APPRAISAL OF THE LIQUIDATION VALUE Mt. Ashland Ski Area by hiy10027

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									 APPRAISAL OF THE

 LIQUIDATION VALUE

 Mt. Ashland Ski Area

         For

City of Ashland, Oregon



  OCTOBER 26 2006
AN ORDERLY LIQUIDATION VALUE APPRAISAL
                  OF
         THE PROPERTY AT THE




     MT ASHLAND SKI AREA
          ASHLAND, OREGON

           OCTOBER 26, 2006
                                                                                          i
                                           511 W 22nd Ave.         Post Falls, ID 83854
                                           (208) 457-1148           (208) 699-3817 Cell
                                           (866) 233-1947 Fax       TED FARWELL MAI
                                           www.winterstar.us    winterstar@adelphia.net




January 3, 2007

Mr. Lee Tuneberg
City of Ashland
Ashland OR

Re:   Appraisal – Orderly Liquidation Value of Mt. Ashland Ski Area Properties

Dear Mr. Tuneberg;

I have prepared an orderly liquidation value appraisal of the Mt. Ashland Ski Area
properties in Jackson County, Oregon as requested and authorized by the City of
Ashland by form contract dated October 4, 2006. The purpose of this appraisal is to
estimate the orderly liquidation value of the Mt. Ashland Ski Area properties, as they
existed on October 26, 2006. The properties are entirely located on a 1,180-acre USFS
land use permit.

This valuation is dated October 26, 2006. The attached report of 47 pages describes the
properties and the appraisal process.

                                     CERTIFICATION

I certify that, to the best of my knowledge and belief:

    The statements of fact contained in this report are true and correct.
    The report analyses, opinions, and conclusions are limited only by the reported
      assumptions and limiting conditions, and are my personal, unbiased professional
      analyses, opinions, and conclusions.
    I have no present or prospective interest in the property that is the subject of this
      report, and I have no personal interest or bias with respect to the parties
      involved.
    My compensation is not contingent on an action or event resulting from the
      analyses, opinions, or conclusions in, or the use of, this report.
    The appraisal assignment was not based upon a requested minimum valuation, a
      specific valuation, or approval of any proposed financing.
    My analyses, opinions and conclusions were developed, and this report has been
      prepared, in conformity with the Uniform Standards of Professional Appraisal
      Practice.
    I have made a personal inspection of the property that is the subject of this



                                                                                          i
                                                                                      ii
      report.
    Mr. Dan Pahl CEA, Mr. John Ellis PE, Mr. Craig Loup and Mr. Ken Olmstead
      provided significant property appraisal assistance to the person signing this
      certification.
    As of the date of this report I have completed the requirements of the continuing
      education program of the Appraisal Institute.

  I have a unique combination of                          MT ASHLAND SKI AREA
  professional expertise and experience              Orderly Liquidation Value of Property
  supporting my competency to conduct                              26-Oct-06
  such a special appraisal assignment. I                                             Orderly
  have been a consultant to the North                                              Liquidation
                                                 Asset                                Value
  American ski industry for forty-five years.
                                                 Five Ski Lifts                      $152,000
  I have designed, built, and operated ski       Rolling Stock                       $190,000
  areas. In addition, I am a professional        Inventories                         $105,000
  appraiser and have prepared some 120-          Generators (4)                       $24,000
  ski area appraisals over the past 27           Waste Water Treatment                $40,000
  years. My detailed resume is attached.         Portable Buildings (5)               $11,500
                                                 Furniture & Fixtures and            $150,200
  It is my opinion that the orderly              Maintenance Equipment
  liquidation value of the Mt. Ashland Ski       TOTAL Liquidation Value             $672,700
  Area properties, as described in the
                                                 Estimated cost to remove
  attached report and “as is” on October         Ski Lifts                        ($921,500)
  26, 2006 is:                                   Buildings                        ($243,000)
                                                 NET TOTAL                        ($491,800)


                             $ 672,700:
     SIX HUNDRED & SEVENTY TWO THOUSAND, SEVEN HUNDRED DOLLARS

  The estimate of the major costs to remove the four ski lifts is $921,500. The estimate
  to remove the buildings is $243,000. Total removal costs are projected at $1,164,500.

  This leaves a deficit of $491,800.

Sincerely




Ted Farwell MAI

State Certified General Real Estate Appraiser, State of Oregon
Temporary Permit Number –TNR1447

Certified General Appraiser #CGA 722      Certified General Appraiser #CGO 1313626
State of Idaho                            State of Colorado




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                                                                                              iii


APPRAISER
CERTIFICATION

I certify that, to the best of my knowledge and belief:

    The statements of fact contained in this report are true and correct

   The reported analyses, opinions, and conclusions are limited only by the reported
     assumptions and limiting conditions, and is my personal, impartial and unbiased
     professional analyses opinions and conclusions.

   I have no present or prospective interest in the property that is the subject of this
     report, and I have no personal interest or bias with respect to the parties involved.

   My engagement in this assignment was not contingent upon developing or reporting
     predetermined results.

   My compensation for completing this assignment is not contingent upon the
     development or reporting of a predetermined value or direction in value that favors
     the cause of the client, the amount of the value opinion, the attainment of a
     stipulated result, or the occurrence of a subsequent event directly related to the
     intended use of this appraisal.

   My analyses, opinions and conclusions were developed, and this report has been
     prepared in conformity with the Uniform Standards of Professional Appraisal
     Practice. I have taken the mandatory Uniform Standards of Professional Appraisal
     Practice class, and thereby have been USPAP certified by the American Society of
     Appraisers per their re-education program. I am also a member in good standing with
     AMEA (Association of Machinery & Equipment Appraisers).

   I have made a physical inspection of all the assets listed and from that inspection, I
     have formulated an opinion of value that is the subject of this report.

     No one provided significant Professional assistance to the person signing this
     report.




                                                                                              iii
                                                                                        1


                                       SECTION I

            MT. ASHLAND ORDERLY LIQUIDATION VALUE APPRAISAL

                                     PREFACE
                                EXECUTIVE SUMMARY

This is an orderly liquidation value appraisal of the Mt. Ashland ski area property.

A.     CLIENT & USER OF THE REPORT:

Mr. Lee Tuneberg
City of Ashland
Ashland, OR

B.     DATE OF THE APPRAISAL:

October 26, 2006

C.     DATE OF THE REPORT:

January 3, 2007

D.     DEFINITION OF ORDERLY LIQUIDATION VALUE:

A professional opinion of the estimated most probable price expressed in terms of
currency which the subject equipment could typically realize at a privately negotiated
sale, properly advertised and professionally managed, by a seller obligated to sell over
an extended period of time, usually within six to twelve months, as of the effective date
of the appraisal report. Further, the ability of the asset group to draw sufficient
prospective buyers to insure competitive offers is considered. All assets are to be sold
on a piecemeal basis 'as is' with purchasers responsible for removal of assets at their
own risk and expense. Any deletions or additions to the total assets appraised could
change the psychological and/or monetary appeal necessary to gain the value
indicated.

E.     DEFINITION OF EXTERNAL OBSOLESCENCE:

Used facilities and equipment suffer both physical deterioration and functional
obsolesce. They may also suffer a decrease in market value due to external obsolesce.
The Appraisal of Real Estate twelfth edition describes External Obsolesce as:

A temporary or permanent impairment of the utility or salability of an improvement or
property due to negative influences outside of the property. (i.e. market conditions)


MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC.
OCTOBER 26, 2006
                                                                                            2


F.   PURPOSE OF THE APPRAISAL:

The purpose of this appraisal is to estimate the orderly liquidation value of the Mt.
Ashland ski area properties herein described, as they exist on October 26, 2006. This
estimate is in support of the terms of the Mt. Ashland Ski Area Lease where the lessee
is required to maintain a “Minimum Liquidation Value” for the leased property.

G. SCOPE OF THIS APPRAISAL:

The scope of this appraisal is to inspect the property, consider market characteristics
and trends, collect and analyze pertinent data, and develop a conclusion about the
property’s liquidation value. The nature of this assignment precludes use of either the
income or cost approaches to value. Sales comparison is the primary approach used.
The specific methodology of data collection and analysis, verification and valuation is
detailed within this report.

Winterstar Valuations, Inc. has put together a team of experts to inspect and evaluate
the existing assets to determine the most probable liquidation value if sold on the date
of inspection, and removed.

Our procedure is to first identify all of the assets with potential value upon ski area
closure, next to inspect each piece of equipment for its condition and finally prepare an
estimate of its value in place prior to removal. In the case of assets that require
significant costs to remove (ie: ski lifts - buildings) we have estimated such removal
costs.

We anticipate that the major items will be the ski lifts, the grooming and other vehicles,
the rental skis, snowboards, the wastewater treatment plant and the 275K generators.

We anticipate that small items such as furniture, fixtures, tools, computers, office
equipment, etc. would be offered in bulk or at auction. Where items are routinely offered
in used equipment sales outlets, and a used value can be supported, the item was
evaluated.

No capitalized costs for planning and/or environmental studies have any liquidation
value.

The balance of this report is divided into three sections.

Section II discusses the potential liquidation of the five ski lifts. It includes a chairlift
removal cost estimate.

Section III discusses the potential liquidation value of the rolling stock.

Section IV discusses the potential liquidation value of the balance of the properties. It
includes an estimate of the costs to remove the buildings.
MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC.
OCTOBER 26, 2006
                                                                                     3




G. SUMMARY OF FACTS AND CONCLUSIONS:

   1. The five ski lifts have an orderly liquidation value of …………….$152,000

   2. The rolling stock has an orderly liquidation value of…………….. $189,700

   3. The inventories have an orderly liquidation value of…………….. $103,100

   4. The balance of the properties have an orderly liquidation value of $227,800

   5. The total orderly liquidation value of all city property used by the lessee, Mt.
      Ashland Associates, as of October 26, 2006 is…………………... $672,600

   6. The estimated cost to remove the four fixed ski lifts is……………. ($921,500)

   7. The estimated cost to remove the buildings is……………………..($243,000)

   8. The estimated costs to remove the ski lifts and buildings exceeds orderly
      liquidation value by…………………………………………….……… ($491,900)


H. RANGE OF CERTAINTY:

It should be realized that these are estimates of liquidated values to be realized via
distressed sale and/or auction and should reasonably be expected to vary +/- 10%. In
addition time will also cause variances as these assets continue to depreciate, and
market conditions change.




MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC.
OCTOBER 26, 2006
                                                                                                     4


                                             SECTION II

                   MT. ASHLAND LIQUIDATION VALUE APPRAISAL

                                              SKI LIFTS
Inventory:

Mt. Ashland has the following ski lift equipment. Mr. John Ellis PE inspected all lifts on
November 8, 2006.

Valuation: Ski Lifts

The Mt. Ashland Ski Area includes two old and essentially obsolete ski lifts and two
more recent smaller lifts. The orderly liquidation value estimate shown below is for the
ski lift equipment as if removed and sitting in the parking lot ready to load on a truck.
                                      MT ASHLAND
                                  SKI LIFT EQUIPMENT INVENTORY

           LIFT IDENTIFICATION              #1         #2         #3          #4          #5
           NAME                             Ariel    Windsor    Sonnet      Comer     Pinocchio
           DESCRIPTION
           Ski Lift Type                    DC        DC         TC          TC          WR
           Manufacturer                    Riblet     Yan        Riblet      Riblet   Bruckschlogl


           Year Installed                  1964      1978       1987        1987     2001
           Top Elevation                    7,533      7,080      6,751       6,688 Portable
           Base Elevation                   6,445      6,350      6,650       6,350
           Lift Length            (feet)    2,960      2,035         872      1,280      152
           Vertical Rise          (feet)    1,088        730         101        338       17
           Slope Length           (feet)    3,153      2,161         877      1,285      152
           Capacity              (PPH)      1,080      1,200      1,200       1,800      600
           VTF/hour               (000)     1,175        876         121        608       10
           H.P.                                          150          30         75        4
           Rope Speed          (ft/min)     500       500        305         400      200
           Rope Size          (inches)     1.250     1.250      1.125       1.125   16mm
           Number of carriers               110        81         39         64       N/A
           Number of towers                  19       N/A          6          9        0
           USEFULL LIFE        (Years)       40        40         40         40       40
           REMAINING LIFE (Years)           (2)        12         21         21       35

           Orderly Liquidation Value $10,000        $25,000    $60,000     $50,000    $7,000



Mr. John Ellis PE filed the following report. Copies of the original lift specifications are
attached.

Please note that discussions with Mr. Ellis subsequent to his report revealed that filling
terminal columns with concrete is/was normal construction procedure to help anchor the
terminal.
MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC.
OCTOBER 26, 2006
                                                                                          5


Outback Construction, Inc.
Ashland, Oregon

November 30, 2006

Re: Chairlift Removal @ Mt. Ashland, Oregon

The following proposal submitted to Ted Farwell for the removal of the chairlifts at Mt.
Ashland, Oregon with removal work being performed by Outback Construction, Inc.
This proposal and work scope is subject to approval by the U.S. Forest Service, Mt.
Ashland Ski Resort and any other concerning parties involved in this decision to remove
the equipment from the ski resort property.
Prices are based on current rates and ideal construction conditions to include access to
all terminal sites with cranes and equipment to remove terminal structures.
Towers shall be removed with helicopters where cranes or other conventional methods
of removal cannot be used.
Prices are based on the understanding that the equipment shall be removed,
disassembled and transported to the ski area parking lot where others will be
responsible for final transport and removal from ski area property.
Concrete foundations shall be blasted and/or jack hammered to “below grade”
appearance using a rock breaker implement mounted on a spyder hoe and the use of
two stroke powered jackhammers/drills.

Prices do not include removal of electrical infrastructure and/or transformers, buried and
overhead power lines associated with the chairlifts.




Double fixed grip beginner chairlift / Riblet                               $ 85,100.00

Triple fixed grip chairlift / Riblet                                        $113,500.00

Double fixed grip chairlift / Yan                                           $135,200.00

Double fixed grip chairlift / Riblet                                        $147,100.00

Helicopter cost / tower removal                                             $183,500.00

Foundation removal and blasting fees                                        $257,050.00

Total estimated cost                                                        $921,450.00




MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC.
OCTOBER 26, 2006
                              6




MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC.
OCTOBER 26, 2006
                                                     Mt Ashland
                                                   Ski Lift Appraisal

By: John Ellis P.E. – Aerial Engineering Inc.
Inspection date: 11-8-06
For: Winterstar Valuations Inc.

Background:

Mt Ashland currently has 4 chair lifts and a wire rope tow. The lifts are
comprised of the following.
   • “Arial” - 1964 Riblet Double
   • “Windsor” - 1974 Yan Double
   • “Comer” - 1987 Riblet Triple
   • “Sonnet” – 1987 Riblet Triple
   • “Pinocchio” - 2001 Bruckschlogl GMBH tow

On November 8, 2006 I reviewed the maintenance records and rode Sonnet,
Comer and Windsor with Woody of Mt Ashland. We drove to the bottom and top
of Arial. The handle tow was still in pieces and was in the process of being set
up. All the lifts appear to be in a good state of repair. The lifts have been
upgraded and maintained systematically as will be shown in the specifics for
each lift. This report contains the following information.
    • Current pictures for each lift.
    • A list of upgrades and enhancement to each lift.
    • Values of each lift sitting in the parking lot ready to load.
    • The original spec sheets for each lift.



Please note the dates on the pictures are not correct.




F:\Projects\Ski Ashland\Mt Ashland Lift Appraisal.doc        1/7
11/21/2006
                                                   Mt Ashland Ski Area
                                                      Sonnet Chair lift




                                                                            Top Ilder Terminal
                Tension -Drive Terminal




                            Lift Line




                                                                          Drive Components




F:\Projects\Ski Ashland\Mt Ashland Lift Appraisal.doc       2/7
11/21/2006
                                                   Mt Ashland Ski Area
                                                     Comer Chair lift




                                                                           Top Idler Terminal
                 Bottom-Tension Drive




                                 Lift Line                               Drive Components


F:\Projects\Ski Ashland\Mt Ashland Lift Appraisal.doc      3/7
11/21/2006
                                                  Mt. Ashland Ski Area
                                                       Windsor Lift




                                                                         Top Idler Terminal
                   Bottom-Tension Drive




                                                                            Drive Components




                             Lift Line


F:\Projects\Ski Ashland\Mt Ashland Lift Appraisal.doc      4/7
11/21/2006
                                                   Mt Ashland Ski Area
                                                        Arial Lift




                                                                         Top Tension Terminal
               Bottom-Drive Terminal




                                                                         Drive Components

                            Lift Line



F:\Projects\Ski Ashland\Mt Ashland Lift Appraisal.doc      5/7
11/21/2006
                                                   Mt Ashland Ski Area
                                                       Lift Specifics

Sonnet Lift - 1987 Riblet Triple
   • New haul rope installed in 1989
   • The tension-drive rear column is filled with concrete preventing it from
     being reused if the lift was relocated. This decreases the lift value as a
     new column would have to be fabricated if the lift was put up somewhere
     else.
   • Lift averages about 1200 hours per year

Comer Lift - 1987 Riblet Triple
  • New haul rope installed in 1989
  • Motor rebuilt in 2006
  • APU engine rebuilt in 2001
  • The tension-drive rear column is filled with concrete preventing it from
     being reused if the lift was relocated. This decreases the lift value as a
     new column would have to be fabricated if the lift was put up somewhere
     else.
  • Lift averages 1200 hrs per year

Windsor Lift – 1974 Yan Double
   • New Comline in 2006
   • Bottom Operator’s house upgrade in 2006
   • New Electric Drive 2002
   • Motor rebuild 2004
   • The columns for the terminals are filled with concrete preventing them
     from being reused if the lift was relocated. This decreases the lift value as
     new columns would have to be fabricated if the lift was put up somewhere
     else.
   • Since 1984 lift averages 1300 hrs per year

Arial Lift – 1964 Riblet Double
   • New haul rope in 1983
   • Towers have original line machinery with cable catcher up grade
   • New chairs and chair clips were installed in late 1990’s
   • The tension bullwheel have been upgraded with a stationary shaft.
   • A new service brake pump unit was installed in 2004
   • Lift averages 800-900 hrs per year

Rope Tow – 2001 Bruckschlogl GMBH
  • Nothing to report



F:\Projects\Ski Ashland\Mt Ashland Lift Appraisal.doc      6/7
11/21/2006
                                                Mt Ashland Ski Area
                                                   Lift Valuations

Arial Lift -        Lift sell Price around $10,000

   • Comparisons - 1972 Riblet double chair sold for around $25,000. in 2006
   • Comparisons – 1974 Riblet triple chair sold for around $35,000 in 2005
The draw backs for the Arial lift are the age, style of line machinery and style of
tower crossarms.

Windsor – Lift sell price around $25,000.00

The asking price for a 1978 Yan Triple in 2004 was $80,000. This lift was twice
the horsepower as Windsor and was a triple vs. a double. I have no record that
this lift actually sold.

Sonnet – Lift sell price around $60,000

     •    A small 1969 Hall 1402 double chair in Colorado sold for $25,000 in 2006.
          It is similar in size to Sonnet.

Comer – Lift sell price around $50,000

     •    The draw back for Comer is the style of drive enclosure.

Pinocchio Rope Tow – sell price around $7,000.00. This price is based on
conversations with the manufacture regarding pricing of used tows.


If you have any questions please let me know. Again these sell prices are
based on the lift sitting in the parking lot ready to load on a truck.


                                                                Respectfully yours,


                                                                John C Ellis P.E.
                                                                (Project Engineer)




F:\Projects\Ski Ashland\Mt Ashland Lift Appraisal.doc     7/7
11/21/2006
                                                                                                   16


                                         SECTION III

                     MT. ASHLAND LIQUIDATION VALUE APPRAISAL

                                 THE ROLLING STOCK
Inventory:

Mt. Ashland has the following mobile equipment. Mr. Ted Farwell MAI inspected all
vehicles on October 26, 2006.

                                MT. ASHLAND SKI AREA
                                 LIQUIDATION APPRAISAL
                                ROLLING STOCK INVENTORY

  Slope Grooming Equipment
      Manufacturer Year   Model          Hours    Attachments             Condition Rebuilt at
      Bombardier 2002    TW 275             5,360 12 way Quickblade       Excellent   5,360 hrs
                                                  Terrain Master Tiller
                                                  Tower Winch
      Bombardier      1994    400          13,700 12 Way Blade            Good        7,800 hrs
                                                  C- bar Flex Tiller
      Bombardier      2001   SR 275         6,870 12 way Quickblade                   5,500 hrs
                                                  Terrain Master Tiller   Good
     LMC              1983   3700-C      20,000+ 10 Way Blade             Good          twice
     LMC              1986   3700-C      20,000+ Anchor & Winch           Fair
  Heavy Equipment
     Kawaski          1986   Z-80-II      9,800    Bucket Loader          Good
     John Deere       1967    350          N/A     Long-Wide Track        Good          once
                                                   Crawler with
                                                   Backhoe and
                                                   Six way Blade
  Utility Vehicles
        Polaris       2003   Ranger       1,248     6x6                   Excellent
        Polaris       2006 Sportsman        40     4x4                    New
        Susuki        1983                 N/A     4x4                    Fair
        Dodge         2001 Ram-350        24,682   15 Pax - Van           Good      Transmission
        Dodge         1994 Ram-350        98,198   15 Pax - Van           Good
        Dodge         1979 Ram-350       247,462   Open - Van             Fair
        Dodge         1976 Power Wagon   131,210   Club Cab               Good


Pictures of each vehicle except 1 LMC 3700 and 1 van are included on the following
pages.




MT. ASHLAND PROPERTY                                                                               16
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC.
OCTOBER 26, 2006
                                                                    17




Slope Grooming Equipment:




1994 Bombardier 400                  2001 Bombardier SR 275




2002 Bombardier TW 275                     1986 LMC 3700 C

Heavy Equipment:




   1986 Kawasaki Loader Z-80-II   1976 JD Long-Wide Track Crawler



MT. ASHLAND PROPERTY                                                17
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC.
OCTOBER 26, 2006
                                                           18




Utility Vehicles:




2003 Polaris 6x6 Ranger       2006 Polaris 4x4 Sportsman




   1983 4x4 Susuki            1976 Dodge Power Wagon




1979 Ram Van – Open           1994 Ram Van – 15 Pax




MT. ASHLAND PROPERTY                                       18
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC.
OCTOBER 26, 2006
                                                                                                               19



Valuation: Slope Grooming Vehicles

There is an active market for used slope grooming vehicles The table below lists
seven recent sales as reported by resortboneyard.com. Hugh Knapp, an active dealer
in used ski area lifts, equipment and parts, sold most. Mr. Knapp confirmed these
prices.
                  Hours Price             Condition          Year     Equipment

                      9,000 $30,000       Very Clean     1996 Piston-Bully 280D
                      8,800 $20,000       Well Maint     1983 Piston-Bully PB-170D
                      7,613 $23,500       Excellent Cond 1994 Piston-Bully 260 Snowcat
                      4,600 $65,000                      2002 Bombardier BR-275
                      2,600 $45,000                      1998 Bombardier BR-180
                      1,941 $57,500       Very Good      2003 Bombardier BR-275
                      1,320 $107,000      Very Clean     2000 Bombardier BR2000

I have related hours to selling price, as shown on the chart below, and find that the
hours explain some 65% of the price variation. Basically, A clean zero hours, used
vehicle starts at $87,551 and, all other considerations being equal, each 1000 hours of
operation drops the used value by $7,422.


                                   SNOW GROOMING EQUIPMENT                              y = -7.4221x + 87751
                                                                                             R2 = 0.6541
           $120,000

           $100,000

            $80,000
   Price




            $60,000

            $40,000

            $20,000

                $0
                      0   1,000   2,000     3,000   4,000   5,000   6,000   7,000   8,000   9,000   10,000
                                                            Hours




MT. ASHLAND PROPERTY                                                                                           19
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC.
OCTOBER 26, 2006
                                                                                             20

                                                 Hours since Indicated
                                                 Rebuilding Value

                       1994 Bombardier 400             5,900       $43,961
                       2001 Bombardier SR 275          1,300       $78,102
                       2002 Bombardier TW 275            0         $87,751

            Mt. Ashland Property- Orderly Liquidation Value Appraisal
                           Slope Grooming Vehicles

 Year                             2002          1994           2001       1983      1986
 Mfg.                           Bombardier   Bombardier   Bombardier      LMC       LMC
 Model                          TW-275          400        SR-275        3700-C    3700-C
 Hours                           5,360        13,700        6,870        20,000+ 20,000+
 Condition                      Excellent      Good         Good          Source for parts
 Hours since rebuilt               0           5,900        1,370

 Nominal value                  $100,000       $40,000         $80,000
 Less: External Obsolescence     $35,000       $25,000         $40,000
 Liquidated Value                $65,000       $15,000         $40,000    $4,000    $8,000
 Estimate
 Source: Resort boneyard.com & Hugh Knapp


While this result seems logical, I have no information concerning the dates of these
sales and discussion with Mr. Hugh Knapp owner and principal of Knapp Associates,
dealers in used snow grooming equipment, reveals the impact of a current over supply
of Bombardier grooming machines due to Bombardier’s leasing program during the
nineties. The used market has been flooded with some 250-300 such vehicles, thus
depressing the prices received. Returned leased Bombardier snowcats are being sold
for $25,000 to $35,000. Mr. Knapp stated that realistically he would have to heavily
discount the above-indicated values to allow for the depressed market. This is logically
external obsolescence.

The 2002 rebuilt Bombardier TR 275 includes a state of the art tower winch and
should therefore be afforded an orderly liquidation value of $100,000. According to Mr.
Knapp the external obsolescence will bring it’s orderly liquidation value down to
$65,000.

In my judgment the 1994 Bombardier 400 should be further discounted due to its age
in spite of the fact that it has been rebuilt, which would logically mean $40,000.
According to Mr. Knapp the external obsolescence will bring it’s orderly liquidation
value down to $15,000.

The 2001 rebuilt Bombardier SR 275 should be afforded an orderly liquidation value of
$80,000. The external obsolescence will bring its orderly liquidation value down to
$40,000


MT. ASHLAND PROPERTY                                                                         20
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC.
OCTOBER 26, 2006
                                                                                                  21


 The two LMC 3700C models have primary value for spare parts as no new parts are
 available. Mr. Knapp quoted $4,000 for the 1983 model and $8,000 for the 1986
 model.

 Valuation: Utility Vehicles

 Utility used vehicle values are assembled and reported by N.A.D.A., the Kelly
 Bluebook, and other on-line operators. The following values were extracted from their
 web pages.

                   Mt. Ashland Property- Orderly Liquidation Value Appraisal
                                        Utility Vehicles

Vehicle             15 Pax Van 15 Pax Van Open Van   PU Truck   ATV 4x4 ATV 6x6 ATV 4x4
Year                   2001       1994       1979      1976       2006    2003    N/A
Mfg.                  Dodge      Dodge      Dodge     Dodge      Polaris Polaris Susuki
Model                  3500       3500       3500  Power Wagon Sportsman Ranger
Mileage               24,682     98,198    247,462   131,210
Hours                                                            1,248     40     N/A
Avg Trade-in
 Excellent              $9,450     $1,850       $500     No Quote
 Good                   $8,830     $1,575       $425      Vehicle         $5,200    $5,715
 Fair                   $7,765     $1,095       $300      too old
        or
Avg. Retail           $13,180      $4,060      $1,430                     $5,910    $4,530   $2,000
Source: NADA Guides & Kelly Bluebook
Liquidated Value       $11,000      $3,000       $500           $300      $5,900    $4,500    $1,500
Estimate




 1979 DODGE SPORTSMAN B300 15 Passenger Van
 VIN# B36JE9K372519 Mileage: 247,462

 1979 models are not quoted any more unless they are restored. The latest quote is for
 1986-year vehicles.

 The other two vans are in excellent condition and therefore I estimate would bring
 something between average trade-in and retail value
 1994 DODGE LE MAXIVAN B350 15 Passenger Van
 VIN# 2B5WB3520RK162731 Mileage: 98,198
 Front/Rear Air Conditioning, Cruise Control


 2001 DODGE RAM WAGON 3500 15Passenger MAXIVAN
 VIN# 2B5WB35Z61K549482 Mileage: 24,682
 V8; Automatic; RWD; Front/Rear Air Conditioning; Power Steering, Windows, Locks; Tilt Wheel; Cruise
 Control; AM/FM Stereo; Cassette; Dual Front Airbags; ABS; Privacy Glass; Alloy Wheels

 MT. ASHLAND PROPERTY                                                                             21
 LIQUIDATION VALUE APPRAISAL
 WINTERSTAR VALUATIONS, INC.
 OCTOBER 26, 2006
                                                                                     22



The Polaris ATV’s were found on the N.A.D.A. web site and confirmed by a local
dealer. The orderly liquidation value estimated is based on the age and condition. The
2006 Sportsman cost $6,200 new and has only 40 hours of operation.

Valuation: Heavy Equipment:

The two pieces of heavy equipment are very unique. Their value is due to their critical
need at unknown times. Most ski areas have several such pieces of equipment,
generally purchased used as the demand placed upon them is miniscule when
compared to their primary role in daily construction. While as used, and obsolete
equipment they have value in their role, but very little value on the used equipment
market. I could find no quotes on the Internet and in checking with a local dealer found
that both pieces are no longer in production. Mr. Jeremy Thomas of H & E Equipment
Services estimated $25,000 for the Loader and $4,000 for the Crawler with a $2,000
add-on for the backhoe attachment.

                                    Heavy Equipment

                      Vehicle            Loader         Crawler
                      Year                 1986          1976
                      Mfg.               Kawaski      John Deere
                      Model               z-80zII   Long-Wide Track
                      Hours                9,800          N/A
                      Vehicle                           $4,000
                      Attachments                       $2,000
                      Liquidated Value   $25,000        $6,000




MT. ASHLAND PROPERTY                                                                 22
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC.
OCTOBER 26, 2006
                                                                                      23


                                         SECTION IV

                   MT. ASHLAND LIQUIDATION VALUE APPRAISAL

                     OPERATING AND MAINTENANCE EQUIPMENT
Inventory:

Mt. Ashland has a wealth of additional required operational and maintenance
equipment. Mr. Dan Pahl CEA inventoried and inspected all 350 items listed on October
26, 2006.

Valuation:

Pahl Industrial, Inc. filed the following report.

PURPOSE, SCOPE
& OBJECTIVE

       Purpose
       The purpose of the appraisal report is to appraise the assets of Mount Ashland
       Ski Resort Ashland, Oregon. This is a complete summary appraisal report
       intended for use by Winterstar Valuation, Inc. and the City of Ashland Oregon.
       Possession of this report by others other than the named parties does not make
       them an intended user.

       SCOPE
       The scope of this appraisal was a physical inspection of the assets located at
       Mount Ashland Oregon, and an opinion of values of selected line items totaling
       $250,000 in Forced Liquidation Value and $347,000 in Orderly Liquidation Value.

       Objective
       The objective of the report is to submit an opinion of value showing the Forced
       Liquidation Value and Orderly Liquidation Value of the selected assets. The
       effective date of the appraisal is October 26, 2006.

       DEFINITIONS

       Forced Liquidation Value (Auction)
       A Professional opinion of the estimated most probable price expressed in terms
       of currency, which would typically be realized at a properly advertised and
       conducted public auction sale, held under forced sale conditions and under
       present day economic trends, as of the effective date of the appraisal report.
       Further, the ability of the asset group to draw sufficient prospective buyers to
       insure competitive offers is considered. All assets are to be sold on a piecemeal
       basis ‘as is’ with purchasers responsible for removal of assets at their own risk
       and expense. Any deletions or additions to the total assets appraised could
MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC. & PAHL INDUSTRIAL, INC.
OCTOBER 26, 2006
                                                                                         24


      change the psychological and/or monetary appeal necessary to gain the value
      indicated

        Orderly Liquidation Value
      A professional opinion of the estimated most probable price expressed in terms
      of currency which the subject equipment could typically realize at a privately
      negotiated sale, properly advertised and professionally managed, by a seller
      obligated to sell over an extended period of time, usually within six to twelve
      months, as of the effective date of the appraisal report. Further, the ability of the
      asset group to draw sufficient prospective buyers to insure competitive offers is
      considered. All assets are to be sold on a piecemeal basis ‘as is’ with purchasers
      responsible for removal of assets at their own risk and expense. Any deletions or
      additions to the total assets appraised could change the psychological and/or
      monetary appeal necessary to gain the value indicated.
      .
        Economic Obsolescence
      The loss in value of a property resulting from factors external to the property.

      Functional Obsolescence
      A form of depreciation in which the loss in value is due to factors inherent to the
      property itself and changes in designs, materials, or process resulting in
      inadequacy over capacity, excess construction lack of functional utility, excess
      operating costs, etc.

      Physical Obsolescence
      The loss of value resulting from wear and tear of an asset in operation and
      exposure to various elements.

METHODS & PROCEDURES

      METHODS
      The appraisal method used in determining value was the market data approach.
      The income approach was not used in the performance of this appraisal.

      The market data approach to value uses comparable sales, dealer listings and
      interviews with several dealers specializing in the sale of this type of equipment.
      Adjustments are made to the comparable sales to reflect the age, condition and
      other pertinent factors of the subject equipment. The market approach has the
      advantage of taking all forms of depreciation into account, (economic, functional
      and technological).

       PROCEDURES
      Dan Pahl from Pahl Industrial Inc. conducted a physical inspection of the Mount
      Ashland Oregon assets on October 26, 2006.


MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC. & PAHL INDUSTRIAL, INC.
OCTOBER 26, 2006
                                                                                      25


      The appraiser then checked the Pahl Industrial Inc. proprietary comparable sales
      database, and interviewed certain original manufacturers and used equipment
      dealers to verify findings. Interviews with certain dealers supplied the appraiser
      with information on replacement costs for the latest technology and the number
      of pieces of equipment that have been sold. The dealers indicated the current
      market conditions and selling prices on the used market.

COMMENTS

     EQUIPMENT SPECIFIC COMMENTS

     Some of the Machinery & Equipment was operating the day of the physical
     inspection and company personnel confirmed all Machinery & equipment is in
     operating condition. Maintenance personnel confirmed regular maintenance
     procedures are followed. Rental and Retail inventories where consistent with what
     is normally provided at Ski Resorts. Staff Clothing was adequate and in good
     condition.

     The equipment is of recognized manufacture and common to the Ski Resort
     Restaurant and Hospitality Industries.




MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC. & PAHL INDUSTRIAL, INC.
OCTOBER 26, 2006
                                                                                     26



       Mount Ashland Ski Resort Equipment & Inventory Listing

Item     Serial No.     Qty                 Description                    FLV     OLV
 No.

                                       Main Lodge Top Floor

 1                      27 square tables                                    125     135

 2                      20 round tables                                     100     120

 3                     137 metal chairs                                     137     137

 4                      1 Knotty Pine display case                           40      50

 5                      1 plywood display case                               10      15

 6                      2 sofa's                                             50      60

 7                      1 coffee table                                        4       5

 8                      1 wood bench                                          3       5

 9                      1 wood table                                          2       3

 10                     1 wood burning fireplace insert                      75      90

 11                    140 pairs of used Snow Board boots                  1,400   1,400

 12                           assorted boots & binding repair parts in 4    100     120
                              plastic containers

 13                     4 fold up tables                                     80     100

 14                     1 sled                                                5       5

 15                     4 plastic discs                                      10      12

 16                     1 office c/w desk chair, computer, file              40      50
                          cabinet, TV, calculator

 17                     1 Motorola HT 600 walkie talkie c/w                  30      40
                          charger

 18                     1 Audio amplifier c/w 2 speakers                     20      25


MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC. & PAHL INDUSTRIAL, INC.
OCTOBER 26, 2006
                                                                             27


 19                     3 jackets                                       20    20

 20                        miscellaneous office supplies & books        40    45

 21                     1 Volunteers & donators wall plaque             40    45

 22                     1 office c/w desk, credenza, chair              60    70
                          microwave & shelves

 23                     1 Panasonic video camera                        30    35

 24                     5 voice activated head sets                     75   100

 25                        asssorted racing bibs                        40    45

                                          Third Floor

 26                        mens washroom - 2 urinals, 1 toilet, 2       20    25
                           sinks

 27                     60 lockers                                     300   420

 28                     2 drinking fountains                            15    20

 29                        womens washroom 2 sinks, 2 toilets           15    20

 30                     6 large grey lockers                           60     72

 31                     1 wash bucket                                    4     5

 32                     3 microwaves                                    30    40

 33                     2 metal cupboards                               80   100

 34                     2 200 amp breaker panels                        80   100

 35                     1 stepladder                                    35    40

 36                     1 office c/w desk, chair, computer, printer,    80   100
                          table & office supplies

                                            Kitchen

 37                     1 Jet Tec F16 washer                            40    50

 38                     1 Stainless Steel triple sink                   60    70

MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC. & PAHL INDUSTRIAL, INC.
OCTOBER 26, 2006
                                                                        28




 39                     2 4 door wood coolers - 1 c/w beer taps   150   200

 40                     2 computer cash registers                 175   225

 41                        assorted glasses, pitchers, etc.       250   300

 42                     1 credit card machine                     200   225

 43                     1 LaCrosse Stainless Steel double sink    100   120

 44                     1 Cappuccino Machine & coffee maker        40    45

 45                    105 wood chairs                            210   315

 46                     10 bar stools                              50    60

 47                     1 Panasonic TV & Philllips VCR player     135   160

 48                     2 snow boards, 3 sets skis & Sleigh        50    60

 49                     30 square tables                          210   300

 50                     1 bar                                     100   120

 51                        pictures & mirrors on wall              75    85

 52                     9 picnic tables                           270   360

 53                     1 propane heater                          200   250

 54                     1 Mitsubishi projection TV                400   500

 55                     2 t-bar lifts                              50    55

 56                     2 vacuum cleaners                          40    50

 57                     1 stereo system c/w speakers              30     40

 58                     1 computer c/w flat screen                 70    80

 59                     3 high chairs                              10    12

 60                     1 Panasonic TV                             90   100

 61                     4 Lawrence vacuum cups                    100   120
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LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC. & PAHL INDUSTRIAL, INC.
OCTOBER 26, 2006
                                                                             29




 62                        assorted pictures & plaques                  70    80

 63                     10 plastic trash cans                           30    40

 64                     1 40' aluminum extension ladder                150   175

 65                     1 20' aluminum extension ladder                700    80

 66                        assorted wood counters                      100   120

 67                     1 soda counter c/w valves & controls           250   300

 68                     2 microwaves                                    20    20

 69                     1 hot dog warmer                                15    20

 70                     1 Ortega nacho machine                          25    30

 71                     1 Fresh & Fast model HFD-3A pizza               70    80
                          humidity cabinet

 72                     1 True 6' refrigerated display cooler          200   250

                                            Second Floor

 73                     1 office c/w 2 safes, 2 chairs, 2 computers,   225   250
                          calculator & printer

 74                     1 Magner 35 bill counter                        40    45

 75                        assorted office supplies in cupboard        200   225

 76                     4 ticket printers                              200   225

 77                        assorted blue back racks                     20    25

 78                     2 computer systems c/w cash drawers            250   300

 79                     3 chairs                                        20    25

 80                     1 office c/w desk, 3 chairs & file cabinet     125   140

 81                     1 office c/w Gateway laptop computer,          400   500
                          desk, 2 chairs & supboard


MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC. & PAHL INDUSTRIAL, INC.
OCTOBER 26, 2006
                                                                               30


 82                     1 time clock & card trays                     100     120

 83                        assorted kitchen utensils pots, pans,      400     500
                           warming trays, etc.

 84                     6 sections shelving                           240     300

 85                     1 Leer 6' X 6' X 5' walk in cooler           1,000   1,200

 86                     1 Howard 2 door cooler 5' X 7' X 3'           500     600

 87                     1 folding bakery cart                         100     120

 88                     1 Imperial deep fryer                         100     120

 89                     1 oxy acetylene regulator                      20      25

 90                     1 20' skate wheel conveyor                     50      60

 91                     1 stretcher                                    20      25

 92                     2 wood walk in coolers 1 free standing        175     200

 93                     1 office c/w 4 drawer letter file cabinet,    300     350
                          cupboard, microwave, 2 kenwood amps,
                          fax, printer, coffee table, hole punch


 94                     1 Agilent Heartstream FR2 defibrillator       250     300

 95                     1 Maxon base station unit                     250     300

 96                     1 laminator                                    40      50

                                              Kitchen

 97                     1 Scotsman LM3 icemaker                       600     800

 98                     1 Frigidaire Fridge                            60      70

 99                     1 Lang convection oven                         50      55

100                     1 microwave on cart                            60      70

101                     1 Star warmer                                  20      25

102                     1 Thermatic 4 burner gas stove & oven         600     700

MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC. & PAHL INDUSTRIAL, INC.
OCTOBER 26, 2006
                                                                              31




103                     1 2' X 4' grill                                60     70

104                     1 Montague Grizzly grill                      100    125

105                     2 Superior & Dean deep fat fryers             400    500

106                     1 Lincoln impinger toaster                    400    500

107                     1 Hatco heated holding display cabinet         40     60

108                     1 Stainless Steel table                        50     60

109                     2 Continental 3' prep table                   700    800

110                     1 MPW Wyott warming tray in stainless          60     70
                          steel stand

111                     1 Aerohot warming tray                        150    200

112                     1 shelving unit & wash bucket                  40     50

113                     1 Stainless Steel sink                         40     50

114                     1 Stainless Steel table 30" X 7' c/w can      100    120
                          opener

115                     1 set Nemco heat lamps                         15     20

116                     1 double Stainless Steel sink c/w runoff       75     85

117                     1 Auto Chlor dishwasher c/w Stainless         300    350
                          Steel prep sink with runoff

118                     1 24" X 72" wood prep table                    65     75

119                        assorted pots, pans, sieves, cullenders,   200    250
                           etc. in kitchen

120                     1 Ansul fire protection hood c/w charged      500   1,000
                          fire extinguisher

121                     24 square tables                              120    240

122                    130 metal chairs                               130    195


MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC. & PAHL INDUSTRIAL, INC.
OCTOBER 26, 2006
                                                                                  32


123                         assorted pictures, display cases, etc. on    250     300
                            second floor

124                     2 shelving units                                  60      70

125                     1 Heinz dispenser & napkin dispenser               8      10

126                     1 Warming Hut boot & glove dryer                  50      60

127                     1 fridge & hand truck                             75      85

128                     2 wood L shaped counters c/w 3 computer          500     600
                          cash registers

129                     1 Powerflite carpet cleaner                      100     120

130                     2 wood 2 door lateral file cabinet               150     200

131                     1 4' prep table                                   70      80

132                     1 6' & 8' wood display cases                     350     400

133                     1 credit card machine                            200     250

134                     1 Wittco warming table                           350     400

135                     1 Powermate air compressor                       150     170

136                     1 fiberglass aluminum stepladder                  50      60

137                     3 soda pop cupboards c/w valves, etc.            300     400

138                     2 fire hoses on 2nd & 3rd floors                 200     250

139                     2 200 amp breaker boxes                           75      85

                                             Basement

140                    102 triple lift chair seat pads                  1,530   2,040

141                    210 double lift chair seat pads                  2,100   3,150

142                     48 tower pads                                   2,400   2,880

143                     4 radio base stations                           1,200   1,600


MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC. & PAHL INDUSTRIAL, INC.
OCTOBER 26, 2006
                                                                                33


144                     25 walkie talkies Kenwood, Motorola, etc      750     1,000

145                     72 wood lockers                                72      108

146                        assorted rubber matting                    300      400

147                     1 Ariens 1332 snowblower                      300      400

148                     1 Honda snowblower                            250      300

149                     1 fiberglass stepladder                        35       40

150                     1 118 gallon hot water heater                 200      300

151                        rope, shelves & sinks                       40       50

152                     4 urinals, 4 toilets, 4 sinks                  50       60

153                    148 wood lockers                               148      220

154                     5 toilets, 4 sinks & baby change station       40       50

155                        storage area c/w 10 sets of skis and       300      400
                           bindings, 2 snowboards, cupboard, shelf
                           & promotional items


156                     1 compressor on vertical tank                 275      300

                             Maintenance/Storage/Furnace Room

157                     1 2006 Avaya IP400 phone system c/w          8,000   10,000
                          voice mail & 46 instruments,

158                     1 credit card machine                         200      250

159                     1 Meridian phone system                       300      400

160                     1 Westinghouse 800 amp main electrical        400      500
                          panel

161                     1 Forced air furnace                          100      100

162                     7 sections shelving                           125      140

163                     1 1 horsepower compressor on tank             250      300


MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC. & PAHL INDUSTRIAL, INC.
OCTOBER 26, 2006
                                                                                   34


164                        assorted power & hand tools in                  800   1,000
                           maintenance area

165                        ski school room c/w 4 cordless drills,          300    325
                           desk, cordless skilsaw & printer

166                        ski school & events office c/w computer,        350    400
                           desk, chair, printer, file cabinet, blueprint
                           file & TV


167                        Woody & Adas office c/w desk, chair,            450    500
                           laptop, label machine, heater, 2 - file
                           cabinets & printer


168                        Kids Club room c/w fridge, sink, locker,        200    225
                           vacuum TV & VCR

169                     50 Helly Hansen fleece vests                       250    300

170                     4 Dermizax coats                                   320    360

171                     3 vacuums & floor polisher                         150    170

172                     1 Craftsman table saw                              175    200

173                     64 wood lockers                                     64     64

174                     1 small table saw                                   50     60

                                      Ski Rental Building

175                     2 Snowboard & ski racks                            250    300

176                     3 boot drying racks                                500    600

177                     1 Craftsman chop saw                               150    175

178                     7 wood work stations                                35     40

179                        assorted rubber floor mats                      300    400

180                     5 sections shelving                                250    300

181                     1 rolling staircase                                175    200

182                     1 aluminum stepladder                               25     30

MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC. & PAHL INDUSTRIAL, INC.
OCTOBER 26, 2006
                                                                                    35




183                     1 200 amp electrical box                            40      50

184                     1 vacuum, wash bucket, mops, shovels,              125     150
                          etc.

185                        lunchroom c/w fridge, microwave, tables,        175     200
                           chairs, etc.

186                     1 office c/w desk, chair, file cabinet, laptop,    700     800
                          desktop, printer & chair

187                     1 office c/w desk, chair & copier                   60      70

188                     1 new furnace                                      150     200

189                     2 rolls fence netting                               70      80

190                     2 urinals, sink & toilet                            15      15

191                     2 toilets 2 sinks                                   15      15

192                     1 10' X 40' ski repair trailer                    4,000   5,000

193                     1 Grindrite ST600 grinder                         1,500   2,000

194                     1 Laser Straight ski grinder                       100     125

195                     1 Grindrite edger                                  250     300

196                     1 Grindrite ST490 waxer polisher                   800    1,000

197                     1 filing bench                                     125     150

198                        assorted power & hand tools                     400     450

199                     1 Tokomat waxer                                     75     100

200                     2 40' ship containers                             3,000   4,000

201                     1 Convault 2,000 gallon fuel tank                 1,500   2,000

                                                Shop

202                     1 42' X 60' metal frame metal clad                1,000   1,500
                          maintenance shop building

MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC. & PAHL INDUSTRIAL, INC.
OCTOBER 26, 2006
                                                                             36




203                     1 used oil tank                              100    125

204                     1 parts washer                               200    250

205                     1 eye wash station                            50     60

206                     1 oil cart & 2 pumps                          70     80

207                     1 Craftsman tool box & tools                 300    350

208                        assorted power & hand tools on wall       800   1,000

209                     3 work benches & vise                        250    300

210                     1 jib crane c/w hoist                        200    250

211                     1 model 6006 battery charger                  60     70

212                     1 Milwaukee grinder                           40     50

213                     1 Duracraft pedestal drill press             200    225

214                     1 Parker Phastkrimp hose crimp machine       800   1,000

215                     1 cut off saw                                 60     70

216                     1 Darex drill bit grinder                    350    400

217                     1 portapower                                 200    225

218                     1 non destructive magnetic particle tester   200    225

219                     1 bench & vise                                70     80

220                     1 Enerpac PEM2021 hydraulic pump             400    500

221                     1 30 ton fully adjustable shop press         300    350

222                     1 oxy acetylene set on cart c/w bottles      225    250

223                     1 pressure washer                            250    300

224                     1 gas barbecue                                20     25

225                     1 creeper, hand truck, masking paper rack     60     70
MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC. & PAHL INDUSTRIAL, INC.
OCTOBER 26, 2006
                                                                                   37




226                     1 floor jack                                      125     150

227                     8 adjustable floor stands                         160     180

228                     1 Miller Dialarc 250 welder                       350     450

229                     1 Ingersoll Rand 5 horsepower model 30T           600     700
                          compressor on tank

230                     1 Johnson model J bandsaw                         250     300

231                     1 Thermal Dynamics Cutmaster 38 plasma            400     500
                          cutter

232                     1 oxy acetylene cart c/w bottles                  100     125

233                     1 Lincoln SP100 welder                            500     600

234                     1 Raetone flammable cabinet                       150     175

235                     1 dual light stand                                 60      70

236                        assorted steel in rack                         250     300

237                     15 tires                                          300     350

238                        stores inventory including Bombardier         2,000   3,000
                           parts

239                     3 gas weed eaters                                 300     360

240                        shop office c/w desk, chair, laptop, chair,    350     400
                           sofa, file cabinet & fridge

241                     2 Stihl chainsaws                                 500     600

242                     1 Kato 60 kilowatt gen set p/w Detroit 353       3,500   4,000
                          engine 208/240 volt, 2049 hours

243                        assorted pilons, signs, etc.                   250     300

244                     1 fuel tank & pump                                175     200

245                     1 8' X 16' trailer c/w file cabinet, desk,       2,000   2,500
                          chair, laptop & chair

MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC. & PAHL INDUSTRIAL, INC.
OCTOBER 26, 2006
                                                                                 38




246                     1 Knaack model 4824 tool box                    150     200

247                     14 lift evacuation kits                        1,500   2,000

                                              Lift shop

248                     1 office c/w 2 desks, 3 chairs, 2               200     225
                          microwaves, fridge, tiaster, TV, etc.

249                     1 transformer & 200 amp main panel              150     175

250                         assorted parts for lift                    1,000   1,200

251                     1 Craftsman tool box and tools                  400     500

252                         assorted snow maintenance tools             600     700
                            including rakes, shovels, fencing, etc.

253                     1 Scott welder generator                        300     350

254                     1 Sears battery charger                          25      30

255                     1 Honda HP3500 generator                        200     250

256                     1 Lincoln 225 amp welder                        200     250

257                     1 Oxy Axetylene set c/w bottles                 200     250

258                     1 vacuum                                         20      25

259                     1 bench & vice                                   40      50

260                         assorted power & hand tools                 700     800

261                     1 bench grinder                                  65      75

262                     1 6 ton chain hoist                             125     150

263                     1 Tirfor comalong                                40      50

264                     2 comalongs                                     150    1,785

265                         assorted chain slings, wire rope slings,    400     500
                            pulleys, etc.


MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC. & PAHL INDUSTRIAL, INC.
OCTOBER 26, 2006
                                                                                 39


266                     1 stereo system                                  20      25

267                     1 hydraulic lift cable detensioner             1,500   3,000

268                        assorted tires & sheaves for Riblet chair   3,000   3,500
                           lifts plus assorted Yan Sheaves

269                     1 Kamag 60 KW generator p/w Perkins            4,000   5,000
                          diesel 240/480 volt - 926 hours

270                     2 spare tower lights                            100     120

271                        assorted light fixtures                      100     120

272                        elctrical switchgear                         200     225

273                        assorted fasteners                           200     250

274                        assorted wire rope, and parts for lifts     2,000   2,500

275                     1 Yan grip tester                               350     400

276                        assorted climbing harnesses                  400     500

277                        assorted snow fencing in start gate          400     500

278                     1 Aluminum frame start gate                     500     600

279                     1 Aluminum picnic table                         100     125

280                     4 ladders                                       250     300

                                Waste Water Treatment Plant

281                     1 YSI 550DO probe                               500     600

282                     1 Oakton stable temperature oven                350     400

283                     1 model 13B microscope                          250     300

284                     1 Hach DRB 200 c/w Hach DR 890                 1,000   1,200
                          colorimeter

285                     1 Parmer Ph meter                                70      80

286                     1 Ohaus scale                                   700     800

MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC. & PAHL INDUSTRIAL, INC.
OCTOBER 26, 2006
                                                                                    40




287                     1 Sequential Batch reactor Waste Water          20,000   40,000
                          Treatment plant c/w Fluidyne controls
                          and instruments


288                     1 GE 75 KW generator p/w 471 Detroit             5,000    7,000
                          diesel - 97.5 hours

289        99128        1 Hitemetaloy Snow Turbo Snow Park Half         15,000   18,000
                          Pipe Grinder

290                     6 racks - 3 snowboard, 3 ski                     1,000    1,200
308                     1 Power Systems 275 KW generator c/w 6           6,000    8,000
                          cylinder Cummins 120/208 volt - 475
                          hours


309                     8 tires                                           200      250

310                     1 Convault 4,000 gallon fuel cell                1,500    2,000

                               Miscellaneous On Site Items and
                                  Retail & Rental Inventory



311                         approximately 75,000 FBM of timbers in      10,000   15,000
                            main lodge

312                         Electrical wiring throughout the facility    3,000    5,000

313                     12 12" X 8" X 60' light poles and 68 Genlyte     5,000    6,000
                           lights & 10 new style Rudd lights

314                         Rental Snow Board Binding inventory -        6,000    9,000
                            $18,418 cost

315                         Rental Snow Board Inventory - $34,654       10,000   15,000
                            cost

316                         Rental Snow Board Binding Inventory -        7,000   10,000
                            $24,000 cost

317                         Rental Helmet Inventory - $3,500 cost        1,000    1,500



318                         Rental Ski & Bindings Inventory -           20,000   28,000
                            $52,463 cost


MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC. & PAHL INDUSTRIAL, INC.
OCTOBER 26, 2006
                                                                                      41


319                        Rental Ski Boot Inventory - $36,133 cost       7,000    10,000



320                        Rental Pole Inventory - $3,063 cost            1,000     1,500

321                        Used Coats Spyder & Helly Hansen - 224         8,960    13,440
                           total


322                        Used Pants - 51 pair                            750      1,250

323                        Used Fleece vests - 227 total                  2,270     3,405

324                        New Retail inventory of eyewear, gloves,       7,000    10,000
                           goggles, hats, masks, helmets,
                           outerwear, shirts, sunglasses, etc. -
                           $14,581 cost

                                          On site Total                 236,807   330,868

                                        Ashland Office

291                        Reception area c/w reception desk, 5            900      1,100
                           chairs, computer, 2 printers, radio,
                           charge card machine, pictures, easel,
                           etc.


292                     2 boxes of trade show displays                     500       600

293                        Utility office c/w desk, chair, camera,         800      1,000
                           laptop, desktop, printer

294                     1 Fargo DTC 510 Season pass printer               1,300     1,600




295                        Human Resource office c/w desk, 3               450       600
                           chairs, 2 file cabinets, bookcase, printer

296                        Storage room, shelving, vacuum, etc.            150       200



297                        miscellaneous office supplies                   400       500

298                        miscellaneous xmas supplies                     150       200



299                     1 Fridge                                            40        50

MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC. & PAHL INDUSTRIAL, INC.
OCTOBER 26, 2006
                                                                                                  42




300                        Development Directors office c/w 2                1,400          1,800
                           laptops, desktop, servedr, printer, stereo,
                           2 chairs, desk, file cabinet

301                     2 paper shredders                                          80         100

302                        open office area c/w fax, cupboard,               1,200          1,500
                           postage machine, printer, desk, 2 tables,
                           etc.

303                     1 Canon NP6030 photocopier                             750          1,000




304                        Rick Saul office c/w desk, 2 chairs,              1,300          1,600
                           printer, 2 file cabinets, safe, laptop

305                        conference room c/w 2 tables, computer,           1,200          1,500
                           printer, 4 file cabinets, whiteboard, 11
                           chairs, TV,


306                        Paulines office c/w desk, 3 chairs,                 600            750
                           credenza, file cabinet, printer, computer

307                        Mike & Mica's office c/w 2 desks, 4               1,700          2,200
                           chairs, printer, laptop, desktop,
                           bookcase, file cabinet, projector for
                           Power Point presentations


                                   Grand Total                           249,727        347,168




MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC. & PAHL INDUSTRIAL, INC.
OCTOBER 26, 2006
                                                                                     43


ESTIMATED BUILDING REMOVAL COSTS:

We asked Western States Environmental Services Inc. to provide a proposal to remove
all of the building structures at the Mt. Ashland Ski Area. Their proposal was faxed on
January 3, 2007.




MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC. & PAHL INDUSTRIAL, INC.
OCTOBER 26, 2006
                                                      44




MT ASHLANDPROPERTY
LIQUIDATION VALUE APPRAISAL
WINTERSTAR VALUATIONS, INC. & PAHL INDUSTRIAL, INC.
OCTOBER 26, 2006
PAHL INDUSTRIAL, INC.                              WINTERSTAR VALUATIONS, INC.
DAN PAHL CEA                                       TED FARWELL MAI



                             STATEMENT OF CONTINGENT
                               & LIMITING CONDITIONS

     This appraisal is based on a physical inspection of the on site assets listed and
     information supplied by Mount Ashland Ski Resort personnel, which Winterstar
     Valuations and Pahl Industrial deemed to be reliable and accurate. No warranty
     is or will be given as to the accuracy of the information provided by others.

     No research regarding ownership and/or the existence of any actual
     encumbrances or liens was undertaken, nor was Winterstar Valuations, Inc. or
     Pahl Industrial Inc. requested to perform such work.

     The purpose of the appraisal report is to assist the City of Ashland in determining
     the value of the equipment.

     This equipment is valued under the premises that it was maintained to industry
     standards and operating within manufacturer’s specifications at the effective date
     of the appraisal. There was no consideration given for the effect any
     environmental hazards may have on the value of the equipment.

     Market conditions do change regarding this type of equipment. Winterstar
     Valuations, and/or Pahl Industrial Inc. accepts no responsibility for changes in the
     market conditions, and no obligation is assumed to revise the Appraisal to reflect
     conditions, which occur subsequent to the effective date of this Appraisal. Any
     such change could render the appraisal and its conclusions invalid.

     It is understood that this appraisal will be a matter of public record for use by the
     City of Ashland Oregon.

     No right to testimony by Winterstar Valuations, Inc. and/or Pahl Industrial Inc.
     concerning this report is granted unless previous arrangements have been made.

     LIMITATION TO LIABILITY
     In all events and circumstances, Winterstar Valuations, Inc. and Pahl Industrial
     Inc. maximum liability for any and all damages of any type or nature claimed by
     any person in connection with this engagement of Winterstar Valuations, Inc. and
     Pahl Industrial Inc. or the report shall be the fee actually paid to and received by
     Winterstar Valuations, Inc. and Pahl Industrial Inc. under this engagement letter.
                                                                                      1

                                                            511 West 22nd Avenue
                                                           Post Falls, ID 83854
                                                           (208) 457-1148
                                                           (208) 699-3817 Cell
                                                           (866) 233-1947 Fax
                                                           www.winterstar.us

               PROFESSIONAL QUALIFICATIONS
                            OF
                 TED A. FARWELL, MAI - MBA

Ted Farwell MAI has prepared over 125 ski resort appraisals of some 86 separate
resorts in both the USA and Canada. These valuation assignments have varied from
one of the largest most successful North American resorts to several bankrupt
operations that had only salvage value left. We have worked for ski resort owners,
commercial banks, governments, and both the FDIC and the Resolution Trust Corp. We
have had assignments to review other appraisers work, and to allocate the purchase
price between land, hard assets and intangibles. This appraisal expertise was a natural
extension of Ted Farwell’s forty-five years as a ski area consultant, when in the middle
seventies Farwell studied appraisal and earned the professional designation MAI
(Member Appraisal Institute).

Professional Membership:

             Member - Appraisal Institute (MAI #6798)              1983-Present

             Certified General Appraiser - State of Colorado (#ACO 1313626)
                                         - State of Idaho (CGA 722)

             Senior Member -American Society of Appraisers (ASA)
             (Real Property -Urban)                            1970-1980
                   Treasurer, Denver Chapter-                  1974/75
                   Secretary, Denver Chapter -                 1975/76
                   Vice President, Denver Chapter -            1976/77
                   President, Denver Chapter -                 1977/79

             Member -National Ski Areas Association                1977 -1996
                  Economic Study Committee

Ted Farwell MAI
Resume – 11/27/2006
                                                                                       2

Awards:      Elected to Colorado Ski Hall of Fame                 1992
             Elected to National Ski Hall of Fame                 1992
             University of Denver Athletic Hall of Fame           1999

Education: New York State College of Forestry                  1948-50
           University of Denver, B.S.B.A.                      1957-59
           Stanford University, M.B.A.                         1959-61
           Completed American Institute of Real Estate Appraisers'
           Courses:
           -     Capitalization Theory & Technique
           -     Investment Analysis
           -     Urban Properties
           -     Market Analysis
           -     Advanced Rural Case Studies
           -     Federal Land Exchanges & Acquisitions
           -     Highest & Best Use & Market Analysis
           -     Condemnation Appraising
           -     Advanced Sales Comparison & Cost Approaches
           Attended seminar of the Real Estate Appraisal Foundation:
           -     Real Estate Analysis
           Awarded MAI designation #6798 - Dec. 14,1983

Professional Responsibilities:

            General Chairman: ASA Denver Chapter Sponsored Recreational
                              Properties Appraisal Symposium

            Instructor:          Appraisal of Ski Areas-ASA Sponsored Symp.
                                 Appraisal of Ski Areas - Appraisal Institute of Canada
                                 National Conference
Publications:

      “The Appraisal of Ski Areas,” Valuation, Vol. 23, #2; American Society of
      Appraisers; Oct/Nov 1976

      “The Appraisal of Ski Areas,” AIM, Vol. 26, Book 3, August 1982 Appraisal
      Institute of Canada

      "Fair Market Value”, Ski Area Management, Vol 32, #2, March 1993

      “Measuring Ski Area Value”, Ski Area Management, Vol 33, #2, March        1994



Ted Farwell MAI
Resume – 11/27/2006
                                                                                3

Experience:
      Employment:
      Winterstar Valuations, Inc, President                       (2002 - )
      Ted Farwell & Associates, Principal                         (2001-02)
      Ted Farwell & Associates, lnc, President                    (1972-01)
      Group Delta Consortium, Partner                             (1975-95)
      Stratton Corporation; V.P. Mountain Operations              (1984-85)
      Lake Catamount Project; Planning Director                   (1973-75)
      Denver Olympic Committee; Technical Director                (1970-72)
      Sno-engineering Inc.; Vice President                        (1968-70)
                          Director of Research                    (1961-68)
      Franconia College; Director of Business Prog.               (1963-64)
      USAF Jet & Helicopter Pilot                                 (1951-57)

Board of Directors:
     Loon Mountain Recreation Corporation                         (1965-70)
     Black Hills Chairlift Co. (Terry Peak)                       (1986-92)

Scope of Assignments:
     Physical Site Evaluation                          Ski Resort Appraisals
     Ski Area Design & Layout                          Snowmaking Feasibility
     Economic Feasibility Studies                      Supply/Demand Analysis
     Master Planning                                   Investment Analysis
     Skier Market Research & Analysis                  Sales Forecasting

Specific Ski Resort Appraisals:
      Hidden Valley, Estes Park, CO (with Jerry Moore, MAI, SRPA)      1976
      Greek Peak, Cortland, NY (with Dave Schwaner, MAI, SRPA)         1977
      Skyline Basin, Dayton, WA – Bluewood Ski Area                 1977/03
      Bridger Bowl, Bozeman, MT                                        1978
      A-Basin, Dillon, CO                                              1978
      Hogadon Ski Area, Casper, WY                                     1978
      Kirkwood Ski Resort, Kirkwood, CA                                1979
      Buena Vista Ski Area, Bemidji, MN                                1979
      Snowbasin Ski Area, Ogden, UT                               1980/82/84
      Mt. Reba/Bear Valley Ski Resort, Bear Valley, CA                 1980
      Orchard Site, Collingwood, ONT                                   1980
      China Peak (Sierra Summit), CA (Review)                          1980
      Pike’s Peak Ski Area, Colorado Springs, CO                    1980/83
      Sleeping Giant Ski Area, Cody, WY                                1981


Ted Farwell MAI
Resume – 11/27/2006
                                                                             4
     Dodge Ridge Ski Area, Pinecrest, CA                             1981
     Bristol Mt. Ski Center, Bristol, NY
      (With Dave Schwaner, MAI, SRPA)                                1981
     Geneva Basin Ski Area, Grant, CO                             1982/92
     Rio Costilla Ski Resort, Costilla, NM                     1982/90/91
     Bromley Mountain, Manchester, VT (Purchase Price Alloc.)        1985
     Sugarloaf Ski Resort, Carrabassett, ME                          1985
     Big Mt. Ski Resort, Whitefish, MT                         1985/92/94
     Stratton Mt. Ski Resort, Stratton, VT                           1985
     Tory Mountain, Harmon, WV (with Bruce Closser, MAI)          1985/86
     Arizona Snow Bowl, Flagstaff, AZ                     1981/2002/04/06
     Fairfield Snowbowl, Flagstaff, AZ                          1986/90/92
     Mt. Hood Meadows, Portland, OR                             1986/2002
     Caberfae Ski Resort, Cadillac, Ml (Land Value only)             1987
     Terry Peak Ski Area, Lead, SD                              1987/2002
     Snowshoe Resort, Snowshoe, WV                                1987/94
     Silver Creek Ski Area, Granby, CO                               1987
     Lake Louise Ski Resort, Alberta, CAN                1988/93/96/2000
     Telluride Ski Resort, Telluride, CO                          1988/92
     Sunshine Village, Banff, ALB, CAN                               1988
     Tenney Mt. Ski Area, Plymouth, NH                               1989
     Elk Meadows Ski Area, Beaver, UT                          1989/91/93
     Grand Targhee Ski Resort, Alta, WY                              1990
     Ski Sunlight, Glenwood Springs, CO                      1982/90/91/93
     Burke Mt. Ski Resort, East Burke, VT                            1990
     Mt. Cranmore Ski Resort, North Conway, NH                    1991/93
     Snowy Range Ski Area, Centennial, WY                         1991/95
     Schweitzer Mt. Ski Resort Sandpoint, ID                    1991/92/03
     Fortress Mt. Ski Area, Kananaskis, ALB, CAN                1991/2000
     Vail & Beaver Creek Ski Resorts, Vail, CO.                      1991
     Sunegga Ski Area, Bethany, ONT, CAN                             1992
     Northstar-At-Tahoe, Truckee, CA                                 1993
     Galena Ski Resort, Mt. Rose NV (Appraisal Review)               1993
     Sierra Ski Ranch, Twin Bridges, CA                              1993
     Grouse Mountain, Vancouver, British Columbia, CAN               1994
     Mt. Spokane, Spokane, WA                                     1994/97
     Waterville Valley Ski Area, Waterville Valley, NH               1994
     Moffat Tunnel Land, Winter Park, CO                          1995/96
     Beaver Mountain, Logan, UT                                   1995/97
     Snowbird Ski Resort, UT                                         1995
     USFS exchange for Base Lands, Grand Targhee, WY            1995/2000
     Preliminary Valuation of Blue Mt, PA                            1996

Ted Farwell MAI
Resume – 11/27/2006
                                                                                      5
      Deer Mt Ski Area - Leased Lands, Lead S.D.                         1996
      Powder Mountain, Eden UTAH (Understanding of Value)                1996
      Preliminary Valuation of the Powderhorn Ski Area, CO               1997
      Mike Wiegele Helicopter Skiing, Blue River, B.C., CAN              1997
      Silver Star Mountain Resort, Vernon, B.C., CAN.                    1997
      Paoli Peaks Ski Area, Paoli, IN                                    1997
      590-Acre Tract for Base Lands, Brundage Mt., ID                    1998
      Nakiska Ski Area, ALB, CAN.                                        1999
      Kimberley Ski & Golf Resort, B.C., CAN                             2000
      Fernie Alpine Resort, B.C., CAN.                                   2000
      Wintergreen Ski & Golf Resort, ALB, CAN.                           2000
      Mt. Bachelor Ski Resort, Bend, OR                                  2002
      Mission Ridge Ski Area, Wenatchee, WA                            2002/03
      Solitude Mountain Resort, Solitude UT                            2002/06
      Kelly Canyon Ski Area, Idaho Falls, ID                             2002
      Stevens Pass Ski Area, Skykomish, WA                               2003
      49 Degrees North Ski Area, Chewelah, WA                          2003/06
      Chestnut Mountain Resort, Galena, Ill                            2003/05
      Morningstar Lodge at Silver Mt., Kellogg ID                        2005
      Echo Mountain Snowboard Park, Idaho Springs, CO                    2005
      Taos Ski Valley, Taos Ski Valley, New Mexico                       2006

Special Projects

            Allocation of the purchase price of 13 ski area sales to measure the fair
              market value of the public and private land for the USFS Washington
              office Mr. Paul Tittman, ARA, Chief Appraiser- 1992/1993 Breckenridge,
              CO (2 sales) • Steamboat, CO • Monarch, CO Eldora, CO • Grand
              Targhee, WY • Jackson Hole, WY • Brighton, UT • Heavenly, CA •
              Goldmine, CA • Bromley, VT • Wildcat, NH Sierra Ski Ranch, CA

            Analysis of the feasibility of ski resort development on Nevado de Toluca,
              Mexico

            A Master Plan for the development of the Nasan Country Club Ski Resort
              in Pochoun, Korea

            Analysis of Lost Opportunity for the Cypress Bowl Ski Area, North
              Vancouver, B.C., Canada

            A Master Plan for the development of the Kosciusko Thredbo Ski Resort -
              NSW, Australia


Ted Farwell MAI
Resume – 11/27/2006
                                                                                      6
            A Business Plan in support of the purchase of the Grand Targhee Ski &
              Summer Resort, Alta, Wyoming

            A Terrain Capacity Analysis & Conceptual Ski Resort Design for the
              Powder Mountain Resort, Eden, Utah

Representative List of Clients:
     Government:
            United States Forest Service, USDA
            Economic Development Administration, USDC
            Area Redevelopment Administration, USDC
            Farmers Home Administration, USDA
            New Hampshire State Planning Project
            New York State Office of Planning Coordination
            Wyoming Economic Development Department
            Canadian National Parks Service
            Ministry of Culture & Recreation, Province of Ontario
            Province of British Columbia
            Travel Alberta, Province of Alberta
            Atlantic Canada Opportunities Agency, Province of New Brunswick
            Federal Deposit Insurance Corporation
            Resolution Trust Corporation
            Washington State Parks & Recreation Commission
            Moffat Tunnel Commission
            Governor’s Office of Planning - State of Utah
     Industry Trade Organizations:
            National Ski Areas Association
            Midwest Ski Areas Association
     Private Organizations:
            Loon Mountain Recreation Corp.; NH
            Waterville Company; NH
            Madonna Mountain Corp.; VT
            Burke Mountain Corp.; VT
            Windham Mountain; NY
            Mount Sutton, Ltd.; Quebec, Canada
            Camp Fortune; Ottawa Ski Club; Quebec, Canada
            Boise Cascade Co.; NC
            Winter Park Recreation Assoc.; CO
            L.T.V. Recreation Development; CO
            Pleasant Valley Investment Co.; CO
            The Woodmoor Corp.; CO
            Jackson Hole Ski Corp.; WY
            Mt. Ste. Marie, Ltd.; Quebec, Canada

Ted Farwell MAI
Resume – 11/27/2006
                                                                           7
           Blue Mountain Resorts; Ontario, Canada
           Aspen Highlands Ski Co.; CO
           Attitash Ski Corp.; NH
           Whitewater Ski Society; British Columbia, Canada
           Medicine Bow Ski Co.; WY
           Ski Roundtop Inc. (Now Snow Time Inc.); PA
           Thredbo Ski Resort; NSW, Australia
           Mt. Cook Line; Queenstown, New Zealand
           Ski Venture, Inc., Snowshoe, W\/
           Blackcomb Resort; B.C., Canada
           Leisureland; Auckland, New Zealand
           Skiing Louise Ltd., Lake Louise, Alberta, Canada
           Sunshine Village Corp. Banff, Alberta, Canada
           Searchmont, Sault Ste. Marie, Ontario, Canada
           Ski Wentworth, Wentworth Valley, Nova Scotia, Canada
           Big Valley Co., Alta, WY
           Fairfield Communities, Little Rock, AR
           Camelback Ski Corp, PA
           ARCO Real Estate, Los Angles, CA.
           Powder Mountain Resort, UTAH
           MIG Corp, Seattle WA
           Taos Ski Valley, NM
     Financial Institutions:
           GEICO Financial Services Inc., Denver, CO
           Colorado National Bank, Denver, CO
           Occidental Nebraska Federal Savings & Loan, Omaha, NE
           Central Bank, Grand Junction, CO
           Hilco, Bedford, NH
           First Interstate Bank, Laramie, WY
           US Bancorp Mortgage Appraisal Services, Seattle, WA
           Bank of America, Phoenix, AZ
           First Interstate Bank of Nevada, Reno, NV
           First Interstate Bank of Washington, Seattle, WA
           Bay Bank, Harvard Trust, Boston, MA
           Equitable Real Estate Investment Management, Inc., Denver, CO
           Ontario Development Corp., Toronto, Ontario, Canada
           Citibank Canada, Vancouver, British Columbia, Canada
           AT&T Capital, Morristown, NJ
           Bank of Boston, Boston, MA
           Bank of Montreal, Banff, Canada
           Fleet Bank, Boston, MA
           NCW Community Bank, Wenatchee, WA
           First Western Bank, Deadwood, SD
Ted Farwell MAI
Resume – 11/27/2006
                                                  8
           Wells Fargo Bank, California
           Zions First National Bank, ID/UT
           National Bank of Arizona, Phoenix AZ
           Baker-Boyer Bank, Walla Walla, WA
           Washington Trust Bank, Spokane, WA
           Dubuque Bank & Trust, Dubuque, IA




Ted Farwell MAI
Resume – 11/27/2006
APPRAISER
QUALIFICATIONS

Daniel V. Pahl President
Pahl Industrial Inc.

EDUCATION, AFFILIATIONS,
CERTIFICATIONS & LICENSES
 Graduate Vancouver Technical School, Vancouver Canada
 Certified Equipment Appraiser (CEA) as sanctioned by AMEA (Association of
   Machinery and Equipment Appraisers) – Certificate attached.
 Certified USPAP (Uniform Standards of Professional Appraisal Practice)
   practitioner As sanctioned by ASA (American Society of Appraisers) –
   Certificate attached.
 Licensed Auctioneer in Oregon, California, Texas, Washington, and Florida.
 Member TMA (Turnaround Management Association)
 Member ABI (American Bankruptcy Institute)

INDUSTRY RECOGNITION
 Expert witness in Litigation Cases
 Facilitated Executive and Management Improvement Courses
 Graduate Dale Carnegie Sales Course
 Conduct numerous gratuities Auctions for Charitable Organizations annually

Experience & Employment History

Feb 2002 – Present Pahl Industrial Inc
                        Owner/President
Pahl Industrial specializes in the Appraisal and Liquidation of Machinery and Equipment
in a variety of Industries.
 Machinery and Equipment appraiser for lease transactions, property tax, and
   Asset based lending purposes.
 Perform auctions for machinery and equipment in a variety of industries.

Feb 2001 – Jan 2002 Hilco Industrial LLC
                        Executive Vice President
Hilco Industrial opened an Industrial Auction and Appraisal business in Chicago
servicing a variety of manufacturing industries. My duties for opening this division
included:
 Formulating, developing and implementing a business plan for the disposition
   of assets
 Personnel hired and an infrastructure built

April 1975 – Jan 2001 Maynards Industries (1991) Inc.
                         Executive Vice President/Partner
Fiscally responsible for the operation and management of the Industrial Division of a
$75,000,000 per year Auction, Appraisal and Liquidation business.
 Instrumental in opening the U.S. operations of this Canadian based company
   In 1986.
 Responsible for directing this division in the performance of Auctions,
  Appraisals and Liquidations Initially in San Francisco and Portland Oregon
  with eventually expansion including Lansing Michigan, Cincinnati and
  Monterrey Mexico.
 Performed and or supervised over 100 Appraisals, Auctions and Liquidations
  per year.
 Oversaw complex Appraisals and Liquidations for Pulp and Paper Mills,
  Mines, Construction Equipment, etc.
 Established reputable and reliable name recognition for Maynards to Bankers,
  Asset Based Lenders, Lawyers, CPA’s, Turnaround Professionals and
  Industry executives
 Instrumental in developing a business to business “e Commerce” plan for the
  sale of equipment for long-term strategic partners. Namely General Motors,
  Boeing, Tower Automotive, Compass Aerospace, etc.

 Part of an Executive Business Development team that developed and
  Implemented strategic trade missions to developing foreign countries in an
  effort to broaden the customer base for Machinery and Equipment available
  In North America
 Designed and implemented an historical data base for the collection and
   storage of sales data for equipment from a variety of industries. This data
   base is updated daily and is a key element in determining values for the
   Appraisal and Liquidation business.

Oct 1970 – March 1975 Airmatic Sales Ltd
                        Sales Manager/Owner
Company involved in selling a full line of Pneumatic products and also operated a
Full service Machine and Fabrication Shop. Actively involved in every aspect of this
small business, which enhanced the eventual move into the Appraisal and
Liquidation field.

April 1964 – Sept 1970 Galbraith & Sulley/Robert Morse Corporation
                            Sales Trainee/Salesmen
Progressed from sales trainee to inside sales to outside sales in 1 ½ years with this
large industrial firm selling full lines of Pneumatics, Hydraulics, Power Transmission,
Material Handling Equipment, Sawmill Equipment which was expanded to include
Machine Tools, Construction Equipment and Logging Equipment when the company
was purchased by Robert Morse Corporation in 1968. The 8 years spent with these firms
was the base of knowledge in a variety of industries that accelerated the learning curve
in the Appraisal and Liquidation business.
                                     JOHN C. ELLIS
                                    E. 561 Jackson Ave.
                                 Spokane, Washington 99207
                                   Phone (509) 483-6181

                                         January 2006



Born:             February 28, 1967
                  Spokane, Washington

Marital Status:          Married - 1991
                         Three children - Son and Two Daughters

Education:        B.S. Civil Engineering, Gonzaga University, Spokane Washington - 1989

        Registration as a Professional Engineer in the state of Washington and Utah

Memberships: American Society of Civil Engineers
             National Society of Professional Engineers
             Organization International Transportation by Rope, (N.A.C.S.)
             American Welding Society

Experience:       Aerial Engineering, Inc. 1989 to present.
                  Duties include: project engineering working on all facets of aerial
                  rope-way design and inspection from handle tows to jig back tramways.
                  Worked with Doppelmayr USA , providing design and construction
                  engineering on over 10 detachable and fixed grip lifts.
                  Project engineer on over 25 lift relocation projects involving the following
                  lift brands; Riblet, Lift Engineering, Doppelmayr, CTEC, Heron-Poma and
                  Borvig.
                   Shop manager for Superior Tramway Co.; which is a subsidiary of Aerial
                  Engineering. This facility has a full machine and welding shop, supplying
                  parts for the ropeway industry; specializing in rebuilding used lifts.



Hobbies:          Fishing, hiking, motorcycling, golf, camping.

								
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