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March 23, 2014

uear !ohn:
l read wlLh lnLeresL your recenL quoLe ln Lhe F)&? "%2#&B, vall should be Lalklng wlLh us abouL ways Lo
resolve Lhls dlspuLe.". l compleLely agree wlLh LhaL senLlmenL, buL am puzzled because as you know,
we offered Lo meeL wlLh you on numerous occaslons lasL fall and you sald you were noL lnLeresLed.
l am sure we can boLh agree LhaL Lhe resoluLlon of Lhese lssues ls of Lhe hlghesL lmporLance Lo Lhe ark
ClLy communlLy. As such, l LhoughL lL was approprlaLe for me Lo ouLllne Lo you where we belleve Lhlngs
sLand and Lo share Lhls leLLer wlLh Lhe communlLy, so we can begln a process LhaL ls fully LransparenL Lo
everyone ln ark ClLy. l apologlze ln advance for Lhe lengLh of Lhe leLLer, buL l belleve Lhese are crlLlcal
Loplcs LhaL need Lo be dlscussed.
!"#$%&'()*
l Lhlnk lL's lmporLanL Lo provlde some conLexL as Lo how we boLh flnd ourselves here Loday. lor many
years, CM8 leased subsLanLlally all of lLs skl Lerraln from 1allsker CorporaLlon. 1he lease provlded
CM8 a very favorable lease raLe (press reporLs lndlcaLed only $130,000 per year.) 1he lease was
comlng due on Aprll 30, 2011, buL lL allowed CM8 Lo renew for an addlLlonal 20 years lf CM8 provlded
wrlLLen noLlce Lo 1allsker by March 1, 2011. As you know, CM8 dld noL provlde Llmely wrlLLen noLlce Lo
1allsker. ln uecember 2011, 1allsker lnformed CM8 LhaL CM8 had noL approprlaLely renewed lLs
lease. CM8 dlsagreed LhaL Lhe lease had ended. 1allsker offered CM8 a new lease wlLh more
expenslve Lerms. CM8 decllned Lo Lake 1allsker's offer and flled a lawsulL agalnsL 1allsker. More Lhan
a year afLer CM8 refused Lo pay 1allsker's new renL requesL and Lhen sued 1allsker, 1allsker secured a
new LenanL and new economlc Lerms for Lhe land, from companles assoclaLed wlLh vall 8esorLs ln
con[uncLlon wlLh leaslng Lhe Canyons Lo vall 8esorLs.
Whlle Lhere has been much emoLlon and drama regardlng Lhese evenLs, whaL Lransplred ls relaLlvely
slmple: a landlord belleved LhaL lLs LenanL's lease had explred and wanLed hlgher renL. 1he LenanL
refused Lo pay and sued Lhe landlord, so Lhe landlord found a new LenanL.
,"-. /01'&213 4)20&012
As you know, our Company has had an lnLeresL ln comlng Lo uLah for a long Llme and has had a serlous
lnLeresL ln Canyons LhaL daLes back Lo 2007. We approached 1allsker abouL Lhe Canyons agaln ln AugusL
2012 and our conversaLlons lnlLlally focused solely on LhaL resorL. Powever, 1allsker lndlcaLed an
lnLeresL ln also leaslng Lo us Lhe CM8 land. 1hey lndlcaLed LhaL Lhey were noL happy wlLh CM8 as Lhe
LenanL and wanLed Lo brlng ln an operaLor llke vall 8esorLs.


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Clven Lhe acrlmonlous relaLlonshlp beLween 1allsker and CM8 and Lhe ongolng llLlgaLlon, we
undersLood LhaL Lhere would be challenges as a resulL of enLerlng lnLo Lhls slLuaLlon. We hoped LhaL we
could be a caLalysL Lo flnd a soluLlon LhaL would be ln Lhe besL lnLeresLs of boLh parLles, guesLs of Lhe
resorL and Lhe communlLy.
Cur Company belleves LhaL [olnlng LogeLher Lhe skl experlences of boLh Canyons and CM8 wlll creaLe a
one-of-a-klnd opporLunlLy LhaL could be a game changer for Lhe ark ClLy communlLy and for uLah skllng
and Lourlsm. As you know, Skl uLah recenLly proposed Lhe Cne WasaLch concepL LhaL CM8 as well as
Canyons supporLed. 1hls concepL of creaLlng an lnLerconnecLed skl experlence ls wldely belleved Lo
drlve Lremendous enLhuslasm among sklers and rlders. unforLunaLely, desplLe Lhe relaLlve ease wlLh
whlch lL could be done, Canyons and ark ClLy have never been able Lo compleLe such a connecLlon.
Cur Company hoped Lo be a parL of Lhe efforL Lo make lL happen. Cf course, guesLs also wanL each
resorL Lo reLaln lLs unlque characLer and hlsLory - someLhlng LhaL vall 8esorLs has been and ls commlLLed
Lo, noL [usL ln uLah, buL for all 10 of our resorLs.
50%'2-"2-')
As you are aware, our Company reached ouL Lo you lmmedlaLely upon becomlng lnvolved ln Lhls
slLuaLlon ln an efforL Lo see lf an amlcable soluLlon could be reached, and you and l had a face-Lo-face
meeLlng ln !une 2013
1
. ln CcLober 2013 and agaln ln november 2013, l advlsed your represenLaLlves
LhaL l would be wllllng Lo meeL wlLh you and your famlly anyLlme, anywhere ln an efforL Lo see lf a
soluLlon could be reached. l was Lold LhaL you dld noL belleve lL was Lhe rlghL Llme for a dlscusslon.
Slnce LhaL Llme, l have noL recelved any offers or requesLs from you or anyone else aL CM8 Lo meeL and
Lo dlscuss Lhe slLuaLlon. We Look Lhls Lo mean LhaL CM8 had a sLrong convlcLlon abouL Lhe sLrengLh of
lLs legal case and wanLed Lo conLlnue Lo pursue LhaL avenue ln Lhe hopes of prevalllng.
As you are also aware, as parL of our deal wlLh 1allsker, vall ls responslble for overseelng Lhe llLlgaLlon
on 1allsker's behalf. And because you lnlLlaLed Lhls llLlgaLlon, 1allsker ls Lhe !"#"$!%$& ln Lhls case. We
lnLend Lo conLlnue Lo vlgorously defend 1allsker ln Lhls lawsulL, buL LhaL should noL be mlsconsLrued Lo
suggesL LhaL we don'L wanL a negoLlaLed resoluLlon, whlch we have conslsLenLly Lold you ls our
preference.



1
As you know, we agreed LhaL Lhe conLenLs of our dlscusslons were confldenLlal. Powever, lf you agree,
we would be happy for boLh of us Lo dlsclose Lhe conLenLs of all Lhese dlscusslons Lo Lhe communlLy, ln
Lhe lnLeresLs of full Lransparency.


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6(2#'70 '8 290 :-2-%"2-')
lf a CourL ulLlmaLely rules LhaL CM8's lease wlLh 1allsker was renewed, Lhen CM8's bellef ln lLs case
and lLs numerous publlc asserLlons wlll be upheld and l would assume LhaL CM8 wlll be able Lo
conLlnue Lo operaLe on 1allsker's land for Lhe foreseeable fuLure. lf Lhls ls Lhe ouLcome, l wlll offer you
my slnceresL congraLulaLlons. Cur Company wlll also remaln very lnLeresLed ln conLlnulng Lo work wlLh
CM8 on opporLunlLles Lo creaLe a beLLer guesL experlence aL our respecLlve resorLs.
Powever, lf a CourL ulLlmaLely rules LhaL CM8's lease has explred, Lhen vall wlll become 1allsker's
LenanL on LhaL land and lL ls absoluLely our lnLenLlon Lo uLlllze and operaLe LhaL Lerraln, whlch was
1allsker's lnLenL ln leaslng lL Lo us. lor some reason, you have conslsLenLly Lrled Lo porLray such a
slLuaLlon as wlLhouL purpose" or fuLlle". ln Lhe recenL F)&? "%2#&B sLory you menLloned LhaL we
would be lefL wlLh land wlLhouL any economlc purpose..wlLhouL Lhe base and parklng faclllLles, whlch
nelLher vall nor 1allsker own, vall cannoL operaLe a skl resorL on Lhe properLy."
l am noL sure l undersLand Lhose commenLs. ?ou seem Lo be suggesLlng LhaL because you own Lhe base
and parklng faclllLles, even lf your lease Lo CM8 explred, 1allsker, as landlord, has no rlghL Lo flnd
anoLher LenanL LhaL would pay more Lhan you would. lurLher, Lhere are numerous ways LhaL Lhls
Lerraln can be poLenLlally used for skllng, parLlcularly slnce Lhe land ls lmmedlaLely ad[acenL Lo Canyons
and Lhe Lwo can be easlly connecLed wlLh a new chalrllfL. 8uL lf Lhe lnLenL of your commenLs was Lo
suggesL LhaL uslng your base lands allows for a much beLLer guesL experlence and ls crlLlcal for Lhe ark
ClLy communlLy, Lhen we compleLely agree. 8uL, lf your lease has been found Lo have explred and we
are Lhe new LenanL, Lhere are many ways for us Lo work LogeLher for everyone's beneflL.
;".0
vall would be wllllng Lo purchase Lhe base and parklng faclllLles from CM8. ln a guesL edlLorlal ln Lhe
F)&? "%2#&B, you sald LhaL vall was looklng for a sLeal-of-a-deal," and ln @38.>%88 G%%? you sald vall
wanLed you Lo sell aL a dlscounL." !usL Lo be clear, vall 8esorLs would be wllllng Lo pay falr markeL value
for any of Lhe asseLs you have LhaL would be helpful Lo us ln operaLlng Lhe resorL. We would also be
wllllng Lo [olnLly reLaln lndependenL Lhlrd parLles Lo help us arrlve aL a falr value. Whlle each slLuaLlon ls
unlque, Lhere have been counLless appralsals performed on land and parklng faclllLles aL Lhe base of skl
resorLs. lf you were wllllng Lo sell Lhose asseLs, we are confldenL we can reach a falr prlce for boLh
parLles and ensure Lhe conLlnued smooLh operaLlon of Lhe resorL.




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<##011
Cn Lhe oLher hand, lf you are noL lnLeresLed ln selllng Lhe base and parklng faclllLles, we Lhlnk we can
work wlLh LhaL as well. ln Lhe @38.>%88 G%%? arLlcle, you menLloned a nuclear opLlon" under whlch
CM8 would bulld a Woodward faclllLy on Lhose base lands.
CM8 has already made an appllcaLlon Lo Lhe clLy Lo puL a Woodward faclllLy on Lhose base lands and
your plans are compleLely conslsLenL wlLh allowlng access Lhrough LhaL properLy Lo Lhe skl resorL. Cur
Company would be more Lhan wllllng Lo pay Lhe cosL or falr value for all Lhe skler parklng and skler
faclllLles descrlbed ln your plan. ln Lhls way, you could bulld and operaLe Lhe Woodward faclllLy, proflL
from any resldenLlal or commerclal developmenL on Lhe slLe, Anu provlde conLlnued access Lo Lhe
mounLaln and Lhe skl faclllLles.
1here seems Lo be a concern ln Lhe communlLy LhaL lf you lose your lease, you could use your base lands
Lo block access Lo Lhe skl mounLaln Lhrough LhaL porLal. Clven LhaL much of Lhe 1own's plannlng and
lnvesLmenL has relled on LhaL porLal, we Lhlnk lL's lmporLanL Lo leL folks know LhaL's noL golng Lo
happen. Candldly, we are noL sure why you would ever conslder dolng LhaL. Lven lf you lose your lease
Lo Lhe mounLaln, you have a very valuable plece of properLy. 8uL lLs value comes from Lhe access lL
allows Lo Lhe skl mounLaln. As every realLor and developer ln ark ClLy knows, whaLever you mlghL wanL
Lo do on LhaL properLy, lL wlll be far more valuable lf sklers use LhaL land Lo access Lhe resorL.
1hreaLenlng Lo block access Lhrough your properLy slmply does noL make good buslness sense.
lurLher, CM8 recenLly submlLLed Lo Lhe CourL cerLaln developmenL agreemenLs enLered lnLo beLween
CM8 and Lhe ClLy. lnLeresLlngly, as ouLllned ln Lhe agreemenLs, CM8 has already made a commlLmenL
Lo Lhe ClLy LhaL CM8's land aL Lhe base of Lhe resorL would always be used, wheLher for developmenL
or oLherwlse, ln a way LhaL ls conslsLenL wlLh provldlng access Lhrough Lhose lands Lo Lhe resL of Lhe skl
resorL. And Lhose agreemenLs speclflcally conLemplaLed a slLuaLlon where CM8 may noL be operaLlng
Lhe resorL.
As such, for a whole hosL of reasons, even lf you are noL lnLeresLed ln selllng Lhe base and parklng
faclllLles, we belleve lL ls ln your flnanclal, legal and Lhe communlLy's lnLeresL Lo work collaboraLlvely
wlLh us on Lhe deslgn and funcLlon of Lhose properLles Lo boLh maxlmlze Lhelr value Lo you and ensure
conLlnued access Lo Lhe resorL.





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=7>.'?001
More lmporLanL Lhan almosL anyLhlng else ls how any of Lhls may lmpacL Lhe CM8 employees.
Cbvlously, Lhls ls CM8's responslblllLy. Powever, should CM8 lose lLs lease Lo Lhe mounLaln, we wanL
Lo make lL clear LhaL our Company ls wllllng Lo hlre subsLanLlally all of Lhe CM8 employees who are
lnvolved wlLh runnlng Lhe resorL. 1hls would be Lrue wheLher we are able Lo purchase Lhe base and
parklng faclllLles or lf CM8 conLlnues Lo own Lhose asseLs, and we work ouL an access agreemenL of
some sorL.
Lveryone aL vall 8esorLs ls very cognlzanL of how dlfflculL Lhls has been for CM8, lLs employees, lLs
guesLs, lLs parLners and Lhe ark ClLy communlLy. 8uL, lf CM8 should lose lLs lease, CM8 alone needs
Lo Lake responslblllLy for LhaL ouLcome. CM8's cholce Lo flle Lhls llLlgaLlon, raLher Lhan accepL 1allsker's
new renL proposal, was a calculaLed buslness declslon. 8lamlng 1allsker or calllng vall a bully" ls noL
warranLed or consLrucLlve. 1hls phase of Lhe llLlgaLlon wlll come Lo a close soon enough, aL whlch Llme
we need Lo move on Lo a reasonable and consLrucLlve soluLlon for all lnvolved. As before, we remaln
avallable Lo meeL aL any Llme and ln any place Lo dlscuss Lhese maLLers.

All Lhe besL,

8ob kaLz
Chalrman of Lhe 8oard of ulrecLors and Chlef LxecuLlve Cfflcer
vall 8esorLs, lnc.