Document:

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                                                                     EXHIBIT 4.4

                    SEVENTH AMENDMENT TO US CREDIT AGREEMENT

     THIS SEVENTH AMENDMENT TO US CREDIT AGREEMENT (herein called the
"Amendment") made as of April 16, 2001 (herein called the "Effective Date"), by
and among Questar Market Resources, Inc., a Utah corporation ("US Borrower"),
Bank of America, N.A., individually and as administrative agent for the Lenders
as defined below ("US Agent"), and the undersigned Lenders.

                              W I T N E S S E T H:

     WHEREAS, US Borrower, US Agent and the lenders as signatories thereto (the
"Lenders") entered into that certain US Credit Agreement dated as of April 19,
1999, as amended by that certain First Amendment to US Credit Agreement dated as
of May 17, 1999, as amended by that certain Second Amendment to US Credit
Agreement dated as of July 30, 1999, as amended by that certain Third Amendment
to US Credit Agreement dated as of November 30, 1999, as amended by that certain
Fourth Amendment to US Credit Agreement dated as of April 17, 2000, and as
amended by that certain Fifth Amendment to US Credit Agreement dated as of
October 6, 2000, and as amended by that certain Sixth Amendment to US Credit
Agreement dated as of February 9, 2001 (the "Original Agreement"), for the
purpose and consideration therein expressed, whereby the Lenders became
obligated to make loans to US Borrower as therein provided; and

     WHEREAS, US Borrower, US Agent and the undersigned Lenders desire to amend
the Original Agreement for the purposes as provided herein;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
and agreements contained herein and in the Original Agreement, in consideration
of the loans which may hereafter be made by Lenders to US Borrower, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto do hereby agree as follows:

                                   ARTICLE I.

                           DEFINITIONS AND REFERENCES

     Section 1.1. TERMS DEFINED IN THE ORIGINAL AGREEMENT. Unless the context
otherwise requires or unless otherwise expressly defined herein, the terms
defined in the Original Agreement shall have the same meanings whenever used in
this Amendment.

     Section 1.2. OTHER DEFINED TERMS. Unless the context otherwise requires,
the following terms when used in this Amendment shall have the meanings assigned
to them in this Section 1.2.

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          "AMENDMENT" means this Seventh Amendment to US Credit Agreement.

          "US CREDIT AGREEMENT" means the Original Agreement as amended hereby.

                                   ARTICLE II.

                        AMENDMENTS TO ORIGINAL AGREEMENT

     Section 2.1. AMENDMENT TO ANNEX I. The following definitions set forth in
Annex I to the Original Agreement are hereby amended in their entirety to read
as follows:

          "'364-DAY COMMITMENT FEE RATE' means, on any date, the number of Basis
Points per annum set forth below based on the Applicable Rating Level on such
date:

<Table>
<Caption>
=============================     =================================
           Applicable                    Applicable 364-Day
          Rating Level                   Commitment Fee Rate
-----------------------------     ---------------------------------
          <S>                                   <C>
          Level I                                 8.5
-----------------------------     ---------------------------------
          Level II                               10.0
-----------------------------     ---------------------------------
          Level III                              12.5
-----------------------------     ---------------------------------
          Level IV                               15.0
-----------------------------     ---------------------------------
          Level V                                17.0
-----------------------------     ---------------------------------
          Level VI                               22.5
-----------------------------     ---------------------------------
          Level VII                              27.5"
=============================     =================================
</Table>

          "'APPLICABLE MARGIN'

          (a) means when used with respect to Tranche A Loans in the US
     Agreement on any date, the number of Basis Points per annum set forth below
     based on the Applicable Rating Level on such date:

                                        2

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<Table>
<Caption>
=================================    =====================================
           Applicable                             Applicable
          Rating Level                              Margin
---------------------------------    -------------------------------------
            <S>                                     <C>
            Level I                                  30.0
---------------------------------    -------------------------------------
            Level II                                 35.0
---------------------------------    -------------------------------------
            Level III                                45.0
---------------------------------    -------------------------------------
            Level IV                                 60.0
---------------------------------    -------------------------------------
            Level V                                  75.0
---------------------------------    -------------------------------------
            Level VI                                100.0
---------------------------------    -------------------------------------
            Level VII                               125.0
=================================    =====================================
</Table>

          (b) means when used in the Canadian Agreement and when used with
     respect to Tranche B Loans in the US Agreement on any date, the number of
     Basis Points per annum set forth below based on the Applicable Rating Level
     on such date:

<Table>
<Caption>
=================================    =====================================
           Applicable                             Applicable
          Rating Level                              Margin
---------------------------------    -------------------------------------
            <S>                                      <C>
            Level I                                  30.0
---------------------------------    -------------------------------------
            Level II                                 40.0
---------------------------------    -------------------------------------
            Level III                                50.0
---------------------------------    -------------------------------------
            Level IV                                 75.0
---------------------------------    -------------------------------------
            Level V                                  87.5
---------------------------------    -------------------------------------
            Level VI                                100.0
---------------------------------    -------------------------------------
            Level VII                               125.0
=================================    =====================================
</Table>

     In the event that the Canadian Revolving Loans convert into Canadian Term
     Loans pursuant to Section 1.7 of the Canadian Agreement, then as of April
     20, 2004, and at all times thereafter the Applicable Margin as set forth
     above on such Canadian Term Loans shall increase by fifteen (15) Basis
     Points per annum. Changes in the Applicable Margin will occur automatically
     without prior notice as changes in the Applicable Rating Level occur.

     US Agent will give notice promptly to Borrowers and the Lenders of changes
     in the Applicable Margin."

                                        3

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          "'BA DISCOUNT RATE' means, in respect of a BA being accepted by a
     Lender on any date, (i) for a Lender that is listed in Schedule I to the
     BANK ACT (Canada), the average bankers' acceptance rate as quoted on
     Reuters CDOR page (or such other page as may, from time to time, replace
     such page on that service for the purpose of displaying quotations for
     bankers' acceptances accepted by leading Canadian financial institutions)
     at approximately 10:00 a.m. (Toronto time) on such drawdown date for
     bankers' acceptances having a comparable maturity date as the maturity date
     of such BA (the "CDOR Rate"); or, if such rate is not available at or about
     such time, the average of the bankers' acceptance rates (expressed to five
     decimal places) as quoted to the Agent by the Schedule I BA Reference Banks
     as of 10:00 a.m. (Toronto time) on such drawdown date for bankers'
     acceptances having a comparable maturity date as the maturity date of such
     BA; and (ii) for a Lender that is listed in Schedule II to the BANK ACT
     (Canada) or a Lender that is listed in Schedule III to the Bank Act
     (Canada) that is not subject to the restrictions and requirements referred
     to in subsection 524 (2) of the Bank Act (Canada), the rate established by
     the Canadian Agent to be the lesser of (A) the CDOR Rate plus 10 Basis
     Points; and (B) the average of the bankers' acceptance rates (expressed to
     five decimal places) as quoted to the Canadian Agent by the Schedule II BA
     Reference Banks as of 10:00 a.m. (Toronto time) on such drawdown date for
     bankers' acceptances having a comparable maturity date as the maturity date
     of such BA."

          "'Canadian Maximum Credit Amount' means the Canadian Dollar Exchange
     Equivalent of US $58,333,333.33; provided that the Canadian Maximum Credit
     Amount may be increased up to US $70,000,000 pursuant to Section 1.1(b) of
     the Canadian Agreement."

          "'CONVERSION DATE' means April 15, 2002, or such later day to which
     the Conversion Date is extended pursuant to Section 1.6 of the Canadian
     Agreement."

          "'MAJORITY LENDERS' means (i) when used in the US Agreement, Lenders
     whose aggregate Percentage Shares under the US Agreement equal or exceed
     sixty-six and two thirds percent (66 2/3%), and (ii) when used in the
     Canadian Agreement, Lenders whose aggregate Percentage Shares under the
     Canadian Agreement equal or exceed sixty-six and two thirds percent (66
     2/3%)."

          "'PERCENTAGE SHARE' means

          (a) under the US Agreement with respect to any Lender (i) when no US
     Loans are outstanding, the percentage set forth below such Lender's name on
     the Lenders Schedule as its Percentage Share under the US Agreement, as
     modified by assignments of a Lender's rights and obligations under the US
     Agreement made by or to such Lender in accordance with the terms of the US
     Agreement or pursuant to Section 1.1(f) of the US Agreement, and (ii) when
     used otherwise, the percentage obtained by dividing (x) the sum of the
     unpaid principal balance of such Lender's US Loans and such Lender's
     Percentage Share of the US LC Obligations, by (y) the sum of the aggregate
     unpaid principal balance of all US Loans at such time plus the aggregate
     amount of all US LC Obligations outstanding at such time;

                                        4

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                                  QUESTAR CORP.

          (b) under the Canadian Agreement with respect to any Lender (i) when
     used in Article I or Article II of the Canadian Agreement, in any Borrowing
     Notice thereunder or when no Canadian Advances are outstanding, the
     percentage set forth below such Lender's name on the Lenders Schedule as
     its Percentage Share under the Canadian Agreement, as modified by
     assignments of a Lender's rights and obligations under the Canadian
     Agreement made by or to such Lender in accordance with the terms of the
     Canadian Agreement or pursuant to Section 1.1(b) of the Canadian Agreement,
     and (ii) when used otherwise, the percentage obtained by dividing (x) the
     sum of the unpaid principal balance of such Lender's Canadian Advances and
     such Lender's Percentage Share of the Canadian LC Obligations, by (y) the
     sum of the aggregate unpaid principal balance of all Canadian Advances at
     such time plus the aggregate amount of all Canadian LC Obligations
     outstanding at such time; and

          (c) when used in any Loan Document with respect to all Lenders under
     the US Agreement and the Canadian Agreement, (i) for any Lender under the
     US Agreement, the percentage obtained by dividing such Lender's Percentage
     Share of the US Facility Usage by the Aggregate Facility Usage, and (ii)
     for any Lender under the Canadian Agreement, the percentage obtained by
     dividing such Lender's Percentage Share of the Canadian Facility Usage by
     the Aggregate Facility Usage."

          "'PERMITTED LIENS' means:

          (a) operators' liens under customary operating agreements, liens
     arising under gas transportation and purchase agreements on the gas being
     transported or processed which secure related gas transportation and
     processing fees only, statutory Liens for taxes, statutory mechanics' and
     materialmen's Liens, and other similar statutory Liens, provided such Liens
     secure only Liabilities which are not delinquent or which are being
     contested as provided in Section 6.7 of the US Agreement or Section 6.7 of
     the Canadian Agreement;

          (b) Liens on any oil and gas properties which neither have developed
     reserves (producing or non-producing) properly attributable thereto nor are
     otherwise held under lease by production of other reserves;

          (c)  Liens on the Restricted Persons' office facilities;

          (d) Liens on property securing non-recourse debt permitted under
     Section 7.1(f) of the US Agreement and Section 7.1(f) of the Canadian
     Agreement which is acquired with proceeds or developed with proceeds of the
     non-recourse debt; and

          (e) Liens to secure the Obligations provided that nothing in this
     definition shall in and of itself constitute or be deemed to constitute an
     agreement or acknowledgment by the US Agent or the Canadian Agent or any
     Lender that the Indebtedness subject to or secured by any such Permitted
     Lien ranks (apart from the effect of any Lien included in or inherent in
     any such Permitted Liens) in priority to the Obligations."

                                        5

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          "'REQUIRED LENDERS' means (i) when used in the US Agreement, Lenders
     whose aggregate Percentage Shares under the US Agreement equal or exceed
     fifty percent (50%), and (ii) when used in the Canadian Agreement, Lenders
     whose aggregate Percentage Shares under the Canadian Agreement equal or
     exceed fifty percent (50%)."

          "'TRANCHE B CONVERSION DATE' means April 15, 2002, or such later day
     to which the Tranche B Conversion Date is extended pursuant to Section 1.1
     of the US Agreement."

          "'TRANCHE B MAXIMUM CREDIT AMOUNT' means $41,666,666.67; provided that
     the Tranche B Maximum Credit Amount may be increased up to $50,000,000
     pursuant to Section 1.1(f) of the US Agreement."

     Section.2. ADDITIONAL DEFINITIONS. The following definitions are hereby
added to Annex I of the Original Agreement, in alphabetical order, to read as
follows:

          "'AGGREGATE FACILITY USAGe' means, at the time in question, the sum of
     (i) the Canadian Facility Usage plus (ii) the US Facility Usage."

          "'TRANCHE A LENDERS' means Lenders designated as Tranche A Lenders on
     the Lenders Schedule."

          "'TRANCHE A PERCENTAGE SHARE' means with respect to any Tranche A
     Lender (i) when used in Article I of the US Agreement or in Article II of
     the US Agreement, in any Borrowing Notice thereunder or when no Tranche A
     Loans are outstanding, the Tranche A percentage set forth below such
     Tranche A Lender's name on the Lenders Schedule as modified by assignments
     of a Tranche A Lender's rights and obligations under the US Agreement made
     by or to such Lender in accordance with the terms of the US Agreement, and
     (ii) when used otherwise, the percentage obtained by dividing (x) the sum
     of the unpaid principal balance of such Lender's Tranche A Loans and such
     Lender's Percentage Share of the US LC Obligations, by (y) the sum of the
     aggregate unpaid principal balance of all Tranche A Loans at such time plus
     the aggregate amount of all US LC Obligations outstanding at such time."

          "'TRANCHE A REQUIRED LENDERS' means Tranche A Lenders whose aggregate
     Tranche A Percentage Shares equal or exceed fifty percent (50%)."

          "'TRANCHE B LENDERS' means Lenders designated as Tranche B Lenders on
     the Lenders Schedule."

          "'TRANCHE B PERCENTAGE SHARE' means with respect to any Tranche B
     Lender (i) when used in Article I of the US Agreement, in any Borrowing
     Notice thereunder or when no Tranche B Loans are outstanding, the Tranche B
     percentage set forth below such Tranche B Lender's name on the Lenders
     Schedule as modified by assignments of a Tranche B Lender's rights and
     obligations under the US Agreement made by or to such Lender in accordance

                                        6

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     with the terms of the US Agreement, and (ii) when used otherwise, the
     percentage obtained by dividing (x) the sum of the unpaid principal balance
     of such Lender's Tranche B Loans, by (y) the sum of the aggregate unpaid
     principal balance of all Tranche B Loans."

          "'TRANCHE B REQUIRED LENDERS' means Tranche B Lenders whose aggregate
     Tranche B Percentage Shares equal or exceed fifty percent (50%)."

     Section.3. COMMITMENT TO LEND; US NOTES. Section 1.1 of the Original
Agreement is hereby amended in its entirety to read as follows:

               "Section 1.1. COMMITMENTS TO LEND; US NOTES.

          (a) TRANCHE A. Subject to the terms and conditions hereof, each Lender
     severally agrees to make loans to US Borrower (herein called such Tranche A
     Lender's "Tranche A Loans") upon US Borrower's request from time to time
     during the US Facility Commitment Period, provided that (i) subject to
     Sections 3.3, 3.4 and 3.5, all Tranche A Lenders are requested to make
     Tranche A Loans of the same Type in accordance with their respective
     Percentage Shares and as part of the same Borrowing, (ii) the US Facility
     Usage shall never exceed the US Maximum Credit Amount, (iii) such Tranche A
     Lender's Percentage Share of the US Facility Usage shall never exceed such
     Tranche A Lender's Percentage Share of the US Maximum Credit Amount
     (calculated excluding Competitive Bid Loans), and (iv) such Tranche A
     Lender's Percentage Share of the Tranche A Facility Usage shall never
     exceed such Tranche A Lender's Percentage Share of the Tranche A Maximum
     Credit Amount. The aggregate amount of all Tranche A Loans in any Borrowing
     must be an integral multiple of US $100,000 which equals or exceeds US
     $200,000 or, if less, must equal the unadvanced portion of the US Maximum
     Credit Amount. The obligation of US Borrower to repay to each Tranche A
     Lender the aggregate amount of all Tranche A Loans made by such Tranche A
     Lender, together with interest accruing in connection therewith, shall be
     evidenced by a single promissory note (herein called such Tranche A
     Lender's "Tranche A Note") made by US Borrower payable to the order of such
     Tranche A Lender in the form of Exhibit A-1 with appropriate insertions.
     The amount of principal owing on any Tranche A Lender's Tranche A Note at
     any given time shall be the aggregate amount of all Tranche A Loans
     theretofore made by such Tranche A Lender minus all payments of principal
     theretofore received by such Tranche A Lender on such Tranche A Note.
     Interest on each Tranche A Note shall accrue and be due and payable as
     provided herein and therein. Each Tranche A Note shall be due and payable
     as provided herein and therein, and shall be due and payable in full on the
     US Facility Maturity Date. Subject to the terms and conditions hereof, US
     Borrower may borrow, repay, and reborrow Tranche A Loans under the US
     Agreement during the US Facility Commitment Period. US Borrower may have no
     more than ten Borrowings of US Dollar Eurodollar Loans (including Tranche A
     Loans and Tranche B Loans) outstanding at any time.

          (b) TRANCHE B. Subject to the terms and conditions hereof, each
     Tranche B Lender severally agrees to make loans to US Borrower (herein
     called such Tranche B Lender's "Tranche B Loans") upon US Borrower's
     request from time to time during the

                                        7

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     Tranche B Revolving Period, provided that (i) subject to Sections 3.3, 3.4
     and 3.5, all Tranche B Lenders are requested to make Tranche B Loans of the
     same Type in accordance with their respective Percentage Shares and as part
     of the same Borrowing, (ii) the US Facility Usage shall never exceed the US
     Maximum Credit Amount , (iii) such Tranche B Lender's Percentage Share of
     the US Facility Usage shall never exceed such Tranche B Lender's Percentage
     Share of the US Maximum Credit Amount (calculated excluding Competitive Bid
     Loans), and (iv) such Tranche B Lender's Percentage Share of the Tranche B
     Facility Usage shall never exceed such Tranche B Lender's Percentage Share
     of the Tranche B Maximum Credit Amount. The aggregate amount of all Tranche
     B Loans in any Borrowing must be an integral multiple of US $100,000 which
     equals or exceeds US $200,000 or, if less, must equal the unadvanced
     portion of the US Maximum Credit Amount. The obligation of US Borrower to
     repay to each Tranche B Lender the aggregate amount of all Tranche B Loans
     made by such Tranche B Lender, together with interest accruing in
     connection therewith, shall be evidenced by a single promissory note
     (herein called such Tranche B Lender's "Tranche B Note") made by US
     Borrower payable to the order of such Tranche B Lender in the form of
     Exhibit A-2 with appropriate insertions. The amount of principal owing on
     any Tranche B Lender's Tranche B Note at any given time shall be the
     aggregate amount of all Tranche B Loans theretofore made by such Tranche B
     Lender minus all payments of principal theretofore received by such Tranche
     B Lender on such Tranche B Note. Interest on each Tranche B Note shall
     accrue and be due and payable as provided herein and therein. Each Tranche
     B Note shall be due and payable as provided herein and therein, and shall
     be due and payable in full on the Tranche B Maturity Date. Subject to the
     terms and conditions hereof, US Borrower may borrow, repay, and reborrow
     Tranche B Loans under the US Agreement during the Tranche B Revolving
     Period. US Borrower may have no more than ten Borrowings of US Dollar
     Eurodollar Loans (including Tranche A Loans and Tranche B Loans)
     outstanding at any time.

          (c)  EXTENSION OF CONVERSION DATE.

               (i) US Borrower may, at its option and from time to time during
          the Tranche B Revolving Period, request an offer to extend the Tranche
          B Revolving Period by delivering to US Agent a Request for an Offer of
          Extension not more than sixty days prior to the then current Tranche B
          Conversion Date. US Agent shall forthwith provide a copy of the
          Request for an Offer of Extension to each of the Tranche B Lenders.
          Upon receipt by each Tranche B Lender from US Agent of an executed
          Request for an Offer of Extension, each Tranche B Lender shall, within
          thirty days after the date such Tranche B Lender receives such request
          from US Agent, either:

                    (1) notify US Agent of its acceptance of the Request for an
               Offer of Extension, and the terms and conditions, if any, upon
               which such Tranche B Lender is prepared to extend the Tranche B
               Conversion Date; or

                    (2) notify US Agent that the Request for an Offer of
               Extension has been denied, such notice to forthwith be forwarded
               by US Agent to US

                                        8

<Page>

               Borrower to allow US Borrower to seek a replacement Tranche B
               Lender pursuant to Section 1.1(e) (any Tranche B Lender giving
               notice of such denial is herein called a "Non-Accepting Tranche B
               Lender"). The failure of a Tranche B Lender to so notify US Agent
               within such thirty day period shall be deemed to be notification
               by such Tranche B Lender to US Agent that such Tranche B Lender
               has denied US Borrower's Request for an Offer of Extension.

               (ii) Provided that all Tranche B Lenders provide notice to US
          Agent under Section 1.1(c)(i) that they accept the Request for an
          Offer of Extension, or if there are Non-Accepting Tranche B Lenders,
          such Tranche B Lenders shall have been repaid pursuant to Section
          1.1(e) or replacement Tranche B Lenders shall have become parties
          hereto pursuant to Section 1.1(e) and shall have accepted the Request
          for an Offer of Extension, such acceptance having common terms and
          conditions, US Agent shall deliver to US Borrower an Offer of
          Extension incorporating such terms and conditions. Such offer shall be
          open for acceptance by US Borrower until the fifth Business Day
          immediately preceding the then current Tranche B Conversion Date. Upon
          written notice by US Borrower to US Agent accepting an outstanding
          Offer of Extension and agreeing to the terms and conditions, if any,
          specified therein (the date of such notice of acceptance in this
          Section 1.1 being called the "Extension Date"), the Tranche B
          Conversion Date shall be extended to the date 364 days from the
          Extension Date and the terms and conditions specified in such Offer of
          Extension shall be immediately effective.

               (iii) US Borrower understands that the consideration of any
          Request for an Offer of Extension constitutes an independent credit
          decision which each Tranche B Lender retains the absolute and
          unfettered discretion to make and that no commitment in this regard is
          hereby given by a Tranche B Lender and that any offer to extend the
          Tranche B Conversion Date may be on such terms and conditions in
          addition to those set out herein as the extending Tranche B Lenders
          stipulate.

          (d) CONVERSION TO TRANCHE B TERM LOAN. Effective at 11:59 p.m. Dallas,
     Texas time on the day immediately preceding the Tranche B Conversion Date,
     (i) each Tranche B Lender's obligation to make new Tranche B Loans shall be
     canceled automatically, and (ii) each Tranche B Lender's Tranche B Loans
     shall become term loans maturing on the Tranche B Maturity Date.

          (e) NON-ACCEPTING TRANCHE B LENDER. Provided that Tranche B Lenders
     whose Percentage Shares represent more than 50% but less than 100% of the
     US Maximum Credit Amount provide notice to US Agent under Section 1.1(c)(i)
     that they accept the Request for an Offer of Extension, on notice of US
     Borrower to US Agent, US Borrower shall be entitled to choose any of the
     following in respect of each Non-Accepting Tranche B Lender prior to the
     expiration of the Tranche B Revolving Period, provided that if US Borrower
     does not make an election prior to the expiration of the Tranche B
     Revolving Period, US Borrower shall be deemed to have irrevocably elected
     to exercise the provisions of Section 1.1(e)(i):

                                        9

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               (i) the Non-Accepting Tranche B Lender's obligations to make US
          Loans shall be canceled as of the Extension Date, the US Maximum
          Credit Amount shall be reduced by the amount so canceled, and on or
          prior to the Extension Date the US Borrower shall repay in full all
          Obligations then outstanding to the Non-Accepting Tranche B Lender (as
          defined in Section 1.1(c)(i)(2)), or

               (ii) replace the Non-Accepting Tranche B Lender by reaching
          satisfactory arrangements with one or more existing Tranche B Lenders
          or new Tranche B Lenders, for the purchase, assignment and assumption
          of all Canadian Obligations and US Obligations of the Non-Accepting
          Tranche B Lender, provided that any new Tranche B Lender, with, if
          necessary, any Affiliate, shall take a pro rata assignment of both
          Canadian Obligations and US Obligations, and such Non-Accepting
          Tranche B Lender shall be obligated to sell such Obligations in
          accordance with such satisfactory arrangements.

     In connection with any such replacement of a Tranche B Lender pursuant to
     this Section 1.1(e), US Borrower shall pay all costs that would have been
     due to such Tranche B Lender pursuant to Section 3.6 if such Tranche B
     Lender's US Loans had been prepaid at the time of such replacement.

          (f) INCREASE IN COMMITMENTS. During the Tranche B Revolving Period,
     the Tranche A Maximum Credit Amount, the Tranche B Maximum Credit Amount,
     the US Maximum Credit Amount and the Canadian Maximum Credit Amount may be
     increased, pro rata, by an aggregate amount of $10,000,000 or any higher
     integral multiple thereof not to exceed $50,000,000 at the request of US
     Borrower and with the prior written consent of the US Agent and the
     Canadian Agent, which consent shall not be unreasonably withheld, and
     without the consent of any Lender provided that a new Lender becomes a
     party to the Credit Agreement with the same Percentage Share under Tranche
     B of the US Credit Agreement and the Canadian Credit Agreement, and that
     such Lender agrees to all of the terms and conditions of the US Loan
     Documents and the Canadian Loan Documents. Each of US Agent and Canadian
     Agent are hereby authorized to execute and deliver amendments to the Loan
     Documents to effectuate the foregoing on behalf of all Lenders."

     Section.4. TRANCHE A COMMITMENT FEES. Section 1.5(a)(ii) of the Original
Agreement is hereby amended in its entirety to read as follows:

               "(ii) TRANCHE A COMMITMENT FEES. In consideration of each Tranche
          A Lender's commitment to make Tranche A Loans under this Agreement, US
          Borrower will pay to US Agent for the account of each Tranche A Lender
          a commitment fee determined on a daily basis by applying the Five-Year
          Commitment Fee Rate to its Tranche A Percentage Share of the amount by
          which the Tranche A Maximum Credit Amount exceeds the Tranche A
          Facility Usage on each day during the US Facility Commitment Period.
          This commitment fee shall be due and payable in arrears on the
          fifteenth day after the end of each Fiscal Quarter and at the end of
          the US Facility Commitment Period."

                                       10

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     Section 2.5. TRANCHE B COMMITMENT FEES. Section 1.5(b)(ii) of the Original
Agreement is hereby amended in its entirety to read as follows:

               "(ii) COMMITMENT FEES. In consideration of each Tranche B
          Lender's commitment to make Tranche B Loans under this Agreement, US
          Borrower will pay to US Agent for the account of each Tranche B Lender
          a commitment fee determined on a daily basis by applying the 364-Day
          Commitment Fee Rate to its Tranche B Percentage Share of the amount by
          which the Tranche B Maximum Credit Amount exceeds the outstanding
          principal balance of the Tranche B Loans on each day during the period
          from the date hereof until the Tranche B Maturity Date. This
          commitment fee shall be due and payable in arrears on the fifteenth
          day after the end of each Fiscal Quarter and on the Tranche B Maturity
          Date."

     Section 2.6. UTILIZATION FEES. Section 1.5(c) of the Original Agreement is
hereby amended in its entirety to read as follows:

          "(c) UTILIZATION FEES. During the period from April 16, 2001, until
     the latest of the Tranche B Conversion Date, the US Facility Maturity Date,
     and the Conversion Date under the Canadian Agreement, US Borrower will pay
     to US Agent for the account of each Lender under the US Agreement and the
     Canadian Agreement, a utilization fee for each day on which the Aggregate
     Facility Usage exceeds thirty three and one-third percent (33 1/3%) of the
     sum of (i) the US Maximum Credit Amount plus (ii) the Canadian Maximum
     Credit Amount; PROVIDED THAT, if the Canadian Loans or Tranche B Loans have
     been converted to term loans, they shall be excluded from the calculation
     of utilization fees. The amount of the utilization fee shall be determined
     on a daily basis by applying the Utilization Fee Rate to each such Lender's
     Percentage Share of the Aggregate Facility Usage on each such day. This
     utilization fee shall be due and payable in arrears on each Interest
     Payment Date for US Base Rate Loans and at the end of the US Facility
     Commitment Period."

     Section 2.7. LETTERS OF CREDIT. Sections 2.3 and 2.4 of the Original
Agreement are hereby amended in their entirety to read as follows:

     "Section 2.3 REIMBURSEMENT AND PARTICIPATIONS.

          (a) REIMBURSEMENT BY US BORROWER. If the beneficiary of any Letter of
     Credit issued hereunder makes a draft or other demand for payment
     thereunder then Tranche A Loans that are US Base Rate Loans shall be made
     by Tranche A Lenders to US Borrower in the amount of such draft or demand
     notwithstanding the fact that one or more conditions precedent to the
     making of such US Base Rate Loans may not have been satisfied. Such US Base
     Rate Loans shall be made concurrently with US LC Issuer's payment of such
     draft or demand without any request therefor by US Borrower and shall be
     immediately used by US LC Issuer to repay the amount of the resulting
     Matured US LC Obligation.

          (b) PARTICIPATION BY TRANCHE A LENDERS. US LC Issuer irrevocably
     agrees to grant and hereby grants to each Tranche A Lender, and to induce
     US LC Issuer to issue Letters of

                                       11

<Page>

     Credit hereunder, each Tranche A Lender irrevocably agrees to accept and
     purchase and hereby accepts and purchases from US LC Issuer, on the terms
     and conditions hereinafter stated and for such Tranche A Lender's own
     account and risk, an undivided interest equal to its Tranche A Percentage
     Share of US LC Issuer's obligations and rights under each Letter of Credit
     issued hereunder and the amount of each Matured US LC Obligation paid by US
     LC Issuer thereunder. Each Tranche A Lender unconditionally and irrevocably
     agrees with US LC Issuer that, if a Matured US LC Obligation is paid under
     any Letter of Credit issued hereunder for which US LC Issuer is not
     reimbursed in full, whether pursuant to Section 2.3(a) above or otherwise,
     such Tranche A Lender shall (in all circumstances and without set-off or
     counterclaim) pay to US LC Issuer on demand, in immediately available funds
     at US LC Issuer's address for notices hereunder, its Tranche A Percentage
     Share of such Matured US LC Obligation (or any portion thereof which has
     not been reimbursed by US Borrower). Each Tranche A Lender's obligation to
     pay US LC Issuer pursuant to the terms of this subsection is irrevocable
     and unconditional. If any amount required to be paid by any Tranche A
     Lender to US LC Issuer pursuant to this subsection is paid by such Tranche
     A Lender to US LC Issuer within three Business Days after the date such
     payment is due, US LC Issuer shall in addition to such amount be entitled
     to recover from such Tranche A Lender, on demand, interest thereon
     calculated from such due date at the Federal Funds Rate. If any amount
     required to be paid by any Tranche A Lender to US LC Issuer pursuant to
     this subsection is not paid by such Tranche A Lender to US LC Issuer within
     three Business Days after the date such payment is due, US LC Issuer shall
     in addition to such amount be entitled to recover from such Tranche A
     Lender, on demand, interest thereon calculated from such due date at the
     Default Rate.

          (c) DISTRIBUTIONS TO PARTICIPANTS. Whenever US LC Issuer has in
     accordance with this section received from any Tranche A Lender payment of
     its Tranche A Percentage Share of any Matured US LC Obligation, if US LC
     Issuer thereafter receives any payment of such Matured US LC Obligation or
     any payment of interest thereon (whether directly from US Borrower or by
     application of LC Collateral or otherwise, and excluding only interest for
     any period prior to US LC Issuer's demand that such Tranche A Lender make
     such payment of its Tranche A Percentage Share), US LC Issuer will
     distribute to such Tranche A Lender its Tranche A Percentage Share of the
     amounts so received by US LC Issuer; PROVIDED, HOWEVER, that if any such
     payment received by US LC Issuer must thereafter be returned by US LC
     Issuer, such Tranche A Lender shall return to US LC Issuer the portion
     thereof which US LC Issuer has previously distributed to it.

          (d) CALCULATIONS. A written advice setting forth in reasonable detail
     the amounts owing under this section, submitted by US LC Issuer to US
     Borrower or any Tranche A Lender from time to time, shall be conclusive,
     absent manifest error, as to the amounts thereof."

          "Section 2.4 LETTER OF CREDIT FEES. In consideration of US LC Issuer's
     issuance of any Letter of Credit, US Borrower agrees to pay to US LC Issuer
     for its own account, a letter of credit fronting fee at a rate equal to
     12.5 Basis Points per annum, prorated for the term of the Letter of Credit,
     multiplied by the face amount of such Letter of Credit, payable on the

                                       12

<Page>

     date of issuance, and (b) to US Agent, for the account of all Tranche A
     Lenders in accordance with their respective Tranche A Percentage Shares, a
     letter of credit issuance fee calculated by applying the Applicable Margin
     to the face amount of all Letters of Credit outstanding on each day,
     payable in arrears on the last day of each Fiscal Quarter."

     Section 2.8. RELIANCE BY US AGENT. The third sentence of Section 9.2 of the
Original Agreement is hereby amended in its entirety to read as follows:

          "As to any matters not expressly provided for by this Agreement, US
     Agent shall not be required to exercise any discretion or take any action,
     but shall be required to act or to refrain from acting (and shall be fully
     protected in so acting or refraining from acting) upon the instructions of
     the Tranche A Required Lenders, Tranche B Required Lenders or Required
     Lenders, as provided in this Agreement, and such instructions shall be
     binding on all of the Lenders, Tranche A Lenders or Tranche B Lenders,
     respectively; PROVIDED, HOWEVER, that US Agent shall not be required to
     take any action that exposes US Agent to personal liability or that is
     contrary to any Loan Document or applicable Law or unless it shall first be
     indemnified to its satisfaction by the Lenders against any and all
     liability and expense which may be incurred by it by reason of taking any
     such action."

     Section 2.9. PRO RATA. The fourth sentence of Section 9.11 of the Original
Agreement is hereby amended in its entirety to read as follows:

          "Section 9.11 LENDERS TO REMAIN PRO RATA. It is the intent of all
     parties hereto that, except for Competitive Bid Loans and matters related
     thereto, the Tranche B Percentage Share of each Tranche B Lender and such
     Lender's Percentage Share of the Canadian Obligations shall be
     substantially the same at all times during the term of this Agreement. All
     subsequent assignments and adjustments of the interests of the Lenders in
     Tranche B Loans and in the Canadian Obligations will be made so as to
     maintain such a pro rata arrangement; provided that for the purposes of
     determining these pro rata shares, any Percentage Share held by any
     Lender's Affiliates shall be included in determining the interests of such
     Lender."

     Section 2.10. WAIVERS AND AMENDMENTS. The fourth sentence of Section 10.1
of the Original Agreement is hereby amended in its entirety to read as follows:

          "This Agreement and the other US Loan Documents set forth the entire
     understanding between the parties hereto with respect to the transactions
     contemplated herein and therein and supersede all prior discussions and
     understandings with respect to the subject matter hereof and thereof, and
     no waiver, consent, release, modification or amendment of or supplement to
     this Agreement or the other US Loan Documents shall be valid or effective
     against any party hereto unless the same is in writing and signed by (i) if
     such party is US Borrower, by US Borrower, (ii) if such party is US Agent
     or US LC Issuer, by such party, (iii) if such party is a Tranche A Lender,
     by such Tranche A Lender or by US Agent on behalf of Tranche A Lenders with
     the written consent of Tranche A Required Lenders, (iv) if such party is a
     Tranche B Lender, by such Tranche B Lender or by US Agent on behalf of

                                       13

<Page>

     Tranche B Lenders with the written consent of Tranche B Required Lenders
     and (v) if such party is a Lender, by such Lender or by US Agent on behalf
     of Lenders with the written consent of Required Lenders (which consent has
     already been given as to the termination of the US Loan Documents as
     provided in Section 10.10)."

     Section 2.11 LENDERS SCHEDULE. The Lenders Schedule attached to the
original Agreement is deleted and Schedule 1 hereto is substituted therefor.

                                  ARTICLE III.

                                  AMENDMENT FEE

     Section 3.1. AMENDMENT FEE. In consideration of US Agent and each Lenders'
agreement to enter into this Amendment, US Borrower will pay to US Agent for the
account of each Lender an amendment fee determined by applying five Basis Points
to such Lender's Percentage Share of the Tranche B Maximum Credit Amount. This
amendment fee shall be due and payable on the Effective Date of this Amendment.

                                   ARTICLE IV.

                           CONDITIONS OF EFFECTIVENESS

     Section 4.1. EFFECTIVE DATE. This Amendment shall become effective as of
the date first above written when, and only when, US Agent shall have received,
at US Agent's office:

          (i) a counterpart of this Amendment executed and delivered by US
     Borrower and Required Lenders;

          (ii) a certificate of the Secretary or Assistant Secretary and of the
     President, Chief Financial Officer or Vice President of Administrative
     Services of US Borrower dated the date of this Amendment certifying: (a)
     that resolutions adopted in connection with the Original Agreement by the
     Board of Directors of the US Borrower authorize the execution, delivery and
     performance of this Amendment by US Borrower, (b) to the names and true
     signatures of the officers of the US Borrower authorized to sign this
     Amendment, and (c) that all of the representations and warranties set forth
     in Article V hereof are true and correct at and as of the time of such
     effectiveness; and

          (iii) all fees and reimbursements to be paid to US Agent pursuant to
     any US Loan Documents, or otherwise due US Agent, including fees and
     disbursements of US Agent's attorneys.

                                       14

<Page>

                                   ARTICLE V.

                         REPRESENTATIONS AND WARRANTIES

     Section 5.1. REPRESENTATIONS AND WARRANTIES OF BORROWER. In order to induce
US Agent and Lenders to enter into this Amendment, US Borrower represents and
warrants to US Agent that:

          (a) The representations and warranties contained in Article V of the
     Original Agreement are true and correct at and as of the time of the
     effectiveness hereof.

          (b) US Borrower has duly taken all action necessary to authorize the
     execution and delivery by it of this Amendment and to authorize the
     consummation of the transactions contemplated hereby and the performance of
     its obligations hereunder. US Borrower is duly authorized to borrow funds
     under the US Credit Agreement.

          (c) The execution and delivery by US Borrower of this Amendment, the
     performance by US Borrower of its obligations hereunder and the
     consummation of the transactions contemplated herein do not and will not
     (a) conflict with any provision of (i) any Law, (ii) the organizational
     documents of US Borrower, or (iii) any agreement, judgment, license, order
     or permit applicable to or binding upon US Borrower, or (b) result in the
     acceleration of any Indebtedness owed by US Borrower, or (c) result in or
     require the creation of any Lien upon any assets or properties of US
     Borrower, except as expressly contemplated or permitted in the Loan
     Documents. Except as expressly contemplated in the Loan Documents no
     consent, approval, authorization or order of, and no notice to or filing
     with any Tribunal or third party is required in connection with the
     execution, delivery or performance by US Borrower of this Amendment or to
     consummate any transactions contemplated herein.

          (d) This Amendment is a legal, valid and binding obligation of US
     Borrower, enforceable in accordance with its terms, except as such
     enforcement may be limited by bankruptcy, insolvency or similar Laws of
     general application relating to the enforcement of creditors' rights and by
     equitable principles of general application relating to the enforcement of
     creditor's rights.

                                   ARTICLE VI.

                                  MISCELLANEOUS

     Section 6.1. RATIFICATION OF AGREEMENTS. The Original Agreement as hereby
amended is hereby ratified and confirmed in all respects. The US Loan Documents,
as they may be amended or affected by this Amendment, are hereby ratified and
confirmed in all respects. Any reference to the US Credit Agreement in any Loan
Document shall be deemed to be a reference to the Original Agreement as hereby
amended. The execution, delivery and effectiveness of this Amendment shall not,
except as expressly provided herein, operate as a waiver of any right, power or
remedy of Lenders under the

                                       15

<Page>

US Credit Agreement, the US Notes, or any other US Loan Document nor constitute
a waiver of any provision of the US Credit Agreement, the US Notes or any other
US Loan Document.

     Section 6.2. SURVIVAL OF AGREEMENTS; CUMULATIVE NATURE. All of US
Borrower's various representations, warranties, covenants and agreements herein
shall survive the execution and delivery of this Amendment and the performance
hereof, including without limitation the making or granting of the US Loans, and
shall further survive until all of the US Obligations are paid in full to each
Lender Party and all of Lender Parties' obligations to US Borrower are
terminated. All statements and agreements contained in any certificate or
instrument delivered by any Restricted Person hereunder or under the US Credit
Agreement to any Lender Party shall be deemed representations and warranties by
US Borrower or agreements and covenants of US Borrower under this Amendment and
under the US Credit Agreement. The representations, warranties, indemnities, and
covenants made by Restricted Persons in the US Loan Documents, and the rights,
powers, and privileges granted to Lender Parties in the US Loan Documents, are
cumulative, and, except for expressly specified waivers and consents, no Loan
Document shall be construed in the context of another to diminish, nullify, or
otherwise reduce the benefit to any Lender Party of any such representation,
warranty, indemnity, covenant, right, power or privilege. In particular and
without limitation, no exception set out in this Amendment to any
representation, warranty, indemnity, or covenant herein contained shall apply to
any similar representation, warranty, indemnity, or covenant contained in any
other Loan Document, and each such similar representation, warranty, indemnity,
or covenant shall be subject only to those exceptions which are expressly made
applicable to it by the terms of the various US Loan Documents.

     Section 6.3. LOAN DOCUMENTS. This Amendment is a US Loan Document, and all
provisions in the US Credit Agreement pertaining to US Loan Documents apply
hereto.

     Section 6.4. GOVERNING LAW. This Amendment shall be governed by and
construed in accordance the laws of the State of Utah and any applicable laws of
the United States of America in all respects, including construction, validity
and performance. US Borrower hereby irrevocably submits itself and each other
Restricted Person to the non-exclusive jurisdiction of the state and federal
courts sitting in the State of Utah and agrees and consents that service of
process may be made upon it or any Restricted Person in any legal proceeding
relating to the Amendment Documents or the Obligations by any means allowed
under Utah or federal law.

     Section 6.5. COUNTERPARTS. This Amendment may be separately executed in any
number of counterparts and by the different parties hereto in separate
counterparts, each of which when so executed shall be deemed to constitute one
and the same Amendment. This Amendment may be validly executed and delivered by
facsimile or other electronic transmission.

     THIS AMENDMENT AND THE OTHER US LOAN DOCUMENTS 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.

                                       16

<Page>

     IN WITNESS WHEREOF, this Amendment is executed as of the date first above
written.

                                   QUESTAR MARKET RESOURCES, INC.
                                   US Borrower

                                   By:     /s/ G. L. Nordloh
                                           -------------------------------------
                                           G. L. Nordloh
                                           President and Chief Executive Officer

                                           Mailing Address:
                                           P.O. Box 45433
                                           Salt Lake City, Utah  84145
                                           Attention:  Martin H. Craven

                                           Street Address:
                                           180 East 100 South
                                           Salt Lake City, Utah  84111
                                           Telephone: (801) 324-5497
                                           Fax: (801) 324-5483

                                   BANK OF AMERICA, N.A.
                                   Administrative Agent, US LC Issuer and Lender

                                   By:     /s/ Tracey S. Barclay
                                           -------------------------------------
                                           Tracey S. Barclay
                                           Principal

                                           TORONTO DOMINION (TEXAS), INC.
                                           Lender

                                   By:     /s/ Cank A. Clause
                                           -------------------------------------
                                           Cank A. Clause
                                           Vice President

<Page>

                                   BANK OF MONTREAL
                                     Lender

                                   By:     /s/ James Whitmore

                                           -------------------------------------
                                           James Whitmore
                                           Director

                                   BANK ONE, NA (MAIN OFFICE CHICAGO)
                                     Lender

                                   By:     /s/ Sean Drinan

                                           -------------------------------------
                                           Sean Drinan
                                           Vice President

                                   FIRST SECURITY BANK, N.A.
                                     Lender

                                   By:     /s/ Troy S. Akagi
                                           -------------------------------------
                                           Troy S. Akagi
                                           Vice President

                                   MELLON BANK, N.A.
                                     Lender

                                   By:     /s/ Roger E. Howard
                                           -------------------------------------
                                           Roger E. Howard
                                           Vice President

                                   U.S. BANK NATIONAL ASSOCIATION
                                     Lender

                                   By:     /s/ Mark E. Thompson
                                           -------------------------------------
                                           Mark E. Thompson
                                           Vice President

<Page>

                                   THE BANK OF TOKYO-MITSUBISHI, LTD.,
                                   HOUSTON AGENCY

                                     Lender

                                   By:     /s/ K. Glasscock
                                           -------------------------------------
                                           K. Glasscock
                                           Vice President and Manager

                                   THE INDUSTRIAL BANK OF JAPAN, LIMITED
                                     Lender

                                   By:     /s/ Michael C. Jones
                                           -------------------------------------
                                           Michael C. Jones
                                           Vice President

                                   SUMITOMO MITSUI BANKING CORPORATION,
                                   formerly known as The Sumitomo Bank, Limited
                                   Lender

                                   By:     /s/ Bob Grenfelt

                                           -------------------------------------
                                           Bob Grenfelt
                                           Vice President and ManagerQuickLinks
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Exhibit 10.16 Employment Agreement dated June 1, 2000 by and between United Park City Mines Company and Hank Rothwell    
  

 
 

EMPLOYMENT AGREEMENT    
  

 PREAMBLE  

        This Employment Agreement (this "Agreement") is made by and between United Park City Mines Company, a Delaware corporation (the "Company"), and Hank Rothwell
("Rothwell") to be effective as of the 1st day of June, 2000. 

 RECITALS  

        WHEREAS, the Company and Rothwell previously entered into that certain Employment Agreement dated September 1, 1991, that certain Employment Agreement
dated as of June 1, 1994, as amended by that certain Amendment No. 1 to Employment Agreement dated as of September 5, 1995, and that certain Employment Agreement dated as of
June 1, 1997, as amended by that certain Amendment No. 1 to Employment Agreement dated as of March 9, 1999 (collectively referred to herein as the "Prior Employment Agreement"),
whereby Rothwell was employed to serve as the Company's President and Chief Executive Officer; and 

        WHEREAS,
the term of the Prior Employment Agreement, as previously extended, expires on May 31, 2000; and 

        WHEREAS,
the Board of Directors of the Company desires and intends to continue to employ Rothwell as the Company's President and Chief Executive Officer on the terms and conditions set
forth herein; and 

        WHEREAS,
Rothwell is willing and desires to continue to be employed by the Company as its President and Chief Executive Officer on the terms and conditions set forth herein; 

        NOW,
THEREFORE, in consideration of the mutual covenants and conditions contained herein, the parties hereto agree as follows: 

        1.    Employment. The Company hereby agrees to continue to employ Rothwell, and Rothwell hereby agrees to continue to be
employed, as President and Chief Executive Officer of the Company, upon the terms and conditions hereinafter set forth. The location of such employment shall be in either Park City or Salt Lake City,
Utah; however, Rothwell agrees to take whatever reasonable business trips are requested by the Board of Directors of the Company. The Company and Rothwell acknowledge that Rothwell is presently
serving as a director on the Board of Directors of the Company. As long as Rothwell is President and Chief Executive Officer during the term of this Agreement, the Board of Directors of the Company
will cause Rothwell's name to be fisted on any proxy soliciting votes for the election of directors. 

        2.    Term. The employment of Rothwell by the Company pursuant to this Agreement will be for a period of three (3) years
commencing as of June 1, 2000 (the "Employment Terms"), unless the Employment Term is terminated earlier pursuant to the provisions of Section 5 hereof. 

        3.    Duties. Rothwell agrees to perform the duties outlined in the Company's bylaws as being applicable for the Company's
President and Chief Executive Officer, and to perform such other duties as may be assigned from time to time by the Board of Directors of the Company. Rothwell agrees that he will devote his full time
and energy to the affairs of the Company, and that during the Employment Term he shall report to the Board of Directors of the Company. Without prior approval of the Board of Directors of the Company,
Rothwell agrees that he shall not devote his time to any business activities other than the affairs of the Company during the Employment Term, with the exception of those business activities (the
"Permitted Outside Activities") described in Exhibit "A" attached hereto and incorporated herein by this 

1

 

reference. The Company agrees that Rothwell's involvement in the Permitted Outside Activities shall not violate Rothwell's obligations arising under this Agreement. Rothwell agrees to give written
notice to the Board of Directors of the Company in the event that any of the Permitted Outside Activities in which Rothwell participates during the term of this Agreement creates a potential conflict
of interest for Rothwell between his involvement in the Permitted Outside Activity and the performance by Rothwell of his duties as the President and Chief Executive Officer of the Company. 

4.    Compensation.  

        a.    Salary. Commencing on June 1, 2000 the Company shall pay Rothwell a minimum annual salary of One Hundred
Thirty-Five Thousand Dollars ($135,000), payable in equal semi-monthly installments (such amount, as it may be increased from time to time, is hereinafter referred to as the
"Salary"). The Salary payable to Rothwell by the Company shall be increased every year during the term of this Agreement, commencing on June 1, 2001 and continuing on each June I thereafter, to
an amount which shall be the product obtained by multiplying the annual Salary which was paid to Rothwell for the immediately preceding twelve months by the lesser of (a) 106% or (b) a
fraction, the numerator of which is the Consumer Price Index (as hereinafter defined) for the month of February immediately preceding such adjustment date, and the denominator of which is the Consumer
Price Index for February, 2000 or the month of February immediately preceding the most recent date on which the Salary was adjusted, whichever is later. The amount of such increase shall be determined
by the Company as soon as reasonably practicable after the Consumer Price Index for the month of February immediately preceding each adjustment date becomes available. The delay or failure of the
Company to compute and pay to Rothwell any increases in the Salary to be made pursuant to this Section 4.a. shall not impair the continuing obligation of the Company to pay the increased
portion of the Salary resulting from such adjustments. In no event shall the Salary be decreased as a result of this Section 4.a. For purposes of this Agreement, the term "Consumer Price Index"
shall mean the "Consumer Price Index—U.S. City Average For All Items For All Urban Consumers (1982-1984 = 100)" (the "CPI-U") published monthly in the
"Monthly Labor Review" by the Bureau of Labor Statistics of the United States Department of Labor (the "Labor Bureau"). If the CPI-U is discontinued, "Consumer Price Index" shall refer to
comparable statistics on the purchasing power of the consumer dollar published by the Labor Bureau or by another agency of the United States Government selected by the Company. 

        b.    Net Cash Flow Payment. In addition to the Salary described in Section 4.a. above, above, the Company shall, within
ninety (90) days after the end of each calendar year during the term of this Agreement commencing with the year beginning on January 1, 2000 (each such calendar year is referred to as a
"Net Cash Flow Period"), pay to Rothwell as an incentive payment (the "Net Cash Flow Payment") an amount equal to three percent (3%) of the Net Cash Flow, as defined below, from each Project, as
defined below, in which the Company, or any of its wholly-owned subsidiaries, engaged or was actively involved during the Net Cash Flow Period for which such payment is made. 

        (1)  For
purposes of this Agreement, "Net Cash Flow' shall mean, separately with respect to each Project in which the Company or any of its wholly-owned subsidiaries was
engaged or actively involved during the Net Cash Flow Period for which such Net Cash Flow Payment is being calculated, the excess of Revenue, as defined below, over Costs, as defined below, less Prior
Net Cash Flow, as defined below. The Net Cash Flow shall be reviewed and audited by the Company's independent certified public accountants (currently PricewaterhouseCoopers LLP) as to each Project
within ninety (90) days after the end of each calendar year during the term of this Agreement. The Net Cash Flow Payment made for each calendar year during the term of this Agreement shall be
based upon the results of the annual audit by the Company's independent certified public accountants. 

          (i)  For
purposes of calculating Net Cash Flow, "Revenue" shall mean all income, receipts or value received by the Company with respect to a Project from the inception of
the Project through the end of the Net Cash Flow Period for which the Net Cash Flow is being calculated, 

2

 

including, without limitation, all gross sales proceeds and other consideration from property sold as part of the Project, all operating revenues derived from such Project, and all income received
with respect to services rendered pursuant to such Project. 

        (ii)  For
purposes of calculating Net Cash Flow, "Costs" shall mean all costs and expenses directly or indirectly incurred with respect to a Project, or allocated to such
Project on an equitable basis, from the inception of such Project through the end of the Net Cash Flow Period for which the Net Cash Flow Payment is being calculated, including, without limitation,
(a) the adjusted book basis of the assets and property sold and the general and administrative expenses of the Company equitably allocated to the Project (including an equitable allocation of
the salary and benefits of Rothwell and other employees who have rendered services with respect to such Project), and (b) the total amount of all costs, fees and interest incurred by the
Company on borrowed funds which are invested in the Project (including an imputed interest cost which shall be calculated on all non-borrowed funds of the Company which are invested in the
Project but which imputed interest cost shall not be calculated on any of the Revenue with respect to such Project which Revenue is invested by the Company in the Project. The imputed interest cost
shall be calculated from the date of actual expenditure of such non-borrowed funds by the Company until the date such non-borrowed funds are returned to the Company from the
Revenue generated by the Project, utilizing an annual rate of interest equal to the prime rate of interest announced from time to time by the bank or financial institution then used by the Company for
its banking needs, plus two percent (2%) per annum). 

        (iii)  For
purposes of calculating Net Cash Flow, "Prior Net Cash Flow" shall mean, with respect to a Project, the cumulative historical Net Cash Flow from the inception of
such Project through the end of the Net Cash Flow Period immediately preceding the Net Cash Flow Period for which the Net Cash Flow Payment is being calculated. 

        (2)  For
purposes of this Agreement, "Project" shall mean each separate real estate development or any specifically identifiable phase thereof, or each separate business
enterprise of the Company, in which the Company or any of its wholly-owned subsidiaries is engaged as of September 1, 1993 and all real estate developments and business enterprises in which the
Company or any of its wholly-owned subsidiaries is engaged during the term of this Agreement, with respect to which, in each case (i) the Company has received all necessary approvals and
permits from the applicable public authorities, and (ii) the Company, as authorized by the Board of Directors, has commenced a development and marketing program, and (iii) either the
Company's equity funds have been allocated or external financing has been arranged. Notwithstanding the foregoing sentence, the term "Project" shall also include any separate real estate development
project listed from time to time on Exhibit "B" attached hereto or a specifically identifiable phase of any such project which is sold in its entirety in a single sale because of its development
potential, even if such separate real estate development project or phase does not otherwise satisfy the three requirements set forth in the preceding sentence as essential elements of a "Project."
The term "Project" shall not include specific real estate developments or business enterprises in which the Company or any of
its wholly-owned subsidiaries was actively involved prior to September 1, 1991. With respect to large developments or master-planned projects, such as Flagstaff or Bonanza Flats, each phase of
such development shall be treated as a separate Project for purposes of calculating the Net Cash Flow Payment, and an equitable (prorata or value based) portion of the accrued costs with respect to
such development shall be allocated to each separate phase thereof, for purposes of calculating the Net Cash Flow Payment with respect to such Project. As of the date of this Agreement, the Projects
eligible to be considered for a Net Cash Flow Payment are those Projects specifically identified on Exhibit "B" attached hereto, which Exhibit "B" may from time to time be amended in writing by the
parties in accordance with the definition of "Project" set forth above. 

3

 

        (3)  A
Project generating a negative Net Cash Flow through the end of a Net Cash Flow Period shall be used to off-set or reduce the positive Net Cash Flow which
has been generated by other Projects of the Company, and it shall reduce the amount of the Net Cash Flow Payment as set forth herein. The parties acknowledge that the negative Net Cash Flow resulting
from the Park City Silver Mine Adventure ("PCSMA") was fully resolved to the mutual satisfaction of the parties during the Company's 1999 fiscal year. The PCSMA negative Net Cash Flow of $6,918,739
reduces Rothwell's 1999 and future Net Cash Flow payments by a total of $207,562. 

        (4)  In
the event Rothwell is not employed during an entire Net Cash Flow Period, the Net Cash Flow and the Net Cash Flow Payment shall be proportionately reduced to reflect
the number of days during such Net Cash Flow Period that Rothwell was employed by the Company. 

        (5)  In
the event the Net Cash Flow with respect to any Project results from the Company's receipt of Revenue in the form of property interests or other non-cash
consideration, the Net Cash Flow with respect to such Project shall then be determined on the basis of the fair market value of such non-cash consideration and such Net Cash Flow (after
offsetting any current or accumulated negative Net Cash Flow) shall be used in the determination of a Net Cash Flow Payment under Section 4.b., provided, that at the time the Net Cash Flow
Payment to Rothwell with respect to such Project is due (after so offsetting any negative Net Cash Flow), Rothwell shall be credited on the Company's books with a percentage interest in the
non-cash consideration having a value equal to the amount of the Net Cash Flow Payment he would have received if the Project had produced cash Revenue. At such time as the
non-cash consideration is collected or sold or otherwise disposed of by the Company, the Company shall make a special payment to Rothwell in an amount equal to his proportionate share of
the net proceeds received from the disposition of the non-cash consideration. This provision shall survive termination of this Agreement and any such special payments shall be made to
Rothwell at the times provided above regardless of whether or not he is employed by the Company at the time such payments are made. 

        (6)  In
certain instances, the Company may participate with a third party or parties in the development of a Project in which case the Company would contribute a Project or
an interest in a Project to a newly-formed partnership, joint venture, limited liability company, corporation or other entity (the "Partnership"), the third party or parties would contribute
expertise, cash and/or financing commitments to the Partnership, and the Company and the third party would receive equity,
participation, or other similar non-cash ownership interests in the Partnership in consideration for such contributions (such an arrangement being referred to herein as a "Partnered
Project"). For purposes of calculating Net Cash Flow with respect to Partnered Projects, the Company shall not be deemed to receive Revenue solely as a result of its contribution of a Project or
Project interest to a Partnership (and the capitalization of the Project on the books of the Partnership); it being the intention of the parties that Revenue from Partnered Projects will only be
recognized at the time the Company receives cash distributions from the Partnership. For purposes of illustration only, if the Company had successfully completed its proposed partnership with DUB,
although the Company would have been credited with a multimillion dollar contribution to the partnership based on the agreed value of the Flagstaff and Bonanza projects, the formation of the
partnership and the Company's contribution of the projects thereto would not have been construed as Revenues for purposes of calculating Net Cash Flow, and the Company would not have received any
Revenues for purposes of calculating Net Cash Flow until such time as the partnership actually distributed cash payments to the Company. In the event of any inconsistency between the provisions of
this Section 4.b.6 and the provisions of Section 4.b.5, the provisions of this Section 4.b.6 shall be controlling. 

        c.    Incentive Stock Option Agreement. Attached hereto as Exhibit "C" is a copy of the Incentive Stock Option Agreement dated
June 27, 1994, as amended by the Amendment to United Park City Mines Company Incentive Stock Option Agreement dated as of August 25, 1995, entered into by and between the 

4

 

Company and Rothwell, which shall continue in effect pursuant to the terms and conditions set forth therein. If at any time during the term of this Agreement the "Capital Stock" of the Company, as
such term is defined in the Incentive Stock Option Agreement, as amended, ceases to be listed on the stock exchange of any United States public listing agency, such as the New York Stock Exchange or
NASDAQ (any such public listing agency individually referred to herein as a "Stock Exchange") for a period of ninety (90) consecutive calendar days, then Rothwell shall be entitled to give
notice to the Company of Rothwell's election to cause the Company to purchase from Rothwell all of his right, title and interest arising under the Incentive Stock Option Agreement, provided that
Rothwell gives to the Company written notice of such election by Rothwell within thirty (30) days after the date that the Capital Stock of the Company has not been listed on any Stock Exchange
for a period of ninety (90) consecutive days. In the event Rothwell exercises his right to cause the Company to purchase all of Rothwell's right, title and interest under the Incentive Stock
Option Agreement, the purchase price to be paid by the Company to Rothwell for all of his right, title and interest arising under the Incentive Stock Option Agreement shall be an amount equal to the
total number of Option Shares which Rothwell is then entitled to purchase under the Incentive Stock Option Agreement multiplied by a dollar amount calculated as follows: 

          (i)  the
closing bid price per share of the Company's Capital Stock on the date which is five (5) business days prior to the date which is the earlier to occur of.
(i) the date that the Capital Stock of the Company ceases to be listed on any Stock Exchange, provided that the Capital Stock of the Company thereafter remains unlisted on any Stock Exchange
for a period of ninety (90) consecutive calendar days, or (ii) the date that the Stock Exchange which then lists the Capital Stock of the Company announces its intention to discontinue
the listing of the Company's Capital Stock on such Stock Exchange, provided that another Stock Exchange does not simultaneously announce its commitment to commence listing the Capital Stock of the
Company, with such new listing to become effective no later than the date the other Stock Exchange discontinues its listing of the Capital Stock of the Company, and provided further that the Capital
Stock of the Company, as the result of such announcement,
ceases to be listed on any Stock Exchange and thereafter remains unlisted on any Stock Exchange for a period of ninety (90) consecutive calendar days, 

        (ii)  less
the price per share for which Rothwell is entitled to purchase the Option Shares under the Incentive Stock Option Agreement. 

        Such
amount shall be calculated and shall be payable by the Company to Rothwell in cash no later than thirty (30) days following the date that Rothwell gives to the Company
written notice of Rothwell's election to cause the Company to purchase all of Rothwell's right, title and interest arising under the Incentive Stock Option Agreement. 

        d.    Employee Benefits. During the Employment Term, Rothwell shall be entitled to all employee benefits in effect or that may
hereafter be adopted, which are at least equal to the benefits available to all other salaried employees or management personnel of the Company, including, without limitation, the Company's pension or
profit-sharing plans, insurance plans (such as health, accident, dental, fife, or disability insurance), paid vacations, paid sick leave, and holidays. The level of benefits applicable to Rothwell
shall be determined in the same manner as the level of benefits is determined for all other salaried employees of the Company. 

        5.    Termination. The Employment Term shall terminate upon the date of the first to occur of: 

        a.    the
date that is three (3) years after the date hereof (the "Normal Expiration Date"); 

        b.    the
accidental death of Rothwell while actively engaged in the performance of his duties hereunder; 

        c.    the
death of Rothwell from any cause other than an accident during the active performance of his duties hereunder; 

5

 

        d.    the
physical or mental disability or illness of Rothwell that shall prevent Rothwell from performing his duties under this Agreement for a period of at least three
(3) consecutive months, as shall be determined in good faith by the Board of Directors of the Company; 

        e.    the
election of the Board of Directors of the Company to terminate Rothwell's employment for "Cause" (as defined in this Section 5 below); 

        f.      the
election of the Board of Directors of the Company to terminate Rothwell's employment without Cause; and 

        g.    fifteen
(15) days after written notice from Rothwell to the Company to terminate his employment with or without Cause. 

        For
the purpose of this Agreement, the word "Cause" shall be defined to include, but not be limited to, the following: 

          (i)  negligence,
willful misconduct, or dereliction of duty to the Company; 

        (ii)  conduct
that has not been authorized or directed by the Board of Directors, which may cause or has caused material damage to the Company; 

        (iii)  breach
of fiduciary duties to the Company; 

        (iv)  conviction
for a criminal felony charge; 

        (v)  drug
or alcohol abuse that causes damage to the Company; 

        (vi)  insubordination
in refusing to perform work assigned by the Board of Directors which is reasonably related to the duties of President and Chief Executive Officer; 

      (vii)  unapproved
disclosure of confidential information; 

      (viii)  engaging
in a business competitive to the Company other than the Permitted Outside Activities; 

        (ix)  sexual
harassment that causes damage to the Company; or 

        (x)  theft
or abuse of Company funds or property. 

6.    Payments on Termination.  

        a.    In
the event this Agreement is terminated pursuant to Sections 5.a, 5.c, 5.d, 5.e, or 5.g above, the Company shall pay to Rothwell or his beneficiary or personal
representative Rothwell's full Salary, together with all benefits and other compensation through the date of termination. Also, in the event this Agreement is terminated pursuant to Sections 5.a.,
5.c., or 5.d. above, the Company shall continue to pay to Rothwell or his beneficiary or personal representative the Net Cash Flow Payments with respect to all of the Projects of the Company which are
in existence as of the date of Rothwell's termination, for a period of three (3) years following the date of termination at the time the same were to become due if the termination had not
occurred. In the event this Agreement is terminated pursuant to Sections 5.e. or 5.g. above, the Company shall not be obligated to make any Net Cash Flow Payments beyond the termination date. 

        b.    In
the event this Agreement is terminated pursuant to Section 5.b because of the accidental death of Rothwell during the active performance of his duties
hereunder, the Company shall pay, as liquidated damages arising out of the termination of this Agreement, but not as a waiver or release of any other claims relating to Rothwell's death, to Rothwell's
estate, beneficiary or personal representative: 

        (1)  Rothwell's
full Salary through the date of Rothwell's death, together with all benefits and other compensation through such date; plus 

6

 

        (2)  an
amount equal to the aggregate of the Salary to which Rothwell would have been entitled for a period of one (1) year following the date of Rothwell's death, as
if such death had not occurred, all such payments to be made at the time the same were to become due if the death had not occurred. The payments provided hereunder shall be in addition to any other
payments to which Rothwell or his estate would be entitled such as pension benefits and life insurance proceeds, if any; plus 

        (3)  the
Company shall continue to pay to Rothwell's beneficiary or personal representative the Net Cash Flow Payments with respect to all of the Projects of the Company
which are in existence as of the date
of Rothwell's termination for a period of three (3) years following the date of Rothwell's death at the time the same were to become due if Rothwell's death had not occurred. 

        c.    In
the event this Agreement is terminated pursuant to Section 5.f above, the Company shall pay to Rothwell as liquidated damages and not as a penalty: 

        (1)  Rothwell's
full Salary in effect prior to the reason for termination through the date of Rothwell's termination, together with all benefits and other compensation
through such date; plus 

        (2)  an
amount equal to the aggregate Salary to which Rothwell would have been entitled for the remainder of the Employment Term to the Normal Expiration Date, all such
payments to be made at the time the same were to become due as if the termination had not occurred; provided, that notwithstanding the Normal Expiration Date, such payments shall continue for a
minimum period of one year from the date of termination of Rothwell's employment; plus 

        (3)  the
Company shall continue to pay to Rothwell or to Rothwell's beneficiary or personal representative the Net Cash Flow Payments with respect to all of the Projects of
the Company which are in existence as of the date of Rothwell's termination for a period of three (3) years following the date of Rothwell's termination at the time the same were to become due
if the termination had not occurred. 

        Rothwell
shall not be required to mitigate the amount of any payment provided for in this Section 6 by seeking other employment or otherwise, nor shall the amount of any payment
or benefit provided for in this Section 6 be reduced by any compensation or retirement benefits heretofore or hereafter earned by Rothwell as a result of employment by any other person or
business entity. 

        7.    Sale, Merger, Joint Venture or Business Reorganization Involving the Company or Its Assets. For purposes of this
Agreement, a "Triggering Event" shall be deemed to have occurred if: (i) there occurs a sale, merger, or other business reorganization or acquisition involving the Company or its properties in
connection with which the Company's shareholders receive cash, stock, property, or some combination thereof, in exchange for their shares of the Company's capital stock; or (ii) any person
acquires 60% or more of the issued and outstanding shares of the Company's capital stock (other than a person who currently owns 60% or more of such stock). Upon the occurrence of a Triggering Event,
Rothwell shall be entitled for a period of ninety (90) days following the date of such Triggering Event to voluntarily terminate his employment upon written notice to the Company. In the event
of such voluntary termination by Rothwell following a Triggering Event, or in the event of the involuntary termination of Rothwell following or in anticipation of a Triggering Event, the Company shall
pay or shall cause the surviving business entity to pay to Rothwell the amounts set forth below as liquidated damages and not as a penalty. Such payments shall be in lieu of any payments to which
Rothwell would otherwise have been entitled pursuant to Section 6 of this Agreement. 

        a.    Rothwell's
full Salary together with all benefits and other compensation through such date; plus 

        b.    an
amount equal to the aggregate Salary to which Rothwell would have been entitled for remainder of the Employment Term to the Normal Expiration Date, all such payments
to be made at the time the same were to become due as if the termination had not occurred; provided that notwithstanding 

7

 

the Normal Expiration Date, such payments shall continue for a minimum period of one year from the date of termination of Rothwell's employment; plus 

        c.    A
special cash bonus in the amount set forth below, which shall be payable in cash in a lump sum within seventy-five (75) days following the date of
Rothwell's termination following a Triggering Event. The amount of the special cash bonus shall vary based on the consideration paid by the acquiring person or entity to acquire the Company or
interest in the Company. If the Company or interest in the Company is acquired for stock or consideration other than cash, the fair market value of such stock or other consideration shall be deemed to
constitute the value of such non-cash consideration. The amounts set forth in the table below shall be proportionately adjusted in the event of any stock split, stock dividend, or similar
event that would equitably require such adjustment. The amounts set forth in the table below shall also be proportionately adjusted in the event that less than all outstanding shares of the Company's
capital stock are sold in connection with any Triggering Event, so that Rothwell shall receive a percentage of the respective amounts set forth in the table below that is equal to the percentage of
the Company's total outstanding shares of capital stock that are sold in connection with the Triggering Event. The amount of the special cash bonus provided for in this Section shall be reduced by an
amount equal to the aggregate amount of Net Cash Flow Payments paid to Rothwell, and the value of non-cash Net Cash Flow Payments credited to Rothwell from and after June 1, 2000
pursuant to Section 4.b. hereof, if any. 

	Price Per Share Paid in

Connection with the

Acquisition of Company Shares
	 	Amount of Special Bonus

	$0 to $19.99	 	$	0
	$20.00 to $24.99	 	$	500,000
	$25.00 to $29.99	 	$	750,000
	$30.00 and Higher	 	$	1,000,000

        d.    Rothwell
shall not be required to mitigate the amount of any payment provided for in this Section 7 by seeking other employment or otherwise, nor shall the amount
of any payment or benefit provided for in this Section 7 be reduced by any compensation or retirement benefits heretofore or hereafter earned by Rothwell as a result of employment by any other
person or business entity. 

        8.    Indemnification. If Rothwell is made a party or is threatened to be made a party to, or is involved in, any action, suit
or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he is or was an employee, officer or director of the Company, or is or was serving at the request of
the Company, Rothwell shall be indemnified and held harmless by the Company to the fullest extent authorized by the Company's Certificate of Incorporation, Bylaws and the General Corporation Law of
the State of Delaware, as the same exists or may hereafter be amended, against all expenses, liability and loss, including attorneys' fees, judgments, fines and amounts paid or to be paid in
settlement, reasonably incurred or suffered by Rothwell directly or indirectly in connection therewith or in connection with any appeal therefrom, so long as Rothwell shall be found to have met the
standard of conduct set forth therein that would allow such indemnification, and such indemnification shall continue as to Rothwell after he has ceased to be an employee, officer or director of the
Company, and shall inure to the benefit of his heirs, executors and administrators. 

        9.    Life Insurance. If requested by the Company, Rothwell shall submit to such physical examinations and otherwise take such
actions and execute and deliver such documents as may be reasonably necessary to enable the Company to obtain life insurance on the life of Rothwell for the benefit of the Company. 

        10.  Confidentiality. Rothwell agrees that in performing under the terms of this Agreement he will have access to confidential
and proprietary information and records of the Company. Rothwell agrees that he shall keep all such information and records confidential and that he shall make no use of any of such information for
any purpose other than the business purposes of the Company. Rothwell agrees that he shall not give or provide such information or records to any third party or use them in any way to compete 

8

 

or to allow a third party to compete with the Company. The provisions of this Section 10 will survive the termination or expiration of this Agreement; provided, however, that Rothwell's
obligations under this Section 10 shall not relate to information and records of the Company that become part of the public domain by publication or otherwise through no fault or action of
Rothwell. 

        11.  Non-competition. In the event Rothwell's employment hereunder is terminated pursuant to Sections 5.d., 5.e.
or 5.f. above, Rothwell will neither directly nor indirectly, including, without limitation, as a paid or unpaid director, officer, agent, representative, employee of, or consultant to, any
enterprise, or by acting as a proprietor of an enterprise, or by holding any direct or indirect participation in any enterprise as an owner, partner, limited partner, joint venturer, stockholder or
creditor, enter into or attempt to enter into any other business activities within the state of Utah of the type and character engaged in, or competitive with that conducted by, the Company during the
remainder of the Employment Term to the Normal Expiration Date, as if such termination had not occurred; provided,
that in the event Rothwell's employment is terminated pursuant to Sections 5.d. or 5.f. hereof, and Rothwell releases the Company from its obligation to make Salary payments to Rothwell pursuant to
Section 6 hereof and Net Cash Flow Payments pursuant to Section 6 or 4.b. and any other payment under this Agreement from and after the date of such release, then this covenant not to
compete shall terminate effective upon the date of such release. Notwithstanding the foregoing, Rothwell's ownership, involvement and participation in any of the Permitted Outside Activities shall not
be deemed to be a violation of this Section 11. The ownership by Rothwell of one percent (1%) or less of the outstanding securities of any corporation engaged in a business competing with the
Company shall not constitute a breach of this Section 11. In the event of a breach by Rothwell of this Section 11, the Company, in addition to all other rights and remedies it may have,
shall be entitled to preliminary and permanent injunctions restraining Rothwell from doing or continuing to do any such act in violation of this Section 11 without showing or proving any actual
damage sustained by the Company, it being acknowledged and agreed by the parties that the business relationships and good will and the opportunity to build upon those relationships is a critical
element of this Employment Agreement and that a breach by Rothwell of this Section 11 cannot be adequately valued in money terms and would cause irreparable injury to the Company for which
money damages will not provide an adequate remedy. The provisions of this Section 11 will survive the termination or expiration of this Agreement. 

        12.  Binding Effect. Rothwell's rights and obligations under this Agreement shall not be transferable by assignment or
otherwise, and any attempt to do any of the foregoing shall be void. The provisions of this Agreement shall be binding upon and inure to the benefit of Rothwell and. his heirs and personal
representatives, and shall be binding upon and inure to the benefit of the Company, its successors and assigns. 

        13.  Miscellaneous. This Agreement is to be governed by the laws of the State of Utah, except with respect to
Section 8, which shall be governed according to the General Corporation Law of the State of Delaware. This Agreement constitutes the full and complete understanding of the parties, and except
as otherwise expressly provided, supersedes all previous agreements on the subject matters hereof, and may be amended only by a writing executed by the parties hereto. All notices hereunder shall be
made in writing and shall be effective when addressed to the Company at its principal place of business or when addressed to Rothwell at his address contained in the Company's personnel records, and
deposited, postage pre-paid and certified, return receipt requested, with the U.S. Postal Service. The section headings of this Agreement are solely for convenience and shall not be
considered in its interpretation. The parties agree that any suit or proceeding in connection with, arising out of, or relating to this Agreement shall be instituted only in a court (whether federal
or state) located in Utah, and the parties, for the purpose of any such suit or proceeding, irrevocably submit to the jurisdiction of any such court in any such suit or proceeding. In any such suit,
the losing party shall pay the prevailing party's costs and expenses of the suit, including reasonable attorneys' fees. 

9

 

 AUTHORIZED SIGNATURES  

        In order to bind the parties to this Agreement, their duly authorized representatives have signed their names on the date first indicated above. 

	THE "COMPANY"

UNITED PARK CITY MINES COMPANY	 	"ROTHWELL"
	

By:	
 	

/s/  JOSEPH S. LESSER      
 JOSEPH S. LESSER	
 	

 	
 	

/s/  HANK ROTHWELL      
 HANK ROTHWELL
	TITLE:	 	CHAIRMAN OF THE BOARD OF DIRECTORS	 	 	 	 

 
 

EXHIBIT "A"
  
    PERMITTED OUTSIDE ACTIVITIES    
  

        The Employment Agreement restricts Rothwell's business activities to those exclusively of the Company, unless specifically approved by the Board of Directors of
the Company. The following business activities of Rothwell are hereby approved by the Board of Directors of the Company: 

        (1)  President
and sole owner of Realty Advisors, Inc. ("RA"). RA holds a brokers license in the State of Utah, and is a member of the Park City Board of Realtors, the
Salt Lake Board of Realtors, and other professional organizations. It is understood that RA will not be actively engaged in the real estate development or brokerage business. 

        (2)  Passive
securities and real estate investments. 

 
 

EXHIBIT "B"
  
    LIST OF PROJECTS OF THE COMPANY AS OF JUNE 1, 2000    
  

	 	1	 	Morning Star Estates Subdivision
	 	2.	 	Hidden Meadows Subdivision
	 	3.	 	Flagstaff Mountain of Deer Valley
	 	4.	 	Bonanza Mountain Resort
	 	5.	 	Snake Creek Acreage
	 	6.	 	Deer Crest/Pioche
	 	7.	 	Ontario Water Company
	 	8.	 	Hailstone Junction
	 	9.	 	Parcel 7.2.b
	 	10.	 	Willow Heights
	 	11.	 	State Park Exchange
	Note: This Exhibit specifically does not include:
	 	1.	 	Company Ski Lease income; and
	 	2.	 	Tunnel maintenance performed for Park City Municipal Corporation.

10

 
 
 

EXHIBIT "C"
  
    COPY OF THE INCENTIVE STOCK OPTION
  AGREEMENT AND THE AMENDMENT THERETO
  
    STOCK OPTION AGREEMENT    
  

        THIS STOCK OPTION AGREEMENT ("Agreement") is entered into as of the 17th day of December, 1991 ("Effective Date") by and between United Park City
Mines Company, a Delaware corporation ("Company") and Hank Rothwell ("Optionee"). 

 
 

RECITALS    
  

        WHEREAS, the Company and Optionee entered into an Employment Agreement ("Employment Agreement"), dated September 1, 1991; 

        WHEREAS,
Optionee is the President and Chief Executive Officer of the Company, and has been so since the 1st day of September, 1991; 

        WHEREAS,
to induce Optionee to become the Company's President and Chief Executive Officer, the Company agreed in the Employment Agreement to grant Optionee, subject to shareholder
approval, an option to purchase up to 400,000 shares of the Company's $.01 par value common stock; 

        WHEREAS,
a majority of the shareholders of the Company approved the stock option at the Company's annual meeting of stockholders held December 17, 1991. 

        NOW,
THEREFORE, in consideration of the mutual covenants contained herein, and other good and valuable consideration, the parties hereto agree as follows: 

1.    Grant of Option.  

        The Company hereby grants to the Optionee the right and option (hereinafter called the "Option") to purchase all or any part of an aggregate of 400,000 shares of
the $0.01 par value common stock of the Company (such number is subject to adjustment as provided in Paragraph 7 hereof and is hereinafter called the "Option Shares") on the terms and
conditions herein set forth. 

2.    Purchase Price.  

        The purchase price of the Option Shares shall be $0.42 per share, which price has been determined by the Board of Directors to be the book value of said shares as
of the last day of the most recently completed fiscal quarter. 

3.    Terms of Option.  

        This Option shall become exercisable on and after the second anniversary of the effective date of the Employment Agreement and shall expire on the fifth
anniversary of the effective date of the Employment Agreement (the "Expiration Date"); provided, however, the above exercise period may be modified to the extent specifically provided by paragraphs 5,
6 and 7, below. The Option may be exercised as to any or all of the available Option Shares. The purchase price of the shares as to which the Option shall be exercised shall be paid in full in cash at
the time of exercise. The Optionee shall not have any of the rights of a shareholder with respect to the Option Shares as to which there has been no exercise of the Option. 

4.    Nontransferability.  

        The Option shall not be transferable otherwise than by will or the laws of descent and distribution, and the Option may be exercised, during the lifetime of the
Optionee, only by the Optionee. More 

11

 

particularly (but without limiting the generality of the foregoing), except as provided in the prior sentence, the Option may not be assigned, transferred, pledged, or hypothecated in any way, shall
not be assignable by operation of law and shall not be subject to execution, attachment or similar process. Any attempted assignment, transfer, pledge, hypothecation or other disposition of the Option
contrary to the provisions hereof, and the levy of any execution, attachment or similar process upon the option, shall be null and void and without effect. 

5.    Termination of Service.  

        In the event that the Employment Agreement is terminated by the Board of Directors of the Company for cause, pursuant to section 5(e) therein, or is
terminated by Optionee with or without cause, pursuant to section 5(g) therein, this Option shall thereafter be exercisable (to the extent that it would have been exercisable by the Optionee on
such termination date) for a period of ninety (90) days following such termination date, but in no event later than the Expiration Date. In the event that the Employment
Agreement is terminated by the Board of Directors of the Company without cause, pursuant to section 5(f) therein, the Option shall become immediately exercisable with respect to all 400,000
shares upon such date and may thereafter be exercised by the Optionee at any time within ninety (90) days after such date, but in no event later than the Expiration Date. Nothing in this
Agreement shall confer any right to election or retention of the Optionee as an officer or director of the Company or any of its subsidiaries. 

6.    Death or Disability of Optionee.  

        If the Employment Agreement is terminated because of the death or disability of the Optionee, pursuant to sections 5(b), 5(c), or 5(d) therein, the option may be
exercised (to the extent that it would have been exercisable by the Optionee on such termination date) by Optionee (or the Optionee's personal representatives, heirs or legatees), at any time within
one (1) year after such termination date, but in no event later than the Expiration Date. 

7.    Adjustments Upon Changes in Capital Structure.  

        In the event of a change in the outstanding stock of the Company by reason of a stock dividend, stock split or reverse stock split, reclassification, or
recapitalization which does not increase the Company's net worth or result in a change in the nature or amount of the Company's assets, the aggregate number and/or class of shares subject to this
option and the exercise price prior to such event shall be appropriately adjusted so as to ensure that if Optionee fully exercises the Option his percentage ownership of the Company's outstanding
stock shall be the same as it would have been if the option had been fully exercised immediately prior to any such change in the outstanding stock of the Company. 

        In
the event of any merger or consolidation of the Company (in which the Company is not the survivor) or any acquisition of fifty percent (50%) or more of its gross assets or stock, or
any reorganization or liquidation of the Company, then the Board of Directors shall be at its complete discretion either to: (a) substitute new options by any successor to the Company
equivalent in value to the Option Shares, without discount in value because the Option Shares are restricted stock; or (b) cancel the option in exchange for the payment of compensation to the
Optionee in an amount equal to the difference between the then fair market value of the non-exercised Option Shares and the aggregate exercise price of the Option Shares. Upon the
dissolution or liquidation of the Company, the Option shall terminate and become null and void, but the Optionee shall have the right immediately prior to such dissolution or liquidation to exercise
the Option, if it would have been exercisable had the Optionee been terminated without cause from employment at such time. 

12

 

8.    Method of Exercising Option; Investment Representation.  

        Subject to the terms and conditions of this Agreement, the Option may be exercised by written notice to the Company at its main office. Such notice shall state
the election to exercise the Option and the number of shares in respect of which it is being exercised and shall be signed by the person or persons so exercising the Option. Such notice shall be
accompanied by payment of the full purchase price of such shares, and the Company shall deliver, or cause to be delivered, a certificate or certificates representing such shares as soon as practicable
after the notice shall be received. The purchase price shall be paid in cash (by check). In the event the Option shall be exercised pursuant to Paragraph 6 hereof, such notice shall be
accompanied by appropriate proof of the right of such person or persons to exercise the Option. The certificate or certificates for the shares as to which the Option shall have been so exercised shall
be registered in the name of the Optionee and shall be delivered as provided above to or upon the written order of the person or persons exercising the Option. All shares that shall be purchased upon
the exercise of the Option as provided herein shall be fully paid and nonassessable. 

        AS
OF THE EFFECTIVE DATE, THE OPTION SHARES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION NOR HAS A LISTING APPLICATION COVERING SAID SHARES BEEN FILED WITH THE
NEW YORK STOCK EXCHANGE OR ANY OTHER STOCK EXCHANGE. The Option Shares may, in the sole discretion of the Board of Directors of the Company, be registered at a future date with the Securities and
Exchange Commission and/or listed on the New York Stock Exchange or another stock exchange. However, the Board of Directors of the Company has no duty or obligation to register such shares with the
Securities and Exchange Commission or to list such shares on the New York Stock Exchange. 

        If
the Company adopts a plan for employees that provides for the grant of stock options, then Rothwell shall have the opportunity to make this Option subject to such plan. The notice
exercising the option shall be in a form satisfactory to the Company and shall affirm that the purchaser is acquiring the shares for the purchaser's own account for investment and not for purposes of
resale or distribution. Unless the Option Shares shall be registered with the Securities and Exchange Commission prior to exercise of the option, all certificates representing said shares shall bear a
conspicuous legend substantially as follows: 

THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE FEDERAL SECURITIES ACT OF 1933. THE SHARES HAVE BEEN ACQUIRED FOR INVESTMENT AND NEITHER SAID SHARES NOR ANY INTEREST
THEREIN MAY BE SOLD OR OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SHARES UNDER THAT ACT, A "NO-ACTION" LETTER OF THE SECURITIES AND EXCHANGE COMMISSION
AS TO SAID SALE OR OFFER, OR AN OPINION OF COUNSEL TO THE CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED AS TO SAID SALE OR OFFER. 

        The
Option shall not be exercisable unless the Option Shares have been qualified or registered under the securities laws of the state in which Optionee resides or are exempt therefrom.
The Company may, if permitted by such state laws, permit the exercise of the Option, but postpone delivery of the Option Shares
and/or payment of the purchase price thereof or may set up an escrow, pending such qualification, registration or exemption under applicable state securities laws. Upon receipt of Optionee's notice to
exercise the option, the Company hereby agrees to use its best efforts to promptly register or qualify under applicable state securities laws the Option Shares or to confirm the existence of an
exemption from such registration or qualification so that the Option may be exercisable, but the Company shall have no liability to Optionee if such registration, qualification or exemption under
applicable state securities laws is not obtained, or is not obtained as promptly as desired by Optionee. 

13

 

9.    Income Tax.  

        It is understood that this option and the Option Shares are not qualified under any particular section of the Internal Revenue Code. Optionee should seek his own
tax advice as to how and when he will be deemed to have received additional employment compensation as a result of this option and/or its exercise. 

10.  Amendments.  

        This Option may be amended only by a written agreement that is signed by both parties hereto. 

11.  Governing Law.  

        This Agreement shall be governed by the laws of the State of Utah. 

 
 

AUTHORIZED SIGNATURES    
  

        In order to bind the parties to the terms and conditions of this Stock Option Agreement, Optionee has executed his name below and the Company has caused its duly
authorized representative to duly execute this Agreement on behalf of the Company. 

UNITED
PARK CITY MINES COMPANY 

/s/  EDWIN L. OSIKA, JR.     

Its: Executive Vice President 

OPTIONEE
/s/  HANK ROTHWELL    

HANK ROTHWELL 

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QuickLinks

Exhibit 10.16 Employment Agreement dated June 1, 2000 by and between United Park City Mines Company and Hank Rothwell

EMPLOYMENT AGREEMENT

EXHIBIT "A" PERMITTED OUTSIDE ACTIVITIES

EXHIBIT "B" LIST OF PROJECTS OF THE COMPANY AS OF JUNE 1, 2000

EXHIBIT "C" COPY OF THE INCENTIVE STOCK OPTION AGREEMENT AND THE AMENDMENT THERETO STOCK OPTION AGREEMENT

RECITALS

AUTHORIZED SIGNATURES

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