Document:

Exhibit 10.23

 

July 21, 2003

 

 

Franklin “Chip” Carey

4922 East Meadows Drive

Park City, Utah 84098

 

Dear Chip,

 

Thank you for considering
a position change with American Skiing Company.  We believe you possess distinguished skills and experience and
will make a valuable contribution to our team. 
Pursuant to our recent conversations, American Skiing Company is pleased
to make the following offer of employment to you.  These terms will be reflected in an Executive Employment
Agreement between you and the Company, which shall be the definitive, governing
document with respect to each of these terms:

 

	
  Position Title:

  	
   

  	
  Sr. Vice President of
  Sales and Marketing

  
	
  Position Entails:

  	
   

  	
  Overseeing entire sales and marketing function,
  developing annual sales and marketing plan in support of organizational
  strategy and objectives, directing implementation and execution of sales and
  marketing plan objectives to meet organizational revenue and expenditure
  requirements, overseeing and directing market research, competitor analyses
  and customer retention monitoring processes and initiatives, recommending
  sales strategies for improvement based on market research and analyses,
  building and developing sales and marketing team capable of carrying out
  needed sales and marketing initiatives.

  
	
  Position Reports To:

  	
   

  	
  B.J. Fair, Chief
  Executive Officer

  
	
  Location:

  	
   

  	
  Park City, Utah

  
	
  Start Date:

  	
   

  	
  June 2, 2003

  
	
  Annual Salary:

  	
   

  	
  $245,000.

  
	
  Bonus Plan:

  	
   

  	
  For each fiscal year
  (commencing with FY 04) you will be eligible to receive a bonus from the
  Company.  The award and amount of such
  bonus shall be based upon the achievement of predefined operating or
  performance goals and other criteria established by your supervisor, which
  goals shall give you the opportunity to earn a bonus in the following amount:
  up to 30% of your annual base salary.

  
	
  Phantom Equity:

  	
   

  	
  You will participate in
  the Phantom Equity plan at 6.50%.  The
  terms of your participation shall be

  
	
   

  	
   

  	
   

  

 

 

	
   

  	
   

  	
  governed exclusively by
  the Grant Agreement between you and the Company, together with the Company’s
  Phantom Equity Plan, as in effect from time to time.

  
	
  Severance:

  	
   

  	
  During the term of your
  employment agreement with the Company, you will be eligible for six months
  paid severance in the event of your involuntary employment termination without
  cause.

  

 

Along with this offer,
you will be entitled to continue to participate in the benefit programs
generally offered from time to time by the Company to its employees,  including health, life and dental insurance,  the company’s 401(k) program
skiing/snowboarding privileges, Perfect Turn clinics, vacation, and holiday
pay, as well as discounts at ASC retail stores and restaurants.

 

As a reminder, employment
with the American Skiing Company is at-will, meaning that both you and the
Company retain the right to end the employment relationship at any time, for
any reason, with or without notice.  ASC
is an Equal Employment Opportunity Employer.

 

Chip, congratulations on
this well deserved promotion.  We look
forward to your contributions to the continued success of the ASC team!  Please feel free to contact me with any
questions you may have at (435) 615-0384.

 

Sincerely,

 

	
  /s/ B.J. Fair

  	
   

  

B.J. Fair

Chief Executive Officer

 

 

CC:       Personnel File

 

2Exhibit

10.38

 

LEASE/RIGHT OF FIRST OFFER

 

This Lease/Right of First Offer Agreement is entered

into this 12th day of October, 2003, by and between JOHN BLAKE of Standish, Maine  (hereinafter called

“Landlord”), and LBO HOLDING, INC., a Maine corporation with a principal place

of business in Bartlett, New Hampshire (hereinafter called “Tenant”) and is

intended to amend and replace a prior Lease and Option Agreement between the

parties dated July 19, 2003 affecting the Premises.

 

1.             DESCRIPTION

OF  PREMISES. The  Landlord

hereby agrees to lease to the Tenant, and the Tenant hereby  agrees to accept, subject to the terms

and conditions hereinafter set forth, the premises in Bartlett, New Hampshire

described in the attached Exhibit A (hereinafter called the “Premises”).

 

2.             TERM.

The term of this lease shall commence on January 1, 2004 and shall

continue until December 31, 2014.

 

3.             RENT.

The rent shall be paid monthly on the first day of each month in arrears,

beginning January 1, 2004. The rent shall be $3,500.00 per month for the

rest of the months in 2004. Rent shall increase annually beginning

January 1, 2005 (applicable to the month of January, 2005) and each

January 1st thereafter during the term of this Lease, to reflect the

increase, if any, in the cost of living as determined by reference to the

Consumer Price Index for the Northeast – Size Class B/C, All Urban Consumers

(“CPI”) for November immediately preceding the January for which rent

will be adjusted, using the November CPI index from the immediately prior

year as a base month. The rent will be increased by the percent increase (if

any) of the CPI from the prior November to the November immediately

preceding the adjustment date.   Any

delay in adjusting the rent shall not waive Landlord’s right to retroactively

make the adjustment.

 

4.             REAL

ESTATE TAXES. The Tenant shall pay when due all real estate taxes assessed

against the Premises.

 

5.             UTILITIES:

SPECIAL ASSESSMENTS. The Tenant shall pay for any special assessments made

against the Premises or any utility charges or expenses incurred for the

Premises.

 

6.             USE.

The Premises shall be used by Tenant as a parking lot and for other activities

not inconsistent with its use as a parking lot.

 

7.             CONDITION

OF THE PREMISES. Landlord shall not be responsible for making any

improvements or repairs to the Premises. Tenant may make improvements to the

Premises at its expense with Landlord’s Consent, which shall not be

unreasonably withheld.

 

8.             RISK

OF LOSS.  All property of

every kind and the Premises shall be at the  sole risk  of the Tenant. Landlord

shall not be liable to the Tenant or any other

person for any injury, lose, damage, or inconvenience

occasioned by any cause whatsoever  to

said  property.

 

1

 

9.             INDEMNITY.

The Tenant agrees to indemnify, defend and hold harmless. the Landlord against

all loss, damage, liability,  or

expense, (including without limitation, attorneys fees and Court costs) arising out of injury to  third

parties or their property on or about  the  Premises  (unless each loss etc. is

due to the intentional  acts

or negligence of Landlord),  or in  connection with anything

owned or controlled by the Tenant on or about the Premises, or  resulting

from any act, failure  to act, or negligence of the Tenant or its

servants or agents on or about the Premises, or from any nuisance made or

suffered on or about  the

Premises.

 

Further, Tenant covenants and agrees that, with respect to any hazardous, toxic

or special wastes, materials or substances including asbestos, waste oil and

petroleum products (the “Hazardous Materials”) which Tenant, its agents,

employees or visitors, may use, handle, store or generate in the conduct of its

business at or adjacent to the Premises Tenant will: (i) comply with all

applicable laws, ordinances and regulations which relate to the treatment,

storage, transportation and handling of the Hazardous Materials (ii) that

Tenant will in no event permit or cause any disposal of Hazardous Materials in,

on or about the Premises in violation of applicable environmental laws; (iii)

that upon termination of this Lease, Tenant will at its expense, remove all

Hazardous Materials from the Premises which came to exist on, in or under the

Premises during the term of this Lease or any extensions thereof and comply

with applicable state, local and federal laws as the same may be amended from

time to time.  The terms used in this

paragraph shall include, without limitation, all substances, materials, etc.,

designated by such terms under any laws, ordinances or regulations, whether

federal state or local.  Tenant shall

indemnify and hold Landlord harmless from any and all claims, losses, damages,

fines, penalties, demands, causes of action, judgments, costs and expenses,

including without limitation attorneys’ fees, incurred by Landlord arising from

or in connection with Tenant’s breach of this paragraph.  The foregoing indemnity shall survive the

expiration or earlier termination of this Lease.

 

l0.            CONDEMNATION.

If the Premises are partially or wholly taken for any public use, the Landlord

or the  Tenant may terminate this lease by giving written notice to

the other party within thirty (30) days after the taking becomes final.

 

11.           INSURANCE.  Tenant shall, at its sole cost and expense, obtain and

maintain at all time during the initial and extension terms of this Lease, for

the protection of Landlord and Tenant, commercial general liability coverage

(including contractual liability insurance) in amounts not less than Two

Million Dollars ($2,000,000.00) combined single limit with deductibles of not

more than Five Thousand Dollars ($5,000.00) per occurrence, insuring against

all liability of Tenant and its representatives arising out of or in connection

with Tenant’s use and occupancy of the Premises.  Tenant shall name Landlord as additional insured in such

policy.  Such insurance shall be issued

by an insurance company licensed to do business in New Hampshire and rated in

the most recent edition of A. M. Best Company’s ratings of at least A, Class X,

written on an “occurrence” basis, and with a per location endorsement if such

insurance is part of a blanket policy covering multiple locations.  Tenant shall deposit with Landlord binding

certificates for such insurance (such as the ACORD 27 Form Certificate) showing

satisfaction of all of the conditions of this paragraph at or prior to the

commencement of the term, and thereafter within thirty (30) days prior to the

expiration of any such policies.  All

such insurance certificates shall provide that such policies shall not be

canceled without at least thirty

 

2

 

(30) days prior

written notice to each insured named therein.

 

12.           INSURANCE

RIGHTS. Tenant will not assign, transfer, or set over to its insurer any

right of subrogation against the Landlord because of any payment required to be

made under any policy of insurance on the Premises or the contents thereof.

Tenant agrees that a waiver of such subrogation rights will be procured and

written into any such insurance policies issued to it.

 

13.           WAIVER.

The Tenant covenants with the Landlord that the failure of the Landlord to

insist in any one or more instances upon the strict and. literal performance of

any of the covenants, terms or condition of this lease, or to exercise any

option of the Landlord herein contained, shall not be construed as a waiver or

a relinquishment for the future, of such covenant, term, condition or option,

but the same shall continue and remain in full force and effect. The receipt by

the Landlord of rent, with knowledge of the breach of any covenant, term or

condition hereof, shall not be deemed to be a waiver of such breach; and no

waiver by the Landlord of any covenant, term, condition or provision of this

lease, or of the breach thereof, shall be deemed to have been made by the

Landlord, unless expressly acknowledged in writing by the Landlord over its

signature.

 

14.           ASSIGNMENT.

Landlord hereby consents to any collateral assignment of this lease by Tenant

to any lender of Tenant. Landlord agrees to execute any documents reasonably

necessary to evidence  Landlord’s

consent as aforesaid.

 

15.           MISCELLANEOUS.

This lease is to be construed as a New Hampshire lease; is to take effect as a

sealed instrument; sets forth the entire agreement between the parties; is

binding upon and inures to the benefit of the parties hereto and their

respective heirs, devisees, personal representatives, executors,

administrators, conservators, successors and assigns; and may be canceled,

modified, or amended only by written instrument signed by the Landlord and the

Tenant.

 

16.           RIGHT

OF FIRST OFFER. If Landlord should, at any time during the term of this

Lease, elect to sell the Premises, Landlord shall send written notice to Tenant

notifying Tenant of Landlord’s intention to sell (“Notice”). Upon receipt of

Notice, Tenant shall have the right, for a period of ninety (90) days, to elect

to purchase the Premises, together with the property described on Exhibit B

attached hereto, for a purchase price in an amount equal to the sum of (i)

$356,000.00 plus (ii) $12,000.00 for each Dec. 31st that has passed

prior to the closing of the sale of the Premises, commencing with

December 31, 2003, plus (iii) any rent that is unpaid at the time of

closing, with rent to be prorated to the closing date, by delivering a written

acceptance of the Notice to Tenant (“Acceptance”).  Upon delivering Acceptance to Landlord within the ninety (90)

period as aforesaid, Tenant shall have up to twelve (12) months after the date

of the Notice to close on the purchase of the Premises.   This Right of First Offer shall be void and

deemed waived by Tenant if Tenant is in default of this Lease beyond any

applicable cure period, and shall terminate upon the termination of this

Lease.  Further, Tenant’s right to

purchase the Premises and the property described on Exhibit B pursuant to this

Right of First Offer shall expire three (3) months after delivery of Notice if

Tenant does not deliver Acceptance within the three (3) month time period

described above. If Tenant exercises this right of first offer, Landlord will

convey good and merchantable title to the Premises by Quitclaim Deed and the

parties agree 

 

3

 

to close on a date

specified by Tenant that is within twelve (12) months of the date of the

Notice.

 

17.           ASSIGNMENT.

This Lease and Right of First Offer shall continue to burden the Premises if

Landlord conveys any interest in the Premises. Tenant or its successors assigns

or the purchaser of substantially all of its assets will be entitled to the

benefits of this Lease and Right of First Offer as tenant.

 

18.           GOVERNMENTAL

REGULATIONS. Tenant shall faithfully observe all municipal and county

ordinances and state and federal statutes, rules and regulations now or

hereafter in force in the use of the Premises.

 

19.           PRIOR

LEASE, AGREEMENT MERGED. Both Landlord and Tenant agree that the

July 19, 1994 Lease/Option Agreement between Landlord and Tenant is

terminated and superseded by this Lease and Right of First Offer, which

constitutes the entire agreement between the parties.

 

20.           Default.

If Tenant defaults in the performance of its obligations pursuant to this Lease

and such default is not cured within 30 days of a Tenant receiving written

notice from Landlord of the nature of the default (unless such default is not a

payment default and can not be cured within 30 days, in which case Tenant shall

diligently pursue a cure of the default), the Landlord may exercise the

following rights:

 

a. Landlord may

commence an equitable action in a court of competent jurisdiction seeking

enforcement of the terms of this Lease.

 

b. Landlord may

commence an action at law in a Court of competent jurisdiction to recover any

amounts due Landlord pursuant to this Lease.

 

c. Landlord may

send a written notice of lease termination to Tenant. If Tenant does not cure

the default or exercise the option to purchase in paragraph 16 within 30 days

of receipt of the written termination notice, then Landlord may begin legal

proceedings to recover possession of the Premises. Landlord shall take

reasonable steps after regaining possession to sell or lease the Premises to a

third party to mitigate Landlord’s damages.

 

d. Landlord may

collect his reasonable costs of enforcing this Lease, including, but not

limited to, reasonable attorneys fees.

 

21.           RECORDING

MEMORANDUM. Both Landlord and Tenant have executed a separate memorandum

containing the description of the Premises, the term and the Right of First

Offer rights contained in this Lease. Tenant is authorized to record the

memorandum in the Carroll County Registry of Deeds.

 

22.           TWO

EASEMENTS. Landlord hereby confirms that Mt. Attitash Lift Corp. may use

the premises described ‘in Exhibit B for parking by virtue of its easements

reserved in a November 12, 1982 deed recorded in Book 870, Page 361, and

may use all utility easements described in the Declaration of Easements and

Restriction dated November 30, 1993 and recorded 

 

4

 

in Book 1555, Page 97.

 

23.           NOTICE:

Any notice or other communication required or permitted under this Agreement

will be adequately given when it is personally delivered; when it is sent by

fax, with confirmation of receipt; or one day after it is sent by overnight

courier paid by the sender, and addressed

 

	

  To Landlord at:

  
	

   

  
	

   

  	

  35 Watchic Road 1

  
	

   

  	

  Standish, Maine 04084

  
	

   

  	

  Fax: (207) 642-4041

  
	

   

  	

   

  
	

  With a copy to:

  
	

   

  	

   

  
	

   

  	

  John L. Carpenter, Esq.

  
	

   

  	

  Bernstein, Shur, Sawyer & Nelson, P.A.

  
	

   

  	

  100 Middle Street

  
	

   

  	

  P.O. Box 9729

  
	

   

  	

  Portland, Maine 

  04104-5029

  
	

   

  	

  Fax No.: (207) 774-1127

  
	

   

  	

   

  
	

  To Tenant:

  
	

   

  	

   

  
	

   

  	

  LBO Holding, Inc.

  
	

   

  	

  P.O. Box 308

  
	

   

  	

  Bartlett, NH 03912

  
	

   

  	

  Attn: Tom Chasse, President and Managing Director

  
	

   

  	

  Fax no.: 

  (603) 374 1960

  
	

   

  	

   

  
	

  With a copy to:

  
	

   

  	

   

  
	

   

  	

  Foster Stewart, Esq.

  
	

   

  	

  American Skiing Company

  
	

   

  	

  One Monument Way

  
	

   

  	

  Portland, ME 04101

  
	

   

  	

  Fax no.: 

  (207) 791-2607

  

 

Any party may change the address or fax number to

which notices or other communications are to be given by furnishing the other

parties with written notice of the change.

 

24.           Tenant

agrees to look solely to Landlord’s interest in the Premises for recovery of

any judgment against Landlord it being agreed that Landlord shall never be

personally liable for any such judgment. 

The provisions contained in the foregoing sentence shall not limit any

right that Tenant might otherwise have to obtain an injunctive relief against

Landlord, or any other action not involving the personal liability of 

 

5

 

Landlord. Under no circumstances shall Landlord ever

be liable for punitive, indirect or consequential damages.

 

IN WITNESS WHEREOF, the Landlord has signed and sealed

this instrument, and the Tenant has caused this instrument to be signed and

sealed by its duly authorized officer, on the day and first year written.

 

 

	

  In the presence of:

  	

  LANDLORD:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  	

  /s/ John

  Blake

  	

   

  
	

  Name

  	

  John Blake

  
	

   

  	

   

  
	

   

  	

  TENANT:  LBO

  HOLDING; INC.

  
	

   

  	

   

  
	

   

  	

   

  	

  /s/ Tom Chasse

  	

   

  
	

  Name:

  	

  Name: Tom Chasse

  
	

   

  	

  Title: President

  
					

 

6

 

EXHIBIT A

 

TRACT 1:

Beginning on the Northerly edge of Route 302, the same being 10 feet West of a

former building; thence running Easterly along said highway a distance of 113

feet to a point; thence turning and running Northerly and perpendicular to the

said highway to land of Maine Central Railroad; thence turning and running

westerly along land of said Railroad to a point; thence turning and running

Southerly and parallel to the second mentioned course, to point of beginning.

 

TRACT 2:

Beginning at a point on the Northerly side of Route 302, the same being ten

(10) feet westerly of a former building and being the Northwesterly corner of

land now or formerly of Russo; thence Northerly along land now or formerly of

Russo to land of Maine Central Railroad; thence Westerly along land of said

Maine Central Railroad to land of Garland; thence Southerly along land of said

Garland to Route 302; thence about 257 feet along said highway, Route 302, to

the point of beginning.

 

EXHIBIT B

 

A certain lot or parcel of land shown as Lot 2 on a plan entitled

“Proposed Boundary Line Adjustment, Property of Attitash Associates, Route 302,

Bartlett, New Hampshire,” dated May 3, 1993 by Thaddeus Thorne - Surveys,

Inc. and approved by the Bartlett Planning Board on May 25, 1993 and recorded in the Carroll County Registry

of Deeds at Book 144, Page 69, subject to a parking easement reserved in the

deed of Mt. Attitash Lift Corporation to Seller dated November 12, 1982

and recorded in Carroll County Registry of Deeds at Book 870, Page 361 and

subject to a sewer easement and utility easements benefitting the adjacent Lot 1  as shown on the plan and as

granted by Attitash Associates in a deed to Attitash Mountain Service Company,

Inc. dated November 30, 1993 and recorded in the Carroll County Registry

of Deeds; subject to the water  and

drainage easements for the benefit of Mt. Attitash Lift Corporation as granted

in the Declaration of Easements and Restrictive Covenants by Attitash

Associates and Mt. Attitash Lift Corporation dated November 30, 1993 and

recorded in the Carroll County Registry of Deeds in Book 1555, Page 97.

 

7

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