Document:

exhibit4_1g.htm

    
      
        

      
Exhibit 4.1(g)

      ____________________

       

      SUPPLEMENTAL
INDENTURE

       

      Dated as
of August 24, 2009

       

      to

       

      INDENTURE

       

      Dated as
of January 29, 2004

       

      among

       

      VAIL
RESORTS, INC., as Issuer,

       

      the
Guarantors named therein, as Guarantors,

       

      and

       

      THE BANK
OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee

       

      ____________________

       

      6 3/4 %
Senior Subordinated Notes due 2014

       

      

      
        
           

        

        
           

          
          

        

        
           

        

      

      SUPPLEMENTAL
INDENTURE, dated as of August 24, 2009, among Vail Resorts, Inc., a Delaware
corporation (the “Issuer”), the
Guarantors named on the signature pages hereto (the “Guarantors”), the
Additional Guarantor named on the signature pages hereto (collectively the
“Additional
Guarantor”), and The Bank of New York Mellon Trust Company, N.A., as
successor trustee to The Bank of New York, as Trustee (the “Trustee”).

       

      WHEREAS,
the Issuer and the Guarantors have heretofore executed and delivered to the
Trustee an Indenture dated as of January 29, 2004 (the “Indenture”) providing
for the issuance of $390,000,000 aggregate principal amount of 6 3/4%
Senior Subordinated Notes due 2014 of the Company (the “Notes”);
and

       

      WHEREAS,
subsequent to the execution of the Indenture and the issuance of $390,000,000
aggregate principal amount of the Notes, the Additional Guarantor has become a
guarantor under the Credit Agreement; and

       

      WHEREAS,
pursuant to and as contemplated by Sections 4.18 and 9.01 of the Indenture, the
parties hereto desire to execute and deliver this Supplemental Indenture for the
purpose of providing for the Additional Guarantor to expressly assume all the
obligations of a Guarantor under the Notes and the Indenture.

       

      NOW,
THEREFORE, in consideration of the above premises, each party agrees, for the
benefit of the other and for the equal and ratable benefit of the Holders of the
Notes, as follows:

       

       

      I.

       

       

      

       

       

      ASSUMPTION
OF GUARANTEES

       

      The
Additional Guarantor, as provided by Section 4.18 of the Indenture, jointly and
severally, hereby unconditionally expressly assumes all of the obligations of a
Guarantor under the Notes and the Indenture to the fullest as set forth in
Article 12 of the Indenture; and the Additional Guarantor may expressly exercise
every right and power of a Guarantor under the Indenture with the same effect as
if it had been named a Guarantor therein.

       

       

      II.

       

       

      

       

       

      MISCELLANEOUS
PROVISIONS

       

      A.           Terms
Defined.

       

      For all
purposes of this Supplemental Indenture, except as otherwise defined or unless
the context otherwise requires, terms used in capitalized form in this
Supplemental Indenture and defined in the Indenture have the meanings specified
in the Indenture.

       

      B.           Indenture.

       

      Except as
amended hereby, the Indenture and the Notes are in all respects ratified and
confirmed and all the terms shall remain in full force and effect.

       

      C.           Governing
Law.

       

      THIS
SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
INTERNAL LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE AND
PERFORMED ENTIRELY WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF
CONFLICT OF LAWS.

       

      D.           Successors.

       

      All
agreements of the Company, the Guarantors and the Additional Guarantor in this
Supplemental Indenture, the Notes and the Guarantees shall bind their respective
successors.  All agreements of the Trustee in this Supplemental
Indenture shall bind its successors.

       

      E.           Duplicate
Originals.

       

      The
parties may sign any number of copies of this Supplemental
Indenture.  Each signed copy shall be an original, but all of them
together shall represent the same agreement.

       

      F.           Trustee
Disclaimer.

       

      The
Trustee is not responsible for the validity or sufficiency of this Supplemental
Indenture.

       

      
        
           

        

        
           

          
          

        

        
           

        

      

      SIGNATURES

       

      IN
WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to
be duly executed, all as of the date first written above.

       

      ISSUER:

       

      
        	
                 
      

              	
                VAIL
      RESORTS, INC.

              

      

       

      
        	 
      	
                By:

              	
                /s/
      Jeffrey W. Jones

              
	 
      	
                Name: 
      Jeffrey W. Jones

              
	 
      	
                Title:  Senior
      Executive Vice President and Chief

              
	 
      	
                Financial
      Officer

              

      

       

      

      
        	
                 
      

              	
                GUARANTORS:

              

      

       

      Arrabelle
at Vail Square, LLC

      Beaver
Creek Associates, Inc.

      Beaver
Creek Consultants, Inc.

      Beaver
Creek Food Services, Inc.

      Breckenridge
Resort Properties, Inc.

      Bryce
Canyon Lodge Company

      Colter
Bay Corporation

      Colter
Bay Convenience Store, LLC

      Colter
Bay General Store, LLC

      Colter
Bay Café Court, LLC

      Colter
Bay Marina, LLC

      Crystal
Peak Lodge of Breckenridge, Inc.

      Delivery
Acquisition, Inc.

      Gillett
Broadcasting, Inc.

      Grand
Teton Lodge Company

      Heavenly
Valley, Limited Partnership

      Jackson
Hole Golf and Tennis Club, Inc.

      Jackson
Hole Golf & Tennis Club Snack Shack, LLC

      Jackson
Lake Lodge Corporation

      Jenny
Lake Lodge, Inc.

      Jenny
Lake Store, LLC

      JHL&S
LLC

      Keystone
Conference Services, Inc.

      Keystone
Development Sales, Inc.

      Keystone
Food and Beverage Company

      Keystone
Resort Property Management Company

      Lodge
Properties, Inc.

      Lodge
Realty, Inc.

      Mesa
Verde Lodge Company

      National
Park Hospitality Company

      One Ski
Hill Place, LLC

      Property
Management Acquisition Corp., Inc.

      RCR Vail,
LLC

      Rockresorts
Arrabelle, LLC

      Rockresorts
Cheeca, LLC

      Rockresorts
Cordillera Lodge Company, LLC

      Rockresorts
Eleven Biscayne, LLC

      Rockresorts
Equinox, Inc.

      Rockresorts
Hotel Jerome, LLC

      Rockresorts
International, LLC

      Rockresorts
LLC

      Rockresorts
LaPosada, LLC

      Rockresorts
Rosario, LLC

      Rockresorts
(St. Lucia) Inc.

      Rockresorts
Ski Tip, LLC

      Rockresorts
Third Turtle, Ltd.

      Rockresorts
Wyoming, LLC

      SOHO
Development, LLC

      SSV
Holdings, Inc.

      Stampede
Canteen, LLC

      Teton
Hospitality Services, Inc.

      The
Chalets at the Lodge at Vail, LLC

      The Vail
Corporation

      The
Village at Breckenridge Acquisition Corp., Inc.

      Vail
Associates Holdings, Ltd.

      Vail
Associates Investments, Inc.

      Vail
Associates Real Estate, Inc.

      Vail Food
Services, Inc.

      Vail
Holdings, Inc.

      Vail
Hotel Management Company, LLC

      Vail
Resorts Development Company

      Vail
Resorts Lodging Company

      Vail
Summit Resorts, Inc.

      Vail
Trademarks, Inc.

      Vail/Arrowhead,
Inc.

      Vail/Beaver
Creek Resort Properties, Inc.

      VAMHC,
Inc.

      Vail RR,
Inc.

      VA Rancho
Mirage I, Inc.

      VA Rancho
Mirage II, Inc.

      VA Rancho
Mirage Resort, L.P.

      VR
Heavenly I, Inc.

      VR
Heavenly II, Inc.

      VR
Holdings, Inc.

      Zion
Lodge Company

      

      

      

      

       

      Each by
its authorized officer or signatory:

       

      
        	 
      	
                By:

              	
                /s/
      Jeffrey W. Jones

              
	 
      	
                Name: 
      Jeffrey W. Jones

              
	 
      	
                Title:  Senior
      Executive Vice President and

              
	 
      	
                Chief
      Financial Officer of each Guarantor listed
above

              

      

       

      

      

      
        
           

        

        
           

          
          

        

        
           

        

      

      ADDITIONAL
GUARANTOR:

       

      ROCKRESORTS
DR, LLC

      a
Delaware limited liability company

      by:
Rockresorts International, LLC, its

            managing
member

      by: Vail
R.R., Inc., its

            managing
member

      
 

      
        	 
      	
                By:

              	
                /s/
      Jeffrey W. Jones

              
	 
      	
                Name: 
      Jeffrey W. Jones

              
	 
      	
                Title:  Senior
      Executive Vice President and

              
	 
      	
                Chief
      Financial Officer

              

      

       

      
        	
                 
      

              	
                TRUSTEE:

              

      

       

      
        	
                 
      

              	
                THE
      BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as
  Trustee

              

      

       

      
        	
                 
      

              	
                By:

              	
                /s/
      Alex Briffett

              
	 
      	
                Name: 
      John A. (Alex) Briffett

              
	 
      	
                Title:  Senior
      Associateexhibit10_8a.htm

    
      
        
Exhibit 10.8(a) 

      

       

                                                                  CUSIP
NUMBER:                                                                                                           

       

      
        

         

        

      

      

       

      FOURTH
AMENDED AND RESTATED CREDIT AGREEMENT

       

      Dated as
of January 28, 2005

       

      among

       

      THE
VAIL CORPORATION

      (d/b/a “Vail Associates, Inc.”)

      as
Borrower

       

      BANK
OF AMERICA, N.A.

      as
Administrative Agent

      

      U.S.
BANK NATIONAL ASSOCIATION

      WELLS
FARGO BANK, NATIONAL ASSOCIATION

      as
Co-Syndication Agents

      

      DEUTSCHE
BANK TRUST COMPANY AMERICAS

      LASALLE
BANK NATIONAL ASSOCIATION

      as
Co-Documentation Agents

      

      and

      

      The
Lenders Party Hereto

      

      
        

         

        

      

      

      

      

      BANC OF AMERICA SECURITIES
LLC,

      as Sole
Lead Arranger and Sole Book Manager

      
        
           

        

        
           

          
          

        

        
           

        

      

       

      TABLE OF
CONTENTS

       

       

      Page

       

       

      SECTION 1
DEFINITIONS AND TERMS. 1

       

       

      1.1
Definitions. 1

       

       

      1.2
Number and Gender of Words. 24

       

       

      1.3
Accounting Principles. 25

       

       

      1.4
Rounding. 26

       

       

      1.5
References to Agreements and Laws. 26

       

       

      1.6 Times
of Day. 26

       

       

      1.7 L/C
Amounts. 26

       

       

      SECTION 2
COMMITMENT. 26

       

       

      2.1
Credit Facility. 26

       

       

      2.2 Loan
Procedure. 26

       

       

      2.3 L/C
Subfacility. 28

       

       

      2.4 Swing
Line Loans. 36

       

       

      2.5
Increase in Total Commitment. 38

       

       

      SECTION 3
TERMS OF PAYMENT. 39

       

       

      3.1 Notes
and Payments. 39

       

       

      3.2
Interest and Principal Payments; Prepayments; Voluntary Commitment Reductions.
40

       

       

      3.3
Interest Options. 42

       

       

      3.4
Quotation of Rates. 42

       

       

      3.5
Default Rate. 42

       

       

      3.6
Interest Recapture. 42

       

       

      3.7
Interest Calculations. 42

       

       

      3.8
Maximum Rate. 42

       

       

      3.9
Interest Periods. 43

       

       

      3.10
Order of Application. 43

       

       

      3.11
Sharing of Payments, Etc. 44

       

       

      3.12
Booking Loans. 44

       

       

      SECTION 4
TAXES, YIELD PROTECTION, AND ILLEGALITY 44

       

       

      4.1
Taxes. 44

       

       

      4.2
Illegality. 46

       

       

      4.3
Inability to Determine Rates. 46

       

       

      4.4
Increased Costs; Reserves on Revolver Loans that are LIBOR Loans.
47

       

       

      4.5
Compensation for Losses. 48

       

       

      4.6
Mitigation Obligations; Replacement of Lenders. 48

       

       

      4.7
Survival. 49

       

       

      SECTION 5
FEES. 49

       

       

      5.1
Treatment of Fees. 49

       

       

      5.2 Fee
Letter. 49

       

       

      5.3 L/C
Fees. 49

       

       

      5.4
Commitment Fee. 50

       

       

      SECTION 6
GUARANTY AND SECURITY. 50

       

       

      6.1
Guaranty. 50

       

       

      6.2
Collateral. 50

       

       

      6.3
Additional Collateral and Guaranties. 50

       

       

      6.4
Additional Documents or Information. 51

       

       

      SECTION 7
CONDITIONS PRECEDENT. 51

       

       

      7.1
Initial Advance. 51

       

       

      7.2 Each
Advance. 52

       

       

      SECTION 8
REPRESENTATIONS AND WARRANTIES. 53

       

       

      8.1
Regulation U. 53

       

       

      8.2
Corporate Existence, Good Standing, Authority and Compliance. 53

       

       

      8.3
Subsidiaries. 53

       

       

      8.4
Authorization and Contravention. 54

       

       

      8.5
Binding Effect. 54

       

       

      8.6
Financial Statements; Fiscal Year. 54

       

       

      8.7
Litigation. 54

       

       

      8.8
Taxes. 54

       

       

      8.9
Environmental Matters. 55

       

       

      8.10
Employee Plans. 55

       

       

      8.11
Properties and Liens. 55

       

       

      8.12
Government Regulations. 56

       

       

      8.13
Transactions with Affiliates. 56

       

       

      8.14
Debt. 56

       

       

      8.15
Material Agreements. 56

       

       

      8.16
Labor Matters. 56

       

       

      8.17
Solvency. 57

       

       

      8.18
Intellectual Property. 57

       

       

      8.19 Full
Disclosure. 57

       

       

      8.20
Insurance. 57

       

       

      8.21
Compliance with Laws. 57

       

       

      8.22
Senior Debt. 57

       

       

      SECTION 9
AFFIRMATIVE COVENANTS. 57

       

       

      9.1 Items
to be Furnished. 57

       

       

      9.2 Use
of Proceeds. 59

       

       

      9.3 Books
and Records. 59

       

       

      9.4
Inspections. 59

       

       

      9.5
Taxes. 60

       

       

      9.6
Payment of Obligations. 60

       

       

      9.7
Maintenance of Existence, Assets, and Business. 60

       

       

      9.8
Insurance. 60

       

       

      9.9
Environmental Laws. 61

       

       

      9.10
Subsidiaries. 61

       

       

      9.11
Designation and Re-designation of Subsidiaries. 61

       

       

      SECTION
10 NEGATIVE COVENANTS. 62

       

       

      10.1
Taxes. 62

       

       

      10.2
Payment of Obligations. 62

       

       

      10.3
Employee Plans. 62

       

       

      10.4
Debt. 62

       

       

      10.5
Liens. 62

       

       

      10.6
Transactions with Affiliates. 63

       

       

      10.7
Compliance with Laws and Documents. 63

       

       

      10.8
Loans, Advances and Investments. 63

       

       

      10.9
Distributions. 65

       

       

      10.10
Sale of Assets. 66

       

       

      10.11
Acquisitions, Mergers, and Dissolutions. 66

       

       

      10.12
Assignment. 68

       

       

      10.13
Fiscal Year and Accounting Methods. 68

       

       

      10.14 New
Businesses. 68

       

       

      10.15
Government Regulations. 68

       

       

      10.16
Burdensome Agreements. 68

       

       

      10.17 Use
of Proceeds. 68

       

       

      SECTION
11 FINANCIAL COVENANTS. 68

       

       

      11.1
Maximum Leverage Ratios. 69

       

       

      11.2
Minimum Fixed Charge Coverage Ratio. 69

       

       

      11.3
Minimum Net Worth. 69

       

       

      11.4
Interest Coverage Ratio. 70

       

       

      11.5
Capital Expenditures. 70

       

       

      SECTION
12 DEFAULT. 70

       

       

      12.1
Payment of Obligation. 70

       

       

      12.2
Covenants. 70

       

       

      12.3
Debtor Relief. 70

       

       

      12.4
Judgments and Attachments. 70

       

       

      12.5
Government Action. 71

       

       

      12.6
Misrepresentation. 71

       

       

      12.7
Ownership. 71

       

       

      12.8
Default Under Other Agreements. 71

       

       

      12.9
Subordinated Debt. 71

       

       

      12.10
Validity and Enforceability of Loan Papers. 71

       

       

      12.11
Employee Plans. 71

       

       

      SECTION
13 RIGHTS AND REMEDIES. 72

       

       

      13.1
Remedies Upon Default. 72

       

       

      13.2
Company Waivers. 72

       

       

      13.3
Performance by Administrative Agent. 72

       

       

      13.4 Not
in Control. 72

       

       

      13.5
Course of Dealing. 73

       

       

      13.6
Cumulative Rights. 73

       

       

      13.7
Application of Proceeds. 73

       

       

      13.8
Diminution in Value of Collateral. 73

       

       

      13.9
Certain Proceedings. 73

       

       

      SECTION
14 ADMINISTRATIVE AGENT. 73

       

       

      14.1
Appointment and Authority. 73

       

       

      14.2
Delegation of Duties. 73

       

       

      14.3
Rights as a Lender. 74

       

       

      14.4
Reliance by Administrative Agent. 74

       

       

      14.5
Exculpatory Provisions. 74

       

       

      14.6
Resignation as Administrative Agent. 75

       

       

      14.7
Non-Reliance on Administrative Agent and Other Lenders. 76

       

       

      14.8
Administrative Agent May File Proofs of Claim. 76

       

       

      14.9
Collateral and Guaranty Matters. 76

       

       

      14.10
Financial Hedges 78

       

       

      14.11
Bond L/Cs and Bond Documents. 78

       

       

      14.12 No
Other Duties, Etc. 79

       

       

      SECTION
15 MISCELLANEOUS. 79

       

       

      15.1
Headings. 79

       

       

      15.2
Nonbusiness Days; Time. 79

       

       

      15.3
Notices and Other Communications; Facsimile Copies. 79

       

       

      15.4
Expenses; Indemnity; Damage Waiver. 81

       

       

      15.5
Exceptions to Covenants; Conflict with Agreement. 82

       

       

      15.6
Governing Law. 82

       

       

      15.7
Severability. 83

       

       

      15.8
Waiver of Jury Trial. 83

       

       

      15.9
Amendments, Etc. 83

       

       

      15.10
Counterparts; Integration; Effectiveness. 84

       

       

      15.11
Successors and Assigns; Participation. 85

       

       

      15.12
Payments Set Aside. 87

       

       

      15.13
Right of Setoff. 88

       

       

      15.14
Replacement of Lenders. 88

       

       

      15.15
Confidentiality. 88

       

       

      15.16 USA
PATRIOT Act Notice. 89

       

       

      15.17
Survival of Representations and Warranties. 89

       

       

      15.18
ENTIRE AGREEMENT. 89

       

       

      15.19
Designation as Senior Debt. 90

       

       

      15.20
Restatement of Existing Agreement. 90

       

       

      SCHEDULES
AND EXHIBITS

       

       

      Schedule
1 Parties, Addresses, Commitments, and Wiring Information

       

       

      Schedule
2.3 Existing Letters of Credit and Scheduled Debt

       

       

      Schedule
7.1 Post-Closing Items and Conditions

       

       

      Schedule
8.2 Corporate Organization and Structure

       

       

      Schedule
8.7 Material Litigation Summary

       

       

      Schedule
8.9 Material Environmental Matters

       

       

      Schedule
8.11 Critical Assets

       

       

      Schedule
8.13 Non-Standard Transactions with Affiliates

       

       

      Schedule
10.8 Loans, Advances and Investments

       

       

      Schedule
10.9 Permitted Distributions

       

       

      Schedule
10.16 Existing Burdensome Agreements

       

       

      Schedule
15.11 Processing and Recordation Fees

       

       

      Exhibit
A-1 Form of Revolver Note

       

       

      Exhibit
A-2 Form of Swing Line Note

       

       

      Exhibit
B-1 Form of Guaranty

       

       

      Exhibit
B-2 Form of Confirmation of Guaranty

       

       

      Exhibit
C-1 Form of Loan Notice

       

       

      Exhibit
C-2 Form of Swing Line Loan Notice

       

       

      Exhibit D
Form of Compliance Certificate

       

       

      Exhibit E
Form of Assignment and Assumption

       

       

      Exhibit
F-1 Form of Pledge Agreement

       

       

      Exhibit
F-2 Form of Confirmation of Pledge Agreement

       

       

      FOURTH
AMENDED AND RESTATED CREDIT AGREEMENT

       

      This
Fourth Amended and Restated Credit Agreement is entered into as of January 28,
2005, among The Vail Corporation, a Colorado corporation doing business as
“Vail Associates, Inc.”
(“Borrower”), Lenders (defined below),
and Bank of America, N.A., as Administrative Agent for itself and the other
Lenders.

       

      RECITALS

       

      A.           Borrower,
certain lenders, and NationsBank of Texas, N.A., as Agent, were parties to a
Credit Agreement dated as of December 19, 1997 (as amended, the “Original
Agreement”).

       

      B.           The
Original Agreement was amended and restated by that certain Amended and Restated
Credit Agreement among Borrower, certain lenders and NationsBank, N.A.
(successor by merger to NationsBank of Texas, N.A.), as Agent, dated as of May
1, 1999 (as amended, the “Amended and
Restated Agreement”).

       

      C.           Effective
July 5, 1999, NationsBank, N.A. changed its name to Bank of America, N.A., and
effective July 23, 1999, Bank of America, N.A. merged with and into Bank of
America National Trust and Savings Association, which then changed its name to
Bank of America, N.A.

       

      D.           The
Amended and Restated Agreement was amended and restated by that certain Second
Amended and Restated Credit Agreement among Borrower, certain lenders and Bank
of America, N.A., as Agent, dated as of November 13, 2001 (as amended, the “Second Amended
and Restated Agreement”).

       

      E.           The
Second Amended and Restated Agreement was amended and restated by that certain
Third Amended and Restated Revolving Credit and Term Loan Agreement among
Borrower, certain lenders and Bank of America, N.A., as Administrative Agent,
dated as of June 10, 2003 (as amended, the “Existing
Agreement”).

       

      F.           The
parties wish to amend and restate the Existing Agreement on the terms and
conditions of this Agreement.

       

      In
consideration of the mutual covenants contained herein, and for other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Existing Agreement is hereby amended and restated to read in
its entirety as follows:

       

      
        	
                SECTION
      1                        

              	
                DEFINITIONS
      AND TERMS.

              

      

       

      
        	
                1.1  

              	
                Definitions.

              

      

       

      Additional
Critical Assets means Critical Assets acquired by the Companies after the
Third Agreement Date.

       

      Adjusted EBITDA
means, without duplication, for any period of calculation, the sum of (a) Resort EBITDA and
(b) EBITDA of the Restricted Companies related to real estate activities in an
amount not greater than 33% of Adjusted EBITDA.

       

      Administrative
Agent means Bank of America, N.A., a national banking association, and
its successor as administrative agent for Lenders under this
Agreement.

       

      Administrative
Agent’s Office
means Administrative Agent’s address and, as appropriate, account as set forth
on Schedule
1, or such other address or account as Administrative Agent may from time
to time notify to Borrower and Lenders.

       

      Administrative
Questionnaire means an Administrative Questionnaire in a form supplied by
Administrative Agent.

       

      Affiliate
means with respect to any Person (the “Relevant
Person”) (a) any
other Person that directly, or indirectly through one or more intermediaries,
controls the relevant Person (a “Controlling
Person”), or (b)
any Person (other than
the Relevant Person) which is controlled by or is under common control with a
Controlling Person.  As used herein, the term “control” means possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of a Person, whether through the ownership of voting
securities, by contract or otherwise.

       

      Agreement
means this Fourth Amended and Restated Credit Agreement, and all
schedules and exhibits thereto, as renewed, extended, amended, supplemented, or
restated from time to time.

       

      Applicable Margin
means, for any day, the margin of interest over the Base Rate or LIBOR,
as the case may be, that is applicable when any interest rate is determined
under this Agreement.  The Applicable Margin is subject to adjustment
(upwards or downwards, as appropriate) based on the ratio of Funded Debt to
Adjusted EBITDA, as follows:

       

      
        	 	
                Ratio
      of Funded Debt to Adjusted EBITDA

              	
                Applicable
      Margin for

                 LIBOR
      Loans

              	
                Applicable
      Margin

                Base
      Rate Loans

              
	
                I

              	
                Less
      than 2.50 to 1.00

              	
                1.00%

              	
                0.00%

              
	
                II

              	
                Greater
      than or equal to 2.50 to 1.00, but less than 3.00 to 1.00

              	
                1.25%

              	
                0.00%

              
	
                III

              	
                Greater
      than or equal to 3.00 to 1.00, but less than 3.50 to 1.00

              	
                1.50%

              	
                0.25%

              
	
                IV

              	
                Greater
      than or equal to 3.50 to 1.00, but less than 4.00 to 1.00

              	
                1.75%

              	
                0.50%

              
	
                V

              	
                Greater
      than or equal to 4.00 to 1.00

              	
                2.00%

              	
                1.00%

              

      

      

      Prior to
Administrative Agent’s receipt of the Companies’ consolidated Financial
Statements for the Companies’ fiscal quarter ended January 31, 2005, the ratio
of Funded Debt to Adjusted EBITDA shall be fixed at Level
IV.  Thereafter, the ratio of Funded Debt to Adjusted EBITDA shall be
calculated on a consolidated basis for the Companies in accordance with GAAP for
the most recently completed fiscal quarter of the Companies for which results
are available.  The ratio shall be determined from the Current
Financials and any related Compliance Certificate and any change in the
Applicable Margin resulting from a change in such ratio shall be effective as of
the date of delivery of such Compliance Certificate.  However, if
Borrower fails to furnish to Administrative Agent the Current Financials and any
related Compliance Certificate when required pursuant to Section
9.1, then the ratio shall be deemed to be at Level V until Borrower
furnishes the required Current Financials and any related Compliance Certificate
to Administrative Agent.  Furthermore, if the Companies’ audited
Financial Statements delivered to Administrative Agent for any fiscal year
pursuant to Section 9.1(a)
result in a different ratio, such revised ratio (whether higher or lower) shall
govern effective as of the date of such delivery.  For purposes of
determining such ratio, Adjusted EBITDA for any fiscal quarter shall include on
a pro forma basis all
EBITDA of the Restricted Companies for such period relating to assets acquired
in accordance with this Agreement (including, without limitation, Restricted
Subsidiaries formed or acquired in accordance with Section 9.10
hereof, and Unrestricted Subsidiaries re-designated as Restricted
Subsidiaries in accordance with Section
9.11(b) hereof) during such period, but shall exclude on a pro forma basis all EBITDA of
the Restricted Companies for such period relating to any such assets disposed of
in accordance with this Agreement during such period (including, without
limitation, Restricted Subsidiaries re-designated as Unrestricted Subsidiaries
in accordance with Section
9.11(a) hereof).

       

      Applicable
Percentage means, for any day, the commitment fee percentage applicable
under Section
5.4 when commitment fees are determined under this
Agreement.  The Applicable Percentage is subject to adjustment
(upwards or downwards, as appropriate) based on the ratio of Funded Debt to
Adjusted EBITDA, as follows:

       

      
        	
                Level

              	
                Ratio
      of Funded Debt to Adjusted EBITDA

              	
                 

                Applicable
      Percentage

              
	
                I

              	
                Less
      than 2.50 to 1.00

              	
                0.175%

              
	
                II

              	
                Greater
      than or equal to 2.50 to 1.00, but less than 3.00 to 1.00

              	
                0.200%

              
	
                III

              	
                Greater
      than or equal to 3.00 to 1.00, but less than 3.50 to 1.00

              	
                0.250%

              
	
                IV

              	
                Greater
      than or equal to 3.50 to 1.00, but less than 4.00 to 1.00

              	
                0.250%

              
	
                V

              	
                Greater
      than or equal to 4.00 to 1.00

              	
                0.375%

              

      

      

       

      Prior to
Administrative Agent’s receipt of the Companies’ consolidated Financial
Statements for the Companies’ fiscal quarter ended January 31, 2005, the ratio
of Funded Debt to Adjusted EBITDA (which shall be determined as described in the
definition of “Applicable
Margin”) shall be fixed at Level IV.

       

      Approved
Fund means any Fund that is administered or managed by (a) a Lender, (b)
an Affiliate of a Lender, or (c) an entity or an Affiliate of an entity that
administers or manages a Lender.

       

      Arranger
means Banc of America Securities LLC, in its capacity as sole lead arranger and
sole book manager.

       

      Assignee
Group means two or more Eligible Assignees that are Affiliates of one
another or two or more Approved Funds managed by the same investment
advisor.

       

      Assignment and
Assumption means an Assignment and Assumption substantially in the form
of Exhibit
E hereto.

       

      Attorney
Costs has the meaning set forth in Section
7.1(m).

       

      Auto-Extension
L/C has the meaning set forth in Section
2.3(b)(iii).

       

      Bank of America
means Bank of America, N.A., a national banking association, in its
individual capacity and not as Administrative Agent, and its permitted
successors and assigns.

       

      Base Rate
means, for any day, a fluctuating rate per annum equal to the higher of
(a) the Federal Funds Rate plus 1/2 of 1% and (b) the
rate of interest in effect for such day as publicly announced from time to time
by Bank of America as its “prime rate.”  The
“prime rate” is a rate
set by Bank of America based upon various factors including Bank of America’s
costs and desired return, general economic conditions and other factors, and is
used as a reference point for pricing some loans, which may be priced at, above,
or below such announced rate.  Any change in such rate announced by
Bank of America shall take effect at the opening of business on the day
specified in the public announcement of such change.

       

      Base Rate Loan
means a Loan bearing interest at the sum of the Base Rate plus the Applicable
Margin.

       

      BBA LIBOR
means the British Bankers Association LIBOR Rate.

       

      BC Housing
L/Cs means, collectively, the (a) $9,232,709 irrevocable transferable L/C
expiring October 31, 2005, issued by the applicable L/C Issuer to Colorado
National Bank and any successor thereto as Trustee under the 1997 Trust
Indenture with Eagle County, Colorado, as Issuer, relating to $10,600,000 of
Eagle County, Colorado, Taxable Housing Facilities Revenue Bonds (BC Housing,
LLC Project) Series 1997A, and (b) $1,531,250 irrevocable transferable L/C
expiring June 15, 2005, issued by the applicable L/C Issuer to Colorado National
Bank and any successor thereto as Trustee under the 1997 Trust Indenture with
Eagle County, Colorado, as Issuer, relating to $10,600,000 of Eagle County,
Colorado, Taxable Housing Facilities Revenue Bonds (BC Housing, LLC Project)
Series 1997B, under the terms of which such Trustee is, subject to the terms and
conditions set forth therein, entitled to draw, with respect to such Bonds, up
to (x) amounts sufficient to pay (i) the principal of such Bonds when due, or
(ii) the portion of the purchase price of such Bonds tendered or deemed tendered
for purchase in accordance with such Indenture and not subsequently remarketed
corresponding to the principal amount of such Bonds, plus (y) amounts equal to
approximately 35 days of accrued interest on such Bonds at 15% per annum (with
respect to Series A) and 50 days of accrued interest on such Bonds (with respect
to Series B) to pay (i) interest on such Bonds when due, or (ii) the portion of
the purchase price of such Bonds tendered or deemed tendered for purchase in
accordance with such Indenture and not subsequently remarketed corresponding to
accrued interest, as each such L/C may be renewed, extended, increased or
amended from time to time in accordance with the Loan Papers.

       

      Bond Documents
means (a) when used in connection with any Bond L/C, those certain Bonds
or other certificates of indebtedness with respect to which such Bond L/C has
been issued as credit support, together with any remarketing agreement, trust
indenture, purchased bond custody agreement, funding agreement, pledge
agreement, and other documents executed pursuant to or in connection with such
bonds or other certificates of indebtedness, and all amendments or supplements
thereto, and (b) in all other cases, collectively, all Bond Documents as defined
in the preceding clause (a)
relating to Bond L/Cs then outstanding.

       

      Bond L/Cs
means all L/Cs issued by any L/C Issuer at the request of (a) Borrower
and any Housing District in support of Bonds issued by such Housing District, or
(b) Borrower and any Metro District in support of Bonds issued by such Metro
District, which L/Cs satisfy the conditions set forth in Section 2.3(j)(i)
herein, and renewals or extensions thereof, including, without limitation, the
BC Housing L/Cs, the Breckenridge Terrace L/Cs, the Tarnes L/Cs, the Tenderfoot
Housing L/Cs, and the Holland Creek L/C.

       

      Bond Purchase
Drawing has the meaning set forth in Section
2.3(j)(ii).

       

      Bond
Rights has the meaning set forth in Section
2.3(j)(iv).

       

      Bonds
means revenue bonds issued by (a) any Housing District or other Person
for the purpose of financing, directly or indirectly, the development of housing
projects designated for employees of the Companies, or (b) any Metro District or
other Person for the purpose of financing, directly or indirectly,
the  operation, construction, and maintenance of infrastructure
projects, which projects are related to the Companies’ business activities in
the region in which the projects are being developed, and for which a Restricted
Company has issued credit support in the form of a Bond L/C for such revenue
bonds.

       

      Borrower
is defined in the preamble to this Agreement.

       

      Borrower
Materials has the meaning specified in Section
9.1.

       

      Breckenridge
Terrace L/Cs means, collectively, the (a) $15,198,459 irrevocable
transferable L/C expiring October 31, 2005, issued by the applicable L/C Issuer
to U.S. Bank National Association and any successor thereto as Trustee under the
1999 Trust Indenture with Breckenridge Terrace LLC as Issuer, relating to
approximately $19,980,000 of Breckenridge Terrace LLC Taxable Housing Facilities
Revenue Notes (Breckenridge Terrace Project), Series 1999A, and (b) $5,108,334
irrevocable transferable L/C expiring April 29, 2005, issued by the applicable
L/C Issuer to U.S. Bank National Association and any successor thereto as
Trustee under the 1999 Trust Indenture with Breckenridge Terrace LLC as Issuer,
relating to approximately $19,980,000 of Breckenridge Terrace LLC Taxable
Housing Facilities Revenue Notes (Breckenridge Terrace Project), Series 1999B,
under the terms of which such Trustee is, subject to the terms and conditions
set forth therein, entitled to draw up to (x) amounts sufficient to pay (i) the
principal of such Notes when due, or (ii) the portion of the purchase price of
such Notes tendered or deemed tendered for purchase in accordance with such
Indenture and not subsequently remarketed corresponding to the principal amount
of such Notes, plus (y)
amounts equal to approximately 35 days of accrued interest on such Notes at 15%
per annum (with respect to Series A) and 52 days of accrued interest on such
Notes (with respect to Series B) to pay (i) interest on such Notes when due, or
(ii) the portion of the purchase price of such Notes tendered or deemed tendered
for purchase in accordance with such Indenture and not subsequently remarketed
corresponding to accrued interest, as each such L/C may be renewed, extended,
increased, or amended from time to time in accordance with the Loan
Papers.

       

      Business
Day means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to be closed under the Laws of, or are in fact
closed in, Dallas, Texas or New York, New York, or if such day relates to any
LIBOR Loan, means any such day on which dealings in Dollar deposits are
conducted by and between banks in the London interbank eurodollar
market.

       

      Capital Lease
means any capital lease or sublease that has been (or under GAAP should
be) capitalized on a balance sheet.

       

      Change in
Law means the occurrence, after the Closing Date, of any of the
following: (a) the adoption or taking effect of any Law, rule, regulation, or
treaty, (b) any change in any Law, rule, regulation, or treaty or in the
administration, interpretation, or application thereof by any Governmental
Authority, or (c) the making or issuance of any request, guideline, or directive
(whether or not having the force of Law) by any Governmental
Authority.

       

      Change of Control
Transaction means an event or series of events by which:

       

      (a)           any
“person” or “group” (as such terms are
used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but
excluding any employee benefit plan of such person or its subsidiaries, and any
person or entity acting in its capacity as trustee, agent, or other fiduciary or
administrator of any such plan) becomes the “beneficial owner” (as defined
in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934), directly or
indirectly, of 40% or more of the equity securities of VRI entitled to vote for
members of the board of directors or equivalent governing body of VRI on a
fully-diluted basis;

       

      (b)           during
any period of 24 consecutive months, a majority of the members of the board of
directors or other equivalent governing body of VRI cease to be composed of
individuals (i) who were members of that board or equivalent governing body on
the first day of such period, (ii) whose election or nomination to that board or
equivalent governing body was approved by individuals referred to in clause (i)
above constituting at the time of such election or nomination at least a
majority of that board or equivalent governing body, or (iii) whose election or
nomination to that board or other equivalent governing body was approved by
individuals referred to in clauses
(i) and (ii) above
constituting at the time of such election or nomination at least a majority of
that board or equivalent governing body (excluding, in the case of both clause
(ii) and clause
(iii), any individual whose initial nomination for, or assumption of
office as, a member of that board or equivalent governing body occurs as a
result of an actual or threatened solicitation of proxies or consents for the
election or removal of one or more directors by any person or group other than a
solicitation for the election of one or more directors by or on behalf of the
board of directors); or

       

      (c)           any
Person or two or more Persons acting in concert shall have acquired, by contract
or otherwise, control over the equity securities of VRI entitled to vote for
members of the board of directors or equivalent governing body of VRI on a
fully-diluted basis (and taking into account all such securities that such
Person or group has the right to acquire pursuant to any option right)
representing 51% or more of the combined voting power of such
securities.

       

      Closing
Date means the first date that all conditions precedent set forth in
Section
7.1 have been satisfied or waived in accordance with such
Section.

       

      Code means
the Internal Revenue Code of
1986, as amended from time to time, and related rules and regulations
from time to time in effect.

       

      Collateral
is defined in Section
6.2.

       

      Commitment means,
as to each Lender, its obligation to (a) make Revolver Loans to Borrower
pursuant to Section
2.1, (b) purchase participations in the L/C Exposure, and (c) purchase
participations in Swing Line Loans, in an aggregate principal amount at any one
time outstanding not to exceed the amount set forth opposite such Lender’s name
on Schedule
1 or in the Assignment and Assumption pursuant to which such Lender
becomes a party hereto, as applicable (which amount is subject to increase,
reduction, or cancellation in accordance with the Loan Papers).

       

      Commitment
Percentage means with respect to any Lender at any time, the percentage
(carried out to the ninth decimal place) of the Total Commitment represented by
such Lender’s Commitment at such time.  If the commitment of each
Lender to make Loans and the obligation of each L/C Issuer to make L/C Credit
Extensions have been terminated pursuant to Section
13.1 or if the Total Commitment has expired, then the Commitment
Percentage of each Lender shall be determined based on the Commitment Percentage
of such Lender most recently in effect, giving effect to any subsequent
assignments.  The initial Commitment Percentage of each Lender is set
forth opposite the name of such Lender on Schedule 1
or in the Assignment and Assumption pursuant to which such Lender becomes a
party hereto, as applicable.

       

      Commitment
Usage means, at the time of any determination thereof, the sum of (a) the aggregate
Outstanding Amount of all Loans, plus, without duplication, (b) the
L/C Exposure.

       

      Companies
means VRI and each of VRI’s Restricted and Unrestricted Subsidiaries now
or hereafter existing, and Company
means any of the Companies.

       

      Compliance
Certificate means a certificate substantially in the form of Exhibit D
and signed by Borrower’s Chief Financial Officer, together with the
calculation worksheet described therein.

       

      Confirmation of
Guaranty means that certain Confirmation of Guaranty dated of even date
herewith, executed and delivered by the Guarantors party thereto in favor of
Administrative Agent, for the benefit of Lenders, substantially in the form of
Exhibit B-2
hereto.

       

      Confirmation of
Pledge Agreement means a Confirmation of Pledge Agreement dated of even
date herewith, executed and delivered by any Restricted Company that executed a
Pledge Agreement under the Existing Agreement in favor of Administrative Agent,
for the benefit of Lenders, substantially in the form of Exhibit F-2
hereto.

       

      Critical
Assets means all improvements, assets, and Rights essential to ski resort
operations owned or acquired by any Company.

       

      Current
Financials means, initially, the consolidated Financial Statements of the
Companies for the period ended October 31, 2004, and thereafter, the
consolidated Financial Statements of the Companies most recently delivered to
Administrative Agent under Sections 7.1,
9.1(a) or 9.1(b), as
the case may be.

       

      Daily Floating
LIBOR means, for any day, a fluctuating rate per annum equal to BBA
LIBOR, as published by Reuters (or other commercially available source providing
quotations of BBA LIBOR as designated by Administrative Agent from time to time)
at approximately 11:00 a.m., London time, on such day for Dollar deposits with a
term equivalent to one (1) month.  If such rate is not available at
such time for any reason, then Daily Floating LIBOR shall be the rate per annum
determined by Administrative Agent to be the rate at which deposits in Dollars
in same day funds in the approximate amount of the Daily Floating LIBOR Loan
being made by Bank of America and with a term equivalent to one (1) month would
be offered by Bank of America’s London Branch to major banks in the London
interbank eurodollar market at their request at approximately 11:00 a.m. (London
time) on such day.  Notwithstanding the foregoing, Daily Floating
LIBOR on any day that is not a Business Day with respect to LIBOR Loans shall be
Daily Floating LIBOR determined on the immediately preceding Business Day for
LIBOR Loans.

       

      Daily Floating
LIBOR Loan means a Loan at such time as it is made and/or maintained at a
rate of interest based upon Daily Floating LIBOR.

       

      Debt of
any Person means at any date, without duplication (and calculated in accordance
with GAAP), (a) all obligations of such Person for borrowed money (whether as a
direct obligation on a promissory note, bond, zero coupon bond, debenture or
other similar instrument, or as an unfulfilled reimbursement obligation on a
drawn letter of credit or similar instrument, or otherwise), including, without
duplication, all Capital Lease obligations (other than the interest
component of such obligations) of such Person, (b) all obligations of such
Person to pay the deferred purchase price of property or services, other than (i) obligations
under employment contracts or deferred employee compensation plans and (ii)
trade accounts payable and other expenses or payables arising in the ordinary
course of business, (c) all Debt of others secured by a Lien on any asset of
such Person (or for which the holder of the Debt has an existing Right,
contingent or otherwise, to be so secured), whether or not such Debt is assumed
by such Person, and (d) all guarantees and other contingent obligations (as a
general partner or otherwise) of such Person with respect to Debt of
others.

       

      Debtor Relief
Laws means the Bankruptcy Reform Act of
1978, as amended from time to time, and all other applicable liquidation,
conservatorship, bankruptcy, moratorium, rearrangement, receivership,
insolvency, reorganization, suspension of payments or similar Laws affecting
creditors’ Rights from time to time in effect.

       

      Default is defined in Section
12.

       

      Default Rate
means, on any day, an annual rate of interest equal from day to day to
the lesser of
(a) the then-existing Base Rate plus the Applicable Margin
for Base Rate Loans plus 2%, and (b) the
Maximum Rate.

       

      Defaulting
Lender means any Lender that (a) has failed to fund any portion of the
Revolver Loans, participations in L/C Exposure, or participations in Swing Line
Loans required to be funded by it hereunder within one Business Day of the date
required to be funded by it hereunder, (b) has otherwise failed to pay over to
Administrative Agent or any other Lender any other amount required to be paid by
it hereunder within one Business Day of the date when due, unless the subject of
a good faith dispute, or (c) has been deemed insolvent or become the subject of
a bankruptcy or insolvency proceeding.

       

      Disqualified
Equity Interests means capital stock or other Equity Interests that by
their terms (or by the terms of any debt or security into which they are
convertible or for which they are exchangeable) or upon the happening of any
event, mature or are mandatorily redeemable pursuant to a sinking fund, demand
of the holder, or otherwise, in whole or in part, including, without limitation,
any Equity Interests issued in exchange for or in redemption of any Subordinated
Debt.

       

      Distribution
means, with respect to any shares of any capital stock or other Equity
Interests issued by VRI or any Subsidiary, (a) the retirement, redemption,
purchase, or other acquisition for value of those securities or Equity Interests
by such Person (including, without limitation, in connection with the merger or
consolidation of any Company), (b) the payment of any dividend (whether in cash,
securities, or property) on or with respect to those securities or Equity
Interests by such Person (including, without limitation, in connection with the
merger or consolidation of any Company), (c) any loan or advance by that Person
to, or other investment by that Person in, the holder of any of those
securities, and (d) any other payment by that Person with respect to those
securities or Equity Interests, including any sinking fund or general deposit,
on account of the purchase, redemption, retirement, acquisition, cancellation,
or termination of any such securities or Equity Interests, or on account of any
return of capital to such Person’s stockholders, partners, or members (or the
equivalent Person), if any.

       

      Dollars
and $ mean
lawful money of the United States.

       

      EBITDA
means, for any period of calculation with respect to any Person (or group
of Persons whose Financial Statements are consolidated in accordance with GAAP),
Net Income before interest expense, Taxes based on or measured by income, and
Non-Cash Operating Charges, in each case to the extent deducted in determining
Net Income.

       

      Eligible
Assignee means (a) a Lender; (b) an Affiliate of a Lender; (c) an
Approved Fund; and (d) any other Person (other than a natural person) approved
by (i) Administrative Agent, the L/C Issuers, and the Swing Line Lenders, and
(ii) unless a Default has occurred and is continuing, Borrower (each such
approval not to be unreasonably withheld or delayed); provided that notwithstanding
the foregoing, Eligible
Assignee shall not include Borrower, any of Borrower’s Affiliates, or the
Companies.

       

      Employee Plan
means an employee pension benefit plan covered by Title IV of ERISA and
established or maintained by any Company.

       

      Environmental Law
means any Law that relates to the pollution or protection of ambient air,
water or land or to Hazardous Substances.

       

      Equity
Interests means, with respect to any Person, all of the shares of capital
stock of (or other ownership or profit interests in) such Person, all of the
warrants, options, or other rights for the purchase or acquisition from such
Person of shares of capital stock of (or other ownership or profit interests in)
such Person, all of the securities (other than debt securities) convertible into
or exchangeable for shares of capital stock of (or other ownership or profit
interests in) such Person or warrants, rights, or options for the purchase or
acquisition from such Person of such shares (or such other interests), and all
of the other ownership or profit interests in such Person (including
partnership, member, or trust interests therein), whether voting or nonvoting,
and whether or not such shares, warrants, options, rights, or other interests
are outstanding on any date of determination.

       

      ERISA
means the Employee
Retirement Income Security Act of 1974, as amended, and related rules and
regulations.

       

      Excluded
Taxes means, with respect to Administrative Agent, any Lender, the L/C
Issuers, or any other recipient of any payment to be made by or on account of
any obligation of Borrower hereunder, (a) Taxes imposed on or measured by its
overall net income (however denominated), and franchise Taxes imposed on it (in
lieu of net income Taxes), by the jurisdiction (or any political subdivision
thereof) under the Laws of which such recipient is organized or in which its
principal office is located or, in the case of any Lender, in which its
applicable Lending Office is located, (b) any branch profits Taxes imposed by
the United States or any similar Tax imposed by any other jurisdiction in which
Borrower is located, and (c) in the case of a Foreign Lender (other than an
assignee pursuant to a request by Borrower under Section
15.14), any withholding Tax that is imposed on amounts payable to such
Foreign Lender at the time such Foreign Lender becomes a party hereto (or
designates a new Lending Office) or is attributable to such Foreign Lender’s
failure or inability (other than as a result of a Change in Law) to comply with
Section
4.1(e), except to the extent that such Foreign Lender (or its assignor,
if any) was entitled, at the time of designation of a new Lending Office (or
assignment), to receive additional amounts from Borrower with respect to such
withholding Tax pursuant to Section
4.1(a).

       

      Existing
Agreement is defined in the Recitals of this Agreement.

       

      Existing Critical
Assets means each of the Critical Assets owned by the Companies on the
Third Agreement Date and listed on Schedule 8.11(a)
hereto.

       

      Existing Housing
Bonds means the following Bonds issued by Housing Districts before the
Third Agreement Date (and re-issuances of such Housing Bonds in accordance with
the related Bond Documents): (a) $10,600,000 of Eagle County, Colorado,
Taxable Housing Facilities Revenue Bonds (BC Housing, LLC Project) Series 1997A
and 1997B, (b) $19,980,000 of Breckenridge Terrace LLC Taxable Housing
Facilities Revenue Notes (Breckenridge Terrace Project), Series 1999A and 1999B,
(c) $10,410,000 of Eagle County, Colorado, Taxable Housing Facilities Revenue
Bonds (The Tarnes at BC, LLC Project), Series 1999A and 1999B, and (d)
$11,585,000 of the Tenderfoot Seasonal Housing, LLC Taxable Housing Facilities
Revenue Notes (Tenderfoot Seasonal Housing, LLC Project), Series 2000A and
2000B, and renewals or extensions of each of the foregoing (but not increases
thereof) on or after the Third Agreement Date.

       

      Existing Housing
Districts means, collectively, Tenderfoot Seasonal Housing LLC, The
Tarnes at BC Housing LLC, BC Housing LLC (Riveredge), and Breckenridge Terrace
LLC, and Existing Housing
District means any one of the Existing Housing Districts.

       

      Existing Metro
Districts means, collectively, Smith Creek Metropolitan District,
Bachelor Gulch Metropolitan District, Holland Creek Metropolitan District, and
Red Sky Ranch Metropolitan District, and Existing Metro
District means any one of the Existing Metro Districts.

       

      Federal Funds
Rate means, for any day, the annual rate (rounded upwards, if necessary,
to the nearest 0.01%) determined (which determination is conclusive and binding,
absent manifest error) by Administrative Agent to be equal to the weighted
average of the rates on overnight federal funds transactions with member banks
of the Federal Reserve System arranged by federal funds brokers on that day, as
published by the Federal Reserve Bank of New York on the next Business Day, or,
if those rates are not published for any day, the average rate charged to
Administrative Agent (in its individual capacity) on such day on such
transactions as determined by Administrative Agent.

       

      Fee
Letters means, collectively, (a) the letter agreement dated December 17,
2004, among VRI, Borrower, Administrative Agent, Arranger, and Bank of America,
as L/C Issuer, and (b) the letter agreement dated January 24, 2005, among VRI,
Borrower, and Wells Fargo Bank, National Association, as L/C Issuer; and Fee Letter
means one of the Fee Letters.

       

      Financial Hedge
means a transaction between Borrower and any Lender or an Affiliate of
any Lender (or another Person reasonably acceptable to Administrative Agent),
which is intended to reduce or eliminate the risk of fluctuations in one or more
interest rates, foreign currencies, commodity prices, equity prices, or other
financial measures, whether or not such transaction is governed by or subject to
any master agreement conforming to ISDA standards and which is legal and
enforceable under applicable Law.

       

      Financial
Statements of a Person means balance sheets, profit and loss statements,
reconciliations of capital and surplus, and statements of cash flow prepared (a)
according to GAAP, and (b) other than as stated in Section
1.3, in comparative form to prior year-end figures or corresponding
periods of the preceding fiscal year, as applicable.

       

      Foreign Lender
means a Lender that is not a “United States person” within
the meaning of Section
7701(a)(30) of the Code.

       

      Forest Service
Permit Agreements means (a) that certain Amended and Restated Multiparty
Agreement Regarding Forest Service Term Special Use Permit No. 4056/01; (b) that
certain Amended and Restated Multiparty Agreement Regarding Forest Service
Special Use Permit No. 4065-03; (c) any similar agreement or instrument relating
to any Forest Service Permit and authorized or contemplated by the provisions of
the documents executed in connection with the issuance of the Vail Bonds; and
(d) all renewals, extensions and restatements of, and amendments and supplements
to, any of the foregoing.

       

      Forest Service
Permits means (a) Ski Area Term Special Use Permit Holder No. 4056/01
issued by the Service to Borrower for the Vail ski area on November 23, 1993,
and expiring on October 31, 2031; (b) Term Special Use Permit No. Holder 4065-03
issued by the Service to Borrower’s wholly-owned subsidiary, Beaver Creek
Associates, Inc., for the Beaver Creek ski area on November 10, 1999, and
expiring on December 31, 2038; (c) Term Special Use Permit Holder No. 5289-01
for Keystone ski area issued by the Service to Ralston Resorts, Inc., now known
as Vail Summit Resorts, on December 31, 1996, and expiring on December 31, 2032;
(d) Term Special Use Permit Holder No. 5289-04 for Breckenridge ski area issued
by the Service to Ralston Resorts, Inc., now known as Vail Summit Resorts, on
December 31, 1996, and expiring on December 31, 2029; (e) Term Special Use
Permit Holder No. EDL508901 for Heavenly ski area issued by the Service to
Heavenly Valley on May 7, 2002, and expiring on May 1, 2042; and (f) any
replacements of any of the foregoing.

       

      Fund means
any Person (other than a natural person) that is (or will be) engaged in making,
purchasing, holding, or otherwise investing in commercial loans and similar
extensions of credit in the ordinary course of its business.

       

      Funded Debt
means, without duplication, on any date of determination, the sum of the following,
calculated on a consolidated basis for the Restricted Companies in accordance
with GAAP: (a) all obligations for borrowed money (whether as a direct
obligation on a promissory note, bond, zero coupon bond, debenture, or other
similar instrument, or as an unfulfilled reimbursement obligation on a drawn
letter of credit or similar instrument, or otherwise), plus (b) all Capital Lease
obligations (other than
the interest component of such obligations) of SSI or any Restricted Company,
plus (c) reimbursement
obligations and undrawn amounts under Bond L/Cs supporting Bonds (other than
Existing Housing Bonds) issued by Unrestricted Subsidiaries, but expressly excluding (d)
Debt under Existing Housing Bonds; provided, that, for purposes of
calculating the Funded Debt of the Restricted Companies under this Agreement, if
SSI is not a Restricted Subsidiary, then (unless otherwise indicated) a
percentage of principal of and interest on SSI’s Funded Debt shall be included
in each such calculation, with such percentage being the average weighted
membership interest held by Borrower in SSI (expressed as a percentage) on such
date of determination.

       

      Funding Loss
means any loss or expense that any Lender reasonably incurs because (a)
Borrower fails or refuses (for any reason whatsoever, other than a default by
Administrative Agent or Lender claiming such loss or expense) to take any Loan
that it has requested under this Agreement, or (b) Borrower pays any Revolver
Loan that is a LIBOR Loan or converts any Revolver Loan that is a LIBOR Loan to
a Base Rate Loan, in each case, before the last day of the applicable Interest
Period.

       

      GAAP means
generally accepted accounting principles of the Accounting Principles Board of
the American Institute of Certified Public Accountants and the Financial
Accounting Standards Board (or agencies with similar functions of comparable
stature and authority within the United States accounting profession) that are
applicable from time to time.

       

      Governmental
Authority means the government of the United States or any other nation,
or of any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank, or other
entity exercising executive, legislative, judicial, taxing, regulatory, or
administrative powers or functions of or pertaining to government (including any
supra-national bodies such as the European Union or the European Central
Bank).

       

      Guarantor
means each Person executing a Guaranty.

       

      Guaranty
means, collectively, (a) a guaranty substantially in the form of Exhibit
B-1, executed and delivered by any Person pursuant to the requirements of
the Loan Papers, together with (b) any related Confirmation of Guaranty and any
other amendment, modification, supplement, restatement, ratification, or
reaffirmation of any Guaranty made in accordance with the Loan
Papers.

       

      Hazardous
Substance means any substance that is defined or classified as a
hazardous waste, hazardous material, pollutant, contaminant or toxic or
hazardous substance under any Environmental Law.

       

      Heavenly Valley
means Heavenly Valley, Limited Partnership, a Nevada limited
partnership.

       

      Holland Creek
L/C means an irrevocable transferable L/C of up to $8,597,808 expiring
August 24, 2005, issued by the applicable L/C Issuer to U.S. Bank National
Association and any successor thereto as Trustee under the Trust Indenture dated
as of June 1, 2001 with Holland Creek Metropolitan District, pursuant to which
$8,500,000 in aggregate principal amount of the Holland Creek Metropolitan
District, Eagle County, Colorado, Variable Rate Revenue Bonds, Series 2001, are
being issued and delivered by Holland Creek Metropolitan District, a
quasi-municipal corporation and political subdivision of the State of Colorado
under the terms of which such Trustee is, subject to the terms and conditions
set forth therein, entitled to draw, with respect to such Bonds, up to (a) an
amount sufficient to pay (i) the principal of such Bonds when due, or (ii) the
portion of the purchase price of such Bonds tendered or deemed tendered for
purchase in accordance with such Indenture and not subsequently remarketed
corresponding to the principal amount of such Bonds, plus (b) an amount equal
to approximately 35 days of accrued interest on such Bonds (at up to 12% per
annum), to pay (i) interest on such Bonds when due, or (ii) the portion of the
purchase price of such Bonds tendered or deemed tendered for purchase in
accordance with such indenture and not subsequently remarketed corresponding to
accrued interest, as such L/C may be renewed, extended, increased or amended
from time to time in accordance with the Loan Papers.

       

      Honor Date
has the meaning set forth in Section
2.3(c)(i).

       

      Housing Districts
means, collectively, (a) the Existing Housing Districts, and (b) any
other Person which issues Bonds after the Closing Date to finance the
development of housing projects for employees of the Companies; and Housing
District means one of the Housing Districts.

       

      Indemnified
Taxes means Taxes other than Excluded Taxes.

       

      Intellectual
Property means (a) common law, federal statutory, state statutory and
foreign trademarks or service marks (including, without limitation, all
registrations and pending applications and the goodwill of the business
symbolized by or conducted in connection with any such trademark or service
mark), trademark or service mark licenses and all proceeds of trademarks or
service marks (including, without limitation, license royalties and proceeds
from infringement suits),  (b) U.S. and foreign patents (including,
without limitation, all pending applications, continuations,
continuations-in-part, divisions, reissues, substitutions and extensions of
existing patents or applications), patent licenses and all proceeds of patents
(including, without limitation, license royalties and proceeds from infringement
suits), (c) copyrights (including, without limitation, all registrations
and pending applications), copyright licenses and all proceeds of copyrights
(including, without limitation, license royalties and proceeds from infringement
suits), and (d) trade secrets, but does not include (i) any
licenses (including, without limitation, liquor licenses) or any permits
(including, without limitation, sales Tax permits) issued by a Governmental
Authority and in which (y) the licensee’s or permittee’s interest is defeasible
by such Governmental Authority and (z) the licensee or permittee has no right
beyond the terms, conditions and periods of the license or permit, or (ii) trade
names or “dba”s to the extent they do not constitute trademarks or service
marks.

       

      Interest
Period means, as to each Revolver Loan that is a LIBOR Loan, the period
commencing on the date such Revolver Loan is disbursed or converted to or
continued as a Revolver Loan that is a LIBOR Loan and ending on the date one,
two, three or six months thereafter, as selected by Borrower in its Loan Notice;
provided that:

       

      (a)           any
Interest Period that would otherwise end on a day that is not a Business Day
shall be extended to the next succeeding Business Day unless such Business Day
falls in another calendar month, in which case such Interest Period shall end on
the next preceding Business Day;

       

      (b)           any
Interest Period that begins on the last Business Day of a calendar month (or on
a day for which there is no numerically corresponding day in the calendar month
at the end of such Interest Period) shall end on the last Business Day of the
calendar month at the end of such Interest Period; and

       

      (c)           no
Interest Period shall extend beyond the Termination Date.

       

      Internal Control
Event means a material weakness in, or fraud that involves management or
other employees who have a significant role in, Borrower’s internal controls
over financial reporting, in each case as described in the Securities
Laws.

       

      Investment
Limit means, on any date of determination, the sum of (a) $75,000,000 plus (b) 10% of Total
Assets.

       

      ISP means,
with respect to any L/C, the “International Standby Practices
1998” published by the Institute of International Banking Law &
Practice (or such later version thereof as may be in effect at the time of
issuance).

       

      Laws means
all applicable statutes, laws, treaties, ordinances, rules, regulations, orders,
writs, injunctions, decrees and judgments.

       

      L/C means
(a) each of the Bond L/Cs and each existing letter of credit issued by an L/C
Issuer for the account of any of the Companies and described on Part A of
Schedule
2.3, and (b) each other letter of credit (in such form as shall be
customary in respect of obligations of a similar nature and as shall be
reasonably requested by Borrower) issued by an L/C Issuer under this
Agreement.  An L/C may be a standby or commercial letter of
credit.

       

      L/C Agreement
means an application and agreement for the issuance or amendment of an
L/C in the form from time to time in use by the applicable L/C
Issuer.

       

      L/C Borrowing
means an extension of credit resulting from a drawing under any L/C that
has not been reimbursed on the date when made or refinanced as a Revolver
Loan.

       

      L/C Credit
Extension means, with respect to any L/C, the issuance thereof, the
extension of the expiry date thereof, or the increase of the amount
thereof.

       

      L/C Expiration
Date means the day that is seven (7) days prior to the Termination Date
then in effect (or, if such day is not a Business Day, the next preceding
Business Day).

       

      L/C Exposure
means, on any date of determination, without duplication, the sum of (a) the aggregate
amount available to be drawn under all outstanding L/Cs (including, without
limitation, any reinstatement of or increase in the face amount thereof effected
pursuant to the terms of any Bond L/C), plus (b) the aggregate unpaid
reimbursement obligations of Borrower with respect to drawings, drafts or other
forms of demand honored under any L/C (including, without limitation, all L/C
Borrowings and unpaid reimbursement obligations under any Bond
L/C).  For purposes of computing the amount available to be drawn
under any L/C, the amount of such L/C shall be determined in accordance with
Section
1.7.  For all purposes of this Agreement, if on any date of
determination an L/C has expired by its terms but any amount may still be drawn
thereunder by reason of the operation of Rule 3.14 of the ISP, such
L/C shall be deemed to be “outstanding” in the amount so
remaining available to be drawn.

       

      L/C Issuer
means Bank of America and Wells Fargo Bank, National Association, in their
respective capacities as issuers of L/Cs hereunder, or any successor issuer of
L/Cs hereunder; and L/C Issuer
means one of the L/C Issuers.

       

      L/C Subfacility
means a subfacility under the Agreement for the issuance of L/Cs, as
described in Section
2.3, under which the L/C Exposure may never exceed the L/C
Sublimit.

       

      L/C
Sublimit means the lesser of (a) $150,000,000 and (b) the Total
Commitment (as the same may be increased or reduced in accordance with the Loan
Papers).  The L/C Sublimit is part of, and not in addition to, the
Total Commitment.

       

      Lenders
means (a) each of the lenders named on the attached Schedule 1
(and as the context so requires, the Swing Line Lenders) and, subject to this
Agreement, their respective successors and assigns (but not any Participant who
is not otherwise a party to this Agreement), and (b) additional lenders who
become party to this Agreement in accordance with Section
2.5(b) hereof.

       

      Lending Office
means as to any Lender, the office or offices of such Lender described as
such in such Lender’s Administrative Questionnaire, or such other office or
offices as a Lender may from time to time notify Borrower and Administrative
Agent.

       

      LIBOR
means for any Interest Period the rate per annum equal to BBA LIBOR as published
by Reuters (or other customarily used, commercially available source providing
quotations of BBA LIBOR as designated by Administrative Agent from time to time)
at approximately 11:00 a.m., London time, two (2) Business Days prior to the
commencement of such Interest Period, for Dollar deposits (for delivery on the
first (1st) day
of such Interest Period) with a term equivalent to such Interest
Period.  If such rate is not available at such time for any reason,
then LIBOR
with respect to any such Revolver Loan that is a LIBOR Loan for such
Interest Period shall be the rate per annum determined by Administrative Agent
to be the rate at which deposits in Dollars for delivery on the first (1st) day
of such Interest Period in same day funds in the approximate amount of such
Revolver Loan that is a LIBOR Loan being made, continued or converted by Bank of
America and with a term equivalent to such Interest Period would be offered by
Bank of America’s London Branch to major banks in the London interbank
eurodollar market at their request at approximately 11:00 a.m. (London time) two
(2) Business Days prior to the commencement of such Interest Period;
and

       

      LIBOR Loan
means (a) with respect to Revolver Loans, a Loan bearing interest at the
sum of LIBOR plus the Applicable Margin,
and (b) with respect to Swing Line Loans (or participations therein), a Loan
bearing interest at Daily Floating LIBOR plus the Applicable
Margin.

       

      Lien
means, with respect to any asset, any mortgage, lien, pledge, charge,
security interest or encumbrance of any kind in respect of such
asset.  For the purposes of this Agreement, a Person shall be deemed
to own subject to a Lien any asset which it has acquired or holds subject to the
interest of a vendor or lessor under any conditional sale agreement, capital
lease or other title retention agreement relating to such asset.

       

      Litigation
means any action, suit, proceeding, claim, or dispute by or before any
Governmental Authority.

       

      Loan means
any amount disbursed by any Lender to Borrower or on behalf of any Company under
the Loan Papers, either as an original disbursement of funds, the continuation
of an amount outstanding, or payment under an L/C.

       

      Loan Date
is defined in Section
2.2(a).

       

      Loan Notice
means a request substantially in the form of Exhibit
C-1.

       

      Loan Papers
means (a) this Agreement and the Notes, (b) each Guaranty, (c) all L/Cs
and L/C Agreements, (d) the Security Documents, and (e) all renewals,
extensions, restatements of, amendments and supplements to, and confirmations or
ratifications of, any of the foregoing.

       

      Material Adverse
Event means any (a) material impairment of the ability of the Restricted
Companies as a whole to perform their payment or other material obligations
under the Loan Papers or material impairment of the ability of Administrative
Agent or any Lender to enforce any of the material obligations of the Restricted
Companies as a whole under the Loan Papers; (b) material and adverse effect on
the operations, business, properties, liabilities (actual or contingent), or
condition (financial or otherwise) of the Restricted Companies as a whole; or
(c) a material adverse effect upon the legality, validity, or binding effect
against the Restricted Companies as a whole of any Loan Paper to which such
Restricted Companies are parties.

       

      Material
Agreement means, for any Person, any agreement (excluding purchase orders
for material, services, or inventory in the ordinary course of business) to
which that Person is a party, by which that Person is bound, or to which any
assets of that Person may be subject, that is not cancelable by that Person upon
30 or fewer days’ notice without liability for further payment, other than nominal penalty,
and that requires that Person to pay more than $2,000,000 during any 12-month
period.

       

      Maximum Amount
and Maximum Rate
respectively mean, for a Lender, the maximum non-usurious amount and the
maximum non-usurious rate of interest that, under applicable Law, such Lender is
permitted to contract for, charge, take, reserve or receive on the Obligation
held by such Lender.

       

      Metro
Districts means, collectively, (a) the Existing Metro Districts, and (b)
any other Person which issues Bonds after the Closing Date to finance the
operation, construction, and maintenance of infrastructure projects in
municipalities, which projects are related to the Companies’ business activities
in the region in which the projects are being developed; and Metro
District means one of the Metro Districts.

       

      Moody’s
means Moody’s Investor’s Service, Inc.

       

      Multiemployer
Plan means a multiemployer plan as defined in Sections 3(37) or 4001(a)(3) of ERISA or Section 414(f) of the Code to
which any Company (or any Person that, for purposes of Title IV of ERISA, is a
member of Borrower’s controlled group or is under common control with Borrower
within the meaning of Section
414 of the Code) is making, or has made, or is accruing, or has accrued,
an obligation to make contributions.

       

      Net Income
means, for any period with respect to any Person (or group of Persons whose
Financial Statements are consolidated in accordance with GAAP), the net income
of such Person or Persons from continuing operations after extraordinary items
(excluding gains or losses from the disposition of assets) for that period
determined in accordance with GAAP; provided however, that for
purposes of calculating Net Income of the Restricted Companies under this
Agreement:

       

      (a)           if
any Restricted Company owns an interest in a Person that is not consolidated in
the consolidated financial statements of VRI and its Restricted Subsidiaries in
accordance with GAAP (a “Non-Consolidated
Entity”), then such equity interest shall not be accounted for under the
equity method of accounting, but the “Net
Income” of such Restricted Company shall be increased to the extent cash
is distributed to such Restricted Company by any such Non-Consolidated Entity
during such period and shall be decreased to the extent cash is contributed in
the form of equity to such Non-Consolidated Entity in order to fund losses of
such Non-Consolidated Entity during such period; provided, that for purposes of Section
10.9(d), the Net Income of any Restricted Company for any period shall
not be adjusted to the extent cash is contributed by such Restricted Company in
the form of equity to a Non-Consolidated Entity in order to fund losses of such
Non-Consolidated Entity during such period;

       

      (b)           if
SSI is not a Restricted Subsidiary, then (unless otherwise indicated) a
percentage of the Net Income of SSI shall be included in each such calculation,
with such percentage being the weighted average membership interest held by
Borrower in SSI (expressed as a percentage) during the applicable period of
calculation for each such calculation; and

       

      (c)           premiums
paid and the write-off of any unamortized balance of original issue discount in
connection with a redemption of, or tender offer for, debt that is consummated
in accordance with the Loan Papers, and the amortization and write-off of any
unamortized balance of debt issuance costs, shall be excluded.

       

      Net Proceeds
means, with respect to the issuance of equity securities, the cash and
non-cash proceeds received from such issuance, net of attorneys’ fees,
investment banking fees, accountants fees, underwriting discounts and
commissions, and other customary fees and expenses actually incurred in
connection with such issuance (other than fees, discounts,
commissions, and expenses paid to an Affiliate of such Person).

       

      Non-Cash
Operating Charges means depreciation expense, amortization expense, and
any other non-cash charges determined in accordance with GAAP (including,
without limitation, non-cash compensation expenses incurred in respect of stock
option plans, including, without limitation, pursuant to FAS 123R).

       

      Nonextension
Notice Date has the meaning set forth in Section
2.3(b)(iii).

       

      Notes
means, collectively, the Revolver Notes and Swing Line Notes, and “Note”
means any of the Notes.

       

      Obligation
means all present and future indebtedness and obligations, and all
renewals, increases, and extensions thereof, or any part thereof, now or
hereafter owed to Administrative Agent, the L/C Issuers, and any Lender
(including, without limitation, the Swing Line Lenders) by the Companies under
the Loan Papers, together with
all interest accruing thereon, fees, costs, and expenses (including,
without limitation, all attorneys’ fees and expenses incurred in the enforcement
or collection thereof) payable under the Loan Papers or in connection with the
protection of Rights under the Loan Papers; provided that, all references
to the Obligation
in the Security Documents, the Guaranty, and Section 3.10
herein shall, in addition to the foregoing, also include all present and future
indebtedness, liabilities, and obligations (and all renewals and extensions
thereof or any part thereof) now or hereafter owed to any Lender or any
Affiliate of a Lender arising from, by virtue of, or pursuant to any Financial
Hedge entered into by any Restricted Company.

       

      Other
Taxes means all present or future stamp or documentary Taxes or any other
excise or property Taxes, charges, or similar levies arising from any payment
made hereunder or under any other Loan Paper or from the execution, delivery, or
enforcement of, or otherwise with respect to, this Agreement or any other Loan
Paper.

       

      Outstanding
Amount means (a) with respect to Revolver Loans and Swing Line Loans on
any date, the aggregate outstanding principal amount thereof after giving effect
to any borrowings and prepayments or repayments of Revolver Loans and Swing Line
Loans, as the case may be, occurring on such date; and (b) with respect to any
L/C Exposure on any date, the amount of such L/C Exposure on such date after
giving effect to any L/C Credit Extension occurring on such date and any other
changes in the aggregate amount of the L/C Exposure as of such date, including
as a result of any reimbursements by Borrower of Unreimbursed
Amounts.

       

      Participant
is defined in Section
15.11(d).

       

      PBGC means
the Pension Benefit Guaranty Corporation, or any successor thereof, established
under ERISA.

       

      Permitted Debt
means:

       

      (a)           the
Obligation;

       

      (b)           Debt
of any Company which is listed on Part B of Schedule
2.3;

       

      (c)           Debt
of any Company arising from endorsing negotiable instruments for collection in
the ordinary course of business;

       

      (d)           Subordinated
Debt (and guarantees by Restricted Companies of Subordinated Debt of other
Restricted Companies, if such guarantees are subordinated to the payment and
collection of the Obligation on the same terms as such Subordinated Debt or
otherwise upon terms satisfactory to Administrative Agent);

       

      (e)           in
addition to the foregoing: (i) Debt of Unrestricted Subsidiaries which is
non-recourse to the Restricted Companies and their assets, unless otherwise
included in clause (iii)
hereof; (ii) Debt of any Company arising under or pursuant to the
Existing Housing Bonds to which any such Company is a party; (iii) Debt of any
Company arising under or pursuant to Bonds (other than Existing Housing Bonds)
to which any such Company is a party, so long as after giving
effect to the incurrence of such Debt and, without duplication, Debt incurred by
Borrower or any other Company in support thereof, (A) the Companies are in pro
forma compliance with all financial covenants set forth in Section 11.1
herein, and (B) no Default or Potential Default exists or would result
after giving effect thereto; (iv) fees and other amounts payable under the
Forest Service Permits in the ordinary course of business; and (v) inter-company
Debt between Restricted Companies;

       

      (f)           up
to $12,975,000 of Debt arising under the guaranty by Borrower of amounts owed by
SSI under its Credit Agreement dated as of December 30, 1999, as amended,
restated or supplemented from time to time (with any remaining Debt under such
guaranty permitted only to the extent permitted under clause (g)
below); and

       

      (g)           in
addition to the foregoing, Debt in an amount equal to the sum of (i) $100,000,000 and
(ii) at such time as the SSI guaranty in clause (f)
above is or has been terminated in full, such that Borrower has no obligations
thereunder, $13,000,000, less any amount paid by Borrower, if any, under such
guaranty.

       

      Permitted Liens
means:

       

      (a)           Liens
created by the Security Documents or other Liens securing the Obligation, and
so long as the
Obligation is ratably secured therewith, Liens securing Debt incurred by any
Company under any Financial Hedge with any Lender or an Affiliate of any Lender
to the extent permitted under Section 10.8(i);

       

      (b)           Liens
created by, or pursuant to, the Forest Service Permit Agreements for the benefit
of the holders of the Vail Bonds and Liens on the amounts in the Bond Fund
established and maintained in accordance with the provisions of the documents
executed in connection with the issuance of the Vail Bonds (and Liens created on
all or any portion of the same assets in connection with any refinancing of such
bonds);

       

      (c)           Liens
on the amounts in the Bond Fund, Redemption Fund and Rebate Fund established and
maintained in accordance with the provisions of the documents executed in
connection with the issuance of the Summit Bonds (and Liens created on all or
any portion of the same assets in connection with any refinancing of such
bonds);

       

      (d)           Liens
on assets of Unrestricted Subsidiaries securing Debt which is non-recourse
(other than with respect to the L/C listed on Schedule 2.3
supporting obligations of SSI) to the Restricted Companies and their
assets (to the extent not otherwise included in clause (f)
below);

       

      (e)           Liens
on assets of any Company securing Permitted Debt arising under or pursuant to
any Bond Documents to which any such Company is a party;

       

      (f)           purchase
money liens which encumber only the assets acquired;

       

      (g)           pledges
or deposits made to secure payment of workers’ compensation, unemployment
insurance or other forms of governmental insurance or benefits  (other
than ERISA) or to participate in any fund in connection with workers’
compensation, unemployment insurance, pensions (other than ERISA) or other
social security programs;

       

      (h)           good-faith
pledges or deposits made to secure performance of bids, tenders, contracts
(other than for the
repayment of borrowed money) or leases, or to secure statutory obligations,
surety or appeal bonds or indemnity, performance or other similar bonds in the
ordinary course of business;

       

      (i)           encumbrances
and restrictions on the use of real property which do not materially impair the
use thereof;

       

      (j)           the
following, if either (1) no amounts are due and payable and no Lien has been
filed or agreed to, or (2) the validity or amount thereof is being contested in
good faith by lawful proceedings diligently conducted, reserve or other
provision required by GAAP has been made, levy and execution thereon have been
(and continue to be) stayed or payment thereof is covered in full (subject to
the customary deductible) by insurance:  (i) Liens for Taxes; (ii)
Liens upon, and defects of title to, property, including any attachment of
property or other legal process prior to adjudication of a dispute on the
merits; (iii) Liens imposed by operation of Law (including, without limitation,
Liens of mechanics, materialmen, warehousemen, carriers and landlords, and
similar Liens); and (iv) adverse judgments on appeal;

       

      (k)           any
interest or title of a lessor or licensor in assets being leased or licensed to
a Company;

       

      (l)           licenses,
leases or subleases granted to third Persons which do not interfere in any
material respect with the business conducted by the Companies;

       

      (m)           any
Lien on any asset of any entity that becomes a Subsidiary of VRI, which Lien
exists at the time such entity becomes a Subsidiary of VRI, so long as (i) any such
Lien was not created in contemplation of such acquisition, merger, or
consolidation, and (ii)  any such Lien does not and shall not extend to any
asset other than the assets secured immediately prior to the acquisition in
formation of such Subsidiary;

       

      (n)           in
respect of Water Rights, the provisions of the instruments evidencing such Water
Rights and any matter affecting such Water Rights which does not affect the
Companies’ rights to sufficient quantity and quality of water to conduct
business as in effect on the date hereof or any expansion planned as of the date
hereof (including, without limitation, any Lien of the Colorado Water
Conservation Board, or its successors and assigns, on stock owned by any Company
in a Colorado ditch and reservoir company formed in accordance with the Colorado
Corporation Code, as amended);

       

      (o)           in
respect of the Forest Service Permits, the provisions of the instruments
evidencing such permits and all rights of the U.S. and its agencies with respect
thereto or with respect to the land affected thereby; and

       

      (p)           Liens
on cash accounts not to exceed $250,000 in the aggregate at the FirstBank of
Vail established in connection with collateralizing a portion, if any, of
certain second mortgage loans made by such bank, and guaranteed by Borrower, as
part of the Vail Associates Home Mortgage Program for Borrower’s
employees.

       

      Person
means any individual, partnership, entity or Governmental
Authority.

       

      Platform
has the meaning specified in Section
9.1

       

      Pledge Agreement
means, collectively, (a) a pledge agreement substantially in the
form of Exhibit
F-1, executed and delivered by any Person pursuant to the requirements of
the Loan Papers, together with (b) any related Confirmation of Pledge Agreement
and any other amendment, modification, supplement, restatement, ratification, or
reaffirmation of any Pledge Agreement made in accordance with the Loan
Papers.

       

      Potential Default
means the occurrence of any event or existence of any circumstance that
would, upon notice or lapse of time or both, become a Default.

       

      Principal Debt
means, at any time, the aggregate unpaid principal balance of all Loans,
together with the aggregate unpaid reimbursement obligations of Borrower in
respect of drawings under any L/C (including, without limitation, any L/C
Borrowing).

       

      Purchase
Price means, with respect to any acquisition or merger consummated in
accordance with the provisions of Section
10.11 herein, all (a) direct and indirect cash payments, and (b) deferred
cash payments determined by Borrower to be reasonably likely to be payable
following the closing date of such acquisition or merger, which payments
pursuant to clauses (a)
and (b) herein
are made to or for the benefit of the Person being acquired (or whose assets are
being acquired), its shareholders, or its Affiliates in connection with such
acquisition or merger, including, without limitation, the amount of any Debt
being assumed in connection with such acquisition or merger (and subject to the
limitations on Permitted Debt hereunder) or seller financing, and excluding,
without limitation, payments to Affiliates of the Person being acquired (or
whose assets are being acquired) for usual and customary transitional services
or other operating services provided by such Affiliates of the Person being
acquired (or whose assets are being acquired) pursuant to agreements that have
been entered into in good faith by the parties thereto.

       

      Quarterly Date
means each January 31, April 30, July 31 and October 31; provided, that if any such
Quarterly Date is not a Business Day, the provisions of Section
15.2 shall apply to payments required on such day.

       

      Real Estate Held
for Sale means, with respect to any Person, the real estate of such
Person and its Restricted Subsidiaries classified for financial reporting
purposes as “Real Estate Held
for Sale,” including, without limitation, cash deposits constituting
earnest money or security deposits relating to such real estate held by any such
Person.

       

      Real Estate Joint
Venture means any Person engaged exclusively in the acquisition,
development and operation, or resale of any real estate asset or group of
related real estate assets (and directly related activities).

       

      Related
Parties means, with respect to any Person, such Person’s Affiliates and
the partners, directors, officers, employees, agents and advisors of such Person
and of such Person’s Affiliates.

       

      Representatives
means representatives, officers, directors, employees, attorneys and
agents.

       

      Required Capital
Expenditures means $30,000,000.

       

      Required Lenders
means Lenders holding more than (a) 50% of the Total Commitment, prior to
the termination of the Total Commitment, or (b) 50% of the Commitment Usage,
after the termination of the Total Commitment (with the aggregate amount of each
Lender’s risk participation and funded participation in L/Cs and Swing Line
Loans being deemed “held” by such Lender for
purposes of this definition); provided, that the Commitment of, and
the portion of the Commitment Usage held or deemed held by, any Defaulting
Lender shall be excluded for purposes of making a determination of Required
Lenders.

       

      Resort EBITDA
means, without duplication, on any date of determination, (a) the sum of (i) EBITDA of the
Restricted Companies, plus
(ii) a
percentage of the EBITDA of SSI (with such percentage being the weighted average
membership interest held by Borrower in SSI (expressed as a percentage) during
the applicable period of calculation), plus (iii) insurance proceeds
(up to a maximum of $10,000,000 in the aggregate in any fiscal year) received by
the Restricted Companies under policies of business interruption insurance (or
under policies of insurance which cover losses or claims of the same character
or type), minus (b)
EBITDA of the Restricted Companies related to real estate activities; it being
understood that for purposes of this definition, the Restricted Companies
engaged in VRI’s lodging segment shall not be deemed to be engaged in real
estate activities.

       

      Responsible
Officer means the chairman, president, chief executive officer, or chief
financial officer of Borrower.

       

      Restricted
Companies means VRI, VHI, Borrower, and all of VRI’s Restricted
Subsidiaries; and Restricted
Company means any of the Restricted Companies.

       

      Restricted
Subsidiaries means (a) VHI, (b) Borrower, and (c) all of VRI’s other
direct and indirect Subsidiaries (other than Unrestricted
Subsidiaries); and Restricted
Subsidiary means any of the Restricted Subsidiaries.

       

      Revolver
Loan means any Loan made under this Agreement, other than a Swing Line Loan
or an L/C Borrowing.

       

      Revolver
Note means a promissory note in substantially the form of Exhibit A-1,
and all renewals and extensions of all or any part thereof.

       

      Rights
means rights, remedies, powers, privileges and benefits.

       

      S&P
means Standard & Poor’s Ratings Group (a division of The McGraw Hill
Companies, Inc.).

       

      Securities
Laws means the Securities Act of 1933, the Securities Exchange Act of
1934, and the applicable accounting and auditing principles, rules, standards,
and practices promulgated, approved, or incorporated by the Securities and
Exchange Commission, or any Governmental Authority succeeding to any of its
principal functions, or the Public Company Accounting Oversight Board, as each
of the foregoing may be amended and in effect on any applicable date
hereunder.

       

      Security
Documents means, collectively, (a) each Pledge Agreement, each
Confirmation of Pledge Agreement, any security agreement, mortgage, deed of
trust, control agreement, or other agreement or document, together with all
related financing statements and stock powers, in form and substance reasonably
satisfactory to Administrative Agent and its legal counsel, executed and
delivered by any Person in connection with this Agreement to create a Lien in
favor of Lenders on any of its real or personal property, as amended, modified,
supplemented, restated, ratified, or reaffirmed; and (b) with respect to each
Bond L/C, the trust indenture entered into in connection with such Bond L/C, and
such other agreements and documents delivered by the Issuer (as defined in the
applicable Bond L/C) and the applicable Trustee, pursuant to which such Issuer’s
interest in the Trust Estate (as defined in the applicable trust indenture) and,
upon payment in full of the applicable Bonds, such Trustee’s interest in the
applicable Bond Documents, are assigned to the applicable L/C Issuer as security
for payment of such Bonds.

       

      Senior Debt
means Funded Debt other
than Subordinated Debt.

       

      Senior
Subordinated Indenture means the Indenture dated as of January 29, 2004,
among VRI, as Issuer, The Bank of New York, as Trustee, and certain of VRI’s
Subsidiaries, as guarantors, as supplemented from time to time.

       

      Service
means the U.S. Department of Agriculture Forest Service or any successor
agency.

       

      Shareholders’
Equity means, as of any date of determination for the Restricted
Companies on a consolidated basis, shareholders’ equity as of that date
determined in accordance with GAAP.

       

      Similar
Business means any business conducted by VRI or any of its Subsidiaries
on the Closing Date or any other recreation, leisure, and/or hospitality
business, including, without limitation, ski mountain resort operations or any
business or activity that is reasonably similar thereto, a reasonable extension,
development, or expansion thereof, or reasonably ancillary thereto.

       

      Solvent
means, as to a Person, that (a) the aggregate fair market value of its
assets exceeds its liabilities (whether contingent, subordinated, unmatured,
unliquidated, or otherwise), (b) it has sufficient cash flow to enable it to pay
its Debts as they mature, and (c) it does not have unreasonably small capital to
conduct its businesses.

       

      SSI means
SSI Venture LLC, a Colorado limited liability company doing business as
“Specialty Sports Venture” and an Unrestricted Subsidiary of
Borrower.

       

      Subordinated Debt
means any unsecured indebtedness for borrowed money for which a Company
is directly and primarily obligated, so long as such Debt (a) does
not have any stated maturity before the latest maturity of any part of the
Obligation, (b) has terms that are no more restrictive upon the Company than the
terms of the Loan Papers, and (c) is subordinated, upon terms satisfactory to
Administrative Agent, to the payment and collection of the Obligation; and, in
any event, Subordinated
Debt includes notes, guarantees and all other obligations now or
hereafter arising under or pursuant to the Senior Subordinated Indenture (or any
other indenture that contains substantially the same material terms as the
Senior Subordinated Indenture).

       

      Subordinated
Notes means the 6-3⁄4% Senior Subordinated Notes issued under the Senior
Subordinated Indenture.

       

      Subsidiary
means, with respect to any Person, any corporation or other entity of
which securities or other ownership interests having ordinary voting power to
elect a majority of the board of directors or other persons performing similar
functions are at the time directly or indirectly owned by such
Person.

       

      Summit Bonds
means (a) the Summit County, Colorado, Sports Facilities Refunding
Revenue Bonds (Keystone Resorts Management, Inc. Project) Series 1990, in the
original principal amount of $20,360,000 (of which, approximately $19,000,000 is
outstanding on the date hereof), (b) the Summit County, Colorado, Sports
Facilities Refunding Revenue Bonds (Keystone Resorts Management, Inc. Project)
Series 1991, in the original principal amount of $3,000,000 ($1,500,000 of which
remains outstanding on the date hereof), and (c) refinancings of any of the
foregoing.

       

      Swing Line
Borrowing means a borrowing of a Swing Line Loan pursuant to Section
2.4.

       

      Swing Line
Lenders means, collectively, Bank of America and U.S. Bank National
Association, in their respective capacities as providers of Swing Line Loans,
and any successor swing line lender hereunder; and Swing Line
Lender means any one of the Swing Line Lenders.

       

      Swing Line
Loan has the meaning set forth in Section
2.4(a).

       

      Swing Line Loan
Notice means a notice of a Swing Line Borrowing pursuant to Section
2.4(b), which, if in writing, is substantially in the form of Exhibit
C-2.

       

      Swing Line
Note means a promissory note in substantially the form of Exhibit A-2,
and all renewals and extensions of all or any part thereof.

       

      Swing Line
Subfacility means a subfacility under the Agreement (the portion of the
Loans attributable to which may never exceed in the aggregate the Swing Line
Sublimit) as described in, and subject to the limitations of, Section 2.4
hereof.

       

      Swing Line
Sublimit means, on any date, an
amount equal to the lesser of (a) $25,000,000 and (b) the Total Commitment (as
the same may be increased or reduced in accordance with the Loan
Papers).  The Swing Line Sublimit is part of, and not in addition to,
the Total Commitment.

       

      Tarnes
L/Cs means, collectively, the (a) $8,116,667 irrevocable transferable L/C
expiring October 31, 2005, issued by the applicable L/C Issuer to U.S. Bank
National Association and any successor thereto as Trustee under the 1999 Trust
Indenture with Eagle County, Colorado, as Issuer, relating to approximately
$10,410,000 of Eagle County, Colorado, Taxable Housing Facilities Revenue Bonds
(The Tarnes at BC, LLC Project), Series 1999A, and (b) $2,462,217 irrevocable
transferable L/C expiring May 26, 2009, issued by the applicable L/C Issuer to
U.S. Bank National Association and any successor thereto as Trustee under the
1999 Trust Indenture with Eagle County, Colorado, as Issuer, relating to
approximately $10,410,000 of Eagle County, Colorado, Taxable Housing Facilities
Revenue Bonds (The Tarnes at BC, LLC Project), Series 1999B, under the terms of
which such Trustee is, subject to the terms and conditions set forth therein,
entitled to draw up to (x) amounts sufficient to pay (i) the principal of such
Bonds when due, or (ii) the portion of the purchase price of such Bonds tendered
or deemed tendered for purchase in accordance with such Indenture and not
subsequently remarketed corresponding to the principal amount of such Bonds,
plus (y) amounts equal
to approximately 35 days of accrued interest on such Bonds at 15% per annum
(with respect to Series A) and 52 days of accrued interest on such Bonds (with
respect to Series B) to pay (i) interest on such Bonds when due, or (ii) the
portion of the purchase price of such Bonds tendered or deemed tendered for
purchase in accordance with such Indenture and not subsequently remarketed
corresponding to accrued interest, as each such L/C may be renewed, extended,
increased or amended from time to time in accordance with the Loan
Papers.

       

      Taxes
means all present or future taxes, levies, imposts, duties, deductions,
withholdings, assessments, fees, or other charges imposed by any Governmental
Authority, including any interest, additions to tax, or penalties applicable
thereto.

       

      Tenderfoot
Housing L/Cs means, collectively, the (a) $5,783,125 irrevocable
transferable L/C expiring October 31, 2005, issued by the applicable L/C Issuer
to U.S. Bank National Association and any successor thereto as Trustee under the
Trust Indenture dated as of June 1, 2001 with Tenderfoot Seasonal Housing, LLC,
relating to $11,585,000 in aggregate principal amount of the Tenderfoot Seasonal
Housing, LLC Taxable Housing Facilities Notes (Tenderfoot Seasonal Housing, LLC
Project), Series 2000A, and (b) $6,012,509 irrevocable transferable L/C expiring
June 15, 2005, issued by the applicable L/C Issuer to U.S. Bank National
Association and any successor thereto as Trustee under the Trust Indenture dated
as of June 1, 2001 with Tenderfoot Seasonal Housing, LLC, relating to
$11,585,000 in aggregate principal amount of the Tenderfoot Seasonal Housing,
LLC Taxable Housing Facilities Notes (Tenderfoot Seasonal Housing, LLC Project),
Series 2000B, under the terms of which such Trustee is, subject to the terms and
conditions set forth therein, entitled to draw, with respect to such Notes, up
to (x) amounts sufficient to pay (i) the principal of such Notes when due, or
(ii) the portion of the purchase price of such Notes tendered or deemed tendered
for purchase in accordance with such Indenture corresponding to the principal
amount of such Notes, plus (y) amounts equal to
approximately 35 days of accrued interest on such Notes at 15% per annum (with
respect to Series A) and 52 days of accrued interest on such Notes (with respect
to Series B) to pay (i) interest on such Notes when due, or (ii) the portion of
the purchase price of such Notes tendered or deemed tendered for purchase which
corresponds to the accrued interest on the principal amount of such Notes, as
each such L/C may be renewed, extended, increased or amended from time to time
in accordance with the Loan Papers.

       

      Termination Date
means the earlier of (a) January 28, 2010, and (b) the effective date
upon which Lenders’ Commitments are otherwise canceled or
terminated.

       

      Third Agreement
Date means June 10, 2003, the “Closing Date” of the Third
Amended and Restated Revolving Credit and Term Loan Agreement among Borrower,
certain lenders party thereto, and Bank of America, N.A., as administrative
agent for such lenders.

       

      Threshold Amount
means $25,000,000.

       

      Total Assets
means, as of any date of determination for the Restricted Companies on a
consolidated basis, the book value of all assets of the Restricted Companies (as
determined in accordance with GAAP).

       

      Total
Commitment means, on any date of determination, the aggregate Commitments
of all Lenders then in effect.

       

      Trustee
means any Trustee designated as the beneficiary of a Bond
L/C.

       

      Type means
any type of Loan determined with respect to the applicable interest
option.

       

      Unreimbursed
Amount has the meaning set forth in Section
2.3(c)(i).

       

      Unrestricted
Subsidiary means any existing Subsidiary or newly-formed Subsidiary
created by Borrower pursuant to Section
9.10 (which may be a partnership, joint venture, corporation, limited
liability company, or other entity) (a) which does not own any Forest Service
Permit or the stock of any Restricted Company or any Critical Assets,
(b) which has (and whose other partners, joint venturers, members or
shareholders have) no Debt or other material obligation which is recourse to any
Restricted Company or to the assets of any Restricted Company (other than with respect to
limited guarantees or other recourse agreements of the Restricted Companies
which are permitted to be incurred under this Agreement under clauses
(f) and
(g)
of the definition of “Permitted Debt”), and (c)
which is specifically identified in this definition or has been designated by
Borrower as an Unrestricted Subsidiary by notice to Administrative Agent under
Section
9.11 hereof.  As of the Closing Date the Unrestricted
Subsidiaries are Eagle Park Reservoir Company, SSI Venture LLC, Boulder/Beaver,
LLC, Colter Bay Corporation, Gros Ventre Utility Company, Jackson Lake Lodge
Corporation, Jenny Lake Lodge, Inc., Forest Ridge Holdings, Inc., Resort
Technology Partners LLC, and RT Partners, Inc.

       

      U.S. means
the United States of America.

       

      Vail Bonds
means (a) the Eagle County, Colorado Sports Facilities Revenue Refunding
Bonds Series 1998, in the original principal amount of $41,200,000 and (b)
refinancings of any of the foregoing.

       

      Vail Summit
Resorts means Vail Summit Resorts, Inc. (f/k/a “Ralston Resorts, Inc.”),
a Colorado corporation and a Wholly Owned Subsidiary of Borrower.

       

      VHI means
Vail Holdings, Inc., a Colorado corporation and the direct owner of
Borrower.

       

      VRI means
Vail Resorts, Inc., a Delaware corporation and the indirect owner of
Borrower.

       

      Water Rights
means all water rights and conditional water rights that are appurtenant
to real property owned by the Companies or that have been used or are intended
for use in connection with the conduct of the business of the Companies,
including but not limited to (a) ditch, well, pipeline, spring and reservoir
rights, whether or not adjudicated or evidenced by any well or other permit, (b)
all rights with respect to groundwater underlying any real property owned by the
Companies, (c) any permit to construct any water well, water from which is
intended to be used in connection with such real property, and (d) all right,
title and interest of the Companies under any decreed or pending plan of
augmentation or water exchange plan.

       

      Wholly Owned
when used in connection with any Subsidiary means any corporation,
partnership, limited liability company, or other entity of which all of the
equity securities or other ownership interests are owned, directly or
indirectly, by VRI, Borrower, or one or more of their Wholly Owned Restricted
Subsidiaries.

       

      
        	
                1.2  

              	
                Number and Gender of
      Words.

              

      

       

      (a)           The
meanings of defined terms are equally applicable to the singular and plural
forms of the defined terms.

       

      (b)           (i)           The
words “herein,” “hereto,” “hereof” and “hereunder” and words of
similar import when used in any Loan Paper shall refer to such Loan Paper as a
whole and not to any particular provision thereof.

       

      (ii)           Article,
Section, Exhibit and Schedule references are to the Loan Papers in which such
reference appears.

       

      (iii)           The
term “including” is by
way of example and not limitation.

       

      (iv)           The
terms “documents” and
“papers” includes any
and all instruments, documents, agreements, certificates, notices, reports,
financial statements and other writings, however evidenced, whether in physical
or electronic form.

       

      (c)           In
the computation of periods of time from a specified date to a later specified
date, the word “from”
means “from and
including”; the words “to” and “until” each mean “to but excluding”; and the
word “through” means
“to and
including.”

       

      (d)           Section
headings herein and in the other Loan Papers are included for convenience of
reference only and shall not affect the interpretation of this Agreement or any
other Loan Papers.

       

      
        	
                1.3  

              	
                Accounting
      Principles.

              

      

       

      (a)           Under
the Loan Papers and any documents delivered thereunder, unless otherwise stated,
(i) all accounting terms not specifically or completely defined herein shall be
construed in conformity with, and all financial data (including financial ratios
and other financial calculations) required to be submitted pursuant to this
Agreement shall be prepared in conformity with, GAAP applied on a consistent
basis, as in effect from time to time, applied in a manner consistent with that
used in preparing the audited Financial Statements delivered pursuant to Section
9.1, (ii) all accounting principles applied in a current period must be
comparable in all material respects to those applied during the preceding
comparable period, and (iii) while VRI has any consolidated Restricted
Subsidiaries, all accounting and financial terms and compliance with financial
covenants must be on a consolidating and consolidated basis, as
applicable.

       

      (b)           If
at any time any change in GAAP would affect the computation of any financial
ratio or requirement set forth in any Loan Paper, and either Borrower or
Required Lenders shall so request, Administrative Agent, Lenders and Borrower
shall negotiate in good faith to amend such ratio or requirement to preserve the
original intent thereof in light of such change in GAAP (subject to the approval
of Required Lenders); provided
that, until so amended, (i) such ratio or requirement shall continue to
be computed in accordance with GAAP prior to such change therein, and (ii)
Borrower shall provide to Administrative Agent and Lenders financial statements
and other documents required under this Agreement or as reasonably requested
hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in
GAAP.

       

      (c)           All
references herein to consolidated financial statements of VRI and its
Subsidiaries or its Restricted Subsidiaries, or to the determination of “Adjusted EBITDA” or “Funded Debt” for VRI and its
Subsidiaries or its Restricted Subsidiaries on a consolidated basis, or any
similar reference, shall, in each case, be deemed to include each variable
interest entity that VRI is required to consolidate pursuant to FASB
Interpretation No. 46 – Consolidation of Variable Interest Entities: an
interpretation of ARB No. 51 (January 2003) or is otherwise required to
consolidate in accordance with GAAP; provided, that in determining such
amounts, (i) the Funded Debt and Adjusted EBITDA of the Existing Housing
Districts in respect of the Existing Housing Bonds shall be excluded, and (ii)
the Funded Debt and Adjusted EBITDA of the Existing Metro Districts in respect
of any Bonds issued prior to the Closing Date shall be excluded.

       

      
        	
                1.4  

              	
                Rounding.

              

      

       

      Any
financial ratios required to be maintained by the Companies pursuant to this
Agreement shall be calculated by dividing the appropriate component by the other
component, carrying the result to one place more than the number of places by
which such ratio is expressed herein and rounding the result up or down to the
nearest number (with a rounding-up if there is no nearest number).

       

      
        	
                1.5  

              	
                References to
      Agreements and Laws.

              

      

       

      Unless
otherwise expressly provided herein, (a) references to organization documents,
agreements (including the Loan Papers) and other contractual instruments shall
be deemed to include all subsequent amendments, restatements, extensions,
supplements and other modifications thereto, but only to the extent that such
amendments, restatements, extensions, supplements and other modifications are
not prohibited by any Loan Papers, and (b) references to any Law shall include
all statutory and regulatory provisions consolidating, amending, replacing,
supplementing or interpreting such Law.

       

      
        	
                1.6  

              	
                Times of
      Day.

              

      

       

      Unless
otherwise specified, all references herein to times of day shall be references
to central time (daylight or standard, as applicable).

       

      
        	
                1.7  

              	
                L/C
      Amounts.

              

      

       

      Unless
otherwise specified, all references herein to the amount of an L/C at any time
shall be deemed to mean the maximum face amount of such L/C after giving effect
to all increases thereof contemplated by such L/C, the L/C Agreement therefor,
or any other document, agreement, or instrument entered into by any L/C Issuer
and Borrower or in favor of the applicable L/C Issuer relating to such L/C,
whether or not such maximum face amount is in effect at such time.

       

      
        	
                SECTION
      2                        

              	
                COMMITMENT.

              

      

       

      
        	
                2.1  

              	
                Credit
      Facility.

              

      

       

      Subject
to the provisions in the Loan Papers, each Lender hereby severally and not
jointly agrees to lend to Borrower its Commitment Percentage of one or more
Revolver Loans in an aggregate principal amount outstanding at any time up to
such Lender’s Commitment; provided
that:  (i) each Revolver Loan must occur on a Business Day
and no later than the Business Day immediately preceding the Termination Date;
(ii) each Revolver Loan must be in an amount not less than (A) $500,000 or
a greater integral multiple of $100,000 (if a Base Rate Loan), or (B) $1,000,000
or a greater integral multiple of $100,000 (if a LIBOR Loan); and (iii) on
any date of determination, after giving effect to the requested Loan, (A) the
Commitment Usage may not exceed the Total Commitment then in effect, and (B) the
aggregate Outstanding Amount of the Revolver Loans of any Lender, plus such Lender’s Commitment
Percentage of the Outstanding Amount of all L/C Exposure, plus such Lender’s Commitment
Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed
such Lender’s Commitment.  Revolver Loans may be repaid or reborrowed
from time to time in accordance with the terms and provisions of the Loan
Papers.

       

      
        	
                2.2  

              	
                Loan
      Procedure.

              

      

       

      (a)           Each
borrowing of Revolver Loans hereunder, conversion of Revolver Loans from one
Type to the other, and continuation of Revolver Loans that are LIBOR Loans shall
be made upon Borrower’s irrevocable notice to Administrative Agent, which may be
given by telephone.  Each such notice must be received by
Administrative Agent not later than 11:00 a.m. (i) three Business Days prior to
the requested date of any Loan of, conversion to, or continuation of Revolver
Loans that are LIBOR Loans or of any conversion of Revolver Loans that are LIBOR
Loans to Base Rate Loans, and (ii) on the requested date of any Base Rate
Loan.  Each telephonic notice by Borrower pursuant to this Section
2.2 must be confirmed promptly by delivery to Administrative Agent of a
written Loan Notice, appropriately completed and signed by a Responsible Officer
of Borrower.  Each borrowing of, conversion to, or continuation of
Revolver Loans that are LIBOR Loans shall be in amounts set forth in Section
2.1.  Each Loan Notice (whether telephonic or written) shall
specify (i) whether Borrower is requesting a Revolver Loan, a conversion of
Revolver Loans from one Type to the other, or a continuation of Revolver Loans
as LIBOR Loans, (ii) the requested date of the borrowing (such date, a “Loan
Date”), conversion or continuation, as the case may be (which shall be a
Business Day), (iii) the principal amount of Revolver Loans to be borrowed,
converted or continued, (iv) the Type of Revolver Loans to be borrowed or to
which existing Revolver Loans are to be converted, and (v) if applicable, the
duration of the Interest Period with respect thereto.  If Borrower
fails to specify a Type of Revolver Loan in a Loan Notice or if Borrower fails
to give a timely notice requesting a conversion or continuation, then the
applicable Revolver Loans shall be made as, or converted to, Base Rate
Loans.  Any such automatic conversion to Base Rate Loans shall be
effective as of the last day of the Interest Period then in effect with respect
to the applicable Revolver Loans that are LIBOR Loans.  If Borrower
requests a borrowing of, conversion to, or continuation of Revolver Loans that
are LIBOR Loans in any such Loan Notice, but fails to specify an Interest
Period, it will be deemed to have specified an Interest Period of one
month.  Administrative Agent shall promptly notify each Lender of its
receipt of any Loan Notice and its contents.

       

      (b)           Each
Lender shall remit its Commitment Percentage of each requested Revolver Loan to
Administrative Agent’s principal office in Dallas, Texas, in funds that are
available for immediate use by Administrative Agent by 12:00 noon on the
applicable Loan Date.  Subject to receipt of such funds,
Administrative Agent shall (unless to its actual knowledge any of the applicable
conditions precedent have not been satisfied by Borrower or waived by Required
Lenders) make such funds available to Borrower as directed in the Loan Notice;
provided however, that
if on the date of such Loan Notice there are L/C Borrowings outstanding, then
the proceeds of such Revolver Loans shall be provided, first, to the payment in full
of any such L/C Borrowing, and then, to Borrower as provided
herein.

       

      (c)           
Unless Administrative Agent shall have received notice from a Lender prior to
the proposed date of any Revolver Loan that such Lender will not make available
to Administrative Agent such Lender’s share of such Revolver Loan (or, in the
case of any Base Rate Loan, prior to 12:00 noon on the date of such Base Rate
Loan), Administrative Agent may assume that such Lender has made such share
available on such date in accordance with Section 2.2(b)
and may, in reliance upon such assumption, make available to Borrower a
corresponding amount.  In such event, if a Lender has not in fact made
its share of the applicable Revolver Loan available to Administrative Agent,
then the applicable Lender and Borrower severally agree to pay to Administrative
Agent forthwith on demand such corresponding amount in immediately available
funds with interest thereon, for each day from and including the date such
amount is made available to Borrower to but excluding the date of payment to
Administrative Agent, at (A) in the case of a payment to be made by such Lender,
the greater of the Federal Funds Rate and a rate determined by Administrative
Agent in accordance with banking industry rules on interbank compensation, and
(B) in the case of a payment to be made by Borrower, the interest rate
applicable to Base Rate Loans.  If Borrower and such Lender shall pay
such interest to Administrative Agent for the same or an overlapping period,
Administrative Agent shall promptly remit to Borrower the amount of such
interest paid by Borrower for such period.  If such Lender pays its
share of the applicable Revolver Loan to Administrative Agent, then the amount
so paid shall constitute such Lender’s Loan included in such Revolver
Loan.  Any payment by Borrower shall be without prejudice to any claim
Borrower may have against a Lender that shall have failed to make such payment
to Administrative Agent.

       

      (d)           Unless
Administrative Agent shall have received notice from Borrower prior to the date
on which any payment is due to Administrative Agent for the account of Lenders
or any L/C Issuer hereunder that Borrower will not make such payment,
Administrative Agent may assume that Borrower has made such payment on such date
in accordance herewith and may, in reliance upon such assumption, distribute to
Lenders or the applicable L/C Issuer, as the case may be, the amount
due.  In such event, if Borrower has not in fact made such payment,
then each Lender or the applicable L/C Issuer, as the case may be, severally
agrees to repay to Administrative Agent forthwith on demand the amount so
distributed to such Lender or the applicable L/C Issuer, in immediately
available funds with interest thereon, for each day from and including the date
such amount is distributed to it to but excluding the date of payment to
Administrative Agent, at the greater of the Federal Funds Rate and a rate
determined by Administrative Agent in accordance with banking industry rules on
interbank compensation.  A notice of Administrative Agent to any
Lender or Borrower with respect to any amount owing under this subsection
(d) shall be conclusive, absent manifest error.

       

      (e)           The
obligations of Lenders hereunder to make Loans, to fund participations in L/Cs
and Swing Line Loans, and to make payments pursuant to Section
15.4(c) are several and not joint.  The failure of any Lender
to make any Loan, to fund any such participation, or to make any payment under
Section
15.4(c) on any date required hereunder shall not relieve any other Lender
of its corresponding obligation to do so on such date, and no Lender shall be
responsible for the failure of any other Lender to so make its Loan, to purchase
its participation, or to make its payment under Section
15.4(c).

       

      
        	
                2.3  

              	
                L/C
      Subfacility.

              

      

       

      (a)           The L/C
Commitment.

       

      (i)           Subject
to the terms and conditions set forth herein, (A) each L/C Issuer agrees, in
reliance upon the agreements of the other Lenders set forth in this Section
2.3, (1) from time to time on any Business Day during the period from the
Closing Date until the L/C Expiration Date, to issue L/Cs for the account of
Borrower, and to amend or renew L/Cs previously issued by it, in accordance with
subsection
(b) below, and (2) to honor sight drafts under the L/Cs; and (B) Lenders
severally agree to participate in L/Cs issued for the account of Borrower; provided that no L/C Issuer
shall be obligated to make any L/C Credit Extension with respect to any L/C, and
no Lender shall be obligated to participate in any L/C, if as of the date of
such L/C Credit Extension (after giving effect to any proposed L/C Credit
Extension on such date), (x) the Commitment Usage would exceed the Total
Commitment, (y) the aggregate Outstanding Amount of the Revolver Loans of such
Lender, plus such
Lender’s Commitment Percentage of the Outstanding Amount of all L/C Exposure,
plus such Lender’s
Commitment Percentage of the Outstanding Amount of all Swing Line Loans would
exceed such Lender’s Commitment, or (z) the Outstanding Amount of the L/C
Exposure would exceed the L/C Sublimit.  Within the foregoing limits,
and subject to the terms and conditions hereof, Borrower’s ability to obtain
L/Cs shall be fully revolving; accordingly Borrower may, during the foregoing
period, obtain L/Cs to replace L/Cs that have expired or that have been drawn
upon and reimbursed.  All L/Cs existing on the Closing Date and set
forth on Part A of Schedule
2.3 shall be deemed to have been issued pursuant hereto, and from and
after the Closing Date shall be subject to and governed by the terms and
conditions hereof.

       

      (ii)           Neither
L/C Issuer shall be under any obligation to issue any L/C if:

       

      (A)           any
order, judgment or decree of any Governmental Authority or arbitrator shall by
its terms purport to enjoin or restrain the applicable L/C Issuer from issuing
such L/C, or any Law applicable to the applicable L/C Issuer or any request or
directive (whether or not having the force of Law) from any Governmental
Authority with jurisdiction over the applicable L/C Issuer shall prohibit, or
request that such L/C Issuer refrain from, the issuance of letters of credit
generally or such L/C in particular or shall impose upon the applicable L/C
Issuer with respect to such L/C any restriction, reserve or capital requirement
(for which such L/C Issuer is not otherwise compensated hereunder) not in effect
on the Closing Date, or shall impose upon the applicable L/C Issuer any
unreimbursed loss, cost or expense which was not applicable on the Closing Date
and which such L/C Issuer in good faith deems material to it;

       

      (B)           subject
to Section
2.3(b)(iii), the expiry date of such requested L/C would occur more than
thirteen months after the date of issuance or last renewal, unless Required
Lenders have approved such expiry date or unless the requested L/C is a Bond
L/C, in which case the Bond L/C will expire in accordance with the terms set
forth in the applicable Bond L/C as approved by the applicable L/C Issuer and
Administrative Agent in accordance with Section
2.3(j);

       

      (C)           the
expiry date of such requested L/C would occur after the L/C Expiration Date,
unless Required Lenders have approved such expiry date;

       

      (D)           the
issuance of such L/C would violate one or more policies of the applicable L/C
Issuer; or

       

      (E)           such
L/C is to be denominated in a currency other than Dollars.

       

      (iii)           Neither
L/C Issuer shall be under any obligation to amend any L/C if (A) such L/C Issuer
would have no obligation at such time to issue such L/C in its amended form
under the terms hereof, or (B) the beneficiary of such L/C does not accept the
proposed amendment to such L/C.

       

      (b)           Procedures for
Issuance and Amendment of Letters of
Credit:  Auto-Extension Letters of
Credit.

       

      (i)           Each
L/C shall be issued or amended, as the case may be, upon the request of Borrower
delivered to the applicable L/C Issuer (with a copy to Administrative Agent) in
the form of an L/C Agreement, appropriately completed and signed by a
Responsible Officer of Borrower.  Such L/C Agreement must be received
by the applicable L/C Issuer and Administrative Agent not later than 11:00 a.m.
at least two Business Days (or such later date and time as the applicable L/C
Issuer may agree in a particular instance in its sole discretion) prior to the
proposed issuance date or date of amendment, as the case may be.  In
the case of a request for an initial issuance of an L/C, such L/C Agreement
shall specify in form and detail satisfactory to the applicable L/C Issuer: (A)
the proposed issuance date of the requested L/C (which shall be a Business Day);
(B) the amount thereof; (C) the expiry date thereof; (D) the name and address of
the beneficiary thereof; (E) the documents to be presented by such beneficiary
in case of any drawing thereunder; (F) the full text of any certificate to be
presented by such beneficiary in case of any drawing thereunder; and (G) such
other matters as the applicable L/C Issuer (or, in the case of the Bond L/Cs,
the applicable L/C Issuer or Administrative Agent) may require.  In
the case of a request for an amendment of any outstanding L/C, such L/C
Agreement shall specify in form and detail satisfactory to the applicable L/C
Issuer (A) the L/C to be amended; (B) the proposed date of amendment thereof
(which shall be a Business Day); (C) the nature of the proposed amendment; and
(D) such other matters as the applicable L/C Issuer (or, in the case of the Bond
L/Cs, the applicable L/C Issuer or Administrative Agent) may
require.

       

      (ii)           Promptly
after receipt of any L/C Agreement, the applicable L/C Issuer will confirm with
Administrative Agent (by telephone or in writing) that Administrative Agent has
received a copy of such L/C Agreement from Borrower and, if not, such L/C Issuer
will provide Administrative Agent with a copy thereof.  Upon receipt
by the applicable L/C Issuer of confirmation from Administrative Agent that the
requested issuance or amendment is permitted in accordance with the terms
hereof, then, subject to the terms and conditions hereof, such L/C Issuer shall,
on the requested date, issue an L/C for the account of Borrower or enter into
the applicable amendment, as the case may be, in each case in accordance with
such L/C Issuer's usual and customary business practices.  Immediately
upon the issuance of each L/C, each Lender shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from the applicable L/C
Issuer a risk participation in such L/C in an amount equal to such Lender’s
Commitment Percentage of the amount of such L/C.

       

      (iii)           If  Borrower
so requests in any applicable L/C Agreement, the applicable L/C Issuer may, in
its sole and absolute discretion, agree to issue an L/C that has automatic
extension provisions (each, an “Auto-Extension L/C”);
provided that any such
Auto-Extension L/C must permit the applicable L/C Issuer to prevent any such
extension at least once in each twelve-month period (commencing with the date of
issuance of such L/C) by giving prior notice to the beneficiary thereof not
later than a day (the “Nonextension
Notice Date”) in each such twelve-month period to be agreed upon at the
time such L/C is issued.  Unless otherwise directed by the applicable
L/C Issuer, Borrower shall not be required to make a specific request to such
L/C Issuer for any such extension.  Once an Auto-Extension L/C has
been issued, Lenders shall be deemed to have authorized (but may not require)
the applicable L/C Issuer to permit the extension of such L/C at any time to an
expiry date not later than the L/C Expiration Date; provided, however, that the
applicable L/C Issuer shall not permit any such extension if (A) such L/C Issuer
has determined that it would have no obligation at such time to issue such L/C
in its extended form under the terms hereof (by reason of the provisions of
Section
2.3(a)(ii) or otherwise), or
(B) it has received notice (which may be by telephone or in writing) on or
before the day that is five Business Days before the Nonextension Notice Date
(1) from  Administrative Agent that Required Lenders have elected not
to permit such extension or (2) from Administrative Agent, any Lender, or
Borrower that one or more of the applicable conditions specified in Section
7.2 is not then satisfied.

       

      (iv)           Promptly
after its delivery of any L/C or any amendment to an L/C to an advising bank
with respect thereto or to the beneficiary thereof, the applicable L/C Issuer
will also deliver to Borrower and Administrative Agent a true and complete copy
of such L/C or amendment.

       

      (c)           Drawings and
Reimbursements; Funding of Participations.

       

      (i)           Upon
receipt from the beneficiary of any L/C of any notice of a drawing under such
L/C, the applicable L/C Issuer shall notify Borrower and Administrative Agent
thereof.  Not later than 11:00 a.m. on the date of any payment by the
applicable L/C Issuer under an L/C (each such date, an “Honor
Date”), Borrower shall reimburse such L/C Issuer through Administrative
Agent in an amount equal to the amount of such drawing.  If Borrower
fails to so reimburse such L/C Issuer by such time, Administrative Agent shall
promptly notify each Lender of the Honor Date, the amount of the unreimbursed
drawing (the “Unreimbursed
Amount”), and the amount of such Lender’s Commitment Percentage
thereof.  In such event, Borrower shall be deemed to have requested a
Base Rate Loan hereunder to be disbursed on the Honor Date in an amount equal to
the Unreimbursed Amount, without regard to the minimum and multiples specified
in Section
2.1 for the principal amount of Base Rate Loans, but subject to the
amount of the unutilized portion of the Total Commitment and the conditions set
forth in Section
7.2 (other than the delivery of a Loan Notice).  Any notice
given by any L/C Issuer or Administrative Agent pursuant to this Section
2.3(c)(i) may be given by telephone if immediately confirmed in writing;
provided that the lack
of such an immediate confirmation shall not affect the conclusiveness or binding
effect of such notice.

       

      (ii)           Each
Lender (including any Lender acting as an L/C Issuer) shall upon any notice
pursuant to Section
2.3(c)(i) make funds available to  Administrative Agent for the
account of the applicable L/C Issuer at Administrative Agent’s Office in an
amount equal to its Commitment Percentage of the Unreimbursed Amount not later
than 1:00 p.m. on the Business Day specified in such notice by Administrative
Agent; whereupon, subject to the provisions of Section
2.3(c)(iii), each Lender that so makes funds available shall be deemed to
have made a Base Rate Loan hereunder to Borrower in such
amount.  Administrative Agent shall remit the funds so received to the
applicable L/C Issuer.

       

      (iii)           With
respect to any Unreimbursed Amount that is not fully refinanced by a Revolver
Loan because the conditions set forth in Section
7.2 cannot be satisfied or for any other reason, Borrower shall be deemed
to have incurred from the applicable L/C Issuer an L/C Borrowing in the amount
of the Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall
be due and payable on demand (together with interest) and shall bear interest at
the Default Rate.  In such event, each Lender’s payment to
Administrative Agent for the account of the applicable L/C Issuer pursuant to
Section
2.3(c)(ii) shall be deemed payment in respect of its participation in
such L/C Borrowing in satisfaction of its participation obligation under this
Section
2.3.

       

      (iv)           Until
each Lender funds its portion of a Revolver Loan or participation in an L/C
Borrowing pursuant to this Section
2.3(c) to
reimburse the applicable L/C Issuer for any amount drawn under any L/C, interest
in respect of such Lender’s Commitment Percentage of such amount shall be solely
for the account of the applicable L/C Issuer.

       

      (v)           Each
Lender’s obligation to reimburse the L/C Issuers for amounts drawn under L/Cs
(whether by making a Revolver Loans or funding its participation in an L/C
Borrowing), as contemplated by this Section
2.3(c), shall be absolute and unconditional and shall not be affected by
any circumstance, including (A) any set-off, counterclaim, recoupment, defense
or other right which such Lender may have against the applicable L/C Issuer,
Borrower or any other Person for any reason whatsoever; (B) the occurrence or
continuance of a Default or Potential Default, or (C) any other occurrence,
event or condition, whether or not similar to any of the foregoing; provided, however, that each
Lender’s obligation to make Revolver Loans pursuant to this Section
2.3(c) is subject to the conditions set forth in Section
7.2 (other than delivery by Borrower of a Loan Notice).  No
funding of a participation in an L/C Borrowing shall relieve or otherwise impair
the obligation of Borrower to reimburse the applicable L/C Issuer for the amount
of any payment made by such L/C Issuer under any L/C, together with interest as
provided herein.

       

      (vi)           If
any Lender fails to make available to Administrative Agent for the account of
the applicable L/C Issuer any amount required to be paid by such Lender pursuant
to the foregoing provisions of this Section
2.3(c) by the time specified in Section
2.3(c)(ii), the applicable L/C Issuer shall be entitled to recover from
such Lender (acting through Administrative Agent), on demand, such amount with
interest thereon for the period from the date such payment is required to the
date on which such payment is immediately available to the applicable L/C Issuer
at a rate per annum equal to the Federal Funds Rate from time to time in
effect.  A certificate of the applicable L/C Issuer submitted to any
Lender (through Administrative Agent) with respect to any amounts owing under
this clause
(vi) shall be conclusive absent manifest error.

       

      (d)           Repayment of
Participations.

       

      (i)           At
any time after an L/C Issuer has made a payment under any L/C and has received
from any Lender such Lender’s funding of its participation in the related L/C
Borrowing in accordance with Section
2.3(c), if Administrative Agent receives for the account of such L/C
Issuer any payment in respect of the related Unreimbursed Amount or interest
thereon (whether directly from Borrower or otherwise, including proceeds of Cash
Collateral applied thereto by Administrative Agent), Administrative Agent will
distribute to such Lender its Commitment Percentage thereof (appropriately
adjusted, in the case of interest payments, to reflect the period of time during
which such Lender’s participation in the L/C Borrowing was outstanding) in the
same funds as those received by Administrative Agent.

       

      (ii)           If
any payment received by Administrative Agent for the account of any L/C Issuer
pursuant to Section
2.3(c)(i) is required to be returned under any of the circumstances
described in Section 15.12
(including pursuant to any settlement entered into by the applicable L/C
Issuer in its discretion), each Lender shall pay to Administrative Agent for the
account of the applicable L/C Issuer its Commitment Percentage thereof on demand
of Administrative Agent, plus interest thereon from the date of such demand to
the date such amount is returned by such Lender, at a rate per annum equal to
the Federal Funds Rate from time to time in effect.

       

      (e)           Obligations
Absolute. The obligation of
Borrower to reimburse the applicable L/C Issuer for each drawing under each L/C
and to repay each L/C Borrowing shall be absolute, unconditional and
irrevocable, and shall be paid strictly in accordance with the terms of this
Agreement under all circumstances, including the following:

       

      (i)           any
lack of validity or enforceability of such L/C, this Agreement, or any other
agreement or instrument relating thereto;

       

      (ii)           the
existence of any claim, counterclaim, set-off, defense or other right that
Borrower may have at any time against any beneficiary or any transferee of such
L/C (or any Person for whom any such beneficiary or any such transferee may be
acting), the applicable L/C Issuer or any other Person, whether in connection
with this Agreement, the transactions contemplated hereby or by such L/C or any
agreement or instrument relating thereto, or any unrelated
transaction;

       

      (iii)           any
draft, demand, certificate or other document presented under such L/C proving to
be forged, fraudulent, invalid or insufficient in any respect or any statement
therein being untrue or inaccurate in any respect; or any loss or delay in the
transmission or otherwise of any document required in order to make a drawing
under such L/C;

       

      (iv)           any
payment by the applicable L/C Issuer under such L/C against presentation of a
draft or certificate that does not strictly comply with the terms of such L/C;
or any payment made by the applicable L/C Issuer under such L/C to any Person
purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the
benefit of creditors, liquidator, receiver or other representative of or
successor to any beneficiary or any transferee of such L/C, including any
arising in connection with any proceeding under any Debtor Relief Law;
or

       

      (v)           any
other circumstance or happening whatsoever, whether or not similar to any of the
foregoing, including any other circumstance that might otherwise constitute a
defense available to, or a discharge of, Borrower.

       

      Borrower
shall promptly examine a copy of each L/C and each amendment thereto that is
delivered to it and, in the event of any claim of noncompliance with Borrower’s
instructions or other irregularity, Borrower will immediately notify the
applicable L/C Issuer.  Borrower shall be conclusively deemed to have
waived any such claim against the applicable L/C Issuer and its correspondents
unless such notice is given as aforesaid.

       

      (f)           Role of L/C
Issuers Each
Lender and Borrower agree that, in paying any drawing under an L/C, the
applicable L/C Issuer shall not have any responsibility to obtain any document
(other than any sight draft, certificates and documents expressly required by
the L/C) or to ascertain or inquire as to the validity or accuracy of any such
document or the authority of the Person executing or delivering any such
document.  None of the L/C Issuers, any Related Party of the
Administrative Agent, or any of the respective correspondents, participants, or
assignees of the L/C Issuers shall be liable to any Lender for (i) any action
taken or omitted in connection herewith at the request or with the approval of
Lenders or Required Lenders, as applicable; (ii) any action taken or omitted in
the absence of gross negligence or willful misconduct; or (iii) the due
execution, effectiveness, validity or enforceability of any document or
instrument related to any L/C or L/C Agreement.  Borrower hereby
assumes all risks of the acts or omissions of any beneficiary or transferee with
respect to its use of any L/C; provided, however, that this
assumption is not intended to, and shall not, preclude Borrower’s pursuing such
rights and remedies as it may have against the beneficiary or transferee at Law
or under any other agreement.  None of the L/C Issuers, any Related
Party of the Administrative Agent, or any of the respective correspondents,
participants, or assignees of any L/C Issuer shall be liable or responsible for
any of the matters described in clauses
(i) through (v) of
Section
2.3(e); provided,
however, that anything in such clauses to the contrary notwithstanding,
Borrower may have a claim against an L/C Issuer, and an L/C Issuer may be liable
to  Borrower, to the extent, but only to the extent, of any direct, as
opposed to consequential or exemplary, damages suffered by  Borrower
which Borrower proves were caused by such L/C Issuer's willful misconduct or
gross negligence or such L/C Issuer's willful failure to pay under any L/C after
the presentation to it by the beneficiary of a sight draft and certificate(s)
strictly complying with the terms and conditions of an L/C.  In furtherance and not
in limitation of the foregoing, an L/C Issuer may accept documents that appear
on their face to be in order, without responsibility for further investigation,
regardless of any notice or information to the contrary, and an L/C Issuer shall
not be responsible for the validity or sufficiency of any instrument
transferring or assigning or purporting to transfer or assign an L/C or the
rights or benefits thereunder or proceeds thereof, in whole or in part, which
may prove to be invalid or ineffective for any reason.

       

      (g)           Cash
Collateral.

       

      (i)           Upon
the request of Administrative Agent, (A) if an L/C Issuer has honored any full
or partial drawing request under any L/C and such drawing has resulted in an L/C
Borrowing, then Borrower shall immediately Cash Collateralize the L/C Borrowing
in an amount equal to  such L/C Borrowing, or (B) if, as of the L/C
Expiration Date, any L/C may for any reason remain outstanding and partially or
wholly undrawn, then Borrower shall immediately Cash Collateralize the L/C
Exposure in an amount equal to such L/C Exposure determined as of the L/C
Expiration Date.  For purposes hereof, “Cash
Collateralize” means to pledge and deposit with or deliver to
Administrative Agent, for the benefit of the L/C Issuers and Lenders, as
collateral for the L/C Exposure, cash or deposit account balances pursuant to
documentation in form and substance satisfactory to Administrative Agent and the
L/C Issuers (which documents are hereby consented to by
Lenders).  Derivatives of such term have corresponding
meanings.   Borrower hereby grants to Administrative Agent, for
the benefit of the L/C Issuers and Lenders, a security interest in all such
cash, deposit accounts and all balances therein and all proceeds of the
foregoing.  Cash Collateral shall be maintained in blocked,
non-interest bearing deposit accounts at Bank of America.

       

      (ii)           If
at any time (A) the L/C Exposure exceeds the L/C Sublimit or (B) the Commitment
Usage exceeds the Total Commitment (after giving effect to all prepayments
required under Section
3.2(d)), then Borrower shall immediately Cash Collateralize the L/C
Exposure in an amount equal to the greater of (x) the amount by which the L/C
Exposure exceeds the L/C Sublimit, or (y) the amount by which the Commitment
Usage exceeds the Total Commitment.

       

      (iii)           Notwithstanding
any provision to the contrary in any Bond Document, all Bonds (including,
without limitation, “Repurchased Bonds” as defined
in the Bond Documents) issued to or held for the benefit of any L/C Issuer (or
other designee) shall be held as Cash Collateral securing reimbursement
obligations under the related Bond L/C (including, without limitation, any L/C
Borrowing).

       

      (h)           Applicability of
ISP and UCP. Unless otherwise
expressly agreed by the applicable L/C Issuer and Borrower when an L/C is issued
(including any such agreement applicable to any L/C set forth on Part A of Schedule
2.3), (i) the rules of the ISP shall apply to each standby L/C and each
Bond L/C, and (ii) the rules of the Uniform Customs and Practice for Documentary
Credits (“UCP”), as
most recently published by the International Chamber of Commerce at the time of
issuance, shall apply to each commercial L/C.

       

      (i)           Conflict with L/C
Agreement.  In the event of any conflict between the terms
hereof and the terms of any L/C Agreement, the terms hereof shall
control.

       

      (j)           Bond
L/Cs.  Notwithstanding any provision to the contrary set forth
in this Section
2.3:

       

      (i)           (A)           The
Bond L/Cs shall be subject to the terms and conditions of this Agreement and
applicable Law; provided
however, that (1) such Bond L/Cs may have expiration dates later than
thirteen months from the date of issuance, so long as such date is not later
than the L/C Expiration Date; and (2) the terms of such Bond L/Cs must be
acceptable to the applicable L/C Issuer and Administrative Agent, and, (I)
subject to the provisions of Section
2.3(j)(ii) and 2.3(j)(iii),
may provide for the reinstatement of drawn portions of the Bond L/C, whether or
not reimbursement has been received (which may have the effect of increasing the
amount of such Bond L/C), (II) may provide for automatic extensions thereof, so
long as such terms comply with the auto extension provisions set forth in Section
2.3(b)(iii) hereof, and (III) may contain provisions whereby the
applicable L/C Issuer is granted certain Rights in collateral and voting Rights
under the related Bond Documents, which Rights are expressly assigned by the
applicable L/C Issuer to Administrative Agent for the benefit of Lenders
pursuant to Section
2.3(j)(iv) herein.

       

      (B)           Borrower
may request that an L/C Issuer issue Bond L/Cs by providing at least 30 days
prior written notice of such request to the applicable L/C Issuer, and by
delivering a certificate at least 30 days prior to the issuance of any Bond L/C
to Administrative Agent demonstrating the Companies’ pro forma compliance with
the financial covenants set forth in Section
11.1 herein, after giving effect to the issuance of any such Bonds and,
without duplication, any Debt incurred by Borrower or any Company in support
thereof, and certifying that no Default or Potential Default exists or would
result after giving effect thereto.

       

      (ii)           In
the event that the proceeds of any drawing under any Bond L/C are used to pay
the purchase price of Bonds tendered or deemed tendered by the owner thereof
pursuant to the related Bond Documents (such drawing, including the drawing of
any accrued interest on the tendered Bonds, a “Bond Purchase
Drawing”), then the stated amount of such Bond L/C will be temporarily
reduced by the amount of such drawing, subject to automatic reinstatement
(whether or not reimbursement for any drawings thereunder has been received or
the conditions set forth in Section
7.2 have been satisfied, and without
further approval from Lenders) pursuant to the provisions of the applicable Bond
L/C by an amount equal to the Bond Purchase Drawing, so long as (A) the
applicable L/C Issuer (or Administrative Agent, as assignee of such L/C Issuer)
has been properly accounted for on the securities depository’s records as the
beneficial owner of such Bonds purchased with the proceeds (or portion thereof)
of the Bond L/C, or (B) such Bonds have been delivered to the appropriate
custodian and registered as directed by such L/C Issuer (or Administrative
Agent, as assignee of such L/C Issuer), or (c) to the extent provided for in the
applicable Bond L/C, such Bonds have been remarketed in accordance with the
terms of the applicable Bond Documents and released by the applicable L/C
Issuer; provided
however, that if the repurchased Bonds are not transferred to such L/C
Issuer (or Administrative Agent, as assignee of such L/C Issuer) as required in
clauses (A)
and
(B) preceding, then the
applicable L/C Issuer shall notify Administrative Agent (who shall subsequently
notify Lenders) of such failure.  Unless otherwise directed by
Required Lenders, the applicable L/C Issuer shall then deliver notice to the
applicable Trustee prior to the fifth Business Day after any such Bond Purchase
Drawing that the amount of such drawing will not be reinstated.

       

      (iii)           If
the interest portion of any Bond L/C is drawn by the applicable Trustee to make
scheduled interest payments on the outstanding principal amount of the Bonds,
then the stated amount of such Bond L/C will be temporarily reduced by the
amount of such drawing, subject to automatic reinstatement of the interest
portion of such Bond L/C (whether or not reimbursement for any drawings
thereunder has been received or the conditions set forth in Section
7.2 have been satisfied, and without further approval from Lenders)
pursuant to the provisions of the applicable Bond L/C.  Subject to
compliance with Section 2.3(b)
herein, the stated amount of the related Bond L/C may be increased as
required by the related Bond Documents (to reflect an increase in the maximum
rate of interest or number of days of accrued interest covered by such Bond L/C
or otherwise).

       

      (iv)           All
liens and security interests securing reimbursement obligations and other
obligations owed to the applicable L/C Issuer of any Bond L/C under the related
Bond Documents (including, without limitation, any L/C Borrowing), any rights in
and to any Bonds or other certificates of indebtedness issued to such L/C Issuer
under the related Bond Documents, and any voting rights or other rights created
in favor of such L/C Issuer under or pursuant to or in connection with any
related Bond Documents (collectively, the “Bond
Rights”), now or hereafter existing in favor of such L/C Issuer, are
hereby assigned and conveyed by the applicable L/C Issuer to Administrative
Agent for the ratable benefit of Lenders.  Notwithstanding anything to
the contrary set forth in any Bond L/C, any Bonds or certificates of
indebtedness purchased from the owner thereof by the applicable Trustee with
funds received pursuant to a drawing under any Bond L/C shall be registered in
the name of Administrative Agent and shall be delivered to or held by
Administrative Agent or such other entity as may be specified by the applicable
L/C Issuer and approved by Administrative Agent in a written instrument
delivered to the applicable Trustee, for the benefit of the applicable L/C
Issuer, Administrative Agent, and the other Lenders.  Each L/C Issuer
of a Bond L/C agrees to execute all such other assignments, conveyances,
financing statements, and other documents required by Administrative Agent to
effect the requirements of this Section
2.3(j)(iv); provided that, Lenders,
Administrative Agent, and such L/C Issuer agree that in the event any Bonds or
certificates of indebtedness are issued to such L/C Issuer (or Administrative
Agent as the assignee of such L/C Issuer) as a result of a drawing by the
applicable Trustee under the Bond L/C for which such L/C Issuer is not
immediately reimbursed, and subsequently the Bonds are remarketed and such L/C
Issuer is reimbursed for all amounts so advanced (which reimbursement may be a
repayment of any Loan disbursed by Lenders as payment of the related L/C
reimbursement obligations under Section
2.3(c) or a repayment of an L/C Borrowing), then any Bonds or
certificates of indebtedness shall be released by Administrative Agent and
delivered to such Trustee without any further authorization from Lenders or such
L/C Issuer.

       

      (v)           To
the extent Rights (including, without limitation, voting rights, rights to
provide notice and elect remedies, and rights to approve waivers, consents, or
amendments of the related Bond Documents) are created in favor of the L/C
Issuers of any Bond L/C, such Rights (other than ministerial, non discretionary
Rights) may only be exercised with the consent, or in accordance with the
directions, of Required Lenders.

       

      (vi)           In
the event of any conflict between the terms and provisions of this Section
2.3 relating to Bond L/Cs and the terms and provisions of any Loan Paper
relating to L/Cs (other than Bond L/Cs), the terms and provisions of this Section
2.3 shall control.

       

      (k)           L/Cs Issued for
Subsidiaries.  Notwithstanding that an L/C issued or
outstanding hereunder is in support of any obligations of, or is for the account
of, a Subsidiary of Borrower or a Metro District, Borrower shall be obligated to
reimburse the applicable L/C Issuer hereunder for any and all drawings under
such L/C.  Borrower hereby acknowledges that the issuance of L/Cs for
the account of Subsidiaries of Borrower or a Metro District inures to the
benefit of Borrower, and that Borrower’s business derives substantial benefits
from the businesses of such Subsidiaries.

       

      
        	
                2.4  

              	
                Swing Line
      Loans.

              

      

       

      (a)           The Swing
Line.  Subject to the terms and conditions set forth herein,
each Swing Line Lender agrees (severally, not jointly), in reliance upon the
agreements of the other Lenders set forth in this Section
2.4, to make loans (each such loan, a “Swing Line
Loan”) to Borrower from time to time on any Business Day prior to the
Termination Date, notwithstanding the fact that such Swing Line Loans, when
aggregated with the Commitment Percentage of the Outstanding Amount of Revolver
Loans and L/C Exposure of such Lender acting as Swing Line Lender, may exceed
the amount of such Lender’s Commitment; provided, however, that after
giving effect to any Swing Line Loan, (i) the aggregate Outstanding Amount of
all Swing Line Loans made by the Swing Line Lenders shall not exceed the Swing
Line Sublimit, (ii) the Commitment Usage shall not exceed the Total Commitment,
and (iii) the aggregate Outstanding Amount of the Revolver Loans of any Lender,
plus such Lender’s
Commitment Percentage of the Outstanding Amount of all L/C Exposure, plus such Lender’s Commitment
Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed
such Lender’s Commitment, and provided, further, that
Borrower shall not use the proceeds of any Swing Line Loan to refinance any
outstanding Swing Line Loan.  Within the foregoing limits, and subject
to the other terms and conditions hereof, Borrower may borrow under this Section
2.4, prepay under Section
3.2, and reborrow under this Section
2.4.  Each Swing Line Loan shall be a Daily Floating LIBOR
Loan.  Immediately upon the making of a Swing Line Loan, each Lender
shall be deemed to, and hereby irrevocably and unconditionally agrees to,
purchase from the applicable Swing Line Lender a risk participation in such
Swing Line Loan in an amount equal to the product of such Lender’s Commitment
Percentage times the
amount of such Swing Line Loan.

       

      (b)           Borrowing
Procedures.  Each Swing Line Borrowing shall be made upon
Borrower’s irrevocable notice to either Swing Line Lender and Administrative
Agent, which may be given by telephone. Each such notice must be received by the
applicable Swing Line Lender and Administrative Agent not later than 12:00
noon  on the requested borrowing date, and shall specify (i) the
amount to be borrowed, which shall be a minimum of $1,000,000, and (ii) the
requested borrowing date, which shall be a Business Day.  Each such
telephonic notice must be confirmed promptly by delivery to such Swing Line
Lender and Administrative Agent of a written Swing Line Loan Notice,
appropriately completed and signed by a Responsible Officer of
Borrower.  Promptly after receipt by the applicable Swing Line Lender
of any telephonic Swing Line Loan Notice, such Swing Line Lender will confirm
with Administrative Agent (by telephone or in writing) that Administrative Agent
has also received such Swing Line Loan Notice and, if not, such Swing Line
Lender will notify Administrative Agent (by telephone or in writing) of the
contents thereof.  Unless such Swing Line Lender has received notice
(by telephone or in writing) from Administrative Agent (including at the request
of any Lender) prior to 1:00 p.m. on the date of the proposed Swing Line
Borrowing (A) directing such Swing Line Lender not to make such Swing Line Loan
as a result of the limitations set forth in the proviso to the first sentence of
Section
2.4(a), or (B) that one or more of the applicable conditions specified in
Section
7 is not then satisfied, then, subject to the terms and conditions
hereof, such Swing Line Lender will, not later than 2:00 p.m. on the borrowing
date specified in such Swing Line Loan Notice, make the amount of its Swing Line
Loan available to Borrower.

       

      (c)           Refinancing of
Swing Line Loans.

       

      (i)           Each
Swing Line Lender, as applicable, at any time in its sole and absolute
discretion may request, on behalf of Borrower (which hereby irrevocably
authorizes each Swing Line Lender to so request on its behalf), that each Lender
make a Base Rate Loan in an amount equal to such Lender's Commitment Percentage
of the Outstanding Amount of the Swing Line Loans owed to such Swing Line
Lender.  Such request shall be made in writing (which written request
shall be deemed to be a Loan Notice for purposes hereof) and in accordance with
the requirements of Section
2.2, without regard to the minimum and multiples specified in Section
2.1 for the principal amount of Base Rate Loans, but subject to the
unutilized portion of the Total Commitment and the conditions set forth in Section
7.2.  The applicable Swing Line Lender shall furnish Borrower
with a copy of the applicable Loan Notice promptly after delivering such notice
to Administrative Agent.  Each Lender shall make an amount equal to
its Commitment Percentage of the amount specified in such Loan Notice available
to Administrative Agent in immediately available funds for the account of the
applicable Swing Line Lender at Administrative Agent’s Office not later than
12:00 noon on the day specified in such Loan Notice, whereupon, subject to Section
2.4(c)(ii), each Lender that so makes funds available shall be deemed to
have made a Base Rate Loan to Borrower in such amount.  Administrative
Agent shall remit the funds so received to the applicable Swing Line
Lender.

       

      (ii)           If
for any reason any Swing Line Loan cannot be refinanced by a Revolver Loan in
accordance with Section
2.4(c)(i), the request for Base Rate Loans submitted by the applicable
Swing Line Lender as set forth herein shall be deemed to be a request by such
Swing Line Lender that each Lender fund its risk participation in the relevant
Swing Line Loans and each Lender’s payment to Administrative Agent for the
account of such Swing Line Lender pursuant to Section
2.4(c)(i) shall be deemed payment in respect of such
participation.

       

      (iii)           If
any Lender fails to make available to Administrative Agent for the account of
the applicable Swing Line Lender any amount required to be paid by such Lender
pursuant to the foregoing provisions of this Section
2.4(c) by the time specified in Section
2.4(c)(i), such Swing Line Lender shall be entitled to recover from such
Lender (acting through Administrative Agent), on demand, such amount with
interest thereon for the period from the date such payment is required to the
date on which such payment is immediately available to such Swing Line Lender at
a rate per annum equal to the greater of the Federal Funds Rate and a rate
determined by such Swing Line Lender in accordance with banking industry rules
on interbank compensation.  A certificate of such Swing Line Lender
submitted to any Lender (through Administrative Agent) with respect to any
amounts owing under this clause
(iii) shall be conclusive absent manifest error.

       

      (iv)           Each
Lender’s obligation to make Revolver Loans or to purchase and fund risk
participations in Swing Line Loans pursuant to this Section
2.4(c) shall be absolute and unconditional and shall not be affected by
any circumstance, including (A) any setoff, counterclaim, recoupment, defense,
or other right which such Lender may have against the applicable Swing Line
Lender, Borrower or any other Person for any reason whatsoever, (B) the
occurrence or continuance of a Default or Potential Default, or (C) any other
occurrence, event, or condition, whether or not similar to any of the foregoing;
provided, however, that
each Lender’s obligation to make Revolver Loans pursuant to this Section
2.4(c) is subject to the conditions set forth in Section
7.2.  No such funding of risk participations shall relieve or
otherwise impair the obligation of Borrower to repay Swing Line Loans, together
with interest as provided herein.

       

      (d)           Repayment of
Participations.

       

      (i)           At
any time after any Lender has purchased and funded a risk participation in a
Swing Line Loan, if the applicable Swing Line Lender receives any payment on
account of such Swing Line Loan, such Swing Line Lender will distribute to such
Lender its Commitment Percentage of such payment (appropriately adjusted, in the
case of interest payments, to reflect the period of time during which such
Lender’s risk participation was funded) in the same funds as those received by
such Swing Line Lender.

       

      (ii)           If
any payment received by the applicable Swing Line Lender in respect of principal
or interest on any Swing Line Loan is required to be returned by such Swing Line
Lender under any of the circumstances described in Section
15.12 (including pursuant to any settlement entered into by such Swing
Line Lender in its discretion), each Lender shall pay to such Swing Line Lender
its Commitment Percentage thereof on demand of Administrative Agent, plus
interest thereon from the date of such demand to the date such amount is
returned, at a rate per annum equal to the Federal Funds
Rate.  Administrative Agent will make such demand upon the request of
such Swing Line Lender.  The obligations of Lenders under this clause
shall survive the payment in full of the Obligation and the termination of this
Agreement.

       

      (e)           Interest for
Account of Swing Line Lenders.  Each Swing Line Lender shall be
responsible for invoicing Borrower for interest on its respective Swing Line
Loans.  Until each Lender funds its Base Rate Loan or risk
participation pursuant to this Section
2.4 to refinance such Lender’s Commitment Percentage of any Swing Line
Loan, interest in respect of such Commitment Percentage of such Swing Line Loan
shall be solely for the account of the applicable Swing Line
Lender.

       

      (f)           Payments Directly
to Swing Line Lenders.  Borrower shall make all payments of
principal and interest in respect of the Swing Line Loans directly to the
applicable Swing Line Lender.

       

      
        	
                2.5  

              	
                Increase in Total
      Commitment.

              

      

       

      (a)           Request for
Increase.  Provided there exists no Default or Potential
Default, upon notice to Administrative Agent (which shall promptly notify
Lenders), Borrower may, from time to time, request an increase in the Total
Commitment up to a maximum Total Commitment of $500,000,000; provided, that any such request for an
increase shall be in a minimum amount of $10,000,000, and greater integral
multiples of $500,000 thereof.

       

       

      (b)           Additional
Lenders.  To achieve the full amount of a requested increase
and subject to the approval of Administrative Agent, each L/C Issuer, and each
Swing Line Lender (which approvals shall not be unreasonably withheld), Borrower
may (i) invite additional Eligible Assignees to become Lenders pursuant to a
joinder agreement in form and substance satisfactory to Administrative Agent and
its counsel (each, a “Joinder
Agreement”), or (ii) request one or more Lenders to increase their
respective Commitments hereunder, but each such Lender shall not be deemed to
have agreed to increase its Commitment unless such Lender notifies
Administrative Agent prior to any deadline specified by Borrower (in
consultation with Administrative Agent) of its agreement to increase its
Commitment and the amount thereof.

       

      (c)           Effective Date
and Allocations.  If the Total Commitment is increased in
accordance with this Section, Administrative Agent and Borrower shall determine
the effective date (the “Increase
Effective Date”) and the final allocation of such
increase.  Administrative Agent shall promptly notify Borrower and
Lenders (including, without limitation, any Eligible Assignee becoming a Lender
as of such Increase Effective Date) of the final allocation of such increase and
the Increase Effective Date.

       

      (d)           Conditions to
Effectiveness of Increase.  As a condition precedent to such
increase, Borrower shall deliver to Administrative Agent:

       

      (i)           with
respect to any Lender requesting a Note, such Note executed by
Borrower;

       

      (ii)           Joinder
Agreements executed by Borrower, Administrative Agent, and each Eligible
Assignee becoming a new Lender hereunder pursuant to Section 2.5(c)
hereof, together with a completed Administrative Questionnaire;
and

       

      (iii)           a
certificate of each Company dated as of the Increase Effective Date signed by a
Responsible Officer of Borrower and each Guarantor (i) certifying and attaching
the resolutions adopted by each such entity approving or consenting to such
increase, and (ii) in the case of Borrower, certifying that, before and after
giving effect to such increase, (A) the representations and warranties contained
in Section
8 and the other Loan Papers are true and correct on and as of the
Increase Effective Date, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they are true
and correct as of such earlier date, and (B) no Default or Potential Default
exists or would result therefrom.  Borrower shall prepay any Loans
outstanding on the Increase Effective Date (and pay any additional amounts
required pursuant to Section
4.5) to the extent necessary to keep the outstanding Loans ratable with
any revised Commitment Percentages arising from any nonratable increase in the
Commitments under this Section.

       

      (e)           Conflicting
Provisions.  This Section shall supersede any provisions in
Sections
3.11 or 15.9 to
the contrary.

       

      
        	
                SECTION
      3                        

              	
                TERMS
      OF PAYMENT.

              

      

       

      
        	
                3.1  

              	
                Notes and
      Payments.

              

      

       

      (a)           The
Loans made by each Lender and any L/C Credit Extension shall be evidenced by one
or more accounts or records maintained by such Lender and by Administrative
Agent in the ordinary course of business.  The accounts or records
maintained by Administrative Agent and each Lender shall be conclusive absent
manifest error of the amount of the Loans or L/C Credit Extension made by
Lenders to Borrower and the interest and payments thereon.  Any
failure to so record or any error in doing so shall not, however, limit or
otherwise affect the obligation of Borrower hereunder to pay any amount owing
with respect to the Obligation.  In the event of any conflict between
the accounts and records maintained by any Lender and the accounts and records
of Administrative Agent in respect of such matters, the accounts and records of
Administrative Agent shall control in the absence of manifest
error.  Upon the request of any Lender or either Swing Line Lender, as
the case may be, made through Administrative Agent, Borrower shall promptly
execute and deliver to such Lender (through Administrative Agent) a Note (or in
the case of a Swing Line Lender, a Swing Line Note), which shall evidence such
Lender’s Loans (or in the case of a Swing Line Lender, such Swing Line Lender’s
Swing Line Loan) in addition to such account or records.  Each Lender
(or Swing Line Lender, as the case may be) may attach schedules to its Note (or
Swing Line Note, as the case may be) and endorse thereon the date, Type (if
applicable), amount and maturity of its Loans and payments with respect
thereto.

       

      (b)           In
addition to the accounts and records referred to in clause (a)
herein, each Lender and  Administrative Agent shall maintain in
accordance with its usual practice accounts or records evidencing the purchases
and sales by such Lender of participations in L/Cs.  In the event of
any conflict between the accounts and records maintained by Administrative Agent
and the accounts and records of any Lender in respect of such matters, the
accounts and records of Administrative Agent shall control in the absence of
manifest error.

       

      (c)           Borrower
must make each payment on the Obligation, without condition or deduction for any
counterclaim, defense, recoupment or setoff.  All payments by Borrower
hereunder shall be made in Dollars to Administrative Agent, for the account of
the respective Lenders to which such payment is owed, at Administrative Agent’s
principal office in Dallas, Texas, in funds that will be available for immediate
use by Administrative Agent by 1:00 p.m. on the day due; otherwise, but subject
to Section
3.8, those funds continue to accrue interest as if they were received on
the next Business Day.  Administrative Agent shall promptly distribute
to each Lender its Commitment Percentage (or other payment share as provided
herein) of such payment to which that Lender is entitled on the same day
Administrative Agent receives the funds from Borrower if Administrative Agent
receives the payment before 1:00 p.m., and otherwise before 1:00 p.m. on the
following Business Day.  If and to the extent that Administrative
Agent does not make payments to Lenders when due, unpaid amounts shall accrue
interest at the Federal Funds Rate from the due date until (but not including)
the payment date.

       

      
        	
                3.2  

              	
                Interest and Principal
      Payments; Prepayments; Voluntary Commitment
    Reductions.

              

      

       

      (a)           Accrued
interest on each Revolver Loan that is a LIBOR Loan is due and payable on the
last day of its Interest Period.  If any Interest Period with respect
to a Revolver Loan that is a LIBOR Loan is a period greater than three months,
then accrued interest is also due and payable on the date three months after the
commencement of the Interest Period.  Accrued interest on each Base
Rate Loan and each Swing Line Loan is due and payable on each Quarterly Date and
on the Termination Date.

       

      (b)           The
Principal Debt is due and payable on the Termination Date.

       

      (c)           Borrower
shall repay the outstanding principal amount of each Swing Line Loan on the
earlier to occur of (i) the date that is ten (10) Business Days after such Loan
is made, and (ii) the Termination Date.

       

      (d)           If
the Commitment Usage ever exceeds the Total Commitment, or if the aggregate
unpaid principal amount of all outstanding Swing Line Loans ever exceeds the
Swing Line Commitment, then Borrower shall immediately prepay Loans and/or Cash
Collateralize the L/C Exposure in an aggregate amount equal to such excess;
provided, however, that
Borrower shall not be required to Cash Collateralize the L/C Exposure pursuant
to this Section
3.2(d) unless, after prepayment in full of the Loans, the Commitment
Usage exceeds the Total Commitment then in effect.

       

      (e)           Without
premium or penalty and upon giving at least two Business Days prior written and
irrevocable notice to Administrative Agent (who shall promptly notify Lenders of
its receipt of such notice and its contents), Borrower may terminate all or
reduce part of the unused portion of the Total Commitment.  Each
partial reduction (unless the remaining portion of such commitment is less) must
be in an amount of not less than $5,000,000 or a greater integral multiple of
$1,000,000, and shall be ratable among all Lenders according to their respective
Commitment Percentages.  Once terminated or reduced, such commitments
may not be reinstated or increased.  Borrower shall not terminate or
reduce the Total Commitment if, after giving effect thereto and to any
concurrent prepayments hereunder, the Commitment Usage would exceed the Total
Commitment.  If, after giving effect to any reduction of the Total
Commitment, the L/C Sublimit, or the Swing Line Sublimit, exceeds the amount of
the Total Commitment, such sublimits shall be automatically reduced by the
amount of such excess.  Administrative Agent will promptly notify
Lenders of any such notice of termination or reduction of the Total
Commitment.

       

      (f)           Borrower
may voluntarily prepay all or any part of the Principal Debt (other than
Principal Debt under the Swing Line Subfacility, which may be prepaid in
accordance with clause (g)
below) at any time without premium or penalty, subject to the following
conditions:

       

      (i)           Administrative
Agent must receive Borrower’s written payment notice (which shall specify (1)
the payment date, and (2) the Type and amount of the Loan(s) to be paid; such
notice shall constitute an irrevocable and binding obligation of Borrower to
make a payment on the designated date) by 11:00 a.m. on (x) the first Business
Day preceding the date of payment of a Revolver Loan that is a LIBOR Loan, and
(y) the date of payment of a Base Rate Loan;

       

      (ii)           each
partial payment must be in a minimum amount of at least $500,000 if a Base Rate
Loan or $1,000,000 if a Revolver Loan that is a LIBOR Loan or, in either case, a
greater integral multiple of $100,000;

       

      (iii)           all
accrued interest on the principal amount so to be prepaid must also be paid in
full on the date of payment;

       

      (iv)           Borrower
shall pay any related Funding Loss upon demand; and

       

      (v)           unless
a Default or Potential Default has occurred and is continuing (or would arise as
a result thereof), any prepayment of the Principal Debt may be reborrowed by
Borrower, subject to the terms and conditions of the Loan Papers.

       

      Administrative
Agent will promptly notify each Lender of its receipt of a payment notice from
Borrower, and of the amount of such Lender’s Commitment Percentage of such
prepayment.

       

      (g)           Borrower
may, upon notice to the applicable Swing Line Lender (with a copy to
Administrative Agent), at any time or from time to time, voluntarily prepay
Swing Line Loans owed to such Swing Line Lender, in whole or in part without
premium or penalty; provided,
that (i) such notice must be received by the applicable Swing Line Lender
and Administrative Agent not later than 12:00 noon on the date of the
prepayment, and (ii) any such prepayment shall be in a minimum principal amount
of $100,000, or a greater integral multiple thereof.  Each such notice
shall specify the date and amount of such prepayment.  Borrower shall
make such prepayment and the payment amount specified in such notice shall be
due and payable on the date specified therein.

       

      
        	
                3.3  

              	
                Interest
      Options.

              

      

       

      Except
where specifically otherwise provided, (a) Revolver Loans bear interest at an
annual rate equal to the lesser of (i) the Base Rate plus the Applicable Margin or
LIBOR plus the
Applicable Margin for the Interest Period, if any, selected by Borrower (in each
case as designated or deemed designated by Borrower), as the case may be, and
(ii) the Maximum Rate, and (b) Swing Line Loans bear interest at an annual rate
equal to the lesser of (i) Daily Floating LIBOR plus the Applicable Margin
and (ii) the Maximum Rate.  Each change in the Base Rate, Daily
Floating LIBOR, and the Maximum Rate is effective, without notice to Borrower or
any other Person, upon the effective date of change.

       

      
        	
                3.4  

              	
                Quotation of
      Rates.

              

      

       

      A
Responsible Officer of Borrower may call Administrative Agent before delivering
a Loan Notice or Swing Line Loan Notice to receive an indication of the interest
rates then in effect, but the indicated rates do not bind Administrative Agent
or Lenders or affect the interest rate that is actually in effect when Borrower
delivers its Loan Notice or Swing Line Loan Notice or on the Loan
Date.

       

      
        	
                3.5  

              	
                Default
      Rate.

              

      

       

      While any
Default exists, Borrower shall pay interest on the Principal Debt at a
fluctuating interest rate per annum at all times equal to the Default Rate to
the fullest extent permitted by applicable Law.  If any amount (other
than principal of any Loan) payable by Borrower under any Loan Paper is not paid
when due (without regard to any applicable grace periods), whether at stated
maturity, by acceleration, or otherwise, then upon the request of Required
Lenders, such amount shall thereafter bear interest at a fluctuating interest
rate per annum at all times equal to the Default Rate to the fullest extent
permitted by applicable Laws.  Accrued and unpaid interest on past due
amounts (including interest on past due interest) shall be due and payable upon
demand.

       

      
        	
                3.6  

              	
                Interest
      Recapture.

              

      

       

      If the
designated interest rate applicable to any Loan exceeds the Maximum Rate, the
interest rate on that Loan is limited to the Maximum Rate, but any subsequent
reductions in the designated rate shall not reduce the interest rate thereon
below the Maximum Rate until the total amount of accrued interest equals the
amount of interest that would have accrued if that designated rate had always
been in effect.  If at maturity (stated or by acceleration), or at
final payment of the Notes, the total interest paid or accrued is less than the
interest that would have accrued if the designated rates had always been in
effect, then, at that time and to the extent permitted by Law, Borrower shall
pay an amount equal to the difference between (a) the lesser of the amount of
interest that would have accrued if the designated rates had always been in
effect and the amount
of interest that would have accrued if the Maximum Rate had always been in
effect, and (b) the amount of interest actually paid or accrued on the
Notes.

       

      
        	
                3.7  

              	
                Interest
      Calculations.

              

      

       

      All
computations of interest for Base Rate Loans when the Base Rate is determined by
Bank of America’s “prime rate” shall be made on the basis of a year of 365 or
366 days, as the case may be, and actual days elapsed.  All other
computations of fees and interest shall be made on the basis of a 360-day year
and actual days elapsed (which results in more fees or interest, as applicable,
being paid than if computed on the basis of a 365-day year).  Interest
shall accrue on each Loan for the day on which the Loan is made, and shall not
accrue on a Loan, or any portion thereof, for the day on which the Loan or such
portion is paid, provided
that any Loan that is repaid on the same day on which it is made shall,
subject to Section 3.1(c),
bear interest for one day.

       

      
        	
                3.8  

              	
                Maximum
      Rate.

              

      

       

      Regardless
of any provision contained in any Loan Paper or any document related thereto, no
Lender is entitled to contract for, charge, take, reserve, receive or apply, as
interest on all or any part of the Obligation any amount in excess of the
Maximum Rate, and, if Lenders ever do so, then any excess shall be treated as a
partial payment of principal and any remaining excess shall be refunded to
Borrower.  In determining if the interest paid or payable exceeds the
Maximum Rate, Borrower and Lenders shall, to the maximum extent permitted under
applicable Law, (a) treat all Loans as but a single extension of credit (and
Lenders and Borrower agree that is the case and that provision in this Agreement
for multiple Loans is for convenience only), (b) characterize any nonprincipal
payment as an expense, fee or premium rather than as interest, (c) exclude
voluntary payments and their effects, and (d) amortize, prorate, allocate and
spread the total amount of interest throughout the entire contemplated term of
the Obligation.  However, if the Obligation is paid in full before the
end of its full contemplated term, and if the interest received for its actual
period of existence exceeds the Maximum Amount, Lenders shall refund any excess
(and Lenders shall not, to the extent permitted by Law, be subject to any
penalties provided by any Laws for contracting for, charging, taking, reserving
or receiving interest in excess of the Maximum Amount).

       

      
        	
                3.9  

              	
                Interest
      Periods.

              

      

       

      When
Borrower requests LIBOR for Revolver Loans, Borrower may elect the applicable
Interest Period.  No more than ten (10) LIBOR Interest Periods may be
in effect at one time.

       

      
        	
                3.10  

              	
                Order of
      Application.

              

      

       

      (a)           If
no Default or Potential Default exists, payments and prepayments of the
Obligation shall be applied first to fees then due, second to accrued interest
then due and payable on the Principal Debt, and then to the remaining Obligation
in the order and manner as Borrower may direct.

       

      (b)           If
a Default or Potential Default exists, any payment or prepayment (including
proceeds from the exercise of any Rights) shall be applied to the Obligation in
the following order:  (i) to the payment of all fees, expenses,
and indemnities for which Administrative Agent has not been paid or reimbursed
in accordance with the Loan Papers; (ii) to the ratable payment of all
fees, expenses, and indemnities (other than L/C fees set forth in Section
5.3 hereof (collectively, “L/C
Fees”)) for which Lenders have not been paid or reimbursed in accordance
with the Loan Papers (as used in this clause
(ii), a “ratable
payment” for any Lender shall be, on any date of determination, that
proportion which the portion of the total fees, expenses, and indemnities owed
to such Lender bears to the total aggregate fees, expenses, and indemnities owed
to all Lenders on such date of determination); (iii) to the ratable payment
of accrued and unpaid interest on the Principal Debt and L/C Fees (as used in
this clause
(iii), “ratable
payment” means, for any Lender, on any date of determination, that
proportion which the accrued and unpaid interest on the Principal Debt owed to
such Lender bears to the total accrued and unpaid interest on the Principal Debt
owed to all Lenders); (iv) to the ratable payment of the Principal Debt (as
used in this clause
(iv), “ratable
payment” means for any Lender, on any date of determination, that
proportion which the Principal Debt owed to such Lender bears to the Principal
Debt owed to all Lenders); (v) to Administrative Agent for the account of
the applicable L/C Issuer, to Cash Collateralize that portion of L/C Exposure
comprised of the aggregate undrawn amount of L/Cs; (vi) to the payment of the
remaining Obligation in the order and manner Required Lenders deem appropriate;
and (vii) the balance, if any, after all of the Obligation has been
indefeasibly paid in full, to Borrower or as otherwise required by
Law.

       

      Subject
to Section
2.3(c), amounts used to Cash Collateralize the aggregate undrawn amount
of L/Cs pursuant to clause (v)
above shall be applied to satisfy drawings under such L/Cs as they
occur.  If any amount remains on deposit as Cash Collateral after all
L/Cs have either been fully drawn or expired, such remaining amount shall be
applied to the other Obligation, if any, in the order set forth
above.

       

      Subject
to the provisions of Section 14
and provided that
Administrative Agent shall not in any event be bound to inquire into or to
determine the validity, scope, or priority of any interest or entitlement of any
Lender and may suspend all payments or seek appropriate relief (including,
without limitation, instructions from Required Lenders or Required Lenders or an
action in the nature of interpleader) in the event of any doubt or dispute as to
any apportionment or distribution contemplated hereby, Administrative Agent
shall promptly distribute such amounts to each Lender in accordance with the
Agreement and the related Loan Papers.

       

      
        	
                3.11  

              	
                Sharing of Payments,
      Etc.

              

      

       

      If any
Lender (a “Benefitted
Lender”) shall
at any time receive any payment of all or part of the Loans owing to it, or
interest thereon, or receive any Collateral in respect thereof (whether
voluntarily or involuntarily, by set-off, or otherwise), in a greater proportion
than any such payment to or Collateral received by any other Lender, if any, in
respect of such other Lender’s Loans owing to it, or interest thereon, such
Benefitted Lender shall purchase for cash from the other Lenders a participating
interest in such portion of each such other Lender’s Loans owing to it, or shall
provide such other Lenders with the benefits of any such Collateral, or the
proceeds thereof, as shall be necessary to cause such Benefitted Lender to share
the excess payment or benefits of such Collateral or proceeds ratably with each
Lender; provided, however,
that (i) if all or any portion of such excess payment or benefits is
thereafter recovered from such Benefitted Lender, such purchase shall be
rescinded, and the purchase price and benefits returned, to the extent of such
recovery, but without interest, and (ii) the provisions of this Section shall
not be construed to apply to (x) any payment made by Borrower pursuant to and in
accordance with the express terms of this Agreement, or (y) any payment obtained
by a Lender as consideration for the assignment of or sale of a participation in
any of its Loans or subparticipations in L/C Exposure or Swing Line Loans to any
assignee or participant, other than to Borrower or any Subsidiary thereof (as to
which the provisions of this Section shall apply).   Borrower
agrees that any Lender so purchasing a participation from a Lender pursuant to
this Section 3.11
may, to the fullest extent permitted by Law, exercise all of its Rights of
payment (including the Right of setoff) with respect to such participation as
fully as if such Person were the direct creditor of Borrower in the amount of
such participation.

       

      
        	
                3.12  

              	
                Booking
      Loans.

              

      

       

      To the
extent permitted by Law, any Lender may make, carry or transfer its Loans at,
to, or for the account of any of its branch offices or the office of any of its
Affiliates.  However, no Affiliate is entitled to receive any greater
payment under Section 4.3
than the transferor Lender would have been entitled to receive with
respect to those Loans.

       

      
        	
                SECTION
      4                        

              	
                     TAXES,
      YIELD PROTECTION, AND
ILLEGALITY

              

      

       

      
        	
                4.1  

              	
                Taxes.

              

      

       

      (a)           Payments Free of
Taxes.  Any and all payments by or on account of any obligation
of Borrower hereunder or under any other Loan Paper shall be made free and clear
of and without reduction or withholding for any Indemnified Taxes or Other
Taxes, provided, that if Borrower shall be
required by applicable Law to deduct any Indemnified Taxes (including any Other
Taxes) from such payments, then (i) the sum payable shall be increased as
necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section), Administrative Agent,
Lender, or applicable L/C Issuer, as the case may be, receives an amount equal
to the sum it would have received had no such deductions been made, (ii)
Borrower shall make such deductions, and (iii) Borrower shall timely pay the
full amount deducted to the relevant Governmental Authority in accordance with
applicable Law.

       

      (b)           Payment of Other
Taxes by Borrower.  Without limiting the provisions of subsection
(a) above, Borrower shall timely pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable Law.

       

      (c)           Indemnification
by Borrower.  Borrower shall indemnify Administrative Agent,
each Lender, and each L/C Issuer, within 10 days after receipt by Borrower of
written demand therefor, for the full amount of any Indemnified Taxes or Other
Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) paid by Administrative
Agent, such Lender, or such L/C Issuer, as the case may be, and, to the extent
not resulting from the gross negligence or willful misconduct by Administrative
Agent, any Lender, or either L/C Issuer, any penalties, interest, and reasonable
expenses arising therefrom or with respect thereto, whether or not such
Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted
by the relevant Governmental Authority.  A certificate as to the
amount of such payment or liability delivered to Borrower by a Lender or the
applicable L/C Issuer (with a copy to Administrative Agent), or by
Administrative Agent on its own behalf or on behalf of a Lender or the
applicable L/C Issuer, shall be conclusive absent manifest error.

       

      (d)           Evidence of
Payments.  As soon as practicable after any payment of
Indemnified Taxes or Other Taxes by Borrower to a Governmental Authority,
Borrower shall deliver to Administrative Agent the original or a certified copy
of a receipt issued by such Governmental Authority evidencing such payment, a
copy of the return reporting such payment or other evidence of such payment
reasonably satisfactory to Administrative Agent.

       

      (e)           Status of
Lenders.  Any Foreign Lender that is entitled to an exemption
from or reduction of withholding Tax under the Law of the jurisdiction in which
Borrower is resident for Tax purposes, or any treaty to which such jurisdiction
is a party, with respect to payments hereunder or under any other Loan Paper
shall deliver to Borrower (with a copy to Administrative Agent), at the time or
times prescribed by applicable Law or reasonably requested by Borrower or
Administrative Agent, such properly completed and executed documentation
prescribed by applicable Law as will permit such payments to be made without
withholding or at a reduced rate of withholding.  In addition, any
Lender, if requested by Borrower or Administrative Agent, shall deliver such
other documentation prescribed by applicable Law or reasonably requested by
Borrower or Administrative Agent as will enable Borrower or Administrative Agent
to determine whether or not such Lender is subject to backup withholding or
information reporting requirements.

       

      Without
limiting the generality of the foregoing, in the event that Borrower is resident
for Tax purposes in the United States, any Foreign Lender shall deliver to
Borrower and Administrative Agent (in such number of copies as shall be
requested by the recipient) on or prior to the date on which such Foreign Lender
becomes a Lender under this Agreement (and from time to time thereafter upon the
request of Borrower or Administrative Agent, but only if such Foreign Lender is
legally entitled to do so), whichever of the following is
applicable:

       

      (i)           duly
completed copies of Internal Revenue Service Form W-8BEN claiming eligibility
for benefits of an income Tax treaty to which the United States is a
party,

       

      (ii)           duly
completed copies of Internal Revenue Service Form W-8ECI,

       

      (iii)           in
the case of a Foreign Lender claiming the benefits of the exemption for
portfolio interest under section 881(c) of the Code,
(x) a certificate to the effect that such Foreign Lender is not (A) a “bank” within the meaning of
section 881(c)(3)(A) of
the Code, (B) a “10 percent
shareholder” of Borrower within the meaning of section 881(c)(3)(B) of the
Code, or (C) a “controlled
foreign corporation” described in section 881(c)(3)(C) of the
Code and (y) duly completed copies of  Internal Revenue Service Form
W-8BEN, or

       

      (iv)           any
other form prescribed by applicable Law as a basis for claiming exemption from
or a reduction in United States Federal withholding Tax duly completed together
with such supplementary documentation as may be prescribed by applicable Law to
permit Borrower to determine the withholding or deduction required to be
made.

       

      (f)           Treatment of
Certain Refunds.  If Administrative Agent, any Lender, or
either L/C Issuer determines, in its sole discretion, that it has received a
refund of any Taxes or Other Taxes as to which it has been indemnified by
Borrower or with respect to which Borrower has paid additional amounts pursuant
to this Section, it shall pay to Borrower an amount equal to such refund (but
only to the extent of indemnity payments made, or additional amounts paid, by
Borrower under this Section with respect to the Taxes or Other Taxes giving rise
to such refund), net of all out-of-pocket expenses of Administrative Agent, such
Lender, or the applicable L/C Issuer, as the case may be, and without interest
(other than any interest paid by the relevant Governmental Authority with
respect to such refund), provided, that Borrower, upon
the request of Administrative Agent, such Lender, or the applicable L/C Issuer,
agrees to repay the amount paid over to Borrower (plus any penalties, interest
or other charges imposed by the relevant Governmental Authority) to
Administrative Agent, such Lender, or the applicable L/C Issuer in the event
Administrative Agent, such Lender, or the applicable L/C Issuer is required to
repay such refund to such Governmental Authority.  This subsection
shall not be construed to require Administrative Agent, any Lender or the
applicable L/C Issuer to make available its Tax returns (or any other
information relating to its Taxes that it deems confidential) to Borrower or any
other Person.

       

      
        	
                4.2  

              	
                Illegality.

              

      

       

      If any
Lender determines that any Law has made it unlawful, or that any Governmental
Authority has asserted that it is unlawful, for any Lender or its applicable
Lending Office to make, maintain, or fund LIBOR Loans, or to determine or charge
interest rates based upon LIBOR or Daily Floating LIBOR, or any Governmental
Authority has imposed material restrictions on the authority of such Lender to
purchase or sell, or to take deposits of, Dollars in the London interbank
market, then, on notice thereof by such Lender to Borrower through
Administrative Agent, any obligation of such Lender to make or continue Revolver
Loans that are LIBOR Loans or to convert Base Rate Loans to Revolver Loans that
are LIBOR Loans, or to make Daily Floating LIBOR Loans, shall be suspended until
such Lender notifies Administrative Agent and Borrower that the circumstances
giving rise to such determination no longer exist.  Upon receipt of
such notice, Borrower shall, upon demand from such Lender (with a copy to
Administrative Agent), prepay or, if applicable, convert all LIBOR Loans of such
Lender to Base Rate Loans, either on the last day of the Interest Period
therefor (or, in the case of Daily Floating LIBOR Loans, on the next Business
Day for LIBOR Loans), if such Lender may lawfully continue to maintain such
LIBOR Loans to such day, or immediately, if such Lender may not lawfully
continue to maintain such Revolver Loan that are LIBOR Loans, Daily Floating
LIBOR Loans, or participations in Swing Line Loans.  Upon any such
prepayment or conversion, Borrower shall also pay accrued interest on the amount
so prepaid or converted.

       

      
        	
                4.3  

              	
                Inability to Determine
      Rates.

              

      

       

      If
Required Lenders determine that for any reason in connection with any request
for a LIBOR Loan or, with respect to a Revolver Loan that is a LIBOR Loan, the
conversion to or continuation thereof, that (a) Dollar deposits are not being
offered to banks in the London interbank eurodollar market for the applicable
amount and Interest Period of such Revolver Loan that is a LIBOR Loan, (b)
adequate and reasonable means do not exist for determining LIBOR for any
requested Interest Period or Daily Floating LIBOR with respect to the applicable
proposed LIBOR Loan, or (c) LIBOR for any requested Interest Period or Daily
Floating LIBOR with respect to the applicable proposed LIBOR Loan does not
adequately and fairly reflect the cost to such Lenders of funding such Loan,
Administrative Agent will promptly so notify Borrower and each
Lender.  Thereafter, the obligation of Lenders to make or maintain
LIBOR Loans shall be suspended until Administrative Agent (upon the instruction
of Required Lenders) revokes such notice.  Upon receipt of such
notice, Borrower may revoke any pending request for a Loan of, conversion to or
continuation of Revolver Loans that are, LIBOR Loans or, failing that, will be
deemed to have converted such request into a request for a borrowing of Base
Rate Loans in the amount specified therein.

       

      
        	
                4.4  

              	
                Increased Costs;
      Reserves on Revolver Loans that are LIBOR
  Loans.

              

      

       

      (a)           Increased Costs
Generally.  If any Change in Law shall:

       

      (i)           impose,
modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge, or similar requirement against assets of, deposits with or for
the account of, or credit extended or participated in by, any Lender (except any
reserve requirement contemplated by Section
4.4(e)) or the L/C Issuers;

       

      (ii)           subject
any Lender or either L/C Issuer to any Tax of any kind whatsoever with respect
to this Agreement, any L/C, any participation in a L/C, or any Revolver Loan
that is a LIBOR Loan made by it, or change the basis of taxation of payments to
such Lender or such L/C Issuer in respect thereof (except for Indemnified Taxes
or Other Taxes covered by Section
4.1 and the imposition of, or any change in the rate of, any Excluded Tax
payable by such Lender or such L/C Issuer); or

       

      (iii)           impose
on any Lender or either L/C Issuer or the London interbank market any other
condition, cost, or expense affecting this Agreement or LIBOR Loans made by such
Lender or any L/C or participation therein;

       

      and the
result of any of the foregoing shall be to increase the cost to such Lender of
making or maintaining any LIBOR Loan (or of maintaining its obligation to make
any such Loan), or to increase the cost to such Lender or such L/C Issuer of
participating in, issuing, or maintaining any L/C (or of maintaining its
obligation to participate in or to issue any L/C), or to reduce the amount of
any sum received or receivable by such Lender or such L/C Issuer hereunder
(whether of principal, interest, or any other amount) then, upon request of such
Lender or such L/C Issuer, Borrower will pay to such Lender or such L/C Issuer,
as the case may be, such additional amount or amounts as will compensate such
Lender or such L/C Issuer, as the case may be, for such additional costs
incurred or reduction suffered.

       

      (b)           Capital
Requirements.  If any Lender or either L/C Issuer determines
that any Change in Law affecting such Lender or the applicable L/C Issuer or any
Lending Office of such Lender or such Lender’s or the applicable L/C Issuer’s
holding company, if any, regarding capital requirements has or would have the
effect of reducing the rate of return on such Lender’s or the applicable L/C
Issuer’s capital or on the capital of such Lender’s or the applicable L/C
Issuer’s holding company, if any, as a consequence of this Agreement, the
Commitment of such Lender or the Loans made by, or participations in L/Cs held
by, such Lender, or the L/Cs issued by the applicable L/C Issuer, to a level
below that which such Lender or the applicable L/C Issuer or such Lender’s or
the applicable L/C Issuer’s holding company could have achieved but for such
Change in Law (taking into consideration such Lender’s or the applicable L/C
Issuer’s policies and the policies of such Lender’s or the applicable L/C
Issuer’s holding company with respect to capital adequacy), then from time to
time, upon demand of such Lender or the applicable L/C Issuer, Borrower will pay
to such Lender or the applicable L/C Issuer, as the case may be, such additional
amount as will compensate such Lender or the applicable L/C Issuer or such
Lender’s or the applicable L/C Issuer’s holding company for any such reduction
suffered.

       

      (c)           Certificates for
Reimbursement.  A certificate of a Lender or either L/C Issuer
setting forth the amount or amounts necessary to compensate such Lender or the
applicable L/C Issuer or its holding company, as the case may be, as specified
in subsection
(a) or (b) of
this Section and delivered to Borrower shall be conclusive absent manifest
error.  Borrower shall pay such Lender or the applicable L/C Issuer,
as the case may be, the amount shown as due on any such certificate within 10
days after receipt thereof.

       

      (d)           Delay in
Requests.  Failure or delay on the part of any Lender or either
L/C Issuer to demand compensation pursuant to the foregoing provisions of this
Section shall not constitute a waiver of such Lender’s or the applicable L/C
Issuer’s right to demand such compensation, provided, that that Borrower
shall not be required to compensate a Lender or the applicable L/C Issuer
pursuant to the foregoing provisions of this Section for any increased costs
incurred or reductions suffered more than nine months prior to the date that
such Lender or the applicable L/C Issuer, as the case may be, notifies Borrower
of the Change in Law giving rise to such increased costs or reductions and of
such Lender’s or the applicable L/C Issuer’s intention to claim compensation
therefor (except that, if the Change in Law giving rise to such increased costs
or reductions is retroactive, then the nine-month period referred to above shall
be extended to include the period of retroactive effect thereof).

       

      (e)           Reserves on LIBOR
Loans.  Borrower shall pay to each Lender, as long as such
Lender shall be required to maintain reserves with respect to liabilities or
assets consisting of or including Eurocurrency funds or deposits, additional
interest on the unpaid principal amount of each LIBOR Loan equal to the actual
costs of such reserves allocated to such Loan by such Lender (as determined by
such Lender in good faith, which determination shall be conclusive), which shall
be due and payable on each date on which interest is payable on such Loan; provided, that Borrower shall
have received at least 10 days prior notice (with a copy to Administrative
Agent) of such additional interest from such Lender.  If a Lender
fails to give notice 10 days prior to the last day of the relevant Interest
Period, such additional interest shall be due and payable 10 days from receipt
of such notice.

       

      
        	
                4.5  

              	
                Compensation for
      Losses.

              

      

       

      Upon
demand of any Lender (with a copy to Administrative Agent) from time to time,
Borrower shall promptly compensate such Lender for and hold such Lender harmless
from any loss, cost, or expense incurred by it as a result of:

       

      (a)           any
continuation, conversion, payment, or prepayment of any Loan other than a Base
Rate Loan on a day other than the last day of the Interest Period for such Loan
(whether voluntary, mandatory, automatic, by reason of acceleration, or
otherwise);

       

      (b)           any
failure by Borrower (for a reason other than the failure of such Lender to make
a Loan) to prepay, borrow, continue, or convert any Loan other than a Base Rate
Loan on the date or in the amount notified by Borrower; or

       

      (c)           any
assignment of a Revolver Loan that is a LIBOR Loan on a day other than the last
day of the Interest Period therefor as a result of a request by Borrower
pursuant to Section 15.14;

       

      including
any loss of anticipated profits and any loss or expense arising from the
liquidation or reemployment of funds obtained by it to maintain such Loan or
from fees payable to terminate the deposits from which such funds were
obtained.  Borrower shall also pay any customary administrative fees
charged by such Lender in connection with the foregoing.

       

      For
purposes of calculating amounts payable by Borrower to Lenders under this Section
4.5, each Lender shall be deemed to have funded each Revolver Loan that
is a LIBOR Loan made by it at LIBOR for such Loan by a matching deposit or other
borrowing in the London interbank eurodollar market for a comparable amount and
for a comparable period, whether or not such LIBOR Loan was in fact so
funded.

       

      
        	
                4.6  

              	
                Mitigation
      Obligations; Replacement of
Lenders.

              

      

       

      (a)           Designation of a
Different Lending Office.  If any Lender requests compensation
under Section
4.4, or Borrower is required to pay any additional amount to any Lender
or any Governmental Authority for the account of any Lender pursuant to Section
4.1, or if any Lender gives a notice pursuant to Section
4.2, then such Lender shall use reasonable efforts to designate a
different Lending Office for funding or booking its Loans hereunder or to assign
its rights and obligations hereunder to another of its offices, branches, or
affiliates, if, in the judgment of such Lender, such designation or assignment
(i) would eliminate or reduce amounts payable pursuant to Section
4.1 or 4.4, as
the case may be, in the future, or eliminate the need for the notice pursuant to
Section
4.2, as applicable, and (ii) in each case, would not subject such Lender
to any unreimbursed cost or expense and would not otherwise be materially
disadvantageous to such Lender.  Borrower hereby agrees to pay all
reasonable costs and expenses incurred by any Lender in connection with any such
designation or assignment.

       

      (b)           Replacement of
Lenders.  If any Lender requests compensation under Section
4.4, or if Borrower is required to pay any additional amount to any
Lender or any Governmental Authority for the account of any Lender pursuant to
Section
4.1, Borrower may replace such Lender in accordance with Section
15.14.

       

      
        	
                4.7  

              	
                Survival.

              

      

       

      All of
Borrower’s obligations under this Section
4 shall
survive termination of the Total Commitment and repayment of the Obligation
hereunder.

       

      
        	
                SECTION
      5                        

              	
                FEES.

              

      

       

      
        	
                5.1  

              	
                Treatment of
      Fees.

              

      

       

      The fees
described in this Section 5
(a) are not compensation for the use, detention, or forbearance of money,
(b) are in addition to, and not in lieu of, interest and expenses otherwise
described in this Agreement, (c) are payable in accordance with Section
3.1(c), (d) are non-refundable, and (e) to the fullest extent permitted
by Law, bear interest, if not paid when due, at the Default Rate.

       

      
        	
                5.2  

              	
                Fee
      Letter.

              

      

       

      Borrower
shall pay to Arranger and Administrative Agent, for their respective accounts or
for the respective accounts of Lenders, as the case may be, fees in the amounts
and at the times specified in the applicable Fee Letter.  Such fees
shall be fully earned when paid and shall not be refundable for any reason
whatsoever.

       

      
        	
                5.3  

              	
                L/C
      Fees.

              

      

       

      (a)           L/C
Fees.   Borrower shall pay to Administrative Agent for the
account of each Lender in accordance with its Commitment Percentage (i) a fee
for each commercial L/C equal to 1/8 of 1% per annum times the actual daily
maximum amount available to be drawn under each such L/C, and (ii) a fee for
each standby L/C equal to the Applicable Margin for Revolver Loans that are
LIBOR Loans times the
actual daily maximum amount available to be drawn under each such
L/C.  Such fee for each L/C shall be due and payable quarterly in
arrears on each Quarterly Date, commencing with the first such date to occur
after the issuance of such L/C, and on the expiration date of such
L/C.  If there is any change in the Applicable Margin during any
quarter, the actual daily amount of each standby L/C shall be computed and
multiplied by the Applicable Margin separately for each period during such
quarter that such Applicable Margin was in effect.  Notwithstanding
anything to the contrary contained herein, upon the request of Required Lenders,
while any Default exists, the fees set forth herein with respect to L/Cs shall
accrue at the Default Rate.

       

      (b)           Fronting Fee and
Documentary and Processing Charges Payable to L/C
Issuers.  Borrower shall pay directly to each L/C Issuer, for
its own account, a fronting fee in an amount specified in the Fee Letter
executed by such L/C Issuer or, with respect to commercial L/Cs, in an amount
agreed upon by Borrower and such L/C Issuers.  Such fronting fee shall
be due and payable (i) with respect to standby L/Cs, on the tenth Business Day
after the end of each January, April, July, and October in respect of the most
recently-ended quarterly period (or portion thereof, in the case of the first
payment), commencing with the first such date to occur after the issuance of
such L/C, on the L/C Expiration Date, and thereafter on demand, or (ii) with
respect to commercial L/Cs, upon the issuance thereof.  In addition,
Borrower shall pay directly to the applicable L/C Issuer for its own account the
customary issuance, presentation, amendment and other processing fees, and other
standard costs and charges of such L/C Issuer relating to letters of credit as
from time to time in effect.  Such customary fees and standard costs
and charges are due and payable on demand and are nonrefundable.

       

      (c)           Calculation of
L/C Fees.  Each L/C (other than a fee payable upon
the issuance of the L/C) shall be calculated on the basis of a year of 360 days
and the actual number of days elapsed.

       

      
        	
                5.4  

              	
                Commitment
      Fee.

              

      

       

      Borrower
shall pay to Administrative Agent for the account of each Lender in accordance
with its Commitment Percentage, a commitment fee equal to the Applicable
Percentage times the daily amount by which the Total Commitment exceeds the
Commitment Usage (excluding from Commitment Usage, for the purposes hereof, the
outstanding principal balance of Swing Line Loans).  The commitment
fee shall accrue at all times from the Closing Date to the Termination Date,
including at any time during which one or more of the conditions in Section 7
is not met, and shall be due and payable quarterly in arrears on each Quarterly
Date, commencing with the first such date to occur after the Closing Date, and
on the Termination Date.  The commitment fee shall be calculated
quarterly in arrears on the basis of the actual days elapsed (including the
first day but excluding the last day) in a calendar year of 360 days, and if
there is any change in the Applicable Percentage during any quarter, the actual
daily amount shall be computed and multiplied by the Applicable Percentage
separately for each period during such quarter that such Applicable Percentage
was in effect.

       

      
        	
                SECTION
      6                        

              	
                GUARANTY
      AND SECURITY.

              

      

       

      
        	
                6.1  

              	
                Guaranty.

              

      

       

      Full and
complete payment of the Obligation under the Loan Papers shall be guaranteed in
accordance with a Guaranty executed by each Restricted Company (other than
Borrower).

       

      
        	
                6.2  

              	
                Collateral.

              

      

       

      Full and
complete payment of the Obligation under the Loan Papers shall be secured by (a)
all capital stock or other equity interests issued to a Restricted Company by
any Restricted Subsidiary organized under the Laws of the United States (or any
state thereof), (b) 65% of all capital stock or other equity interests issued to
a Restricted Company organized under the Laws of the United States (or any state
thereof) by any Restricted Subsidiary organized under the Laws of any country
other than the United
States, (c) a pledge by Borrower of its membership interests in SSI, and (d) all
Bond Rights created in favor of or held by the L/C Issuers (as assigned to
Administrative Agent pursuant to Section
2.3(j)(iv) herein), including, without limitation, any Rights thereunder
pledged or assigned to the L/C Issuer as security for payment of the “Bonds” defined therein
(collectively, the “Collateral”).

       

      
        	
                6.3  

              	
                Additional Collateral
      and Guaranties.

              

      

       

      Administrative
Agent may, without notice or demand and without affecting any Person’s
obligations under the Loan Papers, from time to time (a) receive and hold
additional collateral from any Person for the payment of all or any part of the
Obligation and exchange, enforce or release all or any part of that collateral
(in accordance with Section
14.9), and (b) accept and hold any endorsement or guaranty of payment of
all or any part of the Obligation and release any endorser or guarantor, or any
Person who has given any other security for the payment of all or any part of
the Obligation, or any other Person in any way obligated to pay all or any part
of the Obligation  (in accordance with Section
14.9).

       

      
        	
                6.4  

              	
                Additional Documents
      or Information.

              

      

       

      Each
Company will execute or cause to be executed, stock powers, control agreements,
and other writings in the form and content reasonably required by Administrative
Agent, and shall deliver (or grant Administrative Agent the authority to file on
behalf of each Company) financing statements requested by Administrative
Agent.  Borrower shall pay all costs of (a) filing any financing,
continuation, amendment or terminations statements, or (b) other actions taken
by Administrative Agent relating to the Collateral, including, without
limitation, costs and expenses of any Lien search required by Administrative
Agent.

       

      
        	
                SECTION
      7                        

              	
                CONDITIONS
      PRECEDENT.

              

      

       

      
        	
                7.1  

              	
                Initial
      Advance.

              

      

       

      Lenders
will not be obligated to fund the initial Loans hereunder, and the L/C Issuers
will not be obligated to issue the initial L/Cs hereunder, unless (x) there have
been no changes or developments in the information and projections provided by
the Companies prior to the date hereof to Administrative Agent and Lenders in
connection with the transactions contemplated hereby, (y) Administrative Agent
and Lenders have not received or discovered new or additional information
regarding the Companies that could reasonably be expected to cause a Material
Adverse Event, and (z) Administrative Agent has received each of the items in
clauses
(a)
through (k) below,
and the conditions in clauses
(l)
and (m) below
have been satisfied (other
than each item or condition, if any, listed on Schedule
7.1, which items or conditions are hereby permitted to be delivered or
satisfied after the Closing Date, but not later than the respective dates for
delivery or satisfaction specified on Schedule
7.1):

       

      (a) an
executed counterpart of this Agreement, sufficient in number for distribution to
Administrative Agent, each Lender, and Borrower;

       

      (b) with respect to any Lender requesting a
Note pursuant to Section 3.1(a), a Revolver Note, payable to the order
of such requesting Lender, as contemplated in Section 3.1(a),
and if requested by either Swing Line Lender pursuant to Section 3.1(a),
a Swing Line Note, payable to such Swing Line Lender;

       

      (c) from any
Restricted Company (other
than Borrower) (i) that has not previously executed a Guaranty, a
Guaranty executed by such Restricted Company, or (ii) that has previously
executed a Guaranty, a Confirmation of Guaranty executed by such Restricted
Company;

       

      (d) from the
holder of the capital stock or other equity interests of any Restricted Company
or SSI, as applicable, (i) that has not previously executed a Pledge Agreement,
a Pledge Agreement executed by such Person, pledging such capital stock or other
equity interest, or (ii) that has previously executed a Pledge Agreement, a
Confirmation of Pledge Agreement executed by such Person;

       

      (e) an
Officers’ Certificate for each Restricted Company, relating to articles of
incorporation or organization, bylaws, regulations, or operating agreements,
resolutions, and incumbency;

       

      (f) Certificates
of Existence and Good Standing (Account Status) for each Restricted Company from
its state of organization and each other state where it does business, each
dated after January 1, 2005;

       

      (g) Forest
Service Permit Agreements duly executed by the United States Department of
Agriculture, Forest Service, the applicable Company, and Administrative
Agent;

       

      (h) Legal
opinions of Martha Dugan Rehm, General Counsel of VRI, and Cahill Gordon &
Reindel LLP, special New York counsel to Borrower and the other Restricted
Subsidiaries, each in form and substance satisfactory to Administrative Agent;
one of the foregoing opinions shall include opinions confirming that (i) the
Debt incurred under this Agreement and the related Loan Papers (A) has been
incurred or entered into in compliance with the requirements of the Senior
Subordinated Indenture, and (B) constitutes “Senior Debt” under the terms
of the Senior Subordinated Indenture, and (ii) this Agreement constitutes the
“Credit Agreement” as
such term is defined in the Senior Subordinated Indenture.

       

      (i) a
certificate signed by a Responsible Officer certifying that (i) all of the
representations and warranties of the Companies in the Loan Papers are true and
correct in all material respects; (ii) no Default or Potential Default exists
under the Existing Agreement; (iii) no Default or Potential Default exists or
would result from the execution and delivery of the Loan Papers or the proposed
funding of the Loans or issuance of L/Cs on the Closing Date; (iv) there has
been no event or circumstance since July 31, 2004 that has had or could be
reasonably expected to result in, either individually or in the aggregate, a
Material Adverse Event; and (v) except as set forth on Schedule
8.7, there is no action, suit, investigation, or proceeding pending or,
to the knowledge of Borrower, threatened, in any court or before any arbitrator
or Governmental Authority that could reasonably be expected to (A) materially
and adversely affect the Companies, or (B) adversely affect any transaction
contemplated hereby, the rights and remedies of Administrative Agent, Lenders,
and the L/C Issuers hereunder, or the ability of the Companies or any other
obligor under any Guaranty to perform their respective obligations under the
Agreement;

       

      (j) evidence
that all insurance required to be maintained pursuant to the Loan Papers has
been obtained and is in effect;

       

      (k) evidence,
in form and substance satisfactory to Administrative Agent, that concurrently
with the Closing Date, the “Term Loans” under the
Existing Agreement shall be repaid in full, the security interests of the “Term Loan Lenders” in the
collateral shall be released, and all obligations of Borrower with respect
thereto shall be terminated;

       

      (l) payment
of all fees payable on or prior to the Closing Date to Administrative Agent,
any  Related Party of the Administrative Agent, and any Lender as
provided for in Section 5;
and

       

      (m) unless
waived by Administrative Agent, payment in full of all reasonable fees,
expenses, and disbursements of Haynes and Boone, LLP and, without duplication,
the reasonably allocated cost of internal legal services and all reasonable
expenses and disbursements of internal counsel (collectively, “Attorney
Costs”) of Administrative Agent to the extent invoiced prior to or on the
Closing Date, plus such additional amounts of Attorney Costs as shall constitute
Administrative Agent’s reasonable estimate of Attorney Costs incurred or to be
incurred by it through the closing proceedings (provided, that such estimate shall not
thereafter preclude a final settling of accounts between Borrower and
Administrative Agent).

       

      
        	
                7.2  

              	
                Each
      Advance.

              

      

       

      The
obligation of each Lender to make any Loan (other than a conversion of Loans to
the other Type or a continuation of Revolver Loans as LIBOR Loans) is subject to
the following conditions precedent:  (a) Administrative Agent shall
have timely received a Loan Notice (or in the case of a Swing Line Loan, a Swing
Line Loan Notice) or the applicable L/C Issuer shall have timely received the
applicable L/C Agreement; (b) the applicable L/C Issuer shall have received any
applicable L/C fee; (c) all of the representations and warranties of the
Companies in the Loan Papers are true and correct in all material respects
(unless they speak to a specific date or are based on facts which have changed
by transactions contemplated or permitted by this Agreement); (d) no Material
Adverse Event, Default or Potential Default exists or would result from the
proposed funding of such Loans or issuance of L/Cs; and (e) the funding of the
Loans or issuance of the L/Cs is permitted by Law.  Upon
Administrative Agent’s reasonable request, Borrower shall deliver to
Administrative Agent evidence substantiating any of the matters in the Loan
Papers that are necessary to enable Borrower to qualify for the Loans or
L/Cs.  Each condition precedent in this Agreement is material to the
transactions contemplated by this Agreement, and time is of the essence with
respect to each condition precedent.  Subject to the prior approval of
Required Lenders, Lenders may fund any Loan, and the applicable L/C Issuer may
issue any L/C, without all conditions being satisfied, but, to the extent
permitted by Law, that funding and issuance shall not be deemed to be a waiver
of the requirement that each condition precedent be satisfied as a prerequisite
for any subsequent funding or issuance, unless Required Lenders specifically
waive each item in writing.  Each Loan Notice (other than a Loan
Notice requesting only a conversion of Loans to the other Type or a continuation
of Revolver Loans as LIBOR Loans), each Swing Line Loan Notice, and each L/C
Agreement submitted by Borrower shall be deemed to be a representation and
warranty that the conditions specified in this Section
7.2 have been satisfied on and as of the date of the applicable Loan or
issuance of the applicable L/C.  Notwithstanding anything to the
contrary set forth in this Section
7.2, Lenders will not be obligated to honor any Loan Notice (including a
Loan Notice converting Revolver Loans that are Base Rate Loans to Revolver Loans
that are LIBOR Loans or continuing Revolver Loans that are LIBOR Loans) or Swing
Line Loan Notice if a Default or Potential Default exists or would result after
giving effect to the proposed funding, conversion, or continuation of such Loans
or issuance of L/Cs.

       

      
        	
                SECTION
      8                        

              	
                REPRESENTATIONS
      AND WARRANTIES.

              

      

       

      Borrower
(and each Guarantor by execution of a Guaranty) represents and warrants to
Administrative Agent and Lenders as set forth below; provided however, that
representations and warranties of any such Guarantor shall be made solely as to
such Guarantor and its Subsidiaries:

       

      
        	
                8.1  

              	
                Regulation
      U.

              

      

       

      No
Company is engaged principally, or as one of its important activities, in the
business of extending credit for the purpose of purchasing or carrying any
“margin stock” within
the meaning of Regulations T
or U of the Board of Governors of the Federal Reserve System, as
amended.  No part of the proceeds of any Loan will be used, directly
or indirectly, for a purpose which violates any Law, including, without
limitation, the provisions of Regulations T, U, or X (as enacted by the Board of
Governors of the Federal Reserve System, as amended).  Following the
application of the proceeds of each Loan, each L/C Borrowing, or each drawing
under each L/C, not more than 25% of the value of the assets (either of Borrower
only or the Companies on a consolidated basis) subject to the provisions of
Section 10.5,
Section 10.10
and Section 10.11
or subject to any restriction contained in any agreement or instrument between
Borrower and any Lender or any Affiliate of any Lender relating to Debt and
within the scope of Section
12.8 will be margin stock.

       

      
        	
                8.2  

              	
                Corporate Existence,
      Good Standing, Authority and
Compliance.

              

      

       

      Each
Company is duly organized, validly existing and in good standing under the Laws
of the jurisdiction in which it is incorporated or organized as identified on
Schedule
8.2 (or any revised Schedule 8.2
delivered by Borrower to Lenders evidencing changes permitted by Sections 9.10,
9.11, 10.10 or
10.11).  Except
where failure is not a Material Adverse Event, each Restricted Company (a) is
duly qualified to transact business and is in good standing as a foreign
corporation or other entity in each jurisdiction where the nature and extent of
its business and properties require due qualification and good standing as
identified on Schedule
8.2 (or any such revised Schedule 8.2),
and (b) possesses all requisite authority, permits, licenses, consents,
approvals and power to (i) own or lease its assets and conduct its business as
is now being, or is contemplated by this Agreement to be, conducted, and (ii)
execute, deliver, and perform its obligations under the Loan Papers to which it
is party.

       

      
        	
                8.3  

              	
                Subsidiaries.

              

      

       

      VRI has
no Subsidiaries, other
than as disclosed on Schedule 8.2
(or on any revised Schedule 8.2
delivered by Borrower to Lenders evidencing changes permitted by Sections 9.10,
9.11, 10.10 or
10.11).  All
of the outstanding shares of capital stock (or similar voting interests) of the
Restricted Companies are duly authorized, validly issued, fully paid and
nonassessable.  All of the outstanding shares of capital stock of the
Restricted Companies other
than VRI are owned of record and beneficially as set forth thereon, free
and clear of any Liens, restrictions, claims or Rights of another Person, other than Permitted Liens,
and are not subject to any warrant, option or other acquisition Right of any
Person or subject to any transfer restriction, other than restrictions
imposed by securities Laws and general corporate Laws.  All
Unrestricted Subsidiaries meet the requirements of “Unrestricted Subsidiaries” as
set forth in the definition thereof.

       

      
        	
                8.4  

              	
                Authorization and
      Contravention.

              

      

       

      The
execution and delivery by, and enforcement against, each Restricted Company of
each Loan Paper or related document to which it is a party and the performance
by it of its obligations thereunder (a) are within its organizational power, (b)
have been duly authorized by all necessary action, (c) require no action by or
filing with any Governmental Authority (other than any action or
filing that has been taken or made on or before the Closing Date), (d) do not
violate any provision of its organizational documents, (e) do not violate any
provision of Law or any order of any Governmental Authority applicable to it,
other than violations
that individually or collectively are not a Material Adverse Event, (f) do not
violate any Material Agreements to which it is a party, or (g) do not result in
the creation or imposition of any Lien on any asset of any Company.

       

      
        	
                8.5  

              	
                Binding
      Effect.

              

      

       

      Upon
execution and delivery by all parties thereto, each Loan Paper which is a
contract will constitute a legal and binding obligation of each Restricted
Company party thereto, enforceable against it in accordance with its terms,
except as
enforceability may be limited by applicable Debtor Relief Laws and general
principles of equity.

       

      
        	
                8.6  

              	
                Financial Statements;
      Fiscal Year.

              

      

       

      The
Current Financials were prepared in accordance with GAAP and, together with the
notes thereto, present fairly, in all material respects, the consolidated
financial condition, results of operations, and cash flows of the Companies as
of, and for the portion of the fiscal year ending on, the date or dates thereof
(subject only to normal year-end adjustments), and show all material
indebtedness and other liabilities, direct or contingent, of the Companies as of
such date or dates, including liabilities for Taxes, material commitments and
Debt.  Since the date of the Current Financials, there has been no
event or circumstance, either individually or in the aggregate, that has
resulted in or could reasonably be expected to result in a Material Adverse
Event.  The fiscal year of Borrower ends on July 31.

       

      
        	
                8.7  

              	
                Litigation.

              

      

       

      Except as
disclosed on Schedule
8.7, (a) no Company (other than as a creditor or
claimant) is subject to, or aware of the threat of, any Litigation (i) that is
reasonably likely to be determined adversely to any Company and, if so adversely
determined, shall result in a Material Adverse Event, or (ii) that purports to
affect or pertain to this Agreement or any other Loan Paper, or any of the
transactions contemplated hereby, (b) no outstanding or unpaid judgments against
any Company exist, and (c) no Company is a party to, or bound by, any judicial
or administrative order, judgment, decree or consent decree relating to any past
or present practice, omission, activity or undertaking which constitutes a
Material Adverse Event.

       

      
        	
                8.8  

              	
                Taxes.

              

      

       

      All Tax
returns of each Company required to be filed have been filed (or extensions have
been granted) before delinquency, other than returns for which
the failure to file is not a Material Adverse Event or, in any event, likely to
result in a Lien on the assets of the Companies securing any liability of the
Companies (individually or when aggregated with any liability of the Companies
contemplated elsewhere in this Section and in Sections 8.9
and
Section 8.10 herein that is reasonably likely to be secured by Liens) in
excess of the Threshold Amount, and all Taxes shown as due and payable in such
returns have been paid before delinquency, other than Taxes for which
the criteria for Permitted Liens (as specified in clause (j)
of the definition of “Permitted Liens”) have been
satisfied, for which nonpayment is not a Material Adverse Event or, in any
event, likely to result in a Lien on the assets of the Companies securing any
liability of the Companies (individually or when aggregated with any liability
of the Companies contemplated elsewhere in this Section and in Section 8.9
and
Section 8.10 herein that reasonably likely to be secured by Liens) in
excess of the Threshold Amount, or which are being contested in good faith by
appropriate proceedings diligently conducted and for which adequate reserves
have been provided.  There is no proposed Tax assessment against any
Company that would, if made, result in a Material Adverse Event or, in any
event, result in a Lien on the assets of such Company or Companies securing any
liability (individually or when aggregated with any liability of the Companies
contemplated elsewhere in this Section and in Section 8.9
and
Section 8.10 herein that is reasonably likely to be secured by Liens) in
excess of the Threshold Amount.

       

      
        	
                8.9  

              	
                Environmental
      Matters.

              

      

       

      Except as
disclosed on Schedule
8.9 and except
for conditions, circumstances or violations that are not, individually or in the
aggregate, a Material Adverse Event or, in any event, likely to result in a Lien
on the assets of the Companies securing liability of the Companies (individually
or when aggregated with any liability of the Companies contemplated elsewhere in
this Section and in Section 8.8
and
Section 8.10 herein that is reasonably likely to be secured by Liens) in
excess of the Threshold Amount, no Company (a) knows of any environmental
condition or circumstance adversely affecting any Company’s properties or
operations, (b) has, to its knowledge, received any written report of any
Company’s violation of any Environmental Law, or (c) knows that any Company is
under any obligation imposed by a Governmental Authority to remedy any violation
of any Environmental Law.  Except as disclosed on Schedule
8.9, each Company believes that its properties and operations do not
violate any Environmental Law, other than violations that
are not, individually or in the aggregate, a Material Adverse Event or, in any
event, likely to result in a Lien on the assets of the Companies securing
liability of the Companies (individually or when aggregated with any liability
of the Companies contemplated elsewhere in this Section and in Section 8.8
and
Section 8.10 herein that is reasonably likely to be secured by Liens) in
excess of the Threshold Amount.  No facility of any Company is used
for, or to the knowledge of any Company has been used for, treatment or disposal
of any Hazardous Substance or storage of Hazardous Substances, other than in material
compliance with applicable Environmental Laws.

       

      
        	
                8.10  

              	
                Employee
      Plans.

              

      

       

      Except
where the occurrence or existence is not a Material Adverse Event or, in any
event, likely to result in a Lien on the assets of any Company or the Companies
securing liability of any Company or the Companies (individually or when
aggregated with any liability of the Companies contemplated elsewhere in this
Section and in Section 8.8
and
Section 8.9 herein that is reasonably likely to be secured by Liens) in
excess of the Threshold Amount, (a) no Employee Plan has incurred an “accumulated funding
deficiency” (as defined in section 302 of ERISA or section 412 of the
Code), (b) no Company has incurred liability under ERISA to the PBGC in
connection with any Employee Plan (other than required insurance
premiums, all of which have been paid), (c) no Company has withdrawn in whole or
in part from participation in a Multiemployer Plan, (d) no Company has engaged
in any “prohibited
transaction” (as defined in section 406 of ERISA or section 4975 of the
Code), and (e) no “reportable
event” (as defined in section 4043 of ERISA) has occurred
with respect to an Employee Plan, excluding events for which the notice
requirement is waived under applicable PBGC regulations.

       

      
        	
                8.11  

              	
                Properties and
      Liens.

              

      

       

      (a) Each
Company has good and marketable title in fee simple to, or a valid leasehold
interest in, all material property reflected on the Current Financials (other than for property that
is obsolete or that has been disposed of in the ordinary course of business or
as otherwise permitted by Section
10.10 or Section
10.11).

       

      (b) Except
for Permitted Liens, no Lien exists on any property of any Company (including,
without limitation, the Forest Service Permits and the Water Rights), and the
execution, delivery, performance or observance of the Loan Papers will not
require or result in the creation of any Lien on any Company’s
property.

       

      (c) As of the
date hereof, the Forest Service Permits constitute all of the material licenses,
permits or leases from the U.S. held by the Companies for use in connection with
their respective skiing businesses.

       

      (d) Each of
the Water Rights is, to the knowledge of the Companies, in full force and effect
and, to the knowledge of the Companies, there is no material default or existing
condition which with the giving of notice or the passage of time or both would
cause a material default under any Water Right that is material to the operation
of the Companies.  Subject to the available supply and to the terms
and conditions of the applicable decrees, the Companies’ Water Rights provide a
dependable, legal and physical snowmaking, irrigation and domestic water supply
for the operation of the Companies’ businesses.

       

      (e) As of the
Closing Date, the Companies own the Critical Assets set forth on Schedule
8.11.  The Critical Assets set forth on part (a)
of Schedule
8.11, which constitute Existing Critical Assets, were acquired on or
before the Third Agreement Date.  The Critical Assets set forth on
part (b)
of Schedule
8.11, which constitute Additional Critical Assets, were acquired after
the Third Agreement Date. Each Existing Critical Asset owned by any Company is
owned by a Wholly Owned Restricted Subsidiary of Borrower (other than Existing
Critical Assets owned by Heavenly Valley), and each Additional Critical Asset is
owned by a Restricted Subsidiary of Borrower.

       

      
        	
                8.12  

              	
                Government
      Regulations.

              

      

       

      No
Company or Controlling Person (a) is a “holding company,” or a “subsidiary company” of a
“holding company,” or
an “affiliate” of a
“holding company” or of
a “subsidiary company” of a “holding company,” within the meaning of the Public
Utility Holding Company Act of 1935, or (b) is or is required to be registered
as an “investment company” under the Investment Company Act of
1940.

       

      
        	
                8.13  

              	
                Transactions with
      Affiliates.

              

      

       

      Except as
set forth in Schedule
8.13 and except
for other transactions which do not, in the aggregate, cost the Restricted
Companies more than $2,000,000 in any fiscal year, no Restricted Company is a
party to any transaction with any Affiliate (other than another Restricted
Company), except upon
fair and reasonable terms not materially less favorable than it could obtain or
could become entitled to in an arm’s-length transaction with a Person that was
not its Affiliate.

       

      
        	
                8.14  

              	
                Debt.

              

      

       

      No
Company is an obligor on any Debt, other than Permitted
Debt.

       

      
        	
                8.15  

              	
                Material
      Agreements.

              

      

       

      All
Material Agreements to which any Restricted Company is a party are in full force
and effect, and no default or potential default (a) exists on the part of any
Restricted Company thereunder that is a Material Adverse Event or (b) would
result from the consummation of the transactions contemplated by this Agreement
or any other Loan Paper.

       

      
        	
                8.16  

              	
                Labor
      Matters.

              

      

       

      There are
no binding agreements of any type with any labor union, labor organization,
collective bargaining unit or employee group to which any Company is bound,
other than agreements
which may be entered into after the Closing Date which do not constitute a
Material Adverse Event.  No actual or threatened strikes, labor
disputes, slow downs, walkouts, or other concerted interruptions of operations
by the employees of any Company that constitute a Material Adverse Event
exist.  Hours worked by and payment made to employees of the Companies
have not been in violation of the Fair Labor Standards Act, as
amended, or any other applicable Law dealing with labor matters, other than any violations,
individually or collectively, that are not a Material Adverse
Event.  All payments due from any Company for employee health and
welfare insurance have been paid or accrued as a liability on its books, other than any nonpayments
that are not, individually or collectively, a Material Adverse
Event.

       

      
        	
                8.17  

              	
                Solvency.

              

      

       

      On the
Closing Date, on each Loan Date, and on each date of an L/C Credit Extension,
Borrower and each Guarantor are, and after giving effect to the requested Loan,
will be, Solvent.

       

      
        	
                8.18  

              	
                Intellectual
      Property.

              

      

       

      Each
Company owns (or otherwise holds rights to use) all material Intellectual
Property, licenses, permits, and trade names necessary to continue to conduct
its businesses as presently conducted by it and proposed to be conducted by it
immediately after the Closing Date.  To its knowledge, each Company is
conducting its business without infringement or claim of infringement of any
license, patent, copyright, service mark, trademark, trade name, trade secret or
other intellectual property right of others, other than any infringements
or claims that, if successfully asserted against or determined adversely to any
Company, would not, individually or collectively, constitute a Material Adverse
Event, and to the best of each Company’s knowledge, no slogan or other
advertising device, product, process, method, substance or part or other
material now employed, or now contemplated to be employed, by such Company
infringes upon any rights held by any other Person.  To the knowledge
of any Company as of the date hereof, no infringement or claim of infringement
by others of any material Intellectual Property, license, permit, trade name, or
other intellectual property of any Company exists, other than claims which will
not result in a Material Adverse Event.

       

      
        	
                8.19  

              	
                Full
      Disclosure.

              

      

       

      Each
material fact or condition relating to the Loan Papers or the financial
condition, business or property of any Company has been disclosed to
Administrative Agent.  All reports, financial statements, certificates
and other information furnished by any Company to Administrative Agent in
connection with the Loan Papers on or before the Closing Date was, taken as a
whole, true and accurate in all material respects or based on reasonable
estimates on the date the information is stated or certified.

       

      
        	
                8.20  

              	
                Insurance.
      

              

      

       

      The
properties of the Companies are insured with financially sound and reputable
insurance companies not Affiliates of the Companies, in such amounts, with such
deductibles and covering such risks as are customarily carried by companies
engaged in similar businesses and owning similar properties in localities where
the Companies operate.

       

      
        	
                8.21  

              	
                Compliance with
      Laws.

              

      

       

      Each
Company is in compliance in all material respects with the requirements of all
Laws and all orders, writs, injunctions and decrees applicable to it or to its
properties, except in such instances in which (a) such requirement of Law or
order, writ, injunction or decree is being contested in good faith by
appropriate proceedings diligently conducted or (b) the failure to comply
therewith, either individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Event.

       

       
 

       

      
        	
                8.22  

              	
                Senior
      Debt.

              

      

       

      The
Obligation represents, among other things, the restatement, renewal, amendment,
extension, and modification of the “Obligation” (as defined in
the Existing Agreement) and constitutes “Senior Debt” under the Senior
Subordinated Indenture and other documents evidencing and relating to
Subordinated Debt.

       

      
        	
                SECTION
      9                        

              	
                AFFIRMATIVE
      COVENANTS.

              

      

       

      So long
as Lenders are committed to fund Loans and the L/C Issuers are committed to
issue L/Cs under this Agreement, and thereafter until the Obligation is paid in
full, Borrower covenants and agrees as follows:

       

      
        	
                9.1  

              	
                Items to be
      Furnished.

              

      

       

      Borrower
shall cause the following to be furnished to each Lender:

       

      (a) With
respect to each fiscal year of the Companies, within 5 Business Days after the
date required to be filed with the Securities and Exchange Commission as part of
the Companies’ periodic reporting, Financial Statements showing the consolidated
financial condition and results of operations of the Companies as of, and for
the year ended on, that last day, accompanied by: (A) the unqualified opinion of
a “Registered Public
Accounting Firm” (as such term is specified in the Securities Laws) of
nationally-recognized standing, based on an audit using generally accepted
auditing standards and applicable Securities Laws, that the Financial Statements
were prepared in accordance with GAAP and present fairly, in all material
respects, the consolidated financial condition and results of operations of the
Companies, (B) any management letter prepared by the accounting firm delivered
in connection with its audit, (C) a certificate from the accounting firm to
Administrative Agent indicating that during its audit it obtained no knowledge
of any Default or Potential Default, or if it obtained knowledge, the nature and
period of existence thereof, and (D) a Compliance Certificate with respect to
the Financial Statements.

       

      (b) With
respect to each fiscal quarter of the Companies (other than the last fiscal
quarter of each fiscal year), within 5 Business Days after the date
required to be filed with the Securities and Exchange Commission as part of the
Companies periodic reportings, Financial Statements showing the consolidated
financial condition and results of operations of the Companies for such fiscal
quarter and for the period from the beginning of the current fiscal year to the
last day of such fiscal quarter, accompanied by a Compliance Certificate with
respect to the Financial Statements.

       

      (c) Promptly
after receipt, a copy of each interim or special audit report, management letter
and recommendations issued by independent accountants with respect to any
Company or its financial records.

       

      (d) Notice,
promptly after any Company knows or has reason to know, of (i) the existence and
status of any Litigation that, if determined adversely to any Company, would be
a Material Adverse Event, (ii) any change in any material fact or circumstance
represented or warranted by any Restricted Company in connection with any Loan
Paper, (iii) the receipt by any Company of notice of any violation or alleged
violation of any Environmental Law or ERISA (which individually or collectively
with other violations or allegations is reasonably likely to constitute a
Material Adverse Event), (iv) a Default or Potential Default, specifying the
nature thereof and what action the Restricted Companies have taken, are taking,
or propose to take, (v) any breach or nonperformance of, or default under, a
Material Agreement of a Restricted Company that is reasonably likely to result
in a Material Adverse Event, (vi) any material change in accounting policies or
financial reporting practices by any Restricted Company, (vii) the occurrence of
any Internal Control Event, or (viii) the occurrence of any event pursuant to
which any “person” or
“group” (as such terms
are used in Sections
13(d) and 14(d)
of the Securities Exchange Act of 1934, but excluding any employee benefit plan
of such person or its subsidiaries, and any person or entity acting in its
capacity as trustee, agent, or other fiduciary or administrator of any such
plan) is granted or otherwise obtains or receives the right to acquire (such
right, an “option
right”), whether such right is exercisable immediately or only after the
passage of time, directly or indirectly, 5% or more of the equity securities of
VRI entitled to vote for members of the board of directors or equivalent
governing body of VRI on a fully-diluted basis (and taking into account all such
securities that such person or group has the right to acquire pursuant to any
option right).  Each notice pursuant to Section
9.1(d)(iv) shall describe with particularity any and all provisions of
this Agreement and any other Loan Paper that have been breached.

       

      (e) Promptly
after filing, copies of all material reports or filings filed by or on behalf of
any Company with any securities exchange or the Securities and Exchange
Commission (including, without limitation, copies of each Form 10-K, Form 10-Q
and Form S-8 filed by or on behalf of VRI with the Securities and Exchange
Commission within 15 days after filing).

       

      (f) Documents
required to be delivered pursuant to Section
9.1(a) and (b) and
Section
9.1(e) (to the extent any such documents are included in materials
otherwise filed with the SEC) may be delivered electronically and if so
delivered, shall be deemed to have been delivered on the date (i) on which
Borrower posts such documents, or provides a link thereto on Borrower’s website
on the Internet at the website address listed on Schedule
1, or (ii) on
which such documents are posted on Borrower’s behalf on an Internet or intranet
website, if any, to which each Lender and Administrative Agent have access
(whether a commercial, third-party website or whether sponsored by
Administrative Agent); provided, that: (x) Borrower shall
deliver paper copies of such documents to Administrative Agent or any Lender
that requests Borrower to deliver such paper copies until a written request to
cease delivering paper copies is given by Administrative Agent or such Lender,
and (y) Borrower shall notify Administrative Agent and each Lender (by
telecopier or electronic mail) of the posting of any such documents and provide
to Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such
documents.  Notwithstanding anything contained herein, in every
instance Borrower shall be required to provide paper copies of the Compliance
Certificates required by Section 9.1(a)
and (b) to
Administrative Agent.  Except for such Compliance Certificates,
Administrative Agent shall have no obligation to request the delivery or to
maintain copies of the documents referred to above, and in any event shall have
no responsibility to monitor compliance by Borrower with any such request for
delivery, and each Lender shall be solely responsible for requesting delivery to
it or maintaining its copies of such documents.

       

      Borrower
hereby acknowledges that Administrative Agent will make available to Lenders and
L/C Issuers materials and/or information provided by or on behalf of Borrower
hereunder (collectively, “Borrower
Materials”) by posting the Borrower Materials on IntraLinks or another
similar electronic system (the “Platform”).

       

      (g) Subject
to the confidentiality provisions set forth in Section
15.15, promptly upon reasonable request by Administrative Agent or any
Lender (through Administrative Agent), information (not otherwise required to be
furnished under the Loan Papers) respecting the business affairs, assets and
liabilities of the Companies (including, but not limited to, seasonal operating
statistics, annual budgets, etc.) and opinions, certifications and documents in
addition to those mentioned in this Agreement.

       

      (h) With
respect to the post-closing items set forth on Schedule 7.1,
if any, deliver, or cause to be delivered, to Administrative Agent, all
agreements, documents, instruments, or other items listed on Schedule 7.1
on or prior to the date specified for delivery thereof on Schedule 7.1.

       

      
        	
                9.2  

              	
                Use of
      Proceeds.

              

      

       

      Borrower
will use all of the proceeds of Loans, L/Cs, and L/C Borrowings for working
capital, to make advances and other investments permitted by Section
10.8, to make acquisitions permitted under Section
10.11, and for other general corporate purposes and capital expenditures
of the Companies.  No part of the proceeds of any L/C draft or
drawing, any L/C Borrowing, or any Loan will be used, directly or indirectly,
for a purpose that violates any Law, including without limitation, the
provisions of Regulation U.

       

      
        	
                9.3  

              	
                Books and
      Records.

              

      

       

      Each
Company will maintain books, records, and accounts necessary to prepare
financial statements in accordance with GAAP and in material conformity with all
applicable requirements of any Governmental Authority having regulatory
jurisdiction over such Company.

       

      
        	
                9.4  

              	
                Inspections.

              

      

       

      Upon
reasonable request, and subject to the confidentiality provisions set forth in
Section 15.15,
each Company will allow Administrative Agent (or its Representatives) to inspect
any of its properties, to review reports, files, and other records, and to make
and take away copies, to conduct tests or investigations, and to discuss any of
its affairs, conditions, and finances with its other creditors, directors,
officers, employees, or representatives from time to time, during reasonable
business hours; provided that
when a Default exists, Administrative Agent or any Lender (or any of
their respective representatives or independent contractors) may do any of the
foregoing at the expense of Borrower at any time during normal business hours
and with two (2) Business Days advance notice.  Any of Lenders (or
their Representatives) may accompany Administrative Agent during such
inspections.

       

      
        	
                9.5  

              	
                Taxes.

              

      

       

      Each
Restricted Company will promptly pay when due any and all Taxes, other than Taxes which are
being contested in good faith by lawful proceedings diligently conducted,
against which reserve or other provision required by GAAP has been made; provided, however, that all
such Taxes shall, in any event, be paid prior to any levy for execution in
respect of any Lien on any property of a Restricted Company.

       

      
        	
                9.6  

              	
                Payment of
      Obligations.

              

      

       

      Each
Company will pay (or renew and extend) all of its obligations at such times and
to such extent as may be necessary to prevent a Material Adverse Event (except for obligations, other than Funded Debt, which
are being contested in good faith by appropriate proceedings).

       

      
        	
                9.7  

              	
                Maintenance of
      Existence, Assets, and
Business.

              

      

       

      (a) Except as
otherwise permitted by Section
10.11, each Company will (i) maintain its organizational existence and
good standing in its state of organization and its authority to transact
business in all other states where failure to maintain its authority to transact
business is a Material Adverse Event; (ii) maintain all Water Rights, licenses,
permits (including, without limitation, the Forest Service Permits), and
franchises necessary for its business where failure to maintain is a Material
Adverse Event; (iii) preserve or renew all of its Intellectual Property, the
non-preservation of which could reasonably be expected to result in a Material
Adverse Event; and (iv) keep all of its assets that are useful in and necessary
to its business in good working order and condition (ordinary wear and tear
excepted) and make all necessary repairs and replacements.

       

      (b) Subject
to dispositions permitted pursuant to Section 10.10
hereof, each Existing Critical Asset owned by any Company shall be owned
by a Wholly Owned Restricted Subsidiary of Borrower (other than Existing
Critical Assets owned by Heavenly Valley), and each Additional Critical Asset
owned or acquired by any Company after the Third Agreement Date shall be owned
by a Restricted Subsidiary of Borrower, so long as (i) such
Restricted Subsidiary has provided a Guaranty and Pledge Agreement in accordance
with the provisions set forth in Sections
6.1, 6.2, 9.10, or
9.11
herein, as the case may be, (ii) the stock or other equity interests in
such Restricted Subsidiary owned by a Restricted Company have been pledged to
Administrative Agent, for the benefit of Lenders, pursuant to a Pledge
Agreement, and (iii) such Restricted Subsidiary has otherwise complied with the
terms and provisions set forth in the Loan Papers, including, without
limitation, Section 10.16
herein.

       

      (c) No
Restricted Company party to a Pledge Agreement will change its name in any
manner (except by
registering additional trade names), unless such Restricted Company shall have
given Administrative Agent prior notice thereof.  Borrower shall
promptly notify Administrative Agent of any change in name of any other Company
(except the registering
of additional tradenames).

       

      
        	
                9.8  

              	
                Insurance.

              

      

       

      Each
Company will maintain with financially sound, responsible, and reputable
insurance companies or associations (or, as to workers’ compensation or similar
insurance, with an insurance fund or by self-insurance authorized by the
jurisdictions in which it operates) insurance concerning its properties and
businesses against casualties and contingencies and of types and in amounts (and
with co-insurance and deductibles) as is customary in the case of similar
businesses.  At Administrative Agent’s request, each Company will
deliver to Administrative Agent certificates of insurance for each policy of
insurance and evidence of payment of all premiums.

       

      
        	
                9.9  

              	
                Environmental
      Laws.

              

      

       

      Each
Company will (a) conduct its business so as to comply in all material respects
with all applicable Environmental Laws and shall promptly take required
corrective action to remedy any non-compliance with any Environmental Law, except where failure to
comply or take action would not be a Material Adverse Event, and (b) establish
and maintain a management system designed to ensure compliance with applicable
Environmental Laws and minimize material financial and other risks to each
Company arising under applicable Environmental Laws or as the result of
environmentally related injuries to Persons or property, except where failure to
comply would not be a Material Adverse Event.  Borrower shall deliver
reasonable evidence of compliance with the foregoing covenant to Administrative
Agent within 30 days after any written request from Required Lenders, which
request shall be made only if Required Lenders reasonably believe that a failure
to comply with the foregoing covenant would be a Material Adverse
Event.

       

      
        	
                9.10  

              	
                Subsidiaries.

              

      

       

      The
Companies may create or acquire additional Subsidiaries (including Unrestricted
Subsidiaries); provided
that (a) each Person that becomes a Restricted Subsidiary after the
Closing Date (whether as a result of an acquisition permitted under Section
10.11, creation, the failure of such Subsidiary to meet the requirements
of an “Unrestricted
Subsidiary” as set forth in the definition thereof, or otherwise) shall
execute and deliver to Administrative Agent a Guaranty within 30 days after
becoming a Restricted Subsidiary, (b) each Restricted Company that becomes the
holder of the capital stock or equity interest of each Person that becomes a
Restricted Subsidiary after the Closing Date (whether as a result of an
acquisition permitted under Section
10.11, creation, the failure of such Subsidiary to meet the requirements
of an “Unrestricted
Subsidiary” as set forth in the definition thereof, or otherwise) shall
execute and deliver to Administrative Agent a Pledge Agreement, together with
any related Security Documents reasonably required by Administrative Agent,
pledging such capital stock or equity interests within 30 days after such Person
becomes a Subsidiary, (c) Borrower shall deliver to Administrative Agent a
revised Schedule
8.2 reflecting such new Subsidiary within 30 days after it becomes a
Subsidiary, and (d) no Default or Potential Default exists or arises after
giving pro forma effect to the creation, acquisition, or addition of such
Subsidiary; provided,
that for purposes of determining compliance, (x) Debt of each Subsidiary
created or acquired shall be deemed to have been incurred on the date of such
acquisition or creation, and (y) Adjusted EBITDA for the most-recently-ended
four fiscal quarters shall include on a pro forma basis for such
period the EBITDA of each Restricted Subsidiary created or
acquired.

       

      
        	
                9.11  

              	
                Designation and
      Re-designation of
Subsidiaries.

              

      

       

      (a)           Borrower
may designate any Subsidiary as an Unrestricted Subsidiary and may re-designate
any Restricted Subsidiary as an Unrestricted Subsidiary; provided, that (a) Borrower shall
deliver to Administrative Agent a revised Schedule
8.2 reflecting the designation of such Subsidiary as an Unrestricted
Subsidiary or the re-designation of such Restricted Subsidiary as an
Unrestricted Subsidiary within 30 days after it becomes an Unrestricted
Subsidiary, (b) such Subsidiary otherwise meets (or would meet concurrently with
the effectiveness of such re-designation) the requirements of an “Unrestricted Subsidiary” as
set forth in the definition thereof, and (c) no Default or Potential Default
exists or will arise after giving pro forma effect to such designation or
re-designation; provided, that for purposes of
determining compliance (x) with Section 10.8
hereof, all outstanding loans, advances, and investments in such
designated or re-designated Subsidiary shall be deemed to have been made on (and
shall be valued as of) the date of such designation or re-designation, as
applicable, and (y) Adjusted EBITDA for the most-recently-ended four fiscal
quarters shall exclude on a pro forma basis for such
period the EBITDA of such designated or re-designated
Subsidiary.  Subject to Section 15.9(g),
Administrative Agent shall execute documentation reasonably required to release
any Restricted Subsidiary which is re-designated by Borrower as an Unrestricted
Subsidiary from its Guaranty.

       

      (b)           Borrower
may re-designate any Unrestricted Subsidiary as a Restricted Subsidiary; provided, that (a) such Subsidiary
shall have complied with Section 9.10
hereof, (b) Borrower shall deliver to Administrative Agent a revised
Schedule
8.2 reflecting the re-designation of such Unrestricted Subsidiary as a
Restricted Subsidiary within 30 days after it becomes a Restricted Subsidiary,
and (c) no Default or Potential Default exists or will arise after giving pro
forma effect to such re-designation; provided, that for purposes of
determining compliance, (x) all existing Debt of, and loans, advances, or
investments made by, such re-designated Subsidiary shall be deemed to have been
incurred on the date of such re-designation, and (y) Adjusted EBITDA for the
most-recently-ended four fiscal quarters shall include on a pro forma basis for such
period the EBITDA of such re-designated Subsidiary.

       

      
        	
                SECTION
      10                                  

              	
                NEGATIVE
      COVENANTS.

              

      

       

      So long
as Lenders are committed to fund Loans and the L/C Issuers are committed to
issue L/Cs under this Agreement, and thereafter until the Obligation is paid in
full, Borrower covenants and agrees as follows:

       

      
        	
                10.1  

              	
                Taxes.

              

      

       

      No
Company shall use any portion of the proceeds of any Loan to pay the wages of
employees, unless a timely payment to or deposit with the U.S. of all amounts of
Tax required to be deducted and withheld with respect to such wages is also
made.

       

      
        	
                10.2  

              	
                Payment of
      Obligations.

              

      

       

      No
Company shall voluntarily prepay principal of, or interest on, any Funded Debt,
other than the
Obligation, if a Default or Potential Default exists (or would result from such
payment).  No Company shall repay, repurchase, redeem, or defease
Subordinated Debt without the prior written consent of Required Lenders; provided, that any Company
may, without the approval of Required Lenders, (a) tender for, repurchase
(including, without limitation, in open market transactions or private
negotiated transactions), redeem, or discharge (each, a “Permitted
Redemption”) up to an aggregate of $90,000,000 of Subordinated Debt,
so long as (i) on and
as of the date of each such Permitted Redemption, no Default or Potential
Default then exists or arises, and (ii) not less than $300,000,000 of
Subordinated Debt remains outstanding after giving effect to each such Permitted
Redemption, and (b) repay Subordinated Debt in connection with the concurrent
issuance of additional Subordinated Debt (“Permitted
Refinancing”), so long
as (i) on and as of the date of such Permitted Refinancing, no Default or
Potential Default then exists or arises, (ii) the Subordinated Debt issued in
connection with such Permitted Refinancing (“Replacement
Subordinated Debt”) satisfies the requirements for permitted Subordinated
Debt as set forth in the Loan Papers, including, without limitation, the
requirements imposed by the definition of “Subordinated Debt” in Section
1.1 and by Section
10.16, and is otherwise in form and substance satisfactory to
Administrative Agent, (iii) the principal amount of such Replacement
Subordinated Debt does not exceed the principal amount of, plus premium and
accrued interest on, the Subordinated Debt so refinanced, and (iv) such
Replacement Subordinated Debt has a final maturity date later than the final
maturity date of the Subordinated Debt so refinanced.

       

      
        	
                10.3  

              	
                Employee
      Plans.

              

      

       

      Except
where a Material Adverse Event would not result, no Company shall permit any of
the events or circumstances described in Section
8.10 to exist or occur.

       

      
        	
                10.4  

              	
                Debt.

              

      

       

      No
Company shall create, incur or suffer to exist any Debt, other than Permitted
Debt.

       

      
        	
                10.5  

              	
                Liens.

              

      

       

      No
Company shall (a) create, incur or suffer or permit to be created or incurred or
to exist any Lien upon any of its assets, other than Permitted Liens, or (b)
enter into or permit to exist any arrangement or agreement that directly or
indirectly prohibits any Company from creating or incurring any Lien, other than (i) the Loan Papers,
(ii) the documents executed in connection with the Vail Bonds (and any documents
relating to a refinancing of the Vail Bonds), (iii) the Senior Subordinated
Indenture as in effect on the Closing Date (which does not prohibit the creation
or incurrence of Liens securing “Senior Debt” defined therein), (iv)
any other indenture evidencing Subordinated Debt which is Permitted Debt and
that contains the same exception for liens securing “Senior Debt” as the Senior
Subordinated Indenture, and (v) leases or licenses that prohibit Liens on the
leased or licensed property.

       

      
        	
                10.6  

              	
                Transactions with
      Affiliates.

              

      

       

      Except
for transactions which do not, in the aggregate, cost the Restricted Companies
more than $2,000,000 in any fiscal year, no Restricted Company shall enter into
or suffer to exist any transaction with any Affiliate (other than another Restricted
Company), or guaranty, obtain any letter of credit or similar instrument in
support of, or create, incur or suffer to exist any Lien upon any of its assets
as security for, any Debt or other obligation of any Affiliate (other than Debts or other
obligations of another Restricted Company) unless (a) such transaction is an
advance or equity contribution to an Unrestricted Subsidiary permitted by Sections
10.8(j), 10.8(l),
or 10.8(m),
(b) such transaction is described in Section
10.9 or on Schedule
8.13, (c) such transaction is an investment in employee residences
permitted by Section
10.8(n)(iii), or
(d) such transaction is upon fair and reasonable terms not materially less
favorable than it could obtain or could become entitled to in an arm’s-length
transaction with a Person that was not its Affiliate.

       

      
        	
                10.7  

              	
                Compliance with Laws
      and Documents.

              

      

       

      No
Company shall (a) violate the provisions of any Laws or rulings of any
Governmental Authority applicable to it or of any Material Agreement to which it
is a party if that violation alone, or when aggregated with all other
violations, would be a Material Adverse Event, (b) violate the provisions of its
organizational documents if such violation would cause a Material Adverse Event,
or (c) repeal, replace or amend any provision of its organizational documents if
that action would be a Material Adverse Event.

       

      
        	
                10.8  

              	
                Loans, Advances and
      Investments.

              

      

       

      Except as
permitted by Section
10.9 or Section
10.11, no Restricted Company shall make or suffer to exist any loan,
advance, extension of credit or capital contribution to, make any investment in,
or purchase or commit to purchase any stock or other securities or evidences of
Debt of, or interests in, any other Person, other than:

       

      (a) expense
accounts for and other loans or advances to its directors, officers, and
employees in the ordinary course of business in accordance with applicable
Law;

       

      (b) marketable
obligations issued or unconditionally guaranteed by the U.S. or issued by any of
its agencies and backed by the full faith and credit of the U.S., in each case
maturing within one year from the date of acquisition;

       

      (c) short-term
investment grade domestic and eurodollar certificates of deposit or time
deposits that are fully insured by the Federal Deposit Insurance Corporation or
are issued by commercial banks organized under the Laws of the U.S. or any of
its states having combined capital, surplus, and undivided profits of not less
than $100,000,000 (as shown on its most recently published statement of
condition);

       

      (d) commercial
paper and similar obligations rated “P-1” by Moody’s or “A-1” by
S&P;

       

      (e) readily
marketable Tax-free municipal bonds of a domestic issuer rated “A-2” or better by Moody’s or
“A” or better by
S&P, and maturing within one year from the date of issuance;

       

      (f) mutual
funds or money market accounts investing primarily in items described in
clauses
(b) through (e)
above;

       

      (g) demand
deposit accounts maintained in the ordinary course of business;

       

      (h) current
trade and customer accounts receivable that are for goods furnished or services
rendered in the ordinary course of business and that are payable in accordance
with customary trade terms;

       

      (i) Financial
Hedges existing on the date hereof which have previously been approved by
Administrative Agent and other Financial Hedges entered into after the date
hereof under terms reasonably acceptable to Administrative Agent;

       

      (j) loans,
advances, and investments of the Restricted Companies existing on the Closing
Date (i) in the Existing Housing Districts, Existing Metro Districts, and
Keystone/IntraWest LLC, which investments are identified on part (a)
of Schedule
10.8, and (ii) in Persons other than Restricted Companies, Existing
Housing Districts, Existing Metro Districts, and Keystone IntraWest LLC, which
loans and investments are identified on part
(b) of
Schedule
10.8;

       

      (k) additional
loans, advances, and investments in Restricted Companies, including, without
limitation, investments in Persons that become Restricted Subsidiaries upon
transactions consummated in compliance with Section 10.11
herein;

       

      (l) so long
as no Default or Potential Default exists or arises, capital contributions or
other contributions of Real Estate Held for Sale, in each case to Unrestricted
Subsidiaries or Real Estate Joint Ventures;

       

      (m) so long
as no Default or Potential Default exists or arises, investments in Unrestricted
Subsidiaries, additional investments in Housing Districts and Metro Districts
not otherwise permitted in clause (j)(ii)
above, and investments in other Persons involved in Similar Businesses,
so long as, on the date
of each such investment, the aggregate amount of all outstanding investments
made pursuant to this clause (m)
(determined for each investment based on the value thereof on the date
made), when aggregated with all investments set forth on part (b)
of Schedule
10.8, does not exceed the sum of (i) the Investment Limit, plus (ii) net reductions in
investments permitted by this Section
10.8(m), in an aggregate amount not to exceed the Investment Limit, as a
result of (A) dispositions of any such investments sold or otherwise liquidated
or repaid to the extent of the net cash proceeds and the fair market value of
any assets or property (as determined in good faith by the Board of Directors of
VRI) received, (B) dividends reducing any such investment, repayment of the
outstanding principal amount of loans or advances, or other transfers of assets
to VRI or any Restricted Subsidiary of VRI, or (C) the portion (proportionate to
VRI’s direct or indirect interest in the equity of a Person) of the fair market
value of the net assets of an Unrestricted Subsidiary or other Person
immediately prior to the time such Unrestricted Subsidiary or other Person is
designated or becomes a Restricted Subsidiary of VRI in accordance with Sections 9.10
or 9.11(b)
hereof; provided,
that, notwithstanding the foregoing, (x) the Restricted Companies may not
contribute Critical Assets to an Unrestricted Subsidiary or other Person
pursuant to this Section
10.8(m), and (y) the Restricted Companies may only contribute assets
owned on the Closing Date (excluding Critical Assets) to an Unrestricted
Subsidiary or other Person pursuant to this Section
10.8(m) if all such assets contributed on or after the Closing Date have
an aggregate fair market value (determined in good faith by the Board of
Directors of Borrower at the time of each such contribution) of less than
$75,000,000;

       

      (n) the
following investments:

       

      (i) a capital
contribution, in an amount not to exceed $650,000, in Boulder/Beaver
LLC;

       

      (ii) workers
compensation reserve account, established pursuant to a self-insurance permit
from the Department of Labor or comparable agency in any state in which the
Companies’ businesses are located, invested exclusively in items described in
clauses
(b) through (f) above;
and

       

      (iii) loans and
contributions to employees for investments in employee residences as part of
such employees’ compensation packages not to exceed $10,000,000 in the
aggregate;

       

      (o)           so
long as no Default or Potential Default exists or arises, investments set forth
on part (c)
of Schedule
10.8, which investments are made (i) as a result of the exercise of put
options by the owners thereof, and (ii) in accordance with the agreements set
forth on part (c)
of Schedule 10.8
as in effect on the Closing Date.

       

      
        	
                10.9  

              	
                Distributions.

              

      

       

      Except as
set forth on Schedule
10.9, no Company shall make any Distribution, except as
follows:

       

      (a) VRI may
make payments of approximately $100,000 accruing to certain option
holders;

       

      (b) any
Company may make Distributions to a Restricted Company;

       

      (c) if VRI
issues any Subordinated Debt which is subsequently converted to preferred stock,
VRI may, if no Default or Potential Default exists (or would result therefrom),
pay dividends on such stock at an annual rate which is less than or equal to the
annual rate of interest payable on such Subordinated Debt prior to its
conversion, so long as the terms on such preferred stock are no more favorable
to the holders of the preferred stock than the terms afforded to the holders of
the Subordinated Debt set forth in the indenture and other documents evidencing
or executed in connection with such Subordinated Debt;

       

      (d) if no
Default or Potential Default exists or arises, VRI and its Restricted
Subsidiaries may make additional Distributions not otherwise permitted under
this Section
10.9, and loans, advances, and investments not otherwise permitted under
Section
10.8, so long as
the aggregate amount of Distributions permitted under this clause
(d), and the aggregate amount of loans, advances, and investments made,
which are not otherwise permitted under Section
10.8, on any date of determination, does not exceed the sum of:

       

      (i)           50%
of the cumulative Net Income of the Restricted Companies, on a consolidated
basis, from the last day of the first fiscal quarter ending after the Closing
Date to such date of determination; plus

       

      (ii)           100%
of the aggregate net cash proceeds received by VRI (and the other Restricted
Companies, in the case of clause (A)
below) during the period from the Closing Date to such date of determination
from:

       

      (A)           the
issuance of Debt which constitutes “Permitted Debt” under clauses
(d) and (g) of the
definition thereof (excluding refinancings of Subordinated Debt);
and

       

      (B)           the
issuance of Equity Interests to Persons (other than the issuance of Equity
Interests to any Restricted Company and the issuance of Disqualified Equity
Interests); minus

       

      (iii)           the
amount of Distributions made by the Companies pursuant to clause (h)
below;

       

      (e) if no
Default or Potential Default exists or arises, VRI may make Distributions on
Equity Interests (other than Disqualified Equity Interests) payable solely in
the form of common stock or other common equity interests of VRI; provided, that VRI may make
Distributions on Disqualified Equity Interests in the form of additional
Disqualified Equity Interests of the same type;

       

      (f) if no
Default or Potential Default exists or arises, the Companies may make
Distributions to their respective employees, officers, or directors in an
aggregate amount not exceeding $2,000,000 in any twelve (12) month
period;

       

      (g) so long
as no Default or Potential Default exists or arises, the redemption, repurchase,
or other acquisition of Equity Interests of VRI in exchange for, or out of the
net cash proceeds of the substantially concurrent sale (other than to a
Subsidiary of VRI) of, Equity Interests of VRI (except for any such redemption,
repurchase, or acquisition effected through the concurrent issuance of
Disqualified Stock of the same type); and

       

      (h) if no
Default or Potential Default exists or arises, the Companies may make additional
Distributions in an aggregate amount not to exceed $25,000,000 on or after the
Closing Date.

       

      
        	
                10.10  

              	
                Sale of
      Assets.

              

      

       

      No
Restricted Company may sell, assign, lease, transfer or otherwise dispose of all
or any material portion of the Critical Assets, if the ratio described in Section
11.1 would, on a pro
forma basis (taking the disposition into account), increase as a result
of such disposition.

       

      
        	
                10.11  

              	
                Acquisitions, Mergers,
      and Dissolutions.

              

      

       

      (a) Except as
permitted by this Section
10.11 and subject to Sections
9.10, 10.8, and
10.14, a
Restricted Company may not (i) acquire all or any substantial portion of the
capital stock (or other equity or voting interests) of any other Person, (ii)
acquire all or any substantial portion of the assets of any other Person, (iii)
merge or consolidate with any other Person, or (iv) liquidate, wind up or
dissolve (or suffer any liquidation or dissolution).

       

      (b) Any
Restricted Subsidiary may (i) acquire all or any substantial portion of the
capital stock (or other equity or voting interests) issued by any other
Restricted Subsidiary, (ii) acquire all or any substantial portion of the assets
of any other Restricted Subsidiary, and (iii) merge or consolidate with any
other Restricted Subsidiary (and, in the case of such merger or consolidation
or, in the case of the conveyance or distribution of such assets, the
non-surviving or selling entity, as the case may be, may be liquidated, wound up
or dissolved), provided,
that (1) if Borrower is a party to such merger or consolidation, then
Borrower must be the surviving entity, (2) if Borrower is not a party to such
merger or consolidation, and the surviving entity will own Existing Critical
Assets, then a Wholly Owned Restricted Subsidiary of Borrower must be the
surviving entity, (3) if Borrower is not a party to such merger or
consolidation, and the surviving entity will own Additional Critical Assets,
then a Restricted Subsidiary of Borrower must be the surviving entity, so long as the conditions for
the ownership of Additional Critical Assets by Restricted Subsidiaries of
Borrower set forth in Section 9.7(b)
herein are satisfied, and (4) if Borrower is not a party to such merger
or consolidation, and the surviving entity will not own Critical Assets, a
Restricted Subsidiary must be the surviving entity.

       

      (c) Subject
to compliance with Section
9.10 herein, any Restricted Subsidiary may (i) acquire all or any
substantial portion of the capital stock (or other equity or voting interests)
issued by any other Person, (ii) acquire all or any substantial portion of the
assets of any other Person, or (iii) merge or consolidate with any other Person
(and, in the case of such merger or consolidation, the non-surviving entity may
be liquidated, wound up or dissolved), so long as, with respect to
any transaction contemplated by items (i)
through (iii)
above:

       

      (i)           the
Purchase Price for such transaction (A) when aggregated with the Purchase Price
of all other acquisitions or mergers consummated by the Restricted Subsidiaries
during the most-recent four fiscal quarters, does not exceed $150,000,000, and
(B) when aggregated with the Purchase Price of all other acquisitions or mergers
consummated by the Restricted Subsidiaries after the Closing Date, does not
exceed $300,000,000,

       

      (ii)           the
ratio of Funded Debt on the closing date of the transaction to Adjusted EBITDA
for the most-recently-ended four fiscal quarters, after giving pro forma effect
to the transaction, is less than or equal to 4.50 to 1.00; for purposes hereof,
Adjusted EBITDA for any period shall include on a pro forma basis all EBITDA
for the Restricted Companies for such period relating to assets acquired
(including, without limitation, Restricted Subsidiaries formed or acquired in
accordance with Section 9.10
hereof, and Unrestricted Subsidiaries re-designated as Restricted
Subsidiaries in accordance with Section
9.11(b) hereof) in accordance with this Agreement during such period, but
shall exclude on a pro
forma basis all EBITDA for the Restricted Companies for such period
relating to any such assets disposed of in accordance with this Agreement during
such period (including, without limitation, Restricted Subsidiaries
re-designated as Unrestricted Subsidiaries in accordance with Section
9.11(a) hereof).

       

      (iii)           such
other Person is engaged in a business in which a Restricted Company would be
permitted to engage under Section
10.14, and is organized under the Laws of the United States or
Canada,

       

      (iv)           in
respect of any such transaction for which the sum of the Purchase Price exceeds
$25,000,000, at least 15 days before the transaction’s closing date Borrower
delivers to Administrative Agent (A) a written description of the transaction,
including the funding sources, the Purchase Price, and calculations
demonstrating pro forma compliance with the terms and conditions of the Loan
Papers after giving effect to the transaction (including compliance with the
Companies’ applicable financial covenants), and (B) a copy of the executed
purchase agreement or executed merger agreement relating to the transaction
(and, to the extent available, all schedules and exhibits thereto),

       

      (v)           with
respect to a merger or consolidation, (1) if Borrower is a party to such merger
or consolidation, Borrower must be the surviving entity, (2) if Borrower is not
a party to such merger or consolidation, and the surviving entity will own
Existing Critical Assets, then a Wholly Owned Subsidiary of Borrower must be the
surviving entity, (3) if Borrower is not a party to such merger or
consolidation, and the surviving entity will own Additional Critical Assets,
then a Restricted Subsidiary of Borrower must be the surviving entity, so long as the conditions for
the ownership of Additional Critical Assets by Restricted Subsidiaries of
Borrower set forth in Section 9.7(b)
herein are satisfied, and (4) if Borrower is not a party to such merger
or consolidation, and the surviving entity will not own Critical Assets, then a
Restricted Subsidiary  must be the surviving entity, so long as, to
the extent such surviving entity has not already done so, it shall concurrently
with (and not later than 30 days after) such merger or consolidation, execute
and deliver to Administrative Agent a Guaranty,

       

      (vi)           as
of the closing of any such transaction, the transaction has been approved and
recommended by the board of directors of the Person to be acquired or from which
such business is to be acquired,

       

      (vii)           as
of the closing of any transaction, after giving effect to such acquisition or
merger, the acquiring party is Solvent and the Companies, on a consolidated
basis, are Solvent, and

       

      (viii)           as
of the closing of any transaction, no Default or Potential Default exists or
shall occur as a result of, and after giving effect to, such
transaction.

       

      
        	
                10.12  

              	
                Assignment.

              

      

       

      No
Company shall assign or transfer any of its Rights or cause to be delegated its
duties or obligations under any of the Loan Papers.

       

      
        	
                10.13  

              	
                Fiscal Year and
      Accounting Methods.

              

      

       

      No
Company shall change its fiscal year or its method of accounting (other than immaterial changes
in methods or as required by GAAP).

       

      
        	
                10.14  

              	
                New
      Businesses.

              

      

       

      No
Restricted Company shall engage in any business, except the businesses in
which they are engaged on the Closing Date and any other Similar Business; provided, however, that the
foregoing shall not be construed to prohibit the cessation by any Company of its
business activities or the sale or transfer of the business or assets of such
Company to the extent not otherwise prohibited by this Agreement.

       

      
        	
                10.15  

              	
                Government
      Regulations.

              

      

       

      No
Company shall conduct its business in a way that it becomes regulated under the
Investment Company Act of
1940, as amended, or the Public Utility Holding Company Act
of 1935, as amended.

       

      
        	
                10.16  

              	
                Burdensome
      Agreements.

              

      

       

      No
Company shall enter into, incur or permit to exist any agreement or other
arrangement (other than this Agreement or any other Loan Paper) that prohibits,
restricts or imposes any condition upon (a) the ability of any Restricted
Company to create, incur or permit to exist any Lien upon any of its property or
assets, or (b) the ability of any Restricted Company to pay dividends or
other Distributions with respect to any shares of its capital stock to Borrower
or any Guarantor, to otherwise transfer property or assets to Borrower or any
Guarantor, to make or repay loans or advances to Borrower or any other
Guarantor, or to Guarantee the Debt of Borrower; provided, that (i) the foregoing
clauses (a)
and (b) shall
not apply to restrictions and conditions (A) imposed by Law, the Loan
Papers, the Senior Subordinated Indenture, or other Subordinated Debt issued
after the Closing Date, so
long as (1) such restrictions do not prevent, impede or impair
(I) the creation of Liens and Guarantees in favor of Lenders under the Loan
Papers or (II) the satisfaction of the obligations of
Borrower and Guarantors under the Loan Papers, and (2) Subordinated Debt (other
than Subordinated Debt that contains terms and provisions no more restrictive
than the terms and provisions of the Senior Subordinated Indenture as of the
Closing Date and provides that references to this Agreement therein shall
provide for the renewal, extension, amendment or modification of this Agreement
from time to time) issued after the Closing Date contains terms and provisions
acceptable to Administrative Agent, (B) contained in agreements relating to
the sale of a Subsidiary, so
long as the sale of such Subsidiary is permitted pursuant to this
Agreement, and (C) contained in agreements set forth on Schedule
10.16; and (ii) the foregoing clause (a)
shall not apply to customary provisions in leases and other agreements
restricting the assignment thereof.

       

      
        	
                10.17  

              	
                Use of
      Proceeds.

              

      

       

      Borrower
shall not, and Borrower shall not permit any other Restricted Company to, use
any part of the proceeds of any Loan, directly or indirectly, for a purpose
which violates any Law, including, without limitation, the provisions of Regulations T, U, and X (as enacted by the Board
of Governors of the Federal Reserve System, as amended).

       

      
        	
                SECTION
      11                                  

              	
                FINANCIAL
      COVENANTS.

              

      

       

      So long
as Lenders are committed to fund Loans and the L/C Issuers are committed to
issue L/Cs under this Agreement, and thereafter until the Obligation is paid and
performed in full (except for provisions under
the Loan Papers expressly intended to survive payment of the Obligation and
termination of the Loan Papers), Borrower covenants and agrees to comply with
each of the following ratios.  For purposes of determining each such
ratio, (a) Adjusted EBITDA for any period shall include on a pro forma basis all EBITDA
for the Restricted Companies for such period relating to assets acquired
(including, without limitation, Restricted Subsidiaries formed, acquired, or
added in accordance with Section 9.10
hereof, and Unrestricted Subsidiaries designated or re-designated as
Restricted Subsidiaries in accordance with Section
9.11(b) hereof) in accordance with this Agreement during such period, but
shall exclude on a pro
forma basis all EBITDA for the Companies for such period relating to any
such assets disposed of in accordance with this Agreement during such period
(including, without limitation, Restricted Subsidiaries re-designated as
Unrestricted Subsidiaries in accordance with Section
9.11(a) hereof), and (b) Borrower shall calculate each such ratio after
giving effect to the provisions of Section 1.3
hereof, as applicable.

       

      
        	
                11.1  

              	
                Maximum Leverage
      Ratios.

              

      

       

      (a)           Funded Debt to Adjusted
EBITDA.  As calculated as of the last day of each fiscal
quarter of the Restricted Companies, the Restricted Companies shall not permit
the ratio of (i) the unpaid principal amount of Funded Debt existing as of such
last day to (ii) Adjusted EBITDA for the four fiscal quarters ending on such
last day to exceed the following:

       

      
        	
                As
      of the last day of each fiscal quarter ending January 31, April 30, and
      July 31:

              	
                4.50
      to 1.00

              	 
      
	
                As
      of the last day of each fiscal quarter ending October 31:

              	
                5.00
      to 1.00

              	 
      

      

      

      (b)           Senior Debt to Adjusted
EBITDA.  As calculated as of the last day of each fiscal
quarter of the Restricted Companies, the Restricted Companies shall not permit
the ratio of (i) the unpaid amount of Senior Debt existing as of such last day
to (ii) Adjusted EBITDA for the four fiscal quarters ending on such last day to
exceed the following:

       

      
        	
                As
      of the last day of each fiscal quarter ending January 31, April 30, and
      July 31:

              	
                3.25
      to 1.00

              
	
                As
      of the last day of each fiscal quarter ending October 31:

              	
                3.50
      to 1.00

              

      

      

      
        	
                11.2  

              	
                Minimum Fixed Charge
      Coverage Ratio.

              

      

       

      As
calculated as of the last day of each fiscal quarter of the Restricted
Companies, the Restricted Companies shall not permit the ratio of (a) Adjusted
EBITDA for the four fiscal quarters ending on such last day minus expenses for cash
income Taxes paid (adjusted for any Tax refunds received with respect thereto)
minus Required Capital
Expenditures, to (b) scheduled principal and interest payments on the Obligation
and on all other Funded Debt (excluding amortization of deferred financing costs
and original issue discounts) plus Distributions (other than of stock) made by
VRI, in each case in such four fiscal quarters, to be less than
1.25:1.00.

      

      
        	
                11.3  

              	
                Minimum Net
      Worth.

              

      

       

      Shareholders’
Equity may not at any time be less than an amount equal to the sum of (a) $414,505,800,
plus (b) 75% of the Net
Income of the Restricted Companies, if positive, for each fiscal year completed
after October 31, 2004, plus (d) 100% of any Net
Proceeds received by any Restricted Company (other than from another
Company) from the offering, issuance, or sale of equity securities of a
Restricted Company after October 31, 2004.

       

      
        	
                11.4  

              	
                Interest Coverage
      Ratio.

              

      

       

      As
calculated as of the last day of each fiscal quarter of the Restricted
Companies, the Restricted Companies shall not permit the ratio of (a) Adjusted
EBITDA for the four fiscal quarters ending on such last day to (b) interest on
Funded Debt (excluding amortization of deferred financing costs and original
issue discounts) in
such four fiscal quarters to be less than 2.50 to
1.00.

      

      
        	
                11.5  

              	
                Capital
      Expenditures.

              

      

       

      The
Restricted Companies may not make or become legally obligated to make any
expenditure in respect of the purchase or other acquisition of any fixed or
capital asset (excluding (a) normal replacements and maintenance which are
properly charged to current operations, and (b) such expenditures relating
to real estate held for resale), except for capital
expenditures in the ordinary course of business not exceeding, in the aggregate
for the Restricted Companies during each fiscal year, an amount equal to 10% of
the Total Assets as of the last day of such fiscal year as reflected on the
Companies’ audited Financial Statement for such fiscal year.

       

      
        	
                SECTION
      12                                  

              	
                DEFAULT.

              

      

       

      The term
“Default” means
the occurrence of any one or more of the following events:

       

      
        	
                12.1  

              	
                Payment of
      Obligation.

              

      

       

      The
failure or refusal of any Company to pay (a) any principal payment contemplated
by Sections
3.2(b) and 3.2(c) of
this Agreement after such payment becomes due and payable hereunder, (b) any
principal payment (other
than those contemplated by Sections
3.2(b) and 3.2(c)) or
interest payment contemplated to be made hereunder within 3 Business Days after
demand therefor by Administrative Agent, (c) any amount contemplated to be paid
hereunder in respect of fees, costs, expenses or indemnities within 10 Business
Days after demand therefor by Administrative Agent and (d) any amount in respect
of its reimbursement obligations in connection with any drawing under an L/C
(including, without limitation, any L/C Borrowing) within 3 Business Days after
demand therefor by Administrative Agent.

       

      
        	
                12.2  

              	
                Covenants.

              

      

       

      The
failure or refusal of any Company to punctually and properly perform, observe,
and comply with:

       

      (a) Any
covenant, agreement, or condition applicable to it contained in Sections 9.2,
10 (other than
Sections
10.1, 10.3, 10.6 and 10.7) or
11;
or

       

      (b) Any other
covenant, agreement, or condition applicable to it contained in any Loan Paper
(other than the
covenants to pay the Obligation and the covenants in clause (a)
preceding), and such failure or refusal continues for 30 days.

       

      
        	
                12.3  

              	
                Debtor
      Relief.

              

      

       

      Any
Restricted Company (a) fails, or admits in writing its inability, to pay its
Debts generally as they become due, (b) voluntarily seeks, consents to, or
acquiesces in the benefit of any Debtor Relief Law, (c) becomes a party to or is
made the subject of any proceeding provided for by any Debtor Relief Law that
could suspend or otherwise adversely affect the Rights of Administrative Agent
or any Lender granted in the Loan Papers (unless, if the proceeding is
involuntary, the applicable petition is dismissed within 60 days after its
filing), (d) becomes subject to an order for relief granted under the Bankruptcy
Reform Act of 1978, as amended from time to time (other than as a creditor or
claimant), or (e) takes any action to authorize any of the foregoing actions set
forth in clauses
(a) through (d)
herein.

       

      
        	
                12.4  

              	
                Judgments and
      Attachments.

              

      

       

      Any
Restricted Company fails, within 60 days after entry, to pay, bond or otherwise
discharge any judgment or order for the payment of money in excess of $5,000,000
(individually or collectively) or any warrant of attachment, sequestration or
similar proceeding against any assets of any Restricted Company having a value
(individually or collectively) of $5,000,000, which is neither (a) stayed on
appeal nor (b) diligently contested in good faith by appropriate proceedings and
adequate reserves have been set aside on its books in accordance with
GAAP.

       

      
        	
                12.5  

              	
                Government
      Action.

              

      

       

      Any
Governmental Authority condemns, seizes or otherwise appropriates, or takes
custody or control of all or any substantial portion of the Critical
Assets.

       

      
        	
                12.6  

              	
                Misrepresentation.

              

      

       

      Any
material representation or warranty made or deemed made by any Company in
connection with any Loan Paper at any time proves to have been materially
incorrect when made.

       

      
        	
                12.7  

              	
                Ownership.

              

      

       

      There
shall occur a Change of Control Transaction.

       

      
        	
                12.8  

              	
                Default Under Other
      Agreements.

              

      

       

      Subject
to Section
12.9 below, (a) any Restricted Company fails to pay when due (after lapse
of any applicable grace period) any recourse Debt in excess (individually or
collectively) of $10,000,000; or (b) any default exists under any agreement to
which any Restricted Company is a party, the effect of which is to cause, or to
permit any Person (other
than a Restricted Company) to cause, any recourse obligation in excess
(individually or collectively) of $10,000,000 to become due and payable by any
Restricted Company before its stated maturity, except to the extent such
obligation is declared to be due and payable as a result of the sale of any
asset to which it relates.

       

      
        	
                12.9  

              	
                Subordinated
      Debt.

              

      

       

      (a)           (i)  The
occurrence of any “default,” “event of default,” or other
breach under or with respect to any Subordinated Debt, which “default,” “event of default,” or other
breach remains uncured (after lapse of any applicable cure periods) on any date
of determination; (ii) the trustee with respect to, or any holder of, any
Subordinated Debt shall effectively declare all or any portion of such Debt or
obligation thereunder due and payable prior to the stated maturity thereof; or
(iii) any obligations under the Subordinated Debt become due before its
stated maturity by acceleration of the maturity thereof.

       

      (b)           The
payment directly or indirectly (including, without limitation, any payment in
respect of any sinking fund, defeasance, redemption, or payment of any dividend
or distribution) by any Company of any amount of any Subordinated Debt in a
manner or at a time during which such payment is not permitted under the terms
of the Loan Papers or under any instrument or document evidencing or creating
the Subordinated Debt, including, without limitation, any subordination
provisions set forth therein, or if an event shall occur, including, without
limitation, a “Change of
Control” as defined in any agreement evidencing or creating the
Subordinated Debt, and (i) such event results in the ability of the trustee
or the holders of any such Debt or obligation to request or require (or any
Company shall automatically be so required) to redeem or repurchase such Debt or
obligation, or (ii) any Company shall initiate notice of redemption to
holders of the Subordinated Debt or obligation, in connection with a redemption
of any Debt or obligation arising under such agreements or
instruments.

       

      
        	
                12.10  

              	
                Validity and
      Enforceability of Loan
Papers.

              

      

       

      Except in
accordance with its terms or as otherwise expressly permitted by this Agreement,
any Loan Paper at any time after its execution and delivery ceases to be in full
force and effect in any material respect or is declared to be null and void or
its validity or enforceability is contested by any Company party thereto or any
Company denies that it has any further liability or obligations under any Loan
Paper to which it is a party.

       

      
        	
                12.11  

              	
                Employee
      Plans.

              

      

       

      Except
where the occurrence or existence is not a Material Adverse Event or, in any
event, likely to result in a Lien on the assets of any Company or the Companies
securing liability for any Company or the Companies (individually or when
aggregated with any liability of the Companies contemplated by Section 8.8
and
Section 8.9 herein that is reasonably likely to be secured by Liens) in
excess of the Threshold Amount, (a) an Employee Plan incurs an “accumulated funding deficiency”
(as defined in section 302 of ERISA or section 412 of the Code), (b) a
Company incurs liability under ERISA to the PBGC in connection with any Employee
Plan (other than
required insurance premiums paid when due), (c) a Company withdraws in whole or
in part from participation in a Multiemployer Plan, (d) a Company engages in any
“prohibited transaction”
(as defined in section
406 of ERISA or section 4975 of the Code), or (e) a “reportable event” (as defined in section 4043 of
ERISA) occurs with respect to an Employee Plan, excluding events for which the
notice requirement is waived under applicable PBGC regulations.

       

      
        	
                SECTION
      13                                  

              	
                RIGHTS
      AND REMEDIES.

              

      

       

      
        	
                13.1  

              	
                Remedies Upon
      Default.

              

      

       

      (a) If a
Default exists under Section
12.3, the commitment to extend credit under this Agreement automatically
terminates, the entire unpaid balance of the Obligation automatically becomes
due and payable without any action of any kind whatsoever, and Borrower must
provide cash collateral in an amount equal to the then-existing L/C
Exposure.

       

      (b) If any
Default exists, subject to the terms of Section
14.5, Administrative Agent may (with the consent of, and must, upon the
request of, Required Lenders), do any one or more of the
following:  (i) if the maturity of the Obligation has not already been
accelerated under Section
13.1(a), declare the entire unpaid balance of all or any part of the
Obligation immediately due and payable, whereupon it is due and payable; (ii)
terminate the Commitments of Lenders; (iii) reduce any claim to judgment; (iv)
demand Borrower to provide cash collateral in an amount equal to the L/C
Exposure then existing; and (v) exercise any and all other legal or equitable
Rights afforded by the Loan Papers, the Laws of the State of New York, or any
other applicable jurisdiction.

       

      
        	
                13.2  

              	
                Company
      Waivers.

              

      

       

      To
the extent permitted by Law, each Company waives presentment and demand for
payment, protest, notice of intention to accelerate, notice of acceleration and
notice of protest and nonpayment, and agrees that its liability with respect to
all or any part of the Obligation is not affected by any renewal or extension in
the time of payment of all or any part of the Obligation, by any indulgence, or
by any release or change in any security for the payment of all or any part of
the Obligation.

       

      
        	
                13.3  

              	
                Performance by
      Administrative Agent.

              

      

       

      If any
covenant, duty or agreement of any Company is not performed in accordance with
the terms of the Loan Papers, Administrative Agent may, while a Default exists,
at its option (but subject to the approval of Required Lenders), perform or
attempt to perform that covenant, duty or agreement on behalf of that Company
(and any amount expended by Administrative Agent in its performance or attempted
performance is payable by the Companies, jointly and severally, to
Administrative Agent on demand, becomes part of the Obligation, and bears
interest at the Default Rate from the date of Administrative Agent’s expenditure
until paid).  However, Administrative Agent does not assume and shall
never have, except by
its express written consent, any liability or responsibility for the performance
of any covenant, duty or agreement of any Company.

       

      
        	
                13.4  

              	
                Not in
      Control.

              

      

       

      None of
the covenants or other provisions contained in any Loan Paper shall, or shall be
deemed to, give Administrative Agent, the L/C Issuers, or Lenders the Right to
exercise control over the assets (including, without limitation, real property),
affairs, or management of any Company; the power of Administrative Agent, the
L/C Issuers, and Lenders is limited to the Right to exercise the remedies
provided in this Section
13.

       

      
        	
                13.5  

              	
                Course of
      Dealing.

              

      

       

      The
acceptance by Administrative Agent or Lenders of any partial payment on the
Obligation shall not be deemed to be a waiver of any Default then
existing.  No waiver by Administrative Agent, the L/C Issuers,
Required Lenders, or Lenders of any Default shall be deemed to be a waiver of
any other then-existing or subsequent Default.  No delay or omission
by Administrative Agent, the L/C Issuers, Required Lenders, or Lenders in
exercising any Right under the Loan Papers will impair that Right or be
construed as a waiver thereof or any acquiescence therein, nor will any single
or partial exercise of any Right preclude other or further exercise thereof or
the exercise of any other Right under the Loan Papers or otherwise.

       

      
        	
                13.6  

              	
                Cumulative
      Rights.

              

      

       

      Notwithstanding
anything to the contrary provided herein, all Rights available to Administrative
Agent, the L/C Issuers, Required Lenders, and Lenders under the Loan Papers are
cumulative of and in addition to all other Rights granted to Administrative
Agent, the L/C Issuers, Required Lenders, and Lenders at Law or in equity,
whether or not the Obligation is due and payable and whether or not
Administrative Agent, the L/C Issuers, Required Lenders, or Lenders have
instituted any suit for collection, foreclosure, or other action in connection
with the Loan Papers.

       

      
        	
                13.7  

              	
                Application of
      Proceeds.

              

      

       

      Any and
all proceeds ever received by Administrative Agent or Lenders from the exercise
of any Rights pertaining to the Obligation shall be applied to the Obligation
according to Section
3.10.

       

      
        	
                13.8  

              	
                Diminution in Value of
      Collateral.

              

      

       

      Neither
Administrative Agent nor any Lender has any liability or responsibility
whatsoever for any diminution in or loss of value of any Collateral or other
collateral ever securing payment or performance of all or any part of the
Obligation (other than
diminution in or loss of value caused by its gross negligence or willful
misconduct).

       

      
        	
                13.9  

              	
                Certain
      Proceedings.

              

      

       

      The
Companies will promptly execute and deliver, or cause the execution and delivery
of, all applications, certificates, instruments, registration statements and all
other documents and papers Administrative Agent, the L/C Issuers, Required
Lenders, or Lenders reasonably request in connection with the obtaining of any
consent, approval, registration, qualification, permit, license or authorization
of any Governmental Authority or other Person necessary or appropriate for the
effective exercise of any Rights under the Loan Papers.  Because
Borrower agrees that Administrative Agent’s, the L/C Issuers’, Required
Lenders’, and Lenders’ remedies at Law for failure of the Companies to comply
with the provisions of this paragraph would be inadequate and that failure would
not be adequately compensable in damages, Borrower agrees that the covenants of
this paragraph may be specifically enforced.

       

      
        	
                SECTION
      14                                  

              	
                ADMINISTRATIVE
      AGENT.

              

      

       

      14.1 Appointment and
Authority.

       

      Each
Lender and each L/C Issuer hereby irrevocably appoints Bank of America to act on
its behalf as Administrative Agent hereunder and under the other Loan Papers and
authorizes Administrative Agent to take such actions on its behalf and to
exercise such powers as are delegated to Administrative Agent by the terms
hereof or thereof, together with such actions and powers as are reasonably
incidental thereto.  The provisions of this Article are solely for the
benefit of Administrative Agent, Lenders, and the L/C Issuers, and neither
Borrower nor any other Company have rights as a third party beneficiary of any
of such provisions.

       

      
        	
                14.2  

              	
                Delegation of
      Duties.

              

      

       

      Administrative
Agent may perform any and all of its duties and exercise its rights and powers
hereunder or under any other Loan Paper by or through any one or more sub-agents
appointed in good faith by Administrative Agent.  Administrative Agent
and any such sub-agent may perform any and all of its duties and exercise its
rights and powers by or through their respective Related Parties.  The
exculpatory provisions of this Article shall apply to any such sub-agent and to
the Related Parties of Administrative Agent and any such sub-agent, and shall
apply to their respective activities in connection with the syndication of the
credit facilities provided for herein as well as activities as Administrative
Agent.

       

      14.3 Rights as a
Lender.

       

      The
Person serving as Administrative Agent hereunder shall have the same rights and
powers in its capacity as a Lender as any other Lender and may exercise the same
as though it were not Administrative Agent and the term “Lender” or “Lenders” shall, unless
otherwise expressly indicated or unless the context otherwise requires, include
the Person serving as Administrative Agent hereunder in its individual
capacity.  Such Person and its Affiliates may accept deposits from,
lend money to, act as the financial advisor or in any other advisory capacity
for, and generally engage in any kind of business with Borrower or any
Subsidiary or other Affiliate thereof as if such Person were not Administrative
Agent hereunder and without any duty to account therefor to
Lenders.  Lenders acknowledge that, pursuant to such activities, Bank
of America or its Affiliates may receive information regarding any Restricted
Company or its Affiliates (including information that may be subject to
confidentiality obligations in favor of such Restricted Company or such
Affiliate) and acknowledge that Administrative Agent shall be under no
obligation to provide such information to them.

       

      14.4 Reliance by Administrative
Agent.

       

      Administrative
Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument,
document, or other writing (including any electronic message, Internet or
intranet website posting, or other distribution) believed by it to be genuine
and to have been signed, sent, or otherwise authenticated by the proper
Person.  Administrative Agent also may rely upon any statement made to
it orally or by telephone and believed by it to have been made by the proper
Person, and shall not incur any liability for relying thereon.  In
determining compliance with any condition hereunder to the making of a Loan, or
the issuance of an L/C, that by its terms must be fulfilled to the satisfaction
of a Lender or an L/C Issuer, Administrative Agent may presume that such
condition is satisfactory to such Lender or the applicable L/C Issuer unless
Administrative Agent shall have received notice to the contrary from such Lender
or the applicable L/C Issuer prior to the making of such Loan or the issuance of
such L/C.  Administrative Agent may consult with legal counsel (who
may be counsel for Borrower), independent accountants, and other experts
selected by it, and shall not be liable for any action taken or not taken by it
in accordance with the advice of any such counsel, accountants, or
experts.

       

      
        	
                14.5  

              	
                Exculpatory
      Provisions.

              

      

       

      Administrative
Agent shall not have any duties or obligations except those expressly set forth
herein and in the other Loan Papers.  Without limiting the generality
of the foregoing, Administrative Agent:

       

      (a)           shall
not be subject to any fiduciary or other implied duties, regardless of whether a
Default or Potential Default has occurred and is continuing;

       

      (b)           shall
not have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated hereby or
by the other Loan Papers that Administrative Agent is required to exercise as
directed in writing by Required Lenders (or such other number or percentage of
Lenders as shall be expressly provided for herein or in the other Loan Papers),
provided, that Administrative Agent
shall not be required to take any action that, in its opinion or the opinion of
its counsel, may expose Administrative Agent to liability or that is contrary to
any Loan Paper or applicable Law; and

       

      (c)           shall
not, except as expressly set forth herein and in the other Loan Papers, have any
duty to disclose, and shall not be liable for the failure to disclose, any
information relating to Borrower or any of its Affiliates that is communicated
to or obtained by the Person serving as Administrative Agent or any of its
Affiliates in any capacity.

       

      Administrative
Agent shall not be
liable for any action taken or not taken by it (i) with the consent or at the
request of Required Lenders (or such other number or percentage of Lenders as
shall be necessary, or as Administrative Agent shall believe in good faith shall
be necessary, under the circumstances as provided in Sections
15.9 and 13.1), or
(ii) in the absence of its own gross negligence or willful
misconduct.  Administrative Agent shall be deemed not to have
knowledge of any Default or Potential Default unless and until notice describing
such Default or Potential Default is given to Administrative Agent by Borrower,
a Lender, or an L/C Issuer.

       

      Administrative
Agent shall not be responsible for or have any duty to ascertain or inquire into
(i) any statement, warranty, or representation made in or in connection with
this Agreement or any other Loan Paper, (ii) the contents of any certificate,
report, or other document delivered hereunder or thereunder or in connection
herewith or therewith, (iii) the performance or observance of any of the
covenants, agreements, or other terms or conditions set forth herein or therein
or the occurrence of any Default or Potential Default, (iv) the validity,
enforceability, effectiveness, or genuineness of this Agreement, any other Loan
Paper, or any other agreement, instrument, or document, or (v) the satisfaction
of any condition set forth in Section
7 or
elsewhere herein, other than to confirm receipt of items expressly required to
be delivered to Administrative Agent. 

       

      
        	
                14.6  

              	
                Resignation as
      Administrative Agent.

              

      

       

      Administrative
Agent may at any time give notice of its resignation to Lenders, the L/C
Issuers, and Borrower.  Upon receipt of any such notice of
resignation, Required Lenders shall have the right to appoint a successor, which
shall be a bank with an office in the United States, or an Affiliate of any such
bank with an office in the United States, and shall  be consented to
by Borrower at all times other than during the existence of a Default or
Potential Default (which consent of Borrower shall not be unreasonably
withheld).  If no such successor shall have been so appointed by
Required Lenders and shall have accepted such appointment within 30 days
after the retiring Administrative Agent gives notice of its resignation, then
the retiring Administrative Agent may, after consultation with Borrower, on
behalf of Lenders and the L/C Issuers, appoint a successor Administrative Agent
meeting the qualifications set forth above; provided, that if Administrative Agent
shall notify Borrower and Lenders that no qualifying Person has accepted such
appointment, then such resignation shall nonetheless become effective in
accordance with such notice and (1) the retiring Administrative Agent shall
be discharged from its duties and obligations hereunder and under the other Loan
Papers (except that in the case of any collateral security held by
Administrative Agent on behalf of Lenders or the L/C Issuers under any of the
Loan Papers, the retiring Administrative Agent shall continue to hold such
collateral security until such time as a successor Administrative Agent or
collateral agent is appointed), and (2) all payments, communications, and
determinations provided to be made by, to, or through Administrative Agent shall
instead be made by or to each Lender and the applicable L/C Issuer directly,
until such time as Required Lenders appoint a successor Administrative Agent as
provided for above in this Section.  Upon the acceptance of a
successor’s appointment as Administrative Agent hereunder, such successor shall
succeed to and become vested with all of the rights, powers, privileges, and
duties of the retiring (or retired) Administrative Agent, and the retiring
Administrative Agent shall be discharged from all of its duties and obligations
hereunder or under the other Loan Papers (if not already discharged therefrom as
provided above in this Section).  The fees payable by Borrower to a
successor Administrative Agent shall be the same as those payable to its
predecessor unless otherwise agreed between Borrower and such
successor.  After the retiring Administrative Agent’s resignation
hereunder and under the other Loan Papers, the provisions of this Section 14
and Section
15.4 shall continue in effect for the benefit of such retiring
Administrative Agent, its sub-agents, and their respective Related Parties in
respect of any actions taken or omitted to be taken by any of them while the
retiring Administrative Agent was acting as Administrative Agent.

       

      Any
resignation by Bank of America as Administrative Agent pursuant to this Section
shall also constitute its resignation as L/C Issuer and Swing Line
Lender.  Upon the acceptance of a successor’s appointment as
Administrative Agent hereunder, (a) such successor shall succeed to and become
vested with all of the rights, powers, privileges, and duties of the retiring
L/C Issuer and Swing Line Lender, (b) the retiring L/C Issuer and Swing Line
Lender shall be discharged from all of their respective duties and obligations
hereunder or under the other Loan Papers, and (c) the successor L/C Issuer shall
issue letters of credit in substitution for the L/Cs, if any, outstanding at the
time of such succession or make other arrangements satisfactory to the retiring
L/C Issuer to effectively assume the obligations of the retiring L/C Issuer with
respect to such L/Cs.

       

      
        	
                14.7  

              	
                Non-Reliance on
      Administrative Agent and Other
Lenders.

              

      

       

      Each
Lender and each L/C Issuer acknowledges that it has, independently and without
reliance upon Administrative Agent or any other Lender or any of their Related
Parties and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Agreement.  Each Lender and each L/C Issuer also acknowledges that it
will, independently and without reliance upon Administrative Agent or any other
Lender or any of their Related Parties and based on such documents and
information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Agreement,
any other Loan Paper, or any related agreement or any document furnished
hereunder or thereunder.

       

      
        	
                14.8  

              	
                Administrative Agent
      May File Proofs of Claim.

              

      

       

      In case
of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition, or other judicial
proceeding relative to any Restricted Company, Administrative Agent
(irrespective of whether the principal of any Loan or L/C Exposure shall then be
due and payable as herein expressed or by declaration or otherwise and
irrespective of whether Administrative Agent shall have made any demand on
Borrower) shall be entitled and empowered, by intervention in such proceeding or
otherwise:

       

      (a) to file
and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans, L/C Exposure, and all other Obligation that are
owing and unpaid and to file such other documents as may be necessary or
advisable in order to have the claims of Lenders and Administrative Agent
(including any claim for the reasonable compensation, expenses, disbursements,
and advances of Lenders and Administrative Agent, and their respective agents
and counsel and all other amounts due Lenders, Administrative Agent and the L/C
Issuers, as applicable, under Sections
2.3(c), 5.3, and 15.4)
allowed in such judicial proceeding; and

       

      (b) to
collect and receive any monies or other property payable or deliverable on any
such claims and to distribute the same;

       

      and any
custodian, receiver, assignee, trustee, liquidator, sequestrator, or other
similar official in any such judicial proceeding is hereby authorized by each
Lender to make such payments to Administrative Agent and, in the event that
Administrative Agent shall consent to the making of such payments directly to
Lenders, to pay to Administrative Agent any amount due for the reasonable
compensation, expenses, disbursements, and advances of Administrative Agent and
its agents and counsel, and any other amounts due Administrative Agent under
Sections
5.3 and
15.4.

       

      Nothing
contained herein shall be deemed to authorize Administrative Agent to authorize
or consent to or accept or adopt on behalf of any Lender any plan of
reorganization, arrangement, adjustment or composition affecting the Obligation
or the rights of any Lender or to authorize Administrative Agent to vote in
respect of the claim of any Lender in any such proceeding.

       

      
        	
                14.9  

              	
                Collateral and
      Guaranty Matters.

              

      

       

      (a)           Upon
the occurrence and continuance of a Default, Lenders agree to promptly confer in
order that Required Lenders or Lenders, as the case may be, may agree upon a
course of action for the enforcement of the Rights of Lenders; and
Administrative Agent shall be entitled to refrain from taking any action
(without incurring any liability to any Person for so refraining) unless and
until Administrative Agent shall have received instructions from Required
Lenders.  All Rights of action under the Loan Papers and all Rights to
the Collateral, if any, hereunder may be enforced by Administrative Agent and
any suit or proceeding instituted by Administrative Agent in furtherance of such
enforcement shall be brought in its name as Administrative Agent without the
necessity of joining as plaintiffs or defendants any other Lender, and the
recovery of any judgment shall be for the benefit of Lenders subject to the
expenses of Administrative Agent. In actions with respect to any property of any
Restricted Company, Administrative Agent is acting for the ratable benefit of
each Lender.  Any and all agreements to subordinate (whether made
heretofore or hereafter) other indebtedness or obligations of any Restricted
Company to the Obligation shall be construed as being for the ratable benefit of
each Lender.

       

      (b)           Each
Lender authorizes and directs Administrative Agent to enter into the Security
Documents for the benefit of Lenders.  Except to the extent
unanimity is required hereunder, (i) each Lender agrees that any action taken by
Required Lenders in accordance with the provisions of the Loan Papers, and the
exercise by Required Lenders of the powers set forth herein or therein, together with such other
powers as are reasonably incidental thereto, shall be authorized and binding
upon all Lenders, and (ii) each Lender agrees that any action taken by Required
Lenders in accordance with the provisions of the Loan Papers, and the exercise
by Required Lenders of the powers set forth herein or therein, together with such other
powers as are reasonably incidental thereto, shall be authorized and binding
upon all Lenders.

       

      (c)           Administrative
Agent is hereby authorized on behalf of all Lenders, without the necessity of
any notice to or further consent from any Lender, from time to time to take any
action with respect to any Collateral or Security Documents which may be
necessary to perfect and maintain perfected the Liens upon the Collateral
granted pursuant to the Security Documents.

       

      (d)           Administrative
Agent shall have no obligation whatsoever to any Lender or to any other Person
to assure that the Collateral exists or is owned by any Restricted Company or is
cared for, protected, or insured or has been encumbered or that the Liens
granted to Administrative Agent herein or pursuant hereto have been properly or
sufficiently or lawfully created, perfected, protected, or enforced, or are
entitled to any particular priority, or to exercise at all or in any particular
manner or under any duty of care, disclosure, or fidelity, or to continue
exercising, any of the Rights granted or available to Administrative Agent in
this Section
14.9 or in any of the Security Documents; it being understood and
agreed that in respect of the Collateral, or any act, omission, or event related
thereto, Administrative Agent may act in any manner it may deem appropriate, in
its sole discretion, given Administrative Agent’s own interest in the Collateral
as one of Lenders and that Administrative Agent shall have no duty or liability
whatsoever to any Lender, other than to act without
gross negligence or willful misconduct.

       

      (e)           Lenders
irrevocably authorize Administrative Agent (or in the case of Bond Rights, the
L/C Issuers), at its option and in its discretion, (i) to release any Lien on
any property granted to or held by Administrative Agent under any Loan Paper (A)
upon termination of the Total Commitment and payment in full of all Obligation
(other than contingent indemnification obligations) and the expiration or
termination of all L/Cs, (B) as permitted under Section
9.11, (C) constituting property being sold or disposed of as permitted
under Section
10.10, if Administrative Agent determines that the property being sold or
disposed is being sold or disposed in accordance with the requirements and
limitations of Section
10.10 and Administrative Agent concurrently receives all mandatory
prepayments with respect thereto, if any, or (D) if approved, authorized or
ratified in writing by Required Lenders, subject to Section
15.9, unless such Liens are held under any Bond Document; (ii) to release
(or authorize the release by the applicable L/C Issuer of) any Collateral held
by Administrative Agent (or the applicable L/C Issuer) under or pursuant to any
Bond Document upon the reimbursement of any Bond Purchase Drawing in accordance
with Section
2.3(j) herein; and (iii) to release any Restricted Company from its
Guaranty (A) upon full payment of the Obligation, (B) as permitted under Section
9.11, (C) in connection with the sale of disposition of the stock (or
other equity interest) issued by such Restricted Company permitted under Section
10.10, if Administrative Agent determines that the disposition or sale is
in accordance with the requirements and limitations of Section
10.10 and Administrative Agent concurrently receives all mandatory
prepayments with respect thereto, if any, or (D) if approved, authorized or
ratified in writing by Required Lenders, subject to Section
15.9.  Upon request by Administrative Agent at any time,
Required Lenders will confirm in writing Administrative Agent’s authority to
release any Guarantor from its obligations under the Guaranty pursuant to this
Section
14.9.

       

      (f)           In
furtherance of the authorizations set forth in this Section
14.9, each Lender and each L/C Issuer hereby irrevocably appoints
Administrative Agent its attorney-in-fact, with full power of substitution, for
and on behalf of and in the name of each such Lender and each such L/C Issuer,
(i) to enter into Security Documents (including, without limitation, any
appointments of substitute trustees under any Security Document), (ii) to
take action with respect to the Collateral and Security Documents to perfect,
maintain, and preserve Lenders’ and the L/C Issuers’ Liens, as applicable, and
(iii) to execute instruments of release or to take other action necessary
to release Liens upon any Collateral to the extent authorized in clause (e)
hereof.  This power of attorney shall be liberally, not restrictively,
construed so as to give the greatest latitude to Administrative Agent’s power,
as attorney, relative to the Collateral matters described in this Section
14.9.  The powers and authorities herein conferred on
Administrative Agent may be exercised by Administrative Agent through any Person
who, at the time of the execution of a particular instrument, is an officer of
Administrative Agent.  The power of attorney conferred by this Section
14.9(f) is granted for valuable consideration and is coupled with an
interest and is irrevocable so long as the Obligation, or any part thereof,
shall remain unpaid, Lenders are obligated to make any Loans, or the L/C Issuers
are obligated to issue L/Cs, under the Loan Papers.

       

      
        	
                14.10  

              	
                Financial
      Hedges

              

      

       

      To the
extent any Lender or any Affiliate of a Lender issues a Financial Hedge in
accordance with the requirements of the Loan Papers and accepts the benefits of
the Liens in the Collateral arising pursuant to the Security Documents, such
Lender (for itself and on behalf of any such Affiliates) agrees (a) to
appoint Administrative Agent, as its nominee and agent, to act for and on behalf
of such Lender or Affiliate thereof in connection with the Security Documents
and (b) to be bound by the terms of this Section 14;
whereupon all references to “Lender” in this Section 14
and in the Security Documents shall include, on any date of determination, any
Lender or Affiliate of a Lender that is party to a then-effective Financial
Hedge which complies with the requirements of the Loan
Papers.  Additionally, if the Obligation owed to any Lender or
Affiliate of a Lender consists solely of Debt arising under
a Financial Hedge (such Lender or Affiliate being referred to in this Section 14.10
as an “Issuing
Lender”), then such Issuing Lender (by accepting the benefits of any
Security Documents) acknowledges and agrees that pursuant to the Loan Papers and
without notice to or consent of such Issuing Lender: (w) Liens in the
Collateral may be released in whole or in part; (x) all Guaranties may be
released; (y) any Security Document may be amended, modified, supplemented,
or restated; and (z) all or any part of the Collateral may be permitted to
secure other Debt.

       

      
        	
                14.11  

              	
                Bond L/Cs and Bond
      Documents.

              

      

       

      In
addition to the authorizations set forth in Section
14.9, each Lender and each L/C Issuer hereby authorize Administrative
Agent or the L/C Issuers, as the case may be, to execute and deliver all
certificates, documents, agreements, and instruments required to be delivered
after the Closing Date pursuant to or in connection with any Bond L/C and
Bond Documents executed in connection therewith, and to take such actions as
Administrative Agent or the L/C Issuers, as the case may be, deems necessary in
connection therewith.  This authorization shall be liberally, not
restrictively, construed so as to give the greatest latitude to Administrative
Agent’s or the applicable L/C Issuer’s authority, as the case may be, relative
to the Bonds, Bond L/Cs and Bond Documents.  The powers and
authorities herein conferred on Administrative Agent and the L/C Issuers may be
exercised by Administrative Agent or the applicable L/C Issuer, as the case may
be, through any Person who, at the time of the execution of a particular
instrument, is an officer of Administrative Agent or such L/C Issuer, as
applicable.

       

      
        	
                14.12  

              	
                No Other Duties,
      Etc.

              

      

       

      Anything
herein to the contrary notwithstanding, none of the co-syndication agents,
co-documentation agents, sole lead arranger, or sole book manger listed on the
cover page hereof shall have any powers, duties, or responsibilities under this
Agreement or any of the other Loan Papers, except in its capacity, as
applicable, as Administrative Agent, a Lender, or an L/C Issuer
hereunder.  

       

      
        	
                SECTION
      15                                  

              	
                MISCELLANEOUS.

              

      

       

      
        	
                15.1  

              	
                Headings.

              

      

       

      The
headings, captions, and arrangements used in any of the Loan Papers are, unless
specified otherwise, for convenience only and shall not be deemed to limit,
amplify, or modify the terms of the Loan Papers, nor affect the meaning
thereof.

       

      
        	
                15.2  

              	
                Nonbusiness Days;
      Time.

              

      

       

      Any
payment or action that is due under any Loan Paper on a non-Business Day may be
delayed until the next-succeeding Business Day (but interest shall continue to
accrue on any applicable payment until payment is in fact made) unless the
payment concerns a Revolver Loan that is a LIBOR Loan, in which case if the
next-succeeding Business Day is in the next calendar month, then such payment
shall be made on the next-preceding Business Day.

       

      
        	
                15.3  

              	
                Notices and Other
      Communications; Facsimile
Copies.

              

      

       

      (a)           Notices
Generally.  Except in the case of notices and other
communications expressly permitted to be given by telephone (and except as
provided in subsection
(b) below), all notices and other communications provided for herein
shall be in writing and shall be delivered by hand or overnight courier service,
mailed by certified or registered mail, or sent by telecopier as follows, and
all notices and other communications expressly permitted hereunder to be given
by telephone shall be made to the applicable telephone number, as
follows:

       

      (i)           if
to Borrower, Administrative Agent, either L/C Issuer, or either Swing Line
Lender, to the address, telecopier number, electronic mail address, or telephone
number specified for such Person on Schedule
1; and

       

      (ii)           if
to any other Lender, to the address, telecopier number, electronic mail address,
or telephone number specified in its Administrative Questionnaire.

       

      Notices
sent by hand or overnight courier service, or mailed by certified or registered
mail, shall be deemed to have been given when received; notices sent by
telecopier shall be deemed to have been given when sent (except that, if not given
during normal business hours for the recipient, shall be deemed to have been
given at the opening of business on the next business day for the
recipient).  Notices delivered through electronic communications to
the extent provided in subsection
(b) below, shall be effective as provided in such subsection
(b).

       

      (b)           Electronic
Communications.  Notices and other communications to Lenders
and the L/C Issuers hereunder may be delivered or furnished by electronic
communication (including e-mail and Internet or intranet websites) pursuant to
procedures approved by Administrative Agent, provided, that the foregoing shall not
apply to notices to any Lender or either L/C Issuer pursuant to Section 2
if such Lender or such L/C Issuer, as applicable, has notified Administrative
Agent that it is incapable of receiving notices under such Section 2
by electronic communication.  Administrative Agent or Borrower may, in
its discretion, agree to accept notices and other communications to it hereunder
by electronic communications pursuant to procedures approved by it, provided, that approval of such
procedures may be limited to particular notices or communications.

       

      Unless
Administrative Agent otherwise prescribes, (i) notices and other
communications sent to an e-mail address shall be deemed received upon the
sender’s receipt of an acknowledgement from the intended recipient (such as by
the “return receipt
requested” function, as available, return e-mail, or other written
acknowledgement), provided, that if such notice or other
communication is not sent during the normal business hours of the recipient,
such notice or communication shall be deemed to have been sent at the opening of
business on the next business day for the recipient, and (ii) notices or
communications posted to an Internet or intranet website shall be deemed
received upon the deemed receipt by the intended recipient at its e-mail address
as described in the foregoing clause (i)
of notification that such notice or communication is available and identifying
the website address therefor.

       

      (c)           The
Platform.  THE PLATFORM IS PROVIDED “AS IS” AND “AS
AVAILABLE.”  THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE
ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE
PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE
BORROWER MATERIALS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED, OR
STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS, OR FREEDOM FROM VIRUSES OR
OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER
MATERIALS OR THE PLATFORM.  In no event shall Administrative Agent or
any of its Related Parties (collectively, the “Agent
Parties”) have any liability to Borrower, any Lender, either L/C Issuer,
or any other Person for losses, claims, damages, liabilities, or expenses of any
kind (whether in tort, contract, or otherwise) arising out of Borrower’s or
Administrative Agent’s transmission of Borrower Materials through the Internet,
except to the extent that such losses, claims, damages, liabilities, or expenses
are determined by a court of competent jurisdiction by a final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of
such Agent Party; provided,
however, that in no event shall any Agent Party have any liability to
Borrower, any Lender, either L/C Issuer, or any other Person for indirect,
special, incidental, consequential, or punitive damages (as opposed to direct or
actual damages).

       

      (d)           Change of
Address, Etc.  Each of Borrower, Administrative Agent, the L/C
Issuers, and the Swing Line Lenders may change its address, telecopier, or
telephone number for notices and other communications hereunder by notice to the
other parties hereto.  Each other Lender may change its address,
telecopier, or telephone number for notices and other communications hereunder
by notice to Borrower, Administrative Agent, the L/C Issuers, and the Swing Line
Lender.  In addition, each Lender agrees to notify Administrative
Agent from time to time to ensure that Administrative Agent has on record (i) an
effective address, contact name, telephone number, telecopier number, and
electronic mail address to which notices and other communications may be sent,
and (ii) accurate wire instructions for such Lender.

       

      (e)           Reliance by
Administrative Agent, L/C Issuers and Lenders. Administrative Agent,
the L/C Issuers, and Lenders shall be entitled to rely and act upon any notices
(including telephonic Loan Notices and Swing Line Loan Notices) purportedly
given by or on behalf of Borrower even if (i) such notices were not made in a
manner specified herein, were incomplete, or were not preceded or followed by
any other form of notice specified herein, or (ii) the terms thereof, as
understood by the recipient, varied from any confirmation
thereof.  Borrower shall indemnify Administrative Agent, the L/C
Issuers, each Lender, and the Related Parties of each of them from all losses,
costs, expenses, and liabilities resulting from the reliance by such Person on
each notice purportedly given by or on behalf of Borrower.  All
telephonic notices to and other telephonic communications with Administrative
Agent may be recorded by Administrative Agent, and each of the parties hereto
hereby consents to such recording.

       

      
        	
                15.4  

              	
                Expenses; Indemnity;
      Damage Waiver.

              

      

       

      (a)           Costs and
Expenses.  Borrower shall pay (i) all reasonable
out-of-pocket expenses incurred by Administrative Agent and its Affiliates
(including the reasonable fees, charges, and disbursements of counsel for
Administrative Agent) in connection with the syndication of the credit
facilities provided for herein, the preparation, negotiation, execution,
delivery, and administration of this Agreement and the other Loan Papers, or any
amendments, modifications, or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated), (ii) all reasonable out-of-pocket expenses incurred by the
L/C Issuers in connection with the issuance, amendment, renewal, or extension of
any L/C or any demand for payment thereunder, and (iii) all out-of-pocket
expenses incurred by Administrative Agent, any Lender, or the L/C Issuers
(including the fees, charges, and disbursements of any counsel for
Administrative Agent, any Lender, or the L/C Issuers), and shall pay all fees
and time charges for attorneys who may be employees of Administrative Agent, any
Lender, or the L/C Issuers, in connection with the enforcement or protection of
its rights (A) in connection with this Agreement and the other Loan Papers,
including its rights under this Section, or (B) in connection with the
Loans made or L/Cs issued hereunder, including all such out-of-pocket expenses
incurred during any workout, restructuring, or negotiations in respect of such
Loans or L/Cs.

       

      (b)           Indemnification
by Borrower.  Borrower shall indemnify Administrative Agent
(and any sub-agent thereof), each Lender, and the L/C Issuers, and each Related
Party of any of the foregoing Persons (each such Person being called an “Indemnitee”),
against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities, and related expenses (including the fees, charges, and
disbursements of any counsel for any Indemnitee), and shall indemnify and hold
harmless each Indemnitee from all fees and time charges and disbursements for
attorneys who may be employees of any Indemnitee, incurred by any Indemnitee or
asserted against any Indemnitee by any third party or by any Company arising out
of, in connection with, or as a result of (i) the execution or delivery of
this Agreement, any other Loan Paper, or any agreement or instrument
contemplated hereby or thereby, the performance by the parties hereto of their
respective obligations hereunder or thereunder, or the consummation of the
transactions contemplated hereby or thereby, or, in the case of Administrative
Agent (and any sub-agent thereof) and its Related Parties only, the
administration of this Agreement and the other Loan Papers, (ii) any Loan
or L/C or the use or proposed use of the proceeds therefrom (including any
refusal by either L/C Issuer to honor a demand for payment under a L/C if the
documents presented in connection with such demand do not strictly comply with
the terms of such L/C), (iii) any actual or alleged presence or release of
Hazardous Substances on or from any property owned or operated by the or any
other Company, or any liability under Environmental Laws related in any way to
the or any other Company, or (iv) any actual or prospective claim,
litigation, investigation, or proceeding relating to any of the foregoing,
whether based on contract, tort, or any other theory, whether brought by a third
party or by Borrower or any other Company, and regardless of whether any
Indemnitee is a party thereto, in all cases, whether or not caused
by or arising, in whole or in part, out of the comparative, contributory, or
sole negligence of the Indemnitee; provided, that such indemnity shall
not, as to any Indemnitee, be available to the extent that such losses, claims,
damages, liabilities, or related expenses (x) are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted from
the gross negligence or willful misconduct of such Indemnitee, or
(y) result from a claim brought by Borrower or any other Company against an
Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or
under any other Loan Paper, if Borrower or such Loan Party has obtained a final
and nonappealable judgment in its favor on such claim as determined by a court
of competent jurisdiction.

       

      (c)           Reimbursement by
Lenders.  To the extent that Borrower for any reason fails to
indefeasibly pay any amount required under subsection (a)
or (b) of
this Section to be paid by it to Administrative Agent (or any sub-agent
thereof), the L/C Issuers, or any Related Party of any of the foregoing, each
Lender severally agrees to pay to Administrative Agent (or any such sub-agent),
the L/C Issuers, or such Related Party, as the case may be, such Lender’s
Commitment Percentage (determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought) of such unpaid amount,
provided, that the unreimbursed
expense or indemnified loss, claim, damage, liability, or related expense, as
the case may be, was incurred by or asserted against Administrative Agent (or
any such sub-agent) or any L/C Issuer in its capacity as such, or against any
Related Party of any of the foregoing acting for Administrative Agent (or any
such sub-agent) any L/C Issuer in connection with such capacity.  The
obligations of Lenders under this subsection (c)
are subject to the provisions of Section 2.2(d).

       

      (d)           Waiver of
Consequential Damages, Etc.  To the fullest extent permitted by
applicable Law, each of Borrower and any Related Party of Borrower that is a
party to a Loan Paper from time to time shall not assert, and hereby waives, any
claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential, or punitive damages (as opposed to direct or actual damages)
arising out of, in connection with, or as a result of, this Agreement, any other
Loan Paper, or any agreement or instrument contemplated hereby, the transactions
contemplated hereby or thereby, any Loan or L/C, or the use of the proceeds
thereof.  No Indemnitee referred to in subsection
(b) above shall be liable for any damages arising from the use by
unintended recipients of any information or other materials distributed by it
through telecommunications, electronic, or other information transmission
systems in connection with this Agreement or the other Loan Papers or the
transactions contemplated hereby or thereby.

       

      (e)           Payments.  All
amounts due under this Section shall be payable not later than ten Business Days
after demand therefor.

       

      (f)           Survival.  The
agreements in this Section shall survive the resignation of Administrative Agent
and either L/C Issuer, the replacement of any Lender, the termination of the
Total Commitments, and the repayment, satisfaction, or discharge of all the
other Obligation.

       

      

       

      
        	
                15.5  

              	
                Exceptions to
      Covenants; Conflict with
Agreement.

              

      

       

      The
Companies may not take or fail to take any action that is permitted as an
exception to any of the covenants contained in any Loan Paper if that action or
omission would result in the breach of any other covenant contained in any Loan
Paper.  Any conflict or ambiguity between the terms and provisions of
this Agreement and the terms and provisions in any other Loan Paper is
controlled by the terms and provisions of this Agreement.

       

      
        	
                15.6  

              	
                Governing
      Law.

              

      

       

      (a)           GOVERNING
LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

       

      (b)           SUBMISSION TO
JURISDICTION.  BORROWER AND EACH OTHER COMPANY IRREVOCABLY AND
UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN THE COUNTY OF NEW
YORK AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW
YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN PAPER, OR FOR
RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO
IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH
ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT
OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL
COURT.  EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY
SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER
JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY
LAW.  NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN PAPER SHALL
AFFECT ANY RIGHT THAT ADMINISTRATIVE AGENT, ANY LENDER OR EITHER L/C ISSUER MAY
OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR
ANY OTHER LOAN PAPER AGAINST BORROWER OR ANY OTHER COMPANY OR ITS PROPERTIES IN
THE COURTS OF ANY JURISDICTION.

       

      (c)           WAIVER OF
VENUE.  BORROWER AND EACH OTHER COMPANY IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION
OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
PAPER IN ANY COURT REFERRED TO IN PARAGRAPH (B)
OF THIS SECTION.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN
INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH
COURT.

       

      (d)           SERVICE OF
PROCESS.  EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF
PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 15.3.  NOTHING
IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN
ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

       

      
        	
                15.7  

              	
                Severability.

              

      

       

      If any
provision of this Agreement or the other Loan Papers is held to be illegal,
invalid, or unenforceable, (a) the legality, validity, and enforceability of the
remaining provisions of this Agreement and the other Loan Papers shall not be
affected or impaired thereby, and (b) the parties shall endeavor in good faith
negotiations to replace the illegal, invalid, or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to that
of the illegal, invalid, or unenforceable provisions.  The invalidity
of a provision in a particular jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

       

      
        	
                15.8  

              	
                Waiver of Jury
      Trial.

              

      

       

      EACH
PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN PAPER OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON
CONTRACT, TORT, OR ANY OTHER THEORY).  EACH PARTY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT, OR ATTORNEY OF ANY OTHER
PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT AND THE OTHER LOAN PAPERS BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

       

      

       

      
        	
                15.9  

              	
                Amendments,
      Etc.

              

      

       

      No
amendment or waiver of any provision of this Agreement or any other Loan Paper,
and no consent to any departure by Borrower or any Guarantor therefrom, shall be
effective unless in writing signed by Required Lenders and Borrower or the
applicable Guarantor, as the case may be, and acknowledged by Administrative
Agent, and each such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given; provided, however, that no
such amendment, waiver, or consent shall:

       

      (a) waive any
condition set forth in Section
7.1 without the written consent of each Lender;

       

      (b) extend or
increase the Commitment of any Lender (or reinstate any Commitment terminated
pursuant to Section
13.1) without the written consent of such Lender;

       

      (c) postpone
any date fixed by this Agreement or any other Loan Paper for any payment of
principal, interest, fees, or other amounts due to Lenders (or any of them)
hereunder or under any other Loan Paper without the written consent of each
Lender directly affected thereby;

       

      (d) reduce
the principal of, or the rate of interest specified herein on, any Loan or L/C
Borrowing, or any fees (other than fees covered by the Fee Letters) or other
amounts payable hereunder or under any other Loan Paper without the written
consent of each Lender directly affected thereby; provided, however, that only the
consent of Required Lenders shall be necessary to amend the definition of “Default Rate” or to waive any
obligation of Borrower to pay interest or L/C Fees (as described in Section
5.3(a)) at the Default Rate;

       

      (e) change
Sections
3.10 or 3.11 in a
manner that would alter the sharing of payments required thereby without the
written consent of each Lender adversely affected thereby;

       

      (f) change
Section
10.12, any provision of this Section, the definition of “Required Lenders,” or any
other provision hereof specifying the number or percentage of Lenders required
to amend, waive, or otherwise modify any Rights hereunder or make any
determination or grant any consent hereunder, without the written consent of
each Lender;

       

      (g) waive
compliance with, amend, or release (in whole or in part) the Guaranty of VRI or
the Guaranties of all or substantially all of the Restricted Subsidiaries
without the consent of each Lender; or

       

      (h) release
all or substantially all of the Collateral without the consent of each Lender,
except that
Administrative Agent or the applicable L/C Issuer, as applicable, may release
Collateral in accordance with Section
14.9(e) herein;

       

      and,
provided further, that
(i) no amendment, waiver, or consent shall affect the Rights or duties of an L/C
Issuer under this Agreement or any L/C Agreement relating to any L/C issued or
to be issued by it unless signed by the L/C Issuer issuing such L/C in addition
to Lender required above; (ii) no amendment, waiver, or consent shall, unless in
writing and signed by the applicable Swing Line Lender in addition to Lenders
required above, affect the rights or duties of such Swing Line Lender under this
Agreement; (iii) no amendment, waiver, or consent shall, unless in writing and
signed by Administrative Agent in addition to Lenders required above, affect the
rights or duties of Administrative Agent under this Agreement or any other Loan
Paper; and (iv) the Fee Letters may be amended, or rights or privileges
thereunder waived, in a writing executed only by the parties
thereto.  Notwithstanding anything to the contrary herein, no
Defaulting Lender shall have any right to approve or disapprove any amendment,
waiver, or consent hereunder, except that the Commitment of such Defaulting
Lender may not be increased or extended without the consent of such
Defaulting Lender.

       

      
        	
                15.10  

              	
                Counterparts;
      Integration; Effectiveness.

              

      

       

      This
Agreement may be executed in counterparts (and by different parties hereto in
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract.  This
Agreement and the other Loan Papers constitute the entire contract among the
parties relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter
hereof.  Except as provided in Section
7.1, this Agreement shall become effective when it shall have been
executed by Administrative Agent and when Administrative Agent shall have
received counterparts hereof that, when taken together, bear the signatures of
each of the other parties hereto.  Delivery of an executed counterpart
of a signature page of this Agreement by telecopy shall be effective as delivery
of a manually executed counterpart of this Agreement.

       

      
        	
                15.11  

              	
                Successors and
      Assigns; Participation.

              

      

       

      (a) Successors and
Assigns Generally.  The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns permitted hereby, except that Borrower may not assign or
otherwise transfer any of its rights or obligations hereunder without the prior
written consent of Administrative Agent and each Lender and no Lender may assign
or otherwise transfer any of its rights or obligations hereunder except (i) to
an Eligible Assignee in accordance with the provisions of subsection
(b) of this Section, (ii) by way of participation in accordance with the
provisions of subsection
(d) of this Section, or (iii) by way of pledge or assignment of a
security interest subject to the restrictions of subsection
(f) or (i) of
this Section, or (iv) to an SPC in accordance with the provisions of subsection
(h) of this Section (and any other attempted assignment or transfer by
any party hereto shall be null and void).  Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby,
Participants to the extent provided in subsection
(d) of this Section and, to the extent expressly contemplated hereby, the
Indemnitees) any legal or equitable right, remedy or claim under or by reason of
this Agreement.

       

      (b) Assignments by
Lenders.  Any Lender may at any time assign to one or more
Eligible Assignees all or a portion of its rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans (including
for purposes of this subsection
(b), participations in L/C Exposure and in Swing Line Loans) at the time
owing to it); provided,
that (i) except in the
case of an assignment of the entire remaining amount of the assigning Lender’s
Commitment and the Loans at the time owing to it or in the case of an assignment
to a Lender or an Affiliate of a Lender or an Approved Fund with respect to a
Lender, the aggregate amount of the Commitment (which for this purpose includes
Loans outstanding thereunder) or, if the Commitment is not then in effect, the
principal outstanding balance of the Loans of the assigning Lender subject to
each such assignment, determined as of the date the Assignment and Assumption
with respect to such assignment is delivered to Administrative Agent or, if
“Trade
Date” is specified in the Assignment and Assumption, as of the Trade
Date, shall not be less than $5,000,000 unless each of Administrative Agent and,
so long as no Default has occurred and is continuing, Borrower otherwise
consents (each such consent not to be unreasonably withheld or delayed); provided however, that
concurrent assignments to members of an Assignee Group and concurrent
assignments from members of an Assignee Group to a single Eligible Assignee (or
to an Eligible Assignee and members of its Assignee Group) will be treated as a
single assignment for purposes of determining whether such minimum amount has
been met; (ii) each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender's rights and obligations under
this Agreement with respect to the Loans or the Commitment assigned, except that
this clause
(ii) shall not apply to rights in respect of Swing Line Loans; (iii) any
assignment of a Commitment must be approved by Administrative Agent, the L/C
Issuers, and the Swing Line Lenders unless the Person that is the proposed
assignee is itself a Lender (whether or not the proposed assignee would
otherwise qualify as an Eligible Assignee); and (iv) the parties to each
assignment shall execute and deliver to Administrative Agent an Assignment and
Assumption, together with a processing and recordation fee in the amount, if
any, required as set forth in Schedule
15.11, and the Eligible Assignee, if it shall not be a Lender, shall
deliver to Administrative Agent an Administrative
Questionnaire.  Subject to acceptance and recording thereof by
Administrative Agent pursuant to subsection
(c) of this Section, from and after the effective date specified in each
Assignment and Assumption, the Eligible Assignee thereunder shall be a party to
this Agreement and, to the extent of the interest assigned by such Assignment
and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Assumption, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender's rights and obligations under
this Agreement, such Lender shall cease to be a party hereto but shall continue
to be entitled to the benefits of Sections
4.1,
4.4, 4.5, and 15.4 with
respect to facts and circumstances occurring prior to the effective date of such
assignment).  Upon request, Borrower (at its expense) shall execute
and deliver a Note to the assignee Lender.  Any assignment or transfer
by a Lender of rights or obligations under this Agreement that does not comply
with this subsection shall be treated for purposes of this Agreement as a sale
by such Lender of a participation in such rights and obligations in accordance
with subsection
(d) of this Section.

       

      (c) Register.  Administrative
Agent, acting solely for this purpose as an agent of Borrower, shall maintain at
Administrative Agent’s Office a copy of each Assignment and Assumption delivered
to it and a register for the recordation of the names and addresses of Lenders,
and the Commitments of, and principal amounts of the Loans and L/C Exposure
owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The
entries in the Register shall be conclusive, and Borrower, Administrative Agent
and Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary.  The Register shall
be available for inspection by each of Borrower and the L/C Issuers at any
reasonable time and from time to time upon reasonable prior
notice.  In addition, at any time that a request for a consent for a
material or substantive change to the Loan Papers is pending, any Lender may
request and receive from Administrative Agent a copy of the
Register.

       

      (d) Participations.  Any
Lender may at any time, without the consent of, or notice to, Borrower or
Administrative Agent, sell participations to any Person (other than a natural
person or Borrower or any of Borrower’s Affiliates or Subsidiaries) (each, a
“Participant”)
in all or a portion of such Lender's rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans
(including such Lender’s participations in L/C Exposure and Swing Line Loans)
owing to it); provided,
that (i) such
Lender's obligations under this Agreement shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (iii) Borrower, Administrative Agent,
Lenders, and the L/C Issuers shall continue to deal solely and directly with
such Lender in connection with such Lender's rights and obligations under this
Agreement.  Any agreement or instrument pursuant to which a Lender
sells such a participation shall provide that such Lender shall retain the sole
right to enforce this Agreement and to approve any amendment, modification or
waiver of any  provision of this Agreement; provided that such agreement
or instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, waiver or other modification described in
the first proviso to Section
15.9 that affects such Participant.  Subject to subsection
(e) of this Section, Borrower agrees that each Participant shall be
entitled to the benefits of Sections
4.1, 4.4 or 4.5 to the
same extent as if it were a Lender and had acquired its interest by assignment
pursuant to subsection
(b) of this Section.  To the extent permitted by Law, each
Participant also shall be entitled to the benefits of Section 15.13
as though it were a Lender, provided such Participant
agrees to be subject to Section
3.11 as though it were a Lender.

       

      (e) Limitations upon
Participant Rights.  A Participant shall not be entitled to
receive any greater payment under Section 4.1
or 4.4  than
the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with Borrower's prior written consent.  A
Participant that would be a Foreign Lender if it were a Lender shall not be
entitled to the benefits of Section 4.1
unless Borrower is notified of the participation sold to such Participant
and such Participant agrees, for the benefit of Borrower, to comply with Section
4.1(e) as though it were a Lender.

       

      (f) Certain
Pledges.  Any Lender may at any time pledge or assign a
security interest in all or any portion of its rights under this Agreement
(including under its Note, if any) to secure obligations of such Lender,
including any pledge or assignment to secure obligations to a Federal Reserve
Bank; provided, that no such pledge or
assignment shall release such Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party
hereto.

       

      (g)  Electronic
Execution of Assignments.  The words “execution,” “signed,” “signature,” and words of like
import in any Assignment and Assumption shall be deemed to include electronic
signatures or the keeping of records in electronic form, each of which shall be
of the same legal effect, validity or enforceability as a manually executed
signature or the use of a paper-based recordkeeping system, as the case may be,
to the extent and as provided for in any applicable Law, including the Federal
Electronic Signatures in Global and National Commerce Act, the New York State
Electronic Signatures and Records Act, or any other similar state Laws based on
the Uniform Electronic Transactions Act.

       

      (h) Resignation as
L/C Issuer or Swing Line Lender after
Assignment.  Notwithstanding anything to the contrary contained
herein, if at any time any L/C Issuer or any Swing Line Lender assigns all of
its Commitment and Loans pursuant to subsection
(b) above, such L/C Issuer or such Swing Line Lender may, upon 30 days’
notice to Borrower and Lenders, resign as an L/C Issuer or a Swing Line Lender,
or both.  In the event of any such resignation as an L/C Issuer or a
Swing Line Lender, Borrower shall be entitled to appoint from among Lenders a
successor L/C Issuer or Swing Line Lender hereunder; provided, however, that no failure by
Borrower to appoint any such successor shall affect the resignation of such L/C
Issuer or such Swing Line Lender.  If an L/C Issuer resigns, it shall
retain all the rights, powers, privileges, and duties of an L/C Issuer hereunder
with respect to all L/C outstanding as of the effective date of its resignation
as an L/C Issuer and all L/C Exposure with respect thereto (including the right
to require Lenders to make Base Rate Loans or fund risk participations in
unreimbursed amounts pursuant to Section
2.3(c)). If a Swing Line Lender resigns, it shall retain all the rights
of a Swing Line Lender provided for hereunder with respect to Swing Line Loans
made by it and outstanding as of the effective date of such resignation,
including the right to require Lenders to make Base Rate Loans or fund risk
participations in outstanding Swing Line Loans pursuant to Section
2.4(c).  Upon the appointment of a successor L/C Issuer and/or
Swing Line Lender, (a) such successor shall succeed to and become vested with
all of the rights, powers, privileges, and duties of the retiring L/C Issuer or
Swing Line Lender, as the case may be, and (b) the successor L/C Issuer shall
issue letters of credit in substitution for the L/Cs, if any, outstanding at the
time of such succession or make other arrangements satisfactory to the resigning
L/C Issuer to effectively assume the obligations of such resigning L/C Issuer
with respect to such Letters of Credit.

       

      
        	
                15.12  

              	
                Payments Set
      Aside.

              

      

       

      To the
extent that any payment by or on behalf of Borrower or any other obligor on the
Obligation under any Loan Paper is made to Administrative Agent, either L/C
Issuer, or any Lender, or Administrative Agent, either L/C Issuer, or any Lender
exercises its Right of setoff, and such payment or the proceeds of such setoff
or any part thereof is subsequently invalidated, declared to be fraudulent or
preferential, set aside, or required (including pursuant to any settlement
entered into by Administrative Agent, such L/C Issuer, or such Lender in its
discretion) to be repaid to a trustee, receiver, or any other party, in
connection with any proceeding under any Debtor Relief Law or otherwise, then
(a) to the extent of such recovery, the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and effect
as if such payment had not been made or such setoff had not occurred, and (b)
each Lender and each L/C Issuer severally agrees to pay to Administrative Agent
upon demand its applicable share (without duplication) of any amount so
recovered from or repaid by Administrative Agent, plus interest thereon from the
date of such demand to the date such payment is made at a rate per annum equal
to the Federal Funds Rate from time to time in effect.  The
obligations of Lenders and the L/C Issuers under clause (b)
of the preceding sentence shall survive the payment in full of the Obligation
and the termination of this Agreement.

       

      15.13 Right of
Setoff.

       

      If a
Default shall have occurred and be continuing, each Lender, the L/C Issuers, and
each of their respective Affiliates is hereby authorized at any time and from
time to time, to the fullest extent permitted by applicable Law, to set off and
apply any and all deposits (general or special, time or demand, provisional or
final, in whatever currency) at any time held and other obligations (in whatever
currency) at any time owing by such Lender, the applicable L/C Issuer, or any
such Affiliate to or for the credit or the account of Borrower or any other
Company against any and all of the obligations of Borrower or such other Company
now or hereafter existing under this Agreement or any other Loan Paper to such
Lender or the applicable L/C Issuer, irrespective of whether or not such Lender
or the applicable L/C Issuer shall have made any demand under this Agreement or
any other Loan Paper and although such obligations of Borrower or such other
Company may be contingent or unmatured or are owed to a branch or office of such
Lender or the applicable L/C Issuer different from the branch or office holding
such deposit or obligated on such indebtedness.  The rights of each
Lender, each L/C Issuer, and their respective Affiliates under this Section are
in addition to other rights and remedies (including other rights of setoff) that
such Lender, the applicable L/C Issuer, or their respective Affiliates may
have.  Each Lender and each L/C Issuer agrees to notify Borrower and
Administrative Agent promptly after any such setoff and application, provided, that the failure to give
such notice shall not affect the validity of such setoff and
application.

       

      15.14 Replacement of
Lenders.

       

      Under any
circumstances set forth in this Agreement providing that Borrower shall have the
right to replace a Lender as a party to this Agreement, including, without
limitation, if any Lender requests compensation under Section
4.4, or if Borrower is required to pay any additional amount to any
Lender or any Governmental Authority for the account of any Lender pursuant to
Section
3.1, or if any Lender is a Defaulting Lender, then Borrower may, at its
sole expense and effort, upon notice to such Lender and Administrative Agent,
require such Lender to assign and delegate, without recourse (in accordance with
and subject to the restrictions contained in, and consents required by, Section
15.11), all of its interests, rights, and obligations under this
Agreement and the related Loan Papers to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such
assignment), provided, that:

       

      (a)           Borrower
shall have paid to Administrative Agent the assignment fee specified in Section
15.11(b);

       

      (b)           such
Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and participations in L/C Borrowings, accrued interest
thereon, accrued fees, and all other amounts payable to it hereunder and under
the other Loan Papers (including any amounts under Section
4.5) from the assignee (to the extent of such outstanding principal and
accrued interest and fees) or Borrower (in the case of all other
amounts);

       

      (c)           in
the case of any such assignment resulting from a claim for compensation under
Section
4.4 or payments required to be made pursuant to Section
4.1, such assignment will result in a reduction in such compensation or
payments thereafter; and

       

      (d)           such
assignment does not conflict with applicable Laws.

       

      A Lender
shall not be required to make any such assignment or delegation if, prior
thereto, as a result of a waiver by such Lender or otherwise, the circumstances
entitling Borrower to require such assignment and delegation cease to
apply.

       

      
        	
                15.15  

              	
                Confidentiality.

              

      

       

      Each of
Administrative Agent,  Lenders, and the L/C Issuers agrees to maintain
the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its and its Affiliates’ directors, officers,
employees and agents, including accountants, legal counsel and other advisors
(it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep
such Information confidential), (b) to the extent requested by any regulatory
authority purporting to have jurisdiction over it (including any self-regulatory
authority, such as the National Association of Insurance Commissioners), (c) to
the extent required by applicable Laws or regulations or by any subpoena or
similar legal process, (d) to any other party hereto, (e) in connection with the
exercise of any remedies hereunder or under any other Loan Paper or any action
or proceeding relating to this Agreement or any other Loan Paper or the
enforcement of rights hereunder or thereunder, (f) subject to an agreement
containing provisions substantially the same as those of this section, to (i)
any assignee of or Participant in, or any prospective assignee of or Participant
in, any of its rights or obligations under this Agreement or (ii) any actual or
prospective counterparty (or its advisors) to any swap or derivative transaction
relating to Borrower and its obligations, (g) with the consent of Borrower, (h)
to the extent such Information (x) becomes publicly available other than as a
result of a breach of this section or (y) becomes available to Administrative
Agent, any Lender, either L/C Issuer, or any of their respective Affiliates on a
nonconfidential basis from a source other than Borrower, or (i) to any direct or
indirect contractual counterparty in Financial Hedges or such contractual
counterparty’s professional advisor (so long as such contractual counterparty or
professional advisor to such contractual counterparty agrees to be bound by the
provisions of this Section
15.15).  For purposes of this section, “Information”
means all information received from any Restricted Company relating to any
Restricted Company or any of their respective businesses, other than any such
information that is available to Administrative Agent or any Lender on a
nonconfidential basis prior to disclosure by any Restricted Company, provided that, in the case of
information received from a Restricted Company after the date hereof, such
information is clearly identified at the time of delivery as
confidential.  Any Person required to maintain the confidentiality of
Information as provided in this section shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of
care to maintain the confidentiality of such Information as such Person would
accord to its own confidential information.  Each of Administrative
Agent, Lenders, and the L/C Issuers acknowledges that (a) the Information may
include material non-public information concerning any Company, as the case may
be, (b) it has developed compliance procedures regarding the use of material
non-public information, and (c) it will handle such material non-public
information in accordance with applicable Law, including Federal and state
securities Laws.

       

      
        	
                15.16  

              	
                USA PATRIOT Act
      Notice.

              

      

       

      Each
Lender that is subject to the Act (as hereinafter defined) and Administrative
Agent (for itself and not on behalf of any Lender) hereby notifies Borrower that
pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56
(signed into law October 26, 2001)) (the “Act”), it
is required to obtain, verify, and record information that identifies Borrower,
which information includes the name and address of Borrower and other
information that will allow such Lender or Administrative Agent, as applicable,
to identify Borrower in accordance with the Act.

       

      
        	
                15.17  

              	
                Survival of
      Representations and
Warranties.

              

      

       

      All
representations and warranties made hereunder and in any other Loan Paper or
other document delivered pursuant hereto or thereto or in connection herewith or
therewith shall survive the execution and delivery hereof and
thereof.  Such representations and warranties have been or will be
relied upon by Administrative Agent and each Lender, regardless of any
investigation made by Administrative Agent or any Lender or on their behalf and
notwithstanding that Administrative Agent or any Lender may have had notice or
knowledge of any Default or Potential Default at the time of any Loan or L/C
Credit Extension, and shall continue in full force and effect as long as any
Loan or any other Obligation hereunder shall remain unpaid or unsatisfied or any
L/C shall remain outstanding.

       

      
        	
                15.18  

              	
                ENTIRE
      AGREEMENT.

              

      

       

      THIS AGREEMENT AND THE OTHER LOAN
PAPERS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS
AMONG THE PARTIES.  This Agreement supersedes
all prior written agreements and understandings relating to the subject matter
hereof and may be supplemented only by documents delivered in accordance with
the terms hereof.

       

      
        	
                15.19  

              	
                Designation as Senior
      Debt.

              

      

       

      The
Obligation constitutes “Senior
Debt” for purposes of and as defined in the Senior Subordinated
Indenture.

       

      
        	
                15.20  

              	
                Restatement of
      Existing Agreement.

              

      

       

      The
parties hereto agree that, on the Closing Date, after all conditions precedent
set forth in Section 7.1
have been satisfied or waived: (a) the Obligation (as defined in this Agreement)
represents, among other things, the restatement, renewal, amendment, extension,
and modification of the “Obligation” (as defined in
the Existing Agreement); (b) this Agreement is intended to, and does hereby,
restate, renew, extend, amend, modify, supersede, and replace the Existing
Agreement in its entirety; (c) the Notes, if any, executed pursuant to this
Agreement amend, renew, extend, modify, replace, restate, substitute for, and
supersede in their entirety (but do not extinguish the Debt arising under) the
promissory notes issued pursuant to the Existing Agreement, which existing
promissory notes shall be returned to Administrative Agent promptly after the
Closing Date, marked “canceled
and replaced”; (d) each Confirmation of Pledge Agreement executed
pursuant to this Agreement ratifies and confirms (but does not extinguish or
impair the collateral security created or evidenced by) the “Pledge Agreement” executed
and delivered by the “Debtor” named therein
pursuant to the Existing Agreement; (e) the Confirmation of Guaranty executed
pursuant to this Agreement ratifies and confirms (but does not extinguish or
impair the “Guaranteed
Debt” guaranteed by) the “Guaranty” executed and
delivered pursuant to the Existing Agreement; and (f) the entering into and
performance of their respective obligations under the Loan Papers and the
transactions evidenced hereby do not constitute a novation nor shall they be
deemed to have terminated, extinguished, or discharged the “Debt” under the Existing
Agreement, the Security Documents, the Guaranty, or the other Loan Papers (or
the collateral security therefore), all of which Debt and Collateral shall
continue under and be governed by this Agreement and the other Loan Papers,
except as expressly provided otherwise herein.

       

      

       

      Remainder
of Page Intentionally Blank.

       

      Signature
Pages to Follow.

       

      

      
        
          
             

          

          
             

            
            

          

          
             

          

        

      

       

      

        
          	 
      	
                  THE
      VAIL CORPORATION (D/B/A “VAIL

                
	 
      	
                  ASSOCIATES, INC.”), as
      Borrower

                
	
                  By:

                	
                   /s/
      Jeffrey W. Jones

                
	 
      	
                  Jeffrey
      W. Jones

                
	 
      	
                  Senior
      Executive Vice President and

                
	 
      	
                  Chief
      Financial Officer

                

        

        

         

        
          	 
      	
                  BANK OF AMERICA, N.A.,
      as Administrative Agent, 

                
	 
      	
                  and
      L/C Issuer, a Swing Line Lender, and a Lender

                
	
                  By:

                	
                   /s/
      David McCauley

                
	 
      	
                  David
      McCauley

                
	 
      	
                  Vice
      President

                

        

        

         

        
          	 
      	
                  U.S. BANK NATIONAL
      ASSOCIATION, 

                
	 
      	
                  as
      Co-Syndication Agent, a Swing Line Lender, and a

                
	 
      	
                  Lender

                
	
                  By:

                	
                   /s/
      Rob L. Stuart

                
	 
      	
                  Rob
      L. Stuart

                
	 
      	
                  Assistant
      Vice President

                

        

        

         

        
          	 
      	
                  WELLS FARGO BANK,
      NATIONAL 

                
	 
      	
                  ASSOCIATION, as
      Co-Syndication Agent, an L/C

                
	 
      	
                  Issuer,
      and a Lender

                
	
                  By:

                	
                   /s/
      Debbie A. Wright

                
	 
      	
                  Debbie
      A. Wright

                
	 
      	
                  Vice
      President

                

        

        

         

        
          	 
      	
                  DEUTSCHE BANK TRUST
      COMPANY 

                
	 
      	
                  AMERICAS, as
      Co-Documentation Agent and a Lender

                
	
                  By:

                	
                   /s/
      Steven P. Lapham

                
	 
      	
                  Steven
      P. Lapham

                
	 
      	
                  Managing
      Director

                
	 	 
	
                  By:

                	
                   /s/
      Brenda Casey

                
	 
      	
                  Brenda
      Casey

                
	 
      	
                  Vice
      President

                

        

        

         

        
          	 
      	
                  LASALLE BANK NATIONAL
      ASSOCIATION, 

                
	 
      	
                  as
      Co-Documentation Agent and a Lender

                
	
                  By:

                	
                   /s/
      Darren L. Lemkau

                
	 
      	
                  Darren
      L. Lemkau

                
	 
      	
                  Senior
      Vice President

                

        

        

         

        
          	 
      	
                  JPMORGAN CHASE BANK, NA,
      

                
	 
      	
                  as
      a Lender

                
	
                  By:

                	
                   /s/
      Kent A. Kaiser

                
	 
      	
                  Kent
      A. Kaiser

                
	 
      	
                  Senior
      Vice President

                

        

        

         

        
          	 
      	
                  CALYON NEW YORK BRANCH,
      

                
	 
      	
                  as
      a Lender

                
	
                  By:

                	
                   /s/
      Joseph A. Asciolla

                
	 
      	
                  Joseph
      A. Asciolla

                
	 
      	
                  Managing
      Director

                

        

        

         

        
          	 
      	
                  CALYON NEW YORK BRANCH,
      

                
	 
      	
                  as
      a Lender

                
	
                  By:

                	
                   /s/
      Bruno Defloor

                
	 
      	
                  Bruno
      Defloor

                
	 
      	
                  Director

                

        

        

         

        
          	 
      	
                  COMPASS BANK,
      

                
	 
      	
                  as
      a Lender

                
	
                  By:

                	
                   /s/
      Eric R. Long

                
	 
      	
                  Eric
      R. Long

                
	 
      	
                  Senior
      Vice President

                

        

        

         

        
          	 
      	
                  COMERICA
      WEST INCORPORATED

                
	
                  By:

                	
                   /s/
      Kevin T. Urban

                
	 
      	
                  Kevin
      T. Urban

                
	 
      	
                  Corporate
      Banking Officer

                

        

        

         

         

        
          
            
            

          

          
            
            

            
            

          

          
            
            

          

        

        GUARANTORS’ CONSENT AND
AGREEMENT

         

        As an
inducement to Administrative Agent and Lenders to execute, and in consideration
of Administrative Agent’s and Lenders’ execution of the foregoing Limited
Waiver, Release, and Third Amendment to Fourth Amended and Restated Credit
Agreement, the undersigned hereby consent thereto and agree that the same shall
in no way release, diminish, impair, reduce or otherwise adversely affect the
respective obligations and liabilities of each of the undersigned under each
Guaranty described in the Credit Agreement, or any agreements, documents or
instruments executed by any of the undersigned to create liens, security
interests or charges to secure any of the indebtedness under the Loan Papers,
all of which obligations and liabilities are, and shall continue to be, in full
force and effect.  This consent and agreement shall be binding upon
the undersigned, and the respective successors and assigns of each, and shall
inure to the benefit of Administrative Agent and Lenders, and the respective
successors and assigns of each.

         

        

        Vail
Resorts, Inc.

        Vail
Holdings, Inc.

        Beaver
Creek Associates, Inc.

        Beaver
Creek Consultants, Inc.

        Beaver
Creek Food Services, Inc.

        Breckenridge
Resort Properties, Inc.

        Complete
Telecommunications, Inc.

        Gillett
Broadcasting, Inc.

        Grand
Canyon Lodge Company North Rim

        Grand
Teton Lodge Company

        Heavenly
Valley, Limited Partnership

        Jackson
Hole Golf and Tennis Club, Inc.

        JHL&S
LLC

        Keystone
Conference Services, Inc.

        Keystone
Development Sales, Inc.

        Keystone
Food and Beverage Company

        Keystone
Resort Property Management

        Company

        Larkspur
Restaurant & Bar, LLC

        Lodge
Properties, Inc.

        Lodge
Realty, Inc.

        Mountain
Thunder, Inc.

        Property
Management Acquisition Corp., Inc.

        Rockresorts
International, LLC

        Rockresorts
LLC

        Rockresorts
Cheeca, LLC

        Rockresorts
Equinox, Inc.

        Rockresorts
LaPosada, LLC

        Rockresorts
Wyoming, LLC

        Rockresorts
Casa Madrona, LLC

        Rockresorts
Rosario, LLC

        Teton
Hospitality Services, Inc.

        The
Village at Breckenridge Acquisition Corp., Inc.

        Timber
Trail, Inc.

        VA Rancho
Mirage I, Inc.

        VA Rancho
Mirage II, Inc.

        VA Rancho
Mirage Resort, L.P.

        Vail/Arrowhead,
Inc.

        Vail
Associates Holdings, Ltd.

        Vail
Associates Investments, Inc.

        Vail
Associates Real Estate, Inc.

        Vail/Beaver
Creek Resort Properties, Inc.

        Vail Food
Services, Inc.

        Vail
Resorts Development Company

        Vail RR,
Inc.

        Vail
Summit Resorts, Inc.

        Vail
Trademarks, Inc.

        VAMHC,
Inc.

        VR
Heavenly I, Inc.

        VR
Heavenly II, Inc.

        VR
Holdings, Inc.

        

        

        
          	
                   
      

                	
                  By:
      /s/ Jeffrey W. Jones

                

        

        
          	
                   
      

                	
                  Name:
      Jeffrey W. Jones

                

        

        
          	
                   
      

                	
                  Title:
      Executive Vice President & Chief Financial
  Officer

                

        

        

        

        

        
          
             

          

          
             

            
            

          

          
             

          

        

      
 

      SCHEDULE
1

      

      Parties, Addresses,
Committed Sums and Wiring Information

      

      

      Borrower
and all other Companies

      

      The Vail
Corporation

      Post
Office Box 7

      Vail,
Colorado 81658

      137
Benchmark Road

      Avon,
Colorado 81620

      

      Contact:

      Jeffrey P. Jones

      Senior
Vice President and Chief Financial Officer

      Phone:  970/845-2552

      FAX:  970/845-2470

      

      Wire
Instructions:

      Location
of account: U.S. Bank National Association

      ABA
No.:  102000021

      City/State:  Denver,
Colorado

      Account
No.:  122705422295

      

      Copy to:

      Martha
Dugan Rehm, General Counsel

      Vail
Resorts, Inc.

      Post
Office Box 7

      Vail,
Colorado 81658

      137
Benchmark Road

      Avon,
Colorado 81620

      Phone:  970/845-2927

      FAX:  970/845-2928

      

      

      Administrative Agent, L/C Issuer, and Swing Line
Lender

      

      Bank of
America, N.A.

      Mail
Code: TX1-492-64-01

      901 Main
Street, 64th Floor

      Dallas,
Texas 75202

      

      

      Credit
Contact:

      David L.
McCauley

      Mail
Code: TX1-492-64-01

      901 Main
Street, 64th Floor

      Dallas,
Texas 75202

      Phone:  214/209-0940

      FAX:  214/209-0905

      

      
        	
                 
      

              	
                Agency
      Contact:

              

      

      Donna F.
Kimbrough

      Mail
Code: TX1-492-14-11

      901 Main
Street, 14th Floor

      Dallas,
Texas 75202

      Phone:  214/209-1569

      
        	
                 
      

              	
                FAX:  214/290-9436

              

      

      

      
        	
                 
      

              	
                Swing Line
      Contact:

              

      

      Arlene
Minor

      Mail
Code: TX1-492-14-12

      901 Main
Street, 14th Floor

      Dallas,
Texas 75202

      Phone:  214/209-9177

      
        	
                 
      

              	
                FAX:  214/290-9412

              

      

      

      
        	
                 
      

              	
                Operations
      Contact:

              

      

      Arlene
Minor

      Mail
Code: TX1-492-14-12

      901 Main
Street, 14th Floor

      Dallas,
Texas 75202

      Phone:  214/209-9177

      FAX:  214/290-9412

      

      
        	
                 
      

              	
                L/C
      Contact:

              

      

      
        	
                 
      

              	
                Stella
      Rosales

              

      

      Mail
Code: CA9-703-19-23

      333 S.
Beaudry Avenue

      Los
Angeles, California 90017-1466

      Phone:
213/345-0141

      Fax:
213/345-6684

      

      Wire
Instructions:

      Bank of
America, N.A.

      ABA
No.:  111000012

      City/State:  Dallas,
Texas

      Account
No.:  1292000883

      Attn:  Credit
Services

      Ref:  The
Vail Corp

      

      Copy to:

      Haynes
and Boone, LLP.

      901 Main
Street, Suite 3100

      Dallas,
Texas 75202-3789

      Attn:  Karen
S. Nelson

      Phone:  214/651-5648

      FAX::  214/200-0673

      

 

      Swing
Line Lender

      

      U.S. Bank
National Association

       

      918 17th
Street, 4th Floor

       

       

      Denver,
Co 80202

       

       

      

       

      Credit
Contact:

       

      Robert
Stuart

       

       

      918 17th
Street, 4th Floor

       

       

      Denver,
Colorado 80202

       

       

      Phone:
303/585-4188

       

       

      Fax:
303/585-4135

       

      

      
        	
                 
      

              	
                Swing Line
      Contact:

              

      

      
        	
                 
      

              	
                Hanny
      Nawawi

              

      

      555 SW
Oak

      Portland,
Oregon 97204

      Phone:  503/275-7894

      
        	
                 
      

              	
                FAX:  503/275-8181

              

      

      

      Wire
Instructions:

      U.S. Bank
National Association

      ABA
No.:  123000220

      BNF:  Commercial
Loan Services - West

      Account
No.:  00340012160600

      Attn:  Hanny
Nawawi

      Ref:  The
Vail Corporation

      
 

      

      L/C
Issuer

      

      Wells
Fargo Bank, National Association

      

      Credit
Contact:

       

      Debbie
Wright/Susan Petri

       

       

      1740
Broadway

       

       

      Denver,
Colorado 80274

       

       

      Phone:
303/863-4829

       

      Fax:
303/863-6670

      

      
        	
                 
      

              	
                L/C
      Contact:

              

      

       

      Debbie
Wright/Susan Petri

       

       

      1740
Broadway

       

       

      Denver,
Colorado 80274

       

       

      Phone:
303/863-4829

       

      
        	
                 
      

              	
                Fax:
      303/863-6670

              

      

      

      Wire
Instructions:

      Wells
Fargo Bank, National Association

      ABA
No.:  121000248

      City/State:  Denver,
Colorado

      Account
No.:  029650720

      Attn:  WLS
Denver

      Ref:  Vail
Corporation

      

      Lenders
and Commitments

      

      

      
        	
                LENDER

              	
                COMMITMENT

              	
                 

                COMMITMENT

                PERCENTAGE

              
	
                 

                Bank
      of America, N.A.

                 

              	
                 

                $65,000,000

              	
                 

                16.250000000%

              
	
                 

                U.S.
      Bank

                National
      Association

                 

              	
                 

                $62,500,000

              	
                 

                15.625000000%

              
	
                 

                Wells
      Fargo Bank,

                National
      Association

                 

              	
                 

                $62,500,000

              	
                 

                15.625000000%

              
	
                 

                Deutsche
      Bank Trust

                Company
      Americas

                 

              	
                 

                $62,500,000

              	
                 

                15.625000000%

              
	
                 

                LaSalle
      Bank

                National
      Association

                 

              	
                 

                $62,500,000

              	
                 

                15.625000000%

              
	
                 

                JPMorgan
      Chase Bank, NA

                 

              	
                 

                $25,000,000

              	
                 

                6.250000000%

              
	
                 

                Calyon
      New York Branch

                 

              	
                 

                $25,000,000

              	
                 

                6.250000000%

              
	
                 

                Compass
      Bank

                 

              	
                 

                $20,000,000

              	
                 

                5.000000000%

              
	
                 

                Comerica
      West Incorporated

                 

              	
                 

                $15,000,000

              	
                 

                3.750000000%

              
	
                 

                Totals

              	
                 

                $400,000,000

              	
                 

                100.0000000%

              

      

      

      SCHEDULE 2.3

       

      Existing Letters of Credit
and Scheduled Debt

       

      Part
A – Existing Letters of Credit

      

      
        	
                Amount

              	
                Maturity Date

              	
                Beneficiary

              
	
                $755,311

              	
                12/15/05

              	
                Board
      of County Commissioners, County of Eagle, State of
  Colorado

              
	
                115,595

              	
                11/30/05

              	
                Board
      of County Commissioners, County of Eagle, State of
  Colorado

              
	
                1,026,206

              	
                05/31/05

              	
                Board
      of County Commissioners, County of Eagle, State of
  Colorado

              
	
                790,490

              	
                07/31/05

              	
                Board
      of County Commissioners, County of Eagle, State of
  Colorado

              
	
                539,170

              	
                10/31/05

              	
                Teton
      County Board of Commissioners

              
	
                407,355

              	
                10/31/05

              	
                Teton
      County Board of Commissioners

              
	
                843,056

              	
                10/31/05

              	
                Teton
      County Board of Commissioners

              
	
                749,283

              	
                07/22/05

              	
                Board
      of County Commissioners, County of Eagle, State of
  Colorado

              
	
                56,495

              	
                10/31/05

              	
                Teton
      County Board of Commissioners

              
	
                69,000

              	
                03/24/06

              	
                Board
      of County Commissioners of Summit County

              
	
                51,750

              	
                01/31/06

              	
                Board
      of County Commissioners of Summit County

              
	
                84,525

              	
                01/31/06

              	
                Board
      of County Commissioners of Summit County

              
	
                14,490

              	
                01/31/06

              	
                Board
      of County Commissioners of Summit County

              
	
                40,250

              	
                01/31/06

              	
                Board
      of County Commissioners of Summit County

              
	
                71,280

              	
                01/30/07

              	
                Board
      of County Commissioners, County of Eagle, State of
  Colorado

              
	
                62,105

              	
                12/15/05

              	
                Board
      of County Commissioners, County of Eagle, State of
  Colorado

              
	
                1,091,152

              	
                07/31/06

              	
                Board
      of County Commissioners, County of Eagle, State of
  Colorado

              
	
                453,526

              	
                07/31/06

              	
                Board
      of County Commissioners, County of Eagle, State of
  Colorado

              
	
                22,573

              	
                10/31/05

              	
                Board
      of County Commissioners, County of Eagle, State of
  Colorado

              
	
                12,500

              	
                07/01/05

              	
                The
      Town of Vail, Colorado

              
	
                8,597,808

              	
                08/24/05

              	
                U.S.
      Bank National Association as Trustee

              
	
                9,232,709

              	
                10/31/05

              	
                U.S.
      Bank Trust, Corp Trust Svcs

              
	
                8,116,667

              	
                10/31/05

              	
                U.S.
      Bank National Association as Trustee Under the Trust Indenture Dated as of
      May 1, 1999 with Eagle County, Colorado

              
	
                15,198,459

              	
                10/31/05

              	
                U.S.
      Bank National Association as Trustee Under the Trust Indenture Dated as of
      May 1, 1999 with Breckenridge Terrace, LLC

              
	
                5,108,334

              	
                04/29/05

              	
                U.S.
      Bank, N.A. Corporate Trust Services

              
	
                5,783,125

              	
                10/31/05

              	
                U.S.
      Bank National Association as Trustee Under the Trust Indenture Dated as of
      June 1, 2000 w/ Tenderfoot Seasonal Housing, LLC

              
	
                70,000

              	
                01/03/06

              	
                Airlines
      Reporting Corporation

              
	
                70,000

              	
                12/15/05

              	
                Airlines
      Reporting Corporation

              
	
                25,000

              	
                08/30/05

              	
                Airlines
      Reporting Corporation

              
	
                25,000

              	
                12/08/05

              	
                United
      Airlines, Inc.

              
	
                4,200,000

              	
                10/31/05

              	
                Key
      Bank National Association**

              
	
                2,635,000

              	
                10/31/05

              	
                American
      Home Assurance Co

              
	
                2,099,136

              	
                09/17/05

              	
                Self
      Insurance Plans State of California

              
	
                281,819

              	
                05/01/05

              	
                Sierra
      Pacific Power Company

              
	
                45,000

              	
                10/01/05

              	
                USDA
      Forest Service

              
	
                106,462

              	
                07/31/05

              	
                Liberty
      Mutual Insurance Company

              
	
                6,012,509

              	
                6/15/05

              	
                U.S.
      Bank National Association as Trustee Under the Trust Indenture Dated as of
      June 1, 2000 w/ Tenderfoot Seasonal Housing, LLC

              
	
                2,462,217

              	
                5/26/09

              	
                U.S.
      Bank National Association as Trustee Under the Trust Indenture Dated as of
      May 1, 1999 with Eagle County, Colorado

              
	
                1,531,250

              	
                6/15/05

              	
                U.S.
      Bank Trust, Corp Trust Svcs

              
	
                      $
      78,856,607

              	 
      	 
      

      

      

       

      **
L/C support for SSI Credit Agreement

      

      Part
B – Scheduled Debt

      

      

      1.           The
Vail Bonds and the Summit Bonds.

      

      
        	
                2.

              	
                Obligations
      of the Companies with respect to letters of credit issued by U.S. Bank
      National Association for the benefit of Eagle County, Colorado, in an
      aggregate amount of up to $3,750,000 at any point in
  time.

              

      

      

      
        	
                3.

              	
                $3,043,626
      remaining outstanding as of December 31, 2004 under the Eagle Park
      Reservoir Company promissory note.

              

      

      

      
        	
                4.

              	
                $437,500
      principal amount outstanding as of December 31, 2004 under the Mission
      Hills Country Club promissory note.

              

      

      

      
        	
                5.

              	
                $419,624.53
      remaining outstanding as of December 31, 2004 under the capital lease for
      the telephone system at The Lodge at Rancho
  Mirage.

              

      

      

      
        	
                6.

              	
                SSI
      Revolving Credit, Term Loan and Security Agreement dated May 27, 2003 in
      the amount of $32,000,000, of which $10,507,892 is outstanding as of
      December 31, 2004.  Borrower has 61.68% interest in
      SSI.

              

      

      

      
        	
                7.

              	
                $972,678.79
      remaining outstanding as of December 31, 2004 under the capital leases for
      SSV Snowell Tuning Machines.  Borrower has 61.68% interest in
      SSI.

              

      

      

      
        	
                8.

              	
                $11,487.14
      remaining outstanding as of December 31, 2004  under the capital
      lease for Pitney Bowes mail machine at The Lodge at Rancho
      Mirage.

              

      

      

      
        	
                9.

              	
                $11,218.72
      remaining outstanding as of December 31, 2004  under the capital
      lease for Pitney Bowes label machine at The Lodge at Rancho
      Mirage.

              

      

      

      
        	
                10.

              	
                $36,404.71
      remaining outstanding as of December 31, 2004  under the capital
      lease for De Lage Landen copier machine at The Lodge at Rancho
      Mirage.

              

      

      

      
        	
                11.

              	
                $49,913.42
      remaining outstanding as of December 31, 2004  under the capital
      lease for De Lage Landen copier machine at The Lodge at Rancho
      Mirage.

              

      

      

      
        	
                12.

              	
                $35.900.80
      remaining outstanding as of December 31, 2004  under the capital
      lease for GE Capital copier machine at The Lodge at Rancho
      Mirage.

              

      

      

      
        	
                13.

              	
                $50,895.72
      remaining outstanding as of December
      31, 2004  under the capital lease for GE Capital copier machine
      at The Lodge at Rancho Mirage.

              

      

      

      SCHEDULE
7.1

      

      Post-Closing Items and
Conditions

      

      

      
        	
                ITEM

              	 
      	
                DATE
      FOR COMPLIANCE

              
	
                1.Borrower
      shall seek written consent from the United States Department of the
      Interior, National Park Service (“Park
      Service”) to Borrower’s pledge to Administrative Agent (for the
      benefit of the Lenders) of the capital stock of Grand Teton Lodge Company,
      a Wyoming corporation (“Grand
      Teton”), issued to Borrower (the “Park
      Service Consent”)

              	 
      	
                Not
      later than the date upon which that certain Grand Teton Lodge Company 1973
      Concession Agreement dated as of July 31, 1973, between Grand Teton and
      the Park Service, is renewed (which is currently anticipated to be not
      later than December 31, 2005)

                 

              
	
                2.Borrower
      shall execute and deliver to Administrative Agent a Pledge Agreement
      pledging the capital stock issued by Grand Teton to Borrower, accompanied
      by a certificate (or other instrument evidencing the capital stock) and a
      stock power or similar instrument of transfer or assignment duly executed
      in blank, each in form and substance satisfactory to Administrative
      Agent

              	 
      	
                On
      or before the tenth (10th) day after the date it receives the Park Service
      Consent

              
	
                3.Borrower
      shall cause to be delivered a financing statement listing BC Housing, LLC,
      as debtor, and the applicable L/C Issuer or Administrative Agent, as
      assignee, as secured party, to evidence the pledge and security interests
      created under the Bond Documents for Existing Housing Bonds issued by
      debtor, which financing statement shall be in form and substance
      satisfactory to Administrative Agent

              	 
      	
                60
      days after Closing Date

              
	
                4.Borrower
      shall cause to be delivered a financing statement listing The Tarnes at
      BC, LLC, as debtor, and the applicable L/C Issuer or Administrative Agent,
      as assignee, as secured party, to evidence the pledge and security
      interests created under the Bond Documents for Existing Housing Bonds
      issued by debtor, which financing statement shall be in form and substance
      satisfactory to Administrative Agent

              	 
      	
                60
      days after Closing Date

              
	
                5.Borrower
      shall cause to be delivered a financing statement listing Tenderfoot
      Seasonal Housing, LLC, as debtor, and the applicable L/C Issuer or
      Administrative Agent, as assignee, as secured party, to evidence the
      pledge and security interests created under the Bond Documents for
      Existing Housing Bonds issued by debtor, which financing statement shall
      be in form and substance satisfactory to Administrative
    Agent

              	 
      	
                60
      days after Closing Date

              

      

      

      SCHEDULE
8.2

      

      Corporate Organization and
Structure

      

      (Attached)

      

      

      
        
          
             

          

          
             

            
            

          

          
             

            
              Schedule
8.2

              To
Bank of America Forth Amended and

              Restated
Credit Agreement

              

            

          

        

      

      

      

      
        	
                Corporation

              	
                State
      of Incorp.

              	
                Affiliated
      Parent / LLC Member

                (%
      of Ownership)

              
	
                Beaver
      Creek Associates, Inc.

              	
                CO

              	
                The
      Vail Corporation (100%)

              
	
                Beaver
      Creek Consultants, Inc.

              	
                CO

              	
                The
      Vail Corporation (100%)

              
	
                Beaver
      Creek Food Services, Inc.

              	
                CO

              	
                Beaver
      Creek Associates, Inc. (100%)

              
	
                Boulder/Beaver,
      LLC

              	
                CO

              	
                Beaver
      Creek Food Services, Inc. (86%)

              
	
                Breckenridge
      Resort Properties, Inc.

              	
                CO

              	
                VRDC
      (100%)

              
	
                Colter
      Bay Corporation

              	
                WY

              	
                Grand
      Teton Lodge Company (100%)

              
	
                Complete
      Telecommunications, Inc.

              	
                CO

              	
                The
      Vail Corporation (100%)

              
	
                Eagle
      Park Reservoir Company

              	
                CO
      (non-profit)

              	
                The
      Vail Corporation (55%)

              
	
                Forest
      Ridge Holdings, Inc.

              	
                CO

              	
                The
      Vail Corporation (100%)

              
	
                Gillett
      Broadcasting, Inc.

              	
                DE

              	
                Vail
      Resorts, Inc. (100%)

              
	
                Grand
      Teton Lodge Company

              	
                WY

              	
                The
      Vail Corporation (100%)

              
	
                Gros
      Ventre Utility Company

              	
                WY

              	
                Grand
      Teton Lodge Company (100%)

              
	
                Heavenly
      Valley, Limited Partnership

              	
                NV

              	
                VR
      Heavenly I, Inc. & VR Heavenly II, Inc. (together,
    100%)

              
	
                Jackson
      Hole Golf & Tennis Club

              	
                WY

              	
                Grand
      Teton Lodge Company (100%)

              
	
                Jenny
      Lake Lodge, Inc.

              	
                WY

              	
                Grand
      Teton Lodge Company (100%)

              
	
                JHL&S
      LLC

              	
                WY

              	
                Teton
      Hospitality Services, Inc. (51%)

              
	
                Keystone
      Conference Services, Inc.

              	
                CO

              	
                Vail
      Summit Resorts, Inc. (100%)

              
	
                Keystone
      Development Sales, Inc.

              	
                CO

              	
                Vail
      Summit Resorts, Inc. (100%)

              
	
                Keystone
      Food and Beverage Company

              	
                CO

              	
                Vail
      Summit Resorts, Inc. (100%)

              
	
                Keystone
      Resort Property Management Company

              	
                CO

              	
                Vail
      Summit Resorts, Inc. (100%)

              
	
                Larkspur
      Restaurant & Bar, LLC

              	
                CO

              	
                The
      Vail Corporation (83% + or -)

              
	
                Lodge
      Properties, Inc.

              	
                CO

              	
                The
      Vail Corporation (100%)

              
	
                Lodge
      Realty, Inc.

              	
                CO

              	
                Lodge
      Properties, Inc. (100%)

              
	
                Mountain
      Thunder, Inc.

              	
                CO

              	
                VR
      Holdings, Inc. (100%)

              
	
                Property
      Management Acquisition Corp., Inc.

              	
                TN

              	
                Vail
      Summit Resorts, Inc. (100%)

              
	
                RTP,
      LLC

              	
                CO

              	
                The
      Vail Corporation (54.5%)

              
	
                RT
      Partners, Inc.

              	
                DE

              	
                RTP,
      LLC (51%)

              
	
                Rockresorts
      Casa Madrona, LLC

              	
                DE

              	
                Rockresorts
      International LLC (100%)

              
	
                Rockresorts
      Cheeca, LLC

              	
                DE

              	
                Rockresorts
      International LLC (100%)

              
	
                Rockresorts
      Equinox, Inc.

              	
                VT

              	
                Rockresorts
      International LLC (100%)

              
	
                Rockresorts
      International, LLC

              	
                DE

              	
                Vail
      RR, Inc. (100%)

              
	
                Rockresorts
      LaPosada, LLC

              	
                DE

              	
                Rockresorts
      International LLC (100%)

              
	
                Rockresorts
      LLC

              	
                DE

              	
                Rockresorts
      International LLC (100%)

              
	
                Rockresorts
      Rosario, LLC

              	
                DE

              	
                Rockresorts
      International LLC (100%)

              
	
                Rockresorts
      Wyoming, LLC

              	
                WY

              	
                Rockresorts
      International, LLC (100%)

              
	
                SSI
      Venture LLC

              	
                CO

              	
                The
      Vail Corporation (52%)

              
	
                Teton
      Hospitality Services, Inc.

              	
                WY

              	
                The
      Vail Corporation (100%)

              
	
                Timber
      Trail, Inc.

              	
                CO

              	
                VR
      Holdings, Inc. (100%)

              
	
                Vail/Arrowhead,
      Inc.

              	
                CO

              	
                The
      Vail Corporation (100%)

              
	
                Vail
      Associates Holdings, Ltd.

              	
                CO

              	
                Vail
      Resorts Development Company (100%)

              
	
                Vail
      Associates Investments, Inc.

              	
                CO

              	
                The
      Vail Corporation (100%)

              
	
                Vail
      Associates Real Estate, Inc.

              	
                CO

              	
                Vail
      Resorts Development Company (100%)

              
	
                Vail/Beaver
      Creek Resort Properties, Inc.

              	
                CO

              	
                The
      Vail Corporation (100%)

              
	
                Vail
      Corporation, The

              	
                CO

              	
                Vail
      Holdings, Inc. (100%)

              
	
                Vail
      Food Services, Inc.

              	
                CO

              	
                The
      Vail Corporation (100%)

              
	
                Vail
      Holdings, Inc.

              	
                CO

              	
                Vail
      Resorts, Inc. (100%)

              
	
                Vail
      Resorts Development Company

              	
                CO

              	
                The
      Vail Corporation (100%)

              
	
                Vail
      Resorts, Inc.

              	
                DE

              	
                Publicly
      traded on the NYSE

              
	
                Vail
      RR, Inc.

              	
                CO

              	
                The
      Vail Corporation (100%)

              
	
                Vail
      Summit Resorts, Inc.

              	
                CO

              	
                The
      Vail Corporation (100%)

              
	
                Vail
      Trademarks, Inc.

              	
                CO

              	
                The
      Vail Corporation (100%)

              
	
                VAMHC,
      Inc.

              	
                CO

              	
                The
      Vail Corporation (100%)

              
	
                VA
      Rancho Mirage I, Inc.

              	
                CO

              	
                The
      Vail Corporation (100%)

              
	
                VA
      Rancho Mirage II, Inc.

              	
                CO

              	
                The
      Vail Corporation (100%)

              
	
                VA
      Rancho Mirage Resort, L.P.

              	
                DE

              	
                VA
      Rancho Mirage I, Inc. – GP

                VA
      Rancho Mirage II, Inc. – LP

                (100%)

              
	
                The
      Village at Breckenridge Acquisition Corp., Inc.

              	
                TN

              	
                Vail
      Summit Resorts, Inc. (100%)

              
	
                VR
      Heavenly I, Inc.

              	
                CO

              	
                The
      Vail Corporation (100%)

              
	
                VR
      Heavenly II, Inc.

              	
                CO

              	
                The
      Vail Corporation (100%)

              
	
                VR
      Holdings, Inc.

              	
                CO

              	
                Vail/Arrowhead,
      Inc. (100%)

              

      

      

      

      SCHEDULE
8.7

      

      Material Litigation
Summary

      

      

      None,
except as referenced in VRI’s Annual Report on Form 10-K for the year ended July
31, 2004, at Item 3, and Quarterly Report on Form 10-Q for the quarter ended
October 31, 2004.

      

      

      

      SCHEDULE
8.9

      

      Material Environmental
Matters

      

      

      None,
except as referenced in VRI’s Annual Report on Form 10-K for the year ended July
31, 2004, at Item 3, and Quarterly Report on Form 10-Q for the quarter ended
October 31, 2004.

      

      

      SCHEDULE
8.11

      

      Critical
Assets

      

      

      (a)
Existing Critical Assets

      

      Intellectual
Property

      

      
        	
                1.

              	
                The
      following Intellectual Property of the Companies: the federally
      trademarked “VAIL V” design/symbol/logo, the federally trademarked “BEAVER
      CREEK” words, the federally trademarked “BRECKENRIDGE B”
      design/symbol/logo, the federally trademarked “KEYSTONE” word, the
      federally trademarked “KEYSTONE SNOWFLAKE” design/symbol/logo, and the
      Colorado tradenames “Vail Associates, Inc.”, “Breckenridge Ski Resort” and
      “Keystone Resort.”

              

      

      

      
        	
                2.

              	
                The
      following intellectual property:  the federally trademarked
      “Heavenly” design/symbol/logo.

              

      

      

      
        	
                 
      

              	
                Vail

              

      

      

      
        	
                1.

              	
                All
      improvements and personal property essential, from time to time, to ski
      mountain operations located within the Vail Mountain U.S. Forest Service
      Special Use Permit boundary.

              

      

      

      
        	
                2.

              	
                Rights
      of use and access with respect to those portions of Parcel 1, Golden Peak
      Ski Base & Recreation District Parcel, which, from time to time,
      contain (a) the Chairlift #6 (Riva Bahn Express Lift) base terminal and
      (b) the Chairlift #12 (Gopher Hill Lift) base
  terminal.

              

      

      

      
        	
                3.

              	
                Rights
      of use and access with respect to those portions of Tract E, Vail Village
      Fifth Filing (or any resubdivision thereof), which, from time to time,
      contain the Chairlift #16 (Vista Bahn Express Lift) base
      terminal.

              

      

      

      
        	
                4.

              	
                Rights
      of use and access with respect to those portions of Tract D, Vail
      Lionshead First Filing (or any resubdivision thereof), which, from time to
      time, contain the Chairlift #8 (Born Free Express Lift) base
      terminal.

              

      

      

      
        	
                5.

              	
                Rights
      of use and access with respect to those portions of Tract D, Vail
      Lionshead First Filing (or any resubdivision thereof), which, from time to
      time, contain the Lift #19 (Eagle Bahn Lift (a/k/a Gondola)) base
      terminal.

              

      

      

      
        	
                6.

              	
                Rights
      of use and access with respect to those portions of Tract D, Vail
      Lionshead First Filing (or any ressubdivion thereof); Tract B, Vail
      Lionshead First and Second Filings; and , Tract X, Forest Place
      Subdivision (“Tract X”) which, from time to time, contain the Lionshead
      Skier Bridge.

              

      

      

      
        	
                7.

              	
                Rights
      of use and access with respect to those portions of Tract X and Tract A,
      Block 1, Vail Village Sixth Filing, which, from time to time, provide
      skier access to the Lionshead Skier
Bridge.

              

      

      

      
        	
                 
      

              	
                Beaver
      Creek

              

      

      

      
        	
                1.

              	
                All
      improvements and personal property essential, from time to time, to ski
      mountain operations located within the Beaver Creek Mountain U.S. Forest
      Service Special Use Permit
boundary.

              

      

      

      
        	
                2.

              	
                Rights
      of use and access with respect to those portions of unplatted Tract S,
      Beaver Creek Subdivision, and Lot 14, Block 1, Tract A, Beaver Creek
      Subdivision, which, from time to time, contain the Chairlift #1 (Haymeadow
      Lift) base terminal.

              

      

      

      
        	
                3.

              	
                Rights
      of use and access with respect to those portions of unplatted Tract S,
      Beaver Creek Subdivision, which, from time to time, contain the Chairlift
      #2 (Highlands Lift) base terminal.

              

      

      

      
        	
                4.

              	
                Rights
      of use and access with respect to those portions of unplatted Tract S and
      Lot 4, Tract A, Block 1, Beaver Creek Subdivision, which, from time to
      time, contain the Chairlift #12 (Strawberry Park Express Lift) base
      terminal.

              

      

      

      
        	
                5.

              	
                Rights
      of use and access with respect to those portions of unplatted Tract S,
      Beaver Creek Subdivision, and Lot 14, Block 1, Tract A, Beaver Creek
      Subdivision, which, from time to time, contain the Chairlift #6
      (Centennial Express Lift) base
terminal.

              

      

      

      
        	
                6.

              	
                Rights
      of use and access with respect to those portions of Lot 5, Tract S, Beaver
      Creek Subdivision, which, from time to time, contain the Chairlift #14
      (Elkhorn Lift) base terminal.

              

      

      

      
        	
                7.

              	
                All
      land, improvements and personal property essential, from time to time, to
      ski mountain operations at the base of Arrowhead Mountain in the Arrowhead
      Planned Unit Development.

              

      

      

      
        	
                8.

              	
                Rights
      of use and access with respect to those portions of Tract G, Arrowhead at
      Vail, Filing No. 13 (Sixth Amendment), which, from time to time, contain
      the Chairlift #17 (Arrow Bahn Express Lift) base
  terminal.

              

      

      

      
        	
                9.

              	
                Rights
      of use and access with respect to those portions of Tract D, Bachelor
      Gulch Village Filing No. 2, which, from time to time, contain the
      Chairlift #16 (Bachelor Gulch Express Lift) base
  terminal.

              

      

      

      
        	
                 
      

              	
                Keystone

              

      

      

      
        	
                1.

              	
                All
      improvements and personal property essential, from time to time, to ski
      mountain operations located within the Keystone Mountain U.S. Forest
      Service Special Use Permit
boundary.

              

      

      

      
        	
                2.

              	
                Rights
      of use and access as granted in that certain Easement described in Section
      10.07 of the Declarations and Covenants, Conditions and Restrictions for
      the Neighbourhood at Keystone, which, from time to time, contains both the
      River Run Gondola base terminal and the Summit Express
    Lift.

              

      

      

      
        	
                3.

              	
                Rights
      of use and access with respect to those portions of the real property
      commonly referred to as the Base II/Mountain House neighborhood, which,
      from time to time, contains the base terminals for the Argentine Lift, the
      Peru Express Lift, the Packsaddle I Lift, the Pony Express I & II
      Lifts, the Discovery Lift and the Ironhorse
  Lift.

              

      

      

      
        	
                 
      

              	
                Breckenridge

              

      

      

      
        	
                1.

              	
                All
      improvements and personal property essential, from time to time, to ski
      mountain operations located within the Breckenridge Mountain U.S. Forest
      Service Special Use Permit
boundary.

              

      

      

      
        	
                2.

              	
                Rights
      of use and access with respect to those portions of the real property
      commonly referred to as the Peak 8 Base Property, which, from time to
      time, contains the base terminals for the Pony Lift, the Chair 7 Lift, the
      Chair 5 Lift, the Rocky Mountain Superchair Lift, Trygve’s Platter Lift
      and the Colorado Superchair Lift.

              

      

      

      
        	
                3.

              	
                Rights
      of use and access to those portions of the real property commonly referred
      to as the Quick Silver Tract, which, from time to time, contains the base
      terminals for the Quick Silver Super Six Lift, the Camelback Lift, the
      Lehman Lift and the Village Pony
Lift.

              

      

      

      
        	
                4.

              	
                Rights
      of use and access as granted in that certain Easement from Beaver Run
      Developments, a Colorado general partnership, pursuant to that certain
      Fourth Addendum to Lease Agreement, which, from time to time, contains the
      Beaver Run Superchair Lift.

              

      

      

      
        	
                 
      

              	
                Heavenly

              

      

      

      
        	
                1.

              	
                All
      improvements and personal property essential, from time to time, to ski
      mountain operations located within the Heavenly Ski Resort U.S. Forest
      Service Special Use Permit
boundary.

              

      

      

      
        	
                2.

              	
                Rights
      of use and access, including easements with respect to those portions of
      the Park Avenue Subdivision  Phases 1 and 3, which, from time to
      time, contain the gondola base station, utilities, signage, the gondola
      lift and related ground and aerial
easements.

              

      

      

      
        	
                3.

              	
                Rights
      of use and access with respect to the White Bark subdivision, which from
      time to time contain the summer maintenance road, underground utilities
      and associated snowmaking water pump station and portions of Stagecoach
      ski run.

              

      

      

      
        	
                4.

              	
                Existing
      ground and aerial easements with respect to those portions of Crescent V
      Subdivision, the City of South Lake Tahoe and the State of California
      which, from time to time, contain the gondola lift and appurtenant
      structures.

              

      

      

      
        	
                5.

              	
                Existing
      easements with respect to the Tahoe Village Unit No. 1, Tahoe Village Unit
      No. 2, amended Tahoe Village Unit No. 2 and Tahoe Village Unit No. 3
      subdivisions which, from time to time, contain ski lifts, ski runs, summer
      maintenance roads, access roads and snow storage
  areas.

              

      

      

      
        	
                6.

              	
                Existing
      easements with respect to the Bijou Beach subdivision and more
      particularly the HKM Partnership for linear utility and pump station
      easements.

              

      

      

      
        	
                 
      

              	
                (b)
      Additional Critical Assets

              

      

      

      
        	
                 
      

              	
                Intellectual
      Property

              

      

      

      
        	
                1.

              	
                The
      following Intellectual Property of the Companies: the federally
      trademarked VAIL word mark, the federally trademarked, “BEAVER CREEK” logo
      with stylized “BC”, the federally trademarked “BC” stylized logo, the
      federally trademarked “BRECKENRIDGE” word mark, the federally trademarked
      “HEAVENLY” word mark, and the federally trademarked, “SKI TAHOE’S
      HEAVENLY” word mark.

              

      

      

      
        	
                 
      

              	
                Beaver
      Creek

              

      

      

      
        	
                1.

              	
                Rights
      of use and access with respect to those portions of Lot 4, Tract B, Beaver
      Creek Subdivision, which, from time to time, contain the Chairlift #15
      (Lower Beaver Creek Mountain Express Lift) base
  terminal.

              

      

      

      SCHEDULE
8.13

      

      Non-Standard Transactions
with Affiliates

      

      

      
        	
                1.  

              	
                The
      transactions described in Sections
      10.8(n)(iii) and 10.9
      of the Credit Agreement.

              

      

      

      
        	
                2.  

              	
                Those
      transactions described in the VRI Annual Report on Form 10-K for the year
      ended July 31, 2004, Quarterly Report on Form10-Q for the quarter ended
      October 31, 2004 and the proxy statement for the VRI 2004 Annual Meeting
      of Shareholders, filed on November 19,
2004.

              

      

      

      
        	
                3.  

              	
                Employment
      Agreements with various management employees and use of facilities and
      provision of other perquisites by the Companies to their officers,
      directors and employees.

              

      

      

      
        	
                4.  

              	
                Stock
      option or other equity compensation agreements between VRI and certain
      employees of VRI or Borrower as executed from time to
  time.

              

      

      

      

      SCHEDULE
10.8

       

      Loans, Advances, and
Investments

       

      

       

      (a) loans, advances, and investments
of the Restricted Companies existing on the Third Agreement Date in the Existing
Housing Districts, Existing Metro Districts, and Keystone/IntraWest LLC
(value as of December 31, 2004)

       

      
        	
                Investment
      in Keystone/Intrawest

              	
                     $1,578,305

              
	
                Initial
      aggregate investment in Existing Housing Districts

              	
                           2,200

              
	
                Aggregate
      investments in Existing Housing Districts

              	
                  (16,287,882)

              

      

      

      (b) loans, advances, and investments
of the Restricted Companies in Persons other than Restricted Companies, Existing
Housing Districts, Existing Metro Districts, and Keystone IntraWest LLC
(value as of December 31, 2004)

       

      
        	
                Bachelor
      Gulch Resort, LLC (note receivable)

              	
                               -

              
	
                Ritz-Carlton
      Development Co., Inc. (note receivable)

              	
                       $561,725

              
	
                Investment
      in Bachelor Gulch Resort, LLC (land)

              	
                               -

              
	
                Investment
      in FFT Investment Partners

              	
                     3,107,719

              
	
                Investment
      in Resort Technology Partners, Inc.

              	
                     4,894,470

              
	
                Investment
      in Forest Ridge Holdings, Inc.

              	
                               -

              
	
                Investment
      in Preferred Hotels & Resorts Worldwide, Inc.

              	
                           9,600

              
	
                Investment
      in SSI Venture, LLC

              	
                   7,233,778

              
	
                Investment
      in Eclipse Television and Sports Marketing, Inc.

              	
                       400,000

              
	
                Investment
      in Slifer, Smith & Frampton/Vail Associates Real Estate,
      LLC

              	
                     2,500,000

              
	
                Investment
      in Avon Partners II, LLC

              	
                     2,062,409

              
	
                Investment
      in Boulder/Beaver, LLC

              	
                     3,238,139

              
	
                Investment
      in Eagle Park Reservoir Company

              	
                     6,507,589

              
	
                Investment
      in Clinton Ditch & Reservoir Company

              	
                     2,905,824

              
	
                Note
      receivable from Alpine Metropolitan District

              	
                     1,930,712

              
	
                Glendore
      Development Inc. note receivable due 8/27/08 (Forest
Place)

              	
                       500,000

              
	
                La
      Posada de Santa Fe Resort note receivable

              	
                     1,500,000

              
	
                Vail
      Valley Foundation note receivable

              	
                       144,500

              
	
                Revolving
      line of credit with Breckenridge Terrace, LLC (maximum borrowings
      $6,750,000)

              	
                     6,362,178

              
	
                Receivable
      from Keystone/Intrawest LLC for return of capital

              	
                     1,499,165

              
	
                Advances
      to Keystone/Intrawest LLC

              	
                369,432

              
	 
      	 
      
	
                Total:

              	
                 $45,727,240

              

      

      

      

      

      (c)
put options

      

      
        	
                1.  

              	
                SSI Venture LLC -
      Pursuant to the SSI Venture LLC Amended and Restated Operating
      Agreement, dated as of May 1, 2003, each of the minority shareholder
      (“Gart”) and Vail Associates, Inc. (“VA”) has the right to require VA to
      purchase from Gart, and Gart to sell to VA, Gart’s ownership interest in
      SSI, on the terms and conditions set forth in such
    agreement.

              

      

      

      
        	
                2.

              	
                Rockresorts International, LLC
      - Pursuant to the Rockresorts International, LLC Limited Liability
      Company Agreement, dated as of October 15, 2001, the minority shareholder
      (“Olympus”) in Rockresorts International, LLC (“Rockresorts”) has an
      option to sell all of its interests to Vail RR, Inc. (“Vail”), on the
      terms and conditions set forth in such agreement.  Olympus has
      exercised its put to Vail, for a total put price of $2.0
      million.

              

      

      

      
        	
                3.

              	
                Resort Technology Partners,,
      LLC - Pursuant to the Resort Technology Partners, LLC Operating
      Agreement, dated as of March 1, 2001, the minority shareholder (“RTP
      Holding”) in Resort Technology Partners, LLC (“RTP “) has the right to
      require The Vail Corporation (“TVC”) to purchase a portion of RTP
      Holding’s interest in RTP, on the terms and conditions set forth in such
      agreement.

              

      

      

      
        	
                4.

              	
                JHL&S LLC - Pursuant to the
      JHL&S LLC Operating Agreement, dated as of December 21, 2000, (i)
      Teton Hospitality Services, Inc. (“Teton Vail”) has the right to require
      the minority shareholder (“SLM”) in JHL&S, LLC to sell all of its
      ownership interest in JHL&S, LLC and (ii) SLM  has the right
      to require Teton Vail to acquire all of SLM’s ownership interest in
      JHL&S, LLC, on the terms and conditions set forth in such
      agreement.

              

      

      

      SCHEDULE
10.9

      

      Permitted
Distributions

      
        	
                 
      

              	 

      

      

      
        	
                (a)

              	
                So
      long as no Default or Potential Default exists or would result therefrom,
      Distributions for payment of tax liabilities not to exceed $10,000,000 in
      the aggregate after the Closing Date by the following Restricted
      Companies:

              

      

      

      
        	
                 
      

              	
                (i)

              	 	
                Distributions
      by Larkspur Restaurant & Bar, LLC to its members in accordance with
      the terms of its Operating
Agreement;

              

      

       

      
        	
                 
      

              	
                (ii)

              	 	
                Distributions
      by JHL&S LLC to its members in accordance with the terms of its
      Operating Agreement; and

              

      

       

      
        	
                 
      

              	
                (iii)

              	 	
                Distributions
      by SSI Venture LLC to its members in accordance with the terms of its
      Amended and Restated Operating
Agreement.

              

      

       

      
        	
                 
      

              	
                (iv)

              	 	
                Distributions
      by RTP to its members in accordance with the terms of its Operating
      Agreement.

              

      

       

      
        	
                (b)

              	
                Distributions
      by SSI Venture LLC for “Preferred Payments” to
      GSSI LLC, one of its members, pursuant to Section 4.1(b) of its
      Amended and Restated Operating Agreement, so long as no Default or
      Potential Default exists or would result therefrom and such payments do
      not exceed the following amounts in the calendar years set forth
      below:

              

      

      

      
        	
                Calendar Year

              	
                 Permitted Distribution

              
	
                2005

              	
                $47,250.00

              

      

      

      

      

      SCHEDULE
10.16

      

      Existing Burdensome
Agreements

      

      

      1.           Larkspur
Restaurant & Bar, LLC Operating Agreement

      

      2.           Rockresorts
International, LLC Limited Liability Company Agreement

      

      3.           JHL&S
LLC Operating Agreement

      

      4.           SSI
Venture LLC Amended and Restated Operating Agreement

      

      

       

      
        	
                 
      

              	
                SCHEDULE
      15.11

              

      

       

      

      PROCESSING AND RECORDATION
FEES

      

      Administrative
Agent will charge a processing and recordation fee (an “Assignment
Fee”) in the amount of $2,500 for each assignment; provided, however, that in
the event of two or more concurrent assignments to members of the same Assignee
Group (which may be effected by a suballocation of an assigned amount among
members of such Assignee Group) or two or more concurrent assignments by members
of the same Assignee Group to a single Eligible Assignee (or to an Eligible
Assignee and members of its Assignee Group), the Assignment Fee will be $2,500
plus the amount set forth below:

      

      

      
        	
                Transaction

              	
                Assignment
      Fee

              
	 
      	 
      
	
                First
      four concurrent assignments or suballocations to members of an Assignee
      Group (or from members of an Assignee Group, as applicable)

                 

              	
                -0-

              
	
                Each
      additional concurrent assignment or suballocation to a member of such
      Assignee Group (or from a member of such Assignee Group, as
      applicable)

              	
                $500

              

      

      

      

      

      

      

      EXHIBIT
A-1

      

      REVOLVER
NOTE

      

      

      $________________                                                             Dallas,
Texas __________________, 2005

      

      

      For value
received, THE VAIL CORPORATION, a Colorado corporation doing business as “Vail
Associates, Inc.” (“Maker”),
hereby promises to pay to the order of ___________________ (“Payee”) on
or before the Termination Date, the principal amount of _______________, or so
much thereof as may be disbursed and outstanding hereunder, together with
interest, as hereinafter described.

      

      This note
has been executed and delivered under, and is subject to the terms of, the
Fourth Amended and Restated Credit Agreement dated as of  January 28,
2005 (as amended, supplemented or restated, the “Credit
Agreement”), among Maker, the Lenders, and Bank of America, N.A., as
Administrative Agent for itself and the other Lenders (including, without
limitation, Payee), and is one of the “Revolver Notes” referred to
therein.  Unless defined herein or the context otherwise requires,
capitalized terms used herein have the meaning given to such terms in the Credit
Agreement.  Reference is made to the Credit Agreement for provisions
affecting this note regarding applicable interest rates, principal and interest
payment dates, final maturity, acceleration of maturity, exercise of Rights,
payment of Attorney Costs, court costs and other costs of collection, and
certain waivers by Maker and others now or hereafter obligated for payment of
any sums due hereunder.

      

      This note
is a Loan Paper and, therefore, is subject to the applicable provisions of Section 15
(including, without limitation, the registration provisions of Section
15.11(c)) of the Credit Agreement, all of which applicable provisions are
incorporated herein by reference the same as if set forth herein
verbatim.

      

      Specific
reference is made to Section
3.8 of the Credit Agreement for usury savings provisions.

      

      

      

      

      THE VAIL
CORPORATION

      (D/B/A
“VAIL ASSOCIATES, INC.”)

      

      

      

      By:                                                                

      Name:                                                                

      Title:                                                                

      

      

      

      EXHIBIT
A-2

      

      SWING
LINE NOTE

      

      

      $________________                                                             Dallas,
Texas __________________, 2005

      

      

      For value
received, THE VAIL CORPORATION, a Colorado corporation doing business as “Vail
Associates, Inc.” (“Maker”),
hereby promises to pay to the order of ___________________ (“Payee”) on
or before the Termination Date or such earlier date as specified in Section
3.2 of the Credit Agreement (as hereinafter defined), the principal
amount of _______________, or so much as may be disbursed and outstanding
thereunder, together with interest, as hereinafter described.

      

      This note
has been executed and delivered under, and is subject to the terms of, the
Fourth Amended and Restated Credit Agreement dated as of January 28, 2005 (as
amended, supplemented or restated, the “Credit
Agreement”), among Maker, the Lenders, and Bank of America, N.A., as
Administrative Agent for itself and the other Lenders (including, without
limitation, Payee), and is one of the “Swing Line Notes” referred to
therein.  Unless defined herein or the context otherwise requires,
capitalized terms used herein have the meaning given to such terms in the Credit
Agreement.  Reference is made to the Credit Agreement for provisions
affecting this note regarding applicable interest rates, principal and interest
payment dates, final maturity, acceleration of maturity, exercise of Rights,
payment of Attorney Costs, court costs and other costs of collection, and
certain waivers by Maker and others now or hereafter obligated for payment of
any sums due hereunder.

      

      This note
is a Loan Paper and, therefore, is subject to the applicable provisions of Section 15
(including, without limitation, the registration provisions of Section
15.11(c)) of the Credit Agreement, all of which applicable provisions are
incorporated herein by reference the same as if set forth herein
verbatim.

      

      Specific
reference is made to Section
3.8 of the Credit Agreement for usury savings provisions.

      

      

      

      

      THE VAIL
CORPORATION

      (D/B/A
“VAIL ASSOCIATES, INC.”)

      

      

      

      By:                                                                

      Name:                                                                

      Title:                                                                

      

      

      EXHIBIT
B-1

      

      GUARANTY

      

      THIS
GUARANTY (this “Guaranty”)
is executed as of ______________, by the undersigned guarantor (“Guarantor”)
for the benefit of BANK OF AMERICA, N.A. (with its successors in such capacity,
“Administrative
Agent”), as Administrative Agent for itself and other Lenders
(collectively, “Lenders”;
together with Administrative Agent, the “Guaranteed
Parties”) now or hereafter party to the Fourth Amended and Restated
Credit Agreement dated as of January 28, 2005 among THE VAIL CORPORATION, a
Colorado corporation doing business as “Vail Associates, Inc.” (“Borrower”),
the Lenders, and Administrative Agent (as hereafter amended, supplemented, or
restated, the “Credit
Agreement”).  Capitalized terms not otherwise defined herein
are used as defined in the Credit Agreement.

      

      A. Guarantor
is an Affiliate of Borrower.

      

      B. [The
execution and delivery of this Guaranty is an integral part of the transactions
contemplated by the Loan Papers and is a condition precedent to Lenders’
obligations to extend credit under the Credit Agreement.]1  [Guarantor is required to deliver this
Guaranty pursuant to Section
[9.10] [9.11] of
the Credit Agreement.]2

      

      NOW,
THEREFORE, Guarantor hereby guarantees to Lenders the prompt payment at maturity
(by acceleration or otherwise), and at all times thereafter, of the Guaranteed
Debt owing to Lenders as follows:

      

      1. Borrower.  The
term “Borrower”
includes, without limitation, Borrower as a debtor-in-possession and any party
hereafter appointed “Receiver” for Borrower or all
or substantially all of its assets under any Debtor Relief Law.

      

      2. Guaranteed
Debt.  The term “Guaranteed
Debt” means all present and future indebtedness and obligations of every
kind, nature, and character, direct or indirect, absolute or contingent,
liquidated or unliquidated, voluntary or involuntary, owed to the Guaranteed
Parties by Borrower under the Loan Papers to which it is a party, and all
instruments, agreements, and other documents of every kind and nature now or
hereafter created in connection with the Credit Agreement (including all
renewals, extensions and modifications thereof), including, without limitation,
the Obligation, together with all interest accruing thereon, fees, costs, and
expenses (including, without limitation, (a) all Attorney Costs incurred
pursuant to, or in connection with the protection of Rights under, the Loan
Papers to which Borrower is a party, and (b) amounts that would become due but
for operation of Section 502, 506 or any other applicable provision of Title 11
of the U.S. Code), together
with all pre- and post-maturity interest thereon (including, without
limitation, all post-petition interest if Borrower voluntarily or involuntarily
files for bankruptcy protection) and any and all costs, Attorney Costs, and
expenses reasonably incurred by any Guaranteed Party to enforce Borrower’s
payment of any of the foregoing indebtedness.  Administrative Agent’s
books and records showing the amount of the Guaranteed Debt shall be admissible
in evidence in any action or proceeding, and shall be binding upon Guarantor and
conclusive for the purpose of establishing the amount of the Guaranteed
Debt.

      

      3. Absolute Guaranty; Limit of
Liability.  This instrument is an absolute, irrevocable and
continuing guaranty, and the circumstance that at any time or from time to time
the Guaranteed Debt may be paid in full does not affect the obligation of
Guarantor with respect to the Guaranteed Debt of Borrower thereafter
incurred.  Notwithstanding Any Contrary
Provision in this Guaranty, However, the Obligations of Guarantor Hereunder
Shall Be Limited to an Aggregate Amount Equal to the Largest Amount That Would
Not Render its Obligations Hereunder Subject to Avoidance under Section 548 of
the U.S. Bankruptcy Code or Any Comparable Provisions of Any Applicable State
Law.

      

      4. No Setoff or Deductions;
Taxes.  Guarantor represents and warrants that it is
incorporated or formed and resident in the United States of America. All
payments by Guarantor hereunder shall be paid in full, without setoff or
counterclaim or any deduction or withholding whatsoever, including, without
limitation, for any and all present and future Indemnified Taxes. If Guarantor
shall be required by any Laws to deduct any Indemnified Taxes from or in respect
of any sum payable under this Guaranty to any Guaranteed Party, (i) the sum
payable shall be increased as necessary so that after making all required
deductions, each Guaranteed Party receives an amount equal to the sum it would
have received had no such deductions been made, (ii) Guarantor shall make such
deductions, (iii) Guarantor shall pay the full amount deducted to the relevant
taxation authority or other authority in accordance with applicable Laws, and
(iv) within 30 days after the date of such payment, Guarantor shall furnish to
Administrative Agent (which shall forward the same to the applicable Guaranteed
Parties) the original or a certified copy of a receipt evidencing payment
thereof.

      

      5. Representations and
Warranties.  Guarantor acknowledges that certain
representations and warranties contained in the other Loan Papers (including,
without limitation, Section 8
of the Credit Agreement) apply to it and hereby represents and warrants to
Administrative Agent and Lenders that each such representation and warranty is
true and correct.  In addition, Guarantor represents and warrants that
(a) by virtue of its relationship with Borrower, the execution, delivery and
performance of this Guaranty is for the direct benefit of Guarantor and it has
received adequate consideration for this Guaranty; and (b) the value of the
consideration received and to be received by Guarantor under the Loan Papers is
reasonably worth at least as much as its liability and obligation under this
Guaranty, and such liability and obligation may reasonably be expected to
benefit Guarantor directly or indirectly.

      

      6. Waiver of
Notices.  Guarantor waives notice of the acceptance of this
Guaranty and of the extension or continuation of the Guaranteed Debt or any part
thereof.  Guarantor further waives presentment, protest, notice,
dishonor or default, demand for payment and any other notices to which such
Guarantor might otherwise be entitled.

      

      7. Reinstatement; Stay of
Acceleration.  Notwithstanding anything in this Guaranty to the
contrary, upon the insolvency, bankruptcy, or reorganization of Borrower or any
other Person, (a) this Guaranty shall continue to be effective or be reinstated,
as the case may be, if at any time any payment of any portion of the Guaranteed
Debt is revoked, terminated, rescinded or reduced or must otherwise be restored
or returned, as if such payment had not been made and whether or not
Administrative Agent is in possession of or has released this Guaranty and
regardless of any prior revocation, rescission, termination or reduction, and
(b) in the event that acceleration of the time for payment of any of the
Guaranteed Debt is stayed, all such amounts shall nonetheless be payable by
Guarantor immediately upon demand by Administrative Agent.

      

      8. Covenants.  Guarantor
acknowledges that certain covenants, agreements and undertakings contained in
the other Loan Papers (including, without limitation, Sections 8,
9, and 10 of the
Credit Agreement) apply to it and hereby covenants and agrees with
Administrative Agent and Lenders to comply with each such covenant, agreement
and undertaking.

      

      9. Other
Indebtedness.  If Guarantor becomes liable for any indebtedness
owing by Borrower to any Guaranteed Party, other than under this
Guaranty, such liability will not be in any manner impaired or affected by this
Guaranty, and the Rights of the Guaranteed Parties under this Guaranty are
cumulative of any and all other Rights that the Guaranteed Parties may ever have
against Guarantor.  The exercise by any Guaranteed Parties of any
Right or remedy under this Guaranty or otherwise will not preclude the
concurrent or subsequent exercise of any other Right or remedy.

      

      10. Default; Exhaustion of Other
Remedies Not Required. If a Default under the Credit Agreement exists,
and as a result of such Default amounts are owing to any Guaranteed Party in
respect of its Guaranteed Debt, Guarantor shall, on demand and without further
notice of dishonor and without any notice having been given to Guarantor
previous to such demand of either the acceptance by any Guaranteed Party of this
Guaranty or the creation or incurrence of any Guaranteed Debt, pay the amount of
the Guaranteed Debt then due and payable to the appropriate Guaranteed
Party.  The obligations of Guarantor hereunder are those of primary
obligor, and not merely as surety, and are independent of the Guaranteed
Debt.  Guarantor waives diligence by Administrative Agent and action
on delinquency in respect of the Guaranteed Debt or any part thereof, including,
without limitation any provisions of Law requiring Administrative Agent to
exhaust any Right or remedy or to take any action against Borrower, any other
Guarantor, or any other Person or property before enforcing this Guaranty
against Guarantor.

      

      11. Subordinated
Debt.  All obligations of Borrower to Guarantor, whether now
existing or hereafter arising, including without limitation any obligation of
Borrower to Guarantor as subrogee of Administrative Agent or Lenders resulting
from any Guarantor’s performance under this Guaranty (the “Subordinated
Debt”), are expressly subordinated to the full and final payment of the
Guaranteed Debt.  Guarantor agrees not to accept any payment of the
Subordinated Debt from Borrower with respect thereto, if a Default exists; and,
if Guarantor receives any payment of the Subordinated Debt in violation of the
foregoing, Guarantor will hold any such payment in trust for Administrative
Agent and promptly turn it over to Administrative Agent, in the form received
(with any necessary endorsements), to be applied to the Guaranteed Debt in the
manner contemplated by the Credit Agreement, but without reducing or affecting
in any manner the liability of Guarantor under this Guaranty.

      

      12. Subrogation and
Contribution.  Guarantor shall not exercise any Right of
subrogation, contribution or similar Rights with respect to any payments it
makes under this Guaranty until all of the Guaranteed Debt and any amounts
payable under this Guaranty are indefeasibly paid, the Total Commitment is
terminated, and the Obligation is paid in full.  If any amounts are
paid to the Guarantor in violation of the foregoing limitation, then such
amounts shall be held in trust for the benefit of Guaranteed Parties and shall
forthwith be paid to Administrative Agent, for the benefit of Lender to reduce
the amount of the Guaranteed Debt, whether matured or unmatured.

      

      13. Obligations Not
Diminished.  Guarantor’s obligations under this Guaranty will
not be released, diminished or affected by the occurrence of any one or more of
the following events:  (a) any Guaranteed Party’s taking or accepting
of any other security or guaranty for any or all of the Guaranteed Debt; (b) any
release, surrender, exchange, subordination, impairment or loss of any
Collateral securing any or all of the Guaranteed Debt; (c) any full or partial
release of the liability of any other obligor on the Obligation; (d) the
modification of or waiver of compliance with, any terms of any other Loan Paper;
(e) the insolvency, bankruptcy or lack of corporate power of any party at any
time liable for any or all of the Guaranteed Debt, whether now existing or
hereafter occurring; (f) any renewal, extension or rearrangement of any or all
of the Guaranteed Debt or any adjustment, indulgence, forbearance or compromise
that may be granted or given by Administrative Agent or Lenders to any other
obligor on the Obligation; (g) any neglect, delay, omission, failure or refusal
of Administrative Agent or Lenders to take or prosecute any action in connection
with the Guaranteed Debt; (h) any failure of Administrative Agent or Lenders to
notify Guarantor of any renewal, extension or assignment of any or all of the
Guaranteed Debt or the release of any security or of any other action taken or
refrained from being taken by Administrative Agent or Lenders against Borrower
or any new agreement between Administrative Agent or Lenders and Borrower, it
being understood that Administrative Agent and Lenders are not required to give
Guarantor any notice of any kind under any circumstances whatsoever with respect
to or in connection with the Guaranteed Debt; (i) the unenforceability of any
part of the Guaranteed Debt against any party because it exceeds the amount
permitted by Law, the act of creating it is ultra vires, the officers
creating it exceeded their authority or violated their fiduciary duties in
connection therewith, or otherwise; or (j) any payment of the Obligation to
Administrative Agent or Lenders is held to constitute a preference under any
Debtor Relief Law or for any other reason Administrative Agent or Lenders are
required to refund such payment or make payment to someone else (and in each
such instance this Guaranty will be reinstated in an amount equal to such
payment).

      

      14. Waiver of Right to Require
Suit.  Guarantor waives all Rights by which it might be
entitled to require suit on an accrued Right of action in respect of any of the
Guaranteed Debt or require suit against Borrower or others.

      

      15. Independent Credit
Investigation.  Guarantor confirms that it has executed and
delivered this Guaranty after reviewing the terms and conditions of the Loan
Papers and such other information as it has deemed appropriate in order to make
its own credit analysis and decision to execute and deliver this
Guaranty.  Guarantor confirms that it has the sole responsibility for,
has adequate means of determining, and has made its own independent
investigation with respect to, Borrower’s creditworthiness, and is not executing
and delivering this Guaranty in reliance on any representation or warranty by
Administrative Agent or Lenders as to such
creditworthiness.  Guarantor expressly assumes all responsibilities to
remain informed of the financial condition, business, and operations of Borrower
and any circumstances affecting (a) Borrower’s ability to perform under the Loan
Papers to which it is a party or (b) any Collateral securing all or any part of
the Guaranteed Debt.  Guarantor acknowledges and agrees that
Administrative Agent has no duty, and Guarantor is not relying on Administrative
Agent at any time, to disclose to Guarantor any information relating to the
business, operations or financial condition of Borrower.

      

      16. Expenses.  Guarantor
shall pay on demand all out-of-pocket expenses (including Attorney Costs) in any
way relating to the enforcement or protection of Guaranteed Parties’ Rights
under this Guaranty, including any incurred in the preservation, protection or
enforcement of any Rights of Administrative Agent or Lenders in any case
commenced by or against Guarantor under Debtor Relief Laws.  The
obligations of Guarantor under the preceding sentence shall survive termination
of this Guaranty.

      

      17. Amendments.  No
provision of this Guaranty may be waived, amended, supplemented, or modified,
except by a written instrument executed by Administrative Agent and
Guarantor.

      

      18. No Waiver;
Enforceability.  No failure by Administrative Agent to
exercise, and no delay in exercising, any Right, remedy, or power hereunder
shall operate as a waiver thereof; nor shall any single or partial exercise of
any Right, remedy, or power hereunder preclude any
other or further
exercise thereof or the exercise of any other Right.  The remedies
herein provided are cumulative and not exclusive of any remedies provided by Law
or in equity.  The unenforceability or invalidity of any provision of
this Guaranty shall not affect the enforceability or validity of any other
provision herein.

      

      19. Setoff.  If
and to the extent any payment is not made when due hereunder, any Lender may
setoff and charge from time to time any amount so due against any or all of
Guarantor’s accounts or deposits with such Lender.

      

      20. No
Discharge.  This Guaranty is a continuing and irrevocable
guaranty of all Guaranteed Debt now or hereafter existing and shall remain in
full force and effect until all Guaranteed Debt and any other amounts payable
under this Guaranty are indefeasibly paid and performed in full and any of the
Commitments of Lenders are terminated.  The Guaranteed Debt will not
be reduced, discharged or released because or by reason of any existing or
future offset, claim or defense (except for the defense of
payment of the Guaranteed Debt) of Borrower or any other party against
Administrative Agent or Lenders or against payment of the Guaranteed Debt,
whether such offset, claim or defense arises in connection with the Guaranteed
Debt or otherwise.  Such claims and defenses include, without
limitation, failure of consideration, breach of warranty, fraud, bankruptcy,
incapacity/infancy, statute of limitations, lender liability, accord and
satisfaction, usury, forged signatures, mistake, impossibility, frustration of
purpose, and unconscionability.  At Administrative Agent’s option, all
payments under this Guaranty shall be made to an office of Administrative Agent
located in the United States and in U.S. Dollars.

      

      21. Successors and
Assigns.  This Guaranty is for the benefit of Administrative
Agent and Lenders and their respective successors and permitted assigns, and in
the event of an assignment of all or any of the Guaranteed Debt, the Rights
hereunder, to the extent applicable to the portion assigned, shall be
transferred therewith.  This Guaranty shall be binding upon Guarantor
and its successors and permitted assigns.

      

      22. Loan
Paper.  This Guaranty is a Loan Paper and is subject to the
applicable provisions of Section 15
of the Credit Agreement, all of which are incorporated into this Guaranty by
reference the same as if set forth in this Guaranty verbatim.

      

      23. Release of
Guaranty.  This Guaranty shall be released pursuant to and in
accordance with the terms set forth in Section
6.3 of the Credit Agreement.

      

      

      

      [signatures begin on the
following page]

      

        

      

        
        1 Use
if the Guaranty is required to be delivered on the Closing Date.

        
        2 Use
if the Guaranty is required to be delivered pursuant to Sections 9.10 or 9.11 of
the Credit Agreement.

      

      Executed as of the date first written
above.

      

      

      

      GUARANTOR:

      

      

      

      By:           

      Name:           

      Title:           

      

      

      

      EXHIBIT
B-2

      

      CONFIRMATION
OF GUARANTY

      

      THIS
CONFIRMATION OF GUARANTY (this “Confirmation”)
is executed as of January 28, 2005, by each of the undersigned (each, a “Guarantor,”
and collectively, the “Guarantors”),
in favor of Bank of America, N.A., as administrative agent (the “Administrative
Agent”) for the Lenders and their respective successors and assigns
(collectively, the “Lenders”)
that are from time to time parties to the Credit Agreement (as hereinafter
defined).

      

      Capitalized
terms not otherwise defined in this Confirmation shall have the meanings
ascribed to such terms in the applicable Guaranty (as hereinafter
defined).

      

      R E C I T A L S

      

      A.           The
Vail Corporation (d/b/a “Vail Associates, Inc.”), a Colorado corporation (the
“Borrower”),
certain lenders party thereto, and Bank of America, N.A., as administrative
agent, are parties to that certain Third Amended and Restated Revolving Credit
and Term Loan Agreement dated as of June 10, 2003 (as the same may have been
amended from time to time, the “Existing Credit
Agreement”).

      

      B.           In
connection with the Existing Credit Agreement, (i) each Guarantor, other than
Rockresorts Wyoming, LLC, a Wyoming limited liability company (“Rockresorts
Wyoming”), executed and delivered to Administrative Agent, for the
benefit of Lenders, that certain Amended and Restated Guaranty dated as of June
10, 2003 (as the same has been or may hereafter be from time to time amended,
the “Original
Guaranty”), and (ii) Rockresorts Wyoming executed and delivered to
Administrative Agent, for the benefit of Lenders, that certain Guaranty dated as
of August 29, 2003 (as the same has been or may hereafter be from time to time
amended, the “Rockresorts
Wyoming Guaranty”; the Rockresorts Wyoming Guaranty and the Original
Guaranty are each, a “Guaranty,”
and collectively, the “Guaranties”).

      

      C.           Concurrently
herewith, the Existing Credit Agreement will be amended and restated pursuant to
the Fourth Amended and Restated Credit Agreement (as the same may be restated,
modified, amended, or supplemented from time to time, the “Credit
Agreement”), by and among the Borrower, the Administrative Agent, and the
Lenders.

      

      D.           The
execution and delivery of this Confirmation is an integral part of the
transactions contemplated by the Loan Papers and is a condition precedent to
Lenders’ obligations to extend credit under the Credit Agreement.

      

      E.           In
connection with the Credit Agreement, each Guarantor has agreed to ratify and
confirm the Guaranty to which such Guarantor is party.

      

      NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Guarantors hereby agrees as follows:

      

      1.           Confirmation
of Guaranty.  Each Guarantor
hereby (a) consents and agrees to the execution and delivery of the Credit
Agreement and the related Loan Papers (as defined in the Credit Agreement),
(b) ratifies and confirms that the Guaranty executed by such Guarantor is
not released, diminished, impaired, reduced, or otherwise adversely affected by
the Credit Agreement and continues to guarantee and assure the full payment and
performance of all present and future obligations thereunder, and (c) agrees
that  the Guaranteed Debt includes, without limitation, the Obligation (as
defined in the Credit Agreement).

      

      2.           Other
Agreements.  Each Guarantor
(a) agrees to perform such acts and duly authorize, execute, acknowledge,
deliver, file, and record such additional guaranties, and other agreements,
documents, instruments, and certificates as the Administrative Agent may
reasonably deem necessary or appropriate in order to preserve and protect those
guaranties and assurances previously guaranteed by such Guarantor pursuant to
the Guaranty executed by such Guarantor, (b) represents and warrants to the
Administrative Agent that such liability and obligation may reasonably be
expected to directly or indirectly benefit such Guarantor, and (c) waives
notice of acceptance of this Confirmation.

      

      3.           Continued
Effect.  All terms,
provisions, and conditions of the Guaranties shall continue in full force and
effect and shall remain enforceable and binding in accordance with the terms
thereof.

      

      4.           Parties
Bound.  This Confirmation
shall be binding upon and inure to the benefit of each Guarantor and the
Administrative Agent, for the benefit of the Lenders, and their respective
successors, permitted assigns, and legal representatives.

      

      5.           Headings.  Section headings
are for convenience of reference only and shall in no way affect the
interpretation of this Confirmation.

      

      6.           Governing
Law.  THE SUBSTANTIVE
LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE VALIDITY, CONSTRUCTION,
ENFORCEMENT, AND INTERPRETATION OF THIS CONFIRMATION.

      

      7.           NOTICE OF
FINAL AGREEMENT.
THIS CONFIRMATION REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND
MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT
ORAL AGREEMENTS OF THE PARTIES.

      

      THERE ARE
NO ORAL AGREEMENTS BETWEEN THE PARTIES.

      

      

      

      Remainder
of Page Intentionally Blank

      Signature
Pages to Follow

      

      

      EXECUTED
as of the day and year first above written.

      

      

      GUARANTORS:

      

      Vail
Resorts, Inc.

      Vail
Holdings, Inc.

      Beaver
Creek Associates, Inc.

      Beaver
Creek Consultants, Inc.

      Beaver
Creek Food Services, Inc.

      Breckenridge
Resort Properties, Inc.

      Complete
Telecommunications, Inc.

      Gillett
Broadcasting, Inc.

      Grand
Teton Lodge Company

      Heavenly
Valley Limited Partnership

      Jackson
Hole Golf and Tennis Club, Inc.

      JHL&S
LLC

      Keystone
Conference Services, Inc.

      Keystone
Development Sales, Inc.

      Keystone
Food & Beverage Company

      Keystone
Resort Property Management Company

      Larkspur
Restaurant & Bar, LLC

      Lodge
Properties, Inc.

      Lodge
Realty, Inc.

      Mountain
Thunder, Inc.

      Property
Management Acquisition Corp., Inc.

      Rockresorts
International, LLC

      Rockresorts
LLC

      Rockresorts
Cheeca, LLC

      Rockresorts
Equinox, Inc.

      Rockresorts
LaPosada, LLC

      Rockresorts
Wyoming, LLC

      Rockresorts
Casa Madrona, LLC

      Rockresorts
Rosario, LLC

      Teton
Hospitality Services, Inc.

      The
Village at Breckenridge Acquisition Corp., Inc.

      Timber
Trail, Inc.

      VA Rancho
Mirage I, Inc.

      VA Rancho
Mirage II, Inc.

      VA Rancho
Mirage Resort, L.P.

      Vail/Arrowhead,
Inc.

      Vail
Associates Holdings, Ltd.

      Vail
Associates Investments, Inc.

      Vail
Associates Real Estate, Inc.

      Vail/Beaver
Creek Resort Properties, Inc.

      Vail Food
Services, Inc.

      Vail
Resorts Development Company

      Vail RR,
Inc.

      Vail
Summit Resorts, Inc.

      Vail
Trademarks, Inc.

      VAMHC,
Inc.

      VR
Heavenly I, Inc.

      VR
Heavenly II, Inc.

      VR
Holdings, Inc.

      

      By:           

      Name:           

      Title:           

      

      

      The
undersigned, as Administrative Agent for the benefit of the Lenders, hereby
accepts the foregoing Confirmation.

      

      ADMINISTRATIVE
AGENT:

      

      BANK OF
AMERICA, N.A.

      

      

      By:           

      Name:           

      Title:           

      

      EXHIBIT
C-1

      

      LOAN
NOTICE

      

      ________________

      

      

      Bank of
America, N.A., as Administrative Agent

      

      

      Attn:           Arlene
Minor

      Fax:           214-290-9412

      

      Reference
is made to the Fourth Amended and Restated Credit Agreement dated as of
January 28, 2005 (as amended, supplemented or restated from time to time,
the “Credit
Agreement”), among THE VAIL CORPORATION, a Colorado corporation doing
business as “Vail Associates, Inc.”, the Lenders, and Bank of America, N.A., as
Administrative Agent for itself and the other Lenders.  Capitalized
terms used herein and not otherwise defined herein shall have the meanings
assigned to such terms in the Credit Agreement.  The undersigned
hereby gives you notice pursuant to Section 2.2(a)
of the Credit Agreement that it requests:

      

        A
borrowing of
Loans                                             A
conversion or continuation of Loans

       

      on                                                                
(a Business Day),

      

      in the
amount of
$                                                                ,*

      

      comprised
of                                                                           
(Type of Loan requested),**

      

      with an
Interest Period
of                                           
months (for LIBOR Loans).***

      

      Please
deposit the requested Loan in our account with you [and then wire transfer
amounts from that account as follows:

      

      .]

      

      [Borrower
hereby certifies that the following statements are true and correct on the date
hereof, and will be true and correct on the Loan Date specified above after
giving effect to such Loan:  (a) all of the representations and
warranties of the Companies in the Loan Papers are true and correct in all
material respects (except to the extent that (i)
they speak to a specific date or (ii) the facts on which they are based have
been changed by transactions contemplated or permitted by the Credit Agreement);
and (b) no Material Adverse Event, Default, or Potential Default exists or will
result from the proposed funding of Loans requested herein.]****

      

      

      

      

      

      

      

      

      Very
truly yours,

      

      THE VAIL
CORPORATION

      (D/B/A
“VAIL ASSOCIATES, INC.”)

      

      

      By                                                                

      Name:                                                                

      Title:                                                                

      

      

      

      
        	
                     *

              	
                Not
      less than $500,000 or a greater integral multiple of $100,000 (if a Base
      Rate Loan); not less than $1,000,000 or a greater integral multiple of
      $100,000 (if a LIBOR Loan).

              

      

      

      
        	
                    **

              	
                LIBOR
      Loan or Base Rate Loan.

              

      

      

        ***           LIBOR
Loan -- 1, 2, 3 or 6 months.

      In no
event may the Interest Period end after the Termination Date.

      

      ****           Insert
paragraph for any Loan Notice provided prior to a borrowing of
Loans

      

      

      

      

      EXHIBIT
C-2

      

      SWING
LINE LOAN NOTICE

      

      ________________

      

      

      Bank of
America, N.A., as Administrative Agent

      

      

      Attn:           Arlene
Minor

      Fax:           214-290-9412

      

      Reference
is made to the Fourth Amended and Restated Credit Agreement dated as of
January 28, 2005 (as amended, supplemented or restated from time to time,
the “Credit
Agreement”), among THE VAIL CORPORATION, a Colorado corporation doing
business as “Vail Associates, Inc.”, the Lenders, and Bank of America, N.A., as
Administrative Agent for itself and the other Lenders.  Capitalized
terms used herein and not otherwise defined herein shall have the meanings
assigned to such terms in the Credit Agreement.  The undersigned
hereby gives you notice pursuant to Section 2.4(b)
of the Credit Agreement that it requests a Swing Line Loan:

      

      on                                                                
(a Business Day),

      

      in the
amount of
$                                                                                     *.

      

      Please
deposit the requested Loan in our account with you [and then wire transfer
amounts from that account as follows:

      .]

      

      [Borrower
hereby certifies that the following statements are true and correct on the date
hereof, and will be true and correct on the Loan Date specified above after
giving effect to such Loan:  (a) all of the representations and
warranties of the Companies in the Loan Papers are true and correct in all
material respects (except to the extent that (i)
they speak to a specific date or (ii) the facts on which they are based have
been changed by transactions contemplated or permitted by the Credit Agreement);
and (b) no Material Adverse Event, Default, or Potential Default exists or will
result from the proposed funding of Loans requested herein.]

      

      The Swing
Line Borrowing requested herein complies with the requirements of the provisos
to the first sentence of Section
2.4(a) of the Credit Agreement.

      

      Very
truly yours,

      

      THE VAIL
CORPORATION

      (D/B/A
“VAIL ASSOCIATES, INC.”)

      

      

      By                                                                

      Name:                                                                

      Title:                                                                

      

      

      
        	
                 
      

              	
                *  Not
      less than 1,000,000

              

      

      
        	
                 
      

              	 

      

      

      
 

      EXHIBIT
D

      

      COMPLIANCE
CERTIFICATE

      FOR
_______ENDED _______

      

      

      

      

      Bank of
America, N.A., as Administrative Agent

      901 Main
Street, 67th Floor

      Dallas,
Texas   75202

      
        	
                Attn:

              	
                Frank
      M. Johnson

              

      

      FAX:           214/209-0980

      

      

      

      Reference
is made to the Fourth Amended and Restated Credit Agreement dated as of
January 28, 2005 (as amended, supplemented or restated, the “Credit
Agreement”), among THE VAIL CORPORATION, a Colorado corporation doing
business as “Vail Associates, Inc.”, the Lenders, and Bank of America, N.A., as
Administrative Agent for itself and the other Lenders.  Unless
otherwise defined herein, all capitalized terms have the meanings given to such
terms in the Credit Agreement.

      

      This
certificate is delivered pursuant to Section
9.1 of the Credit Agreement.

      

      I certify
to Administrative Agent that I am the Chief Financial Officer of Borrower on the
date hereof and that:

      

      (i) The
financial statements attached hereto were prepared in accordance with GAAP
(except for the
omission of footnotes from financial statements delivered pursuant to Section
9.1(b) of the Credit Agreement) and present fairly, in all material
respects, the consolidated financial condition and results of operations of the
Companies as of, and for the ___________ended on, ________________ (the “Subject
Period”).

      

      (ii) During
the Subject Period, no Default or Potential Default has occurred which has not
been cured or waived (except for any Defaults set
forth on the attached schedule).

      

      (iii) Evidence
of compliance by Borrower with the covenants of Sections 10.8(m)
and 10.9(d)
and the financial covenants of Section 11
of the Credit Agreement as of the last day of the Subject Period, is set forth
on the attached calculation worksheet.

      

      

      Very
truly yours,

      

      

      

      Name:                                                                

      Chief
Financial Officer

      

      

      Annex A to Exhibit
D

      

      CREDIT
FACILITY COVENANTS CALCULATIONS

      

      Subject
Period:  ___________________, 200_

      

      
        	 
      	
                Months

                Ended - -

                 

              
	
                10.8(m)                        INVESTMENTS
      IN PERSONS

                 

              	 
      
	
                (i)Investments
      during Subject Period in Unrestricted Subsidiaries, Housing Districts and
      Metro Districts not otherwise permitted under Section
      10.8(j)(ii), and other Persons (other than Restricted Subsidiaries)
      involved in Similar Businesses:

                 

              	
                 

                 

                 

                $                         

              
	
                (ii)Investments
      during prior Subject Periods in Unrestricted Subsidiaries, Housing
      Districts and Metro Districts not otherwise permitted under Section
      10.8(j)(ii), and other Persons (other than Restricted Subsidiaries)
      involved in Similar Businesses:

                 

              	
                 

                 

                 

                $                         

              
	
                (iii)       Investments
      set forth on part
      (b) of Schedule
      10.8:

              	
                $                         

                 

              
	
                (iv)(10.8(m)(i)
      plus 10.8(m)(ii)
      plus 10.8(m)(iii)):

              	
                $                         

              
	 
      	 
      
	
                (v)        $75,000,000:

              	
                $75,000,000

                 

              
	
                (vi)           Book
      value of Total Assets:

              	
                $                         

              
	 
      	 
      
	
                             (vii)       10%
      of 10.8(m)(vi):

              	
                $                         

                 

              
	
                (viii)           Investment
      Limit (10.8(m)(v)
      plus 10.8(m)(vii)):

              	
                $                         

                 

              
	
                (ix)       Net
      reductions in investments permitted under Section
      10.8(m) in an aggregate amount not to exceed 10.8(m)(viii):

              	
                 

                $                         

                 

              
	
                (x)Maximum
      permitted investments in Unrestricted Subsidiaries, Housing Districts and
      Metro Districts not otherwise permitted under Section
      10.8(j)(ii), and other Persons (other than Restricted Subsidiaries)
      involved in Similar Businesses permitted after the Closing Date, and
      investments set forth on part (b)
      of Schedule
      10.8 (10.8(m)(viii)
      plus 10.8(m)(ix)):

                 

              	
                 

                 

                 

                 

                 

                $                         

              
	
                (xi)       Fair
      market value of all assets owned by Restricted Subsidiaries on the Closing
      Date which have been contributed to Unrestricted
Subsidiaries:

                 

              	
                 

                 

                $                         

              
	
                (xii)     Is
      10.8(m)(xi)
      less than $75,000,000?

              	
                Yes/No

              
	 
      	 
      
	
                (xiii)Are
      investments in Unrestricted Subsidiaries, Housing Districts and Metro
      Districts not otherwise permitted under Section
      10.8(j)(ii), and other Persons (other than Restricted Subsidiaries)
      involved in Similar Businesses, and investments set forth on part
      (b) of Schedule
      10.8 (10.8(m)(iv)), less
      than or equal to the maximum amount permitted (10.8(m)(x))?

                 

              	
                 

                 

                 

                 

                 

                Yes/No

              
	
                10.9(d)                      DISTRIBUTIONS,
      LOANS, ADVANCES, AND INVESTMENTS

                 

              	 
      
	
                (i)Distributions
      under Section
      10.9(d), and loans, advances, and investments made, which are not
      otherwise permitted under Section
      10.8 during Subject Period:

              	
                 

                 

                $                         

                 

              
	
                (ii)Distributions
      under Section
      10.9(d), and loans, advances, and investments made, which are not
      otherwise permitted under Section
      10.8 during prior Subject Periods:

              	
                 

                 

                $                         

                 

              
	
                (iii)Aggregate
      Distributions under Section
      10.9(d), and loans, advances, and investments made, which are not
      otherwise permitted under Section
      10.8 (the sum of 10.9(d)(i)
      plus 10.9(d)(ii)):

                 

              	
                 

                 

                $                         

              
	
                (iv)Cumulative
      Net Income of the Restricted Companies on a consolidated basis from the
      last day of the first fiscal quarter ending after the Closing
      Date:

                 

              	
                 

                 

                $                         

              
	
                (v)        To
      the extent SSI is not a Restricted Subsidiary, the percentage of the Net
      Income of SSI corresponding to the weighted average membership interest
      held by Borrower in SSI (expressed as a percentage) from the last day of
      the first fiscal quarter ending after the Closing Date:

              	
                 

                 

                 

                 

                $                         

                 

              
	
                (vi)       Aggregate
      cash contributed in the form of equity by the Restricted Companies to
      Non-Consolidated Entities in order to fund losses of such Non-Consolidated
      Entities from the last day of the first fiscal quarter ending after the
      Closing Date:

                 

              	
                 

                 

                 

                $                         

              
	
                (vii)      50%
      of the sum of 10.9(d)(iv)
      plus 10.9(d)(v)
      plus 10.9(d)(vi):

              	
                $                         

                 

              
	
                (viii)     Aggregate
      net cash proceeds received by the Restricted Companies  since
      the Closing Date from the issuance of Debt which constitutes “Permitted Debt” under
      clauses (d)
      and (g)
      of the definition thereof (excluding refinancings of Subordinated
      Debt):

              	
                 

                 

                 

                $                         

                 

              
	
                (ix)       Aggregate
      net cash proceeds received by VRI since the Closing Date from the issuance
      of Equity Interests to Persons (other than the issuance of Equity
      Interests to any Restricted Company and the issuance of any Disqualified
      Equity Interests):

                 

              	
                 

                 

                 

                $                         

              
	
                (x)The
      amount of Distributions made by the Companies pursuant Section
      10.9(h) (not to exceed $25,000,000):

              	
                 

                $                         

                 

              
	
                (xi)       Maximum
      permitted Distributions, loans, investments, and advances (the sum of
      10.9(d)(vii)
      plus
      10.9(d)(viii) plus 10.9(d)(ix)
      minus 10.9(d)(x)):

              	
                 

                 

                $                         

                 

              
	
                (xii)      Are
      aggregate Distributions under Section
      10.9(d), and loans, advances, and investments made, which are not
      otherwise permitted under Section
      10.8 (10.9(d)(iii))
      less than the maximum amount permitted (10.9(d)(xi))?

              	
                 

                 

                 

                Yes/No

              

      

      

      
        	 
      	
                Months

                Ended - -

                 

              
	
                11.1(a)                      RATIO
      OF FUNDED DEBT TO ADJUSTED EBITDA:

              	 
      
	
                (i)All
      obligations of the Companies for borrowed money:

              	
                $                         

              
	
                (ii)Minus all obligations of the Unrestricted
      Subsidiaries for borrowed money (the sum of items
      11.1(a)(ii)(A) through 11.1(a)(ii)(K)
      below):

                 

              	
                 

                 

                ($_____________ )

              
	
                (A)SSI
      Venture LLC (weighted average of the membership interest not held by a
      Company) (if SSI is not a Restricted Subsidiary)

              	
                 

                 

                ($_____________ )

              
	
                (B)Eagle
      Park Reservoir Company

              	
                ($_____________ )

              
	
                (C)Boulder/Beaver,
      LLC

              	
                ($_____________ )

              
	
                (D)Colter
      Bay Corporation

              	
                ($_____________ )

              
	
                (E)Gros
      Ventre Utility Company

              	
                ($_____________ )

              
	
                (F)Jackson
      Lake Lodge Corporation

              	
                ($_____________ )

              
	
                (G)Jenny
      Lake Lodge, Inc.

              	
                ($_____________ )

              
	
                (H)Forest
      Ridge Holdings, Inc.

              	
                ($_____________ )

              
	
                (I)Resort
      Technology Partners, LLC

              	
                ($_____________ )

              
	
                (J)RT
      Partners, Inc.

              	
                ($_____________ )

              
	
                (K)[List
      other Unrestricted Subsidiaries]

              	
                ($_____________ )

              
	 
      	 
      
	
                (iii)Plus the principal portion of all Capital
      Lease obligations of the Companies:

              	
                 

                $_____________

              
	
                 

                (iv)Minus the principal portion of the Capital
      Lease obligations for the following Unrestricted Subsidiaries (the sum of
      items 11.1(a)(iv)(A)
      through 11.1(a)(iv)(K)
      below):

                 

              	
                 

                 

                 

                ($____________)

              
	
                (A)SSI
      Venture LLC (weighted average of the membership interest not held by a
      Company) (if SSI is not a Restricted Subsidiary)

              	
                 

                 

                ($_____________ )

              
	
                (B)Eagle
      Park Reservoir Company

              	
                ($_____________ )

              
	
                (C)Boulder/Beaver,
      LLC

              	
                ($_____________ )

              
	
                (D)Colter
      Bay Corporation

              	
                ($_____________ )

              
	
                (E)Gros
      Ventre Utility Company

              	
                ($_____________ )

              
	
                (F)Jackson
      Lake Lodge Corporation

              	
                ($_____________ )

              
	
                (G)Jenny
      Lake Lodge, Inc.

              	
                ($_____________ )

              
	
                (H)Forest
      Ridge Holdings, Inc.

              	
                ($_____________ )

              
	
                (I)Resort
      Technology Partners, LLC

              	
                ($_____________ )

              
	
                (J)RT
      Partners, Inc.

              	
                ($_____________ )

              
	
                (K)[List
      other Unrestricted Subsidiaries]

                 

              	
                ($_____________ )

              
	
                             (v)        Plus reimbursement obligations and undrawn
      amounts under Bond

                                         L/Cs
      supporting Bonds (other than Existing Housing Bonds) issued

                                         by
      Unrestricted Subsidiaries:

              	
                 

                 

                $                         

                 

              
	
                (vi)Debt
      under Existing Housing Bonds:

              	
                $                         

              
	 
      	 
      
	
                (vii)Funded
      Debt of the Restricted Companies (11.1(a)(i)
      minus 11.1(a)(ii)
      plus 11.1(a)(iii)
      minus 11.1(a)(iv)
      plus 11.1(a)(v)
      minus 11.1(a)(vi)):

                 

              	
                 

                 

                $                         

              
	
                (viii)EBITDA
      of the Companies for the last four fiscal quarters:

              	
                $                         

                 

              
	
                 

                (ix)Plus insurance proceeds (up to a maximum of
      $10,000,000 in the aggregate for any fiscal year) received by the
      Restricted Companies under policies of business interruption insurance (or
      under policies of insurance which cover losses or claims of the same
      character or type):

              	
                 

                 

                 

                 

                 

                $                         

              
	
                 

                (x)Plus pro forma EBITDA for
      assets acquired during such period:

              	
                 

                $                         

              
	
                 

                (xi)Minus pro forma EBITDA for
      assets disposed of during such period:

              	
                 

                 

                ($_____________ )

              
	
                 

                (xii)Minus EBITDA for such period related to
      real estate activities:

              	
                 

                ($_____________ )

              
	
                 

                (xiii)Minus EBITDA for such period attributable
      to the following Unrestricted Subsidiaries (sum of items 11.1(a)(xiii)(A)
      through 11.1(a)(xiii)(K)
      below):

                 

              	
                 

                 

                 

                ($_____________ )

              
	
                (A)SSI
      Venture LLC (weighted average of the membership interest not held by a
      Company) (if SSI is not a Restricted Subsidiary)

              	
                 

                 

                ($_____________ )

              
	
                (B)Eagle
      Park Reservoir Company

              	
                ($_____________ )

              
	
                (C)Boulder/Beaver,
      LLC

              	
                ($_____________ )

              
	
                (D)Colter
      Bay Corporation

              	
                ($_____________ )

              
	
                (E)Gros
      Ventre Utility Company

              	
                ($_____________ )

              
	
                (F)Jackson
      Lake Lodge Corporation

              	
                ($_____________ )

              
	
                (G)Jenny
      Lake Lodge, Inc.

              	
                ($_____________ )

              
	
                (H)Forest
      Ridge Holdings, Inc.

              	
                ($_____________ )

              
	
                (I)Resort
      Technology Partners, LLC

              	
                ($_____________ )

              
	
                (J)RT
      Partners Inc.

              	
                ($_____________ )

              
	
                (K)[List
      other Unrestricted Subsidiaries]

              	
                ($_____________ )

              
	
                 

                (xiv)Resort
      EBITDA

                (the sum of items 11.1(a)(viii)
      plus 11.1(a)(ix)
      plus 11.1(a)(x)
      minus 11.1(a)(xi)
      minus 11.1(a)(xii)
      minus 11.1(a)(xiii)):

                 

              	
                 

                 

                 

                $                         

              
	
                (xv)EBITDA
      for the Subject Period related to real estate activities of the Restricted
      Companies in an amount not greater than 33% of the Adjusted
      EBITDA:

                 

              	
                 

                 

                $                         

              
	
                (xvi)Adjusted
      EBITDA

                (11.1(a)(xiv)
      plus 11.1(a)(xv)):

                 

              	
                 

                $                         

              
	
                (xvii)Ratio
      of Funded Debt to Adjusted EBITDA

                (Ratio of 11.1(a)(vii)
      to 11.1(a)(xvi)):

              	 
      
	
                 

                (xviii)Maximum
      ratio of Funded Debt to Adjusted EBITDA permitted:

              	 
      
	
                 

                As
      of the last day of each fiscal quarter ending January 31, April 30 and
      July 31:

              	
                 

                 

                4.50
      : 1.00

              
	
                 

                As
      of the last day of each fiscal quarter ending October 31:

                 

              	
                 

                5.00
      : 1.00

              
	
                (xix)Is
      the ratio of Funded Debt to Adjusted EBITDA less than the maximum ratio
      permitted?

              	
                 

                Yes/No

              
	
                 

                11.1(b)                      RATIO
      OF SENIOR DEBT TO ADJUSTED EBITDA:

              	 
      
	 
      	 
      
	
                (i)Funded
      Debt of the Restricted Companies (11.1(a)(vii)):

                 

              	
                $                         

              
	
                (ii)Minus Subordinated Debt of the Restricted
      Companies:

                 

              	
                ($_____________ )

              
	
                (iii)Senior
      Debt of the Restricted Companies (11.1(b)(i)
      minus 11.1(b)(ii)):

              	
                 

                $                         

              
	
                 

                (iv)Adjusted
      EBITDA of the Restricted Companies (11.1(a)(xvi)):

                 

              	
                 

                $                         

              
	
                (v)           Ratio
      of Senior Debt to Adjusted EBITDA

                (Ratio of 11.1(b)(iii)
      to 11.1(b)(iv)):

                 

              	 
      
	
                (vi)Maximum
      ratio of Senior Debt to Adjusted EBITDA permitted:

              	 
      
	 
      	 
      
	
                For
      each fiscal quarter ending January 31, April 30 and July
    31:

              	
                3.25
      : 1.00

              
	
                 

                As
      of the last day of each fiscal quarter ending October 31:

                 

              	
                 

                3.50
      : 1.00

              
	
                (vii)Is
      the ratio of Senior Debt to Adjusted EBITDA less than the maximum ratio
      permitted?

              	
                 

                Yes/No

              
	
                 

                11.2           MINIMUM
      FIXED CHARGE COVERAGE RATIO:

              	 
      
	 
      	 
      
	
                (a)Adjusted
      EBITDA for the last four fiscal quarters (11.1(a)(xvi)):

                 

              	
                $                         

              
	
                (b)Minus cash income Taxes paid (adjusted for
      any Tax refunds received with respect thereto):

                 

              	
                 

                ($ )

              
	
                (c)Minus “Required Capital Expenditures” (as
      defined in Section
      1.1 of the Credit Agreement) for such period:

              	
                 

                ($30,000,000)

              
	
                 

                (d)Coverage

                (11.2(a)
      minus 11.2(b)
      minus 11.2(c)):

                 

              	
                 

                 

                $                         

              
	
                (e)Interest
      and principal on the Obligation and other Funded Debt for the last four
      fiscal quarters:

                 

              	
                 

                $                         

                 

              
	
                (f)         Minus amortization of deferred financing
      costs and original issue discounts:

              	
                 

                $                         

                 

              
	
                (g)Plus Distributions (other than of stock)
      made by VRI during such period:

                 

              	
                 

                $                         

              
	
                (h)           Fixed
      Charges

                (11.2(e)
      minus 11.2(f)
      plus 11.2(g)):

                 

              	
                 

                $                         

              
	
                (i)Fixed
      Charge Coverage Ratio

                (Ratio of 11.2(d)
      to 11.2(h)):

                 

              	 
      
	
                (j)Minimum
      required Fixed Charge Coverage Ratio:

                 

              	
                1.25
      : 1.00

              
	
                (k)Does
      the Fixed Charge Coverage Ratio exceed the minimum ratio
      permitted?

              	
                 

                Yes/No

              
	
                 

                11.3           MINIMUM
      NET WORTH:

                 

              	 
      
	
                (a)Shareholders’
      Equity determined in accordance with GAAP:

                 

              	
                $                         

              
	
                (b)$414,505,800:

                 

              	
                $414,505,800

              
	
                (c)Restricted
      Companies’ Net Income, if positive, for each fiscal year completed after
      October 31, 2004:

                 

              	
                 

                $                         

              
	
                (d)75%
      of the total from 11.3(c):

                 

              	
                $                         

              
	
                (e)Net
      Proceeds received by any Restricted Company (other than from another
      Company) from the offering, issuance, or sale of equity securities of a
      Restricted Company afterOctober 31, 2004:

                 

              	
                 

                 

                $                         

              
	
                (f)Minimum
      shareholders’ equity permitted

                (11.3(b)
      plus 11.3(d)
      plus 11.3(e)):

                 

              	
                 

                $                         

              
	
                (g)Does
      Shareholders’ Equity exceed the minimum permitted?

              	
                Yes/No

              
	
                11.4           INTEREST
      COVERAGE RATIO

              	 
      
	
                (a)Adjusted
      EBITDA for the last four fiscal quarters (11.1(a)(xvi)):

              	
                $                         

              
	
                 

                (b)Interest
      on Funded Debt for the last four fiscal quarters:

              	
                 

                $                         

                 

              
	
                (c)        Amortization
      of deferred financing costs and original issue discounts:

              	
                 

                $                         

              
	
                 

                (d)        11.4(b)
      minus 11.4(c):

              	
                 

                $                         

              
	
                 

                (e)           Interest
      Coverage Ratio (Ratio of 11.4(a)
      to 11.4(d)):

              	 
      
	
                 

                (f)           Minimum
      Interest Coverage Ratio permitted:

              	
                 

                2.50
      : 1.00

              
	
                 

                (g)Does
      the Interest Coverage Ratio exceed the minimum ratio
      permitted?

              	
                 

                 

                Yes/No

              
	
                 

                11.5           CAPITAL
      EXPENDITURES

              	 
      
	
                 

                (a)Aggregate
      capital expenditures of the Restricted Companies in the ordinary course of
      the business (excluding (i) normal replacements and maintenance which are
      properly charged to current operations, and (ii) such expenditures
      relating to real estate held for resale) during each fiscal
      year:

              	
                 

                 

                 

                 

                 

                $                         

              
	
                 

                (b)Total
      Assets of the Restricted Companies as of the last day of the fiscal
      year:

              	
                 

                 

                $                         

              
	
                 

                (c)Maximum
      capital expenditures permitted (10% of Total Assets of the Restricted
      Companies set forth in 11.5(b)):

                 

              	
                 

                 

                $                         

              
	
                (d)Are
      aggregate capital expenditures less than the maximum amount
      permitted?

              	
                 

                Yes/No

              
	 
      	 
      
	
                LETTERS
      OF CREDIT

              	 
      
	 
      	 
      
	
                Set
      forth on Schedule
      1 attached hereto is a list of all issued and outstanding letters
      of credit issued for the account of any of the Companies, and the drawn
      and undrawn amounts thereunder

              	 
      

      

      

      
        
          
            
              H-523927.7                                                   Annex
A/Page 

            

             

          

          
             

            
              

            

          

          
             

          

        

      

      

      EXHIBIT
E

      

      ASSIGNMENT
AND ASSUMPTION AGREEMENT

      

      This Assignment and Assumption (this
“Assignment
and Assumption”) is dated as of the Effective Date set forth below and is
entered into by and between [Insert name of Assignor]
(the “Assignor”)
and [Insert name of
Assignee] (the “Assignee”).  Capitalized
terms used but not defined herein shall have the meanings given to them in the
Credit Agreement identified below  (the “Credit
Agreement”), receipt of a copy of which is hereby acknowledged by the
Assignee.  The Standard Terms and Conditions set forth in Annex 1
attached hereto are hereby agreed to and incorporated herein by reference and
made a part of this Assignment and Assumption as if set forth herein in
full.

      

      For an agreed consideration, the
Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee
hereby irrevocably purchases and assumes from the Assignor, subject to and in
accordance with the Standard Terms and Conditions and the Credit Agreement, as
of the Effective Date inserted by Administrative Agent as contemplated below:
(a) all of the Assignor’s Rights and obligations in its capacity as a
Lender under the Credit Agreement and any other documents or instruments
delivered pursuant thereto to the extent related to the amount and percentage
interest identified below of all of such outstanding Rights and obligations of
the Assignor under the respective facilities identified below (including,
without limitation, the L/Cs and the Swing Line Loans included in such
facilities); and (b) to the extent permitted to be assigned under
applicable Law, all claims, suits, causes of action and any other Right of the
Assignor (in its capacity as a Lender) against any Person, whether known or
unknown, arising under or in connection with the Credit Agreement, any other
documents or instruments delivered pursuant thereto or the loan transactions
governed thereby or in any way based on or related to any of the foregoing,
including, but not limited to, contract claims, tort claims, malpractice claims,
statutory claims and all other claims at Law or in equity related to the Rights
and obligations sold and assigned pursuant to clause (i)
above (the Rights and obligations sold and assigned pursuant to clauses (i)
and (ii) above
being referred to herein collectively as, the “Assigned
Interest”).  Such sale and assignment is without recourse to
the Assignor and, except as expressly provided in this Assignment and
Assumption, without representation or warranty by the Assignor.

      

      1.           Assignor:                                ______________________________

      

      2.           Assignee:                                ______________________________

      [Assignee is an Affiliate/Approved
Fund of [identify Lender]] 3

      

      3.           Borrower:                                The
Vail Corporation (d/b/a “Vail Associates, Inc.”)

      

      
        	
                 
      

              	
                4.

              	
                Administrative
      Agent:Bank of America, N.A., as administrative agent under the Credit
      Agreement

              

      

      

      
        	
                 
      

              	
                5.

              	
                Credit
      Agreement:

              	
                Fourth
      Amended and Restated Credit Agreement dated as of January 28, 2005,
      among The Vail Corporation (d/b/a “Vail Associates, Inc.”), Lenders party
      thereto, Bank of America, N.A., as Administrative Agent, and the other
      agents party thereto

              

      

      
        	
                 
      

              	
                6.

              	
                Assigned
      Interest

              

      

      

      
        	
                Facility/Subfacility
      Assigned

              	
                Aggregate
      Amount of Commitments/Loans for all Lenders under such
      Facility/Subfacility4

              	
                Amount
      of Commitments /Loans Assigned under such Facility/Subfacility2

              	
                Percentage
      Assigned of Commitments/Loans5

              
	 
      	
                $

              	
                $

              	
                %

              
	 
      	
                $

              	
                $

              	
                %

              
	 
      	
                $

              	
                $

              	
                %

              

      

      

      7.           Trade
Date:                                ______________6

      

      Effective
Date:   _____________ ___, 20___ [TO BE INSERTED BY
ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF
TRANSFER IN THE REGISTER THEREFOR.]

      

      

        

      

        
        3
Select or delete as applicable.

        
        4 Amount to be adjusted by the
counterparties to take into account any payments or prepayments made between the
Trade Date and the Effective Date.

        
        5 Set forth to at least 9 decimals as a
percentage of the Commitments/Loans of all Lenders under such
Facility/Subfacility.

        
        6 To be completed if the Assignor and
the Assignee intend that the minimum assignment amount is to be determined as of
the Trade Date.

      

      The terms
set forth in this Assignment and Assumption are hereby agreed to:

      

      ASSIGNOR:

      

      [Name of
Assignor]

      

      

      By:            

      Name:

      Title:

      

      

      ASSIGNEE:

      

      [Name of
Assignee]

      

      

      By:            

      Name:

      Title:

       
 

      

      Consented
to and Accepted:

      

      BANK OF
AMERICA, N.A., as Administrative Agent

      

      

      

      By:           

      Name:

      Title:

      

      

      Consented
to:

      

      L/C
ISSUER:

      

      

      

      

      By:           

      Name:

      Title:

      

      L/C
ISSUER:

      

      

      

      

      By:           

      Name:

      Title:

      

      SWING
LINE LENDER:

      

      

      

      

      By:           

      Name:

      Title:

      

      SWING
LINE LENDER:

      

      

      

      

      By:           

      Name:

      Title:

      

      

      ANNEX
1 TO ASSIGNMENT AND ASSUMPTION AGREEMENT

      

      STANDARD
TERMS AND CONDITIONS FOR

      ASSIGNMENT
AND ASSUMPTION

      

      1. Representations and
Warranties.

      

      1.1 Assignor.  The
Assignor: (a) represents and warrants that: (i) it is the legal and
beneficial owner of the Assigned Interest; (ii) the Assigned Interest is
free and clear of any Lien, encumbrance or other adverse claim; and
(iii) it has full power and authority, and has taken all action necessary,
to execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby; and (b) assumes no responsibility with
respect to: (i) any statements, warranties or representations made in or in
connection with the Credit Agreement or any other Loan Paper; (ii) the
execution, legality, validity, enforceability, genuineness, sufficiency or value
of the Loan Papers or any collateral thereunder; (iii) the financial
condition of Borrower, any of its Subsidiaries or Affiliates or any other Person
obligated in respect of any Loan Paper; or (iv) the performance or
observance by Borrower, any of its Subsidiaries or Affiliates or any other
Person of any of their respective obligations under any Loan Paper.

      

      1.2 Assignee.  The
Assignee: (a) represents and warrants that: (i) it has full power and
authority, and has taken all action necessary, to execute and deliver this
Assignment and Assumption and to consummate the transactions contemplated hereby
and to become a Lender under the Credit Agreement; (ii) it meets all
requirements of an Eligible Assignee under the Credit Agreement (subject to
receipt of such consents as may be required under the Credit Agreement); (iii)
from and after the Effective Date, it shall be bound by the provisions of the
Credit Agreement as a Lender thereunder and, to the extent of the Assigned
Interest, shall have the obligations of a Lender thereunder; (iv) it has
received a copy of the Credit Agreement, together with copies of the most recent
financial statements delivered pursuant to Section 9.1(a) and 9.1(b)
thereof, as applicable, and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
this Assignment and Assumption and to purchase the Assigned Interest on the
basis of which it has made such analysis and decision independently and without
reliance on Administrative Agent or any other Lender; and (v) if it is a
Foreign Lender, attached to the Assignment and Assumption is any documentation
required to be delivered by it pursuant to the terms of the Credit Agreement,
duly completed and executed by the Assignee; and (b) agrees that:
(i) it will, independently and without reliance on Administrative Agent,
the Assignor or any other Lender, and based on such documents and information as
it shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under the Loan Papers; and (ii) it will
perform in accordance with their terms all of the obligations which by the terms
of the Loan Papers are required to be performed by it as a Lender.

      

      2. Payments.    From
and after the Effective Date, Administrative Agent shall make all payments in
respect of the Assigned Interest (including payments of principal, interest,
fees and other amounts) to the Assignor for amounts which have accrued to but
excluding the Effective Date and to the Assignee for amounts which have accrued
from and after the Effective Date.

      

      3. General Provisions. This
Assignment and Assumption shall be binding upon, and inure to the benefit of,
the parties hereto and their respective successors and assigns.  This
Assignment and Assumption may be executed in any number of counterparts, which
together shall constitute one instrument.  Delivery of an executed
counterpart of a signature page of this Assignment and Assumption by telecopy
shall be effective as delivery of a manually executed counterpart of this
Assignment and Assumption.  This Assignment and Assumption shall be
governed by, and construed in accordance with, the Law of the State of New
York.

      1. 

      

      EXHIBIT
F-1

      

      PLEDGE
AGREEMENT

      

      

      THIS
PLEDGE AGREEMENT (the “Agreement”)
is entered into as of ___________, between _____________________, a
_____________ _____________ (with its successors, “Debtor”)
and BANK OF AMERICA, N.A., a national banking association, as
Administrative Agent for the ratable benefit of the Lenders (“Secured
Party”).

      

      A. The Vail
Corporation, a Colorado corporation doing business as “Vail Associates, Inc.”
(the “Borrower”),
the various financial institutions party to the Credit Agreement (defined
below) (collectively, and as they may change from time to time in accordance
with the terms of the Credit Agreement, the “Lenders”),
and Secured Party, have entered into that certain Fourth Amended and Restated
Credit Agreement dated as of January 28, 2005 (as amended, restated or
supplemented from time to time, the “Credit
Agreement”).

      

      B. Under the
terms of the Credit Agreement, the Lenders have agreed, from time to time, to
make loans to the Borrower and issue letters of credit for the
account of Borrower.

      

      C. Debtor is
an Affiliate of Borrower.  Borrower and Debtor are engaged in the same
or substantially similar or related lines of business, have close business and
financial transactions and connections with each other, and use common
senior management and executive personnel and overall planning
programs.  The Credit Agreement will be a material benefit to the
Debtor and Borrower and will result in direct business benefits to
the Debtor.  

      

      D. Debtor
has executed a Guaranty in favor of Secured Party, for the benefit of Lenders,
guaranteeing the Obligation under, and as defined in, the Credit Agreement
(as amended, restated or supplemented from time to time, the “Guaranty”).

      

      E. [The
execution and delivery of this Agreement is an integral part of the transactions
contemplated by the Loan Papers and is a condition precedent to Lenders’
obligations to extend credit under the Credit Agreement.]7  [Debtor is required to deliver this
Agreement pursuant to Section
[9.10] [9.11] of
the Credit Agreement.]8

      

      NOW
THEREFORE, in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

      

      1. Definitions.  As
used in this Agreement, “Borrower,”
“Credit
Agreement,” “Debtor,”
“Guaranty,”
“Lenders,”  and
“Secured
Party” have the respective meanings indicated above.  Other
capitalized terms used, but not defined, in this Agreement and which are defined
in the Credit Agreement, have the respective meanings given them in the Credit
Agreement.  Except as otherwise defined in this Agreement or in the
Credit Agreement, all terms used in this Agreement which are defined in the UCC
(as defined below and as in effect on the date of this Agreement) shall have the
respective meanings given them in Articles 8 and 9 of the UCC.  In
addition, as used in this Agreement:

      

      

        

      

        
        7 Use
if the Guaranty is required to be delivered on the Closing Date.

        
        8 Use
if the Guaranty is required to be delivered pursuant to Sections 9.10 or 9.11 of
the Credit Agreement.

      

      Collateral
means all of the property referred to in Section
3(a).

      

      Issuer
means an issuer of Pledged Securities.

      

      Partnership
Agreements means (a) those agreements listed on Annex A
attached hereto and incorporated herein by reference (together with any
modifications, amendments, or restatements thereof), and (b) partnership
agreements or joint venture agreements for any of the partnerships or joint
ventures described in clause (b)
of the definition of “Partnerships” below
(together with any modifications, amendments or restatements thereof), and Partnership
Agreement means one of the Partnership Agreements.

      

      Partnership
Interests means all of Debtor’s Right, title and interest now or
hereafter accruing under the Partnership Agreements with respect to all
distributions, allocations, proceeds, fees, preferences, payments, or other
benefits, which Debtor now is or may hereafter become entitled to receive with
respect to such interests in the Partnerships and with respect to the repayment
of all loans now or hereafter made by Debtor to the Partnerships.

      

      Partnerships
means (a) those partnerships and joint ventures listed on Annex A
attached hereto and incorporated herein by reference, as such partnerships exist
or may hereinafter be restated, amended, or restructured, (b) any
partnership or joint venture in which Debtor shall, at any time, become a
limited or general partner or venturer, or (c) any partnership, joint
venture, or corporation formed as a result of the restructure, reorganization,
or amendment of the Partnerships.

      

      Person
means any individual, trustee, corporation, general partnership, limited
partnership, limited liability company, joint stock company, trust,
unincorporated organization, bank, business association, firm, joint venture or
Tribunal.

      

      Pledged
Securities means (a) the Securities identified on Annex A
(and the certificates or instruments, if any representing such Securities), (b)
Securities issued to Debtor by any Issuer listed on Annex A or
any other Person which becomes a Restricted Subsidiary, (c) any additional or
substitute Securities issued to Debtor by any Issuer listed on Annex A or
any other Person which becomes a Restricted Subsidiary after the date of this
Agreement, and (d) all Securities required to be included in this
definition pursuant to the provisions of Section
2(b)(vi).

      

      Proceeds
means all proceeds of, and all other profits, products, rentals and receipts, in
whatever form, arising from the collection, sale, lease, exchange,
assignment, licensing or other disposition of, or other realization
upon, the Collateral, whether now existing or hereafter
arising.

      

      Secured
Obligation means (a) all obligations of Debtor under the Guaranty or this
Agreement, and (b) all present and future indebtedness, obligations and
liabilities, absolute or contingent, whether voluntary or involuntary, due or
not due, incurred directly or indirectly, or acquired by a Lender by assumption
or otherwise (including, without limitation, interest accruing after the
maturity of such debts, obligations or liabilities), and all renewals, increases
and extensions thereof, or any part thereof, now or hereafter owed to Secured
Party or Lenders by Borrower under the Loan Papers to which it is a party
(including the “Obligation” as defined in the
Credit Agreement), together with all interest accruing
thereon, fees, costs and expenses (including, without limitation, (i)
all Attorney Costs incurred in the enforcement or collection thereof
payable under the Loan Papers, or in connection with the protection of
Rights under, the Loan Papers to which Borrower is a party, and (ii)
amounts that would become due but for operation of Section 502, 506 or
any other applicable provision of Title 11 of the United States Code), together
with all pre- and post-maturity interest thereon (including,
without limitation, all post-petition interest if Debtor or Borrower voluntarily
or involuntarily files for bankruptcy protection, whether or not a claim for
post-filing or post-petition interest is allowed in such bankruptcy proceeding)
and any and all costs, Attorney Costs and expenses reasonably incurred by
Secured Party or any Lender to enforce payment of any of the foregoing
indebtedness.

      

      Security
means (a) a share of capital stock issued by a Person, (b) a membership interest
issued by a Person, and (c) any other equity, ownership, or voting interest
issued by a Person, and “Securities”
means more than one Security.

      

      Security
Interests means the security interests granted under this Agreement
securing the Secured Obligation.

      

      UCC means
the Uniform Commercial Code as in effect from time to time in any applicable
jurisdiction.

      

      2. Representations, Warranties
and Certain Agreements.

      

      (a) Debtor
represents and warrants as follows:

      

      (i) Debtor
has good title to all of the Collateral purported to be owned by it,
free and clear of any Liens (other than Permitted Liens), and will
keep the Collateral free and clear of all Liens (other than Permitted Liens).
The Pledged Securities described on Annex A
include all Securities issued by each such Issuer to Debtor.  All of
the Pledged Securities have been duly authorized and validly issued, are
fully paid and non-assessable, and are subject to no option to
purchase or similar Rights of any Person.  As of the date of this
Agreement, Debtor is not a party to or otherwise bound by any
agreement (other than
this Agreement) which restrict in any manner the Rights of any present
or future holder of any of the Pledged Securities with respect to transfers
thereof or payments of dividends thereon.  The Pledged Securities are
not subject to any restrictions on transfer or manner of sale, any holding
period or any notice requirements, other than restrictions and requirements
under applicable securities Laws.

      

      (ii) Each
Partnership issuing a Partnership Interest is duly organized, currently
existing, and in good standing under all applicable Laws; there have been no
amendments, modifications, or supplements to any agreement or certificate
creating any Partnership or any material contract relating to the Partnerships,
of which Secured Party has not been advised in writing; no default or breach or
potential default or breach has occurred and is continuing under any Partnership
Agreement; and no approval or consent of the partners of any Partnership is
required as a condition to the validity and enforceability of the Security
Interest created hereby or the consummation of the transactions contemplated
hereby which has not been duly obtained by Debtor.  Debtor has good
title to the Partnership Interests free and clear of all Liens and encumbrances
(except for the
Security Interest granted hereby).  The Partnership Interests are
validly issued, fully paid, and nonassessable and are not subject to statutory,
contractual, or other restrictions governing their transfer, ownership, or
control, except as set
forth in the applicable Partnership Agreements or applicable securities
Laws.  All capital contributions required to be made by the terms of
the Partnership Agreements for each Partnership have been made.

      

      (iii) Contemporaneously
with the execution and delivery of this Agreement, Debtor has delivered to
Secured Party the Pledged Securities described on Annex
A.  No Collateral is in the possession of any Person
asserting any claim thereto or security interest therein that is
not permitted under the Loan Papers, except that Secured Party or
its designee may have possession of the Collateral.

      

      (iv) Assuming
that Secured Party is in continuous possession of the Pledged
Securities, the Security Interests will constitute valid and perfected
security interests in the Pledged Securities prior to all other
Liens.  Appropriate financing statements have been filed
in the necessary jurisdictions with respect to all other Collateral,
and the Security Interests, to the extent they may be perfected by filing
financing statements in the necessary jurisdictions, constitute valid and
continuing perfected security interests in such other Collateral to the
extent a security interest can be created therein under the UCC,
securing the payment of the Secured Obligation.  All other actions
necessary to perfect the Security Interests in each item of such Collateral have
been duly taken to the extent a security interest can be created therein under
the UCC as in effect in the applicable jurisdictions of the United
States.

      

      (v) Debtor’s
exact legal name is correctly set forth on the signature page
hereof.  Debtor will provide Secured Party with at least thirty (30)
days prior written notice of any change in Debtor’s name or
identity.

      

      (vi) Debtor’s
chief executive office is, and has been for the four-month period preceding the
date hereof (or, if less, the entire period of the existence of Debtor), located
in the state specified on the signature page hereof.  In addition,
Debtor is an organization of the type and (if not an unregistered entity) is
incorporated in or organized under the Laws of the state specified on such
signature page.

      

      (b) Debtor
agrees as follows:

      

      (i) Debtor
shall, at Debtor’s expense, take all actions necessary or advisable from time to
time to maintain the first priority and perfection of said security interest and
shall not take any actions that would alter, impair or eliminate said priority
or perfection.  Debtor will not change the location of its chief
executive office or chief place of business or change its jurisdiction of
organization unless it shall have given Secured Party at least thirty (30) days
prior notice thereof and (at Debtor’s cost and expense) delivered an
opinion of counsel with respect thereto prior to taking such action in customary
form confirming the continued validity and perfection under the UCC (to the
extent such Security Interests may be perfected under the UCC) of the
Security Interests (which opinion may contain such exceptions and
assumptions as are customary in a legal opinion of
such type).  Debtor shall at all times maintain its chief
executive office within one of the 48 contiguous states in which Article 9
of the UCC is in effect.  Debtor shall not in any event change
the location of any Collateral if such change would cause the
Security Interests in such Collateral to lapse or cease to be perfected
unless prior to taking such action it shall have taken such actions as may
be necessary to prevent such lapse in perfection or failure to be
perfected.

      

      (ii) Debtor
shall (A) do or cause to be done all things necessary or appropriate to
keep the Partnerships in full force and effect and the Rights of Debtor and
Secured Party thereunder unimpaired; (B) except as expressly permitted by the
Credit Agreement, not consent to any Partnership selling, leasing, or
disposing of substantially all of its assets in a single transaction or a series
of transactions; (C) notify Secured Party of the occurrence of any default
or breach under any contract or agreement creating or relating to the
Partnerships; (D)  except as permitted by the Credit Agreement, not
transfer, sell, or assign any of the Partnership Interests or any part thereof;
(E)  pledge hereunder, immediately upon Debtor’s acquisition (directly or
indirectly) thereof, any and all additional Partnership Interests of any
Partnership granted to Debtor; and any and all additional shares of stock or
other securities of each; (F) deliver to Secured Party a fully-executed
Acknowledgment of Pledge, substantially in the form of Annex B,
for each Partnership Interest; and (G) take any commercially reasonable
action necessary, required, or requested by Secured Party to allow Secured Party
to fully enforce its Security Interest in the Partnership Interests, including,
without limitation, the filing of any claims with any court, liquidator,
trustee, custodian, receiver, or other like person or party.

      

      (iii) Debtor
may not change its name or corporate structure in any manner unless
it shall have given Secured Party prior notice thereof and delivered
an opinion of counsel in customary form with respect thereto prior to taking
such action confirming the continued validity and perfection under the
UCC (to the extent such Security Interests may be perfected under the UCC)
of the Security Interests (which opinion may contain such exceptions and
assumptions as are customary in a legal opinion of such type).

      

      (iv) Debtor
shall keep full and accurate books and records relating to the
Collateral, and stamp or otherwise mark such books and records in such
manner as Required Lenders may reasonably require in order to reflect the
Security Interests.

      

      (v) Debtor
agrees to pay prior to delinquency all taxes, charges, Liens and assessments
against the Collateral, other than taxes, charges and assessments which are
being contested in good faith by lawful proceedings diligently conducted,
against which reserve or other provision required by GAAP has been made; and,
except as otherwise provided herein, upon the failure of Debtor to do so,
Secured Party may pay any of them in such amount as it reasonably deems
necessary to discharge the same.

      

      (vi) The
Pledged Securities will at all times include not less than the percentage
of the issued and outstanding Securities of each Issuer shown on Annex A,
except to the extent any such Pledged Security shall have been released in
accordance with the provisions of Section 11 below.

      

      (vii) Debtor
shall not become a party to any agreement prohibited by the fourth
sentence of Section
2(a)(i).

      

      (viii) Debtor
shall promptly notify Secured Party in writing in the event that any of the
representations and warranties set forth herein is no longer true and
correct.

      

      3. The Security
Interests.

      

      (a) Debtor,
to secure the full and punctual payment and performance of the Secured
Obligation, and to induce Lenders to extend Debt under the Credit Agreement,
hereby irrevocably and unconditionally grants to Secured Party, for the
benefit of Lenders, a continuing first priority security interest in
and to all of the following property, whether now owned or existing or
hereafter acquired or arising and regardless of where located (collectively, the
“Collateral”):

      

      (i) all books
and records of Debtor pertaining to any of the property described in
this Section
3(a);

      

      (ii) the
Pledged Securities owned or held by Debtor and all of its Rights and
privileges with respect thereto, including, without limitation, all
dividends, interest, principal and other payments and distributions made
upon or with respect to the Pledged Securities;

      

      (iii) the
Partnership Interests and all Rights of Debtor with respect thereto, including,
without limitation, all Partnership Interests set forth on Annex A
and all of Debtor’s distribution Rights, income Rights, liquidation interest,
accounts, contract Rights, general intangibles, notes, instruments, drafts, and
documents relating to the Partnership Interests; and

      

      (iv) all
Proceeds of all or any of the property described in clauses
(i), (ii), and
(iii) of
this Section 3(a)
to the extent that such Proceeds consist of cash or other property which
would constitute Collateral pursuant to such clauses
(i), (ii) and
(iii).

      

      (b) The
Security Interests are granted as security only and shall not subject Secured
Party to, or transfer or in any way affect or modify, any obligation
or liability of the undersigned with respect to any of the Collateral
or any transaction in connection therewith.

      

      4. Delivery of Pledged
Securities.  If at any time or from time to time after the date
of this Agreement Debtor shall receive any Security required to be
pledged hereunder, it shall promptly:

      

      (a) deliver
to Secured Party the certificate or other instrument evidencing each such
Security, accompanied by control letters and stock powers or  any
other instruments of transfer or assignment duly executed in blank, to be
held by Secured Party for the benefit of Lenders as collateral for the
Secured Obligation in accordance with this agreement; and

      

      (b) execute,
deliver, file and record any and all instruments, assignments, agreements,
financing statements and other documents necessary, to the extent
determined by and in form and substance satisfactory to Secured Party in
its reasonable judgment, to perfect or continue the perfection
of a security interest in such stock for the benefit of
Lenders.

      

      5. General
Authority.  Debtor hereby irrevocably appoints Secured Party
its true and lawful attorney, with full power of substitution, in the name
of the Debtor, Secured Party, Lenders, or otherwise, for the sole use and
benefit of Secured Party and Lenders, but at Debtor’s expense, to the extent
permitted by Law to exercise, at any time and from time to time while
a Default exists, all or any of the following powers (in addition
to the powers specified in the Credit Agreement) with respect to all
or any of the Collateral, but only to the extent directed to do so by
Required Lenders:

      

      (a) to ask
for, demand, sue for, collect, endorse, receive, receipt and give acquittance
for any and all moneys due or to become due thereon or by virtue
thereof;

      

      (b) to
commence, settle, compromise, compound, adjust, prosecute or defend any claim,
suit, action or proceeding with respect thereto;

      

      (c)  to
exercise as to the Collateral all Rights, powers and remedies of an owner
necessary to exercise its Rights under this Agreement, including, without
limitation, the Right to sell, transfer, assign or otherwise deal in or with the
same or any party thereof or the Proceeds or avails
thereof; 

      

      (d) to extend
the time of payment of any or all thereof and to make any allowance and
other adjustments with reference thereof;

      

      (e) to
insure, process and preserve the Collateral;

      

      (f) to
participate in any recapitalization, reclassification, reorganization,
consolidation, redemption, stock split, merger or liquidation of any issuer of
the Pledged Securities, and in connection therewith to deposit or surrender
control of the Collateral, accept money or other property in exchange for the
Collateral, and to take such action as it deems proper in connection therewith,
and any money or property received on account of or in exchange for the
Collateral shall be applied to the Secured Obligation or held by Secured Party
thereafter as Collateral pursuant to the provisions hereof; and

      

      (g) to obtain
from any custodian or securities intermediary (if any) holding the Collateral
all information with respect to the Collateral, without any further consent of
or notice to Debtor;

      

      provided, however, that
Secured Party shall give Debtor not less than ten days prior written notice of
the time and place of any sale or other intended disposition of any of
the Collateral pursuant to clause (c)
of this Section 5
and that Debtor agrees that such notice shall constitute “reasonable notice”
thereof.  The foregoing appointments shall be deemed coupled with an
interest of Secured Party and shall not be revoked without Secured Party’s
written consent.  To the extent permitted by Law, Debtor hereby
ratifies all said attorney-in-fact shall lawfully do by virtue
hereof.

      

      6. Record Ownership of Pledged
Securities and Partnership Interests; Notices.

      

      (a) While a
Default exists, Secured Party may at any time or from time to time at the
direction of Required Lenders, cause any or all of the Pledged
Securities and Partnership Interests to be transferred of record
into the name of Secured Party or its nominee.  If Secured
Party transfers any Pledged Security or Partnership Interest into its
name or the name of its nominee, Secured Party will thereafter
promptly give Debtor copies of any notices and communications received
by Secured Party with respect to any Pledged Security and Partnership
Interests.  If such Default is cured or waived, Secured
Party shall then cause any Pledged Security and Partnership Interest so
transferred into its name to be transferred into Debtor’s
name.

      

      (b) If a
Default exists, Debtor will promptly give to Secured Party copies of any notices
and communications received by it with respect to any Pledged Security or
Partnership Interest.

      

      7. Right to Receive
Distributions on Pledged Securities and Partnership
Interests.

      

      (a) While a
Default exists, Secured Party shall have the Right to receive and retain as
additional security hereunder all dividends, interest, principal and other
payments and distributions made upon or with respect to the Pledged
Securities and Partnership Interests.  Debtor shall take all such
action necessary or appropriate, or as Secured Party may reasonably
request, to give effect to such Right.  Any dividends, interest,
principal and other payments and distributions which are received in
respect of the Pledged Securities or Partnership Interests by Debtor while
a Default exists shall be received in trust for the benefit of Required Lenders,
and shall be segregated from other funds of Debtor and shall (to the extent
so directed by Secured Party at the direction of Required Lenders)
forthwith be paid over to Secured Party (with any necessary
endorsement).  Secured Party will not exercise its Rights under this
subsection unless directed to do so by Required Lenders.  All
such dividends, interest, principal and other payments and distributions shall
be delivered to Secured Party upon demand.

      

      (b) So long
as no Default exists, Debtor shall have full power and authority to receive and
retain all dividends, distributions, and other payments in respect of the
Pledged Securities and Partnership Interests pledged to Secured Party
hereunder.

      

      8. Right to Vote Pledged
Securities and Partnership Interests; Releases.

      

      (a) Unless a
Default exists and Required Lenders have directed Secured Party not to
permit Debtor to exercise such Rights, Debtor shall have the Right, from
time to time, to vote and to give consents, ratifications and waivers with
respect to the Pledged Securities and Partnership Interests and other Collateral
that it owns and Secured Party shall, upon receiving a written request from
an authorized financial officer of Debtor deliver to Debtor or as specified
in such request, such proxies, powers of attorney, consents, ratifications and
waivers as shall be reasonably requested by Debtor in respect of any of the
Pledged Securities and Partnership Interests owned by it which are
registered in the name of Secured Party or its nominee and any other Collateral
owned by Debtor.

      

      (b) If a
Default exists, Secured Party shall have the Right, to the extent permitted by
Law, to vote and to give consents, ratifications and waivers and
take any other action with respect to all the Pledged Securities
and Partnership Interests with the same force and effect as if Secured Party
were the absolute and sole owner thereof.  Debtor shall, at
the request of Secured Party, take all such action as may be
necessary or appropriate to give effect to the Rights
granted to Secured Party pursuant to the immediate preceding
sentence.     

      

      9. Remedies Upon Enforcement
Notice.

      

      (a) If a
Default exists, Secured Party may (to the extent so directed by Required
Lenders) exercise, on behalf of Lenders, all Rights of a secured party
under the UCC (whether or not in effect in the jurisdiction where such
Rights are exercised) and, without limiting the foregoing, Secured
Party may, at the direction of Required Lenders, without being required to
give any notice, except
as herein provided or as may be required by Law:  (i) sell the
Collateral or any part thereof at public or private sale, for cash, upon
credit or for future delivery, and at such price or prices as Secured Party may
deem satisfactory; (ii) declare the Secured Obligation immediately due and
payable, without notice or demand; (iii) exercise as to any or all of the
Collateral all the Rights, powers and remedies of an owner; (iv) enforce the
security interest given hereunder pursuant to the UCC; (v) exercise any other
remedy provided under this Agreement or by any applicable Law; or (vi) sell the
Collateral without giving any warranties as to the Collateral.

      

      (b) Secured
Party or any Lender may be the purchaser of any or all of the Collateral sold
pursuant to Section
9(a)(i) at any public sale (or, if the Collateral is of a type
customarily sold in a recognized market or is of a type which is the
subject of widely distributed standard price quotations, at any private
sale).  Debtor will execute and deliver such documents and take
such other lawful actions Secured Party deems necessary or advisable in order
that any such sale may be made in compliance with Law.  Upon any such
sale Secured Party shall have the Right to deliver, assign and
transfer to the purchaser thereof the Collateral so sold.  Each
purchaser at any such sale shall hold the Collateral so sold to it absolutely
and free from any claim or Right of whatsoever kind, including any equity
or Right of redemption of Debtor which may be waived, and Debtor to
the extent permitted by Law, hereby specifically waives all Rights of
redemption, stay or appraisal which it has or may have under any Law now
existing or hereafter adopted.  The notice (if any) of such sale
required by Section 5
shall (1) in case of a public sale, state the time and place fixed
for such sale, and (2) in the case of a private sale, state the day
after which such sale may be consummated.  Any such public sale shall
be held at such time or times within ordinary business hours and at such place
or places as Secured Party may fix in the notice of such
sale.  At any such sale the Collateral may be sold in one lot as
an entirety or in separate parcels, as Secured Party may
determine.  Secured Party shall not be obligated to make any such
sale pursuant to any such notice.  Secured Party may, without notice
or publication, adjourn any public or private sale or cause the same to be
adjourned from time to time by announcement at the time and place fixed for the
sale, and such sale may be made at any time or place to which the same may
be so adjourned.  In case of any sale of all or any part of the
Collateral on credit or for future delivery, the Collateral so sold may be
retained by Secured Party until the selling price is
paid by the purchaser thereof, but Secured Party shall not incur
any liability in case of the failure of such purchaser to take up and pay
for the Collateral so sold and, in case of any such failure, such
Collateral may again be sold upon like notice.  Secured Party,
instead of exercising the power of sale herein conferred upon it, may
proceed by a suit or suits at Law or in equity to foreclose the Security
Interests and sell the Collateral, or any portion thereof, under a judgment
or decree of a court or courts of competent jurisdiction.

      

      (c) Debtor
recognizes that, by reason of certain prohibitions contained in the Securities
Act of 1933, as amended, and applicable state securities Laws, Secured
Party may be compelled, with respect to any sale of all or any part of
the Pledged Securities, to limit purchasers to those who will agree,
among other things, to acquire the Pledged Securities for their own
account, for investment and not with a view to the distribution or resale
thereof.  Debtor acknowledges that any such private sales may be at
prices and on terms less favorable to Secured Party than those
obtainable through a public sale without such restrictions, and,
notwithstanding such circumstances, agree that any such private sale shall be
deemed to have been made in a commercially reasonable manner and that
Secured Party shall have no obligation to engage in public sales and no
obligation to delay the sale of any Pledged Securities for
the period of time necessary to permit the issuer thereof to register
it for public sale.

      

      (d) For the
purpose of enforcing any and all Rights and remedies under this Agreement,
Secured Party may, subject to the provisions of the Credit Agreement, have
access to and use Debtor’s books and records relating to the
Collateral.

      

      (e) All
Rights and remedies herein provided are cumulative and not exclusive of any
Rights or remedies otherwise provided by Law.  Any single or partial
exercise of any Right or remedy shall not preclude the further exercise of any
other Right or remedy.  Debtor and Borrower acknowledge that
compliance with applicable state and federal Law shall not be considered to
adversely affect the commercial reasonableness of any sale of the
Collateral.

      

      10. Application of
Proceeds.  During the time a Default exists, the proceeds of
any sale of, or other realization upon, all or any part of the Collateral shall
be delivered to Secured Party for the benefit of Lenders.

      

      11. Termination of Security
Interests; Release of Collateral.

      

      (a) Secured
Party shall be under no obligation to permit any trading, redemption, exchange,
distribution or substitution of the Collateral or, except as otherwise provided
in the Credit Agreement, to permit the release of any Collateral or the proceeds
thereof until the Secured Obligation has been paid in full.  In no
event shall any trading, withdrawal or substitution be allowed of any Collateral
which is the subject of a Financial Hedge with a Lender or any Affiliate of a
Lender without the prior consent of such Lender or an Affiliate of any
Lender.

      

      (b) At the
time specified in Section
14.9(e) of the Credit Agreement for the reversion or release of the
Collateral to Debtor, the Security Interests shall terminate and all Rights
to the Collateral shall revert and be released to it.  At any time and
from time to time prior to such termination of the Security Interests,
Secured Party may release any of the Collateral pursuant to the terms of the
Credit Agreement.

      

      (c) In the
event that any Pledged Securities or Partnership Interests are sold or otherwise
transferred in a transaction which is in compliance with the terms of the Credit
Agreement, Secured Party will release its Security Interest in such Pledged
Securities or Partnership Interests.

      

      (d) Upon
any such termination or release of the Security Interests or Collateral,
Secured Party will, at the expense of the Borrower or Debtor, deliver to Debtor
any Collateral so released that is in its possession and execute and deliver
such documents, certificates or other instruments as the Borrower shall
reasonably request to evidence the termination of the Security
Interests or the release of such Collateral, as the case may be.

      

      (e) Secured
Party may at any time deliver the Collateral or any part thereof to Debtor and
the receipt of Debtor shall be a complete and full acquittance for the
Collateral so delivered, and Secured Party shall thereafter be discharged from
any liability or responsibility therefor.

      

      12. Waivers; Estoppel;
Non-Exclusive Remedies.

      

      (a)  No
failure on the part of Secured Party to exercise, no delay in exercising, and no
course of dealing with respect to, any Right under this Agreement
shall operate as a waiver thereof; nor shall any single or partial exercise
by Secured Party of any Right under this Agreement preclude any other
or further exercise thereof or the exercise of any other
Right.

      

      (b) No delay
or failure by Secured Party to enforce any provision hereunder shall preclude
Secured Party from enforcing any such provision thereafter.

      

      (c) Secured
Party shall be under no duty or obligation whatsoever to give Debtor notice of,
or to exercise, any subscription Rights or privileges, any Rights or privileges
to exchange, convert or redeem or any other Rights or privileges relating to or
affecting any Collateral.

      

      (d) Debtor,
to the extent it may lawfully do so, (i) agrees that it will not at any
time, in any manner whatsoever, claim or take the benefit or advantage of any
appraisement, valuation, stay, extension, moratorium, turnover or redemption
Law, or any Law permitting it to direct the order in which the
Collateral shall be sold, now or at any time hereafter in force, which may
delay, prevent or otherwise affect the performance or enforcement of
this Agreement, (ii) hereby waives all benefit or advantage of
all such Laws and covenants, and (iii) agrees that it will suffer
and permit the execution of every such power as though no such Law
were in force.

      

      (e) Debtor,
to the extent it may lawfully do so, on behalf of itself and all who claim
through or under it, including, without limitation, any and all
subsequent creditors, vendees, assignees and lienors, waives and releases all
Rights to demand or to have any marshalling of the Collateral upon any
sale, whether made under any power of sale granted in this Agreement or
pursuant to judicial proceedings or upon foreclosure or any enforcement of
this Agreement and consents and agrees that all the Collateral
may at any such sale be offered and sold as an entirety.

      

      (f) Debtor
waives, to the extent permitted by applicable Law, presentment, demand, protest
and any notice of any kind (except notices explicitly
required under this Agreement) in connection with this agreement and any
action taken by Secured Party with respect to the Collateral.

      

      (g) The
Rights in this Agreement are cumulative and are not exclusive of any other
remedies provided by Law or any other contract.

      

      13. Successors and
Assigns.  This Agreement is for the benefit of Secured Party
and Lenders and their respective successors and permitted assigns, and in
the event of an assignment of all or any of the Secured Obligation,
the Rights hereunder, to the extent applicable to the portion assigned,
shall be transferred therewith.  This Agreement shall be binding
on the undersigned, Secured Party, Lenders, and their respective successors and
permitted assigns.

      

      14. Loan
Paper.  This Agreement is a Loan Paper and is subject to the
applicable provisions of Section 15 of
the Credit Agreement, all of which are incorporated into this Agreement by
reference the same as if set forth in this Agreement verbatim.

      

      15. Costs.  All
advances, charges, costs and expenses, including reasonable Attorney Costs,
incurred or paid by Secured Party in exercising any Right, power or remedy
conferred by this Agreement or in the enforcement thereof, shall become a part
of the Debt secured hereunder and shall be paid to Secured Party by Borrower and
Debtor immediately and without demand, with interest thereon at an annual rate
equal to the highest rate of interest of any Debt secured by this Agreement (or,
if there is no such interest rate, at the maximum interest rate permitted by Law
for interest on judgments).

      

      16. Authority to file Financing
Statements; Further Assurances.

      

      (a)           Debtor
hereby authorizes Secured Party to file one or more financing statements
describing all or part of the Collateral, and continuation statements, or
amendments thereto, relative to all or part of the Collateral as authorized by
applicable Law.  Such financing statements, continuation statements
and amendments will contain any other information required by the UCC for the
sufficiency or filing office acceptance of any financing statement, continuation
statement or amendment, including whether Debtor is an organization, the type of
organization and any organizational identification number issued to
Debtor.  Debtor agrees to furnish any such information to Secured
Party promptly upon request.

      

      (b)           Debtor
and Borrower shall, at the request of Secured Party, execute such other
agreements, documents or instruments in connection with this Agreement as
Secured Party may reasonably deem necessary to evidence or perfect the security
interests granted herein, to maintain the first priority of the security
interests, or to effectuate the Rights granted to Secured Party
herein.

      

      17. UCC.  Any
term used or defined in the UCC and not defined in this Agreement has the
meaning given to the term in the UCC, when used in this Agreement.

      

      18. NOTICE OF FINAL
AGREEMENT.  THIS WRITTEN SECURITY AGREEMENT AND ANY OTHER
DOCUMENTS EXECUTED IN CONNECTION WITH THIS SECURITY AGREEMENT REPRESENT THE
FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.

      

      

      In Witness Whereof, Debtor has executed
this Agreement by its duly authorized officer, as of the date first written
above.

      

      

      
        	
                Debtor’s
      Chief Executive Office:

              	
                DEBTOR:

              
	 
      	 
      
	
                Street
      Address

              	 
      
	
                 

                 

                  City                      State                                Zip

              	
                 

                By:                                                                

                 

              
	 
      	
                Title:                                                                

                 

                Date:                                                                

              

      

      

      Debtor’s
type of
organization:                                                                                     

      

      
        	
                Debtor’s
      state of incorporation or organization (if Debtor is a corporation,
      limited partnership, limited liability company or other registered
      entity):

                 

              	
                Debtor’s
      organizational identification number, if any, assigned by the state of
      incorporation or organization (if no organizational identification number
      has been assigned, enter “None”):

                 

              
	 
      	 
      

      

      

      

      

      

      

      SECURED
PARTY:

      

      BANK OF
AMERICA, N.A.,
as

      Administrative
Agent

      

      

      By:                                                                

      Name:                                                                

      Title:                                                                

      

      

      

      ANNEX A TO AMENDED
AND RESTATED
PLEDGE AGREEMENT

      

      PLEDGED
SECURITIES

      

      

      
        	
                 

                 

                 

                Issuer

              	
                Authorized
      andOutstanding
      Shares

              	
                 

                 

                Par
      Value

              	
                 

                Pledged
      Stock\ Interest

              	
                 

                 

                Certificate
      Number

              	
                 

                 

                Percentage
      Owned

              	
                 

                 

                Other Liens

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      

      

      

      

      

      PARTNERSHIPS AND PARTNERSHIP
AGREEMENTS

      

      

      Partnership:

      

      

      

      Partnership
Agreements:

      

      

      

      ANNEX B TO AMENDED
AND RESTATED
PLEDGE AGREEMENT

      

      ACKNOWLEDGMENT OF
PLEDGE

      

      

      
        	
                 
      

              	
                PARTNERSHIP:
      _______________INTEREST OWNER:

              

      

      

      BY THIS
ACKNOWLEDGMENT OF PLEDGE, dated as of ______________________, __________  (the “Partnership”)
hereby acknowledges the pledge in favor of Bank of America, N.A. (“Pledgee”),
in its capacity as Administrative Agent for certain Lenders and as Secured Party
under that certain Pledge Agreement dated as of _________________, against, and
a security interest in favor of Pledgee in, all of   ‘s (the “Interest
Owner”) Rights in connection with any partnership interest in the
Partnership now and hereafter owned by the Interest Owner (“Partnership
Interest”).

      

      A.           Pledge
Records.  The Partnership has identified Pledgee’s interest in
all of the Interest Owner’s Right, title, and interest in and to all of the
Interest Owner’s Partnership Interest as subject to a pledge and security
interest in favor of Pledgee in the Partnership Records.

      

      B.           Partnership Distributions,
Accounts, and Correspondence.  The Partnership hereby
acknowledges that (i) all proceeds, distributions, and other amounts payable to
the Interest Owner, including, without limitation, upon the termination,
liquidation, and dissolution of the Partnership shall be paid and remitted to
the Pledgee upon demand, (ii) all funds in deposit accounts shall be held for
the benefit of Pledgee, and (iii) all future correspondence, accountings of
distributions, and tax returns of the Partnership shall be provided to the
Pledgee.  The Partnership acknowledges and accepts such direction and
hereby agrees that it shall, upon the written demand by Secured Party, pay
directly to Secured Party at such address any and all distributions, income, and
cash flow arising from the Partnership Interests whether payable in cash,
property or otherwise, subject to and in accordance with the terms and
conditions of the Partnership.  The Pledgee may from time to time
notify the Partnership of any change of address to which such amounts are to be
paid.

      

      Remainder
of Page Intentionally Blank.

      Signature
Page to Follow.

      

      

      

      

      

      EXECUTED
as of the date first stated in this Acknowledgment of Pledge.

      

      

      

      By:           

      Name:           

      Title:           

      

      

      

      [PARTNERSHIP]

      

      

      

      
        	
                 
      

              	
                By:

              	
                 

              	
                ,

              

      

      as
General Partner

      

      

      By:           

      Name:           

      Title:           

      

      

      EXHIBIT
F-2

      

      CONFIRMATION
OF PLEDGE AGREEMENT

      

      THIS
CONFIRMATION OF PLEDGE AGREEMENT (this “Confirmation”)
is executed as of January 28, 2005, by the undersigned debtor (“Debtor”),
in favor of Bank of America, N.A., as administrative agent (the “Administrative
Agent”) for the Lenders and their respective successors and assigns
(collectively, the “Lenders”)
that are from time to time parties to the Credit Agreement (as hereinafter
defined).

      

      Capitalized
terms not otherwise defined in this Confirmation shall have the meanings
ascribed to such terms in the Pledge Agreement (as hereinafter
defined).

      

      R E C I T A L S

      

      A.           The
Vail Corporation (d/b/a “Vail Associates, Inc.”), a Colorado corporation (the
“Borrower”),
certain lenders party thereto, and Bank of America, N.A., as administrative
agent, are parties to that certain Third Amended and Restated Revolving Credit
and Term Loan Agreement dated as of June 10, 2003 (as the same may have been
amended from time to time, the “Existing Credit
Agreement”).

      

      B.           In
connection with the Existing Credit Agreement, Debtor executed and delivered to
Administrative Agent, for the benefit of Lenders, an Amended and Restated Pledge
Agreement dated as of June 10, 2003 (as the same has been or may hereafter be
from time to time amended, the “Pledge
Agreement”).

      

      C.           Concurrently
herewith, the Existing Credit Agreement will be amended and restated pursuant to
the Fourth Amended and Restated Credit Agreement (as the same may be restated,
modified, amended, or supplemented from time to time, the “Credit
Agreement”), by and among the Borrower, the Administrative Agent, and the
Lenders.

      

      D.           The
execution and delivery of this Confirmation is an integral part of the
transactions contemplated by the Loan Papers and is a condition precedent to
Lenders’ obligations to extend credit under the Credit Agreement.

      

      E.           In
connection with the Credit Agreement, Debtor has agreed to ratify and confirm
its Pledge Agreement.

      

      NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Debtor hereby agrees as follows:

      

      1.           Confirmation
of Pledge.  Debtor hereby (a)
consents and agrees to the execution and delivery of the Credit Agreement and
the related Loan Papers (as defined in the Credit Agreement), (b) ratifies and
confirms that the Pledge Agreement is not released, diminished, impaired,
reduced, or otherwise adversely affected by the Credit Agreement and continues
to secure the full
payment and performance of the Secured Obligation, (c) acknowledges the
continuing existence and priority of the liens granted, conveyed, and
assigned to Administrative Agent, for the benefit of Lenders, under the Pledge
Agreement, and (d) agrees that the Secured Obligation includes, without
limitation, the Obligation (as defined in the Credit Agreement).

      

      2.           Other
Agreements.  Debtor
(a) agrees to perform such acts and duly authorize, execute, acknowledge,
deliver, file, and record such additional pledges, and other agreements,
documents, instruments, and certificates as the Administrative Agent may
reasonably deem necessary or appropriate in order to preserve and protect those
Security Interests granted by Debtor pursuant to the Pledge Agreement, (b)
represents and warrants to the Administrative Agent that such liability and
obligation may reasonably be expected to directly or indirectly benefit Debtor,
and (c) waives notice of acceptance of this Confirmation.

      

      3.           Continued
Effect.  All terms,
provisions, and conditions of each Pledge Agreement shall continue in full force
and effect and shall remain enforceable and binding in accordance with the terms
of such Pledge Agreement.

      

      4.           Parties
Bound.  This Confirmation
shall be binding upon and inure to the benefit of Debtor and the Administrative
Agent, for the benefit of the Lenders, and their respective successors,
permitted assigns, and legal representatives.

      

      5.           Headings.  Section headings
are for convenience of reference only and shall in no way affect the
interpretation of this Confirmation.

      

      6.           Governing
Law.  THE SUBSTANTIVE
LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE VALIDITY, CONSTRUCTION,
ENFORCEMENT, AND INTERPRETATION OF THIS CONFIRMATION.

      

      7.           NOTICE OF
FINAL AGREEMENT.
THIS CONFIRMATION REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND
MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT
ORAL AGREEMENTS OF THE PARTIES.

      

      THERE ARE NO ORAL AGREEMENTS BETWEEN
THE PARTIES.

      

      

      

      Remainder
of Page Intentionally Blank

      Signature
Page to Follow

      

      EXECUTED
as of the day and year first above written.

      

      

      DEBTOR:

      

      [                                ]

      

      By:           

      Name:           

      Title:           

      

      The
undersigned, as Administrative Agent for the benefit of the Lenders, hereby
accepts the foregoing Confirmation.

      

      ADMINISTRATIVE
AGENT:

      

      BANK OF
AMERICA, N.A.

      

      

      By:           

      Name:           

      Title:

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