

ARTICLE II.         PURCHASE AND SALE............................................................................18
         2.1        AEG Ownership Interests......................................................................18
         2.2        HC Ownership Interests.......................................................................18
         2.3        LLC-II Membership Interest...................................................................18
         2.4        Seller Ascent Arena Company Membership Interests.............................................18
         2.5        Purchase Price...............................................................................18

ARTICLE III.        COVENANTS OF SELLER..........................................................................19
         3.1        Compliance with Contracts and Applicable Law.................................................19
         3.2        Conduct of Business in the Ordinary Course...................................................19
         3.3        Preservation of Business.....................................................................24
         3.4        Maintenance of Insurance Coverage and Certain Policies.......................................24
         3.5        Current Information..........................................................................24
         3.6        Preservation of LDA's Ascent Arena Company Membership Interest...............................25

ARTICLE IV.         CLOSING......................................................................................25
         4.1        Closing......................................................................................25
         4.2        Closing Deliveries by AEG....................................................................25
         4.3        Closing Deliveries by HC.....................................................................26
         4.4        Closing Deliveries by Purchasers.............................................................26

ARTICLE V.          REPRESENTATIONS AND WARRANTIES OF SELLER.....................................................27
         5.1        General Corporate and Partnership Matters....................................................27
         5.2        Title to Membership Interests and Partnership Interests......................................29
         5.3        Financial Statements; Undisclosed Liabilities; Notes; Distributions..........................35
         5.4        Litigation...................................................................................36
         5.5        Employees....................................................................................36
         5.6        Employee Benefits............................................................................36
         5.7        Labor and Employment Matters.................................................................38
         5.8        Intellectual Property........................................................................39
         5.9        Environmental Compliance.....................................................................39
         5.10       Insurance....................................................................................40
         5.11       Tax Matters..................................................................................41
         5.12       Sports Entities..............................................................................44
         5.13       Ascent Arena Entities........................................................................48
         5.14       Pepsi Center.................................................................................49
         5.15       Mountain Mobile..............................................................................51
</TABLE>

                                     - ii -

<PAGE>   3

<TABLE>
<S>                 <C>                                                                                         <C>
         5.16       Development Property.........................................................................52
         5.17       Advisory Fees................................................................................52
         5.18       Operations Since Effective Date..............................................................52
         5.19       No Other Representations or Warranties.......................................................52

ARTICLE VI.         REPRESENTATIONS AND WARRANTIES OF PURCHASERS.................................................53
         6.1        Existence and Power..........................................................................53
         6.2        Governmental Authorization...................................................................53
         6.3        Non-Contravention............................................................................53
         6.4        Securities Matters...........................................................................54
         6.5        Advisory Fees................................................................................54
         6.6        Litigation...................................................................................55
         6.7        Beneficial Ownership.........................................................................55
         6.8        No Other Representations.....................................................................55
         6.9        Financial Matters............................................................................55

ARTICLE VII.        CONDITIONS TO CLOSING........................................................................56
         7.1        Conditions to Obligations of Purchasers......................................................56
         7.2        Conditions to Obligations of Seller..........................................................58

ARTICLE VIII.       TERMINATION..................................................................................59
         8.1        Mutual Agreement.............................................................................59
         8.2        Default by Seller............................................................................59
         8.3        Default by Purchasers........................................................................60
         8.4        Failure to Close.............................................................................60
         8.5        Effect of Termination........................................................................60

ARTICLE IX.         OTHER AGREEMENTS.............................................................................60
         9.1        Further Assurances...........................................................................60
         9.2        Certain Filings..............................................................................61
         9.3        Administration of Accounts...................................................................61
         9.4        Guarantee of Performance.....................................................................61
         9.5        Taxes........................................................................................61
         9.6        Employee Benefit Plans.......................................................................67
         9.7        Publicity....................................................................................68
         9.8        Costs and Expenses...........................................................................68
         9.9        Conditions to Closing........................................................................69
         9.10       City Consent.................................................................................69
         9.11       NBA and NHL Consents.........................................................................69
         9.12       Purchase and Sale of LDA Ascent Arena Membership Interest....................................69
         9.13       Limitations on Required Actions..............................................................70
         9.14       Amendment of Ascent Operating Agreement......................................................70
</TABLE>

                                     - iii -

<PAGE>   4

<TABLE>
<S>                 <C>                                                                                          <C>
ARTICLE X.          MISCELLANEOUS................................................................................70
         10.1       Notices......................................................................................70
         10.2       Amendments; No Waivers.......................................................................72
         10.3       Successors and Assigns.......................................................................72
         10.4       Governing Law................................................................................72
         10.5       Counterparts; Effectiveness..................................................................72
         10.6       Entire Agreement.............................................................................73
         10.7       Captions.....................................................................................73
         10.8       Severability.................................................................................73
         10.9       Construction.................................................................................73
         10.10      Cumulative Remedies..........................................................................73
         10.11      Survival of Representations and Covenants....................................................74
         10.12      No Third Party Beneficiaries.................................................................74
</TABLE>

                                     - iv -

<PAGE>   5

                             EXHIBITS AND SCHEDULES

<TABLE>
<S>                                <C>
EXHIBIT "A-1"                      Arena Land Legal Description
EXHIBIT "A-2"                      Development Property Legal Description
EXHIBIT "A-3"                      Auraria Lease Parcels Legal Description
EXHIBIT "B"                        Permitted Liens
SCHEDULE 1.1                       Pepsi Center Plans and Specifications
SCHEDULE 3.2(a)(vi)                Payable Indebtedness
SCHEDULE 3.2(b)(vii)               Prepayable Arena Entities' and Development Property
                                   Indebtedness
SCHEDULE 3.4                       Maintenance of Insurance Coverage and Certain Policies
SCHEDULE 5.1(f)                    Subsidiaries/Advances/Investments
SCHEDULE 5.2                       Exceptions to Title
SCHEDULE 5.2(b)(iii)               Mountain Mobile Membership Interest
SCHEDULE 5.2(g)                    Restrictions
SCHEDULE 5.3(a)                    Financial Statements
SCHEDULE 5.3(b)                    Undisclosed Liabilities
SCHEDULE 5.4                       Litigation
SCHEDULE 5.5(a)                    Sports Entities' Employees
SCHEDULE 5.5(b)                    Ascent Arena Entities' Employees
SCHEDULE 5.5(c)                    Key Employee Resignations
SCHEDULE 5.6(a)(i)                 Purchased Entities' Employee Plans
SCHEDULE 5.6(a)(iv)                Purchased Entities' Employee Plan Accelerated Vesting
SCHEDULE 5.6(d)                    Multiemployer Plan Contingent Liability
SCHEDULE 5.7(a)                    Labor and Employment Matters
SCHEDULE 5.8(a)                    Intellectual Property
SCHEDULE 5.10(a)                   Sports Entities' Insurance Policies
SCHEDULE 5.10(b)                   Ascent Arena Entities Insurance Policies
SCHEDULE 5.11(a)(vi)(A)            Tax Matters - Government Audits and Examinations
SCHEDULE 5.11(a)(vi)(B)            Tax Matters - Deficiencies
SCHEDULE 5.11(a)(vi)(D)            Tax Matters - Affiliated Groups
SCHEDULE 5.11(a)(vi)(E)            Tax Matters - List of Consolidated, Combined or Unitary
                                   State Income Tax Returns
SCHEDULE 5.11(a)(vi)(F)            Tax Matters - Extensions of Time Requested to File Income
                                   Tax Returns
SCHEDULE 5.11(a)(vi)(G)            Tax Matters - Tax Sharing Agreements
SCHEDULE 5.11(a)(vii)              Tax Matters - General Disclosures
SCHEDULE 5.12(a)                   Sports Entities - Absence of Certain Changes
SCHEDULE 5.12(b)(i)                Sports Entities' Contracts
SCHEDULE 5.12(c)(vi)               Survey Matters
SCHEDULE 5.12(e)                   Affiliate Contracts
SCHEDULE 5.12(f)(i)                Sports Entities' Permits
</TABLE>

                                      - v -

<PAGE>   6

<TABLE>
<S>                                <C>
SCHEDULE 5.12(f)(ii)               Sports Entities' Required Governmental/Contractual
                                   Approvals/Consents
SCHEDULE 5.12(g)                   Compliance with Laws
SCHEDULE 5.13(d)                   Advance Booking Contracts
SCHEDULE 5.13(e)                   Ascent Arena Entity Contracts
SCHEDULE 5.14(b)(ii)               Arena Contracts
SCHEDULE 5.14(b)(iv)               Sale and Servicing Delegation of Duties
SCHEDULE 5.14(b)(ix)               DURA Obligations
SCHEDULE 5.14(c)                   Arena Accounts
SCHEDULE 5.15(c)                   Mountain Mobile Compliance with Laws
SCHEDULE 6.7(a)                    Beneficial Ownership
SCHEDULE 9.5(j)                    Allocation Schedule (to be delivered at the time specified in
                                   Section 9.5(j))
SCHEDULE 9.14                      Agreed Modifications to Ascent Operating Agreement
</TABLE>

                                     - vi -

<PAGE>   7

                           PURCHASE AND SALE AGREEMENT

         THIS PURCHASE AND SALE AGREEMENT (this "Agreement") is made as of April
24, 2000 (the "Effective Date"), among ASCENT ENTERTAINMENT GROUP, INC., a
Delaware corporation ("AEG"); ASCENT SPORTS HOLDINGS, INC., a Delaware
corporation ("HC" and, together with AEG, "Seller"); KMS SPORTS, LLC, a Missouri
limited liability company ("KMS Sports"); KMA STICK, LLC, a Missouri limited
liability company ("KMA Stick"); KMN BALL, LLC, a Missouri limited liability
company ("KMN Ball"); and KMC CENTER, LLC, a Missouri limited liability company
("KMC Center") (together with KMS Sports, KMA Stick and KMN Ball, "Purchasers"
and each individually, a "Purchaser").

                                    RECITALS

         A. AEG owns 100% of the capital stock of HC and HC owns 100% of the
membership interests of each of Ascent Sports LLC, a Delaware limited liability
company ("LLC-I"), and Ascent Arena and Development LLC, a Delaware limited
liability company ("LLC-II").

         B. AEG and HC desire to sell to KMC Center, and KMC Center desires to
purchase from HC, 100% of the membership interests of LLC-II (the "LLC-II
Membership Interest"), all on the terms and conditions set forth in this
Agreement.

         C. AEG and LLC-II own, in the aggregate, 93.48% of the membership
interests in Ascent Arena Company, LLC, a Colorado limited liability company
("Ascent Arena Company") (collectively, "Seller Ascent Arena Company Membership
Interests," and each individually a "Seller Ascent Arena Company Membership
Interest"). Liberty Denver Arena LLC, a Delaware limited liability company
("LDA"), owns the remaining 6.52% of the membership interests in Ascent Arena
Company (the "LDA Ascent Arena Company Membership Interest"). Ascent Arena
Company in turn owns the new indoor arena and related parking and site
improvements (including the Infrastructure Improvements as defined in the
Redevelopment Agreement) on the Arena Land and adjacent property, called the
"Pepsi Center," which is a state of the art sports and entertainment center with
seating for up to 20,000 occupants, depending on the event specific
configuration (the "Pepsi Center").

         D. AEG desires to sell to KMS Sports, and KMS Sports desires to
purchase from AEG, its Ascent Arena Company Membership Interest, all on the
terms and conditions set forth in this Agreement. LDA desires to retain, and KMC
Center desires LDA to retain, the LDA Ascent Arena Company Membership Interest,
unless LDA is required to sell to KMC Center, and KMC Center is required to
purchase from LDA, the LDA Ascent Arena Company Membership Interest pursuant to
the terms and conditions set forth in this Agreement.

         E. AEG owns a 1% membership interest (the "AEG Avalanche Membership
Interest") in Colorado Avalanche, LLC, a Colorado limited liability company
("Avalanche LLC"), and a 1% interest as a limited partner (the "AEG Nuggets LP
Partnership Interest") in The Denver Nuggets Limited Partnership, a Delaware
limited partnership ("Nuggets LP"). HC owns the remaining 99% of the membership
interests in Avalanche LLC (the "HC Avalanche Membership Interest"). LLC-I

                                      - 1 -

<PAGE>   8

owns a 1% interest in Nuggets LP as a general partner (the "LLC-I Nuggets LP
Partnership Interest") and HC owns the remaining 98% of the interests in Nuggets
LP as a limited partner (the "HC Nuggets LP Partnership Interest").

         F. Nuggets LP owns and operates the professional basketball team known
as the "Denver Nuggets" (the "Nuggets") and holds a franchise and membership in
the National Basketball Association (the "NBA"). Nuggets LP also owns (i)
subject to the City Transfer, fee title to the real property located in Denver,
Colorado on which the Pepsi Center was constructed, which real property is more
particularly described on Exhibit "A-1" (the "Arena Land"), and (ii) a 1/3
membership interest (the "Mountain Mobile Membership Interest") in Mountain
Mobile TV Limited Liability Company, a Nevada limited liability company
("Mountain Mobile").

         G. Avalanche LLC owns and operates the professional hockey team known
as the "Colorado Avalanche" (the "Avalanche") and holds a franchise and
membership in the National Hockey League (the "NHL").

         H. AEG desires to sell, on the terms and conditions set forth in this
Agreement, to KMS Sports, and KMS Sports desires to purchase from AEG, (i) the
AEG Nuggets LP Partnership Interest and (ii) the AEG Avalanche Membership
Interest.

         I. HC desires to sell, on the terms and conditions set forth in this
Agreement, to KMA Stick, and KMA Stick desires to purchase from HC, the HC
Avalanche Membership Interest.

         J. HC desires to sell, on the terms and conditions set forth in this
Agreement, to KMN Ball, and KMN Ball desires to purchase from HC, 100% of the
membership interests in LLC-I (the "LLC-I Membership Interest") and the HC
Nuggets LP Partnership Interest.

         NOW, THEREFORE, in consideration of the foregoing recitals, and the
representations, warranties, covenants and agreements hereinafter set forth, the
parties hereto agree as follows:

                                   ARTICLE I.

                                   DEFINITIONS

         1.1 Definitions. The following terms, as used herein, have the
following meanings:

         "Accounts" means, collectively, (a) the following accounts established
and maintained pursuant to, and as defined in, the Sale and Servicing Agreement:
(i) Collection Account; (ii) Construction Fund Account; (iii) Debt Service
Coverage Account; (iv) Debt Service Reserve Account; (v) Lease Reserve Account;
(vi) Paying Account; (vii) Capitalized Interest Account; and (vii) the Lockbox
Account (for deposit of funds received pursuant to the Revenue Agreements prior
to transfer of such funds to the Collection Account); (b) the Operating Account
established and maintained pursuant to the Operating and Management Agreement;
and (c) any Subservicing

                                      - 2 -

<PAGE>   9

Account established by Ascent Operating Company as subservicer of the Sale and
Servicing Agreement pursuant to the Operating and Management Agreement.

         "Adjusted Purchase Price" has the meaning set forth in Section 2.5.

         "Advance Booking Contracts" has the meaning set forth in Section
5.13(d).

         "AEG" has the meaning set forth in the introductory paragraph of this
Agreement.

         "AEG Avalanche Membership Interest" has the meaning set forth in
Recital E.

         "AEG Nuggets LP Partnership Interest" has the meaning set forth in
Recital E.

         "Affiliate" means, with respect to any Person, any Person directly or
indirectly controlling, controlled by or under direct or indirect common control
with such other Person; provided, however, that in no event will AT&T Corp. or
any Affiliate of AT&T Corp. be deemed to be an Affiliate of Seller unless such
Person is Liberty Media Corporation or a Controlled Affiliate of Liberty Media
Corporation. "Control" for purposes of this definition means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of a Person, whether through the ownership or voting
securities, by contract or otherwise. When used with reference to any natural
Person, the term "Affiliate" also includes (i) such Person's spouse, parents and
descendants (whether by blood or adoption, and including stepchildren), the
spouses of such Persons, and any relative of such Person's spouse who has the
same home as such Person, and (ii) any trust or other estate in which such
Person has a substantial beneficial interest or as to which such Person serves
as trustee or in a similar fiduciary capacity.

         "Agreed Adjustment Amount" means $27,500,000.

         "Agreement" means this Agreement and all Exhibits and Schedules
attached hereto.

         "Allen & Company" means Allen & Company Incorporated.

         "Allocation Schedule" has the meaning set forth in Section 9.5(j).

         "Applicable Law" means, with respect to any Person, any current
domestic or foreign, federal, state or local statute, law, common law,
ordinance, rule, administrative interpretation, regulation, order, writ,
injunction, directive, judgment, decree or other requirement of any Governmental
Authority (including any Environmental Law) applicable to such Person or any of
its Controlled Affiliates or any of their respective properties, assets,
managers, partners, officers, directors, employees, consultants or agents (in
connection with such manager's, partner's, officer's, director's, employee's,
consultant's or agent's activities on behalf of such Person or any of its
Controlled Affiliates).

         "Approved Budgets" has the meaning set forth in Section 3.2(e).

                                      - 3 -

<PAGE>   10

         "Architect" means Helmuth, Obata & Kassabaum, P.C., a Colorado
professional corporation.

         "Architect Agreement" means the Agreement for Architectural Services,
dated November 20, 1997, between Architect and Ascent Arena Company with respect
to the Pepsi Center.

         "Arena Agreement" means the 1997 Denver Arena Agreement, dated as of
November 12, 1997, by and among Ascent Arena Company, the City, Nuggets LP and
Avalanche LLC, as amended.

         "Arena Contracts" means, collectively, (i) the Arena Agreement; (ii)
the Trust Agreement; (iii) the Operating and Management Agreement; (iv) the Sale
and Servicing Agreement; (v) the Construction Contract; (vi) the Indenture;
(vii) the Ascent Entertainment Assignment; (viii) the Security Documents; (ix)
the User Agreements; (x) the Construction Phase Agreement, dated as of July 29,
1998, among the Denver Arena Trust, Ascent Arena Company and the Indenture
Trustee; (xi) the Revenue Agreements; (xii) the Club Seat Agreements; (xiii) the
Ground Lease; (xiv) the Indemnity Agreement, dated as of July 29, 1998, between
Ascent Arena Company and the Denver Arena Trust; (xv) the Levy Concession
Agreement; (xvi) the Ogden Concession Agreement; (xvii) the Redevelopment
Agreement; (xviii) the ERA; (xix) the Advance Booking Contracts; (xx) the
Architect Agreement; (xxi) the Conoco Agreement; (xxii) the Denver Post
Agreement; and (xxiii) the Contracts listed on Schedule 5.13(e).

         "Arena Land" has the meaning set forth in Recital F.

         "Arena Operating Company" means Ascent Arena Operating Company, LLC, a
Colorado limited liability company.

         "Ascent Arena Company" has the meaning set forth in Recital C.

         "Ascent Arena Entities" means, collectively, Ascent Arena Company,
LLC-II, Arena Operating Company, and Denver Arena Trust.

         "Ascent Entertainment Assignment" means the Ascent Entertainment
Assignment of Certain Payments, dated as of July 29, 1998, among AEG, Denver
Arena Trust, Ascent Arena Company and the Indenture Trustee.

         "Ascent Operating Agreement" means the operating agreement entered into
on November 14, 1997, among the then members of Ascent Arena Company, as
amended.

         "Ascent Sports 401(k) Plan" has the meaning set forth in Section
9.6(c).

         "Assets" means, with respect to any Person, all of such Person's
assets, properties, business, goodwill and rights of every kind and description,
real and personal, tangible and intangible, wherever situated and regardless of
whether reflected on the Financial Statements delivered to Purchasers pursuant
to this Agreement.

                                      - 4 -

<PAGE>   11

         "Authorizations" has the meaning set forth in Section 5.9(a).

         "Avalanche" has the meaning set forth in Recital G.

         "Avalanche Balance Sheet" means the unaudited balance sheet of
Avalanche LLC as of March 31, 2000.

          "Avalanche Contracts" means all Contracts to which Avalanche LLC is a
party or by which it is bound.

         "Avalanche LLC" has the meaning set forth in Recital E.

         "Balance Sheet Date" means March 31, 2000.

         "Business" means the business of owning, managing and operating (a) the
Nuggets as to Nuggets LP, (b) the Avalanche as to Avalanche LLC, (c) the Pepsi
Center and the Development Property as to the Ascent Arena Entities, and (d) the
Mountain Mobile Membership Interest and the business known and conducted as
Ascent Sports (formerly conducted by Ascent Sports, Inc., a Delaware corporation
which was merged into LLC-I) as to LLC-I.

         "Business Day" means a day other than a Saturday, Sunday or other day
on which commercial banks in Denver, Colorado or New York, New York are
authorized or required by law to close.

         "City" means the City and County of Denver, Colorado.

         "City Consent" means the consent of the City to all transactions
contemplated by this Agreement which require the approval or consent of the
City.

         "City Lien" means the subordinate Lien granted by Ascent Arena Company
to the City on all of Ascent Arena Company's right, title and interest in, to
and under (i) the Luxury Suite License Agreements and the Revenue Agreement
Rights with respect thereto (which Lien was granted by Ascent Arena Company
prior to the conveyance of such agreements and rights by Ascent Arena Company to
the Denver Arena Trust pursuant to the Sale and Servicing Agreement), and (ii)
the Excess Collateral (and all proceeds of the foregoing) in order to secure the
obligations of Ascent Arena Company under the Arena Agreement.

         "City Transfer" means the conveyance of the Arena Land to the City
pursuant to the Arena Agreement and the transactions related thereto.

         "Closing" has the meaning set forth in Section 4.1.

         "Closing Date" has the meaning set forth in Section 4.1.

                                      - 5 -

<PAGE>   12

         "Code" means the Internal Revenue Code of 1986, as amended.

         "Conoco Agreement" means the Agreement for Founding Partner,
Sponsorship and Promotion Rights, dated March 9, 1999, between Conoco, Inc. and
Ascent Arena Company.

         "Conoco Lease" means the Lease, dated March 9, 1999, between Conoco,
Inc. and Ascent Development Corp.

         "Construction Contract" means the Guaranteed Maximum Price Agreement,
dated as of November 20, 1997, between Ascent Arena Company and the Construction
Contractor.

         "Construction Contractor" means M.A. Mortenson Company.

         "Construction Fund Account" means the account designated as such
established and maintained pursuant to the Sale and Servicing Agreement.

         "Construction Reports" has the meaning set forth in Section 5.14(a)(i).

         "Contract" means any written or oral contract, agreement, lease, plan,
instrument or other document, commitment, arrangement, or undertaking that is
binding on any Person or its property under Applicable Law, including, with
respect to Seller, the Arena Contracts.

         "Controlled Affiliate" means, with respect to any Person, an Affiliate
of such Person that such Person Controls (as defined in the definition of
Affiliate).

         "Coors Agreement" means the Agreement for Founding Partner Rights,
Sponsorship and Promotion, dated as of June 1, 1998, between Coors Brewing
Company and Ascent Arena Company, as amended and restated on July 29, 1998.

         "Corporate Entity" has the meaning set forth in Section 5.11(a)(v).

         "Denver Arena Trust" means the Denver Arena Trust, a Delaware business
trust created pursuant to the Trust Agreement.

         "Denver Post Agreement" means the Agreement for Founding Partner
Rights, Sponsorship and Promotion, dated November 24, 1998, between The Denver
Post and Ascent Arena Company.

         "Designated Representative" has the meaning set forth in Section
3.2(c).

         "Development Property" means the real property more particularly
described in Exhibit "A-2."

         "Drop Dead Date" has the meaning set forth in Section 8.2.

                                      - 6 -

<PAGE>   13

         "DURA" means the Denver Urban Renewal Authority.

         "Effective Date" has the meaning set forth in the introductory
paragraph of this Agreement.

         "Elitch Easements" has the meaning set forth in Section 5.12(c)(ii)(F).

         "Elitch Property" has the meaning set forth in Section 5.12(c)(ii)(F).

         "Employee Plan" of a Person means any plan, contract, commitment,
program, policy, arrangement or practice maintained or contributed to by the
Person and providing benefits to any current or former employee, director or
agent of the Person, or any spouse or dependent of such beneficiary, including,
without limitation, (1) any ERISA Plan, (2) any Multiemployer Plan, (3) any
other "employee benefit plan" (within the meaning of section 3(3) of ERISA), (4)
any profit-sharing, deferred compensation, bonus, stock option, stock purchase,
stock appreciation rights, phantom stock, restricted stock, other stock-based
pension, retainer, consulting, retirement, severance, welfare or incentive plan,
contract, commitment, program, policy, arrangement or practice and (5) any plan,
contract, commitment, program, policy, arrangement or practice providing for
"fringe benefits" or perquisites, including, without limitation, benefits
relating to automobiles, clubs, vacation, child care, parenting, sabbatical or
sick leave and medical, dental, hospitalization, life insurance and other types
of insurance.

         "Employee Plan Event" means any of the following:

                  (i) "reportable event" (within the meaning of section 4043 of
                  ERISA) with respect to any ERISA Plan for which the
                  requirement of notice to the PBGC has not been waived by
                  regulation;

                  (ii) the failure to meet the minimum funding standard of
                  section 412 of the Code with respect to any ERISA Plan
                  (whether or not waived in accordance with section 412(d) of
                  the Code) or the failure to make by its due date a required
                  installment under section 412(m) of the Code with respect to
                  any ERISA Plan or the failure to make any required
                  contribution to a Multiemployer Plan;

                  (iii) the provision by the administrator of any ERISA Plan
                  pursuant to section 4041(a)(2) of ERISA of a notice of intent
                  to terminate such plan in a distress termination described in
                  section 4041(c) of ERISA;

                  (iv) the withdrawal from any ERISA Plan during a plan year by
                  a "substantial employer" as defined in section 4001(a)(2) of
                  ERISA resulting in liability pursuant to section 4062(e) or
                  section 4063 of ERISA;

                  (v) the institution by the PBGC of proceedings to terminate
                  any ERISA Plan, or the occurrence of any event or condition
                  which might constitute grounds under

                                      - 7 -

<PAGE>   14

                  ERISA for the termination of, or the appointment of a trustee
                  to administer, any ERISA Plan;

                  (vi) the imposition of liability pursuant to sections 4064 or
                  4069 of ERISA or by reason of the application of section
                  4212(c) of ERISA;

                  (vii) the withdrawal in a complete or partial withdrawal
                  (within the meaning of sections 4203 and 4205 of ERISA) from
                  any Multiemployer Plan if there is any potential liability
                  therefor, or the receipt of notice from any Multiemployer Plan
                  that it is in reorganization or insolvency pursuant to
                  sections 4241 or 4245 of ERISA, or that it intends to
                  terminate or has terminated under sections 4041A or 4042 of
                  ERISA;

                  (viii) the occurrence of an act or omission which could give
                  rise to the imposition of fines, penalties, taxes or related
                  charges under chapter 43 of the Code or under sections 409,
                  502(c), 502(i), 502(l) or 4071 of ERISA in respect of any such
                  Employee Plan;

                  (ix) the assertion of a material claim (other than routine
                  claims for benefits) against any Employee Plan other than a
                  Multiemployer Plan or the assets of any Employee Plan, or
                  against the Person maintaining or contributing to such plan in
                  connection with any such plan;

                  (x) receipt from the IRS of notice of the failure of any
                  Qualified Plan to qualify under section 401(a) of the Code, or
                  the failure of any trust forming part of any Qualified Plan to
                  fail to qualify for exemption from taxation under section
                  501(a) of the Code; or

                  (xi) the imposition of a lien pursuant to sections 401(a)(29)
                  or 412(n) of the Code or pursuant to ERISA with respect to any
                  ERISA Plan.

         "Environmental Laws" means all Applicable Laws relating to the
protection of human health, safety or the environment including all requirements
pertaining to reporting, licensing, permitting, controlling, investigating or
remediating emissions, discharges, releases or threatened releases of Hazardous
Substances, into the air, surface water, ground water or land, or relating to
the manufacture, processing, distribution, use, treatment, storage, disposal,
transport or handling of Hazardous Substances.

         "Environmental Liability(ies)" means all Liabilities of a Person
(whether such Liabilities result from obligations imposed directly upon a Person
under Environmental Laws or are owed by such Person to Governmental Authorities
or third parties or otherwise) whether presently in existence or arising
hereafter which arise under or relate to any Environmental Law.

         "Equity Interests" has the meaning set forth in Section 4.1.

                                      - 8 -

<PAGE>   15

         "ERA" means the Environmental Responsibility Agreement, dated as of
November 14, 1997, between Southern Pacific Transportation Company and Ascent
Arena Company, as amended pursuant to the First Amendment and Supplement thereto
dated March 31, 1998.

         "ERISA" means the Employee Retirement Income Security Act of 1974 and
the related regulations, in each case as amended as of the date hereof and as
the same may be amended or modified from time to time. References to titles,
subtitles, sections, paragraphs or other provisions of ERISA and the related
regulations also refer to successor provisions.

         "ERISA Affiliate", as applied to any Person, means (i) any corporation
which is a member of a controlled group of corporations within the meaning of
section 414(b) of the Code of which such Person is a member, (ii) any trade or
business (whether or not incorporated) which is a member of a group of trades or
businesses under common control within the meaning of section 414(c) of the Code
of which such Person is a member, and (iii) any member of an affiliated service
group within the meaning of section 414(m) or (o) of the Code of which such
Person, any corporation described in clause (i) above or any trade or business
described in clause (ii) above is a member. Any former ERISA Affiliate of any of
the Purchased Entities shall continue to be considered an ERISA Affiliate within
the meaning of this definition with respect to the period such entity was an
ERISA Affiliate of any of the Purchased Entities and with respect to liability
arising after such period for which any of the Purchased Entities could be
liable under the Code or ERISA.

         "ERISA Plan" of a Person means an "employee pension benefit plan"
(within the meaning of section 3(2) of ERISA), other than a Multiemployer Plan,
that is covered by Title IV of ERISA or subject to the minimum funding standards
of section 412 of the Code or section 302 of ERISA that is maintained by the
Person, to which the Person contributes or has an obligation to contribute or
with respect to which the Person is an "employer" (within the meaning of section
3(5) of ERISA).

         "Financial Advisors" means Allen & Company and Wasserstein Perella.

         "Financial Statements" has the meaning set forth in Section 5.3(a).

         "GAAP" means generally accepted accounting principles applied on a
consistent basis.

         "Governmental Authority" means any foreign, domestic, federal,
territorial, state or local governmental authority, quasi-governmental
authority, instrumentality, court, government or self- regulatory organization,
commission, tribunal or organization or any regulatory, administrative or other
agency, or any political or other subdivision, department or branch of any of
the foregoing.

         "Gross Purchase Price" has the meaning set forth in Section 2.5.

         "Ground Lease" means (i) prior to the City Transfer, the Ground Lease
between Nuggets LP, as lessor, and Ascent Arena Company, as lessee, with respect
to the Arena Land, and (ii) after the City Transfer, the Lease Agreement between
the City, as lessor, and Ascent Arena Company, as

                                      - 9 -

<PAGE>   16

lessee, with respect to the Arena Land and pursuant to the Arena Agreement (the
"City Ground Lease").

         "Hazardous Substance" means any chemical substance: (i) the presence of
which requires investigation or remediation under any Applicable Law; or (ii)
that is defined as a "hazardous waste," "hazardous substance," "hazardous
material," "solid waste" or similarly designated substance under any Applicable
Law; or (iii) that contains gasoline, diesel fuel or other petroleum
hydrocarbons, polychlorinated biphenyls (PCBs) or asbestos.

         "HC" has the meaning set forth in the introductory paragraph of this
Agreement.

         "HC Avalanche Membership Interest" has the meaning set forth in Recital
E.

         "HC Nuggets LP Partnership Interest" has the meaning set forth in
Recital E.

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

         "Income Taxes" means: (A) all Taxes imposed upon or measured by income,
profits or gross receipts; and (B) any interest, penalties or additions to tax
with respect to the items in clause (A).

         "Indenture" means the Indenture, dated as of July 29, 1998, by and
between the Denver Arena Trust, as issuer, and the Indenture Trustee.

         "Indenture Trustee" means The Bank of New York, as indenture trustee of
the Indenture.

         "Intellectual Property" means any and all (a) trademarks, service
marks, trade names, logos, and registrations and applications for registration
thereof; (b) works in which copyright may be claimed and for which registrations
or applications for registration thereof have been made; (c) patents, patent
applications, and related technical information; and (d) intellectual property
rights substantially similar to any of the foregoing; that the Purchased
Entities own or have a right to pursuant to license, sublicense, agreement, or
written permission or otherwise.

         "Intercreditor Agreement" means (i) prior to the City Transfer, the
Intercreditor Subordination and Release Agreement (Construction Term) among the
City, Denver Arena Trust, the Indenture Trustee and Ascent Arena Company dated
July 29, 1998 and (ii) after the City Transfer, the Intercreditor Agreement
among the City, Ascent Arena Company and Denver Arena Trust dated on or about
the date of the City Transfer.

         "Interim Period Expenses" has the meaning set forth in Section 3.2(f).

         "Interim Period Funds" has the meaning set forth in Section 3.2(f).

         "Interim Period Intercompany Loans" has the meaning set forth in
Section 3.2(f).

                                     - 10 -

<PAGE>   17

         "IRS" means the United States Internal Revenue Service or any
Governmental Authority succeeding to any or all of its functions.

         "Key Employees" (individually, a "Key Employee") means any employee
identified in Schedules 5.5(a) and 5.5(b) whose annual compensation exceeds
$100,000.

         "KMA Stick" has the meaning set forth in the introductory paragraph of
this Agreement.

         "KMC Center" has the meaning set forth in the introductory paragraph of
this Agreement.

         "KMN Ball" has the meaning set forth in the introductory paragraph of
this Agreement.

         "KMS Sports" has the meaning set forth in the introductory paragraph of
this Agreement.

         "Knowledge" of Seller shall refer to whether any of Seller's executive
officers, including Don Elliman, Dave Holden, Art Aaron and David Ehrlich, had
actual knowledge of the matters involved, without any duty of investigation.

         "Kroenke" means E. Stanley Kroenke, individually.

         "LDA" has the meaning set forth in Recital C.

         "LDA Ascent Arena Company Membership Interest" has the meaning set
forth in Recital C.

         "LDA Ascent Arena Company Membership Interest Value" means $18,668,716.

         "Leased Property" has the meaning set forth in Section 5.12(c)(ii)(F).

         "Levy Concession Agreement" means the Management Agreement, dated as of
April 3, 1998, between Ascent Arena Company and Levy Premium Food Service, Inc.

         "Liabilities" means, with respect to any Person, any debts (including
interest thereon and any prepayment penalties applicable thereto), liabilities,
claims, or obligations of such Person of any kind, character or description,
whether absolute or contingent, monetary or non-monetary, accrued or unaccrued,
liquidated or unliquidated, secured or unsecured, joint or several, due or to
become due, vested or unvested, executory, determined or determinable; it being
agreed that unknown liabilities of any nature not required to be disclosed on a
balance sheet prepared in accordance with GAAP shall not be deemed to be
Liabilities.

         "Liability Issue" has the meaning set forth in Section 9.5(g)(ii).

         "Liberty Acquisition Date" means March 28, 2000.

         "Licenses" has the meaning set forth in Section 5.13(b).

                                     - 11 -

<PAGE>   18

         "Lien" means, with respect to any asset, any mortgage, title defect,
lien, pledge, charge, security interest, hypothecation, restriction, or
encumbrance of any kind in respect of such asset (other than Permitted Liens).

         "LLC-I" has the meaning set forth in Recital A.

         "LLC-I Membership Interest" has the meaning set forth in Recital J.

         "LLC-I Nuggets LP Partnership Interest" has the meaning set forth in
Recital E.

         "LLC-II" has the meaning set forth in Recital A.

         "LLC-II Membership Interest" has the meaning set forth in Recital B.

         "Luxury Suite License Agreements" means the licenses of luxury suites
in the Pepsi Center which have been granted and are in full force and effect as
of the Effective Date.

         "Material Adverse Effect" means a change in, or effect on, the
operations, financial condition, results of operations, Assets, or Liabilities
of any of the Purchased Entities, the Development Property, the Arena Land or
the Pepsi Center, as applicable, that, individually or in the aggregate, results
in, or could reasonably be expected to result in, a material adverse effect on,
or a material adverse change in, either of (a) Avalanche LLC, or (b) Nuggets LP
and the Pepsi Center, taken as a whole, other than any such material adverse
effect, or material adverse change, resulting from a change, effect, condition,
event or circumstance that (i) affects the NBA and the NBA Member Teams
generally, (ii) affects the NHL and the NHL Member Teams generally, (iii) arises
out of or is attributable to general economic conditions, whether locally,
regionally or nationally, or (iv) relates to any matter contemplated by or
disclosed in this Agreement.

         "Mortgage" means (i) prior to the City Transfer, that certain Fee and
Leasehold Deed of Trust, Assignment of Rents, Leases, Security Agreement and
Fixture Filing from Nuggets LP, as fee owner, and Ascent Arena Company, as
ground lessee and owner of the improvements on the Arena Land, to the Public
Trustee of the City for the benefit of the Denver Arena Trust, as assigned and
pledged to the Indenture Trustee, encumbering Nuggets LP's fee interest and
Ascent Arena Company's leasehold interest in the Arena Land under the Ground
Lease and the Ascent Arena Company's fee interest in the Pepsi Center, and (ii)
after the City Transfer, that certain Leasehold Deed of Trust, Assignment of
Leases and Rents, Security Agreement and Fixture Filing from Ascent Arena
Company as ground lessee and owner of the improvements on the Arena Land to the
Public Trustee of the City for the benefit of the Denver Arena Trust, as
assigned and pledged to the Indenture Trustee, encumbering Ascent Arena
Company's leasehold interest in the Arena Land under the City Ground Lease and
its interest in the improvements on the Arena Land.

         "Mountain Mobile" has the meaning set forth in Recital F.

         "Mountain Mobile Membership Interest" has the meaning set forth in
Recital F.

                                     - 12 -

<PAGE>   19

         "Multiemployer Plan" means a "multiemployer plan" as defined in section
3(37) of ERISA.

         "NBA" has the meaning set forth in Recital F.

         "NBA Member Teams" means the professional basketball teams holding NBA
franchises.

         "NHL" has the meaning set forth in Recital G.

         "NHL Member Teams" means the professional hockey teams holding NHL
franchises.

         "NHL Strike Fund Amount" has the meaning set forth in Section 3.2(f).

         "Non-Income Taxes" means all Taxes other than Income Taxes.

         "Notes" means the revenue-backed notes issued pursuant to the
Indenture.

         "Nuggets" has the meaning set forth in Recital F.

         "Nuggets Balance Sheet" means the unaudited balance sheet of Nuggets LP
as of March 31, 2000.

         "Nuggets Contracts" means all Contracts listed on Schedule 5.12(b)(i)
to which Nuggets LP is a party or by which it is bound.

         "Nuggets LP" has the meaning set forth in Recital E.

         "Ogden Concession Agreement" means the Management Agreement, dated as
of April 3, 1998, between Ascent Arena Company and Ogden Entertainment, Inc.

         "Operating and Management Agreement" means the Operating and Management
Agreement, dated as of July 29, 1998, by and between Ascent Arena Company, as
Owner, and Arena Operating Company, as Operator, with respect to the Pepsi
Center.

         "Organizational Documents" means (i) for any corporation, the
certificate or articles of incorporation, the bylaws, any certificate of
designation or instrument relating to the rights of preferred shareholders of
such corporation, and any shareholder rights agreement, (ii) for any limited
liability company, the certificate or articles of organization and operating or
equivalent agreement, and (iii) for any general or limited partnership, any
partnership certificate and the partnership agreement.

         "Overhead Bridge" has the meaning set forth in Section 5.12(c)(ii)(F).

         "P&P Entity" and "P&P Entities" have the meanings set forth in Section
5.11(a).

                                     - 13 -

<PAGE>   20

         "Partnership Entity" has the meaning set forth in Section 5.11(a)(v).

         "PBGC" means the Pension Benefit Guaranty Corporation or any entity
succeeding to any or all of its functions under ERISA.

         "Pepsi Agreement" means the Agreement for Naming Rights, Pouring
Rights, Sponsorship and Promotion, dated as of June 2, 1998, by and between
Pepsi-Cola Company, a division of Pepsico, Inc., and Ascent Arena Company, as
amended and restated July 29, 1998.

         "Pepsi Center" has the meaning set forth in Recital C.

         "Permitted Liens" means (i) the limitations imposed by the NHL
Constitution, By-Laws, rules and regulations, (ii) the limitations imposed by
the NBA Constitution, By-Laws, rules and regulations, (iii) the City Lien, and
(iv) the Liens listed on Exhibit "B."

         "Person" means an individual, corporation, limited liability company,
partnership, association, trust, estate or other entity or organization,
including a Governmental Authority.

         "Plans and Specifications" means the construction plans and
specifications for construction of the Pepsi Center, prepared by the Architect,
as listed on Schedule 1.1.

         "Post-Closing Period" means any period with respect to which Taxes are
assessed that begins after the Closing Date and, with respect to any period that
begins before the Closing Date and ends after the Closing Date, the portion of
that period beginning after the Closing Date.

         "Pre-Closing Period" means any period with respect to which Taxes are
assessed that ends on or prior to the Closing Date and, with respect to any
period that begins before the Closing Date and ends after the Closing Date, the
portion of that period ending on the Closing Date.

         "Post-June 30 Loans" has the meaning set forth in Section 3.2(f).

         "Predecessor Entity" means (i) Ascent Arena and Development
Corporation, a Delaware corporation, (ii) Ascent Sports, Inc., a Delaware
corporation, and (iii) any and all other legal entities (including corporations,
partnerships and limited liability companies) that have previously been
liquidated into or merged into or with any of the Purchased Entities and with
respect to which any of the Purchased Entities is a surviving entity and/or
succeeded by operation of law to the liabilities of such legal entity.

         "Principals" (individually, a "Principal") has the meaning set forth in
Section 6.7(a).

         "Proceedings" has the meaning set forth in Section 5.4.

         "Proposed Return" has the meaning set forth in Section 9.5(e)(i).

                                     - 14 -

<PAGE>   21

         "Purchased Entities" means the Sports Entities and the Ascent Arena
Entities.

         "Purchased Entities' Employee Plan" means any Employee Plan of any of
the Purchased Entities.

         "Purchased Entities' ERISA Plan" means any ERISA Plan of any of the
Purchased Entities.

         "Purchased Entities' Qualified Plan" means any Qualified Plan of any of
the Purchased Entities.

         "Purchasers" and "Purchaser" have the meanings set forth in the
introductory paragraph of this Agreement.

         "Qualified Plan" of a Person means any ERISA Plan of the Person and any
other pension, profit sharing or stock bonus plan within the meaning of section
401(a) of the Code maintained by the Person or to which the Person contributes
or has an obligation to contribute.

         "Redevelopment Agreement" means the Redevelopment Agreement, dated as
of November 1, 1997, between DURA and Ascent Arena Company, as the same may be
amended from time to time.

         "Returns" mean all returns, declarations, reports, forms, claims for
refund, estimates, information returns and statements, including amendments,
required to be filed with or supplied to any Governmental Authority in
connection with any Taxes.

         "Return Preparation Standard" means the preparation of a Return and the
reporting of any item thereon in accordance with specific accounting practices
used by the particular Purchased Entity for Returns filed with respect to the
1996, 1997 and 1998 reporting periods (which accounting practices shall include
tax elections, income recognition practices, expense recognition practices,
asset write-off periods and other specific accounting methods) and to the extent
the reporting of any item is not covered by such accounting practices, in
accordance with applicable tax laws; provided, that if and to the extent any tax
elections must be made by any of the Purchased Entities pursuant to specific
provisions of this Agreement (including elections under section 754 of the
Code), such tax elections shall be deemed to be included in the Return
Preparation Standard.

         "Revenue Agreements" means each of (a) the Luxury Suite License
Agreements; (b) the Pepsi Agreement; (c) the Coors Agreement; (d) the US West
Agreement; and (e) any Subsequent Revenue Agreement (as defined in the
Indenture).

         "Revenue Agreement Rights" has the meaning set forth in the Indenture.

         "Sale and Servicing Agreement" means the Sale and Servicing Agreement,
dated as of July 29, 1998, among the Denver Arena Trust, Ascent Arena Company
and the Indenture Trustee.

                                     - 15 -

<PAGE>   22

         "Securities Act" means the Securities Act of 1933, as amended from time
to time, the regulations promulgated thereunder, and any successor statute.

         "Security Documents" means (i) the Mortgage, and the assignment and
pledge thereof by the Denver Arena Trust to the Indenture Trustee; (ii) the
Pledge and Security Agreement, dated as of July 29, 1998, between Ascent Arena
Company and the Denver Arena Trust, pursuant to which Ascent Arena Company
grants to the Denver Arena Trust a first lien on the Excess Collateral (as
therein defined); (iii) the Pledge and Security Agreement, dated as of July 29,
1998, between the Denver Arena Trust and the Indenture Trustee, pursuant to
which the Denver Arena Trust grants the Indenture Trustee a first lien security
interest on the Collateral (as therein defined); (iv) the Pledge of Pledged
Contracts, dated as of July 29, 1998, from Ascent Arena Company to the Denver
Arena Trust, and the Assignment of Pledged Contracts, dated as of July 29, 1998
from the Denver Arena Trust to the Indenture Trustee, together with all obligor
consents delivered in connection therewith; (v) the Collateral Assignment of
Rents, Revenues and Agreements, dated as of July 29, 1998 by Ascent Arena
Company for the benefit of the City; (vi) the Intercreditor Agreement; (vii) the
Ascent Entertainment Assignment; (viii) the Estoppel Agreement dated as of July
29, 1998 among the City, the Denver Arena Trust and the Indenture Trustee with
respect to the Arena Agreement; and (ix) the Estoppel Agreement dated as of July
29, 1998, among DURA, the Denver Arena Trust and the Indenture Trustee with
respect to the Redevelopment Agreement, as any of the above may have been or may
be amended from time to time.

         "Seller" has the meaning set forth in the introductory paragraph of
this Agreement.

         "Seller Ascent Arena Company Membership Interest" has the meaning set
forth in Recital C.

         "Seller's 401(k) Plan" has the meaning set forth in Section 9.6(c).

         "Sports Entities" (individually, a "Sports Entity") means Nuggets LP,
Avalanche LLC and LLC-I.

         "Sports Entities' Contracts" means all Nuggets Contracts, Avalanche
Contracts and any other Contracts, whether written or oral, to which any Sports
Entity is a party or by which it is bound as of the Effective Date or on the
Closing Date providing for actual or contingent expenditures, receipts or
liabilities in excess of $500,000 per year all as set forth on Schedule
5.12(b)(i).

         "Sports Entities' Insurance Policies" has the meaning set forth in
Section 5.10(a).

         "Sports Entities' Permits" has the meaning set forth in Section
5.12(f)(i).

         "Sports Entities' Required Consents" has the meaning set forth in
Section 5.12(f)(ii).

         "Sports Entities' Required Contractual Consent" has the meaning set
forth in Section 5.12(f)(ii).

                                     - 16 -

<PAGE>   23

         "Sports Entities' Required Governmental Approval" has the meaning set
forth in Section 5.12(f)(ii).

         "Subject Entities" (individually, a "Subject Entity") means Seller,
Ascent Arena Entities, and the Sports Entities.

         "Subsidiary(ies)" means, with respect to any Person, any corporation or
other entity as to which more than 50% of the outstanding stock or other equity
interests having ordinary voting rights or power (and excluding stock or other
equity interests having voting rights only upon the occurrence of a contingency
unless and until such contingency occurs and such rights may be exercised) is
owned or controlled, directly or indirectly, by such Person and/or by one or
more of such Person's Subsidiaries.

         "Tax Partnership" means a Partnership Entity and any other entity
treated as a partnership for federal income tax purposes in which a Purchased
Entity has a direct or indirect interest.

         "Tax Proceeding" has the meaning set forth in Section 9.5(g)(iii).

         "Taxes" mean all taxes, however denominated, including any interest,
penalties or other additions to tax that may become payable in respect thereof,
imposed by any Governmental Authority, which taxes shall include all income or
profits taxes, payroll and employee withholding taxes, unemployment insurance,
social security taxes, sales and use taxes, ad valorem taxes, excise taxes,
franchise taxes, gross receipts taxes, business license taxes, occupation taxes,
real and personal property taxes, stamp taxes, environmental taxes, and transfer
taxes and other obligations of the same or of a similar nature to any of the
foregoing, any Purchased Entity is required to pay, withhold or collect.

         "Teams" (individually, a "Team") means, collectively, the Nuggets and
the Avalanche.

         "Transaction Documents" (individually, a "Transaction Document") means
this Agreement and all other documents delivered by Seller and Purchasers in
order to effect the transactions contemplated by this Agreement.

         "Transfer Taxes" has the meaning set forth in Section 9.5(c).

         "Trust Agreement" means the Amended and Restated Trust Agreement of
Denver Arena Trust, dated as of July 29, 1998, among Ascent Arena Company as
transferor, Wilmington Trust Company, as owner trustee, and The Bank of New
York, as certificate paying agent.

         "Trust Certificates" has the meaning set forth in Section 5.2(d)(i).

         "Trustee's Lien" means the lien created by those Security Documents
which create any lien or security interest for the benefit of the Indenture
Trustee.

                                     - 17 -

<PAGE>   24

         "US West Agreement" means the Agreement for Sponsorship and Promotion,
dated as of June 26, 1998, between US West, Inc. and Ascent Arena Company, as
amended and restated upon delivery to the Denver Arena Trust.

         "User Agreements" means, collectively (i) the agreement between
Avalanche LLC and Ascent Arena Company concerning the use of the Pepsi Center by
the Colorado Avalanche, and (ii) the agreement between the Nuggets LP and Ascent
Arena Company concerning the use of the Pepsi Center by the Denver Nuggets.

         "VCUP" means the Application for a Voluntary Cleanup Plan submitted to
the Colorado Department of Public Health and Environment, dated March 10, 1995,
and all correspondence, supplements, addenda, and extensions thereof.

         "Wasserstein Perella" means Wasserstein Perella & Co., Inc.

                                   ARTICLE II.

                                PURCHASE AND SALE

         2.1 AEG Ownership Interests. At Closing, subject to the terms and
conditions of this Agreement, AEG shall sell, transfer, convey and deliver to
(i) KMS Sports, and KMS Sports shall purchase from AEG, free and clear of all
Liens, the AEG Avalanche Membership Interest, and (ii) KMS Sports, and KMS
Sports shall purchase from AEG, free and clear of all Liens, the AEG Nuggets LP
Partnership Interest. In addition, at Closing AEG will assign to KMS Sports the
license for Suite #95 at the Pepsi Center.

         2.2 HC Ownership Interests. At Closing, subject to the terms and
conditions of this Agreement, HC shall sell, transfer, convey and deliver to (i)
KMA Stick, and KMA Stick shall purchase from HC, free and clear of all Liens,
the HC Avalanche Membership Interest, and (ii) KMN Ball, and KMN Ball shall
purchase from HC, free and clear of all Liens, the LLC-I Membership Interest and
the HC Nuggets LP Partnership Interest.

         2.3 LLC-II Membership Interest. At Closing, subject to the terms and
conditions of this Agreement, HC shall sell, transfer, convey and deliver to KMC
Center, and KMC Center shall purchase from HC, free and clear of all Liens, the
LLC-II Membership Interest.

         2.4 Seller Ascent Arena Company Membership Interests. At Closing,
subject to the terms and conditions of this Agreement, AEG shall sell, transfer,
convey and deliver to KMS Sports, and KMS Sports shall purchase from AEG, free
and clear of all Liens, AEG's 1% Ascent Arena Company Membership Interest.

         2.5 Purchase Price. The aggregate purchase price shall be $450,000,000
(the "Gross Purchase Price"), subject to adjustment as provided in the following
sentence. The Gross Purchase Price shall be reduced by the sum of (i) the Agreed
Adjustment Amount, (ii) the outstanding

                                     - 18 -

<PAGE>   25

principal amount of the Notes as of the Closing Date, which shall remain
outstanding immediately after the Closing Date, and (iii) the LDA Ascent Arena
Company Membership Interest Value (the Gross Purchase Price as so adjusted,
being referred to as the "Adjusted Purchase Price"). The Adjusted Purchase Price
shall be paid on the Closing Date by wire transfer of immediately available
funds to an account designated by Seller at least two Business Days prior to the
Closing Date.

                                  ARTICLE III.

                               COVENANTS OF SELLER

         3.1 Compliance with Contracts and Applicable Law. Subject to the
matters disclosed on Schedule 5.2,

                  (a) Nuggets. From the Effective Date through the Closing Date,
AEG, HC, LLC-I and Nuggets LP shall comply in all material respects with all
conditions and requirements set forth in (i) all applicable Sports Entities'
Contracts, (ii) the Organizational Documents applicable to such entities, (iii)
any and all applicable NBA agreements and documents or other material Contracts
of such entities, (iv) the VCUP, (v) Applicable Law, and (vi) this Agreement.

                  (b) Avalanche. From the Effective Date through the Closing
Date, AEG, HC, and Avalanche LLC shall comply in all material respects with all
conditions and requirements set forth in (i) all applicable Sports Entities'
Contracts, (ii) the Organizational Documents applicable to such entities, (iii)
any and all applicable NHL agreements and documents or other material Contracts
of such entities, (iv) the VCUP, (v) Applicable Law, and (vi) this Agreement.
AEG, HC and Avalanche LLC will coordinate with Purchasers the method of funding
of the NHL Strike Fund Amount, if any.

                  (c) Ascent Arena Entities. From the Effective Date through the
Closing Date, AEG, HC and the Ascent Arena Entities shall comply in all material
respects, or cause such compliance, with all conditions and requirements set
forth in (i) the Arena Contracts, (ii) the Licenses, (iii) the Organizational
Documents of such entities, (iv) the VCUP, (v) Applicable Law, and (vi) this
Agreement.

         3.2 Conduct of Business in the Ordinary Course.

                  (a) Sports Entities. From the Effective Date through the
Closing Date, neither Seller nor the Sports Entities shall take any action or
fail to take any action if such action or inaction, as the case may be, would be
outside the ordinary course of business and inconsistent with past practices,
except as specifically contemplated by the terms of this Agreement (including
the City Transfer and the matters described in Sections 3.2(e), 3.2(f) and
9.11). Notwithstanding the foregoing, except as specifically contemplated by the
terms of this Agreement (including the City Transfer and the matters described
in Sections 3.2(e), 3.2(f) and 9.11), neither Seller nor any Sports Entity shall
take any of the following actions without the prior written consent of
Purchasers:

                                     - 19 -

<PAGE>   26

                           (i) create, permit or suffer to exist any Lien on any
                           of the Assets of the Sports Entities, other than
                           Liens created in the ordinary course of business
                           consistent with past practices pursuant to
                           sponsorship agreements or agreements related to the
                           operation of the Avalanche and Nuggets and except
                           pursuant to the Arena Contracts after consultation
                           with the Designated Representative;

                           (ii) sell, transfer or convey, or enter into any
                           Contract (including any Contract that grants any
                           Person any right to use, access, lease or acquire any
                           of the Intellectual Property Assets of the Sports
                           Entities) with a value of more than $500,000 which
                           grants any Person any right to use, access (other
                           than on a short-term basis, i.e., for a term of one
                           year or less or for a term that is terminable without
                           penalty or premium at the option of any of the Sports
                           Entities on not more than 90 days' advance notice),
                           lease or acquire any of the material Assets of the
                           Sports Entities, except pursuant to the Arena
                           Contracts after consultation with the Designated
                           Representative;

                           (iii) amend any Sports Entities' Contract in any
                           manner that would require the prior written consent
                           of Purchasers under Section 3.2(a)(ii) if it were a
                           new Contract, except as expressly permitted by this
                           Agreement;

                           (iv) amend any Organizational Document of any of the
                           Sports Entities;

                           (v) make a loan (other than for reasonable travel
                           expenses in the ordinary course of business) to any
                           Person, including an Affiliate, other than to any
                           other Purchased Entity;

                           (vi) incur any indebtedness other than trade payables
                           incurred in the ordinary course of business pursuant
                           to Contracts now in effect or entered into in
                           accordance with this Section 3.2(a);

                           (vii) make any intercompany transfer from a Purchased
                           Entity to Seller, or make any distribution, dividend
                           or other payment from a Purchased Entity to its
                           members or partners, other than any other Purchased
                           Entity;

                           (viii) except for the indebtedness listed on Schedule
                           3.2(a)(vi), prepay any indebtedness to any Person
                           other than a Purchased Entity, including any
                           indebtedness to Seller;

                           (ix) enter into any Contract with any Affiliate or
                           enter into or terminate any Contract with obligations
                           on the part of any Sports Entity in excess of
                           $500,000;

                                     - 20 -

<PAGE>   27

                           (x) amend any Employee Plan to increase benefits, or
                           create any new Employee Plan other than as required
                           by Applicable Law or previously existing contractual
                           commitment;

                           (xi) solicit from any Sports Entity, directly or
                           indirectly, for Seller or any other Person, any Key
                           Employee; or

                           (xii) make any material change in their accounting or
                           tax principles, methods or practices or in the manner
                           they keep their books and records.

                  Purchasers shall not unreasonably delay consent to or
rejection of any of the actions described in this Section 3.2(a). To the extent
that Seller takes or fails to take action on any matter described in this
Section 3.2(a) in accordance with instructions given to it by the Designated
Representative (or deemed to have been given in accordance with paragraph (c)
below), Purchasers shall be deemed to have waived in respect of such matter any
right they may otherwise have to claim a breach of a representation or to assert
any claim hereunder.

                  (b) Ascent Arena Entities and the Development Property. From
the Effective Date through the Closing Date, neither Seller nor any Ascent Arena
Entity shall take any action or fail to take any action if such action or
inaction, as the case may be, would be outside the ordinary course of business
and inconsistent with past practices, except as specifically contemplated by the
terms of this Agreement (including the City Transfer and the matters described
in Sections 3.2(e), 3.2(f), 9.11 and 9.14). Notwithstanding the foregoing,
except as specifically contemplated by the terms of this Agreement (including
the City Transfer and the matters described in Sections 3.2(e), 3.2(f), 9.11 and
9.14), neither Seller nor any Ascent Arena Entity shall take any of the
following actions without the prior written consent of Purchasers:

                           (i) create, permit or suffer to exist any Lien on the
                           Pepsi Center, the Development Property, or the Assets
                           of any Ascent Arena Entity, except the City Lien, the
                           Trustee's Lien, Liens created in the ordinary course
                           of business consistent with past practices related to
                           sponsorship agreements and other contracts disclosed
                           on Schedule 5.13(e) and except pursuant to the Arena
                           Contracts after consultation with the Designated
                           Representative;

                           (ii) sell, transfer or convey, or enter into any
                           Contract (including any Contract that grants any
                           Person any right to use, access, lease or acquire any
                           of the Intellectual Property Assets of any of the
                           Ascent Arena Entities) with a value in excess of
                           $500,000 which grants any Person any right to use,
                           access (other than on a short-term basis, i.e., for a
                           term of one year or less or for a term that is
                           terminable without penalty or premium at the option
                           of any of the Ascent Arena Entities on not more than
                           90 days' advance notice), lease or acquire the Pepsi
                           Center, any interest in or any portion thereof, or
                           any of the material Assets of any Ascent Arena
                           Entity, except pursuant to the Arena Contracts after
                           consultation with the Designated Representative;

                                     - 21 -

<PAGE>   28

                           (iii) sell, transfer or convey, or enter into any
                           Contract with a value in excess of $500,000 which
                           grants any Person any right to use, access (other
                           than on a short-term basis, i.e., for a term of one
                           year or less or for a term that is terminable without
                           penalty or premium at the option of any of the Ascent
                           Arena Entities on not more than 90 days' advance
                           notice), lease or acquire the Development Property or
                           any interest in or any portion thereof, except
                           pursuant to the Arena Contracts after consultation
                           with the Designated Representative;

                           (iv) amend any Arena Contract in any manner that
                           would require the prior written consent of Purchasers
                           under Section 3.2(b)(ii) or (iii) if it were a new
                           Contract, except as expressly permitted by this
                           Agreement;

                           (v) amend any Organizational Document of any Ascent
                           Arena Entity;

                           (vi) make a loan (other than for reasonable travel
                           expenses in the ordinary course of business) to any
                           Person, including an Affiliate, other than to any
                           other Purchased Entity;

                           (vii) incur any indebtedness other than trade
                           payables incurred in the ordinary course of business
                           pursuant to Contracts now in effect or pursuant to
                           the Arena Contracts or entered into in accordance
                           with this Section 3.2(b);

                           (viii) make any intercompany transfer from a
                           Purchased Entity to Seller or make any distribution,
                           dividend or other payment from a Purchased Entity to
                           its members or shareholders, other than any other
                           Purchased Entity;

                           (ix) except for the indebtedness listed on Schedule
                           3.2(b)(vii), prepay any indebtedness to any Person
                           other than an Ascent Arena Entity, including any
                           indebtedness to Seller;

                           (x) enter into any Contract with any Affiliate or
                           enter into or terminate any Contract with obligations
                           on the part of any Ascent Arena Entity in excess of
                           $500,000;

                           (xi) amend any Employee Plan to increase benefits, or
                           create any new Employee Plan, other than as required
                           by Applicable Law or previously existing contractual
                           commitment;

                           (xii) solicit from any Ascent Arena Entity, directly
                           or indirectly, for Seller or any other Person, any
                           Key Employee; or

                           (xiii) make any material change in their accounting
                           or tax principles, methods or practices or in the
                           manner they keep their books and records.

                                     - 22 -

<PAGE>   29

                  Purchasers shall not unreasonably delay consent to or
rejection of any of the actions described in this Section 3.2(b). To the extent
that Seller takes or fails to take action on any matter described in this
Section 3.2(b) in accordance with instructions given to it by the Designated
Representative (or deemed to have been given in accordance with paragraph (c)
below), Purchasers shall be deemed to have waived in respect of such matter any
right they may otherwise have to claim a breach of a representation or to assert
any claim hereunder.

                  (c) Designated Representative. Purchasers shall appoint a
person(s) to serve as primary contact for Seller in conjunction with Sections
3.2 and 3.5 (the "Designated Representative"). For purposes of Seller seeking
required approvals under this Section 3.2, Seller shall deliver written
notification (in the manner provided in Section 10.1) to the Designated
Representative as to the matter for which Seller is seeking approval. The
Designated Representative may grant or deny approval within 48 hours of such
notification or indicate that it shall accede to management's judgment. If the
Designated Representative does not deliver such written notification within the
48-hour period or indicates that it shall accede to management's judgment, such
approval shall be deemed to have been given.

                  (d) Notice. Seller shall promptly notify Purchasers, in
writing, of the occurrence or existence of any event or circumstance of which
Seller or any Purchased Entity is aware and which would (i) violate this Section
3.2, or (ii) make the satisfaction of any condition in Section 7.1 impossible or
unlikely.

                  (e) Approved Budgets. Seller has delivered to Purchasers, and
Purchasers have approved, operating and capital budgets for the period from
April 1, 2000 through September 30, 2000 for the following: (i) Nuggets LP, (ii)
Avalanche LLC, (iii) Ascent Arena Company, (iv) LLC-I, and (v) LLC-II (the
"Approved Budgets"). Expressly subject to the limitations and covenants provided
in Article III, Seller may take any actions or make any expenditures
substantially in accordance with the Approved Budgets without the prior written
consent of Purchasers.

                  (f) Intercompany Loans. Between the Balance Sheet Date and the
Closing Date, all revenues, cash, funds, notes, accounts receivable and the
like, of any kind, received by the Purchased Entities, including funds received
by any Purchased Entity with respect to season tickets, club seats, luxury
suites, television, radio, marketing, sponsorships or advertising, including
deferred revenues relating to prepayments for any such items (collectively, the
"Interim Period Funds"), will be retained by the Purchased Entities and may be
used by the Purchased Entities to pay for operating expenses and capital
expenditures relating to the Business in accordance with the Approved Budgets
(the "Interim Period Expenses"). If the Interim Period Funds are not sufficient
to pay the Interim Period Expenses, Seller or Liberty Media Corporation shall
advance funds to the Purchased Entities in an amount sufficient to cover the
shortfall between the amount of the Interim Period Expenses and the amount of
the Interim Period Funds, and any such advances shall be treated as intercompany
loans, which shall bear interest at the per annum rate of interest publicly
announced from time to time by The Bank of New York as its prime rate (or
reference rate) plus 1%, from Seller or Liberty Media Corporation, as the case
may be, and the Purchased Entities (the "Interim Period Intercompany Loans"). If
at any time between the Balance Sheet Date and the Closing Date the

                                     - 23 -

<PAGE>   30

Purchased Entities have excess Interim Period Funds not required to pay Interim
Period Expenses, such excess Interim Period Funds may be used to repay, in whole
or in part, any Interim Period Intercompany Loans. On the Closing Date, any
unpaid principal balance of and any accrued but unpaid interest on any Interim
Period Intercompany Loans shall be paid by the Purchased Entities to Seller or
Liberty Media Corporation, as applicable, in full; provided, however, that if
the Purchased Entities do not have sufficient cash and cash equivalents on the
Closing Date to repay all outstanding Interim Period Intercompany Loans in full,
all cash and cash equivalents of the Purchased Entities will be used to repay in
part the Interim Period Intercompany Loans and any remaining balance of the
Interim Period Intercompany Loans will be forgiven and discharged, and provided
further, that if the Closing occurs after June 30, 2000, then (x) Seller or
Liberty Media Corporation shall be entitled at Closing to repayment in full of
any Interim Period Intercompany Loans made after June 30, 2000 (the "Post-June
30 Loans"), and Purchasers will provide cash to the Purchased Entities (either
as a loan or as a contribution, at the option of Purchasers) immediately prior
to the Closing, to the extent that the Purchased Entities otherwise would not
have sufficient cash and cash equivalents to repay the Post-June 30 Loans in
full, and (y) any revenues, cash, funds, notes, accounts receivable and the like
received by the Purchased Entities after June 30, 2000, shall not be used to
repay any Interim Period Intercompany Loans made before June 30, 2000.
Notwithstanding any of the preceding provisions of this Section 3.2(f) to the
contrary, if any one or more of the Purchased Entities make any expenditure or
advance of funds prior to Closing in connection with establishment of a strike
fund as required by the NHL (the "NHL Strike Fund Amount") and if the Purchased
Entities would not have sufficient cash and cash equivalents at Closing to repay
all Interim Period Intercompany Loans in full, Purchasers will provide cash to
the Purchased Entities (either as a loan or as a contribution, at the option of
Purchasers) immediately prior to Closing, in an amount equal to the lesser of
(i) the NHL Strike Fund Amount, and (ii) the amount of the Interim Period
Intercompany Loans that would otherwise not be repaid in full if Purchasers did
not provide cash to the Purchased Entities immediately prior to the Closing.

         3.3 Preservation of Business. From the Effective Date through the
Closing Date, Seller shall cause the Purchased Entities to use their respective
reasonable best efforts to preserve intact the current Assets, business
organizations and relationships, and goodwill of the Purchased Entities, and to
keep available the services of the present officers, employees, players, agents
and other personnel of the Purchased Entities, excluding officers of Seller who
are not Key Employees, in each case to the extent commercially reasonable.

         3.4 Maintenance of Insurance Coverage and Certain Policies. From the
Effective Date through the Closing Date, neither Seller nor any of the Purchased
Entities shall take or fail to take any action if such action or inaction, as
the case may be, would adversely affect the applicability, prior to the Closing
Date, of any insurance policies listed on Schedule 3.4. Seller shall maintain
the insurance policies listed on Schedule 3.4 in effect through the Closing
Date.

         3.5 Current Information. From the Effective Date through the Closing
Date, Seller will cause one or more of its representatives to confer on a
regular basis with the Designated Representative with respect to the status of
the ongoing operations of the Purchased Entities. Seller promptly will notify
Purchasers of any material change in the normal course of business of the

                                     - 24 -

<PAGE>   31

Purchased Entities or, if known to Seller, of any complaints from a Governmental
Authority or of any litigation known to Seller (or written communications
received by Seller or the Purchased Entities indicating that the same may be
contemplated) or, if known to Seller or the Purchased Entities, the institution
or the threatened institution of any litigation in each case that would
challenge, prevent, alter or materially delay any of the transactions
contemplated by the Transaction Documents and Seller will keep Purchasers
informed with respect to such events. Seller and Purchasers will notify each
other at mutually agreeable times of the status of applications with
Governmental Authorities and third party consents related to the transactions
contemplated by the Transaction Documents. In addition, Seller will deliver
promptly to Purchaser copies of all internal financial reports regularly
prepared by or for Seller and Returns filed with any Governmental Authority, and
will allow Purchasers and/or their representatives reasonable access to any and
all records, files, contracts, employees, representatives, agents and other
information or Persons deemed necessary by Purchasers and/or their
representatives to verify representations and warranties made by Seller herein
and other information provided by Seller to Purchasers in connection with the
transactions contemplated by the Transaction Documents.

         3.6 Preservation of LDA's Ascent Arena Company Membership Interest. LDA
agrees not to sell or otherwise transfer, pledge, hypothecate or encumber the
LDA Ascent Arena Company Membership Interest prior to the Closing.

                                   ARTICLE IV.

                                     CLOSING

         4.1 Closing. Subject to the terms and conditions of this Agreement, the
sale and purchase of (a) the LLC-I Membership Interest, (b) the LLC-II
Membership Interest, (c) the Seller Ascent Arena Company Membership Interests,
(d) the AEG Nuggets LP Partnership Interest, (e) the AEG Avalanche Membership
Interest, (f) the HC Avalanche Membership Interest, and (g) the HC Nuggets LP
Partnership Interest (subsections (a), (b), (c), (d), (e), (f) and (g), and the
LLC-I Nuggets LP Partnership Interest are referred to collectively as the
"Equity Interests") contemplated by this Agreement shall take place at a closing
(the "Closing") to be held at the offices of Sherman & Howard L.L.C. in Denver,
Colorado on June 30, 2000, if all conditions to the obligations of the parties
set forth in this Agreement have been satisfied or waived on or prior to such
date, or at such other place or at such other time or on such other date as the
parties may mutually agree upon in writing (the day on, and the time at, which
the Closing takes place being the "Closing Date").

         4.2 Closing Deliveries by AEG. At the Closing, AEG shall deliver, or
cause to be delivered, to Purchasers (all in form and substance reasonably
satisfactory to Purchasers):

                  (a) An assignment to KMS Sports of all of AEG's right, title
and interest in and to its 1% Ascent Arena Company Membership Interest, together
with AEG's resignation as manager thereof, if applicable, effective as of the
Closing Date.

                                     - 25 -

<PAGE>   32

                  (b) An assignment to KMS Sports of all of AEG's right, title
and interest in and to the AEG Nuggets LP Partnership Interest.

                  (c) An assignment to KMS Sports of all of AEG's right, title
and interest in and to the AEG Avalanche Membership Interest, together with
AEG's resignation as manager thereof, if applicable, effective as of the
Closing.

                  (d) An assignment to KMS Sports of the license for Suite #95
at the Pepsi Center.

                  (e) A certificate executed by AEG pursuant to which AEG
represents and warrants to KMC Center, as of the Closing Date, the then-existing
balance of funds in each of the Accounts and the outstanding principal amount of
the Notes.

                  (f) The certificates, consents and other documents required to
be delivered pursuant to Section 7.1.

                  (g) All books, records and accounting papers of the Purchased
Entities, other than any required to be retained by AEG or any Purchased Entity
by Applicable Law, in which event copies will be delivered to Purchasers.

         4.3 Closing Deliveries by HC. At the Closing, HC shall deliver, or
cause to be delivered, to Purchasers:

                  (a) An assignment to KMN Ball of all of HC's right, title and
interest in and to the LLC-I Membership Interest.

                  (b) An assignment to KMC Center of all of HC's right, title
and interest in and to the LLC-II Membership Interest.

                  (c) An assignment to KMN Ball of all of HC's right, title and
interest in the HC Nuggets LP Partnership Interest.

                  (d) An assignment to KMA Stick of all of HC's right, title and
interest in the HC Avalanche Membership Interest.

         4.4 Closing Deliveries by Purchasers. At the Closing, Purchasers shall
deliver, or cause to be delivered, to Seller:

                  (a) By wire transfer of immediately available funds, the
Adjusted Purchase Price and any funds required to be provided by Purchasers to
the Purchased Entities pursuant to Section 3.2(f).

                  (b) The certificates and other documents required to be
delivered pursuant to Section 7.2 in form and substance reasonably satisfactory
to AEG.

                                     - 26 -

<PAGE>   33

                                   ARTICLE V.

                    REPRESENTATIONS AND WARRANTIES OF SELLER

         As an inducement to enter into this Agreement, Seller represents and
warrants to Purchasers that the following matters are true and correct as of the
Effective Date and as of the Closing Date unless limited to a specific date.

         5.1 General Corporate and Partnership Matters.

                  (a) Organization and Standing. Each Subject Entity:

                           (i) is a Person duly organized, validly existing and
                           in good standing under the laws of the jurisdiction
                           of its formation;

                           (ii) has full power and authority to own, lease and
                           operate its Assets and to conduct its Business as now
                           being conducted; and

                           (iii) is qualified or licensed to do business in all
                           states and other jurisdictions where its ownership,
                           leasing or operation of its Assets, or the conduct of
                           its Business, requires such qualification or
                           licensing, except where the failure to be so
                           qualified or registered would not result in a
                           Material Adverse Effect.

                  (b) Organizational Documents. The Purchased Entities have
delivered or made available to Purchasers true and complete copies of their
respective Organizational Documents and corporate, partnership or limited
liability company books, records and ledgers. Such documents contain true and
complete minutes and records of all issuances and transfers of any stock,
membership, partnership or other ownership interests in the Purchased Entities,
and all minutes and records of all meetings, consents, proceedings and other
actions of the partners, members, shareholders, board of directors and
committees of the board of directors of the Purchased Entities since the date of
incorporation or formation.

                  (c) Corporate Power; Authorization; No Contravention;
Consents.

                           (i) Seller has all requisite legal and corporate
                           power to enter into this Agreement and to carry out
                           and perform its obligations under the terms of this
                           Agreement and any other Transaction Document to which
                           it is a party.

                           (ii) The execution, delivery and performance of the
                           Transaction Documents and the consummation of the
                           transactions contemplated thereby have been duly
                           authorized by all necessary corporate action on the
                           part of Seller, and no other corporate proceedings or
                           action on the part of Seller are

                                     - 27 -

<PAGE>   34

                           necessary to authorize the Transaction Documents or
                           to consummate the transactions contemplated thereby.

                           (iii) The execution, delivery, and performance by
                           Seller of the Transaction Documents will not, and the
                           restructuring effected by AEG after July, 1999 with
                           respect to certain Purchased Entities and Predecessor
                           Entities did not:

                                    (A) conflict with or violate any of the
                           Organizational Documents of Seller or any of the
                           Purchased Entities;

                                    (B) result in any breach or violation of, or
                           constitute a default (with or without notice or lapse
                           of time, or both) under, or give rise to a right of
                           termination, cancellation or acceleration of any
                           Contract except as would not have a Material Adverse
                           Effect;

                                    (C) result in the creation of any Lien on
                           any of the Assets of a Purchased Entity;

                                    (D) require any consent or approval of any
                           third party or any party to any Contract of Seller or
                           the Purchased Entities the absence of which would
                           result in a Material Adverse Effect, other than the
                           City Consent, the consent of the other members of
                           Mountain Mobile with respect to the Mountain Mobile
                           Membership Interest and the Sports Entities' Required
                           Contractual Consents; or

                                    (E) conflict with or violate any Applicable
                           Law (other than such conflicts or violations that
                           would not have a Material Adverse Effect).

                  (d) Binding Effect. Each of the Transaction Documents to which
Seller is a party constitutes a legal, valid and binding obligation of Seller,
enforceable against it in accordance with its terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, or similar laws affecting
the enforcement of creditors' rights generally or by equitable principles
relating to enforceability.

                  (e) Governmental Authorization. No approval, consent,
exemption, authorization, or other action by, or notice to, or registration,
declaration or filing with, any Governmental Authority is necessary or required
in connection with the execution, delivery or performance by, or enforcement
against, Seller of any Transaction Document, other than:

                           (i) compliance with any applicable requirements of
                           the HSR Act with respect to the consummation of the
                           transactions contemplated hereby;

                                     - 28 -

<PAGE>   35

                           (ii) compliance with the registration requirements of
                           the Securities Act, or an exemption therefrom, and
                           any applicable state blue sky laws and the Securities
                           Exchange Act of 1934;

                           (iii) the City Consent;

                           (iv) any Sports Entities' Required Governmental
                           Approval; and

                           (v) as set forth in this Agreement.

                  (f) Subsidiaries. Except as set forth in Schedule 5.1(f) and
as provided herein, the Purchased Entities have no directly or indirectly owned
Subsidiaries and have made no advances to or investments in, and do not own any
securities of or other interests in, any Person.

         5.2 Title to Membership Interests and Partnership Interests. Except as
set forth on Schedule 5.2,

                  (a) Ascent Arena Company.

                           (i) The membership interests comprising Ascent Arena
                           Company are as follows:

                                            AEG                   1%
                                            LLC-II            92.48%
                                            LDA                6.52%

                           (ii) AEG and LLC-II have good title to the Seller
                           Ascent Arena Company Membership Interests, free and
                           clear of all Liens other than those created by the
                           Ascent Operating Agreement or this Agreement. AEG and
                           LLC-II are the record and beneficial owners of the
                           Seller Ascent Arena Company Membership Interests in
                           the ratios stated in Section 5.2(a)(i).

                           (iii) The Seller Ascent Arena Company Membership
                           Interests have been duly authorized and validly
                           issued, are fully paid and nonassessable, were not
                           issued in violation of the terms of any Contract
                           binding upon Ascent Arena Company, AEG, or LLC-II and
                           were issued in compliance with all applicable
                           Organizational Documents and Applicable Law.

                           (iv) Except as set forth in the Ascent Operating
                           Agreement, there are: (A) no existing Contracts or
                           rights of any character with respect to the purchase,
                           redemption or acquisition of any membership or other
                           interest in Ascent Arena Company, existing or
                           contingent, at any time, or upon the happening of any
                           stated event; (B) no outstanding interests that are
                           convertible into or exchangeable for membership or
                           other interests in Ascent Arena Company;

                                     - 29 -

<PAGE>   36

                           and (C) no Contracts or rights of any character to
                           purchase or otherwise acquire from AEG, Ascent Arena
                           Company, or LLC-II any such convertible or
                           exchangeable interests.

                  (b) Mountain Mobile.

                           (i) The membership interests comprising Mountain
                           Mobile are as follows:

                                    Nuggets LP                          1/3
                                    Fox Sports Rocky Mountain           1/3
                                    Norac                               1/3

                           (ii) Nuggets LP has good title to the Mountain Mobile
                           Membership Interest, free and clear of all Liens
                           other than those created by the Operating Agreement
                           of Mountain Mobile or this Agreement. Nuggets LP is
                           the record owner and LLC-I is the beneficial owner of
                           the Mountain Mobile Membership Interest, with the
                           sole right to vote, dispose of, and receive
                           distributions and dividends in respect of such
                           membership interest.

                           (iii) Except as set forth on Schedule 5.2(b)(iii),
                           the Mountain Mobile Membership Interest has been duly
                           authorized and validly issued, is fully paid and
                           nonassessable, and to the Knowledge of Seller, was
                           not issued in violation of the terms of any Contract
                           binding upon Mountain Mobile or Nuggets LP and was
                           issued in compliance with all applicable
                           Organizational Documents and Applicable Law.

                           (iv) Except as set forth in the Operating Agreement
                           of Mountain Mobile, and to the Knowledge of Seller,
                           there are: (A) no existing Contracts or rights of any
                           character with respect to the purchase, redemption or
                           acquisition of the Mountain Mobile Membership
                           Interest or any other membership interest in Mountain
                           Mobile, existing or contingent, at any time, or upon
                           the happening of any stated event that would dilute
                           the Mountain Mobile Membership Interest; (B) no
                           outstanding interests that are convertible into or
                           exchangeable for membership or other interests in
                           Mountain Mobile that would dilute the Mountain Mobile
                           Membership Interest; and (C) no Contracts or rights
                           of any character to purchase or otherwise acquire any
                           such convertible or exchangeable interests.

                  (c) Arena Operating Company.

                           (i) Ascent Arena Company is the sole member and
                           manager of Arena Operating Company, and no other
                           membership, management, equity or other interests in
                           Arena Operating Company exist.

                                     - 30 -

<PAGE>   37

                           (ii) Ascent Arena Company's interest in Arena
                           Operating Company is free and clear of all Liens
                           other than those created by the Arena Operating
                           Agreement or this Agreement. Ascent Arena Company has
                           the sole right to vote, dispose of, and receive
                           distributions and dividends in respect of Arena
                           Operating Company membership interests.

                           (iii) Ascent Arena Company's interest in Arena
                           Operating Company has been duly authorized and
                           validly issued, is fully paid and nonassessable, was
                           not issued in violation of the terms of any Contract
                           binding upon Arena Operating Company or Ascent Arena
                           Company, and was issued in compliance with all
                           applicable Organizational Documents and Applicable
                           Law.

                           (iv) Other than the Permitted Liens, there are: (A)
                           no existing Contracts or rights of any character with
                           respect to the purchase or acquisition of any
                           membership or other interest in Arena Operating
                           Company, existing or contingent, at any time, or upon
                           the happening of any stated event; (B) no outstanding
                           interests that are convertible into or exchangeable
                           for membership or other interests in Arena Operating
                           Company; and (C) no Contracts or rights of any
                           character to purchase or otherwise acquire from the
                           Arena Operating Company or Ascent Arena Company any
                           such convertible or exchangeable interests.

                  (d) Denver Arena Trust.

                           (i) Ascent Arena Company is the sole certificate
                           holder of the trust certificates of the Denver Arena
                           Trust (the "Trust Certificates"), and there are no
                           other outstanding trust certificates, and no
                           outstanding subscriptions, options, warrants, puts,
                           calls, rights, exchangeable or convertible securities
                           or other commitments or agreements of any nature
                           relating to the trust certificates of the Denver
                           Arena Trust. Ascent Arena Company has the sole right
                           to receive distributions with respect to the Residual
                           Interest as defined in the Trust Agreement, subject
                           only to the City Lien.

                           (ii) The Trust Certificates are free and clear of all
                           Liens, other than those created by the Trust
                           Agreement, this Agreement and the City Lien. The
                           Trust Certificates were issued in compliance with the
                           Trust Agreement and Applicable Law.

                           (iii) The Denver Arena Trust is not a business trust
                           within the meaning of section 101(9)(A)(v) of the
                           Bankruptcy Code. For federal, state and local income
                           and franchise tax purposes, by virtue of there being
                           a sole Trust Certificate holder, the Denver Arena
                           Trust constitutes a security arrangement, with the
                           assets being held by the trust, the owner of the
                           trust assets being the

                                     - 31 -

<PAGE>   38

                           sole Trust Certificate holder, and the Notes being
                           non-recourse debt of the sole Trust Certificate
                           holder. The Denver Arena Trust has not elected
                           treatment as an association under Treasury
                           Regulations Section 301.7701-3(a) for federal income
                           tax purposes. The Denver Arena Trust shall be
                           considered part of Ascent Arena Company for purposes
                           of the definition of Partnership Entity.

                           (iv) The Denver Arena Trust does not own, directly or
                           indirectly, any equity or similar interest in, or any
                           interest convertible or exchangeable or exercisable
                           for any equity or similar interest in, any
                           corporation, partnership, joint venture, limited
                           liability company or other business association or
                           entity.

                           (v) Ascent Arena Company has received certain
                           distributions of the Residual Interest and other
                           amounts pursuant to the Trust Agreement. Such
                           distributions have been made in compliance with the
                           Trust Agreement.

                  (e) Avalanche LLC.

                           (i) The membership interests in Avalanche LLC are as
                           follows:

                                            AEG                   1%
                                            HC                   99%

                           (ii) AEG and HC have good title to the Avalanche LLC
                           membership interests, free and clear of all Liens
                           other than those created by the Operating Agreement
                           of Avalanche LLC or this Agreement, and are the
                           record and beneficial owners of the Avalanche LLC
                           membership interests in the ratios stated in Section
                           5.2(e)(i) with the sole right to vote, dispose of,
                           and receive distributions and dividends in respect of
                           the Avalanche LLC membership interests.

                           (iii) The Avalanche LLC membership interests have
                           been duly authorized and validly issued, are fully
                           paid and nonassessable, were not issued in violation
                           of the terms of any Contract binding upon Avalanche
                           LLC, HC or AEG and were issued in compliance with all
                           applicable Organizational Documents and Applicable
                           Law.

                           (iv) Other than the Permitted Liens, there are: (A)
                           no existing Contracts or rights of any character with
                           respect to the purchase, redemption or acquisition of
                           any membership or other interest in Avalanche LLC,
                           existing or contingent, at any time, or upon the
                           happening of any stated event; (B) no outstanding
                           interests that are convertible into or exchangeable
                           for membership or other interests in Avalanche LLC;
                           and (C) no Contracts or

                                     - 32 -

<PAGE>   39

                           rights of any character to purchase or otherwise
                           acquire from AEG, HC or Avalanche LLC any such
                           convertible or exchangeable interests.

                  (f) Nuggets LP.

                           (i) The Nuggets LP partnership interests are as
                           follows:

                                          AEG           1% as a limited partner
                                          HC           98% as a limited partner
                                          LLC-I         1% as general partner

                           (ii) AEG, HC and LLC-I have good title to the Nuggets
                           LP partnership interests, free and clear of all Liens
                           other than those created by the Limited Partnership
                           Agreement of Nuggets LP or this Agreement. AEG, HC
                           and LLC-I are the record and beneficial owners of the
                           Nuggets LP partnership interests in the ratios stated
                           in Section 5.2(f)(i) with the sole right to vote,
                           dispose of, and receive distributions and dividends
                           in respect of the Nuggets LP partnership interests.

                           (iii) The Nuggets LP partnership interests have been
                           duly authorized and validly issued, are fully paid
                           and nonassessable, were not issued in violation of
                           the terms of any Contract binding upon Nuggets LP,
                           AEG, HC or LLC-I and were issued in compliance with
                           all applicable Organizational Documents and
                           Applicable Law.

                           (iv) Other than Permitted Liens, there are: (A) no
                           existing Contracts or rights of any character with
                           respect to the purchase, redemption or acquisition of
                           any partnership or other interest in Nuggets LP,
                           existing or contingent, at any time, or upon the
                           happening of any stated event; (B) no outstanding
                           interests that are convertible into or exchangeable
                           for partnership or other interests in Nuggets LP; and
                           (C) no Contracts or rights of any character to
                           purchase or otherwise acquire from AEG, Nuggets LP,
                           HC or LLC-I any such convertible or exchangeable
                           interests.

                  (g) Restrictions. Except as disclosed on Schedule 5.2(g),
there is no voting or other trust or agreement, option, warrant, preemptive
right, right of first offer, right of first refusal, escrow arrangement, proxy,
buy-sell agreement, power of attorney or other Contract, or any order, judgment
or decree, relating to any of the Equity Interests which, conditionally or
unconditionally, (i) grants to any Person the right to purchase, redeem or
otherwise acquire, or obligates any Person to sell or otherwise dispose of or
issue, or otherwise results or, whether upon the occurrence of any event or with
notice or lapse of time or both or otherwise, may result in any Person
acquiring, (A) any of such Equity Interests; (B) any of the proceeds of, or any
distributions paid or which are or may become payable in respect of, any of such
Equity Interests; or (C) any interest in such Equity Interests or any such
proceeds or distributions; (ii) restricts or, whether upon the occurrence of any

                                     - 33 -

<PAGE>   40

event or with notice or lapse of time or both or otherwise, is reasonably likely
to restrict the transfer or voting of, or the exercise of any rights or the
enjoyment of any benefits arising by reason of ownership of, any such Equity
Interests or any such proceeds or distributions; or (iii) creates or, whether
upon the occurrence of any event or with notice or lapse of time or both or
otherwise, is reasonably likely to create a Lien or purported Lien affecting
such Equity Interests, proceeds or distributions.

                  (h) LLC-I.

                           (i) HC is the sole member and manager of LLC-I, and
                           no other membership, management, equity or other
                           interests in LLC-I exist.

                           (ii) HC has good title to the LLC-I Membership
                           Interest, free and clear of all Liens other than
                           those created by the Operating Agreement of LLC-I or
                           this Agreement, and is the record and beneficial
                           owner of the LLC-I Membership Interest as stated in
                           Section 5.2(h)(i) with the sole right to vote,
                           dispose of, and receive distributions and dividends
                           in respect of the LLC-I Membership Interest.

                           (iii) The LLC-I Membership Interest has been duly
                           authorized and validly issued, is fully paid and
                           nonassessable, was not issued in violation of the
                           terms of any Contract binding upon LLC-I, HC or AEG
                           and was issued in compliance with all applicable
                           Organizational Documents and Applicable Law.

                           (iv) Other than the Permitted Liens, there are: (A)
                           no existing Contracts or rights of any character with
                           respect to the purchase, redemption or acquisition of
                           any membership or other interest in LLC-I, existing
                           or contingent, at any time, or upon the happening of
                           any stated event; (B) no outstanding interests that
                           are convertible into or exchangeable for membership
                           or other interests in LLC-I; and (C) no Contracts or
                           rights of any character to purchase or otherwise
                           acquire from AEG, HC or LLC-I any such convertible or
                           exchangeable interests.

                  (i) LLC-II.

                           (i) HC is the sole member and manager of LLC-II, and
                           no other membership, management, equity or other
                           interests in LLC-II exist.

                           (ii) HC has good title to the LLC-II Membership
                           Interest, free and clear of all Liens other than
                           those created by the Operating Agreement of LLC-II or
                           this Agreement, and is the record and beneficial
                           owner of the LLC-II Membership Interest as stated in
                           Section 5.2(i)(i) with the sole right to vote,

                                     - 34 -

<PAGE>   41

                           dispose of, and receive distributions and dividends
                           in respect of the LLC-II Membership Interest.

                           (iii) The LLC-II Membership Interest has been duly
                           authorized and validly issued, is fully paid and
                           nonassessable, was not issued in violation of the
                           terms of any Contract binding upon LLC-II, HC or AEG
                           and was issued in compliance with all applicable
                           Organizational Documents and Applicable Law.

                           (iv) Other than the Permitted Liens, there are: (A)
                           no existing Contracts or rights of any character with
                           respect to the purchase, redemption or acquisition of
                           any membership or other interest in LLC-II, existing
                           or contingent, at any time, or upon the happening of
                           any stated event; (B) no outstanding interests that
                           are convertible into or exchangeable for membership
                           or other interests in LLC-II; and (C) no Contracts or
                           rights of any character to purchase or otherwise
                           acquire from AEG, HC or LLC-II any such convertible
                           or exchangeable interests.

         5.3 Financial Statements; Undisclosed Liabilities; Notes;
Distributions.

                  (a) Seller has delivered to Purchasers the financial
statements described in Schedule 5.3(a) (collectively, the "Financial
Statements"). The Financial Statements in each case have been prepared based on
the books and records of the Purchased Entities in accordance with GAAP (except
in the case of internally prepared statements which may not include all
information and footnote disclosures normally included in financial statements
prepared in accordance with GAAP), consistently applied throughout the periods
covered thereby and fairly present in all material respects the financial
condition, results of operations and statements of cash flow of the Purchased
Entities as of the dates or periods indicated (subject in the case of interim
financial statements to normal year-end adjustments). Since the Liberty
Acquisition Date and the Balance Sheet Date, each of the Purchased Entities has
conducted its Business in all material respects in a manner consistent with past
practice without change of accounting policy or procedure including its
practices in connection with the treatment of revenue recognition,
capitalization policies, reserves and expenses.

                  (b) Undisclosed Liabilities. Except as set forth on Schedule
5.3(b), the Purchased Entities do not have any Liabilities except for
Liabilities (i) reflected on or reserved against in the Financial Statements of
such Persons, (ii) disclosed in this Agreement, or (iii) incurred in the
ordinary course of business consistent with past practice since the Balance
Sheet Date or otherwise entered into in accordance with this Agreement.

                  (c) Notes. As of the Effective Date and as of the Closing
Date, the outstanding principal amount of the Notes is and will be $136,170,000.

                  (d) Distributions. From the Liberty Acquisition Date through
the Effective Date, none of the Purchased Entities has made any intercompany
transfer, distribution, dividend or other

                                     - 35 -

<PAGE>   42

payment to Seller or any Affiliates thereof, including any payment of any
intercompany account (other than to any other Purchased Entity and other than
those that would be permitted to be made under Section 3.2(f)).

         5.4 Litigation. Except as specifically disclosed in Schedule 5.4, as of
the Effective Date, there are no actions, suits, hearings, arbitrations,
proceedings (public or private), claims, disputes, or governmental
investigations (collectively, "Proceedings") pending, or to the Knowledge of
Seller, threatened or contemplated, at law, in equity, in arbitration or before
any Governmental Authority, against the Pepsi Center or any of the Purchased
Entities or any of their respective Assets (excluding any Proceedings pending or
threatened against the NBA or the NBA Member Teams generally or against the NHL
or the NHL Member Teams generally), provided that Seller shall list all such
litigation of which it has Knowledge on Schedule 5.4 as to which an adverse
determination would result in a Material Adverse Effect.

         5.5 Employees.

                  (a) Sports Entities' Employees. Except as disclosed in
Schedule 5.12(b)(i), Schedule 5.5(a) lists, as of the Effective Date, the name,
date and place of employment, current annual salary and any other bonuses, and a
description of position of each current exempt employee, officer, director,
consultant or agent of any Sports Entity. Seller shall deliver to Purchasers an
updated version of Schedule 5.5(a) on the Closing Date.

                  (b) Ascent Arena Entities' Employees. Except as disclosed in
Schedule 5.13(e), Schedule 5.5(b) lists, as of the Effective Date, the name,
date and place of employment, current annual salary and any other bonuses, and a
description of position of each current exempt employee, officer, director,
consultant or agent of any Ascent Arena Entity. Seller shall deliver to
Purchasers an updated version of Schedule 5.5(b) on the Closing Date.

                  (c) No Resignations by Key Employees. Except as disclosed on
Schedule 5.5(c), as of the Effective Date, no Key Employee has delivered a
letter of resignation or has communicated in writing to any Sports Entity or any
Ascent Arena Entity an intention to deliver a letter of resignation in the
future.

                  (d) No Solicitation of Key Employees. Neither Seller nor any
of its Controlled Affiliates (excluding the Purchased Entities) has solicited,
directly or indirectly, for themselves or any other Person, any Key Employee.

         5.6 Employee Benefits.

                  (a) Purchased Entities' Employee Plans.

                           (i) Schedule 5.6(a)(i) sets forth a correct and
                           complete list of all material Purchased Entities'
                           Employee Plans. Seller and the Purchased Entities
                           have made available to Purchasers true and complete
                           copies of the Purchased

                                     - 36 -

<PAGE>   43

                           Entities' Employee Plans and all related summary
                           descriptions, including copies of any employee
                           handbooks listing or describing any Purchased
                           Entities' Employee Plans and summary descriptions of
                           any Purchased Entities' Employee Plan not otherwise
                           in writing.

                           (ii) Except for any failure or default that would not
                           have a Material Adverse Effect, each of the Purchased
                           Entities has fulfilled or has taken all actions
                           necessary to enable it to fulfill when due all of its
                           obligations under each Purchased Entities' Employee
                           Plan. To the Knowledge of Seller, there are no
                           negotiations, demands or proposals which are pending
                           or which have been made to Seller or the Purchased
                           Entities which concern material matters now covered,
                           or that would be covered, by any Purchased Entities'
                           Employee Plan that would have a Material Adverse
                           Effect.

                           (iii) Each of the Purchased Entities is in full
                           compliance with all Applicable Law applicable to each
                           Purchased Entities' Employee Plan except where
                           noncompliance would not have a Material Adverse
                           Effect. There has been no Employee Plan Event which
                           is continuing or in respect of which there is any
                           outstanding liability of any of the Purchased
                           Entities that, individually or in the aggregate,
                           would have a Material Adverse Effect, and no such
                           Employee Plan Event is reasonably expected to occur,
                           with respect to any Purchased Entities' Employee
                           Plan.

                           (iv) Except as disclosed in Schedule 5.6(a)(iv), the
                           execution and delivery of the Transaction Documents
                           and the conclusion of the transactions contemplated
                           by this Agreement will not cause the acceleration of
                           vesting in, or payment of, any benefits under any
                           Purchased Entities' Employee Plan.

                           (v) None of the Purchased Entities has any formal
                           plan or commitment, whether legally binding or not,
                           to create any additional Employee Plan or to modify
                           or change any existing Employee Plan that would
                           affect any current or former employee of any of the
                           Purchased Entities.

                           (vi) Schedule 5.6(a)(i) separately identifies any
                           Purchased Entities' Employee Plan that provides life
                           insurance or employee welfare plan benefits (within
                           the meaning of section 3(1) of ERISA), now or in the
                           future, to any former employee at any cost to any of
                           the Purchased Entities (except as required by
                           Applicable Law).

                  (b) Employee Plans of the Purchased Entities' ERISA
Affiliates. Except as would not have a Material Adverse Effect, there has been
no Employee Plan Event with respect to any Employee Plan of any Person that is
an ERISA Affiliate of the Purchased Entities or who was an ERISA Affiliate of
the Purchased Entities at any time since December 31, 1993, in respect of which
any liability could be expected to be incurred by any of the Purchased Entities.

                                     - 37 -

<PAGE>   44

                  (c) Purchased Entities' Qualified Plans.

                           (i) Each Purchased Entities' Qualified Plan has
                           received a favorable determination letter (or opinion
                           letter) from the IRS providing that each such plan
                           satisfies the requirements of section 401(a) of the
                           Code, and each trust under each such plan is exempt
                           from Taxes under section 501(a) of the Code. To the
                           Knowledge of Seller, no event has occurred that will,
                           or would reasonably be expected to, give rise to
                           disqualification or loss of tax-exempt status of any
                           such plan or trust under such sections.

                           (ii) Seller and the Purchased Entities have made
                           available to Purchasers for each Purchased Entities'
                           Qualified Plan copies of the following documents, if
                           applicable: (A) the Form 5500 filed for each of the
                           three most recent plan years, including all schedules
                           thereto and financial statements with attached
                           opinions of independent accountants; and (B) the most
                           recent determination letter from the IRS.

                  (d) Purchased Entities' ERISA Plans and Multiemployer Plans.
No Purchased Entities' Employee Plan is, and no Employee Plan maintained by any
of the Purchased Entities during the three-year period prior to the date hereof
was, an ERISA Plan. None of the Purchased Entities has during the three-year
period prior to the date hereof contributed to, or withdrawn in a complete or
partial withdrawal from, any Multiemployer Plan or incurred any contingent
liability under section 4204 of ERISA, nor is there any current potential
liability for withdrawal from a Multiemployer Plan, in either case that would
have a Material Adverse Effect, except as disclosed in Schedule 5.6(d).

         5.7 Labor and Employment Matters.

                  (a) Except as set forth in Schedule 5.7(a), (i) to the
Knowledge of Seller, none of the Purchased Entities is currently, or has been
within the past three years, engaged in any practice, act or course of conduct
which constitutes an unfair labor practice or discriminatory act or course of
conduct not in compliance with Applicable Law; (ii) as of the Effective Date,
there is no labor strike, dispute, slow down or stoppage pending or, to the
Knowledge of Seller, threatened against or directly affecting any of the
Purchased Entities; (iii) as of the Effective Date, none of the Purchased
Entities is a party to any pending grievance or arbitration proceeding arising
out of or under any collective bargaining agreement, and to the Knowledge of
Seller no claims therefor exist; (iv) no collective bargaining agreement exists
that is binding on any of the Purchased Entities; and (v) as of the Effective
Date, neither Seller, the Purchased Entities, nor any of their respective
Controlled Affiliates has received any written notice or has Knowledge of any
threatened labor or civil rights dispute, controversy or grievance or any other
unfair labor practice proceeding or breach of contract claim or action with
respect to claims of, or obligations to, any employee or group of employees of
any Purchased Entity, and the same will be true as of the Closing Date, except
as would not have a Material Adverse Effect.

                                     - 38 -

<PAGE>   45

                  (b) To the Knowledge of Seller, as of the Effective Date,
there are no organizational efforts presently being made involving any
nonorganized employees of any of the Purchased Entities.

         5.8 Intellectual Property.

                  (a) To the Knowledge of Seller, Schedule 5.8(a) sets forth a
complete and correct list of all material Intellectual Property.

                  (b) Immediately after the Closing and except as a result of
any actions by Purchasers thereafter, the Purchased Entities' ownership and/or
right to Intellectual Property (i) to the Knowledge of Seller will be the same
as the Purchased Entities' ownership and/or right immediately before the
Closing, (ii) will be free from any Liens, and (iii) will be free from any
requirement of any royalty payments, license fees, charges or other payments,
conditions or restrictions, except for Permitted Liens and otherwise as noted in
the Contracts identified in Schedule 5.8(a).

                  (c) Schedule 5.8(a) sets forth a complete and correct list of
all material agreements (i) pursuant to which the Purchased Entities have
licensed Intellectual Property, or have permitted any Person to use Intellectual
Property, and (ii) pursuant to which the Purchased Entities have been granted a
license to Intellectual Property. All such agreements (A) are in full force and
effect in accordance with their terms and no default exists thereunder by the
Purchased Entities, or to the Knowledge of Seller, by any other party thereto,
(B) are free and clear of all Liens, and (C) do not contain any
change-in-control provisions or other terms or conditions that will become
applicable or inapplicable as a result of the Closing, except as may be provided
in Contracts listed on Schedule 5.8(a).

                  (d) Except as set forth in Schedule 5.8(a), no claim or demand
has been made, nor is there any proceeding that is pending, or to the Knowledge
of Seller, threatened, that (i) challenges the Purchased Entities' rights in
Intellectual Property, (ii) asserts that the Purchased Entities are infringing
upon the intellectual property rights of another, or (iii) claims that any
default exists under any Contract listed in Schedule 5.8(a), in each case that
would have a Material Adverse Effect. None of the Intellectual Property is
subject to any outstanding order, ruling, decree, judgment or stipulation by or
with any court, arbitrator, or administrative agency, or has been the subject of
any litigation within the five years prior to the Effective Date, whether or not
resolved in favor of the Purchased Entities.

         5.9 Environmental Compliance.

                  (a) To the Knowledge of Seller, each Purchased Entity has
obtained all approvals, authorizations, certificates, consents, licenses,
orders, and permits or other similar authorizations (collectively,
"Authorizations") of all Governmental Authorities, or from any other Person,
that are required under any Environmental Law, and all such Authorizations are
currently in effect, except where the failure to have any Authorization would
not have a Material Adverse Effect.

                                     - 39 -

<PAGE>   46

                  (b) To the Knowledge of Seller, each Purchased Entity has been
and currently is in compliance in all material respects with all terms and
conditions of all Authorizations of all Governmental Authorities (and all other
Persons) required under all Environmental Laws, including the VCUP, and is also
in compliance in all material respects with all other limitations, restrictions,
conditions, standards, requirements, schedules and timetables required or
imposed under all Environmental Laws, including the VCUP, in each case except
where the failure to be in compliance would not have a Material Adverse Effect.

                  (c) Seller has not received notice of any claims which are
pending and, to the Knowledge of Seller, there are not any claims which are
threatened, relating to or alleging noncompliance or liability under any
Environmental Law with respect to any of the Purchased Entities or their
respective Assets (including the Arena Land and the Development Property),
except where such noncompliance or liability would not have a Material Adverse
Effect.

                  (d) True and complete copies of all permits, investigations,
studies, documents, reports, audits, tests, analytical data and correspondence
related to the environmental condition of the Assets of the Purchased Entities
which are in the possession or control of Seller or an Affiliate of Seller or
its respective consultants and agents have been made available to Purchasers.

         5.10 Insurance.

                  (a) Sports Entities' Insurance Policies. Schedule 5.10(a) sets
forth a complete and correct list of all insurance policies of any kind or
nature whatsoever currently in force with respect to the Businesses of the
Sports Entities (the "Sports Entities' Insurance Policies"), including all
"occurrence based" liability policies regardless of the periods to which they
relate. Seller has delivered or made available to Purchasers complete and
correct copies of all Sports Entities' Insurance Policies, except for those
which are in the control of a Person other than Seller or its respective
consultants or agents. The Sports Entities' Insurance Policies as currently in
effect constitute insurance against risks of a character and in such amounts as
are reasonable and customary to be insured against by similarly situated
companies in the same or similar businesses, all of such insurance policies are
in full force and effect and are valid, outstanding and enforceable, and all
premiums due thereon have been paid currently.

                  (b) Ascent Arena Entities' Insurance Policies. The Ascent
Arena Entities have the benefit, pursuant to policies carried by such entities
or by the Construction Contractor for their benefit, of policies of fire and
casualty, general liability and excess or umbrella liability, builder's risk,
business automotive, workers' compensation, employers' liability, business
interruption and other forms of insurance in such amounts, with such deductibles
and against such risks and losses as are reasonable in relation to the operation
of the businesses of such entities, including construction of the Pepsi Center,
and which comply in all material respects with the insurance requirements set
forth in the Operating and Management Agreement. All such policies are in full
force and effect, all premiums due and payable thereon as of the date hereof
have been paid, and no notice of cancellation or termination has been received
with respect to any such policy which policy has not been replaced prior to the
date of such cancellation. The activities of the Ascent Arena Entities have

                                     - 40 -

<PAGE>   47

been conducted in a manner so as to conform in all material respects to all
applicable provisions of such insurance policies. Except as set forth on
Schedule 5.10(b), the coverage of such policies will not cease upon Closing, and
to the Knowledge of Seller the Ascent Arena Entities will continue to be
entitled to the benefits of such policies assuming compliance post-Closing by
Purchasers with the terms and conditions of such policies.

         5.11 Tax Matters.

                  (a) Purchased Entities and Predecessor Entities.

                           (i) All Returns required to be filed by or on behalf
                           of any Purchased Entity, and all Returns required to
                           be filed by or on behalf of any Predecessor Entities
                           (which, together with the Purchased Entities, are
                           each referred to herein individually as a "P&P
                           Entity" and collectively as the "P&P Entities"), have
                           been duly filed on a timely basis and all Returns
                           filed by or on behalf of each P&P Entity (including
                           all attached statements and schedules) are true,
                           complete and correct in all respects, except for such
                           failures to file and failures to be true, complete
                           and correct as would not, individually or in the
                           aggregate, have a Material Adverse Effect. No claim
                           has been made or threatened in writing by any
                           jurisdiction where a P&P Entity does not file Returns
                           that the P&P Entity is or may be subject to Taxes in
                           that jurisdiction. All Taxes shown to be payable on
                           such Returns or on subsequent assessments with
                           respect thereto have been paid in full on a timely
                           basis. No other Taxes are payable by any P&P Entity
                           with respect to items or periods covered by such
                           Returns (whether or not shown on or reportable on
                           such Returns), except for such Taxes as would not,
                           individually or in the aggregate, have a Material
                           Adverse Effect.

                           (ii) Each P&P Entity has withheld and paid over all
                           Taxes required to have been withheld and paid over
                           (including any estimated Taxes), and has complied
                           with all information reporting and backup withholding
                           requirements, including maintenance of required
                           records with respect thereto, in connection with
                           amounts paid or owing to any employee, creditor,
                           independent contractor or other third party, except
                           for such failures to withhold or pay over and such
                           failures to comply as would not, individually or in
                           the aggregate, have a Material Adverse Effect.

                           (iii) There are no Liens on any of the Assets of a
                           P&P Entity with respect to Taxes, other than Liens
                           for Taxes not yet due and payable or for Taxes that
                           are being contested in good faith through appropriate
                           proceedings and for which appropriate reserves have
                           been established, except for such Liens as would not,
                           individually or in the aggregate, have a Material
                           Adverse Effect.

                                     - 41 -

<PAGE>   48

                           (iv) Prior to Closing, Seller shall make available to
                           Purchasers, during normal business hours, true and
                           complete copies of all Returns of each P&P Entity for
                           all periods beginning after December 31, 1995, all
                           tax audit reports, work papers, statements of
                           deficiencies, closing or other agreements received by
                           a P&P Entity or on its behalf relating to Taxes of
                           any P&P Entity for any period beginning after
                           December 31, 1995 (and with respect to periods
                           beginning on or before December 31, 1995, any
                           Returns, tax audit reports, work papers, statements
                           of deficiencies, closing or other agreements received
                           by or relating to Taxes of any P&P Entity that are in
                           Seller's possession), and Purchasers shall be
                           permitted to inspect and make copies of such Returns,
                           audit reports, work papers, statements and
                           agreements.

                           (v) Each of the Purchased Entities, other than the
                           Denver Arena Trust, LLC-I and LLC-II, has been
                           properly classified as a "partnership" for federal
                           income tax purposes, at all times since its
                           formation. (Each Purchased Entity that is classified
                           as a partnership for federal income tax purposes as
                           of the Closing Date is referred to herein as a
                           "Partnership Entity.") Each of LLC-I and LLC-II has
                           been properly treated as a "disregarded entity" for
                           federal income tax purposes at all times since
                           formation (that is, for federal income tax purposes,
                           LLC-I and LLC-II each is and has been at all times
                           treated as a division of HC and not as a separate
                           entity). The Denver Arena Trust has been properly
                           treated as a "disregarded entity" for federal income
                           tax purposes at all times since its formation (that
                           is, for federal income tax purposes, The Denver Arena
                           Trust is and has been at all times treated as a
                           division of Ascent Arena Company and not as a
                           separate entity). Each Predecessor Entity was at all
                           times prior to its merger or liquidation into a
                           Purchased Entity properly classified as a corporation
                           for federal income tax purposes (each such
                           Predecessor Entity that was at any time classified as
                           a corporation for federal income tax purposes being
                           referred to herein as a "Corporate Entity").

                           (vi) (A) Except as disclosed on Schedule
                           5.11(a)(vi)(A), there are no audits, inquiries,
                           investigations or examinations relating to any
                           Returns referred to in Section 5.11(a)(i) pending or,
                           to the Knowledge of Seller, threatened in writing.

                                    (B) Except as disclosed on Schedule
                           5.11(a)(vi)(B), no deficiencies exist or have been
                           asserted in writing with respect to Taxes of any P&P
                           Entity, and no written notice has been received by a
                           P&P Entity (or by any partner that is a Controlled
                           Affiliate of Seller of any P&P Entity that is a
                           Partnership Entity) with respect to the failure to
                           file any Return or pay any Taxes.

                                     - 42 -

<PAGE>   49

                                    (C) No P&P Entity is a party to any action
                           or proceeding for assessment or collection of Taxes,
                           nor has such action or proceeding been asserted or
                           threatened in writing against it or any of its
                           assets.

                                    (D) Except as set forth on Schedule
                           5.11(a)(vi)(D), no Corporate Entity has ever been
                           included in an affiliated group of corporations,
                           within the meaning of section 1504 of the Code, and
                           none has ever been a member of any combined or
                           unitary group, in each case other than a group the
                           common parent of which was AEG.

                                    (E) For all periods beginning on or after
                           July 1, 1997 until the liquidation or merger of a
                           Corporate Entity into a Purchased Entity, each
                           Corporate Entity joined or will join in the filing of
                           consolidated federal income tax returns as part of
                           the consolidated group of which AEG is the parent
                           company and joined or will join in the filing of
                           consolidated, combined or unitary state income tax
                           returns as part of a consolidated, combined or
                           unitary group of which AEG is the parent company for
                           the states listed on Schedule 5.11(a)(vi)(E).

                                    (F) Except as disclosed on Schedule
                           5.11(a)(vi)(F), no extension of time to file any
                           Return (which has not been filed) has been requested
                           by or granted by a P&P Entity. No waiver or extension
                           of any statute of limitations is in effect with
                           respect to Taxes or Returns of a P&P Entity.

                                    (G) Except as disclosed on Schedule
                           5.11(a)(vi)(G), no P&P Entity is or was a party to
                           any tax sharing agreement, tax indemnity agreement,
                           tax allocation agreement, or similar arrangement with
                           any Person.

                                    (H) The amount of each P&P Entity's
                           liability for unpaid Taxes for all periods ending on
                           or before the Balance Sheet Date, determined on a
                           GAAP basis (taking into account the Return
                           Preparation Standard) does not exceed the amount of
                           the current liability accruals for Taxes (excluding
                           reserves for deferred Taxes) as of that date, and the
                           amount of a P&P Entity's liability for unpaid Taxes
                           for all periods ending on or before the Closing Date
                           determined on a GAAP basis (taking into account the
                           Return Preparation Standard) will not exceed the
                           amount of the current liability accruals for Taxes
                           (excluding reserves for deferred Taxes) as such
                           accruals will be reflected on the balance sheet of
                           the Purchased Entities as of the Closing Date, except
                           to the extent any excess of such Taxes over the
                           relevant current liability accrual amount would not
                           have a Material Adverse Effect.

                           (vii) Except as disclosed on Schedule 5.11(a) (vii):

                                     - 43 -

<PAGE>   50

                                    (A) No P&P Entity is required to treat any
                           Asset as owned by another Person for federal income
                           tax purposes or as tax-exempt bond financed property
                           or tax-exempt use property within the meaning of
                           section 168 of the Code. No P&P Entity has made or is
                           bound by any election under section 197(f)(9)(B) of
                           the Code.

                                    (B) No P&P Entity has disposed of any
                           property that is currently being accounted for under
                           the installment method.

                                    (C) Within the last five years, no P&P
                           Entity has agreed to make, and has not been required
                           to make, any adjustment under section 481 of the Code
                           by reason of a change in accounting method or
                           otherwise.

                                    (D) No P&P Entity is a member of any joint
                           venture or partnership or a party to any other
                           arrangement or contract that is treated as a
                           partnership for federal income tax purposes, except
                           another Purchased Entity and Mountain Mobile.

                                    (E) No P&P Entity has made elections
                           comparable to those described in this section under
                           any state, local or foreign tax law or is required to
                           apply any rules comparable to those described in this
                           section under any state, local or foreign tax laws.

                                    (F) The transactions contemplated hereby are
                           not subject to the tax withholding provisions of
                           section 3406 of the Code, or of Subchapter A of
                           Chapter 3 of the Code, or of any other provision of
                           Applicable Law.

                                    (G) No Corporate Entity has made any
                           election under section 338 of the Code, and no action
                           has been taken that would result in any Income Tax
                           liability with respect to any such Corporate Entity
                           as a result of a deemed election within the meaning
                           of section 338 of the Code.

         5.12 Sports Entities.

                  (a) Absence of Certain Changes. Except as set forth in
Schedule 5.12(a), since the Balance Sheet Date there has not been any event,
occurrence, or change in the Business of any of the Sports Entities (including
any uninsured damage, destruction or other casualty loss) or change affecting
such Business that would result in a Material Adverse Effect.

                  (b) Sports Entities' Contracts.

                           (i) As of the Effective Date, Schedule 5.12(b)(i)
                           contains an accurate and complete list of all Sports
                           Entities' Contracts, including all amendments thereto
                           and modifications thereof (whether written or oral).
                           Seller shall

                                     - 44 -

<PAGE>   51

                           deliver to Purchasers an updated version of Schedule
                           5.12(b)(i) on the Closing Date.

                           (ii) Seller has made available true and correct
                           copies of the Sports Entities' Contracts to
                           Purchasers. As of the Effective Date, each of the
                           Sports Entities' Contracts is in full force and
                           effect and is binding upon and enforceable in
                           accordance with its terms against the Sports Entities
                           and, to the Knowledge of Seller, each other party
                           thereto, subject to (i) bankruptcy, insolvency,
                           reorganization, fraudulent conveyance or transfer,
                           moratorium or similar laws affecting creditors'
                           rights generally and (ii) general principles of
                           equity (whether or not such enforcement is considered
                           in a Proceeding at law or in equity). As of the
                           Closing Date, each of the Sports Entities' Contracts
                           will be in full force and effect and will be binding
                           upon and enforceable in accordance with its terms
                           against the Sports Entities and, to the Knowledge of
                           Seller, each other party thereto, subject to (i)
                           bankruptcy, insolvency, reorganization, fraudulent
                           conveyance or transfer, moratorium or similar laws
                           affecting creditors' rights generally and (ii)
                           general principles of equity (whether or not such
                           enforcement is considered in a Proceeding at law or
                           in equity), except for any failure to be in full
                           force and effect or to be so binding and enforceable
                           as would not have a Material Adverse Effect.

                           (iii) Except as disclosed in Schedule 5.12(b)(i) with
                           respect to the Local Television License Agreement (as
                           described on such Schedule), there has not occurred
                           any default, event of default or, to the Knowledge of
                           Seller, any circumstance that with notice or the
                           passage of time, or both, would constitute a default
                           or event of default of the Sports Entities or, to the
                           Knowledge of Seller, of any other party to a Sports
                           Entities' Contract, except in either case for any
                           defaults or events of default that would not
                           constitute a Material Adverse Effect.

                           (iv) Except as set forth in the Sports Entities'
                           Contracts themselves, no Sports Entity has assigned
                           any of its rights pursuant to any Sports Entities'
                           Contract to any Person, and each applicable Sports
                           Entity holds its rights pursuant to the Sports
                           Entities' Contracts free and clear of any Lien.

                  (c) Arena Land.

                           (i) As of the Effective Date and prior to the City
                           Transfer,

                                    (A) Nuggets LP has good and marketable title
                           to the Arena Land, subject to the Permitted Liens.
                           Except as provided in the Arena Agreement, there are
                           no outstanding rights of first refusal, rights of
                           reverter or options relating to the Arena Land or any
                           interest therein, subject to the Permitted Liens. To
                           Seller's Knowledge, except as disclosed on Exhibit
                           "B," there are

                                     - 45 -

<PAGE>   52

                           no unrecorded or undisclosed documents or other
                           matters which affect title to the Arena Land. No
                           Person holding a security interest in the Arena Land
                           or any part thereof has the right to consent or deny
                           consent to the transactions contemplated by this
                           Agreement, other than the City Consent.

                                    (B) The current zoning of the Arena Land is
                           PUD 440, which permits the current improvements
                           thereon (including the Pepsi Center) and Seller's
                           currently contemplated uses of the Arena Land, and
                           there is no pending or, to the Knowledge of Seller,
                           contemplated rezoning.

                                    (C) To the Knowledge of Seller, there is no
                           violation of any Applicable Law or the VCUP relating
                           to the Arena Land, except any such violation as would
                           not result in a Material Adverse Effect. Nuggets LP
                           has not leased or subleased any parcel or any portion
                           of the Arena Land (other than pursuant to the Ground
                           Lease) to any other Person.

                                    (D) There are no condemnation proceedings or
                           eminent domain proceedings of any kind pending or, to
                           the Knowledge of Seller, threatened against the Arena
                           Land.

                           (ii) As of the Effective Date and as of the Closing
                           Date (whether before or after the City Transfer,
                           except as otherwise specifically provided),

                                    (A) No improvements on the Arena Land and
                           none of Seller's currently contemplated uses violate,
                           or will violate, in any material respect any
                           applicable deed restrictions or other applicable
                           covenants, restrictions, agreements, existing site
                           plan approvals, zoning or subdivision regulations or
                           urban redevelopment plans as modified by any duly
                           issued variances, except any such violation as would
                           not result in a Material Adverse Effect. No permits,
                           licenses or certificates pertaining to the ownership
                           or operation of all improvements on the Arena Land,
                           other than those which are transferable with the
                           Arena Land, are required by any Governmental
                           Authority having jurisdiction over the Arena Land.

                                    (B) Except as disclosed on Schedule
                           5.12(c)(vi), to the Knowledge of Seller, all
                           improvements on the Arena Land are wholly within the
                           lot limits of the Arena Land and do not encroach on
                           any adjoining premises, and there are no
                           encroachments on the Arena Land by any improvements
                           located on any adjoining premises, in each case,
                           other than the Permitted Liens.

                                    (C) Ascent Arena Company is the lessee of
                           the Arena Land pursuant to the Ground Lease. Neither
                           Ascent Arena Company, as lessee, nor, prior to the
                           City Transfer, Nuggets LP, as lessor, or, after the
                           City Transfer, to the Knowledge of Seller, the City,
                           as lessor, is in default under

                                     - 46 -

<PAGE>   53

                           the Ground Lease, and there has not occurred any
                           event or circumstance that, with notice or the
                           passage of time, or both, would constitute a default
                           under the Ground Lease.

                                    (D) The Purchased Entities, as applicable,
                           have obtained and currently hold all approvals,
                           authorizations, certificates, consents, licenses,
                           orders, and permits or other similar authorizations
                           of all Governmental Authorities that are required to
                           their stage of construction as of the Effective Date
                           under any Applicable Law to permit development of the
                           Pepsi Center on the Arena Land.

                                    (E) All easements required or necessary as
                           of the Effective Date for Seller's intended use and
                           development of the Arena Land and the Pepsi Center
                           have been obtained.

                                    (F) Subject to the Permitted Liens, Ascent
                           Arena Company is (A) the owner of the improvements on
                           the Arena Land, (B) the owner of the overhead
                           pedestrian bridge (the "Overhead Bridge") connecting
                           (and over a portion of) the Arena Land and the Elitch
                           Gardens Amusement Park (the "Elitch Property"), (C)
                           the licensee (either individually or jointly with
                           Nuggets LP) of a City permit regarding the ownership,
                           operation and maintenance of that portion of the
                           Overhead Bridge over City property and right-of-way,
                           (D) the grantee (either individually or jointly with
                           Nuggets LP) of easements on the Elitch Property
                           regarding the use of the Elitch Property for the
                           Overhead Bridge and for parking for the Pepsi Center
                           (the "Elitch Easements"), and (E) the tenant of
                           property adjacent to the Arena Land described in
                           Exhibit "A-3" (the "Leased Property") pursuant to
                           Lease Agreement dated March 28, 2000 between Ascent
                           Arena Company and the Board of Directors of the
                           Auraria Higher Education Center.

                  (d) Tangible Assets. The Sports Entities own and have good
title to or, in the case of leased properties or properties held under license,
a good and valid leasehold or license interest in, all of their material Assets
reflected in the Financial Statements, Nuggets Balance Sheet and the Avalanche
Balance Sheet, except those Assets disposed of in the ordinary course of
business after the date thereof, free and clear of all Liens.

                  (e) Affiliate Contracts. As of the Effective Date, Schedule
5.12(e) identifies all Sports Entities' Contracts between any Sports Entity, on
the one hand, and any Affiliate of such Sports Entity, on the other hand. Seller
shall deliver to Purchasers an updated version of Schedule 5.12(e) on the
Closing Date.

                                     - 47 -

<PAGE>   54

                  (f) Permits; Required Consents.

                           (i) Schedule 5.12(f)(i) sets forth all material
                           certificates, licenses, orders and permits or other
                           similar authorizations of all Governmental
                           Authorities (and all other Persons) necessary for the
                           operation of the Sports Entities and their respective
                           Businesses in substantially the same manner as
                           currently operated (the "Sports Entities' Permits").

                           (ii) Schedule 5.12(f)(ii) lists (A) each governmental
                           or other registration, filing, application, notice,
                           transfer, consent, approval, order, qualification and
                           waiver (each, a "Sports Entities' Required
                           Governmental Approval") required under Applicable Law
                           to be obtained by the Sports Entities by virtue of
                           the execution and delivery of this Agreement or the
                           consummation of the transactions contemplated hereby
                           to avoid the loss of any material Sports Entities'
                           Permit, and (B) each Sports Entities' Contract with
                           respect to which the consent of the other party or
                           parties thereto that must be obtained by the
                           applicable Sports Entity by virtue of the execution
                           and delivery of this Agreement or the consummation of
                           the transactions contemplated hereby (each, a "Sports
                           Entities' Required Contractual Consent" and
                           collectively with the Sports Entities' Required
                           Governmental Approvals, the "Sports Entities'
                           Required Consents"). Except as set forth in Schedule
                           5.12(f)(i), each Sports Entities' Permit is valid and
                           in full force and effect in all material respects
                           and, assuming the related Sports Entities' Required
                           Consents have been obtained prior to the Closing
                           Date, will be in full force and effect immediately
                           after the Closing, except where any such failure to
                           be in full force and effect would not result in a
                           Material Adverse Effect.

                  (g) Compliance with Laws. Except as set forth in Schedule
5.12(g), the Sports Entities are operating their respective Businesses in
compliance in all material respects with all Applicable Laws, or any material
order, writ, injunction or decree of any Governmental Authority, except where
any such noncompliance would not result in a Material Adverse Effect.

         5.13 Ascent Arena Entities.

                  (a) Denver Arena Trust. Ascent Arena Company has received
certain distributions of the Residual Interest or other amounts pursuant to the
Trust Agreement. Such distributions have been made in compliance with the Trust
Agreement.

                  (b) Licenses. To the Knowledge of Seller, Ascent Arena
Entities hold all licenses, franchises, authorizations, permits, and approvals
(collectively, the "Licenses") which are necessary for or material to
construction, ownership, use, operation or maintenance of the Pepsi Center. No
License has been revoked or suspended, and to the Knowledge of Seller, no such
revocation or suspension is pending or threatened. The Licenses will be in full
force and effect immediately after the Closing.

                                     - 48 -

<PAGE>   55

                  (c) Title to Assets. The Ascent Arena Entities hold good title
to all of their respective material Assets reflected in the Financial
Statements, except those Assets disposed of in the ordinary course of business
after the date thereof, free and clear of all Liens.

                  (d) Advance Booking Contracts. As of the Effective Date,
Schedule 5.13(d) sets forth all material advance bookings for events or
entertainment at the Pepsi Center (collectively, the "Advance Booking
Contracts"). Seller shall deliver to Purchasers an updated version of Schedule
5.13(d) on the Closing Date.

                  (e) Ascent Arena Entity Contracts. Except for the Contracts
disclosed in Schedule 5.13(d) and the Arena Contracts, Schedule 5.13(e)
contains, as of the Effective Date, an accurate and complete list of all
material Contracts to which any Ascent Arena Entity is a party or by which it is
bound. Seller shall deliver to Purchasers an updated version of Schedule 5.13(e)
on the Closing Date.

         5.14 Pepsi Center.

                  (a) Construction Issues.

                           (i) Seller has made available to Purchasers true and
                           complete copies of the Plans and Specifications and
                           all material written reports regarding construction
                           of the Pepsi Center, including those reports
                           delivered to Denver Arena Trust or the Indenture
                           Trustee by its construction consultant (the
                           "Construction Reports").

                           (ii) Interim or final lien waivers have been obtained
                           from the Architect, Construction Contractor and all
                           subcontractors, materialmen and suppliers performing
                           any work or supplying any materials with respect to
                           the Pepsi Center, pursuant to which each such Person
                           has waived all lien rights and claims with respect to
                           all interim payments made to such Person. Neither
                           Seller nor any of its Affiliates have received a
                           notice of intent to file a lien against the Arena
                           Land or the Pepsi Center, and no mechanics' lien or
                           claim of lien has been asserted or threatened against
                           the Arena Land or the Pepsi Center that has not been
                           resolved as of the Effective Date.

                           (iii) Other than the Permitted Liens, all portions of
                           the Pepsi Center are located on the Arena Land,
                           without encroachment onto any other real property.
                           All portions of the Pepsi Center constructed as of
                           the Effective Date and as of the Closing have been
                           constructed substantially in accordance with the
                           Plans and Specifications.

                           (iv) Utility service lines and connections necessary
                           to provide water, sewer, gas, electricity and
                           telephone service to the Pepsi Center at levels

                                     - 49 -

<PAGE>   56

                           sufficient to support its operation, use and
                           maintenance in accordance with the Arena Agreement
                           have been installed and are available for use.

                           (v) The Plans and Specifications were approved by all
                           Governmental Authorities, design review committees
                           and similar entities whose approval of construction
                           or use of the Pepsi Center is required prior to
                           construction under any Applicable Law, covenant,
                           condition, restriction or reservation. All such
                           approvals remain effective, and, to the Knowledge of
                           Seller, there exist no violations of such approvals
                           or conditions of such approvals which have not been
                           satisfied.

                  (b) Arena Contracts.

                           (i) Seller has made available to Purchasers true and
                           complete copies of the Arena Contracts. Each of the
                           Arena Contracts is in full force and effect and is
                           binding upon and enforceable in accordance with its
                           terms against the Ascent Arena Entities and, to the
                           Knowledge of Seller, each other party thereto,
                           subject to (i) bankruptcy, insolvency,
                           reorganization, fraudulent conveyance or transfer,
                           moratorium or similar laws affecting creditors'
                           rights generally and (ii) general principles of
                           equity (whether or not such enforcement is considered
                           in a Proceeding at law or in equity), except for any
                           failure to be in full force and effect or to be so
                           binding and enforceable as would not have a Material
                           Adverse Effect.

                           (ii) Except as disclosed on Schedule 5.14(b)(ii),
                           there has not occurred any default, event of default
                           or, to the Knowledge of Seller, any circumstance that
                           with notice or the passage of time, or both, would
                           constitute a default or event of default of any
                           Ascent Arena Entities under any Arena Contract or, to
                           the Knowledge of Seller, any default or event of
                           default of any other party to an Arena Contract,
                           except in either case for any defaults or events of
                           default that would not constitute a Material Adverse
                           Effect.

                           (iii) Except as set forth in the Arena Contracts
                           themselves, no Ascent Arena Entity has assigned any
                           of its rights pursuant to any Arena Contract to any
                           Person, other than pursuant to the City Lien and the
                           Trustee's Lien, and each Ascent Arena Entity holds
                           its rights pursuant to the Arena Contracts, free and
                           clear of any Lien.

                           (iv) Except as set forth in Schedule 5.14(b)(iv),
                           Ascent Arena Company has not delegated any of its
                           duties pursuant to the Sale and Servicing Agreement,
                           other than pursuant to the subservicing portions of
                           the Operating and Management Agreement.

                                     - 50 -

<PAGE>   57

                           (v) Seller has made available to Purchasers true and
                           complete copies of all Servicer's Remittance Reports
                           prepared and delivered to the Indenture Trustee
                           pursuant to the Sale and Servicing Agreement.

                           (vi) Fees payable to Ascent Arena Company pursuant to
                           the Sale and Servicing Agreement have not been
                           prepaid, and Ascent Arena Company is entitled to
                           receipt of such fees as provided in the Sale and
                           Servicing Agreement.

                           (vii) Other than as set forth in the Arena Contracts,
                           no prepayments have been made under any Arena
                           Contract.

                           (viii) A true and correct copy of the current annual
                           operating budget for the Pepsi Center prepared
                           pursuant to the Operating and Management Agreement
                           was delivered or made available to Purchasers
                           pursuant to this Agreement. Such operating budget
                           constitutes a reasonable estimate of the annual
                           operating expenses for operation of the Pepsi Center
                           based upon reasonable assumptions in light of current
                           circumstances regarding the operation of the Pepsi
                           Center under Seller's indirect ownership.

                           (ix) Except as disclosed on Schedule 5.14(b)(ix),
                           Seller has no Knowledge of any event or circumstance
                           that would limit or impair in any material respect
                           DURA's obligation or ability to honor its
                           reimbursement or payment obligations pursuant to the
                           Redevelopment Agreement.

                  (c) Accounts. The balances of the Accounts are as set forth on
Schedule 5.14(c) as of the date indicated on such Schedule. All required
deposits into and transfers among the Accounts have been made in compliance with
the Sale and Servicing Agreement.

         5.15 Mountain Mobile.

                  (a) No Defaults. To the Knowledge of Seller, Mountain Mobile
is not in default of any obligation to any Person pursuant to any Contract,
which default would have a Material Adverse Effect.

                  (b) No Additional Capital Contributions or Loans. By virtue of
becoming a member of Mountain Mobile, KMS Sports will not have any obligation to
contribute capital or make loans to Mountain Mobile except to the extent
provided in or permitted by the Operating Agreement of Mountain Mobile delivered
to Purchasers pursuant to this Agreement.

                  (c) Compliance with Laws. Except as set forth in Schedule
5.15(c), to the Knowledge of Seller, Nuggets LP, and LLC-I, Mountain Mobile has
operated its Business in compliance in all material respects with all Applicable
Laws and any applicable material order, writ, injunction or decree of any
Governmental Authority.

                                     - 51 -

<PAGE>   58

         5.16 Development Property.

                  (a) LLC-II has good and marketable title to the Development
Property, subject to the Permitted Liens. There are no outstanding rights of
first refusal, rights of reverter or options relating to the Development
Property or any interest therein other than the Permitted Liens. To the
Knowledge of Seller, there are no unrecorded or undisclosed documents or other
matters which affect title to the Development Property (other than Permitted
Liens). LLC-II has not leased or subleased any parcel or any portion of any
parcel of the Development Property to any other Person other than pursuant to
the Conoco Lease.

                  (b) To the Knowledge of Seller, LLC-II has not committed any
violation of any Applicable Law (including any building, planning or Applicable
Law related to zoning and all approvals, authorizations, certificates, consents,
licenses, orders, and permits or other similar authorizations of all
Governmental Authorities (and all other Persons) required under the VCUP and any
other Environmental Law) relating to any of the Development Property, except any
such violation as would not result in a Material Adverse Effect.

                  (c) There are no condemnation proceedings or eminent domain
proceedings of any kind pending or, to the Knowledge of Seller, threatened
against any of the Development Property.

                  (d) Other than the Permitted Liens and other than pursuant to
the Conoco Lease, the Development Property is vacant, unimproved land having a
zoning classification of PUD 440 pursuant to Applicable Law related to zoning,
and there is no pending or, to the Knowledge of Seller, contemplated rezoning.

                  (e) Other than Permitted Liens, to the Knowledge of Seller
there are no encroachments onto the Development Property by any improvements
located on any adjoining premises, including the Arena Land.

         5.17 Advisory Fees. No Seller has retained or authorized any investment
banker, broker, finder or other intermediary or advisor to act on behalf of
Seller or any of its respective Affiliates in connection with the Transactions
contemplated by this Agreement, except for the Financial Advisors as financial
advisors to Seller. Seller shall be solely responsible for all costs and
expenses due the Financial Advisors.

         5.18 Operations Since Effective Date. From the Effective Date through
the Closing Date, AEG has performed and complied in all material respects with
all of the terms of Article III of this Agreement.

         5.19 No Other Representations or Warranties. Purchasers acknowledge
that Seller has not made and does not make, and Purchasers have not relied on,
any representation or warranty, whether express or implied, of any kind or
character except as expressly set forth in this Article V.

                                     - 52 -

<PAGE>   59

                                   ARTICLE VI.

                  REPRESENTATIONS AND WARRANTIES OF PURCHASERS

         As an inducement to Seller to enter into this Agreement, Purchasers, as
applicable, each represent, warrant and covenant to Seller, that the following
matters are true and correct as of the Effective Date and as of the Closing Date
unless limited to a specific date.

         6.1 Existence and Power. Each Purchaser is a limited liability company
duly formed, validly existing and in good standing under the laws of the State
of Missouri, and will be duly registered in and authorized by the State of
Colorado to transact business in the State of Colorado as of the Closing Date
(or as of such earlier date as may be required by the City). Each Purchaser has
all power and authority to enter into this Agreement and to carry out and
perform its obligations under the terms of this Agreement and any other
Transaction Document to which it is a party. The execution, delivery and
performance of the Transaction Documents and the consummation of the
transactions contemplated thereby have been duly authorized by all necessary
action on the part of each Purchaser. This Agreement and each other Transaction
Document constitutes a legal, valid and binding agreement of each Purchaser,
enforceable against it in accordance with its terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, or similar laws affecting
the enforcement of creditors' rights generally or by equitable principles
relating to enforceability.

         6.2 Governmental Authorization. The execution, delivery and performance
by Purchasers of this Agreement and each other Transaction Document require no
action by, consent or approval of, or filing with, any Governmental Authority
other than:

                  (a) compliance with any applicable requirements of the HSR Act
with respect to the consummation of the transactions contemplated hereby;

                  (b) compliance with the registration requirements of the
Securities Act, or an exemption therefrom, and any applicable state blue sky
laws; and

                  (c) as set forth in this Agreement.

         6.3 Non-Contravention. The execution, delivery and performance by
Purchasers of this Agreement and each other Transaction Document does not and
will not (a) contravene or conflict with the limited liability company
agreements of Purchasers, (b) contravene or conflict with or constitute a
violation of any Applicable Law binding upon or applicable to Purchasers, (c)
constitute a default under any contract, agreement or other commitment to which
any Purchaser is a party or by which any Purchaser is bound, or (d) contravene
or conflict with or constitute a violation of, or require any consent or
approval under or filing under, any rules or regulations of the National
Football League that are binding upon or applicable to Purchasers, Kroenke or
any Person in which Kroenke or any Affiliate of Kroenke has an interest.

                                     - 53 -

<PAGE>   60

         6.4 Securities Matters.

                  (a) The Equity Interests are being acquired for Purchasers'
own accounts, for investment and not with a view to, or for resale in connection
with, any distribution or public offering thereof within the meaning of the
Securities Act.

                  (b) Purchasers understand that the Equity Interests have not
been registered under the Securities Act by reason of their issuance in a
transaction exempt from the registration and prospectus delivery requirements of
the Securities Act pursuant to section 4(2) thereof, that Seller has no present
intention of registering the Equity Interests, that the Equity Interests must be
held by Purchasers indefinitely, and that Purchasers must therefore bear the
economic risk of such investment indefinitely, unless a subsequent disposition
thereof is registered under the Securities Act or is exempt from registration.

                  (c) During the negotiation of the transactions contemplated
herein, Purchasers and their representatives have been furnished with and have
had access to such information as Purchasers have considered necessary to make a
determination as to the purchase of the Equity Interests, have been afforded an
opportunity to ask such questions of Seller and the Purchased Entities'
officers, employees and representatives concerning the Purchased Entities'
business, operations, financial condition, assets, liabilities and other
relevant matters as they have deemed necessary or desirable, and have been given
all such information as has been requested, in order to evaluate the merits and
risks of the prospective investments contemplated herein.

                  (d) Purchasers and their representatives have been solely
responsible for Purchasers' own due diligence investigation of the Purchased
Entities and its management and business, for their own analysis of the merits
and risks of this investment, and for their own analysis of the fairness and
desirability of the terms of the investment. In taking any action or performing
any role relative to the arranging of the proposed investment, Purchasers have
acted solely in their own interest, and no Purchaser (or any of their agents or
employees) has acted as an agent of Seller.

                  (e) Each Purchaser (i) has such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risk of such Purchaser's prospective investment in the Equity Interests; (ii)
has the ability to bear the economic risks of such Purchaser's prospective
investment, including a complete loss of Purchaser's investment in the Equity
Interests; and (iii) has not been offered the Equity Interests by any form of
advertisement, article, notice or other communication published in any
newspaper, magazine, or similar media or broadcast over television or radio, or
any seminar or meeting whose attendees have been invited by any such media.

         6.5 Advisory Fees. No Purchaser has retained or authorized any
investment banker, broker, finder or other intermediary or advisor to act on
behalf of Purchasers or their Affiliates who might be entitled to any fee,
commission or reimbursement of expenses from Purchasers, Seller or any of its
respective Affiliates upon consummation of the transactions contemplated by this
Agreement.

                                     - 54 -

<PAGE>   61

         6.6 Litigation. There is no proceeding pending or, to the knowledge of
Kroenke or any Purchaser, threatened against or affecting Kroenke or any
Purchaser before any court or arbitrator or any governmental body, agency or
official, that in any manner challenges or seeks to prevent, enjoin, alter or
materially delay the transactions contemplated by the Transaction Documents.

         6.7 Beneficial Ownership.

                  (a) The Persons who "beneficially own" (within the meaning of
section 13(d)(3) of the Securities Exchange Act of 1934, as amended) any
interests in Purchasers (such Persons collectively referred to as the
"Principals," and individually as a "Principal"), and the amount of such
interests each such Principal "beneficially owns," are set forth on Schedule
6.7(a). No other Person not listed on Schedule 6.7(a) has or will have as of the
Closing Date any right, contract, agreement, arrangement or understanding with
respect to any interests in any Purchaser.

                  (b) Purchasers and the Principals understand and acknowledge
that each of the City, the NBA and the NHL have various requirements regarding
the suitability of owners of, respectively, Ascent Arena Company, an NBA
franchise and an NHL franchise, and Purchasers and the Principals are familiar
with such requirements. To the knowledge of Purchasers and the Principals, no
Person listed on Schedule 6.7(a) has: (i) ever had a petition under the federal
bankruptcy laws or any state bankruptcy or insolvency laws filed by or against
such Person or any partnership in which such Person was a general partner at the
time of or within two years prior to such filing, any limited liability company
in which such Person was a member at the time of or within two years prior to
such filing, or any corporation or business association of which such Person was
an executive officer or director at the time of or within two years prior to
such filing; (ii) been convicted in a criminal proceeding or been named subject
of a pending criminal proceeding (excluding minor traffic violations or other
minor offenses); (iii) been the subject of any order, judgment, or decree not
subsequently reversed, suspended or vacated, of any Governmental Authority,
permanently or temporarily enjoining such Person from, or otherwise limiting
such Person from, engaging in any type of business activity; (iv) ever had any
ties to or relationships with organized crime or any Persons involved in
organized crime; or (v) engaged in any illegal, unethical or inappropriate
conduct that could reasonably be expected to serve as a basis for any of the
City, the NBA or the NHL to not approve Purchasers or any Principals as an owner
of, respectively, Ascent Arena Company, the Nuggets or the Avalanche.
Additionally, each of the Principals has a net worth and financial liquidity
that are reasonably expected to meet the requirements of the City, the NBA and
the NHL.

         6.8 No Other Representations. Seller acknowledges that Purchasers and
the Principals have not made and do not make, and Seller has not relied on, any
representation or warranty, whether express or implied, of any kind or character
except as expressly set forth in this Article VI.

         6.9 Financial Matters. Purchasers have, or at Closing will have,
sufficient funds available to consummate the transactions contemplated by this
Agreement.

                                     - 55 -

<PAGE>   62

                                  ARTICLE VII.

                              CONDITIONS TO CLOSING

         7.1 Conditions to Obligations of Purchasers. The obligations of
Purchasers to consummate the Closing are subject to the satisfaction, or waiver
by Purchasers, of each of the following conditions:

                  (a) Seller shall have performed and complied in all material
respects with all of the terms of this Agreement to be performed and complied
with by Seller prior to or at Closing.

                  (b) All of the representations and warranties of Seller
contained in this Agreement shall be true and correct in all material respects
as of the Closing Date, except for those representations and warranties which
are made as of a specific date, which shall be true and correct in all material
respects as of such date.

                  (c) Seller shall have delivered to Purchasers a certificate
signed by an authorized officer stating that, as of the Closing Date, the
conditions set forth in Sections 7.1(a) and 7.1(b) have been satisfied.

                  (d) No temporary restraining order, preliminary or permanent
injunction, stay, cease and desist order or other order issued by any court of
competent jurisdiction or any competent Governmental Authority prohibiting the
consummation of the Closing shall be in effect.

                  (e) Except the City Consent (which shall be governed by
Section 7.1(h)) and compliance with the HSR Act (which shall be governed by
Section 7.1(i)), all material Sports Entities' Required Governmental Approvals
shall have been obtained without the imposition of any conditions unacceptable
to Purchasers in their reasonable discretion. All such Sports Entities' Required
Governmental Approvals shall be in effect, all applicable waiting periods with
respect to such Sports Entities' Required Governmental Approvals shall have
expired, and all conditions and requirements prescribed by Applicable Law or by
such Sports Entities' Required Governmental Approvals to be satisfied on or
prior to the Closing Date shall have been satisfied to the extent necessary such
that all such Sports Entities' Required Governmental Approvals are in full force
and effect as of the Closing.

                  (f) Except the consents of the NBA and NHL (which shall be
governed by Section 7.1(g)), all material Sports Entities' Required Contractual
Consents shall have been obtained without the imposition of any conditions
unacceptable to Purchasers in their reasonable discretion. All such Sports
Entities' Required Contractual Consents shall be effective, and all conditions
and requirements prescribed by any such Sports Entities' Required Contractual
Consent to be satisfied on or prior to the Closing Date shall have been
satisfied to the extent necessary such that all such Sports Entities' Required
Contractual Consents are in full force and effect as of the Closing.

                                     - 56 -

<PAGE>   63

                  (g) All required written consents of the NBA and the NHL to
the transfer of membership and partnership interests contemplated by this
Agreement shall have been obtained on customary or otherwise reasonable terms
and conditions; provided that terms and conditions similar to those included in
the existing Consent Agreements of the Avalanche or the existing Agreements and
Undertakings of the Nuggets, including any Consent Agreement of the Avalanche
and any Agreement and Undertaking of the Nuggets entered into in connection with
the acquisition of control of Sellers by Liberty Media Corporation, or otherwise
consistent with conditions imposed on other NBA (including specifically former
American Basketball Association) teams or NHL teams will be deemed to be
customary or otherwise reasonable terms and conditions. Each of KMS Sports and
KMN Ball shall have received satisfactory assurance, either through written
confirmation from the NBA that league approval was obtained at a meeting of the
NBA's board of governors, or by a unanimous authorization by the NBA Member
Teams, the NBA, or otherwise in accordance with such league's Organizational
Documents, to the transfer of the Nuggets to each of KMS Sports and KMN Ball.

                  (h) The City Consent shall have been obtained without the
imposition of any conditions that are unreasonable and unacceptable to
Purchasers in their reasonable judgment, it being understood that the conditions
described in Section 9.10 in no event will be deemed unreasonable or
unacceptable to Purchasers.

                  (i) If the filing of a Notification Form under the HSR Act is
required, the waiting period applicable to the consummation of the transactions
contemplated by this Agreement under the HSR Act shall have expired or been
terminated.

                  (j) Purchasers must have received (i) a "date-down"
endorsement, in form and substance reasonably satisfactory to Purchasers, to the
existing title insurance policy covering the Arena Land, unless the Arena Land
has been conveyed to the City pursuant to the Arena Agreement, and (ii) either
an extended coverage title insurance policy pursuant to the existing title
commitment covering the Development Property, if one has not been issued prior
to the Closing, or a "date-down" endorsement, in form and substance reasonably
satisfactory to Purchasers, to the title insurance policy covering the
Development Property previously issued pursuant to such title commitment.

                  (k) Purchasers must have received evidence reasonably
satisfactory to them that all Liabilities of any Purchased Entity to Seller or
any other Purchased Entity have been forgiven and discharged, other than
Liabilities created by this Agreement.

                  (l) Purchasers must have received current certificates of good
standing from the Delaware Secretary of State with regard to AEG, HC, LLC-I,
Nuggets LP, LLC-II, and, if applicable, Denver Arena Trust.

                  (m) Purchasers must have received current certificates of good
standing from the Colorado Secretary of State with regard to Ascent Arena
Company, Arena Operating Company, Avalanche LLC and the Nevada Secretary of
State with regard to Mountain Mobile.

                                     - 57 -

<PAGE>   64

                  (n) Purchasers must have received a copy of the independent
public accountants' report to be submitted on or before May 31, 2000, pursuant
to the Sale and Servicing Agreement, and such report must state that such
accountants have performed certain procedures in connection with Ascent Arena
Company's compliance with respect to its servicing obligations under the Sale
and Servicing Agreement and identify results of such procedures and including
any exceptions and notes.

                  (o) All documents required to be delivered under Article IV
must have been delivered.

         7.2 Conditions to Obligations of Seller. The obligations of Seller to
consummate the Closing are subject to the satisfaction, or waiver by Seller, of
each of the following conditions:

                  (a) Purchasers must have performed and complied in all
material respects with all of the terms of this Agreement to be performed and
complied with by Purchasers prior to or at Closing.

                  (b) The representations and warranties of Purchasers contained
in this Agreement must be true and correct in all material respects as of the
Closing Date.

                  (c) No temporary restraining order, preliminary or permanent
injunction, stay, cease and desist order or other order issued by any court of
competent jurisdiction or any competent Governmental Authority prohibiting the
consummation of the Closing shall be in effect.

                  (d) The NBA shall have released AEG from any guaranty of
Nuggets LP's obligations under the Agreement and Undertaking, dated as of June
27, 1997, between the NBA, Seller and Nuggets LP and shall have released any
Person other than a Purchased Entity from any guaranty under any Agreement and
Undertaking entered into in connection with the acquisition of control of Seller
by Liberty Media Corporation.

                  (e) The NHL shall have released AEG from any guaranty of
Avalanche LLC's obligations under the Consent Agreements, dated as of July 1,
1995 and June 27, 1997, between the NHL, Seller, and Avalanche LLC and shall
have released any Person other than a Purchased Entity from any guaranty under
any Consent Agreement entered into in connection with the acquisition of control
of Seller by Liberty Media Corporation.

                  (f) AEG shall have been released from its guaranty to the City
of performance by Ascent Arena Company, Nuggets LP and Avalanche LLC pursuant to
the Arena Agreement.

                  (g) AEG shall have been released from its guarantees (i) under
that certain Guaranty, dated November 14, 1997, of Ascent Arena Company's
obligations under the ERA (as the same may from time to time be modified,
extended and otherwise amended), and (ii) under that certain Guaranty Agreement,
dated as of November 1, 1997, of Ascent Arena Company's obligations under the
Redevelopment Agreement (as the same may from time to time be modified, extended
or

                                     - 58 -

<PAGE>   65

otherwise amended); provided, however, that if either of such releases has not
been obtained and all other conditions to Closing have been satisfied or waived,
Seller will proceed with the Closing, in which event Kroenke and Ascent Arena
Company will (A) use their best efforts to obtain such releases as soon as
practically possible after the Closing, and (B) indemnify and hold harmless AEG
from any liability (including any costs and expenses) that may be incurred by
AEG after the Closing pursuant to such guarantees.

                  (h) Purchasers shall have acknowledged in writing that all
Liabilities of Seller to any Purchased Entity (or of any Purchased Entity to any
other Purchased Entity) shall have been forgiven and discharged, excluding only
the Liabilities created by this Agreement.

                  (i) All material Sports Entities' Required Governmental
Approvals shall have been obtained as required under Section 7.1(e).

                  (j) All material Sports Entities' Required Contractual
Consents shall have been obtained as required under Section 7.1(f).

                  (k) The written consent of the NBA and the NHL to the transfer
of membership and partnership interests contemplated by this Agreement shall
have been obtained as required under Section 7.1(g).

                  (l) The City Consent shall have been obtained as required
under Section 7.1(h).

                  (m) If the filing of a Notification Form under the HSR Act is
required, the waiting period applicable to the consummation of the transactions
contemplated by this Agreement under the HSR Act shall have expired or been
terminated.

                  (n) Any Interim Period Intercompany Loans shall have been
repaid in accordance with Section 3.2(f).

                  (o) The deliveries required to be made by Purchasers under
Section 4.4 shall have been made.

                                  ARTICLE VIII.

                                   TERMINATION

         8.1 Mutual Agreement. This Agreement may be terminated at any time
prior to the Closing by the mutual written agreement of Seller and Purchasers.

         8.2 Default by Seller. This Agreement may be terminated by Purchasers
prior to the Closing at any time following the expiration of 30 days from the
date that Purchasers have given written notice to Seller that any representation
or warranty of Seller in this Agreement is not true and correct in all material
respects or that there shall have been a breach by Seller with respect to any

                                     - 59 -

<PAGE>   66

material obligation of Seller in this Agreement, in either case which breach
would entitle Purchasers not to consummate the transactions contemplated by this
Agreement in accordance with Section 7.1, and such breach cannot be cured by
June 30, 2000 (the "Drop Dead Date").

         8.3 Default by Purchasers. This Agreement may be terminated by Seller
prior to the Closing at any time following the expiration of 30 days from the
date that Seller has given written notice to Purchasers that any representation
or warranty of Purchasers in this Agreement is not true and correct in all
material respects or that there shall have been a breach by Purchasers with
respect to any material obligation of Purchasers in this Agreement, in either
case which breach would entitle Seller not to consummate the transactions
contemplated by this Agreement in accordance with Section 7.2, and such breach
cannot be cured by the Drop Dead Date.

         8.4 Failure to Close. This Agreement may be terminated by Purchasers or
Seller if the Closing shall not have been consummated by the Drop Dead Date;
provided, however, that neither Seller nor Purchasers may terminate this
Agreement pursuant to this Section 8.4 (i) if the Closing shall not have been
consummated within such time period by reason of the failure of such party or
any of its Affiliates to perform in all material respects any of its or their
respective covenants or agreements contained in this Agreement, or (ii) prior to
August 31, 2000, if the Closing shall not have been consummated prior to such
date solely because any one or more of the conditions set forth in Sections
7.1(e), (f), (g), or (h) has not been satisfied if the applicable party has and
continues to reasonably pursue obtaining the consents required to be obtained in
order for such conditions to be satisfied in accordance with the provisions of
this Agreement.

         8.5 Effect of Termination. In the event of termination of this
Agreement pursuant to this Article VIII, this Agreement forthwith shall become
void and of no further force or effect, and no party hereto shall have any
liability or obligation hereunder, except that any such termination shall not
affect (i) the provisions of Sections 9.7 (Publicity) and 9.8 (Costs and
Expenses), and the terms of any Confidentiality Agreement entered into between
any of the parties to this Agreement, all of which shall survive any such
termination, and (ii) the rights and remedies available to a party as a result
of any willful breach of any provisions of this Agreement.

                                   ARTICLE IX.

                                OTHER AGREEMENTS

         9.1 Further Assurances. Subject to the terms and conditions of this
Agreement (including Section 9.13), Seller and Purchasers will use all
reasonable efforts to take, or cause to be taken, all actions and to do, or
cause to be done, all things necessary or desirable under Applicable Law to
consummate the transactions contemplated by this Agreement. Seller and
Purchasers agree, subject to the satisfaction of the conditions contained in
this Agreement, to execute and deliver such other documents, certificates,
agreements and other writings and to take such other actions as may be
reasonably necessary or desirable in order to consummate or implement
expeditiously the transactions contemplated by this Agreement.

                                     - 60 -

<PAGE>   67

         9.2 Certain Filings. The parties hereto shall cooperate with one
another in determining whether any action by or in respect of, or filing with,
any Governmental Authority is required or reasonably appropriate, or any action,
consent, approval or waiver from any party to any Sports Entities' Contract,
Arena Contract or other Contract binding upon any Purchased Entity is required
or reasonably appropriate, in connection with the consummation of the
transactions contemplated by this Agreement. Subject to the terms and conditions
of this Agreement (including Section 9.13), in taking such actions or making any
such filings, the parties hereto shall furnish information required in
connection therewith and seek timely to obtain any such actions, consents,
approvals or waivers. Without limiting the foregoing, the parties hereto shall
each promptly complete and file all reports and forms, and respond to all
requests or further requests for additional information, as may be required or
authorized under the HSR Act.

         9.3 Administration of Accounts. All payments and reimbursements made by
any third party to Seller in the name of or to any of the Purchased Entities,
the Pepsi Center, the Arena Land, the Development Property, the Nuggets or the
Avalanche after the Closing Date shall be held by Seller in trust for the
benefit of Purchasers and, immediately upon receipt by Seller of any such
payment or reimbursement, Seller shall pay, or cause to be paid, over to
Purchasers the amount of such payment or reimbursement without right of set off.

         9.4 Guarantee of Performance. The obligations of Purchasers pursuant to
this Agreement and to consummate the transactions contemplated by the
Transaction Documents will be personally guaranteed by Kroenke.

         9.5 Taxes.

                  (a) Pre-Closing Matters.

                           (i) Seller shall cause any tax-sharing agreements,
                           tax indemnity agreements, tax allocation agreements,
                           or similar agreements with respect to any P&P Entity,
                           and any power of attorney with respect to Tax matters
                           of any P&P Entity, to be terminated on or prior to
                           the Closing Date so that from and after the Closing
                           Date the P&P Entities shall not be bound thereby nor
                           have any liability thereunder.

                           (ii) No material new elections with respect to Taxes
                           nor any material changes in current elections with
                           respect to Taxes affecting any P&P Entity shall be
                           made after the Effective Date without the prior
                           written consent of Purchasers.

                           (iii) Prior to Closing, Seller shall provide
                           Purchasers with a clearance certificate or similar
                           document that may be required by any state taxing
                           authority in order to relieve Purchasers of (A) any
                           obligation to withhold any portion of the Purchase
                           Price with respect to any of the P&P Entities and (B)
                           any potential bulk sales tax liability.

                                     - 61 -

<PAGE>   68

                           (iv) Seller shall deliver to Purchasers at Closing a
                           "Certificate of Nonforeign Status" under section 1445
                           of the Code in a form reasonably satisfactory to
                           Purchasers.

                           (v) Each Partnership Entity has or will have an
                           election under section 754 of the Code in effect for
                           the tax year that includes the Closing Date. The tax
                           matters partner for each Partnership Entity shall
                           resign effective on or before the Closing Date.

                           (vi) Seller shall reasonably cooperate with
                           Purchasers with respect to structure matters relating
                           to Tax efficiencies prior to Closing.

                           (vii) Prior to the Closing, Seller shall pay all
                           Non-Income Taxes of each P&P Entity no later than the
                           last date on which such Non-Income Taxes are due and
                           payable.

                           (viii) Seller shall not be obligated to make any
                           indemnification payments to Purchasers under Section
                           9.5(d) unless and until the amount of unpaid Taxes
                           not accrued as of the Closing Date on a consolidated
                           balance sheet for the Purchased Entities prepared in
                           a manner consistent with the balance sheets for the
                           Purchased Entities as at the Balance Sheet Date that
                           are included in the Financial Statements equals
                           $400,000 in the aggregate, in which event Purchasers
                           shall be entitled to indemnification for 50% of all
                           unpaid Taxes in excess of such amount.

                  (b) Allocation of Income Taxes for Pre-Closing and
Post-Closing Periods.

                           (i) Seller shall pay all Income Taxes of each P&P
                           Entity allocable to any Pre-Closing Period whether
                           such Taxes are due before or after Closing, including
                           (i) all Income Taxes specifically attributable to a
                           Predecessor Entity ceasing to be a member of Seller's
                           consolidated group (which shall include any income
                           from an intercompany transaction described in
                           Treasury Regulation Section 1.1502-13 or with respect
                           to any excess loss account described in Treasury
                           Regulation Section 1.1502-19 or pursuant to any
                           comparable provisions of state, local or foreign tax
                           law), (ii) all Income Taxes with respect to income,
                           gain or loss from the sale of the interests in the
                           Purchased Entities, and (iii) any Taxes related to
                           the mergers of the Predecessor Entities with or into
                           the Purchased Entities prior to the Effective Date.
                           Subject to the provisions below, the Income Taxes
                           allocable to a Pre-Closing Period shall be determined
                           on the accrual accounting method and on the basis of
                           a closing of the books of each Purchased Entity as of
                           the end of the Closing Date. The Income Taxes
                           attributable to a Purchased Entity's direct and
                           indirect interest in any Tax Partnerships shall be
                           determined by a closing of the books of each Tax
                           Partnership as of the end of the Closing Date, and
                           all Income Taxes

                                     - 62 -

<PAGE>   69

                           attributable to the operations and activities of a
                           Tax Partnership through the end of the Closing Date
                           using the accrual accounting method shall be
                           considered Income Taxes of the Purchased Entity
                           allocable to a Pre-Closing Period.

                           (ii) For federal income tax purposes, Seller shall
                           include all income of each Corporate Entity for all
                           Pre-Closing Periods beginning on or after July 1,
                           1997 in the consolidated federal income tax Returns
                           of Seller's consolidated group and shall pay any
                           Income Taxes attributable to such income. Any
                           position on such Returns that relates to a Corporate
                           Entity shall comply with the Return Preparation
                           Standard. Purchasers shall prepare and deliver to
                           Seller, within 45 days after Closing, books and
                           working papers (prepared on a GAAP basis) that
                           demonstrate the operations, activities and income of
                           each Purchased Entity for the period ending on the
                           Closing Date. Seller shall prepare and deliver to
                           Purchasers within 30 days after the receipt of the
                           books and working papers described in the preceding
                           sentence, a statement prepared on a tax basis
                           reflecting the operations, activities and income of
                           each Purchased Entity for the period ending on the
                           Closing Date.

                  (c) Transfer Taxes. Purchasers shall pay 100% of any sales,
use, transfer, stamp, documentary or other similar Taxes and any recording and
filing fees (collectively "Transfer Taxes"), with respect to the transactions
contemplated by the Transaction Documents, and Purchasers shall prepare and
timely file all Returns with respect to such Transfer Taxes.

                  (d) Indemnification.

                           (i) Subject to Section 9.5(a)(viii), Seller shall
                           indemnify and hold harmless Purchasers, each
                           Purchased Entity and their Affiliates from and
                           against (without duplication) any loss incurred by
                           Purchasers, any Purchased Entity, or any of their
                           Affiliates:

                                    (A) With respect to any Income Taxes of a
                           Purchased Entity or Corporate Entity attributable to
                           a Pre-Closing Period taking into account the
                           provisions of Section 9.5(b)(i) but excluding any
                           Taxes described in Section 9.5(d)(ii)(B) or
                           (d)(ii)(C);

                                    (B) With respect to any Income Taxes
                           specifically attributable to a Corporate Entity
                           leaving Seller's consolidated group (which shall
                           include any deferred intercompany gain under Treasury
                           Regulation Section 1.1502-13 and income with respect
                           to an excess loss account under Treasury Regulation
                           Section 1.1502-19, or pursuant to any comparable
                           provision of state, local or foreign tax law);

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<PAGE>   70

                                    (C) With respect to any liability of a
                           Purchased Entity or Corporate Entity for any
                           Pre-Closing Period for the Income Taxes of any other
                           Person (other than another Purchased Entity or
                           Corporate Entity) as a transferee, a successor, by
                           contract, pursuant to Treasury Regulation ss.
                           1.1502-6, or otherwise; and

                                    (D) With respect to any loss resulting from
                           the breach of any of the representations or
                           warranties of Seller set forth in Section 5.11 or any
                           of the covenants or agreements of Seller set forth in
                           this Section 9.5.

                           (ii) Purchasers shall indemnify and hold harmless
                           Seller and its respective Affiliates from and against
                           (without duplication) any loss incurred by Seller or
                           its Affiliates:

                                    (A) With respect to any Taxes of a Purchased
                           Entity attributable to a Post-Closing Period;

                                    (B) With respect to any Taxes resulting from
                           transactions or actions taken by a Purchased Entity
                           that occur on the Closing Date but after the Closing
                           and that are not in the ordinary course of business;

                                    (C) With respect to any Taxes resulting from
                           an actual or deemed election by Purchasers under
                           section 338 of the Code (or any similar provisions of
                           state law or the law of any other taxing
                           jurisdiction) with respect to any of the Purchased
                           Entities in connection with any of the transactions
                           contemplated by this Agreement;

                                    (D) With respect to any Transfer Taxes that
                           are the obligation of Purchasers under Section
                           9.5(c); and

                                    (E) With respect to any loss resulting from
                           the breach of any of the covenants or agreements of
                           Purchasers set forth in this Section 9.5.

                           (iii) Any indemnity payments made between the parties
                           shall be treated as an adjustment to the Adjusted
                           Purchase Price.

                  (e) Preparation of Returns.

                           (i) All Returns for a P&P Entity (other than Mountain
                           Mobile) with respect to any Pre-Closing Period that
                           are to be filed after the Effective Date and before
                           the Closing Date shall be prepared and filed by
                           Seller and Seller shall pay all Taxes due on those
                           Returns. Any federal consolidated income tax return
                           and any state consolidated, unitary or combined
                           income tax return that includes a P&P Entity with
                           respect to any Pre-Closing Period and any

                                     - 64 -

<PAGE>   71

                           Return for a P&P Entity for which Seller is liable
                           for Income Taxes allocable to any Pre-Closing Period
                           under Section 9.5(b)(i) and that is to be filed after
                           the Closing Date shall be prepared and filed by
                           Seller. Seller shall pay all Taxes shown as due on
                           those Returns; provided that if any amount shown as
                           due on those Returns is the obligation of Purchasers
                           under Section 9.5(d)(ii), Purchasers shall pay such
                           amount to Seller at least five Business Days prior to
                           the filing of such Returns. The Returns described
                           above shall be prepared in accordance with the Return
                           Preparation Standard insofar as such Returns relate
                           to a P&P Entity (other than Mountain Mobile). Seller
                           shall provide Purchasers with a copy of each such
                           Return (and supporting schedules) in the form
                           proposed to be filed by Seller (a "Proposed Return")
                           at least 30 days in advance of the due date
                           (including any extensions) for such Return.
                           Purchasers and their authorized representatives shall
                           have the right to review and comment on the Proposed
                           Return, and Seller shall make any changes reasonably
                           requested by Purchasers in order to cause the
                           Proposed Return to comply with the Return Preparation
                           Standard. Neither Seller nor any Affiliate shall file
                           any amended Return or claim for Tax refund with
                           respect to any P&P Entity with respect to any
                           Pre-Closing Period, without the consent of
                           Purchasers, if the requested adjustment would
                           increase the Tax liability of Purchasers for any
                           period unless Seller or the Affiliate, as the case
                           may be, agrees to indemnify Purchasers for the full
                           cost of such increased Tax liability of Purchasers.

                           (ii) Except for state and federal income Tax Returns
                           described in paragraph (i) above, all Returns with
                           respect to a P&P Entity that are to be filed after
                           the Closing Date shall be prepared and filed by
                           Purchasers, and Purchasers shall pay any amount shown
                           as due on such Returns.

                           (iii) Seller and Purchasers agree to furnish or cause
                           to be furnished to each other, upon request, as
                           promptly as practicable, such information and
                           assistance (including access to books, records and
                           accounting work papers) relating to a P&P Entity as
                           is reasonably necessary for the preparation of any
                           Return, claim for refund or audit, and the
                           prosecution or defense of any claim, suit or
                           proceeding relating to any proposed adjustment.

                  (f) Notification of Proceedings. In the event that Purchasers
receive written notice of any Tax matter with respect to a P&P Entity that could
affect Seller, or Seller receives written notice of any Tax matter with respect
to a P&P Entity that could affect Purchasers, the party receiving such written
notice shall notify in writing the potentially affected party within five
Business Days after receipt of such notice. The failure of any party to give the
notice required by this Section 9.5(f) shall not impair that party's rights
under this Agreement except to the extent that the other party demonstrates that
it has been damaged or prejudiced thereby.

                                     - 65 -

<PAGE>   72

                  (g) Cooperation.

                           (i) After the Closing, Seller and Purchasers shall,
                           each at its own expense, cooperate with each other
                           and with each other's agents, including accounting
                           firms and legal counsel, in connection with the
                           preparation or audit of any Return, refund claim or
                           Tax controversy matter with respect to any P&P Entity
                           or its activities. Such cooperation shall include
                           making available any information, records and
                           documents in their possession or under their control
                           related to any P&P Entity that is relevant to the
                           preparation or audit of any Return, refund claim or
                           Tax controversy matter with respect to any P&P Entity
                           or its activities. Any information provided or
                           obtained under this paragraph shall be kept
                           confidential, except as may otherwise be necessary in
                           connection with the filing of a Return, refund
                           claims, tax audits, tax claims or tax litigation or
                           as required by law.

                           (ii) Seller shall have the right to control, at its
                           expense, any Tax Proceeding (as defined below) to the
                           extent such proceeding relates to any Tax issue that
                           could give rise to a liability of Seller to
                           Purchasers under Section 9.5(d)(i) (a "Liability
                           Issue"). Seller shall furnish to Purchasers copies of
                           any inquiries or requests for information from any
                           taxing authority concerning any Liability Issue, and
                           Seller shall furnish to Purchasers advance written
                           notification of the position(s) that Seller intends
                           or expects to take in such Tax Proceedings.
                           Purchasers shall have the right to consult with
                           Seller regarding any response to such requests.
                           Seller shall provide to Purchasers copies of all
                           written communications and documents submitted to any
                           taxing authority with respect to a Liability Issue.
                           Seller and Purchasers shall each furnish to the
                           other, promptly after receipt, a copy of all
                           information document requests, notices of proposed
                           adjustment, revenue agent's reports or similar
                           reports or notices of deficiency together with all
                           relevant documents and memos related to the foregoing
                           documents, notices or reports, relating to any
                           Liability Issue. Notwithstanding the foregoing,
                           Seller shall not take or propose to take any
                           unreasonable position in any Tax Proceeding involving
                           or with respect to any of the P&P Entities. Every
                           position that Seller proposes to take in such Tax
                           Proceedings shall be deemed to be reasonable unless
                           Purchasers provide to Seller a written opinion of
                           nationally recognized tax counsel that concludes that
                           the position taken by Seller is unreasonable. In that
                           event, Seller shall cease to maintain such position
                           unless and until Seller is able to provide to
                           Purchasers a written opinion of nationally recognized
                           tax counsel that the position that Seller is taking
                           is reasonable.

                           (iii) Subject to the provisions of subparagraph (ii)
                           above, Purchasers shall have complete control over
                           the handling, disposition and settlement of any Tax
                           controversy with respect to a Purchased Entity,
                           including any

                                     - 66 -

<PAGE>   73

                           administrative, judicial or other proceeding in
                           connection with any Tax controversy (a "Tax
                           Proceeding").

                  (h) Record Retention. Seller and Purchasers shall retain and
provide to each other upon reasonable request any records or other information
(including accounting work papers) that is in their possession or readily
obtainable and may be relevant to any Return, audit or examination, proceeding,
or determination that affects any amount required to be shown on any Return of a
P&P Entity for any period. Without limiting the generality of the foregoing,
Seller and Purchasers shall retain, until the applicable statutes of limitations
(including any extensions) have expired, copies of all Returns, supporting work
papers, and other records or information that may be relevant to such Returns of
a P&P Entity and shall not destroy or otherwise dispose of any such records
without first providing the other party with a reasonable opportunity to review
and copy the same.

                  (i) Treatment of Purchase. For federal income tax purposes,
Seller and Purchasers shall treat the purchase of 100% of the membership
interests in LLC-I and LLC-II as the purchase of the assets of LLC-I and LLC-II
pursuant to Revenue Ruling 99-5.

                  (j) Allocation of Purchase Price. Within 75 days after the
Closing Date, Purchasers will deliver to Seller proposed Schedule 9.5(j) (the
"Allocation Schedule"), which shall set forth an allocation of the total amount
of the consideration paid by Purchasers to Seller in connection with the
consummation of the transactions contemplated by this Agreement to the Assets
acquired by Purchasers from Seller hereunder. The allocation shall take into
account an appraisal prepared by PricewaterhouseCoopers, or another nationally
recognized appraiser reasonably acceptable to Purchasers and Seller, who shall
be retained by Purchasers at Purchasers' expense. Seller shall reasonably
cooperate in providing information and assistance to any such appraiser. Within
ten Business Days after delivery of the Allocation Schedule by Purchasers to
Seller, Seller will notify Purchasers in writing whether Seller approves or
disapproves the Allocation Schedule; provided, however, that Seller will not
disapprove the Allocation Schedule unless Seller determines in its reasonable
judgment that (i) either the appraisal is not reasonably supportable or the
allocation proposed by Purchasers on the Allocation Schedule is not reasonably
consistent with the appraisal, and (ii) that the allocation proposed by
Purchasers on the Allocation Schedule will result in Seller being required to
recognize both ordinary income and capital loss in an amount that is more than
de minimus. Unless Seller disapproves the Allocation Schedule pursuant to the
immediately preceding sentence, the Allocation Schedule will be attached to and
incorporated as part of this Agreement within 90 days after the Closing Date,
and all parties to this Agreement shall prepare and file all applicable Returns
in a manner consistent with the allocation set forth on the Allocation Schedule.

         9.6 Employee Benefit Plans.

                  (a) This Section 9.6 contains the covenants and agreements of
the parties with respect to the employee benefits and employee benefit plans
provided or covering the employees of the Purchased Entities. Nothing herein
expressed or implied confers upon any such employee any rights or remedies of
any nature or kind whatsoever under or by reason of this Section 9.6.

                                     - 67 -

<PAGE>   74

                  (b) Purchasers agree to cause the Purchased Entities' Employee
Plans to be maintained substantially in accordance with their current terms and
conditions, except to the extent any change may be required by Applicable Law,
through the first anniversary of the Closing Date.

                  (c) Purchasers agree to cause to be made available on and
after the Closing Date to employees of the Purchased Entities on the Closing
Date who participate in Seller's 401(k) Plan ("Seller's 401(k) Plan") a 401(k)
plan sponsored by LLC-I (the "Ascent Sports 401(k) Plan"). The Ascent Sports
401(k) Plan shall, through the first anniversary of the Closing Date, provide
benefits, and contain terms and provisions, substantially the same as provided
under Seller's 401(k) Plan. The Ascent Sports 401(k) Plan shall accept direct
and indirect rollovers of such employees' account balances in Seller's 401(k)
Plan, including direct rollovers of any outstanding employee loans under
Seller's 401(k) Plan in kind. To the extent that distributions from Seller's
401(k) Plan to the employees of the Purchased Entities are prohibited by law, as
determined by Seller, Seller and Purchasers agree to use their reasonable best
efforts to effect a transfer of the account balances (including participant
loans, if any, and any portion of such accounts attributable to qualifying
employer securities, as defined in ERISA section 407) of the employees of the
Purchased Entities held in Seller's 401(k) Plan to the Ascent Sports 401(k) Plan
within a reasonable period of time after the Closing Date.

                  (d) Each welfare plan (within the meaning of section 3(1) of
ERISA) or policy maintained or sponsored by the Purchased Entities or by
Purchaser in which any employees of the Purchased Entities who currently
participate in welfare plans maintained by Seller will be eligible to
participate shall (i) permit such employees to enroll in such plans effective
upon the Closing Date, subject to satisfaction of any eligibility requirements
but without regard to any waiting periods, (ii) waive any pre-existing condition
limitation or exclusion and (iii) credit all payments made for health care
expenses during the current plan year of Seller's plans for purposes of
satisfying deductible, co- insurance and maximum out-of-pocket provisions for
the balance of the current plan year of the Purchased Entities' or Purchasers'
plans.

                  (e) Purchasers shall (i) cause the Purchased Entities to
continue, for the balance of the current plan year, any Code section 125
cafeteria plans based on the current elections of the participants who are
employed by the Purchased Entities on the Closing Date; or (ii) establish a
similar Code section 125 cafeteria plan that will accept transfers of account
balances from any Code section 125 cafeteria plans in which employees of the
Purchased Entities participate.

         9.7 Publicity. The parties hereto understand and acknowledge that
Seller will be obligated to disclose promptly after signing all of the material
terms and conditions of this Agreement, and shall thereafter be required to file
this Agreement with the Securities and Exchange Commission. Subject to the
foregoing, the parties agree that no press release will be made by Seller or
Purchasers or any of their respective agents concerning the transactions
contemplated under this Agreement until such release has been reviewed by and
coordinated with the other parties.

         9.8 Costs and Expenses. Seller and Purchasers shall each be responsible
for and bear their own costs and expenses incurred in connection with the
transactions contemplated under this

                                     - 68 -

<PAGE>   75

Agreement; provided, however, that Seller and Purchasers shall each pay one-half
of any HSR Act filing fees required to be paid in connection with the
transactions contemplated under this Agreement.

         9.9 Conditions to Closing. Subject to the terms and conditions of this
Agreement (including Sections 9.10, 9.11, 9.12 and 9.13), Seller and Purchasers
shall use all reasonable efforts to satisfy the applicable conditions to the
Closing set forth in Article VII.

         9.10 City Consent. Purchasers and Kroenke shall use their reasonable
efforts to obtain the City Consent, including, if requested by the City, (a)
Kroenke will execute a guarantee of the obligations under the Arena Agreement
and the Ground Lease with the City to be entered into upon the City Transfer, in
form and substance reasonably satisfactory to Kroenke and the City; provided,
however, that a guarantee substantially similar to the guarantee in favor of the
City provided by AEG, the form of which is attached as an exhibit to the Arena
Agreement, will be deemed to be reasonably acceptable to Kroenke, and (b)
Purchasers and Kroenke will grant or cause to be granted for the benefit of the
City security interests in one or more Persons holding, directly or indirectly,
all of the interests in the Purchased Entities or any successor entities that
hold all of the interests in the Nuggets, Avalanche and Pepsi Center, in form
and substance reasonably satisfactory to Purchasers, Kroenke and the City,
subject to an inter-creditor agreement pursuant to which any lender to
Purchasers would agree to subordinate to any such security interests granted for
the benefit of the City.

         9.11 NBA and NHL Consents. Subject to the last sentence of this Section
9.11, any other provision of this Agreement to the contrary notwithstanding
(including any covenants of Seller in Article III), nothing in this Agreement
will be deemed to restrict the ability of Seller or any Affiliate of Seller to
take (or agree to take) or refrain from taking (or agree to refrain from taking)
any action required by the NBA or NHL in order to obtain any consents required
with respect to the transactions contemplated by this Agreement, subject to
Purchaser's consent, which will not be unreasonably withheld or delayed, except
that Purchasers' consent will not be required in connection with (i) any
resolution of the pending dispute between the Avalanche and the NHL concerning
certain television rights in favor of the NHL, (ii) execution by Seller or any
Purchased Entity of any Consent Agreement of the Avalanche and any Agreement and
Undertaking of the Nuggets in connection with obtaining approval of the NHL and
the NBA with respect to the acquisition of control of Seller and the Purchased
Entities by Liberty Media Corporation, or (iii) any action taken by Seller or
any Affiliate of Seller if such action will not be binding on any Purchased
Entity immediately after the Closing. Nothing contained in this Section 9.11
will be deemed (a) to require Seller or any Affiliate of Seller to take or agree
to take any action, including any action that Seller or any Affiliate of Seller
specifically is not required to take pursuant to Section 9.13 or (b) to conflict
with or be inconsistent with the provisions of Section 7.1(g).

         9.12 Purchase and Sale of LDA Ascent Arena Membership Interest. If
required by the NBA or NHL to obtain consents to the transactions contemplated
by this Agreement, LDA will sell to Purchasers, and Purchasers will acquire from
LDA, the LDA Ascent Arena Membership Interest for a purchase price equal to the
LDA Ascent Arena Membership Interest Value.

                                     - 69 -

<PAGE>   76

         9.13 Limitations on Required Actions. Any other provision of this
Agreement to the contrary notwithstanding except Section 9.12, in no event shall
Purchasers or any Affiliate of Purchasers or Seller or any Affiliate of Seller
(specifically including Liberty Media Corporation and AT&T Corp.) be required to
take, or agree to take, any extraordinary actions, including any of the
following actions, in order to satisfy any applicable conditions to the Closing,
including to obtain any required approval of the NBA or NHL or the City Consent:
(a) payment of any consideration other than customary fees required to be paid
to the NBA and NHL consistent with past transactions and any reasonable and
customary filing or application fees, (b) acceptance of any requirement to
divest, hold separate, or otherwise rearrange the composition of, any portion of
its assets or business, (c) acceptance of the imposition of any material
limitations on its ability effectively to exercise full rights of ownership of
any assets (including the right to vote any shares of stock in any Person or
voting rights with respect to any other equity interests in any Person), (d)
acceptance of any condition that would make the holding of any assets (including
shares of stock or other equity interests in any Person) illegal or subject to
any materially burdensome requirement or condition, or (e) acceptance of any
requirement to cease or refrain from engaging in any business; provided,
however, that with respect to Purchasers or any Affiliate of Purchasers, in no
event will the provisions of paragraphs (b), (c), (d) or (e) be deemed to apply
to any direct or indirect interest in any sports team, including the St. Louis
Rams, owned by Kroenke, Purchasers or any Affiliate of Purchasers.

         9.14 Amendment of Ascent Operating Agreement. Promptly after the
Effective Date, KMS Sports and LDA will negotiate in good faith to reach
agreement on a form of Amended and Restated Operating Agreement for Ascent Arena
Company to be entered into on the Closing Date, which will be based on the
Ascent Operating Agreement with the modifications set forth on Schedule 9.14.

                                   ARTICLE X.

                                  MISCELLANEOUS

         10.1 Notices. All notices, requests, demands, claims and other
communications hereunder shall be in writing. Any notice, request, demand,
claim, or other communication hereunder shall be deemed duly given (a) if
personally delivered, when so delivered, (b) if mailed, two Business Days after
having been sent by registered or certified mail, return receipt requested,
postage prepaid and addressed to the intended recipient as set forth below, (c)
if given by telex or telecopier, once such notice or other communication is
transmitted to the telex or telecopier number specified below and the
appropriate answer back or telephonic confirmation is received, provided that
such notice or other communication is promptly thereafter mailed in accordance
with the provisions of clause (b) above, or (d) if sent through an overnight
delivery service in circumstances to which such service guarantees next day
delivery, the day following being so sent:

                                     - 70 -

<PAGE>   77

         If to Seller:

                           Ascent Entertainment Group, Inc.
                           1225 Seventeenth Street
                           Denver, Colorado 80202
                           Attention: David B. Ehrlich, Esq.
                           Telecopier No.: (303) 308-0849

         with a copy to:

                           Liberty Media Corporation
                           9197 South Peoria Street
                           Englewood, Colorado 80012
                           Attention: Gary S. Howard
                           Telecopier No.: (720) 875-5268

         With a copy similarly addressed to:

                           Attention: Charles Y. Tanabe, Esq.
                           Telecopier No.: (720) 875-5382

         If to Purchasers:

                           KMS Sports, LLC
                           KMA Stick, LLC
                           KMN Ball, LLC
                           KMC Center, LLC
                           c/o The Kroenke Group
                           1001 Cherry Street, Suite 308
                           Columbia, Missouri 65201
                           Attention: E. Stanley Kroenke
                           Telecopier No.: (573) 441-8623

         with a copy to:

                           Sonnenschein Nath & Rosenthal
                           One Metropolitan Square
                           Suite 3000
                           St. Louis, Missouri 63102
                           Attention: Alan B. Bornstein, Esq.
                           Telecopier No. (314) 259-5959

                                     - 71 -

<PAGE>   78

         If to Designated Representative:

                           E. Stanley Kroenke
                           c/o The Kroenke Group
                           1001 Cherry Street, Suite 308
                           Columbia, Missouri 65201
                           Telecopier No.: (573) 441-8623

         Any party may give any notice, request, demand, claim or other
communication hereunder using any other means (including ordinary mail or
electronic mail), but no such notice, request, demand, claim or other
communication shall be deemed to have been duly given unless and until it
actually is received by the individual for whom it is intended. Any party may
change the address to which notices, requests, demands, claims and other
communications hereunder are to be delivered by giving the other parties notice
in the manner herein set forth.

         10.2 Amendments; No Waivers.

                  (a) Any provision of this Agreement may be amended or waived
if, and only if, such amendment or waiver is in writing and signed, in the case
of an amendment, by all parties hereto, or in the case of a waiver, by the party
against whom the waiver is to be effective.

                  (b) No waiver by a party of any default, misrepresentation or
breach of warranty or covenant hereunder, whether intentional or not, shall be
deemed to extend to any prior or subsequent default, misrepresentation or breach
of warranty or covenant hereunder or affect in any way any rights arising by
virtue of any prior or subsequent occurrence. No failure or delay by a party in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right, power or privilege.
The rights and remedies herein provided shall be cumulative and not exclusive of
any rights or remedies provided by law.

         10.3 Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
permitted assigns. No party hereto may assign either this Agreement or any of
its rights, interests or obligations hereunder without the prior written
approval of each other party.

         10.4 Governing Law. This Agreement shall be construed in accordance
with and governed by the internal laws (without reference to choice or conflict
of laws) of the State of Colorado.

         10.5 Counterparts; Effectiveness. This Agreement may be signed in any
number of counterparts, each of which shall be an original, with the same effect
as if the signatures thereto and hereto were upon the same instrument. This
Agreement shall become effective when each party hereto shall have received a
counterpart hereof signed by the other parties hereto.

                                     - 72 -

<PAGE>   79

         10.6 Entire Agreement. Except as otherwise provided herein, this
Agreement (including the Schedules and Exhibits referred to herein, which are
hereby incorporated by reference) constitutes the entire agreement between the
parties with respect to the subject matter hereof and supersedes all prior
agreements, understandings and negotiations, both written and oral, between the
parties with respect to the subject matter of this Agreement. Neither this
Agreement nor any provision hereof is intended to confer upon any Person other
than the parties hereto any rights or remedies hereunder.

         10.7 Captions. The captions herein are included for convenience of
reference only and shall be ignored in the construction or interpretation
hereof. All references to an Article or Section include all subparts thereof.

         10.8 Severability. If any provision of this Agreement, or the
application thereof to any Person, place or circumstance, shall be held by a
court of competent jurisdiction to be invalid, unenforceable or void, the
remainder of this Agreement and such provisions as applied to other Persons,
places and circumstances shall remain in full force and effect only if, after
excluding the portion deemed to be unenforceable, the remaining terms shall
provide for the consummation of the transactions contemplated hereby in
substantially the same manner as originally set forth at the later of the date
this Agreement was executed or last amended.

         10.9 Construction.

                  (a) The language used in this Agreement will be deemed to be
the language chosen by the parties hereto to express their mutual intent, and no
rule of strict construction shall be applied against either party. Any reference
to any Applicable Law shall be deemed also to refer to all rules and regulations
promulgated thereunder, unless the context requires otherwise. Whenever required
by the context, any gender shall include any other gender, the singular shall
include the plural and the plural shall include the singular. The words
"herein," "hereof," "hereunder," and words of similar import refer to the
Agreement as a whole and not to a particular section. The words "include,"
"includes" and "including" shall be deemed followed by the phrase "without
limitation."

                  (b) In the event of a conflict or inconsistency between any
provision contained in this Agreement and any provision contained in any of the
Schedules or Exhibits to this Agreement, the provision in the Agreement shall be
controlling.

         10.10 Cumulative Remedies. Except as provided in Section 9.5, the
rights, remedies, powers and privileges herein provided are cumulative and not
exclusive of any rights, remedies, powers and privileges provided by law. Each
of Seller and Purchasers acknowledges that a party and its Affiliates will
suffer irreparable damage if the other party does not perform its obligations
under this Agreement, and without limiting other rights or remedies to which a
party may be entitled, agrees that with respect to such obligations, an
injunction may be issued without the requirement of any bond or other security
and enforcement may be obtained by a decree of specific performance.

                                     - 73 -

<PAGE>   80

         10.11 Survival of Representations and Covenants. Except for the
representations and warranties in Sections 5.1, 5.2 and 5.17 which shall survive
for the applicable statute of limitations period, the representations and
warranties and covenants and agreements to be performed by their terms prior to
the Closing contained in this Agreement or in any other document delivered
pursuant to this Agreement shall not survive the consummation of the
transactions contemplated by this Agreement or the termination of this Agreement
in accordance with its terms. Covenants and agreements to be performed by their
terms in whole or in part after the Closing (including covenants and agreements
in Section 9.5(d)) will survive the consummation of the transactions
contemplated by this Agreement in accordance with their terms.

         10.12 No Third Party Beneficiaries. Except as expressly provided in
this Agreement, including the guarantee contemplated by Section 9.4, no Person
other than Purchasers and Seller shall have any right, benefit or obligation
under this Agreement as a third party beneficiary or otherwise.

                  [Remainder of page intentionally left blank]

                                     - 74 -

<PAGE>   81

                          COUNTERPART SIGNATURE PAGE TO
                    PURCHASE AND SALE AGREEMENT AMONG ASCENT
                    ENTERTAINMENT GROUP, INC., ASCENT SPORTS
              HOLDINGS, INC., AND KMS SPORTS, LLC, KMA STICK, LLC,
                        KMN BALL, LLC AND KMC CENTER, LLC
                           DATED AS OF APRIL 24, 2000

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers or managers as of the day
and year first above written.

                                        AEG

                                        ASCENT ENTERTAINMENT GROUP, INC., a
                                        Delaware corporation

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                                        HC

                                        ASCENT SPORTS HOLDINGS, INC., a Delaware
                                        corporation

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

<PAGE>   82

                          COUNTERPART SIGNATURE PAGE TO
                    PURCHASE AND SALE AGREEMENT AMONG ASCENT
                    ENTERTAINMENT GROUP, INC., ASCENT SPORTS
              HOLDINGS, INC., AND KMS SPORTS, LLC, KMA STICK, LLC,
                        KMN BALL, LLC AND KMC CENTER, LLC
                           DATED AS OF APRIL 24, 2000

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers or managers as of the day
and year first above written.

                                        KMS SPORTS, LLC

                                        By:
                                           -------------------------------------
                                                       E. Stanley Kroenke

                                        KMA STICK, LLC

                                        By:
                                           -------------------------------------
                                                       E. Stanley Kroenke

                                        KMN BALL, LLC

                                        By:
                                           -------------------------------------
                                                       E. Stanley Kroenke

                                        KMC CENTER, LLC

                                        By:
                                           -------------------------------------
                                                       E. Stanley Kroenke

<PAGE>   83

                          COUNTERPART SIGNATURE PAGE TO
                    PURCHASE AND SALE AGREEMENT AMONG ASCENT
                    ENTERTAINMENT GROUP, INC., ASCENT SPORTS
              HOLDINGS, INC., AND KMS SPORTS, LLC, KMA STICK, LLC,
                        KMN BALL, LLC AND KMC CENTER, LLC
                           DATED AS OF APRIL 24, 2000

                                        ACKNOWLEDGED AND AGREED WITH
                                        RESPECT TO SECTIONS 3.6, 9.12 and 9.14:

                                        LIBERTY DENVER ARENA LLC

                                        By:      LMC Denver Arena, Inc.,
                                                 its sole member

                                                 By:
                                                    ----------------------------
                                                 Name:
                                                      --------------------------
                                                 Title:
                                                       -------------------------

                                        ACKNOWLEDGED AND AGREED WITH RESPECT
                                        TO SECTIONS 7.2(g), 9.4 and 9.10:

                                        ----------------------------------------
                                        E. Stanley Kroenke

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