BLUE RIDGE REAL ESTATE COMPANY
                            BIG BOULDER CORPORATION

                            STOCK OPTION AGREEMENT

      ELDON D. DIETTERICK (the "Optionee") has been granted an option (the
"Option") as of December 10, 2001 to purchase 3,000 shares of Common Stock of
Blue Ridge Real Estate Company and Big Boulder Corporation (collectively the
"Companies").  The Option shall be subject to the following terms and
conditions:

1. PURCHASE PRICE.  With respect to the shares of Common Stock of the Companies
   subject to the Option to be delivered in unit form (the "Shares"), 3,000
   Shares may be purchased for $10.50 per share.

2. DURATION OF OPTION.  The Option shall expire, and all rights to purchase
   Shares pursuant thereto shall cease, on December 10, 2006.

3. EXERCISABILITY.  The Shares subject to the Option may be purchased
   immediately, without any vesting period, and throughout the duration of the
   Option.

4. PURCHASE OF OPTION SHARES.  The Optionee may purchase the Shares subject to
   the Option in whole at any time, or in part from time to time, by delivering
   to the Secretary of the Companies written notice specifying the number of
   Shares being purchased, together with payment in full of the purchase price
   of such Shares plus any applicable federal, state or local taxes for which
   the Companies have a withholding obligation in connection with such
   purchase.  Such payment shall be made in whole or in part in cash, or by
   personal check, certified check, money market check or bank draft payable to
   the order of the Companies.

5. NONTRANSFERABILITY.  The Option shall not be transferable other than (i) by
   will, (ii) by the laws of descent and distribution, (iii) pursuant to the
   terms of a qualified domestic relations order or (iv) in circumstances other
   than those set forth in (i) - (iii) above, with the express written approval
   of the Companies.

6. ISSUANCE OF SHARES: RESTRICTIONS.

(i)The Companies shall, within ten business days after Shares subject to the
   Option have been purchased in whole or in part, deliver to the Optionee a
   certificate, registered in the name of the Optionee, for the number of
   Shares so purchased.  The Companies may legend any Share certificate issued
   hereunder to reflect any restrictions deemed necessary by the Companies to
   comply with the federal securities laws.

(ii)The Companies may require, prior to and as a condition of the issuance of
   any Shares, that the Optionee furnish the Companies with a written
   representation, in a form acceptable to the Companies' counsel, to the
   effect that the Optionee is acquiring such Shares solely with a view to
   investment for the Optionee's own account and not with a view to the resale
   or distribution of all or any part thereof, and that the Optionee will not
   dispose of any of such Shares otherwise than in accordance with the
   provisions of Rule 144 under the Securities Act of 1933, as amended (the
   "1933 Act"), unless and until either the Shares are registered under the
   1933 Act or the Companies are satisfied that an exemption from such
   registration is available.

(iii) Anything contained herein to the contrary notwithstanding, the companies
   shall not be obligated to sell or issue any Shares pursuant to the Option
   unless and until the Companies are satisfied that such sale or issuance
   complies with (A) all applicable requirements of the National Association of
   Securities Dealers (or the governing body of the principal market in which
   the Companies' Common Stock is traded), (B) all applicable provisions of the
   1933 Act and (C) all other laws or regulations by which the Companies are
   bound or to which the Companies are subject.

1. ADJUSTMENTS.  In the event that the Companies make any distribution of cash,
   Common Stock, assets or other property to shareholders which results from
   the sale or disposition of a major asset or separate operating division of
   the Companies or any other extraordinary event and, in the judgment of the
   Board of Directors of the Companies (the "Board"), such change or
   distribution would significantly dilute the rights of Optionee hereunder,
   then the Board may make appropriate adjustments to the number of Shares
   subject to and/or the purchase price of the Option.  The adjustments
   determined by the Board shall be final, binding and conclusive.

2. AMENDMENT.  This Option Agreement shall not be amended or revised in any
   respect unless such amendment is in writing and executed by the Companies
   and the Optionee.

3. TERMINATION.  In the Optionee shall resign as an Officer of the Companies,
   the Option shall terminate and the Optionee shall have no further rights
   hereunder.

4. GOVERNING LAW.  This Option Agreement shall be governed by and construed in
   accordance with the laws of the Commonwealth of Pennsylvania.

5. OPTIONEE ACKNOWLEDGMENT.  Optionee acknowledges receipt of a copy of this
   Option Agreement and hereby agrees to be bound by all provisions of this
   Option Agreement.


DATE OF GRANT: December 10, 2001
                                       BY:  BLUE RIDGE REAL ESTATE COMPANY
                                              BIG BOULDER CORPORATION


                                       BY:  __________________________________
                                             MICHAEL J. FLYNN
                                             CHAIRMAN OF THE BOARD

ATTEST:

______________________________

                                             __________________________________
                                             ELDON D. DIETTERICK, OPTIONEE