Document:

EXHIBIT 10.1
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                PROPERTY PURCHASE AND OPTION AGREEMENT

                                between

                            NB LOT 4, LLC,

                              as Seller,

                                  and

                MAUI BEACH RESORT LIMITED PARTNERSHIP,

                           as Purchaser, and

                             NB LOT 3, LLC

                    [KAANAPALI NORTH BEACH - LOT 4]
                    (KAANAPALI NORTH BEACH - LOT 3]

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                PROPERTY PURCHASE AND OPTION AGREEMENT

     This PROPERTY PURCHASE AND OPTION AGREEMENT (this "Agreement") is
made as of August 4, 2003 (the "Effective Date"), by and between NB LOT 4,
LLC, a Delaware limited liability company ("Seller"), the address of which
is 900 North Michigan Avenue, Suite 1400, Chicago, Illinois 60611, MAUI
BEACH RESORT LIMITED PARTNERSHIP, a Delaware limited partnership
("Purchaser"), the address of which is 900-999 West Hastings Street,
Vancouver, B.C., V6C-2W2 Canada, and NB LOT 3, LLC, a Delaware limited
liability company ("NB3"), the address of which is 900 North Michigan
Avenue, Suite 1400, Chicago, Illinois 60611.

                               RECITALS:
                               --------

     A.    Seller and Intrawest corporation, a corporation continued under
the Canada Business Corporations Act ("Intrawest"), entered into that
certain Property Purchase Agreement dated as of January 16, 2003, as
amended (the "Terminated Agreement"), relating to the sale and purchase of
that certain "Property" and "Additional Property" defined below and in the
Terminated Agreement.

     B.    Pursuant to Section 7(c) of the Terminated Agreement, Intrawest
exercised its right to terminate the Terminated Agreement, thereby
releasing the parties thereto from all further obligations under the
Terminated Agreement, except as expressly provided in said Section 7(c).

     C.    Seller, Purchaser and NB 3 (being an affiliate of Seller)
desire to entire into this Agreement for the sale and purchase of the
Property and the Additional Property, with terms and provisions
substantially similar to, but not identical to, the Terminated Agreement,
and for the granting of an option to purchase that certain "Lot 3" defined
below and in the Terminated Agreement.

     D.    Purchaser, being an entity in which Intrawest has an ownership
interest, and formed by Intrawest for the purpose of purchasing and
acquiring the Property and the Additional Property pursuant to this
Agreement, and for the purpose of acquiring an option to purchase Lot 3
pursuant to this Agreement, acknowledges that it has all of the knowledge
of Intrawest with respect to the Property, the Additional Property and
Lot 3, and that it shall be deemed to have had all of the opportunities
available to Intrawest under the Terminated Agreement to investigate the
Property, the Additional Property and Lot 3 and to evaluate all aspects of
the Property, the Additional Property and Lot 3 as set forth in the
Terminated Agreement and in this Agreement.

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                              AGREEMENT:
                              ---------

     In consideration of the Recitals set forth above, which by this
reference are incorporated herein, the mutual promises and agreements set
forth below, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Seller, Purchaser and NB 3
hereby agree as follows:

     1.    AGREEMENT TO PURCHASE AND SELL.  Purchaser hereby agrees to
purchase from Seller, and Seller hereby agrees to sell and convey to
Purchaser, subject to and in accordance with the terms and conditions set
forth in this Agreement, that certain real property containing
approximately 39.846 acres of land located at Hanakaoo, Honokowai,
Kaanapali, Lahaina, County of Maui, State of Hawaii, being property
identified on the tax maps for the County of Maui as Tax Map Key Nos. (2)
4-4-14:6, (2) 4-4-14:8, and (2) 4-4-14:5 (portion), and being more
particularly described in EXHIBIT "1" attached to this Agreement (the
"Property"), together with all of Seller's right, title and interest in and
to the following property and other rights and interests (the "Additional
Property"):

           (a)   All buildings, structures, fixtures and other
     improvements, if any, located on or under the Property; and

           (b)   All easements, rights-of-way, covenants, restrictions,
     reservations, privileges, licenses and other rights and interests, if
     any, appurtenant to the Property or running with the land comprising
     the Property.

     2.    PURCHASE PRICE.  The purchase price (the "Purchase Price") to
be paid by Purchaser for the Property and the Additional Property shall be
THIRTY-THREE MILLION AND NO/100 U.S. DOLLARS (U.S. $33,000,000.00).  The
Purchase Price shall be payable by Purchaser to Seller as provided below.
All amounts payable hereunder shall be paid in United States dollars by
electronic or wire transfer of immediately available funds, in accordance
with written instructions delivered by Seller or Escrow Agent (as defined
below) to Purchaser, or in such other form as is acceptable to Seller.
Except as otherwise provided in this Agreement, all interest, if any,
accruing on such deposits shall accrue for the benefit of Purchaser.

           (a)   CASH AT CLOSING.  Concurrently with execution of this
     Agreement, and as a condition to Seller's obligations hereunder,
     Purchaser shall deposit into Escrow the sum of SIXTEEN MILLION AND
     N0/100 U.S. DOLLARS (U.S. $16,000,000.00), plus or minus the net
     amount to be paid by, or credited to, Purchaser at Closing under
     Section 6 of this Agreement (the "Cash Payment").

           (b)   PURCHASE MONEY NOTE AND MORTGAGE.  At Closing, the
     balance of the Purchase Price shall be paid by way of a purchase
     money promissory note (the "Purchase Money Note"), in the form
     attached as EXHIBIT "2" to this Agreement, to be executed by
     Purchaser and delivered to Seller at Closing, evidencing Purchaser's
     obligation to pay to Seller the balance of the Purchase Price, in the
     principal amount of SEVENTEEN MILLION AND N0/100 U.S. DOLLARS (U.S.
     $17,000,000.00), which Purchase Money Note shall be secured by a
     purchase money mortgage (the "Purchase Money Mortgage") covering the
     Property and the Additional Property, in the form attached as EXHIBIT
     "3" to this Agreement, to be executed by Purchaser and recorded at
     Closing, and by a UCC Financing Statement (the "UCC Financing
     Statement") relating to the Property, in the form attached as EXHIBIT
     "4" to this Agreement, to be filed at Closing. As shall be more
     particularly described in the Purchase Money Note, (i) interest on
     the unpaid balance of the Purchase Money Note shall accrue at the
     rate of eight percent (8%) per annum for the first two years after
     Closing, and at the rate of ten percent (10%) per annum thereafter
     until the maturity date, and shall be paid monthly in arrears, (ii)
     the maturity date of the Purchase Money Note shall be the earlier to

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     occur of (A) three years after Closing, and (B) sixty days after
     issuance by the County of a special management area use permit for
     development of any portion of the Property, and (iii) the obligation
     to pay principal and interest under the Purchase Money Note shall be
     non-recourse as to Purchaser.  The Purchase Money Mortgage shall at
     all times, until its release in accordance with its terms, constitute
     a first mortgage lien on the Property prior to all other financial
     encumbrances affecting the Property, and subject only to the
     Permitted Exceptions (as defined below). No construction shall occur
     on the Property until payment in full of the Purchase Money Note and
     release of the Purchase Money Mortgage.

     3.    TITLE.

           (a)   DEED.  At the Closing, Seller shall convey the Property
     (and any Additional Property constituting real property) to Purchaser
     by a limited warranty deed (the "Deed"), substantially in the form
     attached as EXHIBIT "5" to this Agreement, which Deed shall convey to
     Purchaser fee simple title subject only to the Permitted Exceptions
     (as defined in Subsection 3(b) below).  Purchaser agrees to and shall
     take title to the Property at Closing subject to the Permitted
     Exceptions.

           (b)   PERMITTED EXCEPTIONS.  Purchaser acknowledges having
     received a preliminary title report dated as of February 14, 2003
     (the "Lot 4 Title Report") covering the Property, issued by Title
     Guaranty of Hawaii, Inc. (the "title company"), a copy of which is
     attached hereto as EXHIBIT "6", and a preliminary title report dated
     as of February 13, 2003 (the Lot 3 Title Report") covering Lot 3 (as
     defined in Section 18 below, and being the parcel of land within
     which the Lot 3 Access Easement (as defined in Section 3(e) below) is
     located), issued by the title company, a copy of which is attached
     hereto as EXHIBIT "22", together with copies of all recorded
     documents and maps referenced in the Lot 4 Title Report and the Lot 3
     Title Report (other than documents related to Seller's Mortgages (as
     defined in Section 6(a)(ii) below), as delivered by Seller to
     Intrawest pursuant to the Terminated Agreement. Attached as EXHIBIT
     "7" to this Agreement is a list of exceptions, reservations,
     easements, and other items which shall be recited or referenced in
     the Deed as permitted encumbrances or exceptions to title and
     exclusions from Seller's limited warranty under the Deed. Except for
     Monetary Liens, Purchaser hereby approves all items listed in Exhibit
     "7" and all other exceptions and defects affecting or encumbering the
     title to the Property, the Additional Property and the area to be
     encumbered by the Lot 3 Access Easement existing as of July 28, 2003.
     All such approved items are referred to in this Agreement as the
     "Permitted Exceptions."

           Prior to Closing, Seller agrees to take the following actions
     with respect to the Permitted Exceptions (and, to the extent
     expressly provide herein, the Permitted Exceptions shall be modified
     accordingly):

                 (i)  Seller shall discharge (or cause to be discharged)
           from the Property Seller's Mortgages and any other mortgages,
           deeds of trust, attachments and monetary liens (excepting
           however the Purchase Money Note, the Purchase Money Mortgage
           and the UCC Financing Statement) ("Monetary Liens").

                 (ii) That certain Warranty Deed dated August 24, 1982
           (Land Court Document No. 1128905; Liber 16531, Page 635)
           referenced in the Lot 4 Title Report includes the following
           provision: "RESERVING AND EXCEPTING to [Pioneer Mill Company,
           Limited ("PMCo")], its successors and assigns forever, as
           appurtenant to the lands of [PMCo] located in the District of
           the Premises now owned or hereafter acquired and used by
           [PMCo], its successors and assigns, in its sugar plantation
           operations, the perpetual right and easement over and upon the

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           Premises to discharge, emit, or transmit surface water runoff,
           noise, smoke, soot, dust, lights, vapors, odors, and other
           substances and phenomena of every description, created by and
           resulting from the reasonable operations of [PMCo], its
           successors and assigns, in burning sugar cane and bagasse,
           milling, generating power, trucking, hauling, and all other
           activities incidental to the operation of a sugar cane
           plantation or alternative energy projects; and Grantee, its
           successors and assigns, do hereby waive any and all claims
           under any law whatsoever against [PMCo] arising therefrom."
           (Such reservation and exception is referred to hereinbelow as
           the "Sugar Plantation Operations Easement".) Seller shall cause
           PMCo, Oahu MS Development Corp., a Hawaii corporation ("OMSD"),
           and Kaanapali Development Corp., a Hawaii corporation ("KDC")
           to execute and record at Closing a document (the "Partial
           Cancellation of Reserved Easement Rights"), in the form
           attached as EXHIBIT "8" to this Agreement, by which PMCo, OMSD
           and KDC release and cancel their respective rights and
           interests in the Sugar Plantation Operations Easement as it
           affects the Property, to the extent the Sugar Plantation
           Operations Easement is broader than Section 14 of this
           Agreement.

                 (iii) With respect to Item No. 12 of Schedule B to the
           Lot 4 Title Report (the "Unrecorded Leases Exception"), the
           Unrecorded Leases Exception shall not be recited in the Deed as
           an exception to title, and at Closing, Seller will provide the
           title company with written confirmation, in such form as has
           been previously provided to the title company by affiliates of
           Seller in similar transactions, as reasonably required by the
           title company for removal of the Unrecorded Leases Exception
           from the title policy (as defined below), if any.

                 (iv) That certain Assignment and Assumption of Rights,
           Interests and Obligations and Reservation of Rights, Interests
           and Obligations dated December 21, 2000 (Land Court Document
           No. 2781514; Document No. 2002-033760), and the related
           unrecorded "KDC Transfer Agreement", referenced in the Lot 4
           Title Report, shall not be recited in the Deed as an
           encumbrance or exception to title.  Seller will provide such
           materials, if any, reasonably required by the title company for
           removal of such items from the title policy, if any.

           (c)   TITLE INSURANCE.  Purchaser may, at its option and
     expense, obtain a binding commitment (the "title commitment"), from
     the title company (or other title insurance company licensed in the
     State of Hawaii), to issue at Closing an owner's policy of title
     insurance (the "title policy") with respect to the Property, with
     such extended coverage and endorsements as Purchaser may require and
     in such amount as Purchaser shall direct but not to exceed the
     Purchase Price, free of all Monetary Liens but subject to the
     Permitted Exceptions.  Without limiting the terms of Section 16(b)
     below, any failure of Purchaser to obtain, prior to or at Closing,
     the title commitment, the title policy, or any other policy of title
     insurance or title assurances, shall not in any way affect
     Purchaser's obligations under this Agreement.

           (d)   ASSIGNMENT OF WASTEWATER CAPACITY.  At Closing, Seller
     shall cause KDC (being an affiliate of Seller) to deliver to
     Purchaser an assignment of a portion of KDC's reserved wastewater
     capacity at the Lahaina Wastewater Treatment Plant, for use relating
     to the Property and for no other purpose, which wastewater capacity
     to be assigned shall be such amount as required by the County of Maui
     for Purchaser's development on the Property of 700 Units (as defined
     in Section 10(c) below) a such lesser number of Units as shall be
     approved by appropriate governmental authorities for development on

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     the Property. Such assignment shall be substantially in the form
     attached as EXHIBIT "9" to this Agreement (the "Assignment of
     Wastewater Capacity"). Purchaser shall agree to and accept such
     assignment as indicated in the Assignment of Wastewater Capacity.

           (e)   LOT 3 ACCESS EASEMENT.  Pursuant to and in accordance
     with the Terminated Agreement, Seller caused the Land Court
     designation of Easement 267 (the "Lot 3 Access Easement") across Lot
     3 for vehicular and other access between the Property and the
     existing intersection at Honoapiilani Highway, located as shown on
     the map attached as EXHIBIT "10" to this Agreement.  At Closing, NB3,
     as the owner of Lot 3, shall execute and deliver, and Purchaser shall
     execute, deliver, and record, a grant of non-exclusive rights,
     appurtenant to the Property, for access, entry feature and
     landscaping purposes upon, over, and across the Lot 3 Access
     Easement, in the form attached as EXHIBIT "11" to this Agreement (the
     "Grant of Lot 3 Access Easement"). The Grant of Lot 3 Access Easement
     shall convey such easement rights to Purchaser subject only to
     Permitted Exceptions (as determined in accordance with Section 3(b)
     of this Agreement), but free of Seller's Mortgages and all other
     Monetary Liens.

     4.    ESCROW.

           (a)   OPENING.  Immediately upon the Effective Date, Seller,
     Purchaser and NB 3 shall open an escrow account ("Escrow") with Title
     Guaranty Escrow Services, Inc. (main office - 235 Queen Street,
     Honolulu, Hawaii) ("Escrow Agent"), for the purchase and sale of the
     Property and delivery of the Lot 3 Option Agreement (as defined in
     Section 18 below) pursuant to this Agreement. Delivery to Escrow
     Agent of a fully executed copy of this Agreement, together with the
     Cash Payment, shall constitute the opening of Escrow.

           This Agreement shall constitute joint escrow instructions to
     Escrow Agent.  Seller, Purchaser and NB 3 agree to execute such
     additional instructions not inconsistent with the provisions of this
     Agreement which may be required by Escrow Agent.  Seller, Purchaser
     and NB 3 agree that, as between Seller, Purchaser and NB 3, if there
     is any conflict between the terms of this Agreement and the
     provisions of any additional escrow instructions required by Escrow
     Agent, the terms of this Agreement shall control.

           (b)   CANCELLATION.  If the Closing fails to occur due to
     Seller's default, including without limitation due to the failure of
     the conditions set forth in subsections 7.1 (a), (b), (c) or (e) of
     this Agreement or due to the failure of the condition set forth in
     subsection 7.1(d) of this Agreement for reasons within the reasonable
     control of Seller, Seller shall pay all Escrow Cancellation Charges.
     If the Closing fails to occur due to Purchaser's default or due to
     the failure of the condition set forth in subsection 7.1(d) of this
     Agreement for reasons within the reasonable control of Purchaser,
     Purchaser shall pay all Escrow Cancellation Charges. If the Closing
     fails to occur for any other reason, including without limitation due
     to the failure of the condition set forth in subsection 7.1(d) of
     this Agreement for reasons beyond the reasonable control of Seller or
     Purchaser, Seller and Purchaser shall each pay one-half of the Escrow
     Cancellation Charges.  As used herein, the term "Escrow Cancellation
     Charges" means all fees, charges, and expenses charged by Escrow
     Agent to Seller or Purchaser in connection with the Escrow, including
     all expenses charged in connection with issuance of the title report
     and other title matters. Nothing contained in this subsection 4(b) is
     intended to limit either Seller or Purchaser from exercising the
     remedies available upon default as set forth in this Agreement.

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     5.    CLOSING.

           (a)   CLOSING DATE.  As used in this Agreement, the term
     "Closing" means the time when the Deed is recorded at the Bureau of
     Conveyances of the State of Hawaii (the "Bureau") and at the Office
     of the Assistant Registrar of the Land Court of the State of Hawaii
     (the "Land Court"), and all other events or actions to occur on the
     Closing Date in accordance with this Agreement (including without
     limitation those to occur upon satisfaction or waiver of the
     conditions set forth in Section 7.1 of this Agreement) are
     consummated.  The "Closing Date" shall be August 5, 2003.

           (b)   CLOSING DOCUMENTATION.  On the Effective Date, Seller,
     Purchaser and/or NB 3, as appropriate, shall deliver to Escrow Agent
     the following documents:

                 (i)  SELLER'S CLOSING DOCUMENTS.  Seller shall deliver
           to Escrow Agent the following documents (the "Seller's Closing
           Documents"):

                      (A)   the Deed, executed and acknowledged by Seller
                 and in recordable form;

                      (B)   the Assignment of Wastewater Capacity,
                 executed and acknowledged by KDC;

                      (C)   the Lot 3/Lot Access Roadway Construction
                 Agreement (as defined in Section 12 below), executed and
                 acknowledged by Seller;

                      (D)   the Lot 4 Unit Count Declaration (as defined
                 in Section 10(c) below), executed and acknowledged by
                 Seller and in recordable form;

                      (E)   the Assignment of SMA Requirements Agreement
                 (as defined in Section 10(b) below), executed and
                 acknowledged by Seller;

                      (F)   the Assignment of Water Quality Monitoring
                 Right of Entry (as defined in Section 11 below), executed
                 and acknowledged by Seller;

                      (G)   the Trade Name License Agreement (as defined
                 in Section 34 below), executed by the Service Mark Holder
                 (as defined in Section 34 below);

                      (H)   such affidavit and indemnity, executed and
                 acknowledged by Seller, in such form as shall be
                 reasonably agreed by Seller and the title company to
                 cause the title company to delete from the title policy,
                 if any, all exceptions for mechanics', materialmen's and
                 similar liens and leases, occupancy agreements and
                 parties in possession (excepting the Water Quality
                 Monitoring Right of Entry);

                      (I)   the Seller's Certificates (as defined in
                 Section 15(a) below);

                      (J)   a certificate of the corporate secretary of
                 the Managing Member (as defined in Section 15(a) below)
                 stating that the Seller's Resolutions (as defined in
                 Section 15 (a) below) were duly adopted by the Managing
                 Member's board of directors and evidencing the incumbency
                 of the officers executing this Agreement and the Seller's
                 Closing Documents on behalf of the Managing Member, as
                 Seller's managing member;

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                      (K)   a certificate of good standing from the State
                 of Hawaii Department of Commerce and Consumer Affairs
                 showing K.DC to be duly authorized to do business in the
                 State of Hawaii and in good standing under the laws of
                 the State of Hawaii;

                      (L)   a certificate of the corporate secretary of
                 KDC stating that its corporate board of directors has
                 duly adopted resolutions authorizing the execution,
                 acknowledgement and delivery, and the performance of its
                 obligations under, the Assignment of Wastewater Capacity
                 and evidencing the incumbency of the officers acting on
                 behalf of such corporation;

                      (M)   such other evidence of the authority of
                 Seller, the Managing Member, KDC, the Service Mark Holder
                 and/or their respective members, officers and
                 representatives acting on their behalf as the title
                 company may reasonably request in connection with
                 Closing;

                      (N)   an affidavit or certification, executed by
                 Seller, in compliance with Internal Revenue Code, Section
                 1445(c) and the applicable regulations;

                      (0)   either (a) a properly executed Hawaii Form
                 N-289 certifying that Seller is a Hawaii resident or
                 Seller has a permanent place of business in Hawaii or is
                 qualified to do business in Hawaii, or (b) a certificate
                 or other evidence as contemplated by the State
                 Withholding Provisions (as defined in subsection 5(c)
                 below).

                            If Seller fails to deliver any such Form
                 N-289 or other evidence, Purchaser shall not be excused
                 from its obligation to consummate the transactions
                 contemplated herein, but rather may deduct and withhold
                 from the Purchase Price an amount equal to five percent
                 (5%) of the sales price of the Hawaii real property
                 conveyed in connection with the transactions contemplated
                 herein, as defined and required by the State Withholding
                 Provisions.  As described in subsection 5(c) below, any
                 amount so withheld shall be deemed to have been paid by
                 Purchaser as a part of the Purchase Price.  Should Seller
                 deliver evidence to Purchaser that the Hawaii Department
                 of Taxation has authorized a partial or total reduction
                 in the amount required to be withheld from the Purchase
                 Price pursuant to the State Withholding Provisions,
                 Purchaser may withhold only the amount required by the
                 Department of Taxation to be withheld, if any, and any
                 amount so withheld shall be deemed to have been paid by
                 Purchaser as part of the Purchase Price;

                      (P)   a tax clearance certificate from the Hawaii
                 Department of Taxation, in compliance with Hawaii Revised
                 Statutes Section 237-43;

                      (Q)   The North Beach CCRs Supplemental Declaration
                 (as defined in Section 9 below), executed and
                 acknowledged by KDC and in recordable form;

                      (R)   The Fill Agreement (as defined in Section
                 10(f) below), executed by PMCo (as defined in Section
                 10(f) below) and/or KDC, as applicable; and

                      (S)   such other documents or instruments as the
                 title company may reasonably request to consummate
                 Closing in accordance with this Agreement.

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                 (ii) PURCHASER'S CLOSING DOCUMENTS.  Purchaser shall
           deliver to Escrow Agent the following documents (the
           "Purchaser's Closing Documents"):

                      (A)   the Deed, executed and acknowledged by
                 Purchaser and in recordable form;

                      (B)   the Lot 3 Option Agreement, executed and
                 acknowledged by Purchaser;

                      (C)   the Memorandum of Lot 3 Option Agreement (as
                 defined in Section 18 below), executed and acknowledged
                 by Purchaser and in recordable form;

                      (D)   the Assignment of Wastewater Capacity,
                 executed and acknowledged by Purchaser;

                      (E)   the Grant of Lot 3 Access Easement, executed
                 and acknowledged by Purchaser and in recordable form;

                      (F)   the Lot 3/Lot 4 Roadway Construction
                 Agreement, executed and acknowledged by Purchaser;

                      (G)   the Lot 4 Unit Count Declaration, executed
                 and acknowledged by Purchaser and in recordable form;

                      (H)   the Assignment of SMA Requirements Agreement,
                 executed and acknowledged by Purchaser;

                      (I)   the Assignment of Water Quality Monitoring
                 Right of Entry, executed and acknowledged by Purchaser;

                      (J)   the Trade Name License Agreement, executed by
                 Purchaser;

                      (K)   the Purchaser' Certificates (as defined in
                 Section 15(c) below);

                      (L)   a certificate of the corporate secretary of
                 the General Partner (as defined in Section 15(c) below)
                 stating that the Purchaser's Resolutions (as defined
                 Section 15(c) below) were duly adopted by the General
                 Partner's board of directors and evidencing the
                 incumbency of the officers executing this Agreement and
                 the Purchaser's Closing Documents on behalf of the
                 General Partner, as Purchaser's general partner;

                      (M)   such other evidence of the authority of
                 Purchaser and/or its officers and representatives as
                 the title company or Seller may reasonably request in
                 connection with Closing;

                      (N)   the Purchase Money Note, executed and
                 acknowledged by Purchaser;

                      (0)   the Purchase Money Mortgage, executed and
                 acknowledged by Purchaser and in recordable form;

                      (P)   the Fill Agreement, executed by Purchaser;
                 and

                      (Q)   such other documents or instruments as the
                 title company may reasonably request to document and
                 consummate Closing in accordance with this Agreement.

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                            (iii) NB 3's Closing Documents.  NB 3 shall
                 deliver to Escrow Agent the following documents ("NB 3's
                 Closing Documents")

                                  (A)  the Lot 3 Option Agreement,
                            executed and acknowledged by NB3;

                                  (B)  the Memorandum of Lot 3 Option
                            Agreement, executed and acknowledged by NB 3
                            and in recordable form;

                                  (C)  the Grant of Lot 3 Access
                            Easement, executed and acknowledged by NB 3
                            and in recordable form;

                                  (D)  the Lot 3 Restrictive Covenant
                            (as defined in Section 13 below), executed
                            and acknowledged by NB 3 and in recordable
                            form;

                                  (E)  NB 3's Certificates (as defined
                            in Section 15(b) below); and

                                  (F)  a certificate of the corporate
                            secretary of the NB 3 Managing Member (as
                            defined in Section 15(b) below) stating that
                            NB3's Resolutions (as defined Section 15(b)
                            below) were duly adopted by the NB 3 Managing
                            Member's board of directors and evidencing
                            the incumbency of the officers executing
                            this Agreement and NB 3's Closing Documents
                            on behalf of the NB 3 Managing Member, as
                            NB 3's managing member.

           (c)   CLOSING OF ESCROW.  On the Closing Date, if the
     conditions precedent set forth in Section 7.1 of this Agreement are
     satisfied or waived in writing by the party benefiting from such
     conditions, Escrow Agent shall disburse to Seller the Purchase Price
     (less the principal amount of the Purchase Money Note, and also less
     Seller's payment of the brokerage commission to Seller's Broker
     pursuant to Section 28 below, and also less Seller's share of the
     closing costs, Escrow Agent's fees, and applicable prorated items
     according to Section 6 of this Agreement), shall record the Deed, the
     Purchase Money Mortgage, the Lot 4 Unit Count Declaration, the Grant
     of Lot 3 Access Easement, the North Beach CCRs Supplemental
     Declaration, the Lot 3 Restrictive Covenant, and the Memorandum of
     Lot 3 Option Agreement at the Bureau and/or at the Land Court, as
     appropriate, and shall deliver the Seller's Closing Documents to
     Purchaser, the Purchaser's Closing Documents to Seller, and NB 3's
     Closing Documents to Purchaser. Seller acknowledges and agrees that
     Purchaser may be required to withhold a portion of the Purchase Price
     pursuant to Section 235-68 of the Hawaii Revised Statutes (the "State
     Code") (Section 235-68 of the State Code, together with any
     regulations now or hereafter promulgated thereunder, being
     collectively referred to herein as the "State Withholding
     Provisions").  Any amount properly so withheld by Purchaser, in
     accordance with subsection 5(b)(i)(0) above, shall be deemed to have
     been paid by Purchaser as part of the Purchase Price.

           (d)   POSSESSION.  Possession of the Property shall be
     delivered to Purchaser at Closing, subject only to such rights to the
     Property constituting or arising out of the Permitted Exceptions.

                                   9

<PAGE>

     6.    CLOSING COSTS AND PRORATIONS. Except as otherwise specifically
provided in this Agreement, Purchaser shall be responsible for all closing
costs incurred by Purchaser, and Seller shall be responsible for all
closing costs incurred by Seller, including each of their respective
attorney's fees.

           (a)   SELLER'S CLOSING COSTS.  At Closing (if not earlier
     paid), Seller shall pay the following:

                 (i)  the cost of the Lot 4 Title Report and the Lot 3
           Title Report, and the cost of the Base (i.e., standard
           coverage) portion of the title policy referenced in Section
           3(c) of this Agreement, if any (excluding the cost of any
           extended coverage or endorsements);

                 (ii) recording fees and other costs, if any, for the
           release of the Property from all Monetary Liens, including
           without limitation (A) Purchase Money Mortgage, Security
           Agreement, and Financing Statement dated September 30, 1998,
           recorded at the Bureau as Document No. 98-146686 and at the
           Land Court as Document No. 2488788, as amended and assigned,
           and (B) Financing Statement dated May 19, 1999, recorded at the
           Bureau as Document No. 99-079392, as assigned, and (C)
           Additional Security Mortgage, Security Agreement, and Financing
           Statement dated November 1, 2000, recorded at the Bureau as
           Document No. 2000-156571 and at the Land Court as Document No.
           2662799, as amended, and (D) Mortgage, Security Agreement and
           Financing Statement dated November 14, 2002, recorded at the
           Bureau as Document No. 2002-203004 and at the Land Court as
           Document No. 2860723, and (E) UCC Financing Statement Recorded
           at the Bureau as Document No. 2002-203005 (collectively,
           "Seller's Mortgages");

                 (iii) recording fees and other costs, if any, for any
           releases, discharges or other curative documents or actions
           which Seller is to deliver and/or take in accordance Section
           3(b) of this Agreement;

                 (iv) any rollback taxes and special assessments assessed
           against the Property as of the Closing Date or payable at
           Closing in connection with the transfer of the Property to
           Purchaser;

                 (v)  any conveyance tax payable in connection with the
           sale by Seller of the Property to Purchaser; and

                 (vi) one-half (1/2) of Escrow Agent's fees.

           (b)   PURCHASER'S CLOSING COSTS.  At Closing (if not earlier
     paid). Purchaser shall pay the following:

                 (i)  all costs of any extended coverage (ALTA or
           otherwise) or endorsements under the title policy, if any, as
           well as all costs of any additional policy or policies of title
           insurance requested by Purchaser or Purchaser's lender, if
           any, in connection with this transaction, and any endorsements
           or extended coverage thereto;

                 (ii) all costs and charges in connection with any
           survey or staking of the Property (other than the Boundary
           Survey referenced in Section 7(b)(ii) below) requested by
           Purchaser or Intrawest in connection with this transaction
           (including, without limitation the ALTA/ACSM Land Title Survey
           of Lot D-l dated March 20, 2003, performed by Erik S. Kaneshiro
           of Austin, Tsutsumi & Associates, Inc.);

                 (iii) all recording fees (except as otherwise specified
           in Section 6(a) above); and

                                  10

<PAGE>

                 (iv) one-half (1/2) of Escrow Agent's fees.

           (c)   OTHER CLOSING COSTS.  Escrow Agent shall apportion all
     other closing costs, if any, in a manner customary for real estate
     transactions of this nature in the State of Hawaii.

           (d)   REAL PROPERTY TAXES.  All real property taxes applicable
     to the Property (other than rollback taxes and special assessments,
     if any) shall be prorated between Seller and Purchaser as of the
     Closing Date. If the current year's taxes have not been determined as
     of the Closing Date, proration shall be based on the previous year's
     taxes, with such proration to be final in all respects.

           (e)   OTHER PRORATIONS.  Other customary prorations, if any,
     shall be prorated between Seller and Purchaser as of the Closing
     Date.

     7.    PURCHASER'S INVESTIGATION OF THE PROPERTY.

           (a)   ACKNOWLEDGMENT OF DUE DILIGENCE PERIOD.  Purchaser
     acknowledges and agrees that Intrawest had, pursuant to the
     Terminated Agreement, from January 16, 2003 to and including May 15,
     2003 (the "Due Diligence Period") to investigate the Property and all
     matters relevant to Purchaser's purchase, acquisition, ownership,
     development and operation thereof, including without limitation the
     right to conduct such independent inspections, investigations,
     analyses and tests, including site inspections, soils tests, surveys,
     environmental site assessments and other customary engineering tests
     and physical examinations of the Property, use, development or other
     permit approval analyses and feasibility studies as Intrawest deemed,
     and Purchaser deems, necessary and appropriate concerning Purchaser's
     ownership and intended use or development of the Property or the
     suitability of the Property for use or development.

           (b)   ACKNOWLEDGMENT OF PROPERTY CONDITION.  Purchaser
     acknowledges and agrees, for Purchaser and Purchaser's successors and
     assigns, that Purchaser has been given, and has had all benefits of,
     a reasonable opportunity to inspect, investigate and evaluate, and
     that it has so investigated and evaluated, the title and condition of
     the Property, the suitability of the Property for Purchaser's
     intended purposes, the existence and effect of liens, encumbrances,
     encroachments, and all other matters affecting the Property and
     relevant to Purchaser's acquisition, ownership, development, and use
     of the Property.  Without limiting the foregoing, Purchaser
     acknowledges that Purchaser is specifically aware of the following
     items relating to or potentially affecting the Property, and has
     reviewed, considered, approved, accepted and agreed to the effects
     thereof on Purchaser's acquisition, ownership and intended use,
     development and sale of the Property:

                 (i)  SUBDIVISION MAP.  Composite Map North Beach
           Subdivision II consolidation of Lot A, B, C, D and 8 and
           Resubdivision of said consolidation into Lots A-l through A-3,
           B-l, C-l, and D-l, Designation of Easements A-l through A-7,
           inclusive, B-l, B-2, C-l, C-2, D-l, and D-2 and Cancellation of
           Easements 1, 2 and 4 through 12, inclusive, as approved by
           Director of Public Works and Waste Management, County of Maui,
           on May 21, 1999 (the "North Beach Subdivision Map"). Purchaser
           acknowledges having received a copy of the North Beach
           Subdivision Map, as delivered by Seller to Intrawest pursuant
           to the Terminated Agreement.

                 (ii) BOUNDARY SURVEY.  Map of Lot D-1 of North Beach
           Subdivision II, dated June 9, 2000 prepared by Masumi
           Fukushima (the "Boundary Survey").  Purchaser acknowledges
           having received a copy of the Boundary Survey, as delivered by
           Seller to Intrawest pursuant to the Terminated Agreement.

                                  11

<PAGE>

                 (iii) 1988 NORTH BEACH SMA.  Special Management Area Use
           Permit and Shoreline Setback Variance (88-SMI-023, 88/SSV-002)
           issued by the County of Maui Planning Commission (Planning
           Director's Reports dated May 24, 1988 and July 19, 1988, and
           Supplemental Director's Report dated July 19, 1988, adopted by
           the County of Maui Planning Commission at its meeting on
           July 19, 1988 as its Findings of Fact, Conclusions of Law,
           Decision and Order), with respect to land generally described
           therein as the Kaanapali North Beach properties (the "Kaanapali
           North Beach Properties"), of which the Property and Lot 3 are
           part (the "1988 North Beach SMA"). Purchaser acknowledges
           having received a copy of the 1988 North Beach SMA, as
           delivered by Seller to Intrawest pursuant to the Terminated
           Agreement.

                 (iv) 1998 KOR SMA SETTLEMENT AGREEMENT.  Settlement
           Agreement dated September 29, 1998, between Kaanapali North
           Beach Venture, Amfac Property Investment Corp. dba Amfac Maui,
           Kaanapali Ownership Resorts, L.P., and Amfac/JMB Hawaii, LLC,
           as Developers, and Robert Buchanan, David Chenoweth, Elizabeth
           Chenoweth, Randy Draper, James Johnson and Joanne Johnson, as
           Intervenors (the "1998 KOR SMA Settlement Agreement").
           Purchaser acknowledges having received a copy of the 1998 KOR
           SMA Settlement Agreement, as delivered by Seller to Intrawest
           pursuant to the Terminated Agreement.

                 (v)  1998 KOR SMA.  Special Management Area Use Permit
           (SM1970006) issued by the County of Maui Planning Commission
           (County of Maui Planning Commission Findings of Fact,
           Conclusions of Law, Decision and Order (Docket No. 88/SMI-023,
           88/SSV-002, SM970006), effective December 14, 1998) (the
           "1998 KOR SMA"). Purchaser acknowledges having received a
           copy of the 1998 KOR SMA, as delivered by Seller to Intrawest
           pursuant to the Terminated Agreement.

                 (vi) SHORELINE SETBACK AREA DECLARATION. Unilateral and
           Irrevocable Declaration of Perpetual Rights and Uses and
           Perpetual Restrictions (North Beach Shoreline Setback Area)
           dated December 29, 1998, recorded at the Bureau as Document No.
           99-005138 and at the Land Court as Document No. 2513420;
           Amendment to Unilateral and Irrevocable Declaration of
           Perpetual Rights and Uses and Perpetual Restrictions (North
           Beach Shoreline Setback Area) dated December 6, 2000, recorded
           at the Bureau as Document No. 2000-170916 and at the Land Court
           as Document No. 2668965 (the "Shoreline Setback Area
           Declaration"). Purchaser acknowledges having received a copy of
           the Shoreline Setback Area Declaration, as delivered by Seller
           to Intrawest pursuant to the Terminated Agreement.

                 (vii) NORTH BEACH UNIT COUNT AND DRAINAGE DECLARATION.
           Unilateral Declaration of Restrictions; Joinder Agreement
           (North Beach Unit Count and Drainage) dated February 15, 2001,
           recorded at the Bureau as Document No. 2001-022448 and at the
           Land Court as Document No. 2683897 (the "North Beach Unit Count
           and Drainage Declaration"). Purchaser acknowledges having
           received a copy of the North Beach Unit Count and Drainage, as
           delivered by Seller to Intrawest pursuant to the Terminated
           Agreement.

                 (viii) SMA REQUIREMENTS AGREEMENT.  Kaanapali North
           Beach/Kaanapali Ocean Resort SMA Requirements Agreement dated
           December 6, 2000, between Amfac Property Investment Corp.,
           Kaanapali Ownership Resorts, L.P., Amfac Property Development
           Corp., Pioneer Mill Company, Limited, and SVO Pacific, Inc.;
           Assignment and Assumption of Kaanapali North Beach/Kaanapali

                                  12

<PAGE>

           Ocean Resort SMA Requirements Agreement dated December 21,
           2000, between Amfac Property Investment Corp., Amfac Hawaii,
           LLC, a Hawaii limited liability company ("AHI") and KDC;
           Assignment and Assumption of Kaanapali North Beach/Kaanapali
           Ocean Resort SMA Requirements Agreement dated November 22,
           2002, between AHI, KDC, NB Lat 2, LLC, NB Lot 3, LLC, and
           Seller (the "SMA Requirements Agreement").  Purchaser
           acknowledges having received a copy of the SMA Requirements
           Agreement, as delivered by Seller to Intrawest pursuant to the
           Terminated Agreement.

                 (ix) LOT 2 UNIT COUNT DECLARATION.  Declaration of
           Covenants, Conditions and Restrictions; Joinder dated December
           6, 2000, recorded at the Bureau as Document No. 2000-170918 and
           at the Land Court as Document No. 2668974; Amendment to
           Declaration of Covenants, Conditions and Restrictions Joinder
           dated January 31, 2003, recorded at the Bureau as Document No.
           2003-018974 and at the Land Court as Document No. 2887174 (the
           "Lot 2 Unit Count Declaration"). Purchaser acknowledges having
           received a copy of the Lot 2 Unit Count Declaration, as
           delivered by Seller to Intrawest pursuant to the Terminated
           Agreement.

                 (x)  KOR UNIT COUNT DECLARATION.  Declaration of
           Restrictions (Unit Count) dated February 15, 2001, recorded at
           the Bureau as Document No. 2001-032604 and at the Land Court as
           Document No. 2688326 (the "KOR Unit Count Declaration").
           Purchaser acknowledges having received a copy of the KOR Unit
           Count Declaration, as delivered by Seller to Intrawest pursuant
           to the Terminated Agreement.

                 (xi) NORTH BEACH CCRs.  Declaration of Covenants,
           Conditions, Easements and Restrictions for Kaanapali North
           Beach dated December 6, 2000, recorded at the Bureau as
           Document No. 2000-170917 and at the Land Court as Document No.
           2668967; Designation of Successor Declarant and Assignment of
           Declarant's Rights and Interests Under Declaration of
           Covenants, Conditions, Easements and Restrictions for Kaanapali
           North Beach dated December 21, 2000, recorded at the Bureau as
           Document No. 2001-022804 and at the Land Court as Document No.
           2684122 (the "North Beach CCRs").  Purchaser acknowledges
           having a copy of the North Beach CCRs, as delivered by Seller
           to Intrawest pursuant to the Terminated Agreement.

                 (xii) SHORELINE ZONE PLAN.  Kaanapali North Beach
           Shoreline Zone Plan, revised November 1997, Revision No. 2
           December 1998, approved by County of Maui Planning Commission
           at its January 26, 1999 meeting (the "Shoreline Zone Plan").
           Purchaser acknowledges having received a copy of the Shoreline
           Zone Plan, as delivered by Seller to Intrawest pursuant to the
           Terminated Agreement.

                 (xiii) EMPLOYEE HOUSING CONCEPT PLAN.  Kaanapali North
           Beach Employee Housing Concept Plan, revised January 1998 (the
           "Employee Housing Concept Plan").  Purchaser acknowledges
           having received a copy of the Employee Housing Concept Plan, as
           delivered by Seller to Intrawest pursuant to the Terminated
           Agreement.

                 (xiv) DRAINAGE MASTER PLAN.  Drainage Master Plan
           Kaanapali - North Beach (Mauka and Makai) dated April 2000,
           prepared by Sato & Associates, Inc. (the "Drainage Master
           Plan").  Purchaser acknowledges having received a copy of the
           Drainage Master Plan, as delivered by Seller to Intrawest
           pursuant to the Terminated Agreement.

                                  13

<PAGE>

                 (xv) RECREATIONAL AND PARK PLAN.  Kaanapali North Beach
           Recreational and Park Plan dated December 1990 (the
           "Recreational and Park Plan").  Purchaser acknowledges having
           received a copy of the Recreational and Park Plan, as delivered
           by Seller to Intrawest pursuant to the Terminated Agreement.

                 (xvi) DESIGN GUIDELINES.  Design Manual Kaanapali Beach
           Resort, North Beach (Revised December 1996), prepared by The
           Odermatt Group, and approved by letter dated December 31, 1996,
           from David W. Blane, Director of Planning, County of Maui (the
           "Design Guidelines"). Purchaser acknowledges having received a
           copy of the Design Guidelines, as delivered by Seller to
           Intrawest pursuant to the Terminated Agreement.

                 (xvii) WATER QUALITY MONITORING RIGHT OF ENTRY.  License
           and Right of Entry Agreement dated May 21, 2002, between KDC,
           AHI and SVO Pacific, Inc. (the "Water Quality Monitoring Right
           of Entry").  Purchaser acknowledges having received a copy of
           the Water Quality Monitoring Right of Entry, as delivered by
           Seller to Intrawest pursuant to the Terminated Agreement.

                 (xviii) KAANAPALI WATER CORPORATION TARIFF.  Kaanapali
           Water Corporation Rules and Regulations Governing Water Service
           to Consumers and Water Rate Schedules (KWC Tariff No. 1),
           effective June 9, 1980 (the "KWC Tariff).  Purchaser
           acknowledges having received a copy of the KWC Tariff, as
           delivered by Seller to Intrawest pursuant to the Terminated
           Agreement.

                 (xix) AIRPORT OPERATIONS; RESIDUE.  Portions of the
           Property, Lot 3 and adjacent properties were previously used as
           an airport and, thus, have been subject to extensive activities
           related to the operation of an airport.  As such, the Property
           and/or Lot 3 may have been exposed to oils, fuels, and other
           residue from airport activities and operations, any of which
           may have a present and continuing effect on the Property, Lot 3
           and/or adjacent properties.

                 (xx) AGRICULTURAL OPERATIONS; RESIDUE.  Portions of the
           Property, Lot 3 and adjacent properties have been subject to
           extensive agricultural production and related agricultural
           activities, and, as such, the Property may have been exposed to
           organic waste, herbicides, and other residue from
           agricultural activities and operations, any of which may have a
           present and continuing effect on the Property, Lot 3 and/or
           adjacent Properties.  Purchaser acknowledges having received a
           copy of a list, prepared by Hawaiian Agricultural Research
           Corporation, previously known as Hawaiian Sugar Planters'
           Association, of chemicals historically used by sugar
           plantations in the operation of cane fields.  Seller makes no
           representations or warranties that all or any of such chemicals
           have been used on the Property, or that the Property has not
           been exposed to chemicals not identified or included on the
           list.

                 (xxi) ALTA SURVEY.  ALTA/ACSM Land Title Survey of Lot
           D-l dated March 20, 2003, performed by Erik S. Kaneshiro of
           Austin, Tsutsumi & Associates, Inc.  Purchaser acknowledges
           having received a copy of the ALTA Survey, as prepared on
           behalf of Intrawest pursuant to the Terminated Agreement.
           Purchaser further acknowledges that, with respect to the
           foregoing items, and all other items provided by Seller or made
           available by Seller to Intrawest in accordance with the
           Terminated Agreement, Seller does not make any warranties or
           representations concerning such matters or the completeness or
           accuracy thereof, except as expressly set forth in Section
           15(a)(xii) of this Agreement.

                                  14

<PAGE>

     7.1   CONDITIONS TO CLOSING.  Without limiting the terms of Section
16(b) below, Purchaser's obligation to purchase the Property pursuant to
this Agreement is conditioned upon each of the following:

           (a)   Seller's representations and warranties contained in or
     made pursuant to this Agreement being true and accurate as of the
     Closing Date, and Seller not being otherwise in material default
     under this Agreement. No event shall occur after the Effective Date
     which, if it had occurred on or before the Effective Date, would have
     rendered Seller's representations and warranties set forth in this
     Agreement materially untrue or incorrect as of the Effective Date.

           (b)   The state of Seller's title at Closing being as required
     by this Agreement, and Seller having possession of the Property on
     the Closing Date subject only to such rights to the Property
     constituting or arising out of Permitted Exceptions.

           (c)   Seller shall have executed, acknowledged where
     appropriate, and/or delivered to the Escrow Agent the Seller's
     Closing Documents, in accordance with this Agreement.

           (d)   There shall occur no material adverse change in the
     physical condition of the Property from the Effective Date through
     the Closing Date.

           (e)   NB 3 shall have executed, acknowledged where appropriate,
     and/or delivered to the Escrow Agent NB 3's Closing Documents, in
     accordance with this Agreement.

           If any of the conditions set forth in this Section 7.1 are not
     satisfied as of the Closing Date, and provided Purchaser is not then
     in default hereunder. Purchaser shall have the right to:  (i) waive
     the condition(s) in question and proceed with Closing in accordance
     with this Agreement; or (ii) terminate this Agreement by written
     notice to Seller; provided, however, that such right shall be
     cumulative with, and not to the exclusion of, any other rights and
     remedies of Purchaser under this Agreement arising out of thaws
     failure to satisfy any such condition.  Upon termination of this
     Agreement in accordance with this Section 7.1 due to the failure of
     the condition set forth in subsection 7.1(d) for reasons beyond the
     reasonable control of Seller, both Seller and Purchaser shall be
     released from all farther obligations under this Agreement, except
     for the continuing indemnity obligations under Section 28 of this
     Agreement and the confidentiality obligations under Section 29 of
     this Agreement.  Upon termination of this Agreement in accordance
     with this Section 7.1 for any reason, all studies, reports and
     information obtained by Purchaser from or through Seller concerning
     the Property shall be immediately returned by Purchaser to Seller.

     8.    CONDITION OF PROPERTY "AS IS".

           (a)   ACKNOWLEDGMENT OF PROPERTY CONDITION.  Purchaser
     acknowledges that it has made, and/or has had the benefit of, such
     independent investigations as Purchaser and Intrawest deemed or deems
     necessary or appropriate concerning Purchaser's intended use,
     development and/or sale of the Property and the suitability of the
     Property for use, development and/or sale, including, but not limited
     to, investigations, and analyses of applicable Regulations (as
     defined in subsection 8(b) below) and Permits (as defined in
     subsection 8(b) below).

                                  15

<PAGE>

           (b)   PURCHASER ACQUIRING PROPERTY "AS IS".  Excepting only the
     representations and warranties of Seller as and to the extent
     expressly set forth in Section 15(a) of this Agreement ("Seller's
     Representations and Warranties"), Purchaser is relying solely upon
     its own inspection, investigation, and analyses of the Property in
     entering into this Agreement and consummating the Closing, and
     Purchaser is not relying in any way upon any representations,
     statements, agreements, warranties, studies, reports, descriptions,
     guidelines, or other information or material furnished by Seller or
     its representatives, whether oral or written, express or implied, of
     any nature whatsoever.  Subject only to Seller's Representations and
     Warranties, PURCHASER IS ACQUIRING THE PROPERTY "AS IS," in its state
     and condition as of Closing. Subject only to Seller's Representations
     and Warranties, no patent or latent condition affecting the Property
     in any way shall affect Purchaser's obligations hereunder, nor shall
     any such condition give rise to any right of damage or rescission
     against Seller or any Amfac-Related Entities. Such conditions may
     include, without limitation, the effect of (including non-compliance
     with) any applicable laws, statutes, rules, regulations, ordinances,
     limitations, restrictions or requirements concerning the use,
     density, location, construction or suitability for use or development
     of the Property or any existing or proposed development or condition
     thereof (collectively the "Regulations"), including but not limited
     to zoning, land use, development plan, subdivision, building,
     construction. Hazardous Materials (as defined below), archaeological,
     historical, environmental, endangered or threatened species, or other
     such Regulations and any Regulations governing the maintenance,
     operation, nonuse or closing of groundwater wells, the diversion,
     discharge or runoff of water, or any other matters relating to water
     use, consumption and development on or affecting the Property or
     other properties; the necessity or availability of any special
     management area permits, development plan amendments, rezoning,
     zoning variances, conditional use permits, building permits,
     environmental impact statements, subdivision maps, condominium public
     reports, timeshare or subdivision registrations, and all other
     governmental permits, approvals, licenses, consents, authorizations,
     waivers or acts (collectively the "Permits"); the necessity and
     existence of all dedications, fees, charges, costs, or assessments
     which may be imposed by the County of Maui, the State of Hawaii, and
     any other governmental or quasi-governmental agencies or entities in
     connection with use or development of the Property; the economic
     value of the Property; the size, dimensions, location, and topography
     of the Property, including its location within any flood zone,
     tsunami inundation zone or designated wetlands; the availability or
     adequacy of access to the Property, or of water, sewage, gas,
     electrical, or other utilities serving the Property; the presence or
     adequacy of infrastructure or other improvements on, near, or
     concerning the Property; the extent or condition of any grading or
     other site work relating to the Property or as may be hereafter
     required for any future development or re-development of the
     Property; any surface, soil, subsoil, geologic, drainage, or
     groundwater conditions or other physical conditions and
     characteristics of or affecting the Property, such as hazardous
     ground conditions, aircraft overflight, traffic, climate, drainage,
     air, water or minerals; water rights, if any, appertaining to the
     Property, including the continuation or validity of any past or
     present diversion, use and/or consumption of water on, from or
     affecting the Property; the identity of the Property as a habitat for
     endangered or threatened species of fauna or flora; the existence on
     or under the Property of any "Hazardous Materials," which, as used in
     this Agreement, shall include any and all substances regulated by, or

                                  16

<PAGE>

     defined as or included in the definition of "hazardous substances,"
     "hazardous wastes," "hazardous materials," or "toxic substances"
     under any and all federal, state or local environmental, water
     pollution, hazardous substance, toxic material or waste law,
     ordinance, rule, regulation, judgment, order, decree or injunction
     applicable to the Property, including, without limitation, the
     Comprehensive Environmental Response Compensation and Liability Act
     of 1980, as amended, 42 U.S.C. Section 9601, et seq., the Resource
     Conservation and Recovery Act, as amended, 42 U.S.C. Section 6901, et
     seq.. the Hazardous Materials Transportation Act, as amended, 49
     U.S.C. Section 1801, et seq., the Clean Water Act, as amended, 33
     U.S.C. Section 1251, et seq., the Toxic Substances Control Act, as
     amended, 15 U.S.C. Section 2601 et seq.. the Safe Drinking Water Act,
     as amended, 42 U.S.C. Sections 300f through 300j, and the Hawaii
     Environmental Response Law, Hawaii Revised Statutes, Chapter 128D
     (collectively "Hazardous Materials Laws"); the existence or condition
     of any surface or underground storage tanks on or under the Property;
     all items and matters disclosed by the Boundary Survey or any other
     survey of the Property; and all other matters concerning the
     condition, use, development, or sale of the Property.  Excepting
     only Seller's Representations and Warranties, Seller makes no
     representation or warranty concerning the Property or any of the
     matters described above.

     9.    NORTH BEACH CCRS.  Purchaser acknowledges that the Property and
Lot 3 (together also with "Lot I", "Lot 2", and "Kahekili Park" of the
Kaanapali North Beach Properties, approximately as shown on the map
attached as EXHIBIT "12" to this Agreement) are subject to the North Beach
CCRs, and subject to the jurisdiction of the Kaanapali North Beach Master
Association, Inc. (the "North Beach Association") formed pursuant to the
North Beach CCRs, and related articles of incorporation and bylaws.
Purchaser, for itself and on behalf of its successors and assigns, agrees,
as of Closing, to comply with, satisfy, and be bound by all of the terms,
conditions and obligations (including, without limitation, assessment
payment obligations) in or under the North Beach CCRs as and to the extent
applicable to ownership, development, and/or use of the Property.
Purchaser further acknowledges that KDC (being an affiliate of Seller) is
the current holder of the interests of the "Declarant" in and under the
North Beach CCRs. Seller shall cause KDC (as the Declarant under the North
Beach CCRs) to execute and record, at Closing, a Supplemental Declaration
(the "North Beach CCRs Supplemental Declaration"), in accordance with
Exhibit "C" to the North Beach CCRs and in the form attached as EXHIBIT
"13" to this Agreement, by which the "Land Points" for Lot 3 and the
Property under the North Beach CCRs shall be reallocated among Lot 3 and
the Property in recognition of the density implications of the intended or
actual development of Lot 3 and the Property.

     10.   USE AND DEVELOPMENT OF PROPERTY.

           (a)   PERMITS AND REGULATIONS.  Purchaser shall be responsible
     for obtaining, at its cost and expense, all Permits (as defined in
     Section 8(b) above) which may from time to time be required for
     Purchaser's use, development or sale of the Property, or portions
     thereof, including the payment or other satisfaction of all fees,
     costs, charges, exactions, and other impositions in connection with
     such Permits, and for compliance, at its cost and expense, with all
     Regulations (as defined in Section 8(b) above) which may from time to
     time relate or apply to Purchaser's use, development or sale of the
     Property.  Seller makes no representations, assurances, or
     warranties in any way relating to the necessity or availability of
     any Permits which may be required or desired in connection with any
     use, development or sale of the Property, including any subdivision
     of the Property or any other proposed use or development of the
     Property by Purchaser. Seller shall not be required to provide any
     assistance or support for, or joinder in, any application or action
     by Purchaser relating to Permits required or desired for Purchaser's

                                  17

<PAGE>

     use, development or sale of the Property, or otherwise in any way
     relating to Purchaser's use of the Property. Provided that Purchaser
     (or its successor(s) in title to all or any part of the Property) is
     not in default under this Agreement, the Purchase Money Note or the
     Purchase Money Mortgage, and is in compliance with the Lot 2 Unit
     Count Declaration and the Lot 4 Unit Count Declaration, Seller agrees
     that it will not actively oppose, object to, intervene in, or
     otherwise interfere with any application for any and all Permits as
     Purchaser requires for development of the Property consistent with
     and in compliance with this Agreement, the North Beach CCRS, and the
     SMA Requirements, and otherwise consistent with permitted or
     accessory uses in residential, resort or hotel land use or zoning
     districts.

           (b)   SMA REQUIREMENTS.  Purchaser acknowledges that the
     Kaanapali North Beach Properties, including the Property and Lot 3,
     or applicable portions thereof, are subject to the terms, conditions
     and requirements contained in the following (collectively, the "SMA
     Requirements"): The 1988 North Beach SMA; the 1998 KOR SMA Settlement
     Agreement; the 1998 KOR SMA; the Shoreline Setback Area Declaration;
     the North Beach Unit Count and Drainage Declaration; and the Lot 2
     Unit Count Declaration. Purchaser, for itself and on behalf of its
     successors and assigns, agrees, as of Closing and at its sole
     responsibility and expense, to comply with and satisfy all SMA
     Requirements relating or applicable to ownership, development, and/or
     use of the Property. Without limiting the foregoing, at Closing all
     rights, interests and obligations of Seller under the SMA
     Requirements Agreement, to the extent such rights, interests and
     obligations pertain to the Property, shall be assigned to Purchaser,
     and Purchaser shall accept and assume all such rights, interests, and
     obligations of Seller in and under the SMA Requirements Agreement, to
     the extent they relate or are applicable to the Property, pursuant to
     an agreement in the form attached as EXHIBIT "14" to this Agreement
     (the "Assignment of SMA Requirements Agreement") to be executed by
     Seller and Purchaser and delivered at Closing.  Further without
     limiting the foregoing or subsection 10(a) above, Purchaser shall be
     responsible for complying with and satisfying, at its expense, any
     and all affordable housing and/or employee housing requirements
     relating to the Property, pursuant to the SMA Requirements or as may
     otherwise be imposed in connection with development and/or use of the
     Property.

           (c)   LOT 4 UNIT COUNT DECLARATION.  Purchaser shall not,
     without the prior written consent of Seller (which consent may be
     withheld or conditioned at the sole and absolute discretion of
     Seller), develop, or construct, or otherwise apply for or obtain any
     Permit for the development or construction of, more than 700 Units
     (as defined below) on the Property.  As used in this Agreement, the
     term "Unit" shall mean a single hotel room or suite hotel room,
     apartment unit, condominium unit, or dwelling of any kind; provided,
     however, that each single hotel room, apartment unit, condominium
     unit, or dwelling incorporating the "lock-off design (which permits
     the unit owner to use a portion thereof as a separate unit, and which
     is sometimes referred to as a "lock-off unit" or convertible
     apartment unit) shall be counted as two Units for purposes of
     determining whether the 700-Unit limit has been exceeded. At Closing,
     Seller and Purchaser shall execute, deliver, and record a declaration
     of restrictions (the "Lot 4 Unit Count Declaration") in the form
     attached as EXHIBIT "15" to this Agreement, reciting the provisions
     of this subsection 10(c) and subsection 10(e) below as covenants
     running with and encumbering the Property for the benefit of Lot 3.

                                  18

<PAGE>

           (d)   INDEMNITY.  Purchaser agrees to and shall indemnify,
     defend and hold harmless Seller and Amfac-Related Entities from and
     against any and all claims, demands, losses, liabilities,
     obligations, penalties, fines, actions, causes of action, judgments,
     suits, proceedings, costs, disbursements, and expenses (including,
     without limitation, reasonable attorneys' and experts' reasonable
     fees and costs) of any kind or nature whatsoever which may at any
     time be imposed upon, incurred or suffered by, or asserted or awarded
     against. Seller or any Amfac-Related Entities related to or arising
     out of any failure by Purchaser after the Closing to satisfy and
     comply with the SMA Requirements, the SMA Requirements Agreement, the
     North Beach CCRs, and the Water Quality Monitoring Right of Entry, as
     and to the extent they relate or are applicable to the Property, or
     the Lot 4 Unit Count Declaration and the Assignment of SMA
     Requirements Agreement.

           (e)   NO OPPOSITION TO LOT 2 OR LOT 3 DEVELOPMENT.  Purchaser
     agrees and covenants that it shall not oppose, object to, intervene
     in, or otherwise interfere with any application for any and all
     permits, consents or approvals from such governmental or
     quasi-governmental authorities as Seller or the applicable
     Amfac-Related Entities, their respective successors and assigns, may
     deem necessary or desirable for the development of Lot 2 or Lot 3 for
     purposes consistent with permitted or accessory uses in residential,
     multiple family, hotel, resort, resort commercial, neighborhood
     business, or similar land use or zoning districts; provided, however,
     that the foregoing covenant by Purchaser shall not preclude Purchaser
     from opposing, objecting to, intervening in, or otherwise interfering
     with any application for any such permit as and to the extent such
     permit would materially and adversely affect or impact (i) the
     drainage for the Property, or (ii) the obligations of Purchaser under
     the SMA Requirements Agreement or any Special Management Area permit
     issued by the County of Maui with respect to the Property.

           (f)   FILL.  Seller shall cause Pioneer Mill Company, Limited
     ("PMCo") (being an affiliate of Seller), as the owner of certain
     lands "mauka", or to east and southeast, of the Property (the "Mauka
     Lands"), to make available to Purchaser, after Closing and within a
     reasonable time after written notice to Seller of actual need
     therefor by Purchaser, up to 55,000 cubic yards of fill material,
     from such site(s) within the Mauka Lands as shall be designated by
     PMCo for transport to and use on the Property in connection with
     Purchaser's development of the Property in accordance with this
     Agreement, and to make reasonable efforts to make available to
     Purchaser up to an additional 55,000 cubic yards of fill material,
     from such site(s) within the Mauka Lands as may be designated by
     PMCo, for transport to and use on the Property or, if Purchaser
     acquires Lot 3 pursuant to the Lot 3 Option Agreement, Lot 3, on and
     subject to the terms and conditions of an agreement (the "Fill
     Agreement") in the form attached as EXHIBIT "16" to this Agreement.
     Purchaser shall execute and deliver the Fill Agreement at Closing,
     and Seller shall cause PMCo to execute and deliver the Fill Agreement
     at Closing.

     11.   WATER QUALITY MONITORING RIGHT OF ENTRY.  Pursuant to the Water
Quality Monitoring Right of Entry, SVO Pacific, Inc. ("SVOP"), as the owner
of Lot 1, has a nonexclusive license and right of entry upon the Property,
and Seller has a nonexclusive license and right of entry upon Lot 1, for
the purpose of conducting certain water quality monitoring activities in
accordance with the 1998 KOR Settlement Agreement and the 1998 KOR SMA. At
Closing, Seller, KDC, and AHI shall assign to Purchaser, and Purchaser
shall assume and accept from Seller, KDC, and AHI, all of their respective
rights and obligations under the Water Quality Monitoring Right of Entry as

                                  19

<PAGE>

such rights and obligations relate to the Property, by executing and
delivering at Closing a document in the form attached as EXHIBIT "17" to
this Agreement (the "Assignment of Water Quality Monitoring Right of
Entry").  Purchaser further agrees that it shall, after Closing and at the
request of Seller, grant to the owners of Lot 2 and Lot 3, a nonexclusive
license and right of entry upon the Property for the purpose of conducting
water quality monitoring activities relating to development of Lot 2 and/or
Lot 3, in accordance with the 1998 KOR Settlement Agreement and the 1998
KOR SMA, on substantially the same terms as provided in the Water Quality
Monitoring Right of Entry.

     12.   CONSTRUCTION OF ACCESS IMPROVEMENTS.  Seller and Purchaser
shall execute and deliver at Closing an agreement (the "Lot 3/Lot 4 Access
Roadway Construction Agreement"), in the form attached as EXHIBIT "18" to
this Agreement

     13.   LOT 3 RESTRICTIVE COVENANT.  NB 3 shall execute, deliver and
record at Closing a declaration of restrictions (the "Lot 3 Restrictive
Covenant"), in the form attached as EXHIBIT "19" to this Agreement.

     14.   ACKNOWLEDGMENT OF ADJACENT ACTIVITIES; WAIVER.  Purchaser
acknowledges that the Property and Lot 3, and any improvements constructed
thereon have been, and/or may continue to be, affected periodically by
noise, dust, smoke, soot, ash, odor, noxious vapors, transmission of
surface water runoff, or other adverse environmental conditions and
nuisances, including but not limited to those attributable to winddrift and
other weather factors (hereafter called the "Surrounding Use Effects"),
attributable to historical or currently existing agricultural use of, and
operations on, the Property, Lot 3 and/or lands in the vicinity of the
Property and Lot 3, which include, but are not limited to: (a) cane
milling, burning, harvesting, tending, as well as fertilization and pest
and weed control; (b) diversified agriculture operations; (c) cattle and
other livestock grazing; (d) quarrying; (e) grading, improvement and
maintenance of adjacent and surrounding properties, including roadways; (f)
electrical transmission lines and facilities within or in the vicinity of
the Property; and (g) irrigation of any and all surrounding lands with
reclaimed water, treated effluent, or other non potable water sources
(hereafter called, collectively, the "Surrounding Operations").  Purchaser,
for itself and its successors and assigns, hereby expressly acknowledges
the risks associated with such Surrounding Operations and the annoyances,
inconveniences, and Surrounding Use Effects and nuisances created thereby,
and expressly waives all rights to any claim against Seller and
Amfac-Related Entities arising out of or in connection with such
activities, annoyances, inconveniences and nuisances, including but not
limited to (i) any right to seek damages attributable thereto, or (ii) the
abatement or elimination thereof; and Purchaser hereby further covenants
and agrees for itself and any person or entity claiming by or through it
and their respective successors and assigns, that neither Seller nor any of
the Amfac-Related Entities shall be responsible or liable to Purchaser, or
any person or entity claiming by or through it and their respective
successors and assigns, for the consequences of the Surrounding Use
Effects. Without limiting the foregoing. Purchaser further understands and
acknowledges that the Hawaii Right to Farm Act (HRS Chapter 165) and Hawaii
law limit the circumstances under which farming operations may be deemed to
be a nuisance.

     15.   WARRANTIES AND REPRESENTATIONS.

           (a)   SELLER'S WARRANTIES.  Seller makes the following
representations and warranties which shall be true and correct as of the
Effective Date and as of the Closing Date:

                                  20

<PAGE>

                 (i)  ORGANIZATION.  Seller is a limited liability
           company duly organized, validly existing and in good standing
           under the laws of the State of Delaware, and Seller's Managing
           Member is KLC Holding Corp., a corporation duly organized,
           validly existing and in good standing under the laws of the
           State of Delaware (the "Managing Member"). Seller and the
           Managing Member are qualified to do business in the State of
           Hawaii. At or prior to Closing, Seller shall deliver to Escrow
           Agent (A) certificates of good standing from the State of
           Delaware, showing Seller and the Managing Member to be in legal
           existence and good standing under the laws of the State of
           Delaware, and (B) certificates of good standing from the State
           of Hawaii Department of Commerce and Consumer Affairs showing
           Seller and the Managing Member to be duly authorized to do
           business in the State of Hawaii and in good standing under the
           laws of the State of Hawaii (collectively, the "Seller's
           Certificates").

                 (ii) AUTHORIZATION.  Seller has full power and authority
           to execute and deliver this Agreement, the Seller's Closing
           Documents and all other documents to be executed and delivered
           by Seller under this Agreement and the authority to perform its
           obligations under this Agreement, the Seller's Closing
           Documents and such other documents. At or prior to Closing,
           Seller shall deliver to Escrow Agent resolutions of the
           Managing Member's board of directors authorizing the execution
           of this Agreement by the Seller and the sale of the Property
           and the performance of Seller's other obligations pursuant to
           the terms of this Agreement and authorizing the person(s)
           executing instruments or agreements relating to such sale to
           execute, acknowledge and deliver this Agreement and the
           Seller's Closing Documents on behalf of the Managing Member, as
           the managing member of Seller (the "Seller's Resolutions").

                 (iii) CONFLICTING OBLIGATIONS.  To Seller's Knowledge,
           neither the execution or delivery of this Agreement and the
           Seller's Closing Documents, nor the consummation of the
           transactions contemplated herein or therein, will conflict
           with, or result in a breach of, (a) any contract, license or
           undertaking to which Seller is a party, (b) any judgment,
           order, decree, or injunction to which Seller is subject, (c)
           any laws or regulations applicable to Seller or the Property,
           or (d) any easements, covenants, restrictions, reservations,
           liens and other matters affecting title to the Property as of
           Closing.

                 (iv) PROCEEDINGS.  Except as may arise after the
           Effective Date, no legal or administrative suit, action or
           proceeding is pending or, to Seller's Knowledge, threatened
           against Seller or the Property which (a) would adversely affect
           the Seller's ability to consummate the transactions as
           contemplated in this Agreement, (b) alleges that the Property
           does not conform to the requirements of any currently
           applicable Permits, laws, regulations, or judicial or
           administrative judgment, orders, decree, or injunction, (c)
           alleges that the Property violates or does not conform with any
           easements, covenants, restrictions, reservations, liens and
           other matters affecting title to the Property, or (d) could
           result in a lien, attachment or lis pendens affecting all or
           any portion of the Property.

                                  21

<PAGE>

                 (v)  CONTRACTS; MECHANIC'S LIENS.  Except as described
           or referenced in this Agreement, to Seller's Knowledge, there
           are no unrecorded contracts affecting the Property which will
           continue to affect the Property after Closing. Seller shall
           cause to be discharged all mechanics' or materialmen's liens,
           if any, arising from any labor or material furnished to the
           Property prior to Closing (except those which may relate to
           Intrawest's activities on or relating to the Property pursuant
           to the Terminated Agreement).

                 (vi) CONDEMNATION, ZONING, ASSESSMENTS.  Except as may
           arise after the Effective Date, to Seller's Knowledge, there
           are no pending or threatened condemnation, zoning, or other
           formal land use regulation proceedings which could materially
           affect the Property, nor has Seller received written notice
           from an authorized taxing authority of any special assessment
           proceedings affecting the Property.

                 (vii) LEASES.  Except as may exist or arise under the SMA
           Requirements, the North Beach CCRs, or the Water Quality
           Monitoring Right of Entry, to Seller's Knowledge, there are no
           leases, tenancy agreements, licenses or occupancy agreements
           affecting or relating to the Property or any unrecorded
           agreements granting any third party the right to use or occupy
           the Property, or any part thereof, which will remain in effect
           after Closing.

                 (viii) FURTHER ENCUMBRANCES.  Except as expressly
           permitted under this Agreement, from and after the Effective
           Date Seller shall not cause or permit the Property or any part
           thereof to be encumbered in any manner which would remain in
           effect after Closing, without the prior written consent of
           Purchaser.

                 (ix) HAZARDOUS MATERIALS.  Except as may result or arise
           after the Effective Date, to Seller's Knowledge, (a) there are
           no Hazardous Materials present on or under the Property in any
           quantity or manner that violates any Hazardous Materials Laws
           in effect as of the Effective Date, and (b) from and after
           December 1, 1988, Seller has not received any written notice
           that the Property is in violation of any Hazardous Materials
           Laws.

                 (x)  LAND USE REQUIREMENTS.  To Seller's Knowledge,
           neither Seller nor any of the Amfac-Related Entities is in
           material default under any of the SMA Requirements, the SMA
           Requirements Agreement, the North Beach CCRs, or the Water
           Quality Monitoring Right of Entry, as and to the extent
           affecting the Property, nor, to Seller's Knowledge, has an
           event occurred which, with notice or the expiration of a grace
           or cure period, would result in a material default by Seller or
           any of the Amfac-Related Entities under any of the SMA
           Requirements, the SMA Requirements Agreement, the North Beach
           CCRs or the Water Quality Monitoring Right of Entry as and to
           the extent affecting the Property.

                 (xi) WASTEWATER CAPACITY.  KDC holds rights to reserved
           wastewater capacity at the Lahaina Wastewater Treatment Plant
           sufficient to assign to Purchaser, pursuant to this Agreement,
           rights to such wastewater capacity as may be required by the
           County of Maui for Purchaser's development on the Property of
           700 Units.

                 (xii) COMPLETENESS OF DOCUMENTS.  To Seller's Knowledge,
           all documents delivered by Seller to Intrawest as referenced in
           this Agreement are true and complete originals or copies of the
           originals of such documents.

                                  22

<PAGE>

                 (xiii) TRADE NAME LICENSE AGREEMENT.  The party that
           shall execute the Trade Name License Agreement as the Service
           Mark Holder shall be the holder of the federally registered
           service mark with respect to the term and word "Kaanapali" and
           shall have full authority to execute and deliver the Trade Name
           License Agreement and to license the use of such service mark.

As used in this Section 15, the term "Seller's Knowledge" means the actual
knowledge of Tamara G. Edwards, senior vice president of Seller, and John
L. Higham, vice-president of Seller (such individuals being most
responsible for accurate information relating to the matters set forth
above), after reasonably diligent and good faith investigations of the
files and records of Seller and the other Amfac Companies (as defined in
Section 17 below), and reasonably diligent inquiries of the current
employees and consultants of Seller and the ether Amfac Companies
responsible for the management, operation and development of the Property
and records relating to the Property, the Additional Property, Lot 3, KDC's
reserved wastewater capacity at the Lahaina Wastewater Treatment Plant and
the items listed in Section 7(b) of this Agreement.

     The representations and warranties of Seller set forth in this
Section 15(a) shall survive Closing for a period of three years, and, upon
the expiration of such three-year period, said representations and
warranties shall be of no further force and effect, Purchaser shall have no
further rights or remedies thereunder, and Seller shall have no further
liability with respect thereto.

           (b)   NB 3's WARRANTIES.  NB 3 makes the following
     representations and warranties which shall be true and correct as of
     the Effective Date and as of the Closing Date:

                 (i)  ORGANIZATION.  NB 3 is a limited liability company
           duly organized, validly existing and in good standing under the
           laws of the State of Delaware, and NB 3's managing member is
           KLC Holding Corp., a corporation duly organized, validly
           existing and in good standing under the laws of the State of
           Delaware (the "NB 3 Managing Member"). NB3 and the NB3 Managing
           Member are qualified to do business in the State of Hawaii.  At
           or prior to Closing, NB 3 shall deliver to Escrow Agent (A)
           certificates of good standing from the State of Delaware,
           showing NB 3 and the NB 3 Managing Member to be in legal
           existence and good standing under the laws of the State of
           Delaware, and (B) certificates of good standing from the State
           of Hawaii Department of Commerce and Consumer Affairs showing
           NB 3 and the NB 3 Managing Member to be duly authorized to do
           business in the State of Hawaii and in good standing under the
           laws of the State of Hawaii (collectively, "NB3's Certifi-
           cates").

                 (ii) AUTHORIZATION.  NB 3 has full power and authority
           to execute and deliver this Agreement, NB 3's Closing Documents
           and all other documents, if any, to be executed and delivered
           by NB 3 under this Agreement and the authority to perform its
           obligations under this Agreement, NB 3's Closing Documents and
           such other documents.  At or prior to Closing, NB 3 shall
           deliver to Escrow Agent resolutions of the NB 3 Managing
           Member's board of directors authorizing the execution of this
           Agreement and NB3's Closing Documents by NB3 and authorizing
           the person(s) executing such instruments to execute,
           acknowledge and deliver this Agreement and NB3's Closing
           Documents on behalf of the NB 3 Managing Member, as the
           managing member of NB 3 ("NB 3's Resolutions").

                                  23

<PAGE>

                 (iii) CONFLICTING OBLIGATIONS.  To the knowledge of NB3,
           neither the execution or delivery of this Agreement and NB 3's
           Closing Documents, nor the consummation of the transactions
           contemplated herein or therein, will conflict with, or result
           in a breach of, (a) any contract, license or undertaking to
           which NB 3 is a party, (b) any judgment, order, decree, or
           injunction to which NB 3 is subject, (c) any laws or
           regulations applicable to NB 3 or Lot 3, or (d) any easements,
           covenants, restrictions, reservations, liens and other matters
           affecting title to NB 3 as of Closing.

           (c)   PURCHASER'S WARRANTIES.  Purchaser makes the following
     representations and warranties which shall be true and correct as of
     the Effective Date and as of the Closing Date:

                 (i)  ORGANIZATION.  Purchaser is a limited partnership
           duly organized, validly existing and h good standing under the
           laws of the State of Delaware, and Purchaser's general partner
           is Northwest Maui Corporation, a Delaware corporation duly
           organized, validly existing and in good standing under the laws
           of the State of Delaware (the "General Partner"). Purchaser and
           the General Partner are qualified to do business in the State
           of Hawaii.  At or prior to Closing, Purchaser shall deliver to
           Escrow Agent (A) a certificate of good standing from the State
           of Delaware showing Purchaser to be in legal existence and in
           good standing under the laws of the State of Delaware, and (B)
           a certificate of good standing from the State of Delaware
           showing the General Partner to be in legal existence and in
           good standing under the laws of the State of Delaware, and
           (C) certificates of good standing from the State of Hawaii
           Department of Commerce and Consumer Affairs showing Purchaser
           and the General Partner to be duly authorized to do business in
           the State of Hawaii and in good standing under the laws of the
           State of Hawaii (collectively "Purchaser's Certificates").

                 (ii) AUTHORIZATION.  Purchaser has full power and
           authority to execute and deliver this Agreement, and Purchaser
           shall have full power and authority to execute and deliver the
           Purchaser's Closing Documents and all other documents to be
           executed and delivered by Purchaser under this Agreement and
           the authority to perform Purchaser's obligations under this
           Agreement.  At or prior to Closing, Purchaser shall deliver to
           Escrow Agent a resolution of the General Partner's board of
           directors authorizing the purchase of the Property and the
           performance of Purchaser's other obligations pursuant to the
           terms of this Agreement and authorizing the person(s) executing
           instruments or agreements relating to such purchase to execute,
           acknowledge and deliver the Purchaser's Closing Documents on
           behalf of the General Partner, as general partner of Purchaser
           (the "Purchaser's Resolutions").

                 (iii) BINDING OBLIGATIONS; CONFLICTING AGREEMENTS.  This
           Agreement and all documents required hereby to be executed by
           Purchaser are and shall be valid, legally binding obligations
           and enforceable against Purchaser in accordance with their
           terms.  Each of the persons signing this Agreement and all such
           other documents on behalf of Purchaser is and shall be
           authorized to do so.  To Purchaser's knowledge, neither the
           execution or delivery of this Agreement, the Purchaser's
           Closing Documents or such other documents, nor the consummation
           of the transactions contemplated herein, will conflict with, or
           result in a breach of, (a) any contract, license, or
           undertaking to which Purchaser is a party, (b) any judgment,
           order, decree, or injunction to which Purchaser is subject, and
           (c) any laws or regulations applicable to Purchaser.

                                  24

<PAGE>

                 (iv) PROCEEDINGS; VIOLATIONS.  No legal or administra-
           tive suit, action or proceeding is pending or, to Purchaser's
           knowledge, threatened against Purchaser which would adversely
           affect its ability to consummate the transactions as
           contemplated in this Agreement.

     16.   DEFAULT AND REMEDIES.

           (a)   PURCHASER'S DEFAULT/SELLER'S REMEDIES.  In the event of
     Purchaser's default in the performance of any obligation or covenant
     under this Agreement which causes the Closing not to take place in
     accordance with this Agreement (including, without limitation, the
     timely deposit of the Purchase Price and Purchaser's Closing
     Documents in strict accordance with this Agreement), Seller shall be
     released from any obligation to sell or otherwise convey the Property
     to Purchaser, and NB3 shall be released from any obligation to
     deliver the Lot 3 Option Agreement or to sell Lot 3 to Purchaser, and
     Seller may further avail itself of any and all remedies available to
     it at law or in equity. In the event of Purchaser's default in the
     performance of Purchaser's obligations under this Agreement which
     does not prevent the Closing from occurring, or of any other
     obligation or covenant of Purchaser under this Agreement after the
     Closing Date, Seller may avail itself of any and all remedies
     available to it at law or in equity. Seller shall have no right to
     seek punitive damages from Purchaser by reason of a default
     hereunder, and Seller hereby expressly waives any such right.

           (b)   SELLER'S DEFAULT/PURCHASER'S REMEDIES.  In the event of
     Seller's default in the performance of any obligation or covenant
     under this Agreement which causes the Closing not to take place in
     accordance with this Agreement, Purchaser, at its election, may: (i)
     avail itself of the equitable remedy of specific performance (to the
     extent reasonably capable of performance); or (ii) in addition to,
     but not to the exclusion of. Purchaser's rights and remedies under
     subsection 16(b)(iv) hereinbelow, terminate this Agreement (except
     for indemnity obligations under the Right-of-Entry Agreement and
     Section 28 of this Agreement and confidentiality obligations under
     Section 29 of this Agreement) by written notice to Seller; or (iii)
     waive the default and proceed with the purchase of the Property in
     accordance with this Agreement; or (iv) avail itself of any other
     remedy available to it at law or in equity (provided, however, that
     the liability of Seller and any of the Amfac-Related Entities for
     damages shall not exceed Purchaser's Actual Damages (as hereinafter
     defined), it being understood and agreed that Purchaser shall not be
     entitled to recover (A) consequential damages of any kind, including
     but not limited to bst profits and/or lost business opportunities,
     (B) special damages, or (C) punitive damages and/or exemplary
     damages, or (D) any other damages in excess of Purchaser's Actual
     Damages, however defined, alleged, plead or denominated).  In the
     event of Seller's default in the performance of any obligation or
     covenant of Seller under this Agreement which does not prevent the
     Closing from occurring, or of any other obligation or covenant of
     Seller under this Agreement after the Closing Date, Purchaser may
     avail itself of any and all remedies available to it at law or in
     equity (provided, however, that the liability of Seller and any of
     the Amfac-Related Entities for damages and/or penalties shall not
     exceed, in the aggregate, the amount of the Purchase Price).
     Notwithstanding anything to the contrary contained in this Agreement
     or elsewhere, no parent, owner, affiliate, stockholder, member,
     director, officer, or board member of Seller or any of the
     Amfac-Related Entities shall have any personal liability pursuant to

                                  25

<PAGE>

     or in connection with this Agreement or the sale of the Property.
     For the purposes of this Section 16(b), "Purchaser's Actual Damages"
     shall mean and be limited to reimbursement to Purchaser for all out
     of pocket costs and expenses actually paid or incurred by Purchaser
     for negotiation of this Agreement and for investigation of the
     Property and preparation for the Closing pursuant to this Agreement
     (in an aggregate amount not exceeding $200,000.00), plus other actual
     damages, if any, available to Purchaser not exceeding, in the
     aggregate, an additional $500,000.00.

           (c)   FEES AND COSTS.  In any action at law or equity between
     Seller and Purchaser occasioned by a default hereunder, the
     prevailing party shall be entitled to collect its reasonable
     attorney's fees and court costs actually incurred in the action from
     the non-prevailing party.

     17.   AMFAC-RELATED ENTITIES.  As used in this Agreement,
"Amfac-Related Entities" shall mean Seller, NB3, AHI, KDC, Kaanapali Land,
LLC, a Delaware limited liability company, Oahu MS Development Corp., a
Hawaii corporation, Amfac Property Investment Corp., a Hawaii corporation,
KLC Holding Corp., a Delaware corporation. Pioneer Mill Company, Limited, a
Hawaii corporation, and NB Lot 2, LLC, a Delaware limited liability company
(collectively, the "Amfac Companies"), and any officer, director, member,
representative, employee, and/or agent thereof.

     18.   OPTION TO PURCHASE LOT 3.  Subject to and effective only upon
Closing, and in consideration of the sum of ONE HUNDRED AND N0/100 U.S.
DOLLARS (U.S. $100.00) to be paid by Purchaser to NB 3 at Closing, NB 3 and
Purchaser shall execute and deliver an option agreement (the "Lot 3 Option
Agreement"), in the form attached as EXHIBIT "20" to this Agreement, by
which Purchaser shall have an option to purchase from NB 3, on and subject
to the terms and conditions set forth in the Lot 3 Option Agreement, that
certain parcel of land, with an area of 26.692 acres, situate at Kaanapali,
District of Lahaina, Island and County of Maui, State of Hawaii, being the
property identified on the tax maps for the County of Maui as Tax Map Key
No. (2) 4-4-14:5, and being more particularly described in EXHIBIT "21"
attached to this Agreement ("Lot 3"). NB 3 and Purchaser shall execute and
record, at Closing, a short form memorandum of the Lot 3 Option Agreement
(the "Memorandum of Lot 3 Option Agreement"), in the form attached as
EXHIBIT "23" to this Agreement.

     19.   TRANSFER OR ASSIGNMENT OF THIS AGREEMENT.  Purchaser shall not
voluntarily or by operation of law assign, sell, or transfer any right,
interest or obligation under this Agreement without Seller's express prior
written consent, which consent may be given or withheld in the sole and
absolute discretion of Seller. Except as otherwise expressly provided in
writing signed by Seller, no assignment by Purchaser shall be construed or
interpreted as a release of Purchaser from any of its obligations under
this Agreement, including the observance and performance of all terms,
conditions and obligations contained in this Agreement, or from any
liability for the failure to so observe or perform. Any attempted
assignment of any or all of Purchaser's rights, interests or obligations
under this Agreement without Seller's prior written consent shall be null
and void.  Seller may assign its rights and obligations hereunder, to an
affiliated entity in connection with a transfer of the Property thereto,
and/or NB 3 may assign its rights and obligations hereunder, to an
affiliated entity in connection with a transfer of Lot 3 thereto, without
the approval or consent of Purchaser.

                                  26

<PAGE>

     20.   BINDING EFFECT.  All of the obligations of Purchaser as
contained in this Agreement shall be binding upon and enforceable against
each person or entity identified as Purchaser herein, and their respective
heirs, successors and assigns.  All of the obligations of Seller as
contained in this Agreement shall be binding upon and enforceable against
each person or entity identified as Seller herein, and their respective
successors and assigns, and against any person or entity to whom all or any
portion of the Property may be transferred before the Closing. All of the
obligations of NB 3 as contained in this Agreement shall be binding upon
and enforceable against each person or entity identified as NB 3 herein,
and their respective successors and assigns, and against any person or
entity to whom all or any portion of Lot 3 may be transferred.

     21.   TIME OF ESSENCE.  Time is of the essence of each and every
provision of this Agreement.

     22.   NOTICES.  Any notice, consent, waiver, demand, request, or
other instrument or communication to be given to or served upon any party
hereto in connection with this Agreement must be in writing, and may be
given by personal delivery or by certified or registered mail or by
facsimile transmission followed by confirming "hard copy," and shall be
deemed to have been given and received upon receipt, in the case of notice
by personal delivery or facsimile transmission, or seven calendar days
after a certified or registered letter containing such notice, properly
addressed, with postage prepaid, is deposited in the United States mail.
Such notices shall be given to the parties hereto at the following
addresses:

     If to Seller:          NB Lot 4, LLC
                            c/o KLC Holding Corp.
                            700 Bishop Street, Suite 501
                            Honolulu, Hawaii 96813
                            Attention: Tamara G. Edwards
                            Fax No.: (808) 543-8528

     With a copy to:        Scott D. Radovich
                            Case Bigelow & Lombardi
                            737 Bishop Street, Suite 2600
                            Honolulu, Hawaii 96813
                            Fax No.: (808) 523-1888

     If to Purchaser:       Intrawest Corporation
                            200 Burrard Street, Suite 800
                            Vancouver, B.C. V6C 3L6
                            Attention: Gary Raymond and Ross Meacher
                            Fax No.: (604) 669-0605

     With a copy to:        Jacobs Chase Frick Kleinkopf & Kelley, LLC
                            1050 17th Street, Suite 1500
                            Denver, CO 80265
                            Attention: Steven Cohen, Esquire
                            Fax No.: 303-685-4869

     If to NB 3:            NB Lot 3, LLC
                            c/o KLC Holding Corp.
                            700 Bishop Street, Suite 501
                            Honolulu, Hawaii 96813
                            Attention: Tamara G. Edwards
                            Fax No.: (808) 543-8528

     With a Copy to:        Scott D. Radovich
                            Case Bigelow & Lombardi
                            737 Bishop Street, Suite 2600
                            Honolulu, Hawaii 96813
                            Fax No.: (808) 523-1888

                                  27

<PAGE>

Any party hereto may, at any time by giving five days' written notice to
the other party hereto, designate any other address in substitution of or
in addition to the foregoing address to which such notice shall be given.

     23.   ENTIRE AGREEMENT.  This Agreement constitutes the entire
agreement between Seller, Purchaser and NB 3 relating to the transactions
covered by this Agreement, and all prior and contemporaneous agreements,
representations, negotiations, and understandings of Seller, Purchaser and
NB3, oral or written, are hereby superseded and merged herein.  No agent,
representative, salesman, or officer of either Seller, Purchaser or NB3 has
any authority to make, or has made, any statements, agreements, or
representations, either oral or in writing, express or implied, modifying,
adding to, or changing the terms and conditions of this Agreement, and
neither Seller, nor Purchaser nor NB 3 has relied upon any representations
not set forth in this Agreement. No dealings between or among any of
Seller, Purchaser and NB 3 or custom shall be permitted to contradict, add
to, or modify the terms of this Agreement.  No waiver or amendment of the
provisions of this Agreement shall be effective unless in writing and
signed by all of Seller, Purchaser and NB3.  This Section 23 shall not be
construed or interpreted as affecting the validity of any instrument
executed by Seller and Purchaser in the form of any of the exhibits
attached to this Agreement, or as otherwise required to consummate the
transaction as contemplated by this Agreement.

     24.   SURVIVAL.  Except for Sections 1, 2, 3, 4, 5, 6 and 7.1, which
shall be merged into the Deed, all provisions of this Agreement shall
survive Closing.

     25.   NO WAIVER.  No waiver by Seller, Purchaser or NB 3 of a breach
of any of the terms, covenants, or conditions of this Agreement by the
other shall be construed or held to be a waiver of any succeeding or
preceding breach of the same or any other term, covenant, or condition
contained herein.  No waiver of any default by Seller, Purchaser or NB 3
hereunder shall be implied through any omission by the other to take any
action on account of such default if such default persists or is repeated,
and no express waiver shall affect a default other than as specified in
such waiver.  The consent or approval by either Seller, Purchaser or NB 3
to or of any act by the other requiring consent or approval shall not be
deemed to waive or render unnecessary the consenting party's consent or
approval to or of any subsequent similar acts by the other party.

     26.   COUNTERPARTS.  This Agreement may be executed in one or more
counterparts.  It shall be fully executed when each party whose signature
is required has signed at least one counterpart even though no one
counterpart contains the signature of all the parties.  Each executed
counterpart shall be deemed an original, but all of which together shall
constitute one and the same Agreement.

     27.   FACSIMILE SIGNATURES.  Seller, Purchaser and NB3 agree that
facsimile signatures on this Agreement and any addenda or other documents
related to this Agreement shall be binding and effective for all purposes
and treated in the same manner as physical signatures.  Notwithstanding the
foregoing, Seller, Purchaser and NB 3 agree that they will promptly forward
physically signed copies of this Agreement and such other documents to
Escrow Agent.  However, this Agreement and any other documents containing
facsimile signatures shall remain binding and effective even if the
original documents are not received by Escrow Agent. The parties understand
that they are required to physically sign the Deed, the Lot 4 Unit Count
Declaration, the Grant of Lot 3 Access Easement and any other document
affecting an interest in real property, for recordation purposes.

                                  28

<PAGE>

     28.   BROKERAGE.  Seller has agreed to pay a brokerage commission to
CB Richard Ellis Hawaii, Inc. ("Seller's Broker") relating to the sale of
the Property to Purchaser pursuant to this Agreement.  Seller hereby
instructs Escrow Agent to pay such commission to Seller's Broker from the
Purchase Price to be otherwise disbursed to Seller at Closing in accordance
with this Agreement.  In no event shall such commission, or any part
thereof, be paid or payable to Seller's Broker unless and until Closing
occurs in accordance with this Agreement, regardless of whether Closing is
prevented or does not occur by reason of Seller's default or otherwise.

     Except as specifically referenced above in this Section 28, Seller
and Purchaser each represents to the other that each has not entered into
any agreement, incurred any obligation, or knows of any facts which might
result in an obligation from any party to pay a sales or brokerage
commission or finder's fee in connection with the purchase and sale
contemplated by this Agreement.  Purchaser agrees to and shall indemnify,
defend, and hold harmless Seller and Amfac-Related Entities from and
against any loss, liability, cost, claim, demand, damage, action, cause of
action, and suit arising out of or in any manner relating to the
employment, engagement or use by Purchaser of any consultant, advisor,
broker, or sales or marketing agent in connection with the purchase, sale
and option contemplated by this Agreement. Seller agrees to and shall
indemnify, defend, and hold harmless Purchaser from and against any loss,
liability, cost, claim, demand, damage, action, cause of action, and suit
arising out of or in any manner relating to the employment, engagement or
use by Seller or Amfac-Related Entities of any consultant, advisor, broker,
or sales or marketing agent in connection with the purchase, sale and
option contemplated by this Agreement.  This Section 28 shall be binding on
Purchaser and Seller whether or not Closing occurs, and shall survive
Closing.

     29.   CONFIDENTIALITY.  Purchaser, and Seller agree to maintain the
confidentiality as to the terms and conditions of this Agreement, except
such disclosures to attorneys, accountants, consultants, lenders,
investors, and others as are reasonably required in order to consummate the
transactions contemplated in this Agreement, or otherwise required by
governmental authority or a court with appropriate jurisdiction. Purchaser
and Seller shall instruct their respective consultants, affiliates,
professionals, lenders, and others engaged by them in connection with the
transactions contemplated in this Agreement to abide by the confidentiality
provisions of this Section 29. All information, studies, and reports
relating to the Property obtained by Purchaser, either by the observations
and examinations of its agents and representatives or as disclosed to it by
or through Seller, shall remain confidential, and if the transaction
contemplated herein fails to close for any reason, all such information,
reports, and studies obtained by Purchaser from or through Seller shall be
immediately returned by Purchaser to Seller, and all copies thereof
destroyed, and Purchaser shall make no further distributions, disclosures
or other use of any such information, reports, and studies.  All press
releases  and other publicity  and  public communications relating to this
Agreement, and the method of release thereof, shall require prior approval
of Seller, which approval shall not be unreasonably withheld or delayed.
This Section 29 shall be binding on Purchaser and Seller whether or not
Closing occurs, and shall survive Closing.

     30.   NO JOINT VENTURE.  It is hereby acknowledged by Purchaser and
Seller that any relationship between them created hereby is not intended to
be and shall not in any way be construed to be that of a partnership, joint
venture, or principal and agent. It is hereby further acknowledged that any
rights reserved herein by Seller with respect to the Property or any
documents or matters related thereto is solely for the purpose of either
securing Seller's interest in this transaction or protecting Seller's
property interests and values.  Any approvals or other action by Seller
pursuant to this Agreement, or any document related thereto, is solely for
Seller's benefit, and no person or entity may rely upon Seller's approvals
or actions hereunder for any other purpose.

                                  29

<PAGE>

     31.   FURTHER ASSURANCES.  Each of the parties shall execute and
deliver all additional papers, documents, and other assurances, and shall
do all acts and things, reasonably necessary in connection with the
performance of their respective obligations hereunder to carry out the
intent of this Agreement.

     32.   CAPTIONS.  Captions given to various sections in this
Agreement, and terms used for definition purposes herein, are for
convenience and reference purposes only and are not intended to and shall
not modify or affect the meaning, construction, or interpretation of any of
the substantive provisions hereof.

     33.   APPLICABLE LAW.  This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Hawaii.

     34.   USE OF KAANAPALI NAME.  Purchaser acknowledges that the term
and word "Kaanapali" is a federally registered service mark of Seller or
certain of the Amfac-Related Entities ("Service Mark Holder").  Purchaser
shall not, without the prior written consent of the Service Mark Holder,
which consent may be withheld or conditioned in the sole and absolute
discretion of the Service Mark Holder, use the word "Kaanapali", or any
trade name, trade mark, service mark, or logotype held or used by Seller or
Amfac-Related Entities related thereto, in connection with the acquisition,
ownership, use, development, or sale of the Property. At the Closing,
Seller shall cause the Service Mark Holder to execute and deliver to
Purchaser, and Purchaser shall execute and deliver to the Service Mark
Holder, an agreement, in the form attached as EXHIBIT "24" to this
Agreement (the "Trade Name License Agreement"), pursuant to which the
Service Mark Holder shall license to Purchaser the right to use, or
otherwise agree with Purchaser as to use of, the word "Kaanapali" and the
trade name "Kaanapali North Beach" for such purposes, and on such terms and
conditions, as shall be set forth in the Trade Name License Agreement.

     35.   INCORPORATION OF EXHIBITS. Exhibits "1", "2", "3", "4", "5",
"6", "7", "8", "9", "10", "11", "12", "13", "14", "15", "16", "17", "18",
"19", "20", "21", "22", "23" and "24" to this Agreement are incorporated
into this Agreement by this reference.

                                  30

<PAGE>

     Seller, Purchaser and NB 3 have executed this Agreement as of the
Effective Date.

                            NB LOT 4, LLC

                            By:   KLC Holding Corp., a Delaware
                                  corporation, its Managing Member

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

                                                              Seller

                            MAUI BEACH RESORT LIMITED
                            PARTNERSHIP,
                            a Delaware limited partnership

                            By:   NORTHWEST MAUI CORPORATION,
                                  a Delaware corporation,
                                  its General Partner

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

                                                              Purchaser

                            NB LOT 3,LLC

                            By:   KLC Holding Corp., a Delaware
                                  corporation, its Managing Member

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

                                                              NB 3

                                  31EXHIBIT 10.1

                                                                  EXECUTION COPY

================================================================================

                               SUBSIDIARY GUARANTY

                                       BY

                             Certain Subsidiaries of
                    The Interpublic Group of Companies, Inc.

                                   IN FAVOR OF

                         The Lenders Referred to Herein

================================================================================

                           Dated as of August 15, 2003

<PAGE>

                                TABLE OF CONTENTS

                                                                 Page

Section 1.      Guaranty...........................................1

Section 2.      Guaranty Absolute..................................2

Section 3.      Waivers............................................3

Section 4.      Subrogation........................................4

Section 5.      Representations and Warranties.....................4

Section 6.      Further Assurances.................................5

Section 7.      No Waiver..........................................5

Section 8.      Amendments, Etc....................................5

Section 9.      Addition and Removal of Guarantors.................5

Section 10.     Notices............................................6

Section 11.     Continuing Guaranty; Transfer of Notes.............6

Section 12.     Severability.......................................6

Section 13.     Governing Law; Jurisdiction........................6

Section 14.     Taxes..............................................7

Section 15.     Execution in Counterparts..........................7

Section 16.     Waiver of Jury Trial...............................8

EXHIBITS

Exhibit A       Form of Amended and REstated Subsidiary Guaranty

Exhibit B       Accession Agreement

<PAGE>

                                    GUARANTY

          This GUARANTY (this "Guaranty"), dated as of August 15, 2003, is made
by the subsidiaries of The Interpublic Group of Companies, Inc. (the "Borrower")
set forth on the signature pages hereof (each, a "Guarantor", and, collectively,
the "Guarantors"), in favor of the Lenders (as defined below) (each of the
Lenders, a "Guaranteed Party", and, collectively, the "Guaranteed Parties").

          WHEREAS, the Borrower has entered into a Five-Year Credit Agreement
dated as of June 27, 2000 and a 364-Day Credit Agreement dated as of May 15,
2003 (together, as amended, supplemented or otherwise modified through the date
hereof, the "Credit Agreements") with the banks, financial institutions and
other institutional lenders parties thereto (collectively, the "Revolver
Lenders") and Citibank, N.A., as agent for the Revolver Lenders (Citibank, N.A.,
as agent, and the Revolver Lenders are collectively referred to herein as the
"Lenders"); and

          WHEREAS, the Borrower and the Guarantors are affiliates engaged in
related businesses and the Guarantors (i) may have received and may receive a
portion of the loans extended under the Credit Agreements, (ii) may be entitled
to borrow directly under the Credit Agreements, (iii) from time to time receive
guarantees from the Borrower in the ordinary course of business and with respect
to their own indebtedness and (vi) will have derived other substantial direct
and indirect economic benefit from the Credit Agreements and therefore are
willing to guarantee the Obligations (as hereinafter defined);

          NOW THEREFORE, in consideration of the foregoing, the Guarantors
hereby agree with and for the benefit of each Guaranteed Party as follows:

          SECTION 1.  Guaranty.

          (a) The Guarantors hereby unconditionally and irrevocably, jointly and
     severally, guarantee, as a guarantee of payment and not of collection, the
     prompt performance and payment in full by the Borrower when due (whether at
     stated maturity, by acceleration or otherwise) of all payment obligations
     of the Borrower under the Credit Agreements, whether direct or indirect,
     absolute or contingent, and whether for principal, interest, fees, breakage
     costs, expenses, indemnification or otherwise (the "Obligations").

          The Guarantors further agree to pay all costs, fees and expenses
     (including, without limitation, reasonable fees of outside counsel)
     incurred by any Guaranteed Party in enforcing any rights under this
     Guaranty. If the Borrower fails to pay any of the Obligations in full when
     due (whether at stated maturity, by acceleration or otherwise) and any
     grace period for payment of any such Obligation has expired, the
     Guarantors, jointly and severally, agree to pay the unpaid portion of such
     Obligation within 2 business days after receipt by each of them of written
     demand from the applicable Guaranteed Party.

          (b) Each Guarantor, and by its acceptance of this Guaranty, each
     Guaranteed Party, hereby confirms that it is the intention of all such
     persons that this Guaranty and the obligations of each Guarantor hereunder
     not constitute a fraudulent transfer or conveyance for purposes of any
     applicable law relating to bankruptcy, the Uniform Fraudulent Conveyance
     Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal or
     state law to the extent applicable to this Guaranty and the obligations of
     each Guarantor hereunder. To effectuate the foregoing intention, the
     Guaranteed Parties and the Guarantors hereby irrevocably agree that the
     obligations of each Guarantor under this Guaranty at any time shall be
     limited to the maximum amount as will result in the obligations of such
     Guarantor under this Guaranty not constituting a fraudulent transfer or
     conveyance.

          (c) Each Guarantor hereby unconditionally and irrevocably agrees that
     in the event any payment shall be required to be made to any Guaranteed
     Party under this Guaranty, such Guarantor will contribute, to the maximum
     extent permitted by law, amounts to each other Guarantor with respect to
     any such payment.

          SECTION 2. Guaranty Absolute.

          (a) The obligations of the Guarantors are joint and several and are
     those of a primary obligor, and not merely a surety, and are independent of
     the Obligations. A separate action or actions may be brought against any
     Guarantor whether or not an action is brought against the Borrower, any
     other guarantor or other obligor in respect of the Obligations or whether
     the Borrower, any other guarantor or any other obligor in respect of the
     Obligations is joined in any such action or actions.

          (b) The liability of the Guarantors under this Guaranty shall be
     absolute and unconditional irrespective of, and each Guarantor hereby
     irrevocably waives, to the extent permitted by applicable law, any defenses
     it may now have or hereafter acquire relating to any or all of the
     following:

               (i) any lack of genuineness, validity, legality or enforceability
          of the Credit Agreements or any other document, agreement or
          instrument relating thereto or any assignment or transfer of any
          thereof;

               (ii) any change in the time, manner or place of payment of, or in
          any other term of, all or any of the Obligations, or any waiver,
          indulgence, compromise, renewal, extension, amendment, modification
          of, or addition, consent, supplement to, or consent to departure from,
          or any other action or inaction under or in respect of, the Credit
          Agreements or any other document, instrument or agreement relating to
          the Obligations or any other instrument or agreement referred to
          therein or any assignment or transfer of any thereof;

               (iii) any release or partial release of any other guarantor or
          other obligor in respect of the Obligations;

               (iv) any exchange, release or non-perfection of any collateral
          for all or any of the Obligations, or any release, or amendment or
          waiver of, or consent to departure from, any guaranty or security, for
          all or any of the Obligations;

               (v) any furnishing of any additional security for any of the
          Obligations;

               (vi) the liquidation, bankruptcy, insolvency or reorganization of
          the Borrower, any other guarantor or other obligor in respect of the
          Obligations or any action taken with respect to this Guaranty by any
          trustee or receiver, or by any court, in any such proceeding; or

               (vii) any other circumstance which might otherwise constitute a
          defense available to, or a legal or equitable discharge of, any
          Guarantor.

          (c) This Guaranty shall continue to be effective or be reinstated, as
     the case may be, if at any time payment or performance of the Obligations,
     or any part thereof, is, upon the insolvency, bankruptcy or reorganization
     of the Borrower or any Guarantor or otherwise pursuant to applicable law,
     rescinded or reduced in amount or must otherwise be restored or returned by
     any Guaranteed Party, all as though such payment or performance had not
     been made.

          SECTION 3. Waivers.

          (a) To the extent permitted by applicable law, each Guarantor hereby
     unconditionally and irrevocably waives promptness, diligence, notice of
     acceptance and any and all other notices with respect to any of the
     Obligations and this Guaranty, other than the notice provided for in
     Section 1 hereof, and any requirement that any Guaranteed Party protect,
     secure, perfect or insure any security interest in or any lien on any
     property subject thereto or exhaust any right or take any action against
     the Borrower, any other guarantor or any other person or any collateral or
     security or any balance of any deposit accounts or credit on the books of
     any of the Lenders in favor of the Borrower or any Guarantor.

          (b) Each Guarantor hereby unconditionally and irrevocably waives any
     right to revoke this Guaranty and acknowledges that this Guaranty is
     continuing in nature and applies to all Obligations, whether existing now
     or in the future.

          (c) Each Guarantor hereby unconditionally and irrevocably waives (i)
     any defense arising by reason of any claim or defense based upon an
     election of remedies by any Guaranteed Party that in any manner impairs,
     reduces, releases or otherwise adversely affects the subrogation,
     reimbursement, exoneration, contribution or indemnification rights of such
     Guarantor or other rights of such Guarantor to proceed against the
     Borrower, any other guarantor or any other person or any collateral and
     (ii) any defense based on any right of set-off or counterclaim against or
     in respect of the obligations of such Guarantor hereunder.

          (d) Each Guarantor hereby unconditionally and irrevocably waives any
     duty on the part of any Guaranteed Party to disclose to such Guarantor any
     matter, fact or thing relating to the business, condition (financial or
     otherwise), operations, performance, properties or prospects of the
     Borrower or any of its subsidiaries now or hereafter known by such
     Guaranteed Party.

          (e) Each Guarantor acknowledges that it will receive substantial
     direct and indirect benefits from the financing arrangements contemplated
     by the Credit Agreements and that the waivers set forth in Section 2 and
     this Section 3 are knowingly made in contemplation of such benefits.

          SECTION 4. Subrogation. The Guarantors will not exercise any rights
which they may acquire by way of rights of subrogation under this Guaranty, by
any payment made hereunder or otherwise, until the latest of (i) all the
Obligations shall have been irrevocably paid in full and in cash and (ii) the
Credit Agreements shall have been terminated.

          SECTION 5. Representations and Warranties. The Guarantors jointly and
severally represent and warrant to the Guarantied Parties as follows:

          (a) Existence and Power. Each Guarantor is a corporation or limited
     liability company, as the case may be, duly formed and validly existing
     under the laws of the jurisdiction indicated on the signature pages hereof
     opposite its name, is in good standing in such jurisdiction and has all
     requisite power and authority to own its property and to carry on its
     business as now conducted.

          (b) Authority. Each Guarantor has full power and authority to execute
     and deliver this Guaranty and to perform its obligations hereunder, all of
     which have been duly authorized by all proper and necessary action of the
     Guarantor.

          (c) Authority of Officers. The officer of each Guarantor who is
     executing this Guaranty is properly in office and is duly authorized to
     execute the same.

          (d) Binding Agreement. This Guaranty constitutes the legal, valid and
     binding obligation of each Guarantor enforceable against it in accordance
     with its terms except as such enforceability may be limited by applicable
     bankruptcy, insolvency, or similar laws affecting the enforcement of
     creditors' rights generally.

          (e) Litigation. There are no actions, suits or arbitration proceedings
     pending or, to the knowledge of any Guarantor, threatened against any
     Guarantor, at law or in equity, which, individually or in the aggregate, if
     adversely determined, would materially adversely affect the financial
     condition of any Guarantor or materially impair the ability of such
     Guarantor to perform its obligations under this Guaranty.

          (f) No Conflicting Law or Agreements. The execution, delivery and
     performance by each Guarantor of this Guaranty (i) do not violate any
     provision of the articles of incorporation or by-laws (or equivalent
     constituent documents) of such Guarantor; (ii) do not violate in any
     material respect any order, decree or judgment, or any provision of any
     statute, rule or regulation applicable to or binding on such Guarantor or
     any of its property; and (iii) do not violate or conflict with, result in a
     breach of or constitute (with notice or lapse of time or both) a material
     default under, any material mortgage, indenture, contract or other material
     agreement to which such Guarantor is a party, or by which any of its
     property is bound.

          SECTION 6. Further Assurances. The Guarantors agree that at any time
and from time to time, at the expense of the Guarantors, the Guarantors will
promptly execute and deliver all further instruments and documents, and take all
further action, that may be necessary or desirable, or that the Guaranteed
Parties may reasonably request, to enable the Guaranteed Parties to protect and
to exercise and enforce their respective rights and remedies hereunder.

          SECTION 7. No Waiver. No failure on the part of any Guaranteed Party
to exercise, and no delay in exercising, any right hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise of any right hereunder
preclude any other or further exercise thereof or the exercise of any other
right. The remedies herein provided are cumulative and not exclusive of any
remedies provided by law.

          SECTION 8. Amendments, Etc. Except as set forth in Section 9 hereof,
no amendment or waiver of any provision of this Guaranty, nor consent to any
departure by the Guarantors herefrom, shall in any event be effective unless the
same shall be in writing and signed by (a) each Guarantor and (b) so long as the
Credit Agreements are in effect, Citibank, N.A., acting at the direction of the
Required Lenders under (and as defined in) each such Credit Agreement; provided,
however, that if at any time it becomes necessary for this Guaranty to be
qualified under the Trust Indenture Act of 1939, as amended, this Guaranty may
be amended without any further action on the part of any Guarantor or any
Guaranteed Party in order to incorporate such provisions as would cause it to be
so qualified; and provided further that this Guaranty may be amended at any time
without any further action on the part of any Guarantor or any Guaranteed Party
substantially in the form attached hereto as Exhibit A. Any amendment, waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which made or given.

          SECTION 9. Addition and Removal of Guarantors.

          (a) In the event that any Guarantor is dissolved or ceases to be a
     consolidated subsidiary of the Borrower, (i) such Guarantor shall,
     automatically and without any further action on behalf any of the
     Guarantors or the Guaranteed Parties, cease to be a Guarantor and (ii) the
     definition of "Guarantor" shall, automatically and without any further
     action on behalf of any of the Guarantors or the Guaranteed Parties, be
     amended to remove such Guarantor therefrom.

          (b) In the event that any consolidated subsidiary of the Borrower
     wishes to become a Guarantor, such consolidated subsidiary shall execute
     and deliver an accession agreement substantially in the form of Exhibit B
     hereto (an "Accession Agreement"). Upon execution and delivery of such
     Accession Agreement, and without any further action on behalf of any of the
     Guarantors or the Guaranteed Parties, (i) such consolidated subsidiary
     shall become a Guarantor and (ii) the definition of "Guarantor" shall
     automatically be amended to include such consolidated subsidiary therein,
     in each case as of the date of such Accession Agreement.

          SECTION 10. Notices. All notices, requests and other communications
provided for hereunder shall be in writing and mailed by overnight delivery,
transmitted by facsimile or hand delivered:

               (i) if to any of the Lenders, addressed c/o Citibank, N.A., Two
          Penns Way, Suite 200, New Castle, DE 19720, Attention: May Wong
          (Facsimile: (302) 894-6120);

               (ii) if to the Guarantors, at their respective addresses set
          forth on the signature page hereof, with a copy to the Borrower at
          1270 Avenue of the Americas, New York, NY 10020, Attention: Vice
          President and Treasurer (Facsimile: (212) 621-5748);

or, as to each party, at such other address as shall be designated by such party
in a written notice to the other parties. All such notices and other
communications shall be effective (x) upon receipt thereof, when mailed by
overnight delivery or hand delivered or (y) upon receipt of confirmation of
facsimile transmission, when transmitted by facsimile.

          SECTION 11. Continuing Guaranty; Transfer of Notes. This Guaranty is a
continuing guaranty and shall (a) remain in full force and effect until the
latest of (i) payment in full of the Obligations and all other amounts payable
under this Guaranty and (ii) the termination of the Credit Agreements; (b) be
binding upon the Guarantors and their respective successors and assigns; and (c)
inure to the benefit of the Guaranteed Parties and their respective successors
and assigns. Without limiting the generality of clause (c) of the immediately
preceding sentence, if any Revolver Lender assigns or otherwise transfers all or
any portion of its rights and obligations under the applicable Credit Agreement
(including, without limitation, all or any portion of its commitments, the
advances owing to it and the note or notes held by it) to any other person in
accordance with the terms thereof, then such other person shall thereupon become
vested with all the benefits in respect of such transferred rights and
obligations granted to such Guaranteed Party herein.

          SECTION 12. Severability. If for any reason any provision or
provisions hereof are determined to be invalid and contrary to any existing or
future law, such invalidity shall not, to the fullest extent permitted by law,
impair the operation of or effect of those portions of this Guaranty that are
valid.

          SECTION 13. Governing Law; Jurisdiction.

          (a) This Guaranty shall be governed by, and construed and enforced in
     accordance with, the law of the State of New York.

          (b) Any legal action or proceeding with respect to this Guaranty may
     be brought in the courts of the State of New York or of the United States
     of America for the Southern District of New York, and by execution and
     delivery of this Guaranty, each Guarantor hereby consents, for itself and
     in respect of its property, to the non-exclusive jurisdiction of the
     aforesaid courts. To the fullest extent permitted by law, each Guarantor
     hereby irrevocably waives any objection, including without limitation, any
     objection to the laying of venue or based on the grounds of forum non
     conveniens, which it may now or hereafter have to the bringing of any
     action or proceeding in such jurisdiction in respect of this Guaranty or
     any document related hereto. Notwithstanding any of the foregoing, any
     suit, action or proceeding against the Guarantors based on this Guaranty
     may be instituted by any Guaranteed Party in any court of competent
     jurisdiction.

          SECTION 14. Taxes. All payments to be made by a Guarantor under this
Guaranty shall be made without set-off or counterclaim and without deduction for
any taxes unless such Guarantor is required by law to make payments subject to
such taxes. All taxes in respect of payments made under this Guaranty payable by
a Guarantor shall be paid by such Guarantor when due and in any event prior to
the date on which penalties attach thereto. Such Guarantor will indemnify each
Guaranteed Party with respect to such taxes paid by such Guaranteed Party;
provided that, if such Guaranteed Party receives a refund of any portion of such
taxes, it shall pay the amount of any such refund to such Guarantor. In
addition, if any taxes or amounts in respect thereof must be deducted from any
amounts payable or paid by such Guarantor hereunder, such Guarantor shall pay at
the same time as such payment is due such additional amounts as may be necessary
to ensure that each Guaranteed Party receives a net amount equal to the full
amount which it would have received had payment not been made subject to such
tax.

          SECTION 15. Execution in Counterparts. This Guaranty and each
amendment, waiver and consent with respect hereto may be executed in any number
of counterparts and by different parties hereto and thereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.
Delivery of an executed counterpart of a signature page to this Guaranty by
telecopier shall be effective as delivery of an original executed counterpart of
this Guaranty.

          SECTION 16. Waiver of Jury Trial. EACH GUARANTOR WAIVES ANY RIGHT IT
MAY HAVE TO A JURY TRIAL IN CONNECTION WITH ANY ACTION, SUIT OR PROCEEDING
ARISING OUT OF OR RELATED IN ANY WAY TO THIS GUARANTY.

                  IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to
be duly executed and delivered by its officer thereunto duly authorized as of
the date first above written.

<TABLE>

<S>                                                          <C>
McCann-Erickson USA, Inc. - Delaware                         TM Holdings, Inc. - Delaware

By: /s/ Steven Berns                                         By: /s/ Steven Berns
    --------------------------------------------                 -------------------------------------------

Title: Vice President and Treasurer                          Title: Vice President and Treasurer
       -----------------------------------------                 -------------------------------------------

Address: 1270 Avenue of the Americas,  New York,             Address: 1270 Avenue of the Americas, New York,
         ---------------------------------------                      --------------------------------------
         New York 10020                                               New York 10020
         ---------------------------------------                      --------------------------------------

Facsimile: 212-621-5748                                      Facsimile: 212-621-5748
           -------------------------------------                        ------------------------------------

Torre Lazur Healthcare Group, Inc. - New Jersey              McCann Relationship Marketing, Inc. - New York

By: /s/ Steven Berns                                         By: /s/ Steven Berns
    --------------------------------------------                -------------------------------------------

Title: Vice President and Treasurer                          Title: Treasurer
       -----------------------------------------                    ----------------------------------------

Address: 1270 Avenue of the Americas, New York,              Address: 1270 Avenue of the Americas, New York,
         ---------------------------------------                      --------------------------------------
         New York 10020                                               New York 10020
         ---------------------------------------                      --------------------------------------

Facsimile: 212-621-5748                                      Facsimile: 212-621-5748
           -------------------------------------                        ------------------------------------

Gillespie, Advertising, Magazine Marketing &                 The Gotham Group, Inc. - New York
    Public Relations, Inc. - New Jersey
                                                             By: /s/ Steven Berns
By: /s/ Steven Berns                                             -------------------------------------------
    --------------------------------------------             Title: Assistant Treasurer
Title: Vice President and Treasurer                                 ----------------------------------------
       -----------------------------------------
                                                             Address: 1270 Avenue of the Americas, New York,
Address: 1270 Avenue of the Americas, New York,                       --------------------------------------
         ---------------------------------------                      New York 10020
         New York 10020                                               --------------------------------------
         ---------------------------------------
                                                             Facsimile: 212-621-5748
Facsimile: 212-621-5748                                                 ------------------------------------

Campbell Mithun, Inc. - Delaware                             FCB Worldwide L.L.C. - Delaware

By: /s/ Steven Berns                                         By: /s/ Steven Berns
    --------------------------------------------                 -------------------------------------------

Title: Vice President and Treasurer                          Title: Vice President and Treasurer
       -----------------------------------------                    ----------------------------------------

Address: 1270 Avenue of the Americas, New York,              Address: 1270 Avenue of the Americas, New York,
         ---------------------------------------                      --------------------------------------
         New York 10020                                               New York 10020
         ---------------------------------------                      --------------------------------------

Facsimile: 212-621-5748                                      Facsimile: 212-621-5748
           -------------------------------------                        ------------------------------------

Hill, Holliday, Connors, Cosmopulos, Inc. -
    Delaware                                                 Campbell-Ewald Company - Delaware

By: /s/ Steven Berns                                         By: /s/ Steven Berns
    --------------------------------------------                 -------------------------------------------

Title: Vice President and Treasurer                          Title: Vice President and Treasurer
       -----------------------------------------                    ----------------------------------------

Address: 1270 Avenue of the Americas, New York,              Address: 1270 Avenue of the Americas, New York,
         ---------------------------------------                      --------------------------------------
         New York 10020                                               New York 10020
         ---------------------------------------                      --------------------------------------

Facsimile: 212-621-5748                                      Facsimile: 212-621-5748
           -------------------------------------                        ------------------------------------

Deutsch Inc. - New York                                      Lowe Group Holdings, Inc. - New York

By: /s/ Steven Berns                                         By: /s/ Steven Berns
    --------------------------------------------                 -------------------------------------------

Title: Vice President and Treasurer                          Title:  Treasurer
       -----------------------------------------                     ---------------------------------------

Address: 1270 Avenue of the Americas, New York,              Address: 1270 Avenue of the Americas, New York,
         ---------------------------------------                      --------------------------------------
         New York 10020                                               New York 10020
        ----------------------------------------                      --------------------------------------

Facsimile: 212-621-5748                                      Facsimile: 212-621-5748
           -------------------------------------                        ------------------------------------

Draft, Inc. - Delaware                                       Integrated Communications Corp. - New Jersey

By: /s/ Steven Berns                                         By: /s/ Steven Berns
    --------------------------------------------                 -------------------------------------------

Title: Vice President and Treasurer                          Title: Vice President and Treasurer
       -----------------------------------------                    ----------------------------------------

Address: 1270 Avenue of the Americas, New York,             Address: 1270 Avenue of the Americas, New York,
         ---------------------------------------                     ---------------------------------------
         New York 10020                                              New York 10020
         ---------------------------------------                     ---------------------------------------

Facsimile: 212-621-5748                                      Facsimile: 212-621-5748
           -------------------------------------                        ------------------------------------

Dailey & Associates - California                             Bozell Group, Inc. - Delaware

By: /s/ Steven Berns                                         By: /s/ Steven Berns
    --------------------------------------------                 -------------------------------------------

Title: Vice President and Treasurer                          Title: Vice President and Treasurer
       -----------------------------------------                    ----------------------------------------

Address: 1270 Avenue of the Americas, New York,              Address: 1270 Avenue of the Americas, New York,
         ---------------------------------------                      --------------------------------------
         New York 10020                                               New York 10020
         ---------------------------------------                      --------------------------------------

Facsimile: 212-621-5748                                      Facsimile: 212-621-5748
           -------------------------------------                        ------------------------------------

Advantage International Holdings, Inc. -
     Delaware                                                Jack Morton Worldwide Inc. - Delaware

By: /s/ Steven Berns                                         By: /s/ Steven Berns
    --------------------------------------------                 -------------------------------------------

Title: Vice President and Treasurer                          Title: Vice President and Treasurer
       -----------------------------------------                    ----------------------------------------

Address: 1270 Avenue of the Americas, New York,              Address: 1270 Avenue of the Americas, New York,
         ---------------------------------------                      --------------------------------------
         New York 10020                                               New York 10020
         ---------------------------------------                      --------------------------------------

Facsimile: 212-621-5748                                      Facsimile: 212-621-5748
           -------------------------------------                        ------------------------------------

Kaleidoscope Sports and Entertainment L.L.C. -
     Delaware                                                Initiative Media Worldwide, Inc. - California

By: /s/ Steven Berns                                         By: /s/ Steven Berns
    --------------------------------------------                 -------------------------------------------

Title: Manager                                               Title: Vice President and Assistant Treasurer
       -----------------------------------------                    ----------------------------------------

Address: 1270 Avenue of the Americas, New York,              Address: 1270 Avenue of the Americas, New York,
         ---------------------------------------                      --------------------------------------
         New York  10020                                              New York 10020
         ---------------------------------------                      --------------------------------------

Facsimile: 212-621-5748                                      Facsimile: 212-621-5748
           -------------------------------------                        ------------------------------------

Newspaper Services of America, Inc. - Delaware               Wahlstrom Group L.L.C. - Delaware

By: /s/ Steven Berns                                         By: /s/ Steven Berns
    --------------------------------------------                 -------------------------------------------

Title: Vice President and Treasurer                          Title: Vice President and Treasurer
       -----------------------------------------                    ----------------------------------------

Address: 1270 Avenue of the Americas, New York,              Address: 1270 Avenue of the Americas, New York,
         ---------------------------------------                      --------------------------------------
         New York 10020                                               New York 10020
         ---------------------------------------                      --------------------------------------

Facsimile: 212-621-5748                                      Facsimile: 212-621-5748
           -------------------------------------                        ------------------------------------

Carmichael Lynch, Inc. - Minnesota                           The Cassidy Companies, Inc. - Delaware

By: /s/ Steven Berns                                         By: /s/ Steven Berns
    --------------------------------------------                 -------------------------------------------

Title: Vice President and Treasurer                          Title: Vice President and Treasurer
       -----------------------------------------                    ----------------------------------------

Address: 1270 Avenue of the Americas, New York,              Address: 1270 Avenue of the Americas, New York,
         ---------------------------------------                      --------------------------------------
         New York 10020                                               New York 10020
        ----------------------------------------                      --------------------------------------

Facsimile: 212-621-5748                                      Facsimile: 212-621-5748
           -------------------------------------                        ------------------------------------

Weber Shandwick Inc. - New York                              The FutureBrand Company, Inc. - California

By: /s/ Steven Berns                                         By: /s/ Steven Berns
    --------------------------------------------                 -------------------------------------------

Title: Vice President and Treasurer                          Title: Vice President and Treasurer
       -----------------------------------------                    ----------------------------------------

Address: 1270 Avenue of the Americas, New York,              Address: 1270 Avenue of the Americas, New York,
         ---------------------------------------                      --------------------------------------
         New York 10020                                               New York 10020
         ---------------------------------------                      --------------------------------------

Facsimile: 212-621-5748                                      Facsimile: 212-621-5748
           -------------------------------------                        ------------------------------------
</TABLE>

<PAGE>

                                                                       EXHIBIT A
================================================================================

                    AMENDED AND RESTATED SUBSIDIARY GUARANTY

                                       BY

                             Certain Subsidiaries of
                    The Interpublic Group of Companies, Inc.

                                   IN FAVOR OF

                         The Lenders Referred to Herein

                                       and

                        The Bank of New York, as Trustee
         for the Benefit of the Noteholders Listed on Schedule A Hereto

================================================================================

                                 Dated as of [ ]

<PAGE>
                                TABLE OF CONTENTS

                                                                  Page

Section 1.        Guaranty..........................................1

Section 2.        Guaranty Absolute.................................2

Section 3.        Waivers...........................................3

Section 4.        Subrogation.......................................4

Section 5.        Representations and Warranties....................4

Section 6.        Further Assurances................................5

Section 7.        No Waiver.........................................5

Section 8.        Amendments, Etc...................................5

Section 9.        Addition and Removal of Guarantors................6

Section 10.       Notices...........................................6

Section 11.       Continuing Guaranty; Transfer of Notes............7

Section 12.       Severability......................................7

Section 13.       Governing Law; Jurisdiction.......................7

Section 14.       Taxes.............................................7

Section 15.       Execution in Counterparts.........................8

Section 16.       Waiver of Jury Trial..............................9

SCHEDULES

Schedule A        Noteholders

EXHIBITS

Exhibit A         Accession Agreement

<PAGE>

                                    GUARANTY

         This AMENDED AND RESTATED GUARANTY (this "Guaranty"), dated as of [ ],
2003, is made by the subsidiaries of The Interpublic Group of Companies, Inc.
(the "Borrower") set forth on the signature pages hereof (each, a "Guarantor",
and, collectively, the "Guarantors"), in favor of the Lenders (as defined below)
and The Bank of New York ("BONY"), as Trustee for the benefit of the noteholders
listed on Schedule A hereto (each of the Lenders and BONY, a "Guaranteed Party",
and, collectively, the "Guaranteed Parties").

         WHEREAS, the Borrower has entered into a Five-Year Credit Agreement
dated as of June 27, 2000 and a 364-Day Credit Agreement dated as of May 15,
2003 (together, as amended, supplemented or otherwise modified through the date
hereof, the "Credit Agreements") with the banks, financial institutions and
other institutional lenders parties thereto (collectively, the "Revolver
Lenders") and Citibank, N.A., as agent for the Revolver Lenders (Citibank, N.A.,
as agent, and the Revolver Lenders are collectively referred to herein as the
"Lenders");

         WHEREAS, the Borrower has issued Zero-Coupon Convertible Senior Notes
due 2021, 7.25% Notes due 2011, 7.875% Notes due 2005 and 4.50% Convertible
Senior Notes due 2023 (collectively, the "Notes") pursuant to a Senior Debt
Indenture with BONY, as Trustee, dated as of October 20, 2000, as supplemented
by a First Supplemental Indenture dated as of August 22, 2001, a Second
Supplemental Indenture dated as of December 14, 2001 and a Third Supplemental
Indenture dated as of March 13, 2003; and

         WHEREAS, the Borrower and the Guarantors are affiliates engaged in
related businesses and the Guarantors (i) may have received and may receive a
portion of the loans extended under the Credit Agreements, (ii) may be entitled
to borrow directly under the Credit Agreements, (iii) may have received,
directly or indirectly, a portion of the proceeds from the issuance of the
Notes, (iv) from time to time receive guarantees from the Borrower in the
ordinary course of business and with respect to their own indebtedness and (v)
will have derived other substantial direct and indirect economic benefit from
the Credit Agreements and the Notes and therefore are willing to guarantee the
Obligations (as hereinafter defined);

         WHEREAS, the Guarantors entered into a guaranty substantially in the
form hereof, dated as of August 15, 2003, in favor of the Lenders (the "Original
Guaranty");

         WHEREAS, the Guarantors and the Lenders have agreed to amend and
restate the Original Guaranty as herein set forth to include BONY, as Trustee
for the benefit of the noteholders listed on Schedule A hereto, as a Guaranteed
Party;

         NOW THEREFORE, in consideration of the foregoing, the Guarantors hereby
agree with and for the benefit of each Guaranteed Party as follows:

          SECTION 1. Guaranty.

          (a) The Guarantors hereby unconditionally and irrevocably, jointly and
     severally, guarantee, as a guarantee of payment and not of collection, the
     prompt performance and payment in full by the Borrower when due (whether at
     stated maturity, by acceleration or otherwise) of the following (the
     "Obligations"):

               (i) all payment obligations of the Borrower under the Credit
          Agreements, whether direct or indirect, absolute or contingent, and
          whether for principal, interest, fees, breakage costs, expenses,
          indemnification or otherwise; and

               (ii) all payment obligations of the Borrower to the noteholders
          listed on Schedule A hereto arising under the Notes.

     The Guarantors further agree to pay all costs, fees and expenses
     (including, without limitation, reasonable fees of outside counsel)
     incurred by any Guaranteed Party in enforcing any rights under this
     Guaranty. If the Borrower fails to pay any of the Obligations in full when
     due (whether at stated maturity, by acceleration or otherwise) and any
     grace period for payment of any such Obligation has expired, the
     Guarantors, jointly and severally, agree to pay the unpaid portion of such
     Obligation within 2 business days after receipt by each of them of written
     demand from the applicable Guaranteed Party.

          (b) Each Guarantor, and by its acceptance of this Guaranty, each
     Guaranteed Party, hereby confirms that it is the intention of all such
     persons that this Guaranty and the obligations of each Guarantor hereunder
     not constitute a fraudulent transfer or conveyance for purposes of any
     applicable law relating to bankruptcy, the Uniform Fraudulent Conveyance
     Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal or
     state law to the extent applicable to this Guaranty and the obligations of
     each Guarantor hereunder. To effectuate the foregoing intention, the
     Guaranteed Parties and the Guarantors hereby irrevocably agree that the
     obligations of each Guarantor under this Guaranty at any time shall be
     limited to the maximum amount as will result in the obligations of such
     Guarantor under this Guaranty not constituting a fraudulent transfer or
     conveyance.

          (c) Each Guarantor hereby unconditionally and irrevocably agrees that
in the event any payment shall be required to be made to any Guaranteed Party
under this Guaranty, such Guarantor will contribute, to the maximum extent
permitted by law, amounts to each other Guarantor with respect to any such
payment.

          SECTION 2. Guaranty Absolute.

          (a) The obligations of the Guarantors are joint and several and are
     those of a primary obligor, and not merely a surety, and are independent of
     the Obligations. A separate action or actions may be brought against any
     Guarantor whether or not an action is brought against the Borrower, any
     other guarantor or other obligor in respect of the Obligations or whether
     the Borrower, any other guarantor or any other obligor in respect of the
     Obligations is joined in any such action or actions.

          (b) The liability of the Guarantors under this Guaranty shall be
     absolute and unconditional irrespective of, and each Guarantor hereby
     irrevocably waives, to the extent permitted by applicable law, any defenses
     it may now have or hereafter acquire relating to any or all of the
     following:

               (i) any lack of genuineness, validity, legality or enforceability
          of the Credit Agreements, the Notes or any other document, agreement
          or instrument relating thereto or any assignment or transfer of any
          thereof;

               (ii) any change in the time, manner or place of payment of, or in
          any other term of, all or any of the Obligations, or any waiver,
          indulgence, compromise, renewal, extension, amendment, modification
          of, or addition, consent, supplement to, or consent to departure from,
          or any other action or inaction under or in respect of, the Credit
          Agreements, the Notes or any other document, instrument or agreement
          relating to the Obligations or any other instrument or agreement
          referred to therein or any assignment or transfer of any thereof;

               (iii) any release or partial release of any other guarantor or
          other obligor in respect of the Obligations;

               (iv) any exchange, release or non-perfection of any collateral
          for all or any of the Obligations, or any release, or amendment or
          waiver of, or consent to departure from, any guaranty or security, for
          all or any of the Obligations;

               (v) any furnishing of any additional security for any of the
          Obligations;

               (vi) the liquidation, bankruptcy, insolvency or reorganization of
          the Borrower, any other guarantor or other obligor in respect of the
          Obligations or any action taken with respect to this Guaranty by any
          trustee or receiver, or by any court, in any such proceeding; or

               (vii) any other circumstance which might otherwise constitute a
          defense available to, or a legal or equitable discharge of, any
          Guarantor.

          (c) This Guaranty shall continue to be effective or be reinstated, as
     the case may be, if at any time payment or performance of the Obligations,
     or any part thereof, is, upon the insolvency, bankruptcy or reorganization
     of the Borrower or any Guarantor or otherwise pursuant to applicable law,
     rescinded or reduced in amount or must otherwise be restored or returned by
     any Guaranteed Party, all as though such payment or performance had not
     been made.

          SECTION 3. Waivers.

          (a) To the extent permitted by applicable law, each Guarantor hereby
     unconditionally and irrevocably waives promptness, diligence, notice of
     acceptance and any and all other notices with respect to any of the
     Obligations and this Guaranty, other than the notice provided for in
     Section 1 hereof, and any requirement that any Guaranteed Party protect,
     secure, perfect or insure any security interest in or any lien on any
     property subject thereto or exhaust any right or take any action against
     the Borrower, any other guarantor or any other person or any collateral or
     security or any balance of any deposit accounts or credit on the books of
     any of the Lenders in favor of the Borrower or any Guarantor.

          (b) Each Guarantor hereby unconditionally and irrevocably waives any
     right to revoke this Guaranty and acknowledges that this Guaranty is
     continuing in nature and applies to all Obligations, whether existing now
     or in the future.

          (c) Each Guarantor hereby unconditionally and irrevocably waives (i)
     any defense arising by reason of any claim or defense based upon an
     election of remedies by any Guaranteed Party that in any manner impairs,
     reduces, releases or otherwise adversely affects the subrogation,
     reimbursement, exoneration, contribution or indemnification rights of such
     Guarantor or other rights of such Guarantor to proceed against the
     Borrower, any other guarantor or any other person or any collateral and
     (ii) any defense based on any right of set-off or counterclaim against or
     in respect of the obligations of such Guarantor hereunder.

          (d) Each Guarantor hereby unconditionally and irrevocably waives any
     duty on the part of any Guaranteed Party to disclose to such Guarantor any
     matter, fact or thing relating to the business, condition (financial or
     otherwise), operations, performance, properties or prospects of the
     Borrower or any of its subsidiaries now or hereafter known by such
     Guaranteed Party.

          (e) Each Guarantor acknowledges that it will receive substantial
     direct and indirect benefits from the financing arrangements contemplated
     by the Credit Agreements and the Notes and that the waivers set forth in
     Section 2 and this Section 3 are knowingly made in contemplation of such
     benefits.

          SECTION 4. Subrogation. The Guarantors will not exercise any rights
which they may acquire by way of rights of subrogation under this Guaranty, by
any payment made hereunder or otherwise, until the latest of (i) all the
Obligations shall have been irrevocably paid in full and in cash, (ii) the
Credit Agreements shall have been terminated and (iii) the Notes shall have been
cancelled.

          SECTION 5. Representations and Warranties. The Guarantors jointly and
severally represent and warrant to the Guarantied Parties as follows:

          (a) Existence and Power. Each Guarantor is a corporation or limited
     liability company, as the case may be, duly formed and validly existing
     under the laws of the jurisdiction indicated on the signature pages hereof
     opposite its name, is in good standing in such jurisdiction and has all
     requisite power and authority to own its property and to carry on its
     business as now conducted.

          (b) Authority. Each Guarantor has full power and authority to execute
     and deliver this Guaranty and to perform its obligations hereunder, all of
     which have been duly authorized by all proper and necessary action of the
     Guarantor.

          (c) Authority of Officers. The officer of each Guarantor who is
     executing this Guaranty is properly in office and is duly authorized to
     execute the same.

          (d) Binding Agreement. This Guaranty constitutes the legal, valid and
     binding obligation of each Guarantor enforceable against it in accordance
     with its terms except as such enforceability may be limited by applicable
     bankruptcy, insolvency, or similar laws affecting the enforcement of
     creditors' rights generally.

          (e) Litigation. There are no actions, suits or arbitration proceedings
     pending or, to the knowledge of any Guarantor, threatened against any
     Guarantor, at law or in equity, which, individually or in the aggregate, if
     adversely determined, would materially adversely affect the financial
     condition of any Guarantor or materially impair the ability of such
     Guarantor to perform its obligations under this Guaranty.

          (f) No Conflicting Law or Agreements. The execution, delivery and
     performance by each Guarantor of this Guaranty (i) do not violate any
     provision of the articles of incorporation or by-laws (or equivalent
     constituent documents) of such Guarantor; (ii) do not violate in any
     material respect any order, decree or judgment, or any provision of any
     statute, rule or regulation applicable to or binding on such Guarantor or
     any of its property; and (iii) do not violate or conflict with, result in a
     breach of or constitute (with notice or lapse of time or both) a material
     default under, any material mortgage, indenture, contract or other material
     agreement to which such Guarantor is a party, or by which any of its
     property is bound.

          SECTION 6. Further Assurances. The Guarantors agree that at any time
and from time to time, at the expense of the Guarantors, the Guarantors will
promptly execute and deliver all further instruments and documents, and take all
further action, that may be necessary or desirable, or that the Guaranteed
Parties may reasonably request, to enable the Guaranteed Parties to protect and
to exercise and enforce their respective rights and remedies hereunder.

          SECTION 7. No Waiver. No failure on the part of any Guaranteed Party
to exercise, and no delay in exercising, any right hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise of any right hereunder
preclude any other or further exercise thereof or the exercise of any other
right. The remedies herein provided are cumulative and not exclusive of any
remedies provided by law.

          SECTION 8. Amendments, Etc. Except as set forth in Section 9 hereof,
no amendment or waiver of any provision of this Guaranty, nor consent to any
departure by the Guarantors herefrom, shall in any event be effective unless the
same shall be in writing and signed by (a) each Guarantor and (b) so long as the
Credit Agreements are in effect, Citibank, N.A., acting at the direction of the
Required Lenders under (and as defined in) each such Credit Agreement; provided,
however, that if at any time it becomes necessary for this Guaranty to be
qualified under the Trust Indenture Act of 1939, as amended, this Guaranty may
be amended without any further action on the part of any Guarantor or any
Guaranteed Party in order to incorporate such provisions as would cause it to be
so qualified. Any amendment, waiver or consent shall be effective only in the
specific instance and for the specific purpose for which made or given.

          SECTION 9. Addition and Removal of Guarantors.

          (a) In the event that any Guarantor is dissolved or ceases to be a
     consolidated subsidiary of the Borrower, (i) such Guarantor shall,
     automatically and without any further action on behalf any of the
     Guarantors or the Guaranteed Parties, cease to be a Guarantor and (ii) the
     definition of "Guarantor" shall, automatically and without any further
     action on behalf of any of the Guarantors or the Guaranteed Parties, be
     amended to remove such Guarantor therefrom.

          (b) In the event that any consolidated subsidiary of the Borrower
     wishes to become a Guarantor, such consolidated subsidiary shall execute
     and deliver an accession agreement substantially in the form of Exhibit A
     hereto (an "Accession Agreement"). Upon execution and delivery of such
     Accession Agreement, and without any further action on behalf of any of the
     Guarantors or the Guaranteed Parties, (i) such consolidated subsidiary
     shall become a Guarantor and (ii) the definition of "Guarantor" shall
     automatically be amended to include such consolidated subsidiary therein,
     in each case as of the date of such Accession Agreement.

          SECTION 10. Notices. All notices, requests and other communications
provided for hereunder shall be in writing and mailed by overnight delivery,
transmitted by facsimile or hand delivered:

               (i) if to any of the Lenders, addressed c/o Citibank, N.A., Two
          Penns Way, Suite 200, New Castle, DE 19720, Attention: May Wong
          (Facsimile: (302) 894-6120);

               (ii) if to BONY, addressed to The Bank of New York, 101 Barclay
          Street, 21st Floor West, New York, NY 10286, Attention: Corporate
          Trust Trustee Administration (Facsimile: (212) 815-5915);

               (iii) if to the Guarantors, at their respective addresses set
          forth on the signature page hereof, with a copy to the Borrower at
          1270 Avenue of the Americas, New York, NY 10020, Attention: Vice
          President and Treasurer (Facsimile: (212) 621-5748);

or, as to each party, at such other address as shall be designated by such party
in a written notice to the other parties. All such notices and other
communications shall be effective (x) upon receipt thereof, when mailed by
overnight delivery or hand delivered or (y) upon receipt of confirmation of
facsimile transmission, when transmitted by facsimile.

          SECTION 11. Continuing Guaranty; Transfer of Notes. This Guaranty is a
continuing guaranty and shall (a) remain in full force and effect until the
latest of (i) payment in full of the Obligations and all other amounts payable
under this Guaranty, (ii) the termination of the Credit Agreements and (iii) the
cancellation of the Notes; (b) be binding upon the Guarantors and their
respective successors and assigns; and (c) inure to the benefit of the
Guaranteed Parties and their respective successors and assigns. Without limiting
the generality of clause (c) of the immediately preceding sentence, if any
Revolver Lender assigns or otherwise transfers all or any portion of its rights
and obligations under the applicable Credit Agreement (including, without
limitation, all or any portion of its commitments, the advances owing to it and
the note or notes held by it) to any other person in accordance with the terms
thereof, then such other person shall thereupon become vested with all the
benefits in respect of such transferred rights and obligations granted to such
Guaranteed Party herein.

          SECTION 12. Severability. If for any reason any provision or
provisions hereof are determined to be invalid and contrary to any existing or
future law, such invalidity shall not, to the fullest extent permitted by law,
impair the operation of or effect of those portions of this Guaranty that are
valid.

          SECTION 13. Governing Law; Jurisdiction.

          (a) This Guaranty shall be governed by, and construed and enforced in
     accordance with, the law of the State of New York.

          (b) Any legal action or proceeding with respect to this Guaranty may
     be brought in the courts of the State of New York or of the United States
     of America for the Southern District of New York, and by execution and
     delivery of this Guaranty, each Guarantor hereby consents, for itself and
     in respect of its property, to the non-exclusive jurisdiction of the
     aforesaid courts. To the fullest extent permitted by law, each Guarantor
     hereby irrevocably waives any objection, including without limitation, any
     objection to the laying of venue or based on the grounds of forum non
     conveniens, which it may now or hereafter have to the bringing of any
     action or proceeding in such jurisdiction in respect of this Guaranty or
     any document related hereto. Notwithstanding any of the foregoing, any
     suit, action or proceeding against the Guarantors based on this Guaranty
     may be instituted by any Guaranteed Party in any court of competent
     jurisdiction.

          SECTION 14. Taxes. All payments to be made by a Guarantor under this
Guaranty shall be made without set-off or counterclaim and without deduction for
any taxes unless such Guarantor is required by law to make payments subject to
such taxes. All taxes in respect of payments made under this Guaranty payable by
a Guarantor shall be paid by such Guarantor when due and in any event prior to
the date on which penalties attach thereto. Such Guarantor will indemnify each
Guaranteed Party with respect to such taxes paid by such Guaranteed Party;
provided that, if such Guaranteed Party receives a refund of any portion of such
taxes, it shall pay the amount of any such refund to such Guarantor. In
addition, if any taxes or amounts in respect thereof must be deducted from any
amounts payable or paid by such Guarantor hereunder, such Guarantor shall pay at
the same time as such payment is due such additional amounts as may be necessary
to ensure that each Guaranteed Party receives a net amount equal to the full
amount which it would have received had payment not been made subject to such
tax.

          SECTION 15. Execution in Counterparts. This Guaranty and each
amendment, waiver and consent with respect hereto may be executed in any number
of counterparts and by different parties hereto and thereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.
Delivery of an executed counterpart of a signature page to this Guaranty by
telecopier shall be effective as delivery of an original executed counterpart of
this Guaranty.

          SECTION 16. Waiver of Jury Trial. EACH GUARANTOR WAIVES ANY RIGHT IT
MAY HAVE TO A JURY TRIAL IN CONNECTION WITH ANY ACTION, SUIT OR PROCEEDING
ARISING OUT OF OR RELATED IN ANY WAY TO THIS GUARANTY.

          IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to be duly
executed and delivered by its officer thereunto duly authorized as of the date
first above written.

<TABLE>

<S>                                                          <C>
McCann-Erickson USA, Inc. - Delaware                         TM Holdings, Inc. - Delaware

By:                                                          By:
    --------------------------------------------                 -------------------------------------------

Title:                                                       Title:
       -----------------------------------------                   -----------------------------------------

Address:                                                     Address:
         ---------------------------------------                      --------------------------------------

Facsimile:                                                   Facsimile:
           -------------------------------------                        ------------------------------------

Torre Lazur Healthcare Group, Inc. - New Jersey              McCann Relationship Marketing, Inc. - New York

By:                                                          By:
    --------------------------------------------                -------------------------------------------

Title:                                                       Title:
       -----------------------------------------                    ----------------------------------------

Address:                                                     Address:
         ---------------------------------------                      --------------------------------------

Facsimile:                                                   Facsimile:
           -------------------------------------                        ------------------------------------

Gillespie, Advertising, Magazine Marketing &                 The Gotham Group, Inc. - New York
    Public Relations, Inc. - New Jersey
                                                             By:
By:                                                              -------------------------------------------
    --------------------------------------------
                                                             Title:
Title:                                                              ----------------------------------------
       -----------------------------------------
                                                             Address:
Address:                                                              --------------------------------------
         ---------------------------------------
                                                             Facsimile:
Facsimile:                                                              ------------------------------------
         ---------------------------------------

Campbell Mithun, Inc. - Delaware                             FCB Worldwide L.L.C. - Delaware

By:                                                          By:
    --------------------------------------------                 -------------------------------------------

Title:                                                       Title:
       -----------------------------------------                    ----------------------------------------

Address:                                                     Address:
         ---------------------------------------                      --------------------------------------

Facsimile:                                                   Facsimile:
           -------------------------------------                        ------------------------------------

Hill, Holliday, Connors, Cosmopulos, Inc. -
    Delaware                                                 Campbell-Ewald Company - Delaware

By:                                                          By:
    --------------------------------------------                 -------------------------------------------

Title:                                                       Title:
       -----------------------------------------                    ----------------------------------------

Address:                                                     Address:
         ---------------------------------------                      --------------------------------------

Facsimile:                                                   Facsimile:
           -------------------------------------                        ------------------------------------

Deutsch Inc. - New York                                      Lowe Group Holdings, Inc. - New York

By:                                                          By:
    --------------------------------------------                 -------------------------------------------

Title:                                                       Title:
       -----------------------------------------                     ---------------------------------------

Address:                                                     Address:
         ---------------------------------------                      --------------------------------------

Facsimile:                                                   Facsimile:
           -------------------------------------                        ------------------------------------

Draft, Inc. - Delaware                                       Integrated Communications Corp. - New Jersey

By:                                                          By:
    --------------------------------------------                 -------------------------------------------

Title:                                                       Title:
       -----------------------------------------                    ----------------------------------------

Address:                                                     Address:
         ---------------------------------------                     ---------------------------------------

Facsimile:                                                   Facsimile:
           -------------------------------------                        ------------------------------------

Dailey & Associates - California                             Bozell Group, Inc. - Delaware

By:                                                          By:
    --------------------------------------------                 -------------------------------------------

Title:                                                       Title:
       -----------------------------------------                    ----------------------------------------

Address:                                                     Address:
         ---------------------------------------                      --------------------------------------

Facsimile:                                                   Facsimile:
           -------------------------------------                        ------------------------------------

Advantage International Holdings, Inc. -
     Delaware                                                Jack Morton Worldwide Inc. - Delaware

By:                                                          By:
    --------------------------------------------                 -------------------------------------------

Title:                                                       Title:
       -----------------------------------------                    ----------------------------------------

Address:                                                     Address:
         ---------------------------------------                      --------------------------------------

Facsimile:                                                   Facsimile:
           -------------------------------------                        ------------------------------------

Kaleidoscope Sports and Entertainment L.L.C. -
     Delaware                                                Initiative Media Worldwide, Inc. - California

By:                                                          By:
    --------------------------------------------                 -------------------------------------------

Title:                                                       Title:
       -----------------------------------------                    ----------------------------------------

Address:                                                     Address:
         ---------------------------------------                      --------------------------------------

Facsimile:                                                   Facsimile:
           -------------------------------------                        ------------------------------------

Newspaper Services of America, Inc. - Delaware               Wahlstrom Group L.L.C. - Delaware

By:                                                          By:
    --------------------------------------------                 -------------------------------------------

Title:                                                       Title:
       -----------------------------------------                    ----------------------------------------

Address:                                                     Address:
         ---------------------------------------                      --------------------------------------

Facsimile:                                                   Facsimile:
           -------------------------------------                        ------------------------------------

Carmichael Lynch, Inc. - Minnesota                           The Cassidy Companies, Inc. - Delaware

By:                                                          By:
    --------------------------------------------                 -------------------------------------------

Title:                                                       Title:
       -----------------------------------------                    ----------------------------------------

Address:                                                     Address:
         ---------------------------------------                      --------------------------------------

Facsimile:                                                   Facsimile:
           -------------------------------------                        ------------------------------------

Weber Shandwick Inc. - New York                              The FutureBrand Company, Inc. - California

By:                                                          By:
    --------------------------------------------                 -------------------------------------------

Title:                                                       Title:
       -----------------------------------------                    ----------------------------------------

Address:                                                     Address:
         ---------------------------------------                      --------------------------------------

Facsimile:                                                   Facsimile:
           -------------------------------------                        ------------------------------------
</TABLE>

<PAGE>
                                                                      Schedule A

                                   NOTEHOLDERS

Holders of the 4.50% Convertible Senior Notes due 2023

Holders of the Zero-Coupon Convertible Senior Notes due 2021

Holders of the 7.25% Notes due 2011

Holders of the 7.875% Notes due 2005

<PAGE>
                                                                       Exhibit A

                               ACCESSION AGREEMENT

          By execution of this Accession Agreement, the undersigned consolidated
subsidiary of The Interpublic Group of Companies, Inc. (the "Borrower") hereby
agrees, as of the date noted below, to become a party to and to be bound by all
of the terms and conditions of the Guaranty, dated as of [ ], 2003, by certain
subsidiaries of the Borrower in favor of the lenders named therein and The Bank
of New York, as trustee for the benefit of the noteholders named therein (the
"Guaranty") to the same extent as each of the other Guarantors thereunder.
Capitalized terms used but not defined herein shall have the respective meanings
ascribed thereto in the Guaranty. By execution of this Accession Agreement, the
undersigned shall have all the rights of a Guarantor and shall observe all the
obligations of a Guarantor, in each case as specified in the Guaranty. Delivery
of an executed counterpart of a signature page to this Accession Agreement by
telecopier shall be effective as delivery of an original executed counterpart of
this Accession Agreement.

                  [Date]

                                         [Guarantor] - [State of incorporation]

                                         By:
                                            ------------------------------------

                                         Title:
                                               ---------------------------------

                                         Address:
                                                 -------------------------------

                                         Facsimile:
                                                   -----------------------------
<PAGE>

                                                                       Exhibit B

                               ACCESSION AGREEMENT

          By execution of this Accession Agreement, the undersigned consolidated
subsidiary of The Interpublic Group of Companies, Inc. (the "Borrower") hereby
agrees, as of the date noted below, to become a party to and to be bound by all
of the terms and conditions of the Guaranty, dated as of August 15, 2003, by
certain subsidiaries of the Borrower in favor of the lenders named therein and
The Bank of New York, as trustee for the benefit of the noteholders named
therein (the "Guaranty") to the same extent as each of the other Guarantors
thereunder. Capitalized terms used but not defined herein shall have the
respective meanings ascribed thereto in the Guaranty. By execution of this
Accession Agreement, the undersigned shall have all the rights of a Guarantor
and shall observe all the obligations of a Guarantor, in each case as specified
in the Guaranty. Delivery of an executed counterpart of a signature page to this
Accession Agreement by telecopier shall be effective as delivery of an original
executed counterpart of this Accession Agreement.

                  [Date]

                                          [Guarantor] - [State of incorporation]

                                         By:
                                            -----------------------------------

                                         Title:
                                               --------------------------------

                                         Address:
                                                 ------------------------------

                                         Facsimile:
                                                   ----------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]