Document:

exv10w1

Exhibit 10.1

LOAN AGREEMENT

     THIS LOAN AGREEMENT (this “Agreement”) is made and entered into as of the 4th day of
April, 2007 by and between PEAK RESORTS, INC., a Missouri corporation (“Peak”), LBO HOLDING, INC.,
a Maine corporation (“LBO”, and together with Peak, collectively, “Borrower”) and
EPT MOUNT ATTITASH, INC., a Delaware corporation (“Lender”).

RECITALS

     A. LBO is the owner of a ski resort, commercial condominium unit of the Grand Summit Hotel
(the “Hotel”), and golf course commonly referred to as Mount Attitash, located in Carroll
County, New Hampshire, and legally described on Exhibit A attached hereto (the
“Land”).

     B. Borrower intends to undertake the construction of certain capital improvements on the Land,
including without limitation, certain renovations and improvements to the Hotel and the Mount
Attitash ski facility (the “Ski Facility”)(the Hotel and the Ski Facility, together with
all other ancillary or related structures and improvements on the Land are collectively referred to
herein as the “Project”). The improvements located within the Project (the
“Improvements”), together with all fixtures, fittings, appliances, apparatus, machinery,
furnishings, equipment, furniture or other personal property and any replacements thereof or
substitutes there for now or at any time hereafter located on or used in any way in connection with
the operation of the Land and/or Improvements (the “Personal Property”), and together with
the Project are hereinafter collectively called the “Premises”.

     C. Borrower desires to borrow from Lender an amount up to Fifteen Million Seven Hundred
Thousand Dollars ($15,700,000.00) (the “Loan”) for the purpose of paying certain approved
costs and expenses of acquiring the stock of LBO, purchasing certain equipment necessary for the
operations of Mount Attitash, and constructing Improvements.

AGREEMENTS

     NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants, conditions and
agreements herein contained, the parties agree as follows:

ARTICLE I

BORROWER’S REPRESENTATIONS, COVENANTS,

WARRANTIES AND AGREEMENTS

     As a material inducement to Lender’s entering into this Agreement, Borrower hereby represents,
covenants and warrants to, and agrees with Lender as follows:

     1.1. Truth of Recitals. Each of the foregoing Recitals is true and correct in all
material respects.

     1.2. Organization and Authority. Borrower is a corporation duly organized and validly
existing under the laws of the State of Missouri, and Borrower agrees to maintain its existence as
a corporation until the Loan is paid in full. Borrower has full right, power and

 

 

authority to execute, deliver and carry out the terms and provisions of this Agreement and the
other Loan Documents (as hereinafter defined) and any other documents and instruments to be
executed and delivered by Borrower pursuant to this Agreement.

     1.3. Enforceability. This Agreement constitutes, and the Loan Documents and any other
documents and instruments to be executed and delivered pursuant to or in connection with this
Agreement, when executed and delivered pursuant hereto will constitute, the duly authorized, valid
and legally binding obligations of the party or parties executing the same, enforceable in
accordance with their respective terms, subject to the effect of bankruptcy, insolvency or other
similar laws affecting the rights of creditors generally, and general principles of equity
(regardless of whether considered in a proceeding in equity or at law).

     1.4. Execution and Delivery. The execution and delivery of this Agreement, the Loan
Documents and any other documents or instruments to be executed and delivered by Borrower pursuant
hereto, the consummation of the transactions herein or therein and compliance with the terms and
provisions hereof of, will not: (a) to the best of Borrower’s knowledge, violate any presently
existing material provisions of law or any presently existing applicable material regulation,
order, writ, injunction or decree of any court or governmental department, commission, board,
bureau, agency or instrumentality or any applicable material statute, ordinance, code or law; or
(b) conflict or be inconsistent with, in any material respect, or result in any breach of, any of
the terms, covenants, conditions or provisions of, or constitute a default under, any indenture,
mortgage, deed of trust, instrument, document, agreement, or contract of any kind to which Borrower
is a party or by which Borrower may be bound.

     1.5. Pending Actions. To the best of Borrower’s knowledge, there are no petitions,
actions, suits, or proceedings pending or threatened against or affecting Borrower or the Premises
before any court or any governmental, administrative, regulatory, adjudicatory or arbitrational
body or agency of any kind (including, without limitation, any actions or petitions to alter or
declare invalid any laws, ordinances, rules, regulations, permits, certificates, restrictions or
agreements authorizing or relating to the Premises) (individually a “Legal Prohibition”)
which might adversely affect the performance by Borrower of its obligations pursuant to, and as
contemplated by the, terms and provisions of this Agreement, or Borrower’s intended construction,
use or operation of the Premises. Borrower agrees that during the term of the Loan, Borrower shall
promptly furnish to Lender a written notice of any litigation in which either Borrower or the
Premises is named as defendant or which in any material respect affects or relates to the Premises
or Borrower, and, upon written request from Lender, shall furnish to Lender copies of all pleadings
or orders filed or entered therein or with respect thereto.

     1.6. Financial Statements, Reporting. The financial statements and other financial
information heretofore furnished, or caused to be furnished, to Lender relating to Borrower and the
Project are true, accurate and complete in all material respects as of the date specified therein,
were prepared in accordance with accepted accounting principles on a basis consistent with that of
preceding years, and fully and accurately present in all material respects the financial condition
of the Borrower as of the date specified. Since the date of such statements, there has been no
material adverse change in the business or financial condition of the Borrower. For so long as the
Loan remains unsatisfied, Borrower agrees to provide to Lender, or cause to be provided to Lender,
such financial information reasonably required by Lender (in form and

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substance reasonably satisfactory to Lender), including, without limitation, (a) annual
balance sheets and income statements of Borrower and LBO no later than ninety (90) days after the
end of each fiscal year of Borrower; (b) copies of federal income tax returns of Borrower and LBO
within thirty (30) days of the date the same are filed, (c) a Project Operating Statement on a
quarterly basis showing all revenue and expense items on a quarterly and rolling twelve month
basis; and (d) audited financial statements of Borrower and LBO or any tenant operating the
Project. Borrower shall also promptly report to Lender any material adverse change in the net
worth or financial status of Borrower or LBO.

     1.7. No Violations. The Borrower has not received any notice of default under any
contract, agreement or commitment to which it is a party or by which it is bound, the effect of
which will adversely affect the performance by Borrower of its obligations under or pursuant to
this Agreement. To the best of Borrower’s knowledge, neither the construction of the Project nor
the use thereof as contemplated herein violates or will upon completion violate at any time in the
future: (a) any material Development Requirements (hereinafter defined); (b) any material building
or other permit or license issued with respect to the Project or any portion thereof; or (c) any
material condition, easement, right-of-way, covenant or restriction affecting the Premises or any
portion thereof. Borrower knows of no basis upon which such authorities may fail or refuse to
issue occupancy permits with respect to the Improvements upon completion thereof.

     1.8. Utilities; Permits. All utility services necessary and sufficient for the
construction of the Project (and each portion thereof) and the occupation and use of the
Improvements, including water, storm and sanitary sewer facilities, telephone and electric, are
available at the boundaries of the Land or are to be brought to the boundaries of the Land in
connection with the construction of the Project. On or before the time required by applicable
authorities or as otherwise required to effectively construct and operate the Project (i)
unconditional written permission will be obtained from the applicable utilities or municipalities,
as the case may be, to tie the Project into each of such services, and (ii) all necessary and
required licenses, permits and approvals will be obtained to permit the construction of the Project
and the operation thereof as herein contemplated from all appropriate governmental authorities,
including, but not limited to all sanitary, conservation and special benefit districts or agencies
and all zoning boards and agencies having jurisdiction. Borrower will promptly furnish Lender with
copies of all of such written permission, licenses, permits and approvals as and when issued and,
in any event, prior to the disbursement of Loan proceeds to pay the cost thereof.

     1.9. Title. LBO is the sole owner of the Land described on Exhibit A attached
hereto, free and clear of all other liens, claims, rights and encumbrances, and subject only to the
matters listed on Exhibit B attached hereto (the “Permitted Exceptions”). Without
Lender’s prior written approval, Borrower shall not allow any of the following actions to be
undertaken or completed with respect to all or any part of the Land: (a) the imposition of any
restrictive covenants or encumbrances; (b) the execution or filing of any site plan, plat of
dedication or plat of subdivision; (c) any conversion to a condominium or cooperative; or (d) any
annexation to any city.

     1.10. Zoning. The Land is duly and validly zoned, or Borrower has obtained a special
use permit, so as to permit the development and use of the Land as contemplated herein. All such
zoning is final and unconditional, in full force and effect and no attacks are pending or

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threatened with respect thereto. Neither the zoning nor any other right to use or operate the
Project is in any way dependent upon any other real estate.

     1.11. Complete Information. No representation or warranty of Borrower contained
herein or in any of the Loan Documents, and no statement contained in any certificate, schedule,
list, financial statement or other instrument furnished to Lender by or on behalf of Borrower
contains, or will contain, any untrue statement of a material fact, or omits, or will omit, to
state a material fact necessary to make the statements contained herein or therein not materially
misleading. To the best of Borrower’s knowledge, all information material to the transactions
contemplated herein has been expressly disclosed in writing by Borrower to Lender.

     1.12. Character of Loan; Usury. The proceeds of the Loan will be used solely for the
purposes of (a) acquiring the stock of LBO; (b) funding the debt service reserve to Lender for the
Note; and (c) payment of Construction Costs (hereinafter defined). The Loan is not being made for
the purpose of purchasing or carrying margin stocks, and Borrower agrees to execute all instruments
necessary to comply with all of the requirements of Regulation U of the Federal Reserve System.
The Loan is an exempt transaction under the Truth-in-Lending Act. Neither the performance by
Borrower of its obligations hereunder or under the Loan Documents or any other documents and
instruments delivered pursuant hereto or in connection herewith nor the interest rate under the
Note nor any other aspect of the transaction contemplated hereby shall cause the Loan to be
usurious or illegal under applicable law.

     1.13. Leases, Management Contracts. There are no contracts or agreements (either oral
or written) affecting the Project in any material respect, including, without limitation, leases,
tenancies or other contracts or agreements relating to the maintenance, development or management
thereof, except for the Permitted Exceptions, or as otherwise specifically listed in Exhibit
B hereto. Borrower has heretofore furnished Lender with true and complete copies of all of
such contracts or agreements.

     1.14. Brokerage. No brokerage fees or commissions are payable in connection with the
Loan to be disbursed by Lender hereunder. Borrower shall protect, defend, indemnify and hold
Lender harmless from and against all loss, reasonable cost, liability and reasonable expense,
incurred by Lender as a result of any claim for a broker’s or finder’s fee by any person or entity
in connection with the transaction herein contemplated.

     1.15. Condemnation. The Borrower has not received any notice from any governmental or
quasi-governmental body or agency or from any person or entity with respect to, or has any
knowledge of any actual or threatened taking of, the Premises, or any material portion thereof, by
the exercise of the right of condemnation or eminent domain (a “Condemnation”). Further,
Borrower covenants that it will not enter into any agreement for any Condemnation with any person
or entity authorized to acquire property in or by condemnation proceedings, or by the exercise of
any power of eminent domain, unless and until Lender shall have consented thereto in writing.

     1.16. Separate Tax Parcel. A tax division has been effected with respect to the Land
so that each separately described tract of the same, as shown on Exhibit A, is taxed for ad
valorem taxation without regard to any other property. A subdivision has been effected with
respect to

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the Land (or is not required) so that for all purposes the Borrower’s interest in the Land may
be mortgaged, conveyed and otherwise dealt with as a separate lots or parcels.

     1.17. Personal Property. Except as otherwise specified herein, Borrower shall fully
pay for all Personal Property, including, without limitation, all fixtures, fittings, appliances,
apparatus, machinery, furnishings, equipment, furniture and other personal property located on the
Premises and any replacements thereof or substitutions therefor, now or at any time hereafter
located upon or used in any way in connection with the operation of the Premises. Except as
otherwise specified herein, all of the Personal Property will be owned by Borrower in Borrower’s
name. Notwithstanding anything to the contrary herein, Borrower may acquire fixtures, appliances,
machinery, furnishings, equipment, furniture and other personal property relating to the Project
under lease or lease/purchase arrangements so long as (i) the terms thereof are market rate
arms-length transactions and (ii) the costs associated therewith are not included in the
Construction Costs.

     1.18. Budgets. The Borrower has previously provided a project budget (the
“Project Budget”) to the Lender, a copy of which is attached hereto as Exhibit C.
Prior to receiving any construction disbursements relating to the Project, the Lender shall have
approved all aspects of the Project Budget, including (including contingency, reserve and retainage
provisions satisfactory to Lender) all expenses and costs incurred or estimated to be incurred and
reserves to be established and maintained in connection with the acquisition of the Land and the
Personal Property, construction and completion of the Project, marketing and other soft costs,
operating deficits and costs and expenses of the Loan (the “Total Costs”). The Project
Budget shall further identify all costs of the Project which may be funded from the proceeds of the
Loan, including without limitation, the costs of Borrower incurred in connection with acquiring the
stock in LBO (the “Construction Costs”). To the best of Borrower’s knowledge, the Project
Budget is accurate and complete. The Loan will be sufficient to finally and fully complete and pay
for all of the Construction Costs.

     1.19. Access, Parking. Access to the Project currently exists from a publicly
dedicated street or streets which abut the Project. This access is adequate to serve the needs of
the Project and permit its full utilization in the manner planned.

     1.20. Compliance with Development Requirements. Borrower shall perform or cause to be
performed all material obligations required to be satisfied by the owner or developer of the
Premises under any and all contracts, agreements, statutes, ordinances, rules, resolutions and
declarations, recorded or unrecorded, made with or promulgated by any governmental or
administrative authority, agency or body, or any other entity, public or private, with respect to,
on account of, arising out of, or otherwise affecting the development of the Premises (including,
but not limited to, zoning, building and environmental protection laws, codes, ordinances, orders
and regulations, and the Americans with Disabilities Act of 1990 and any amendments or
modifications thereto) (collectively the “Development Requirements”). Borrower shall,
after completion of the Project, obtain all certificates, statements or other documentation
evidencing compliance with the Development Requirements reasonably requested by Lender.

     1.21. Project Agreements. Borrower will hereafter furnish Lender with true and
complete copies (including all amendments and modifications) of any and all Development

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Requirements evidenced by documents, agreements and instruments specifically entered into by
Borrower or LBO (all of the foregoing are sometimes collectively referred to herein as the
“Project Agreements”). To the best of Borrower’s knowledge, each of the Project Agreements
is in full force and effect, no material default has occurred under any of them and, to the best of
Borrower’s knowledge, no event has occurred which with the giving of notice or passage of time, or
both, could give rise to a material default under any of them. Borrower will perform all of its
covenants, agreements and undertakings, and will satisfy all conditions precedent on the part of
Borrower to be performed under the Project Agreements. Borrower will not materially modify or
amend, and will not cancel or terminate, any of the Project Agreements without first obtaining
Lender’s written consent thereto. Borrower shall, after completion of the Project obtain all
certificates, statements or other documentation evidencing compliance with the Project Agreements
reasonably requested by Lender.

     1.22. ERISA. The Borrower is not a party to any plan defined and regulated under the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”) or Section 4975 of
the Internal Revenue Code of 1986, as amended. Except as disclosed in Schedule 1.23
attached hereto, none of the assets of Borrower or any partner are “plan assets” as defined in 29
C.F.R. § 2509.75-2 or § 2510.3-101. In addition to any other transfer prohibitions set forth
herein and in the Deed of Trust (hereinafter defined), and not in limitation thereof, Borrower
shall not assign, sell, pledge, encumber, transfer, hypothecate or otherwise dispose of its
interest or rights in this Agreement or in the Premises, or attempt to do any of the foregoing or
suffer any of the foregoing, nor shall any shareholder of Borrower assign, sell, pledge, encumber,
transfer, hypothecate or otherwise dispose of any of its rights or interest in Borrower, attempt to
do any of the foregoing or suffer any of the foregoing, if such action would cause the Loan, or the
exercise of any of Lender’s rights in connection therewith, to constitute a prohibited transaction
under ERISA or the Internal Revenue Code or otherwise result in Lender being deemed in violation of
any applicable provision of ERISA. Borrower agrees to indemnify and hold Lender free and harmless
from and against all loss, costs (including attorneys’ fees and expenses), taxes, damages
(including consequential damages), and expenses Lender may suffer by reason of the investigation,
defense and settlement of claims and in obtaining any prohibited transaction exemption under ERISA
necessary or desirable in Lender’s sole judgment or by reason of a breach of the foregoing
prohibitions. The foregoing indemnification shall survive repayment of the Note.

     1.23. Liens and Encumbrances. Borrower has not made any contract or arrangement of
any kind which has given rise to (or the performance of which by the other party thereto would give
rise to) a lien or claim of lien on the Land or other collateral covered by the Loan Documents,
except for its arrangements with the Construction Company (hereinafter defined) or subcontractors
who have executed (or will execute upon completion of the work being performed by such contractors
or subcontractors) lien waivers or subordinations satisfactory to the Title Company (hereinafter
defined) and Lender, in the form furnished to and approved by Lender. Other than the Permitted
Exceptions, Borrower agrees that the Premises shall be kept free and clear of all liens and
encumbrances (unless the same are bonded over or insured over by the Title Company in a manner
satisfactory to Lender) of every nature or description (whether for taxes or assessments, or
charges for labor, materials, supplies or services or any other thing) (a “Lien”). Without
limitation of the foregoing, Borrower will not permit any instrument or document affecting the
Premises to be recorded without Lender’s prior written consent thereto.

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     1.24. Affirmation of Representation and Warranties. Borrower warrants and covenants
that the representations and warranties set forth in this Agreement will be true in all material
respects at the date of the Initial Disbursement. Borrower agrees that any Request for Advance
made by Borrower hereunder shall constitute an affirmation by Borrower that, as of the date of such
Request for Advance: (a) Borrower has performed, observed and complied in all material respects
with its representations, warranties, covenants and agreements contained herein; and (b) all
representations and warranties made by Borrower herein are true and correct in all material
respects with the same force and effect as if made on such date. All warranties, representations,
covenants and agreements made herein or in any certificate or other document delivered to Lender by
or on behalf of Borrower pursuant to or in connection with this Agreement shall be deemed to have
been relied upon by Lender, notwithstanding any investigation heretofore or hereafter made by
Lender or on its behalf (and Borrower hereby acknowledges such reliance by Lender in making the
Loan and all disbursements thereof). All such representations, warranties, covenants and
agreements shall survive the making of any or all of the disbursements contemplated hereby and
shall continue in full force and effect as long as there remains unperformed any obligation to
Lender hereunder or under any of the Loan Documents.

ARTICLE II

GENERAL CONDITIONS OF LOAN

     2.1. Required Documentation. On or prior to the Initial Disbursement hereunder,
Borrower shall execute and deliver or cause to be duly executed and delivered to Lender the
following documents, all of which shall be in form and substance satisfactory to Lender (such
documents, together with this Agreement, those documents described in Section 2.2 hereof
and all other documents and instruments given as security for the indebtedness evidenced by the
Note are herein sometimes collectively called the “Loan Documents”):

     (a) Note. Promissory Note (Mount Attitash Ski Resort) (the “Note”) of
even date herewith in the amount of Fifteen Million Seven Hundred Thousand Dollars
($15,700,000.00), executed by Borrower and LBO and payable to the order of Lender as set
forth therein, which Note has a maturity date as set forth therein (the “Maturity
Date”).

     (b) Mortgage. New Hampshire Mortgage, Assignment of Rents and Security
Agreement (the “Mortgage”) encumbering the Project and LBO’s interest in and to the
Land and any easements appurtenant thereto (the “Easements”), together with the
other property described in the Mortgage (all collectively the “Mortgaged Property”)
as security for the payment of the Note, duly executed by LBO, and evidencing a first lien
on the Mortgaged Property, subject only to the Permitted Exceptions.

     (c) Assignment of Rents. Assignment of Rents, Leases and Leasing Agreements
from LBO to Lender assigning all rents, issues, profits, and leases now or hereafter entered
into with respect to or relating to the Premises (the “Assignment of Rents”).

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     (d) Debt Service Reserve and Security Agreement. Debt Service Reserve and
Security Agreement made by and between Borrower and Lender.

     (e) Security Agreements. Such instruments and documents as may be necessary to
create and perfect, in favor of both Lender and the trustee under the separate liens and
security interests upon all Personal Property owned by Borrower and LBO and agreements
collaterally assigned by Borrower and LBO, including, without limitation, uniform commercial
code financing statements (“UCCs”).

     (f) Assignment of Permits and Licenses. Assignment of Permits and Licenses
from LBO to Lender assigning, to the extent assignable, all building permits for the
Project, together with all other permits, authorizations, licenses, approvals, patents,
tradenames or other rights as may be necessary to enable Lender to complete the Project.

     (g) Environmental Indemnity Agreement. An Environmental Indemnity Agreement
and such other documents or instruments as Lender may reasonably require.

     (h) Agreement Concerning a Loan for a Holder of a Special Use Permit.
Agreement Concerning a Loan for a Holder of a Special Use Permit by and between Lender, LBO,
and the Forest Service.

     2.2. Additional Requirements. In addition to the documents described in Section
2.1 above, prior to the Initial Disbursement hereunder (or at such later date as may be
indicated with respect to a particular item), Borrower shall deliver or cause to be delivered to
Lender each of the following, all of which shall be in form and substance satisfactory to Lender.
The making of the Initial Disbursement by Lender without receipt of any of the following items
shall not constitute a waiver by Lender of the right to receive such item:

     (a) Title Insurance. Upon recording of the Mortgage, an ALTA Loan Policy
issued by Ticor Title Insurance Company (the “Title Company”) in the aggregate face
amount of $15,700,000.00 (the “Title Insurance Policy”), insuring that as of the
date of the Initial Disbursement hereunder, the Mortgage creates in favor of Lender a valid
and prior lien on the portion of the Mortgaged Property which constitutes an interest in
real property, subject only to the Permitted Exceptions, without any exception for creditors
rights or mechanic’s liens, and containing such endorsements as Lender may require,
including, without limitation, construction loan progress endorsements, ALTA Form 9
(Restrictions, Easements and Minerals), Condominium (as to the Hotel), Subdivision, Tax
Parcel, Access, Usury, and Future Advance).

     (b) Assignment of Any Construction Contracts. In the event that Borrower or
LBO enters into any construction contract for Improvements upon the Premises or in
connection with the Project, Borrower shall provide Lender an Assignment of Construction
Contract and Consent from Borrower to Lender, in form and content acceptable to Lender,
assigning: (i) the construction contract (the “Construction Contract”) with
Borrower’s construction company (the “Construction Company”); and (ii) the rights
and interests, if any, of Borrower in or under any other contracts, prime

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contracts, subcontracts, sub-subcontracts or purchase orders applicable to the Project;
together with the consent of the Construction Company.

     (c) Architect’s Certificate. To the extent that Borrower engages any architect
during the term of the Loan in connection with the construction of Improvements at the
Project, Borrower shall provide to Lender a certificate from any such architect of Borrower
(“Borrower’s Architect”) certifying to Lender that: (1) the Plans and Specifications
to the Project comply, in all material respects, with all Development Requirements and
Project Agreements; (2) if the Project is constructed in accordance with the Plans and
Specifications, the Project will comply with all applicable Development Requirements and
Project Agreements; (3) all permits, licenses and approvals necessary for construction and
completion of the Project have been issued by all environmental protection and other
governmental agencies as having jurisdiction over the Project or will be obtained by
Borrower prior to the date Borrower takes any actions requiring the same to be obtained; and
(4) adequate ingress and egress to the Premises is available over public streets, rights of
way or perpetual easements.

     (d) UCC Searches. Uniform Commercial Code searches made within a reasonable
time period before closing in the Office of the Maine Secretary of State with respect to all
names used by LBO. Such searches must show no filings relating to the Premises other than
those made hereunder or no filings which are objectionable to Lender.

     (e) Entity Documents. Such documents and instruments as Lender may reasonably
require with respect to the valid existence and authorization of Borrower and LBO.

     (f) Environmental Audit. Lender shall be furnished such evidence as it deems
appropriate to establish that the Premises (including underlying groundwater and areas
leased to tenants, if any), and the use and operation thereof, are currently in compliance
with all applicable Environmental Laws (hereinafter defined), including, without limitation,
a Phase I Environmental Site Assessment of the Project and surrounding property, conducted
by an environmental auditor or engineer acceptable to Lender (the “Environmental
Assessment”), certified to Lender, disclosing no matters unsatisfactory to Lender and
including copies of such tests and reports as Lender may reasonably require (including soil
boring tests and water samples).

     (g) Construction and Architectural Agreements. Prior to any Lender’s advance
for Construction Costs of the Project, to the extent that the Borrower or LBO has contracted
for such services, Lender shall be provided certified copies of any such Construction
Contract, and, if requested by Lender, all subcontracts in excess of $250,000.00, together
with evidence satisfactory to Lender that the Construction Contract includes all work and
materials necessary for completion of the Project.

     (h) Plans and Specifications. Lender shall be provided copies of all of the
plans and specifications for the Project showing the location thereof, including, without
limitation, preliminary development plans and final construction plans, specifications and

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working drawings, with such changes thereto as Lender or its separate architect, if any
(“Lender’s Architect”), may reasonably request (all of said plans and
specifications, as approved by Lender being herein called the “Plans and
Specifications”). Without limitation of the foregoing, Borrower will deliver to Lender
evidence satisfactory to Lender that all governmental authorities, including, without
limitation, development agencies and offices having jurisdiction over the Premises (and
whose approval of the Project portion of the Plans and Specifications is required) have
approved the Plans and Specifications and that the Project portion of the Plans and
Specifications complies with the Project Agreements, if any.

     (i) Project Budget. Prior to the first advance for Construction Costs of the
Project, the Project Budget.

     (j) Fees and Expenses. Borrower shall have paid the fees and expenses
referenced in Section 3.8 below.

     (k) Other Documents. Such other documents and instruments as Lender may
reasonably require.

     2.3. Request for Advances. In addition to each and every covenant, condition,
agreement and requirement to be performed hereunder by Borrower, as a condition to Lender’s
obligation to make any disbursements hereunder from time to time, Lender shall be furnished with
the documents and instruments specified below (herein sometimes referred to collectively as a
“Request for Advance”), each such document and instrument to contain such information and
be in form and substance reasonably satisfactory to Lender as of the time submitted by Borrower.
Each such document and instrument shall be duly completed, signed and sworn to by the party or
parties required to execute same.

     (a) Application For Advance. Lender’s standard form of “Application For
Advance” certified by Borrower (if required by Lender, also certified by the general
contractor for the Project) to Lender, specifying by name, address and amount all parties
who have provided, or to whom Borrower is obligated for providing labor, materials or
services for the construction of the Improvements, and all other expenses incident to the
Loan, the Project or the construction of the Improvements, whether or not specified in the
Project Budget, and requesting a disbursement of proceeds of the Loan for the payment of
such items.

     (b) Borrower’s Affidavit and Statement. A “Borrower’s Affidavit and Statement”
from Borrower to Lender certifying that all statements, invoices, bills and other expenses
incident to the construction of the Project incurred to the date of such certificate,
whether or not specified in the Project Budget, have been paid in full, except for any
retainages and items to be paid pursuant to the proposed Request for Advance.

     (c) Waivers. Waivers and releases of lien on forms approved by Lender and the
Title Company from the Construction Company, if applicable, and each materialman, contractor
and subcontractor who has done work or furnished materials for construction of the Project
as set forth in each Application For Advance (together with copies of

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invoices, vouchers and other supporting documentation relating to amounts for which
payment is requested and which are not included in the Contractor’s draw request) and such
sworn statements, affidavits, indemnities, bonds and other documents or instruments as may
be required by Lender.

     (d) Title Endorsements. Continuation and date-down endorsements to the Title
Insurance Policy insuring the priority of the Mortgage for the full amount theretofore and
then being advanced as a valid first lien on the Premises as of the date of, and including
the amount covered by, each such endorsement.

     (e) Architect’s Certificate. An Architect’s certificate executed by Borrower’s
Architect, if applicable, certifying with respect to those matters deemed necessary by
Lender regarding the items to be paid pursuant to the applicable Request for Advance, the
current status of the construction of the Improvements, the current accuracy of the Project
Budget and such other matters as Lender deems relevant to the proposed Request for Advance.

     (f) Other Documents. Such other documents, instruments, certifications and
information as may be reasonably required by Lender.

     2.4. Completion Documents. In addition to each and every other condition hereof, upon
completion of the construction of the Project, Lender will be furnished with the following
documents:

     (a) Final Waivers. Upon completion of the Project, if requested by Lender,
final waivers and releases of lien on forms specified by the Title Company and approved by
Lender from the Construction Company and each materialman and contractor who has done work,
performed services or furnished materials for construction of the Improvements or the
Project.

     (b) Final Occupancy. If applicable, final certificate(s) of occupancy covering
the completed Project, or other written evidence that the applicable authorities of the City
have approved the occupancy of the related Improvements.

     (c) Construction. Such certificates or other evidence as may be required by
Lender evidencing that the Project has been completed in a good and workmanlike manner in
accordance with the requirements of this Agreement, the Development Requirements and the
Project Agreements.

ARTICLE III

FURTHER COVENANTS, CONDITIONS AND AGREEMENTS

     Borrower hereby further covenants, warrants and agrees with Lender as follows:

     3.1. Construction of the Improvements. Borrower shall cause construction of the
Project to be prosecuted with diligence in a good and workmanlike manner, substantially in
accordance with the Plans and Specifications and all building, zoning and other applicable

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governmental laws, statutes, ordinances, regulations, rules, permits and requirements
affecting the Premises.

     3.2. Correction of Construction Defects. Borrower will, at its own expense, remedy in
a manner satisfactory to Lender such portions or aspects of the construction of the Premises as
Lender may reasonably determine are not in compliance (in all material respects) with the Plans and
Specifications, or any applicable governmental laws, ordinances, statutes, rules and regulations.
Any disputes as to compliance will be initially submitted for resolution to Borrower’s Architect
and Lender’s Architect.

     3.3. Inspections. Borrower will permit, and will cooperate with Lender in arranging
for, inspections from time to time of the Premises during normal business hours by Lender’s
Architect or by any other representatives of Lender. In the event that Lender’s Architect or other
representatives furnish Lender with reports covering such inspections Lender may, but is not under
any obligation whatsoever to, furnish Borrower with copies of any of said reports. Borrower
further acknowledges and agrees that neither Lender nor Lender’s Architect, representatives, agents
or contractors shall be deemed to be in any way responsible for any matters related to design or
construction of the Improvements.

     3.4. Maintenance. Borrower shall keep and maintain the Premises in good order,
condition and repair in all material respects and will make, as and when the same shall become
necessary, all structural and non-structural, exterior and interior, ordinary and extraordinary,
foreseen and unforeseen, repairs and maintenance as necessary or appropriate. Borrower will suffer
or commit no waste to the Premises or any portion thereof. Borrower will, at its expense, promptly
repair, restore, replace or rebuild any part of the Premises which may be damaged or destroyed by
any casualty or as the result of any taking under the power of eminent domain. Borrower shall
cause all repairs, maintenance, rebuilding, replacement and/or restoration to be (in the opinion of
Lender) of equivalent quality. Except as provided in this Agreement, Borrower will not cause,
suffer or permit the construction of any buildings, structures, or improvements on the Premises
without the prior written consent of Lender to the proposed construction as well as to the plans
and specifications relating thereto. After completion, none of the buildings, structures, or
improvements erected or located on the Premises shall be removed, demolished or substantially or
structurally altered in any material respect without the prior written consent of Lender, except
for replacement of worn out or obsolete improvements.

     3.5. Compliance with Laws. Borrower will comply in all material respects with all:
(a) building, zoning, fire, health, environmental and use laws, codes, ordinances, rules, and
regulations; (b) covenants and restrictions of record; (c) easements which are in any way
applicable to the Premises or any part thereof or to the construction of any improvements thereon
and the use or enjoyment thereof; and (d) the Project Agreements.

     3.6. Performance of Agreements. Borrower will duly and punctually perform, observe and
comply with all of the terms, provisions, conditions, covenants and agreements on its part to be
performed, observed and complied with hereunder and under the: (a) Loan Documents; (b) the Project
Agreements; and (c) any other documents, instruments and agreements delivered by Borrower in
connection herewith or pursuant hereto; and will not suffer or permit any default or Event of
Default to exist under any of the foregoing. Borrower will not materially modify,

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materially amend, terminate or waive any material provisions or conditions of any of the
Project Agreements or any other documents, instruments and agreements delivered by Borrower in
connection herewith or pursuant hereto without Lender’s prior written consent.

     3.7. Inspection of Records. Borrower will allow Lender, its representatives or
agents, at any time during normal business hours, access to the records and books of account,
including any supporting or related vouchers or papers, kept by or on behalf of Borrower, its
representatives or agents, in connection with the Premises, such access to include the right to
make extracts or copies thereof.

     3.8. Fees and Expenses. Borrower shall pay all registration and recording fees, title
insurance fees, escrow fees and costs of surveys. Borrower shall also pay, on demand by Lender,
all reasonable costs and expenses associated with underwriting, closing, monitoring the building
construction or funding the proceeds of the Loan (but specifically excluding Lender’s attorneys’
fees), together with any and all other out-of-pocket costs, expenses and fees (including, without
limitation, appraisal costs and fees, Lender’s independent consulting engineer’s/architect’s costs,
expenses and fees throughout the term of the Loan, other construction and environmental
consultant’s costs and fees, and closing work, and any other costs, expenses and fees in connection
with this transaction) incurred by Lender in connection with the Loan (whether or not the same
closes or is ever disbursed).

     3.9. Change Orders. Borrower will not cause or allow any deviations from the approved
Plans and Specifications without the prior written consent of Lender, except in connection with
Change Orders (hereinafter defined) not requiring Lender’s approval as provided below. No extra
work or materials shall be ordered or allowed and no change shall be made in the Construction
Contract (all such extra work or materials and changes in the foregoing types of contracts being
herein called “Change Orders”) without the prior written consent of Lender, except that
such written consent shall not be required with respect to individual Change Orders entered into
prior to the date hereof, or involving a cost of less than $100,000.00 until the aggregate costs
reflected by all Change Orders theretofore issued and not consented to by Lender exceed $100,000.00
at any time. Lender shall be furnished with copies of all Change Orders and pending Change Orders
issued whether or not Lender’s prior written consent with respect thereto has been required
hereunder or obtained pursuant hereto. Without limitation of the foregoing, in the event any such
Change Orders shall be made, extra work or materials shall be ordered or allowed or any change to
the Plans and Specifications is made, to the extent the portion of the Loan budgeted for such work
in the Project Budget is, in Lender’s reasonable judgment, insufficient to cover the same, Borrower
shall advance funds sufficient (in Lender’s reasonable judgment) to cover any excess costs
resulting from such Change Orders, extras or changes.

     3.10. Use. Borrower will not make, suffer, or permit, without the prior written
consent of Lender, any use of the Premises for any purpose other than that specified herein.

     3.11. Transfer Restrictions. Borrower, without the prior written consent of Lender
(which consent may be withheld in Lender’s sole discretion), shall not mortgage, lease, grant a
security interest in, assign, sublease, sell, transfer, pledge or otherwise dispose of or further
encumber, whether by operation of law or otherwise, any legal or equitable interest in any or all
of the Premises, the rents, issues or profits therefrom, or the contracts, agreements, permits,

13

 

licenses or other documents, rights or interests pledged or assigned to Lender in connection
with the transactions contemplated herein. Without the prior written consent of the Lender (which
consent may be withheld in Lender’s sole discretion), the Borrower shall not incur a change in its
ownership. The foregoing prohibitions in this Section are hereinafter referred to as a
“Prohibited Transfer”.

     3.12. Borrower’s Deposit. If Lender’s Architect or Lender (based upon information
provided by Lender’s Architect) at any time determines that for any reason the undisbursed proceeds
of the Loan shall be less than the amount necessary, in Lender’s reasonable judgment, to pay for
all work done and to be done and all other costs and expenses for completion of construction of the
Project as shown by the then current Project Budget, and Borrower’s undertakings hereunder,
including, without limitation, interest on the Note; as a condition precedent to Lender’s
obligation to disburse any further proceeds of the Loan, Borrower will, within ten (10) days after
written request by Lender, deposit any such deficiency in cash (or other security satisfactory to
Lender) with Lender, which deposit shall first be exhausted before any further disbursement of the
Loan shall be made. Any amounts deposited by Borrower hereunder to pay any such deficiency shall
be deposited in a cash collateral account with Lender, subject to a security interest in favor of
Lender, shall not bear interest and shall be applied by Lender as Lender shall direct to pay costs
and expenses in connection with the Project. If an Event of Default shall occur and be continuing,
Lender, in addition to all other rights which it may have, shall have the unconditional right, at
its option, to apply, in whole or in part, any amounts deposited by Borrower with Lender with
respect to such deficiency, to the payment of the Loan in such order and priority as Lender shall
deem appropriate.

     3.13. Management. Borrower will not change its management arrangement with respect to
the Premises without Lender’s prior written consent.

     3.14. Nature of Business. Borrower covenants and agrees that it shall not: (a)
fundamentally change the general character or nature of its business as conducted at the time of
this Agreement; (b) engage in any type of business not reasonably related to its business as
presently conducted; (c) merge or consolidate into or with, or convey or sell all or substantially
all of its assets to, any other person or entity, without the prior written consent of Lender; or
(d) change its form or state of incorporation without giving at least thirty (30) days’ prior
written notice to Lender of such change.

     3.15. Maintenance of Existence; Fundamental Changes. Borrower covenants and agrees
that it shall preserve and maintain its corporate existence, franchises and privileges in its
jurisdiction of incorporation, and qualify and remain qualified as a foreign corporation in each
jurisdiction where such qualification is necessary and the failure to be so qualified would
materially adversely affect the business of Borrower.

     3.16. Borrowings and Lease Expenditures. Borrower covenants and agrees that it shall
not create, incur, assume, or suffer to exist any liability for borrowed money or under capital
leases, except (i) liability for borrowed money owed to Lender, (ii) purchase money obligations
outstanding on the Closing Date and reflected on Borrower’s most recent financial statements that
are secured by purchase money collateral only, and (iii) obligations under capital leases
outstanding on the Closing Date and reflected on Borrower’s most recent financial statements.

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ARTICLE IV

AGREEMENT TO LEND

     4.1. Commitment of Lender. On the basis of the covenants, agreements, warranties and
representations of Borrower contained in this Agreement and subject to the terms and conditions
herein set forth herein, Lender agrees to lend to Borrower a sum not to exceed $15,700,000.00. The
proceeds of the Loan shall be disbursed by Lender as herein provided for the payment of the
Construction Costs and costs incurred by Borrower in acquiring the stock of LBO, all as set forth
in the then approved Project Budget and the performance of Borrower’s obligations under this
Agreement.

     4.2. Conditions Precedent to Initial Disbursement. Lender shall have no obligation to
make the first disbursement (the “Initial Disbursement”) of the proceeds of the Loan until
Borrower has satisfied all other requirements and conditions precedent contained herein for any
disbursement of any proceeds of the Loan.

     4.3. Additional Conditions Precedent to Subsequent Advances. The following are
additional conditions precedent to any obligation of Lender to make any disbursement of the
proceeds of the Loan:

     (a) Performance. The continued performance, observance and compliance in all
material respects by Borrower of and with all of the warranties, covenants and agreements of
Borrower contained herein (whether or not non-performance constitutes an Event of Default).

     (b) Contractor. Lender shall maintain the following approval rights with
respect to any contractor that provides work in connection with the Project: (i) the right
to approve identity of any general contractor in charge of constructing the Improvements;
(ii) such general contractor’s completion, performance and payment bonds and contractor’s
insurance; and (iii) the terms and conditions of the construction contract between Borrower
and such general contractor, and the form of assignment (with consent) of such construction
contract.

     (c) Architect. If Borrower desires to use an architect in connection with the
Project, Borrower must obtain Lender’s prior approval of the identity of the architect for
the Project (and such architect’s professional liability insurance coverage) and the terms
and conditions of the contract between Borrower and such architect, and the form of
assignment (with consent) of such contract.

     (d) Defaults, Condemnations, Actions, Forfeitures, Bankruptcy, Adverse Change or
Casualty. Lender shall not be obligated to make further disbursements of Loan proceeds
if: (i) an Event of Default shall have occurred and be continuing under the Loan Documents;
(ii) any Condemnation has been commenced or threatened with respect to the Premises, the
Easements, or any interest therein or any part thereof which, if prosecuted to completion,
would have a material adverse effect on the ability to construct or operate the Project;
(iii) any Legal Prohibition exists the effect of which is to prohibit, enjoin (or to
declare, unlawful or improper) or otherwise materially adversely affect, in

15

 

Lender’s judgment, the performance by any party of its obligations hereunder or as
contemplated hereby; (iv) Lender has reasonable cause to believe that the Project might be
subject to forfeiture under any federal or state law, including without limitation, the
Racketeer Influenced and Corrupt Organizations Act of 1970, for which forfeiture of assets
is a potential penalty (a “Forfeiture Law”); or (v) any Bankruptcy (hereinafter
defined) shall occur.

     4.4. Use of Advances. In addition to, and without limitation of any other term and
provision hereof relating to disbursements by Lender for any category contained in the Project
Budget, it is expressly understood and agreed that the Project Budget reflects by category the
purposes for which funds advanced hereunder are to be used, and Lender shall not be required to
disburse for any category or purpose more than the amount specified therefor in the Project Budget.
Borrower warrants and agrees that the proceeds of the Loan will be used only to the extent
necessary for the payment of items referenced in the Project Budget in accordance with the
applicable Request for Advance and for no other purpose. Except to the extent permitted under
Section 4.9 below, Borrower may not reallocate amounts shown in the Project Budget to
different categories thereon without Lender’s prior written consent.

     4.5. Construction Advances. Subject to the satisfaction of the terms and conditions
herein contained, subsequent disbursements of the Loan will be made monthly by Lender to Borrower,
it being understood that in no event shall Lender be required to make more than one (1)
disbursement in a calendar month. As a condition to making each advance hereunder, Lender shall be
given a Request for Advance satisfying the requirements set forth in Section 2.3 hereof at
least ten (10) banking business days prior to the anticipated date of the disbursement of funds.
With respect to the final advance for the Project, such Request for Advance shall also be
accompanied by the documents called for in Section 2.4 hereof. Each advance hereunder
shall be made at the office of Lender at its address specified in Section 8.7. Lender, at
its option, may (i) disburse funds directly to Borrower or directly to the Construction Contractor
or any subcontractor, supplier, laborer or materialman or (ii) make disbursements through an escrow
established by Borrower and Lender for such purpose with the Title Company.

     4.6. Retainage. Unless waived or otherwise agreed in writing by Lender for any
particular contract or subcontract, the Construction Contract shall require a retainage (a
percentage of the Contract Price) reasonably acceptable to Lender, which retainage shall not be
required to be paid until at least thirty (30) days after the Project is completed. Lender shall
retain a portion of each disbursement of the Loan proceeds equal to the retention percentage and
Lender, at Lender’s option, may release some or all of such retainage earlier than final completion
of the Project. In no event shall Lender be required to advance any funds with respect to the
retainage provided for in the Construction Contract or any subcontract until such time as Borrower
has actually paid or is required to pay the amount of such retainage pursuant to the terms of the
applicable contract or subcontract.

     4.7. Interest on the Note. Borrower hereby irrevocably authorizes and directs Lender
to disburse Loan funds for payment of interest under the Note, if not paid by Borrower when due,
directly to itself by journal entry without further authorization by Borrower. All such amounts
shall be evidenced by the Note and secured by the Deed of Trust and all of the other Loan
Documents.

16

 

     4.8. Payment of Note. Upon the payment of the Note and the release of the Mortgage,
Lender shall have no further obligation to disburse any Loan proceeds hereunder.

     4.9. Budget Reallocations. The Project Budget shall not be revised, supplemented or
amended without Lender’s prior written consent; provided, however, that if the proposed revisions,
supplements or amendments do not affect the aggregate figures set forth in the Project Budget,
Borrower may, without Lender’s prior written consent, (i) reallocate the amounts of specific cost
categories in either such budget to other cost categories in such budget if the reallocation does
not amount to a ten percent (10%) or greater change in the original amount of the reallocated cost
category, (ii) reallocate cost savings under one cost category to any other cost category and (iii)
use funds from the contingency reserve to cover overages under any cost category. Upon the
occurrence of an Event of Default, Lender may allocate any cost category on the Project Budget for
any other cost category.

     4.10. Storage of Materials. Subject to the Project Budget, Lender shall make
disbursements of the Loan to pay for Construction Costs actually incurred by Borrower for stored
materials required in connection with the construction of the Project, provided that: (a) such
materials are in accordance with the Plans and Specifications approved by Lender; (b) such
materials are securely stored, properly inventoried, and clearly stenciled or otherwise marked to
indicate that they are the property of Borrower; (c) such materials, if stored off-site, are stored
in a bonded warehouse or with a contractor, materialman or fabricator who bears the risk of loss
until delivery and installation of such materials in the Project as part of the work in place, and
who has, if requested by Lender, supplied a bond securing such contractor’s, materialman’s or
fabricator’s obligation to so deliver and install, such bond shall be issued by a company, in an
amount and in form and substance satisfactory to Lender and shall name Lender as a dual obligee;
(d) the bills of sale and contracts under which such materials are being provided shall be, if
requested by Lender, in form and substance satisfactory to Lender; (e) such materials are insured
against casualty, loss and theft in a manner satisfactory to Lender; (f) Borrower owns such
materials free and clear of all liens and encumbrances of any nature whatsoever and establishes
such ownership by evidence satisfactory to Lender; and (g) Borrower executes and delivers to Lender
such additional security documents as Lender shall reasonably deem necessary to create and perfect
a first lien in such materials as additional security for the Note.

     4.11. No Waiver, Borrower’s Continuing Obligations. No advance or disbursement
hereunder shall constitute a waiver of any condition precedent to the obligation of Lender to make
any further advance or disbursement hereunder or preclude Lender from thereafter declaring the
failure of the Borrower to satisfy such condition precedent to be an Event of Default. The making
of an advance or disbursement hereunder shall not be deemed an approval or acceptance by Lender of
any work or material theretofore completed, installed or delivered. Borrower agrees that Lender’s
refusal to advance funds under the provisions of this Agreement shall not alter or diminish any of
Borrower’s other obligations hereunder or prevent any failure of Borrower to perform any of its
obligations from becoming an Event of Default.

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ARTICLE V

INTENTIONALLY DELETED

ARTICLE VI

EVENTS OF DEFAULT; REMEDIES

     6.1. Each of the following shall constitute an “Event of Default” under this
Agreement:

     (a) Failure to Pay. Borrower shall fail to pay, within three days of when due
following receipt of written notice from Lender (whether at maturity or by acceleration or
as part of any prepayment or otherwise), any installment of principal or interest on the
Note or any other payment required under any Loan Document; or

     (b) Failure to Perform. Borrower fails to comply with, keep or perform any of
its undertakings, covenants, its other obligations, agreements, conditions or warranties
under any of the Loan Documents (other than a failure described in Section 6.1(a)),
and such failure continues for a period of thirty (30) days after notice thereof to
Borrower; or

     (c) Incorrect Representation. Any representation, warranty, covenant or
certification made in or pursuant to this Agreement by Borrower, or otherwise made in
writing in connection with or as contemplated by this Agreement by Borrower, including,
without limitation, as to Borrower’s financial condition or credit, shall be misleading,
incorrect or false in any material respect as of the time made or furnished and Lender shall
have provided five (5) days prior written notice to Borrower of the existence of a
misleading, incorrect or false representation; or

     (d) Prohibited Transfers. The occurrence of any Prohibited Transfer; or

     (e) Liens. Any Lien or notice of a Lien is filed or served against Borrower or
the Premises and remains unsatisfied for a period of ten (10) days after the date of filing
thereof, unless bonded in a manner satisfactory to Lender and Title Company; or

     (f) Junior Financing. Borrower enters into any secondary or additional
financing agreements or arrangements of any kind whatsoever with respect to the Premises
(including, without limitation, any financing secured, in whole or in part, by all or any
part of or interest in the Premises) without the prior written consent of Lender; or

     (g) Adverse Rezoning. The Premises (or any portion thereof) is rezoned (except
for such rezoning as does not adversely affect the use of the Premises), either voluntarily
or involuntarily, or any agreement for any of the foregoing is entered into, without the
prior written consent of Lender; or

     (h) Injunctions. Any order or decree is entered by any court of competent
jurisdiction directly or indirectly enjoining or prohibiting Lender, Borrower or the
Construction Company, or any of them, from performing any of their obligations under

18

 

this Agreement, and such order or decree is not vacated, and the proceedings out of
which such order or decree arose are not dismissed, within sixty (60) days after the
granting of such decree or order; or

     (i) Bankruptcy. Borrower: (i) makes an assignment for the benefit of
creditors; (ii) petitions or applies to any court for the appointment of a trustee or
receiver for itself or for any substantial part of its assets or for the Premises or any
portion thereof, or commences any proceedings under any bankruptcy, arrangement, insolvency,
readjustment of debt or reorganization statute or law of any jurisdiction, whether now or
hereafter in effect; (iii) if any such petition or application is filed or any such
proceedings are commenced, and Borrower, by any act indicates any approval thereof, consent
thereto, or acquiescence therein; (iv) an order is entered appointing any such trustee or
receiver, or adjudicating Borrower, bankrupt or insolvent, or approving the petition in any
such proceeding; or (v) if any petition or application for any such proceeding or for the
appointment of a trustee or receiver is filed by any third party against Borrower, or its
assets or the Premises, or any portion thereof, and any of the aforesaid proceedings is not
dismissed within sixty (60) days of its filing; (all of the forgoing are herein collectively
referred to as a “Bankruptcy”); or

     (j) Compliance with Laws. Borrower fails to comply with (or to bond or
indemnify Lender to its satisfaction with regard to) any material requirement (including,
without limitation, compliance with all applicable zoning, building, health, fire and
environmental laws, rules, regulations and ordinances) of any governmental authority having
jurisdiction within thirty (30) days after such Borrower has a notice of such requirement;
or

     (k) Project Agreements. (i) Borrower fails in any material respect to comply
with, keep or perform any of its obligations, covenants, warranties, agreements or
undertakings under any of the Project Agreements, or any Tenant Lease; (ii) Borrower suffers
any condition to exist which would provide a basis for any other party to any of the
foregoing to terminate its obligations thereunder or to declare a default thereunder, and
such failure or the existence of such condition continues beyond any applicable grace or
cure period; or (iii) any of the material Project Agreements is terminated for any reason
without the prior written consent of Lender; or

     (l) New Taxes. The imposition of a tax (other than a state or federal income
tax) upon or payable by Lender by reason of its ownership of any of the Loan Documents, if:
(i) Borrower has not paid said tax within thirty (30) days after delivery of a tax bill
therefor and demand by Lender; (ii) it would be illegal for Borrower to pay said tax; or
(iii) the payment of said tax by Borrower would result in violation of the usury laws of any
state which are applicable hereto; or

     (m) Forfeitures. The filing of formal charges, by any governmental or
quasi-governmental entity, including without limitation, the issuance of an indictment,
under a Forfeiture Law against Borrower; or

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     (n) Deviation from Plans and Specifications. The occurrence, without Lender’s
prior written consent thereto, of any material deviation in the construction of the Project
from the Plans and Specifications approved by Lender (as modified by allowed change orders);
or

     6.2. Remedies. Upon the happening of any Event of Default, Lender shall have the
right, in addition to all the remedies conferred upon Lender by law or equity or the terms of any
Loan Document, to do any or all of the following, concurrently or successively, without notice to
Borrower:

     (a) Acceleration. Declare to be, and the Note shall thereupon become,
immediately due and payable without presentment, demand, protest or notice of any kind
(other than notice of acceleration), all of which are hereby expressly waived, anything
contained herein or in the Note to the contrary notwithstanding; or

     (b) Cessation of Advances. Immediately terminate Lender’s obligations under
this Agreement to extend credit of any kind or to make any disbursement, whereupon the
commitment and obligation of Lender to extend credit or to make disbursements hereunder
shall terminate; or

     (c) Completion of Project. Enter upon and take possession of the Premises and
all material, equipment and supplies thereon and do anything necessary or desirable to
complete the construction of the Improvements and to fulfill the obligations of Borrower
hereunder and to sell, manage, maintain, repair and protect the Project. Without
restricting the generality of the foregoing and for the purposes aforesaid, Borrower hereby
appoints and constitutes Lender its lawful attorney-in-fact with full power of substitution:
(i) to pay, settle or compromise all existing bills and claims which may be liens or
security interests against the Premises or any fixtures or equipment thereon, or as may be
necessary or desirable for the clearance of title or otherwise; (ii) to use any funds of
Borrower, including any Loan balance which might not have been disbursed for the purpose of
completing construction of the Improvements; (iii) to execute all applications and
certificates in the name of Borrower which may be required to carry out the intent and
purpose hereof; (iv) to employ such contractors, subcontractors, architects and others as
Lender may deem appropriate; (v) to do any and every act which Borrower might do on its own
behalf, including, without limitation, to enter into leases of any portion of the Premises;
and (vi) to prosecute or defend any and all actions or proceedings involving the Premises or
any fixtures, equipment or other installations thereon; it being understood and agreed that
this power of attorney is coupled with an interest and cannot be revoked. Lender and its
designees, representatives, agents, licensees and contractors shall be entitled to the
entry, possession and use contemplated herein without the consent of any party and without
any legal process or other condition precedent whatsoever. Borrower acknowledges that any
denial of such entry, possession and use by Lender will cause irreparable injury and damage
to Lender and agrees that Lender may forthwith sue for any remedy to enforce the immediate
enjoyment of such right. Borrower hereby waives the posting of any bond as a condition for
granting such remedy.

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     (d) Fees and Expenses. In the event of the occurrence of any Event of Default
hereunder, to the extent permitted by law, Borrower will pay Lender’s reasonable attorneys
fees and disbursements and court costs (including those relating to appeals) and all related
expenses in connection with the enforcement of this Agreement or any of the Loan Documents.

ARTICLE VII

ADDITIONAL PAYMENTS; ADDITIONAL TERMS OF THE LOAN

     7.1. Additional Payments. In addition to the payments of principal and interest to
be made pursuant to the Note, Borrower shall pay an additional amount to Lender as an additional
payment (the “Annual Additional Payment”) for each Loan Year equal to the 12% (the
“Percentage Rate”) of the Gross Receipts for such Loan Year in excess of an amount equal to
the quotient obtained by dividing the annual interest payments payable under the Note for the
immediately preceding Loan Year by the Percentage Rate. Within 60 days following the end of each
Loan Year, Borrower shall furnish Lender with a statement, verified by a corporate officer of
Borrower, showing the amount of Gross Receipts for the preceding Loan Year, which statement shall
be accompanied by Borrower’s payment of the Additional Payment, if any, is due. The term “Loan
Year” as used in this Agreement shall mean a period of 12 full calendar months. The first Loan
Year shall begin on the first day of the calendar month following the Initial Disbursement. Each
succeeding Loan Year shall commence on the anniversary of the first Loan Year. Notwithstanding the
foregoing, in the event a Trigger Event has occurred (as defined in the Note), then, so long as the
Trigger Event is still occurring at end of each Loan Year the interest rate for the purposes of
calculating the Annual Additional Payment shall be reduced by 100 basis points.

     7.2. Audit Rights. Lender shall have the right, not more often than once each year,
to audit Borrower’s records of Gross Receipts, but only for the purpose of ascertaining the amount
of the Gross Receipts during the preceding Loan Year. Such audit shall be made on behalf of Lender
by a certified public accountant to be selected by Lender. If Lender wishes to audit Borrower’s
records for any Loan Year, Lender shall notify Borrower and proceed with such audit within 12
months after the end of the Loan Year in question. Should Lender fail to exercise the right to
audit the records of Borrower within 12 months after the end of any Loan Year, then Lender shall
have no further right to audit the records of Borrower for such Loan Year, and Borrower’s statement
of Gross Receipts for such Loan Year shall conclusively be deemed to be correct. Any such audit by
Lender shall be at Lender’s own expense, except as hereinafter provided. If any such audit
discloses that Borrower has understated the Gross Receipts for such Loan Year by more than 3% and
Lender is entitled to any additional Annual Additional Payment as a result of such understatement,
then Borrower shall promptly pay to Lender the cost of such audit. Borrower shall, in any event,
pay Lender the amount of any deficiency in Annual Additional Payment.

     7.3. Gross Receipts. The term “Gross Receipts” shall mean: (i) the entire amount of
the price charged, whether wholly or partially in cash or on credit, or otherwise, for all goods,
wares, merchandise and chattels of any kind sold, leased, licensed or delivered (specifically
including without limitation ski lift tickets, golf course green fees, hotel charges), and all
charges

21

 

for services sold or performed in, at, upon or from any part of or through the use of the
Project or any part thereof by Borrower or any other party, or by means of any mechanical or other
vending device; and (ii) all gross income of Borrower, LBO, and any other party from any operations
in, at, upon or from the Project which are neither included in nor excluded from Gross Receipts by
other provisions of this Agreement, but without duplication. Gross Receipts shall not include, or
if included, there shall be deducted (but only to the extent they have been included), as the case
may be, (i) the net amount of cash or credit refunds upon Gross Receipts, where the merchandise
sold or some part of it is returned by the purchaser to and accepted by Borrower (but not exceeding
in any instance the selling price of the item in question); (ii) the amount of any sales tax, use
tax or retail excise tax which is imposed by any duly constituted governmental authority directly
on sales and which is added to the selling price (or absorbed therein) and is paid to the taxing
authority by Borrower (but not any vendor of Borrower); (iii) exchanges of merchandise between the
Project and other ski resorts of Borrower or its Affiliates to the extent the same are made solely
for the convenient operation of Borrower’s business and not for the purpose of depriving Lender of
the benefit of Gross Receipts; (iv) returns of merchandise to shippers, suppliers or manufacturers;
(v) discount sales to employees and agents of Borrower of merchandise not intended for resale; (vi)
all receipts or proceeds from borrowings; (vii) gift certificates or like vouchers, if not issued
for value, until the time they have been converted into a sale or redemption; (viii) income,
revenues, receipts or proceeds from Borrower’s investment of any funds in a deposit institution;
and (ix) separately stated interest and service charges. In addition to the foregoing, the
following shall be deducted form Gross Receipts to the extent otherwise included the calculation
thereof: (a) credits or refunds made to customer; (b) all federal, state, county and city sales
taxes or other similar taxes, (c) all occupational taxes, use taxes and other taxes which must be
paid by Borrower or collected by Borrower, by whatever name they are known or assessed, and
regardless of whether or not they are imposed under any existing or future orders, regulations,
laws or ordinances; and (d) agency commissions paid to independent third parties for selling
tickets and surcharges in excess of the standard ticket price for tickets purchased by use of
credit cards, but only to the extent such commissions or surcharges are actually remitted to
independent third parties.

     7.4. No Further Disbursements. Lender has no obligation to disburse Loan proceeds
after the Maturity Date, even if the Improvements have not been completed. In the event the
Improvements have not been completed, Borrower agrees to complete the Improvements diligently using
Borrower’s own funds. In its sole discretion, Lender may (but is not obligated to) make further
disbursements after the Maturity Date (for example, to pay mechanics’ liens, respond to stop
notices or otherwise preserve its collateral), and all such disbursements will be deemed advances
under the Note secured by the Mortgage.

ARTICLE VIII

MISCELLANEOUS

     8.1. Indemnity. Except to the extent resulting solely from Lender’s gross negligence
or intentional misconduct, Borrower agrees to protect, defend, indemnify and hold Lender harmless
from and against any and all loss, liability, damage, suit, claim, expense, fees and costs
(including, without limitation, any injury or damage to person and/or property occurring on or
about the Premises, any court costs and attorneys’ fees) arising out of or relating to: (a)
Lender’s

22

 

entering into and/or carrying out the terms of this Agreement; (b) Lender’s being the holder
of the Note or the Deed of Trust after Borrower’s default hereunder; (c) the operation or
completion of construction of the Improvements.

     8.2. Protective Advances. Upon the occurrence of any Event of Default hereunder or
under any other Loan Document, then and in any such event, Lender may (but shall in no event be
required to) make any payment or perform any term, provision, condition, covenant or agreement
required of Borrower, and/or cure any such Event of Default. In such event, Lender shall promptly
notify Borrower of the actions taken or amounts expended by Lender. Any amounts expended by Lender
in so doing, or in exercising its rights and remedies hereunder, shall constitute advances
hereunder, the payment of which is additional indebtedness secured by the Loan Documents due and
owing at Lender’s demand, with interest at the Default Rate (as defined in the Note) from the date
of disbursement thereof until fully paid. No further direction or authorization from Borrower
shall be necessary for such disbursements, and all such disbursements shall satisfy pro tanto the
obligations of Lender with respect to the funds so disbursed. The execution of this Agreement by
Borrower shall and hereby does constitute an irrevocable direction and authorization to Lender to
so disburse such funds and make such performance.

     8.3. Assignments.

     (a) Lender. Lender may assign, negotiate, pledge or otherwise hypothecate all
or any portion of this Agreement or grant participations herein, or in any of its rights and
security hereunder, including, without limitation, the Mortgage and the Note and, in case of
such assignment, Borrower will accord full recognition thereto and agree that all rights and
remedies of Lender in connection with the interest so assigned shall be enforceable against
Borrower by such assignee with the same force and effect and to the same extent as the same
would have been enforceable by Lender but for such assignment. In connection with any such
assignment, participation or other transfer, Borrower agrees that Lender may deliver copies
to any potential participant or other transferee of all documents, instruments, financial
statements and other information from time to time furnished to Lender pursuant hereto or in
connection therewith. Notwithstanding anything in this Section to the contrary, prior to the
time the Loan is fully funded, Lender shall remain the lead lender and shall remain
obligated to Borrower to fund the Loan (or to cause the Loan to be funded). From and after
the date the Loan is fully funded, the Loan and all Loan Documents may be assigned by
Lender, without Borrower’s consent, or Lender may sell participation interests in the Loan,
to one or more institutional lenders, who shall succeed to Lenders rights, duties and
obligations with respect to the Loan.

     (b) Borrower. Borrower shall not assign, attempt to assign or suffer the
assignment of its rights under this Agreement, either voluntarily or by operation of law,
without the prior consent of Lender.

     8.4. Lender’s Actions. Any authority herein conferred upon Lender and any action
taken by Lender hereunder are only for Lender’s own protection, and Lender does not and shall not
be deemed to have assumed any responsibility to Borrower or to any other person or persons with
respect to any such action herein authorized or taken by Lender. No person shall be entitled

23

 

to rely upon, or claim to have relied upon, any action taken or failed to have been taken by
Lender or any of its representatives.

     8.5. Time is of the Essence. Time is of the essence of this Agreement.

     8.6. Waivers. No waiver of any term, provision, condition, covenant or agreement
herein contained shall be effective unless set forth in a writing signed by Lender, and any such
waiver shall be effective only to the extent set forth in such writing. No failure by Lender to
exercise, or delay by Lender in exercising, any right, power or privilege hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege
hereunder preclude any other or further exercise thereof, or the exercise of any other right or
remedy provided by law. No notice or demand on Borrower in any case shall, in itself, entitle
Borrower to any other or further notice or demand in similar or other circumstances or constitute a
waiver of the rights of Lender to any other or further action in any circumstances without notice
or demand.

     8.7. Notices. Any notice which any party hereto may be required or may desire to give
hereunder shall be deemed to have been given if in writing and delivered personally or if mailed,
postage prepaid, by United States registered or certified mail, return receipt requested, addressed
in the case of Borrower to:

Peak Resorts, Inc.

17409 Hidden Drive

Wildwood, Missouri 63025

Attn: Stephen Mueller

with a courtesy copy to:

David Jones, Esq.

Helfrey Neiers & Jones PC

120 S Central Ave Ste 1500

Saint Louis, MO 63105-1796

in the case of Lender to:

EPT Mount Attitash, Inc.

c/o Entertainment Properties Trust

30 West Pershing Road, Suite 201

Kansas City, MO 64108

with a courtesy copy to:

Timothy Laycock, Esq.

Stinson Morrison Hecker LLP

1201 Walnut Street, Suite 2600

Kansas City, Missouri 64106-2150

24

 

or to such other address or addresses as the party to be given notice may have furnished in writing
to the party seeking or desiring to give notice, as a place for the giving of notice, provided that
no change in address shall be effective until ten (10) days after served or given to the other
party in the manner provided above. Any notice given in accordance with the foregoing shall be
deemed given when delivered personally, or if mailed, two (2) business days after it shall have
been deposited in the United States mails as aforesaid.

     8.8. Successors and Assigns. This Agreement shall inure to the benefit of the parties
and their respective successors and assigns, except that unless Lender consents in writing, no
assignment made by Borrower in violation of this Agreement shall confer any rights on any assignee
of Borrower.

     8.9. No Partnership. Nothing herein, or in the Deed of Trust, the Note or in any
other Loan Document, and no action or inaction whatsoever on the part of Lender, shall be deemed to
make Lender a partner or joint venturer with Borrower, and Borrower shall protect, defend,
indemnify and hold Lender harmless from and against all claims, loss, cost, expense (including
attorneys fees) and damages arising from the relationship between Lender and Borrower being
construed as or alleged to be anything other than that of Lender and Borrower.

     8.10. Form and Substance. All documents and other matters required by any of the
provisions of this Agreement to be submitted or furnished to Lender shall be in form and substance
satisfactory to Lender. Wherever pursuant to this Agreement, Lender exercises any right given to
it to approve or disapprove, or any arrangement or term is to be satisfactory to Lender, the
decision of Lender to approve or disapprove or to decide that arrangements or terms are
satisfactory or not satisfactory shall, except as otherwise provided herein, be in the sole
discretion of Lender and shall be final and conclusive.

     8.11. Further Assurances. Borrower agrees that at any time or from time to time, upon
the written request of Lender, it will execute, and, if required, record, file (and pay all fees,
taxes or other expenses relating thereto) all such further documents and do all such other acts and
things as Lender may reasonably request to effectuate the transaction contemplated herein.

     8.12. Entire Agreement. This Agreement and the Exhibits hereto, and the other Loan
Documents constitute the entire agreement between the parties hereto with respect to the subject
matter hereof and no provision of any Loan Document may be waived, terminated, modified or amended
in any manner other than by supplemental written agreement against whom such waiver, termination,
modification or amendment is sought to be enforced.

     8.13. Severability. If any provisions of this Agreement or the application thereof to
any person or situation shall, to any extent, be held invalid or unenforceable, the remainder of
this Agreement, and the application of such provision to persons or situations other than those to
which it shall have been held invalid or unenforceable, shall not be affected thereby, but shall
continue valid and enforceable to the fullest extent permitted by law.

     8.14. No Third Party Beneficiary. This Agreement is made for the sole benefit of
Borrower and Lender, and no other person shall be deemed to have any privity of contract hereunder
nor any right to rely hereon to any extent or for any purpose whatsoever, nor shall any

25

 

other person have any right of action of any kind hereon or be deemed to be a third party
beneficiary hereunder.

     8.15. Setoff. Without limitation of any other right or remedy of Lender hereunder or
provided by law, any indebtedness now or hereafter owing from Lender to Borrower (including,
without limitation, any amounts on deposit in any demand, time, savings passbook or like account
maintained by Borrower with Lender) may be offset and applied by Lender against any and all amounts
due from any Borrower to Lender hereunder, or under the Note, the Deed of Trust or the other Loan
Documents.

     8.16. Governing Law. This Agreement shall be governed by and construed in accordance
with, the laws of the State of Missouri.

     8.17. Captions. The captions, headings and arrangements used in this Agreement are
for convenience only and do not in any way affect, limit, amplify or modify the terms and
provisions hereof.

     8.18. USA Patriot Act Notice. Lender hereby notifies Borrower, and Borrower hereby
acknowledges, that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56
(the “Act”), Lender is required to obtain, verify and record information that identifies Borrower,
which information includes the name and address of Borrower and other information that will allow
lender to identify Borrower in accordance with the Act.

     8.19. REIT Limitations. At such time as the Lender in this Agreement may be a real
estate investment trust, the following provisions shall apply: anything contained in this Agreement
to the contrary notwithstanding, Borrower shall not sublet or assign the Project or this Agreement
to any person that Lender owns, directly or indirectly (by applying constructive ownership rules
set forth in Paragraph 856(d)(5) of the Internal Revenue Code), a 10% or greater interest within
the meaning of Section 856(d)(2)(B) of the Code.

     8.20. Financial Information. Borrower hereby covenants and agrees to deliver to
Landlord the following: (1) within 90 days after the end of each fiscal year of Borrower and LBO,
consolidated statements of income, retained earnings and cash flows of Borrower and LBO for such
fiscal year and the related consolidated balance sheets as at the end of such fiscal year, setting
forth in each case in comparative form the corresponding consolidated figures for the preceding
fiscal year, and accompanied by an opinion thereon of independent certified public accountants of
recognized national standing, which opinion shall state that such consolidated financial statements
fairly present the consolidated financial condition and results of operations of Borrower and LBO
as at the end of, and for, such fiscal year in accordance with generally accepted accounting
principles; (2) within 45 days after the end of each interim quarterly fiscal period of each fiscal
year of Borrower and LBO, unaudited consolidated statements of income, retained earnings and cash
flows of Borrower and LBO for such period and for the period from the beginning of the respective
fiscal year to the end of such period, and the related consolidated balance sheets as at the end of
such period, setting forth in each case in comparative form the corresponding consolidated figures
for the corresponding periods in the preceding fiscal year (except that, in the case of balance
sheets, such comparison shall be to the last day of the prior fiscal year), accompanied by a
certificate of a financial officer of Borrower and LBO, as

26

 

applicable, which certificate shall state that such consolidated financial statements fairly
present the consolidated financial condition and results of operations of the respective Borrower
and LBO in accordance with generally accepted accounting principles, consistently applied, as at
the end of, and for, such period; (3) within 45 days after the end of each interim quarterly fiscal
period of each fiscal year of Borrower and LBO, unaudited statements of income for such period and
for the period from the beginning of the respective fiscal year to the end of such period in each
case in comparative form the corresponding figures for the corresponding periods in the preceding
fiscal year; (4) within 30 days after the end of each calendar month, an income and expense
statement detailing all sources of revenue, including but not limited to ticket sales, concession
sales and other revenues, and all expenses relating to the Leased Premises, accompanied by a
certificate of a financial officer of Borrower and LBO stating that such items are true, correct,
accurate and completely and fairly present the financial condition and results of the operations of
Borrower and LBO.

     8.21. WAIVER OF JURY TRIAL. BORROWER WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY
ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS (i) UNDER THIS AGREEMENT OR UNDER ANY OTHER
LOAN DOCUMENT OR ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT WHICH MAY BE DELIVERED IN THE
FUTURE IN CONNECTION HEREWITH OR (ii) ARISING FROM ANY BANKING RELATIONSHIP EXISTING IN CONNECTION
WITH THIS AGREEMENT, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT
AND NOT BEFORE A JURY.

     8.22. ORAL AGREEMENTS. ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR
TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT, INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT, ARE
NOT ENFORCEABLE REGARDLESS OF THE LEGAL THEORY UPON WHICH IT IS BASED THAT IS IN ANY WAY RELATED TO
THE CREDIT AGREEMENT. TO PROTECT YOU (BORROWER) AND US (CREDITOR OR LENDER) FROM MISUNDERSTANDING
OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING,
WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US EXCEPT AS WE MAY LATER
AGREE IN WRITING TO MODIFY IT. BY SIGNING BELOW, YOU AND WE AGREE THAT THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN US.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

27

 

     IN WITNESS WHEREOF, the parties hereto have caused this Loan Agreement to be executed by their
duly authorized representatives as of the day, month and year first above written.

	 	 	 	 	 
	 	“LENDER”

EPT MOUNT ATTITASH, INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Gregory K. Silvers
 	 
	 	 	Gregory K. Silvers, Vice President 	 
	 	 	 	 
	 	“BORROWER”

PEAK RESORTS, INC.,

a Missouri corporation

 	 
	 	By:  	/s/ Stephen J. Mueller
 	 
	 	 	Stephen J. Mueller, Vice-President 	 
	 	 	 	 
	 	LBO HOLDING, INC.,

a Maine corporation

 	 
	 	By:  	/s/ Stephen J. Mueller
 	 
	 	 	Stephen J. Mueller, Vice-President 	 
	 	 	 	 

28

 

	 	 	 	 	 

LIST OF EXHIBITS

Exhibit A —       Legal Description

Exhibit B —       Permitted Exceptions

Exhibit C —       Project Budget

29

 

EXHIBIT A

LEGAL DESCRIPTION

Certain tracts or parcels of land, with the buildings and improvements thereon, situated in
Bartlett, County of Carroll, State of New Hampshire, more particularly bounded and
described as follows:

The first three parcels of land are shown as Parcels One, Two and Three on a plan
entitled “Plan of Land for Transfer from Attitash Investment Trust to Bartlett Recreation
Development Corp.” by Robert T. Holloran, Registered Architect, and more particularly
described:

Parcel One: Beginning at a point on the southerly side of Route 302 at the northerly side
of the Maine Central Railroad right-of-way near Rogers Crossing, so-called, and thence
running westerly and southwesterly along the southerly side of Route 302, a distance of
1850 feet to a point; thence turning and running southerly about 220 feet to the
northwesterly side of said Maine Central Railroad right-of-way; thence turning and
running northeasterly along said right-of-way about 1910 feet to the point of beginning.

Parcel Two: Beginning at a point on the northwesterly side of a roadway conveyed to the
Town of Bartlett, shown on said plans as “Road-Town of Bartlett 66’ Way”, opposite the
northeasterly corner of the land shown on said plans as “Alpine Village B” and thence
running northeasterly along the northwesterly sideline of said roadway approximately
800 feet to a point opposite the northwesterly corner of the land shown on said plan as
“Alpine Village A”; thence turning and running northerly about 110 feet to a point on the
southeasterly side of said Maine Central Railroad right-of-way; thence turning and
running southwesterly along the southeasterly sideline of said right-of-way,
approximately 800 feet to a point; thence turning and running southerly about 110 feet to
the point of beginning.

Parcel Three: Beginning at a point on the southeasterly side of Route 302 at the
southwesterly side of said roadway conveyed to the Town of Bartlett and thence running
southwesterly along the southeasterly sideline of said Route 302, a distance of 334 feet to
a point; thence turning and running southeasterly about 220 feet to the northwesterly
sideline of said Railroad right-of-way; thence turning and running northeasterly along the
northwesterly side of said right-of-way, a distance of 334 feet to the said roadway; thence
turning and running northwesterly along the southwesterly sideline of said roadway about
220 feet to the point of beginning.

Parcel Four-A: Beginning at a point on the boundary line between the premises hereby
conveyed and the White Mountain National Forest, marked by a moosewood post in a
mound of stones, scribed Angle W Corner 24, and thence running South
83° 43” East,
bounded southerly by the White Mountain National Forest about 4600 feet to a maple
post in a mound of stones, scribed CC 1911 WSR, CC 120 R, corner 25; thence running
northerly, bounded easterly by the White Mountain National Forest by various courses,

 

 

the straight line distance being about 4158 feet, to a concrete post with a brass cap set
in a mound of stones, scribed CA 355; thence continuing northerly, bounded easterly by land
now or formerly of Garland, along Stony Brook about 900 feet; thence South 59° West, bounded
northwesterly by land now or formerly of Seemann a distance of 1353 feet;
thence running North 3° East, bounded easterly by said land now or formerly of
Seemann, a distance of 957 feet to an iron stake at the southeasterly corner of Lot No. 8
as shown on a plan entitled “Subdivision Plan, Land of Attitash Investment Trust,
Bartlett, New Hampshire” dated June 1, 1963, by said Robert T. Holloran, recorded with
the Carroll County Registry of Deeds; thence running South 83° West, bounded northerly
by Lots No. 8, No. 9, No. 10 and Nos. 27 through 32 inclusive, as shown on last-mentioned
plan, a distance of 1386 feet to an iron stake; thence continuing South 83°
West a distance of 200 feet to the southwesterly corner of the tract shown on said last-mentioned
plan; thence running northerly bounded easterly by said tract (which is labeled
“Alpine Village A” on said first-mentioned plan), a distance of 720 feet, more or less, to
a point on the southerly side of a roadway to be conveyed to the Town of Bartlett shown
on said plan as “Road-Town of Bartlett 66’ Way”; thence running southwesterly by the
southeasterly sideline of said road, approximately 800 feet to a stone bound; thence
running southerly, bounded westerly by said Alpine Village B as shown on said first-mentioned
plan, a distance of 780 feet; thence running southwesterly, bounded
northwesterly by said Alpine Village B to land now or formerly of Curry Associates
and/or White Mountain National Forest; thence running South 4° West, bounded westerly
by said land now or formerly of Curry Associates and/or White Mountain National
Forest, about 4200 feet; thence running South 88° 54’ East, bounded southerly by the
White Mountain National Forest, about 1000 feet to the point of beginning.

The bearings recited in this description follow those of the abutting land of the White
Mountain National Forest. The bearing of the Maine Central Railroad, according to
railroad plans, is North 89° West, based upon a different North coordinate. The
aforementioned roadway conveyed to the Town of Bartlett is parallel to the railroad; the
westerly line of said Alpine Village A forms an angle of 71° with the sideline of said
roadway; and the westerly line of said Alpine Village A and the easterly line of said
Alpine Village B are parallel.

Parcel Four-B

A certain tract or parcel of land situated in Bartlett, County of Carroll, State of New
Hampshire, shown on plan entitled “Plan of Land in Bartlett, N.H. A Portion of Property
of Attitash Investment Trust, Subdivision Plan, Area B”, surveyed by Thaddeus Thorne
and recorded in the Carroll County Registry of Deeds in Plan Book 7, Page 61, which
tract of land is more particularly bounded and described as follows:

Beginning at the northeast corner of the within described premises at land of Attitash
Development Corporation; thence South 18° 30’ West a distance of 965.5 feet, more or
less, to the southeast corner of the within premises; thence turning and running North 89°
West a distance of 1,689.5 feet, more or less, to a stone bound at land now or formerly of
Curry Associates; thence turning and running North 18° 30’ East a distance of 157 feet,

 

 

more or less, by land of Curry Associates; thence turning and running North 89° West a
distance of 35 feet, more or less, to land of Curry Associates; thence turning and
running North 18° 30’ East a distance of 695 feet, more or less, by land of Curry Associates;
thence turning and running South 89° East a distance of 35 feet, more or less, by land
of Curry Associates; thence turning and running North 18° 30’ East a distance of 116.5 feet to
land of the Maine Central Railroad Company; thence turning and running South 89° East by land of
the Maine Central Railroad Company a distance of 1,689.5 feet, more or less, to the point of
beginning.

Meaning and intending to convey all of Area B as shown on said plan.

Parcel Five: Beginning at a point at land now or formerly of
Clinton R. Garland, Sr. and Attitash Development Corporation, said point
being the northwest corner of the tract herein conveyed; thence running South 3° West, a
distance of 957 feet along other land of Attitash Development Corporation to a point; thence
turning and running North 58° East a distance of 1353 feet along other land of said Attitash
Development Corporation to a point on the westerly bank of Stony Brook; thence turning and running
northerly along the westerly bank of Stony Brook a distance of 400 feet, more or less, to a point;
thence turning and running South 83° West a distance of 1155 feet along land of said
Garland to the point of beginning. Together with a right-of-way from this tract to the main
highway, Route 302, twenty-five (25) feet in width, bordered on the East by the westerly bank of
Stony Brook.

Parcel Six: Beginning on the south side of Route 302 at land now or formerly of
Raymond Cannell and running southerly on land of said Cannell to land of the United States
Government; thence running easterly on land of said Government to land formerly of Walter Chandler;
thence running northerly on land formerly of Walter Chandler to the main highway; thence running
westerly on said highway to the bound begun at.

EXCEPTING and RESERVING about two (2) acres previously deeded to Roland F. Gouin.

Parcel
Seven: Beginning at the southwest corner of the conveyed tract of land at land
now or formerly of S. F. Rogers; thence running easterly on land of said Rogers to land owned, now
or formerly, by C. H., W. S. and B. F. George; thence running northerly on
land of said George to an elm tree, spotted and marked; thence running westerly on land of said
George to the east line of the Lloyd L. Hall farm owned, now or formerly, by S. F. Rogers; thence
turning southerly on said Rogers land to bound begun at.

Parcel
Eight: Beginning at a pine tree spotted and marked, the corner of the lot of
land owned, now or formerly, by C. H., W. S., and B. F. George; thence firming southerly on land
now or formerly of S. F. Rogers to land owned by the United States Government; thence running
easterly on the Government land to land owned now or formerly by C. H., W. S. and B.
F. George; thence running northerly on land of said George to a bound; thence running northerly on
land of said George to a bound; thence running westerly on land of said George to the
first-mentioned bound.

 

 

Parcel Nine: Beginning on the south side of Route 302; thence running
southerly on the line of land formerly known as the White Farm to land formerly owned
by Cannell; thence westerly on land formerly of said Cannell to land owned formerly by S. F.
Rogers; thence running northerly on land formerly of said Rogers and said Cannell to
the highway, thence running easterly on said highway to bound begun at.

Parcel Ten: Bounded on the East by land formerly of Frank
Cannell; bounded on the South by land of the United States Government; bounded on the
West by land now or formerly of Clifton R. and Fred L. Garland; bounded on the North by the State
Road, known as Route 302.

EXCEPTING from Parcel Ten, the following:

(1) Lots
No. 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17 and 18 as depicted
on plan entitled “Plan of Land in Bartlett, New Hampshire, Property of
Attitash Development Corp., Phase 1 of Subdivision,” dated December 1973, and
recorded in Plan Book 26, Page 39 of the Carroll County Records; these same lots having been
previously conveyed of record by said Attitash Development Corporation to individual purchasers.

(2) Conveyance
to Cathedral Trail Associates of Condominium Site B.; dated May 3,
1976 and recorded at Book 627, Page 400.

(3) Conveyance to Cathedral Trail Development Corporation dated May 26, 1977, and recorded
at Book 668, Page 424.

(4) Conveyance to Locke Attitash Corporation dated November 1, 1972, and
recorded at Book 526, Page 486.

(5) Conveyance to Bartlett Valley Realty Trust dated March 10, 1978, and
recorded at Book 705, Page 101.

Parcel Eleven-Tract A: Beginning at a point of intersection 227 feet 8 inches distant
from the Smith Estate on the south bank of the Saco River; said point also being the northwest
corner of land now or formerly of Shirley Murphy; thence southerly along the west sideline of land
of said Murphy a distance of 970 feet to an iron stake at the
southwest corner of land of said
Murphy; thence at an approximate right angle in a westerly direction a distance of 227 feet and 8
inches, more or less, to an iron stake; thence at an approximate right angle in a northerly
direction and parallel to the west sideline of the Smith Estate a distance of 970 feet, more
or less, to the point of beginning.

Parcel Eleven-Tract B: A certain tract or parcel of land situate in the Town of Bartlett,
County of Carroll, State of New Hampshire, bounded and described as follows:

 

 

Beginning at the Northwest corner of the within described premises at the bank of the Saco
River, which is also the Northeast corner of land now of Richard Garland; thence along said Saco
River in an Easterly Direction to the Northwest corner of land of Grantee, formerly of
Donald Rogers; thence in a Southerly direction along the Westerly line of land of the Grantee and
parallel to the west line of the land of Richard Garland a distance of nine hundred seventy feet
(970’),more or less, to an iron stake, said point also being the Southwest corner of land of the
Grantee; thence at an approximate right angle in a Westerly direction a distance of two
hundred twenty-seven feet and eight inches (227’8”), more or less, to an iron stake on
the Westerly side of land now of Richard Garland; thence at an
approximate right angle in a Northerly direction a distance of nine hundred seventy feet
(970’),more or less, to the Saco River and the point of beginning.

EXCEPTING from Parcel Eleven-Tracts A and B the premises conveyed by instrument
recorded in Book 1578, Page 26.

Parcel Eleven-Tract C: A certain tract or Parcel of land situated in the
Town of Bartlett, County of Carroll and State of New Hampshire, northerly of and non- adjacent to
Route 302, the same being designated as Tract C on plan entitled “Properties of
Attitash Lift Corp. & Attitash Mountain Service Company (AMSCO), Proposed Boundary
Line Adjustments, Bartlett, New Hampshire” by Thaddeus Thorne-Surveys, Inc. and recorded at Plan
Book 148, Page 18, of the Carroll County Registry of Deeds, bounded and described in accordance
with said plan as follows:

Commencing at an iron pipe which marks the southwesterly corner of the within described
premises and thence running North 17° 36’ 00” East along other land of the
Grantee a distance of 934.62 feet to a point at or near the bank of the Saco River and thence
continuing a few feet to the Saco River;

Thence turning and running easterly along said Saco River as the same trends to a point
opposite an iron pipe at or near the bank of said Saco River (reference line course and distance
along said Saco River being South 53° 29’ 48” East, 231.85
feet);

Thence turning and running South 17° 36’ 00” West a
few feet to last mentioned iron pipe and thence continuing said course along land of
River Run Motel Condominium I a distance of 794.86 feet to an iron pipe;

Thence turning and running North 88° 49’ 20” West along other land of the Grantor a
distance of 228.67 feet to an iron pipe being the point and place of beginning.

Also conveying with the land described as Parcels Eleven, Tracts A, B and
C the right to use a twenty (20) foot right-of-way
in common with the grantor and its successors and assigns, located immediately
to the south of and along the southern boundary of the Parcel herein
conveyed.

Parcel Twelve: Bounded on the East by a sixty-six (66) foot right-of-way adjacent to
land of Boren and land of Mt. Attitash Lift Corporation; on the North by Route 302, land

 

 

of Edward Garland, a tract reserved to Lyman and Bertha Garland, measuring three
hundred (300) feet in depth from Route 302, and land of Cook; on the West by land of
Cook, land of Lucille Garland and land of Mt. Attitash Lift Corporation;
on the South by land of the United States Government.

Parcel Thirteen: All of the land and any buildings or improvements thereon
formerly owned by Harry Rogers and situated in the Town of Bartlett, as conveyed by deed of
Forrester A. Clark to Mount Attitash Lift Corporation, by deed dated November 4, 1977,
recorded at Book 683, Page 15, of the Carroll County Registry of Deeds,
excluding, however, the following tracts with the buildings thereon:

Tract a: Beginning at a point on the northerly side of the Maine
Central Railroad, said bound of beginning being located 132.3 feet from the southeast corner of the dwelling of
Harry Rogers; thence North 7° 18’ East along land of Attitash a distance of 378.3
feet to a point on the top of a banking; thence North 85° 35’ West 248.7 feet along other land of
Attitash to a point on the top of said banking; thence North 62° 16’ West a distance of
211 feet along other land of Attitash to a point on the top of said banking; thence South
12° 02’ West along other land of Attitash to a point on the northerly side of the State
Highway (Route 302); thence easterly along the northerly side of said highway; thence
along the northerly side of said Maine Central Railroad to the bound of beginning.

Tract b: Beginning at an iron pin in the northerly side of the State
Highway (Route 302),
said bound being the southeast corner of land now or formerly of Meade and the
southwest corner of land of Attitash on the northerly side of said highway; thence easterly
along the northerly side of said highway a distance of 135 feet to a point thence North
17° East along other land of Attitash a distance of 398 feet to a point at the top of a
banking; thence continuing on the same course to the southerly side of the Saco River;
thence westerly along the southerly side of said River as it runs, a distance of 135 feet,
more or less, to land now or formerly of Meade; thence South 17° West along land now
or formerly of Meade to the bound of beginning.

Meaning and intending to describe a parcel of land 135 feet in width running from Route
302 to the Saco River at the westerly extreme of land of Attitash on the northerly side of
said highway.

EXCEPTING from Parcels Twelve and Thirteen a small tract of land conveyed by
Forrester A. Clark to the Bartlett Cemetery Association by deed dated October 16, 1975
and recorded in said Registry of Deeds in Book 608, Page 412; and a parcel conveyed to
Stony Brook Associates, Inc. by Mt. Attitash Lift Corporation by deed dated October 19,
1984 and recorded in the Carroll County Registry of Deeds, Book 969, Page 79, which is
more particularly described as follows:

Beginning at an iron pipe corner as shown on a plan entitled “Two Lot
Subdivision Property of Mt. Attitash Lift Corporation, Bartlett, New Hampshire” as surveyed by
Thaddeus Thorne-Surveys, Inc., Center Conway, NH, December 8, 1977 revised to May

 

 

23, 1984; said iron pipe being situate on the easterly bank of Stony Brook, so-called,
and being the southwest corner of land now or formerly of Cook;

Thence, running on a bearing of North 79° 52’ 40” East, a distance of
253.10 feet along the southerly line of said Cook, to an iron pipe; said iron pipe being the
southeast corner of said Cook;

Thence turning to the left and running on a bearing of North 01° 44’ 50”
West, a distance of 100.10 feet along the easterly line of said Cook, to an iron pipe;

Thence continuing along the easterly line of said Cook on a bearing of North 00° 55’ 40” East, a
distance of 120.40 feet to an iron pipe; said iron pipe being the southwest corner of land now or
formerly of Sheaff;

Thence turning to the right and running on a bearing of North 81° 27’ 20” East,
a distance of 431.60 feet along the southerly line of said Sheaff then along the southerly line of land now or
formerly of Garland, to an iron pipe; said iron pipe being the southeast corner of said
Garland;

Thence, turning to the left and running on a bearing of North 01° 06’
20” East, a distance of 143.10 feet along the easterly line of said Garland, to a stone
bound; said stone bound being the southwest corner of land now or formerly of Kelley;

Thence, turning to the right and running on a bearing of North 80° 27’ 30” East, a distance of
136.00 feet along the southerly line of said Kelley, to a stone bound; said stone bound being
the southeast corner of said Kelley;

Thence, turning to the right and running on a bearing of South 00° 59’ 20” West, a distance of
45.00 feet, to a point;

Thence, turning to the left and running a bearing of South 42° 00’ 00” East, a
distance of 250.00 feet, to a point;

Thence, turning to the right and running on a bearing of South 48° 15’ 00” West, a distance of
125.00 feet, to a point;

Thence, turning to the right and running on a bearing of South 63° 00’ 00” West, a distance of
200.00 feet, to a point;

Thence, turning to the left and running on a bearing of South 18° 10’ 00” West, a
distance of 230.00 feet, to a point;

Thence, turning to the left and running on a bearing of South 07° 35’ 00” West, a distance of
430.00 feet, to a point;

 

 

Thence, turning to the right and running on a bearing of South 22° 45’ 00” West, a distance of 275.00 feet, to a point;

Thence, turning to the left and running on a bearing of South 36° 20’ 00” East, a
distance of 1,230 feet, more or less, to a point; said point being situate on the northerly
line of the White Mountain National Forest;

Thence, turning to the right and running on a bearing of North 88° 44’ 40” West, a distance
of 640 feet, more or less along the northerly line of the White Mountain National Forest, to
a point; said point being situate on the easterly bank of the aforementioned Stony
Brook:

Thence, turning to the right and running downstream in a general northerly direction a distance of
2,140 feet, more or less, to the bound of beginning.

Parcel Fourteen: Beginning at an iron pin, to be set, on the Northerly side of
Route 302; thence North 9° 39’ West, Sixty-three and Seven tenths (63.7) feet to the land of the
Maine Central Railroad at an iron pin, to be set; thence South 88° 30’ East, along the course of
the Maine Central Railroad, Nine Hundred Five (905) feet to an iron pin at the Northwest corner of
land now or formerly of Russo; thence South 21° 50’ West, along said Russo land, One Hundred Ninety
and Five Tenths (190.5) feet to an iron pin; thence North 80° 21 ‘West along the
Northerly side of Route 302, Eight Hundred Fifty-Four (854) feet to the point of beginning.

Parcel Fifteen: Being on the northerly side of Route 302 bounded as follows: Beginning
on the northerly side of said highway at the southeasterly corner of land now or formerly of GBP
Realty Corp.; thence running northerly by said GBP land a distance of 440 feet, more or less, to
land of the Maine Central Railroad; thence turning and running N 74° 37’ 00” East by
said Railroad land a distant of 2270 feet, more or less, to land now or formerly of one Larson;
thence turning and running southerly by said Larson land a distance of 460 feet, more or less, to a
thread of a small brook or stream; thence turning and running southeasterly by said thread of said
brook or stream a distance of 405 feet, more or less, to said Route 302;
thence turning and running westerly by said Route 302 a distance of 2340 feet, more or less, to the
point of beginning.

Parcel Sixteen: Situate off the northerly side of Route 302 in said Bartlett between
the Maine Central Railroad property on the south and the Saco River on the north, bounded and
described as follows: Beginning on the northerly side of said Maine Central Railroad right-of-way,
so-called, at land now or formerly of one Bagley; thence running S 74° 37’ 00” West by said
Railroad property a distance of 4000 feet, more or less, to land now or formerly of River Run
Co. ; thence turning and running N 01° 11’ 20” East a distance of
1320 feet, more or less, by land of said River Run Co. to the thread of the Saco River; thence
turning and running easterly by the thread of said Saco River a distance of 4000 feet, more or
less, to land of said Bagley; thence turning and running southerly by said Bagley land a distance
of 1200 feet, more or less, to the point of beginning.

 

 

Parcel Seventeen: Situate off the southerly side of Route
302 in said Bartlett, the same being in the Cow Hill area, so-called,
shown on a plan entitled “Property of Attitash Enterprises, Book 395, Page 425,
Bartlett, N.H.” as drawn by Thaddeus Thorne-Surveys, Inc., Center Conway, N.H., bounded
and described as follows:

Beginning at a point situate on the southerly side of Cow-Hill Road, so-called, said point
being the northeast corner of Lot 3 of Attitash Enterprises 1984 subdivision;

Thence running along the southerly sideline of said Cow Hill Road in a generally
easterly direction a distance of 200 feet, more or less, to a point, said point being the
northwest corner of Lot 15 Attitash Enterprises Phase 1 Subdivision;

Thence turning to the right and running along the westerly sideline of said Lot 15 in a generally
southerly direction a distance of 100 feet, more or less, to a point;

Thence continuing along the southerly line of said Lot 15 in a generally southeasterly direction a
distance of 171.9 feet to a point;

Thence continuing along the easterly line of said Lot 15 in a generally northeasterly direction
a distance of 166.4 feet to a point;

Thence continuing along the easterly line of said Lot 15 in a generally northeasterly direction a
distance of 63 feet, more or less, to a point, said point being situate on the southerly line
of an unnamed road and being the northeast corner of said Lot #15;

Thence continuing along the southerly sideline of said Road in a generally easterly direction a
distance of 100 feet, more or less, to a point said point situate at the thread of a small
stream;

Thence turning to the right and running upstream in a generally southerly direction a distance of
1200 feet, more or less, to a point, said point being situate on the westerly line of land
now or formerly of Nuveen;

Thence continuing in a generally southerly direction along the westerly line of said Nuveen a
distance of 500 feet, more or less, to a point, said point being the southwest corner of land of
said Nuveen;

Thence turning to the left and running along the southerly line of said Nuveen in a generally
easterly direction a distance of 30 feet, more or less, to a point, said point being situate
at the thread of a small stream;

Thence turning to the right and running upstream in a generally southerly direction a distance of
550 feet, more or less to a point, said point being situate on the northerly line of the U.S.
Forest Service;

 

 

Thence turning to the right and running on a bearing of N 88° 44’
40” W a distance of 1897 feet, more or less, along the northerly line of the U.S. Forest Service to a point,
said point being the southeast corner of land now or formerly of Mt. Attitash Lift Corporation and the southwest corner of the parcel herein
described;

Thence turning to the right and running on a bearing of N 01° 34’ 50” E a distance of
1560 feet, more or less, first along land of said Mt. Attitash Lift Corporation and then
along land now or formerly of Cathedral Trail Development Corporation to a point, said
point being the southwest corner of other land of said Cathedral Trail Development Corporation and the northeast corner of the parcel herein described;

Thence turning to the right and running on a bearing of S 68° 30’ E a distance of 500
feet, more or less, along the southerly line of said Cathedral Trail Development
Corporation to a point, said point being the southeast corner of Cathedral Trail
Development Corporation, and the southwest corner of “Treetops Condominiums” so-called;

Thence turning to the left and running on a bearing of S 68° 12’ E a distance of 450 feet,
more or less, along the southerly line of said “Treetops” to a point, said point being the
southeast corner of “Treetops” and the southwest corner of other land of Attitash
Enterprises;

Thence turning to the left and running on a bearing of S 74° 50’ E a distance of 400 feet,
more or less, along the southerly line of said other land of
Attitash Enterprises to a point, said point being the southeast corner of other land of
Attitash Enterprises;

Thence turning to the left and running on a bearing of N 17° 00’ E a
distance of 776.5 feet along the easterly line of said Lot 3 Attitash
Enterprises, to the point of beginning.

Including, with Parcels One through Seventeen above, the premises conveyed to Mt.
Attitash Lift Corporation from the Town of Bartlett as described in the deed dated
December 18, 1992 and recorded in the Carroll County Registry of Deeds in Book 1514,
Page 303 as follows:

A portion of a certain tract or parcel of land conveyed to the Town of Bartlett for
highway purposes located in Bartlett, Carroll County, New Hampshire, being a strip of
land sixty-six (66) feet in width, particularly bounded and described as follows:

     1. Beginning at a point on the center line of the Town Road serving Alpine Village
Subdivision (Section A), being the point opposite the West line of the said Subdivision
Section A;

     2. Thence running along the center line in a
Westerly direction described in the below-referenced deed
into the Town as running North 89° West and being 192.5 feet from the center of the
Maine Central Railroad right-of-way for a distance of approximately 1,810.35 feet;

 

 

     3. Thence turning and running Northerly along the center line of the former Town road across
the railroad and to Route 302, this portion of the center line running parallel to the Westerly
said line of the cemetery lot of the Roman Catholic Church and 33 feet Westerly from
said cemetery lot line. Excepting and reserving the rights of the railroad.

Meaning and intending to convey a portion of the tract or parcel of land conveyed by
Bartlett Recreation Development Corporation for highway purposes by deed recorded in the Carroll
County Registry of Deeds, Book 367, Page 336. Excepting and reserving from that said conveyance
the portion of the tract that is the Town road leading from Route 302 at a point beginning on the
Southerly edge of Route 302, 158 feet Westerly of an iron stake also near the Southerly edge of
Route 302 and running Westerly to the point opposite the West side line of Alpine Village
Subdivision Section A, the point of beginning of the conveyance herein to Mt. Attitash Lift
Corporation as above described.

ALSO including, with parcels One through Seventeen above, the premises conveyed to Mt.
Attitash Lift Corporation from the Town of Bartlett as described in the deed dated December 18,
1992 and recorded in the Carroll County Registry of Deeds in Book 1514, Page 305 as
follows:

A certain tract or Parcel of land situated in said Town of Bartlett, Carroll County, New
Hampshire, which tract of land is sixty-six (66) feet in width, and the center line of said tract
is bounded and described as follows:

Beginning at a point at land now or formerly of Curry Co., Inc. and George McHenry
Seeman, which point is located South 18° 30’ West of the Southwest corner
of Lot #158 now or formerly of Robert E. Bowers, Trustee of Attitash Investment Trust, and which
corner is also the Southeast corner of Lot #1 of subdivision of Curry Co., Inc. and George
McHenry Seeman; thence South 18° 30’ West six hundred and twenty eight (628) feet to a point;
thence turning and running South 89° East fourteen hundred and fifty (1450) feet to a point, which
point is located 33 feet Westerly of land of Mt. Attitash Lift Corporation; thence turning and
running North 18° 30 minutes East 628 feet to a point thence turning and running North 89° West
1450 feet to the point of beginning.

The premises described above are shown on the plan entitled “A Portion of Property of
Attitash Investment Trust, Subdivision Plan: Area “B” revised September, 1965” by Thaddeus Thorne.

EXCEPTING from the above described Parcels One through Seventeen the following:

a.) Premises described in quitclaim deed of L.B.O. Holding, Inc. to LBO
Hotel Co. dated June 28, 1996, and recorded in Book 1662, Page 425, of the Carroll
County Registry of Deeds; as affected by the Corrective Deed dated July 12, 1996 and recorded

 

 

at Book 1666, Page 745; and further affected by the Deed dated September 29, 1996
and recorded at Book 1674, Page 469, and being more particularly described as follows:

A certain tract or parcel of land located in Bartlett, Carroll County, New
Hampshire, being shown as parcel 2 on a Plan of Land entitled “Subdivision Plat Grand
Summit Hotel at Attitash property of L.B.O. Holding Company, Inc. Bartlett, NH”, said Plan being
dated March 7, 1996, revised through July 11, 1996, and recorded in the Carroll County Registry of
Deeds in Book 157, Page 17. Said premises are more particularly bounded and described as follows:

Commencing at a point which is S 02° 06’ 56” E a distance of
382.52 feet from a State of New Hampshire Railroad right-of-way; thence, said
point being the northeasterly most corner of the premises described herein; thence

N 88° 22’ 05” W a distance of 1,375.44 feet to a point; thence

S 01° 37’ 55” W a distance of 440.33 feet to a point; thence

S 88° 22’ 05” E a distance of 155.03 feet to a point; thence

S 01° 37’ 55” W a distance of 451.82 feet to a point; thence

S 88° 22’ 05” E a distance of 1,325.41 feet to a point; thence

N 01° 37’ 55” E a distance of 550 feet to a point; thence

N 88° 22’ 05” W a distance of 105 feet to a point; thence

N 01° 37’ 55” E a distance of 342.15 feet to the point of beginning.

b.) Premises described in warranty deed from L.B.O.
Holding, Inc. to River Run Company, Inc., dated October 21, 2003, recorded at Book
2225, Page 850 of the Carroll County Registry of Deeds, being Lot 1 on Plan entitled “Property of
Mount Attitash Lift Corporation Proposed Two Lot Subdivision” as prepared by Thaddadeus
Thorne-Surveys, Inc., dated January 25, 1990 and revised July 26, 1999, recorded in said Registry
in Plan Book 168, Page 13, being more particularly described as follows:

Beginning at a point at the southwest corner of Lot 1, situated
on the northerly sideline of Route 302 as shown on a plan entitled,
“Property of Mt. Attitash Lift Corporation, Proposed Two Lot Subdivision, Bartlett, New
Hampshire,” as surveyed by Thaddeus Thorne-Surveys, dated August 19, 1989 and revised
to Jury 26, 1999, said point being the southeast corner of land now or formerly of
Howard and Dorothy Webster, and as stated, the southwest corner of the parcel herein described, said
point also being 4.1 feet on a bearing of North 16° 33’ 49”
East FROM a stone bound;

 

 

Thence continuing on a bearing of North 16° 33’ 49” East a distance of 815.92
feet along said land now or formerly of Webster to an iron pipe found;

Thence
continuing on the same bearing of North 16° 33’ 49” East, a distance of 46.49
feet still along said Webster to an iron rebar set, said rebar being a
northwesterly corner of Lot 2 and its Conservation Easement, and the northwest
corner of the parcel herein described;

Thence,
turning to the right and running on a bearing of South 34° 29’ 51” East, a
distance of 172.77 feet along said Lot 2/Conservation Easement to an iron rebar set;

Thence
turning slightly to the left and running on a bearing of South 54° 46’
26” East, a distance of 181.61 feet still along said Lot 2/Conversation Easement to
an iron rebar set;

Thence turning slightly to the right and
running on a bearing of South 12° 52’ 57”
East, a distance of 449.11 feet still along said Lot 2/Conservation Easement to an iron rebar
set;

Thence, turning to the left and running on
a bearing of South 86° 59’ 46” East, a distance of
124.98 feet still along said Lot 2/Conservation Easement to an iron rebar;

Thence, turning slightly to the right and
running on a bearing of South 61° 42’ 44” East, a
distance of 146.60 feet still along said Lot 2/Conservation Easement to an iron rebar set;

Thence turning slightly to the left and running
on a bearing of South 82° 47’ 57” East, a distance
of 200.14 feet still along said Lot 2/Conservation Easement to an iron rebar corner, said rebar
being a southwesterly corner of Lot 2 and the northeast corner of the parcel herein described;

Thence, turning to the right and running on a
bearing of South 02° 34’ 32” East, a distance
of 222.92 feet along the westerly line of said Lot 2, but no longer its Conservation Easement to a
point on the aforementioned northerly sideline of Route 302, said point being a southwest corner of
the said Lot 2 and the southeast corner of the parcel herein described;

Thence, turning to the right and running on a
bearing of North 79° 47’ 12” West, a
distance of 831.50 feet along said northerly sideline of Route 302 to a point;

Thence running in a generally westerly direction
along a curve having a radius of 3360.11 feet, an
arc distance of 165.54 feet still along said sideline of Route 302 to a point;

Thence, continuing on a bearing of North
82° 36’ 34” West, a distance of 73.82 feet
along said sideline of Route 302 to the point of beginning.

 

 

c.) Premises described in a deed by L.B.O. Holding, Inc. to Bearfoot Creek,
LLC, dated July 2, 2004, recorded at Book 2315, Page 670 of
said Registry, more particularly described as follows:

A certain tract or parcel of land located in Bartlett, Carroll County, New
Hampshire, being shown as “Proposed BLA, 121, 490 square feet, 2.79 acres” on a plan
of land entitled “Boundary Line Adjustment, Properties of Cheboygan Properties, LLC and
of LBO Holding, Inc., Route 302, Bartlett, New Hampshire,”
prepared by Thaddeus Thorne-Surveys, Inc., dated February 27, 2004, as revised through June
14, 2004, recorded at Plan Book 208, Page 58 in the Carroll County Registry of Deeds, and
being more particularly bounded and described as follows:

Beginning at a stone bound corner situate on the northerly property line of L.B.O. Holding, Inc., as shown on a plan entitled “Boundary
Line Adjustment, Properties of Cheboygan Properties, LLC and of LBO Holding, Inc., Route 302, Bartlett, New
Hampshire,” prepared by Thaddeus Thorne-Surveys, Inc., dated February 27, 2004,
as revised through June 14, 2004, said stone bound corner being the southeast corner of
land of Richard and Sharon Capistran (Lot 8 Alpine Village), the
southwest corner of land of Bearfoot Creek, LLC and the northwest corner of the parcel herein
described;

Thence
running on a bearing of South 81° 41’ 50” East, a
distance of 777.93 feet along
the south line of said land of Bearfoot Creek, LLC to an iron pipe
reference corner near
the bank of Stoney Brook, thence continuing on the same bearing of South
81° 41’ 50”
East, a distance of 36 feet more or less down the
stream bank to a point at the center of
said Stoney Brook at the west line of land of Mountainside-on-Attitash, said point
being
the southeast corner of land of Bearfoot Creek, LLC and the
northeast corner of the
parcel herein described;

Thence turning to the right and running down the center of Stoney Brook on a reference
line of South 03° 24’ 17” West, a distance of 284.94 feet along said
western line of land
of Mountainside-on-Attitash to a point; thence, continuing down the
center of Stoney
Brook on a reference line of South 01° 03’ 20”
East, a distance of 219.06 feet still along
said western line of Mountainside-on-Attitash to a point near the existing ski
trail bridge,
said point being the northeast corner of the remaining land of said L.B.O. Holding,
Inc.,
and the southeast corner of the parcel herein described;

Thence turning to the right and running on a bearing of South
67° 45’ 25” West, a
distance of 89.00 feet along remaining land of said
L.B.O. Holding, Inc., to a point;

Thence turning to the right and running on a bearing of North
60° 47’ 05” West, a
distance of 30.73 feet along said remaining land of L.B.O. Holding, Inc. to a
point;

Thence turning to the right and running on a bearing of North
14° 15’ 02” East, a
distance of 171.79 feet along said remaining land of L.B.O. Holding, Inc., to
a point;

 

 

Thence turning slightly to the left and running on a
bearing of North 23° 02’ 19”
West, a distance of 224.31 feet along said remaining land of L.B.O.
Holding, Inc., to a point;

Thence turning slightly to the left and running on a bearing of
North 65° 55’ 47” West, a distance of 586.04 feet along
said remaining land of L.B.O. Holding, Inc., to a point;

Thence turning to the left and running
on a bearing of South 27° 54’ 45” West, a distance of 76.00
feet along said remaining land of L.B.O. Holding, Inc., to a point;

Thence turning to the right and running on a bearing
of North 69° 42’ 52” West,
a distance of 90.16 feet along said remaining land of L.B.O. Holding,
Inc., to a point, said point being the southwest corner of the parcel herein described;

Thence turning to the right and running
on a bearing of North 15° 18’ 26” East,
a distance of 65.99 feet along said remaining land of L.B.O. Holding,
Inc., to the stone bound corner of beginning.

d.) Premises described in the deed from L.B.O. Holding, Inc. to Whites
Ledges Realty, Inc. dated July 6, 2006 and recorded in the Carroll County Registry of
Deeds in Book 2546, Page 792 bounded and described as follows:

A certain tract or parcel of land located northerly of U.S. Route 302 and the former
Maine Central Railroad, in the Town of Bartlett, County of Carroll, State of New
Hampshire, identified as Parcel B on a plan entitled “Boundary-Line Adjustment Plan and
Golf-Course Easements Plan between properties of L.B.O. Holding, Inc. & Whites
Ledges Realty, Inc. located in Bartlett, New Hampshire” prepared by H. E. Bergeron
Engineers, dated June 8, 2005, as revised and recorded in the Carroll County Registry of
Deeds in Book 214, Pages 95 and 96, (the “Plan”), said Parcel B being more particularly
bounded and described as follows:

BEGINNING at a rebar with HEB disk set on the north sideline of state highway
U.S. Route 302, at the southeast corner of land of Bartlett Cemetery Association, and
at a southwest corner of the premises herein described;

Thence bearing the following courses by said land of Bartlett Cemetery Association:

N 04°59’06” W 338.84 ft. to
a Thorne Surveys cap on a metal fence post found at the
end of a chain-link fence;

Thence S
80°25’27” W 250.94 ft. to an HEB
disk on rebar set;

Thence S 80°19’20” W 413.49 ft. to an HEB disk on
rebar set;

Thence following along land being retained by
the L.B.O. Holding, Inc., N 72°53’13” E 280.00 ft. to an HEB disk on rebar set;

 

 

Thence N 18°00’00” E 240.00 ft.
to an HEB disk on
rebar set (Point A on said Plan);

Thence N 09°00’00” W, descending into an old river
channel, 350.00 ft. to a point;

Thence N 87° 38’00” E,
ascending out of said old river channel, 25.00’ to an HEB
disk on rebar set as an off-set monument to said point;

Thence N
87°38’00” E 590.00 ft. to an HEB disk on rebar set;

Thence N
46°00’00” E 180.00 ft. to an HEB disk on rebar set;

Thence N
20°00’00” E 400.00 ft. to an HEB disk on rebar set;

Thence S
82°11’08” E 261.79 ft. to a rebar with Thorne Surveys cap found on the west line
of land now or formerly of White’s Ledges Realty, Inc.;

Thence by said other land now or formerly
of Whites Ledges Realty, Inc. 575.90 ft. to an
HEB disk on rebar set at the northwest corner of another portion of said land now or formerly of
White’s Ledges Realty, Inc., also at the northwest corner of Golf-Course Easement Area C1 as shown
on said Plan;

Thence S 00°52’16” W, by said other land of Whites Ledges Realty, Inc. and by said
Easement Area C1, 93.85 ft. to Point B as shown on said Plan;

Thence by the same course, along
said other land of Whites Ledges Realty, Inc., 578.52 ft.
to a point on the north line of a former Maine Central Railroad right-of-way,
lying N 00° 52’ 16” E 0.35 ft. from a rebar with Thorne Surveys cap
found;

Thence S 73° 38’
05” W by said railroad sideline, 451.80 ft. to
an HEB disk on rebar set on the north sideline of said state highway U.S. Route 302;

Thence westerly by said state highway sideline, with a curve to the left with a radius of 933.00
ft. (chord N 89°35’29” W, 290.18 ft.), an arc distance of 291.36
ft., to the POINT OF BEGINNING.

e.) Premises described in the deed from Clifton R.
Garland to the State of New Hampshire dated March 30,
1955 and recorded in said Registry of Deeds in Book 304, Page 18.

f.) Premises described in the deed from Mt.
Attitash Lift Corporation to Armando G. Russo, et al, dated March 20, 1986
and recorded in said Registry of Deeds in Book 1234, Page 357.

Parcel Eighteen

A certain tract or parcel of land located northerly of U.S. Route 302 in the Town of

 

 

Bartlett, County of Carroll and State of New Hampshire, identified as Parcel A on a
plan entitled “Boundary-Line Adjustment Plan and Golf-Course Easements Plan between properties of
L.B.O. Holding, Inc. & White’s Ledges Realty, Inc. located in Bartlett, New
Hampshire” prepared by H.E. Bergeron Engineers, dated June 8, 2005, as revised, and recorded at the
Carroll County Registry at Plan Book 214, Pages 95 and 96 (the “Plan”), said Parcel A being more
particularly bounded and described as follows:

Beginning at an HEB disk on rebar (which replaced a bent rebar found), said rebar
marking the northwesterly corner of land now or formerly of River Run Condominium and
located on a course of North 04° 19’ 45” East a distance of 900.00 feet
(along the westerly sideline of said land of River Run Condominium) from the northerly sideline of
land of the State of New Hampshire (formerly of Maine Central Railroad Co.); thence turning and
running along other land of the Grantor, Whites Ledges Realty, Inc., the following
courses and distances:

South 55° 11’ 50” West, a distance of 677.12 feet to a point; thence

North 84° 15’ 26” West, a distance of 315.46 feet to a point; thence

South 58° 29’ 44” West, a distance of 234.10 feet to a point; thence

South 64° 42’ 09” West, a distance of 274.63 feet to a point in the
easterly sideline of Parcel B as shown on said plan, said point marking the southwesterly corner of
Parcel A as shown on said Plan, herein conveyed;

Thence turning and running North 00° 52’ 16” East, along the easterly sideline of
Parcel B as shown on said Plan a distance of 575.90 feet
to a 5/8” rebar w/ Thorne cap found flush (held);

Thence continuing on a course of North 00° 52’ 16’’ East along other land
of the Grantee, L.B.O. Holding, Inc., a distance of 285.36 feet to a 0.4’ tall 5/8” rebar w/ Thorne cap found;

Thence continuing on a course of North 00° 52’ 16” East, still along
other land of the Grantee, L.B.O. Holding, Inc., a distance of 211.21 feet to a point at the thread of the Saco River, said point marking
the northwesterly corner of Parcel A herein conveyed;

Thence turning and running in an easterly direction along the thread of the Saco River, as it
trends, to a point, said point being on a direct course tie of North 75° 07’ 34”
East, a distance of 503.9 1 feet from the last mentioned point;

Thence running in a northeasterly direction along the thread of the Saco River, as it trends, to a
point, said point being on a direct course tie of North 56° 13’ 08” East, a distance
of 621.84 feet from the last mentioned point;

Thence continuing in a northeasterly direction along the thread of the Saco River, as
it

 

 

trends, to a point, said point being on a direct course tie of North 36° 25’
42’’East, a distance of 351.26 feet from the last
mentioned point;

Thence running in an easterly direction along the thread of the Saco River, as it trends, to a
point, said point being on a direct course tie of South 86° 33’ 17” East, a
distance of 389.88 feet from the last mentioned point;

Thence continuing in an easterly direction along the thread of the Saco River, as it
trends, to a point at the northeasterly comer of Parcel A herein conveyed, said point being
on a direct course tie of North 88° 14’ 21” East, a distance of 438.75 feet from
the last mentioned point;

Thence turning and running South 00° 16’ 47” East, along the westerly sideline of other land now
or formerly of L.B.O. Holding, Inc., a distance of 1008.86 feet to a 0.85’ tall
3/4” rebar w/ Thorne cap found, said rebar marking the southeasterly corner of
Parcel A herein conveyed;

Thence turning and running South 73° 45’ 18” West along the northerly sideline of land now or
formerly of River Run Condominium a distance of 774.58 feet to the HEB disk on rebar
at the point and PLACE OF BEGINNING.

Parcel Nineteen

A certain condominium unit known as Unit No. 1 (the “Commercial Unit’’) in Grand Summit Hotel
and Crown Club at Attitash/Bear Peak, a Condominium, located in Bartlett, Carroll County, State of
New Hampshire, said Condominium having been established pursuant to N.H. R.S.A. 356-B by a
Declaration of Condominium dated March 28, 1997, and recorded in the Carroll County Registry of
Deeds at Book 1692, Page 989, amended by Amendment of Declaration dated March 20, 2002, recorded at
Book 2010, Page 12 (Such Declaration, as amended, shall hereinafter be referred to as the
“Declaration”), as shown on the Site and Floor Plans entitled “Grand Summit Hotel and Crown Club
Attitash/Bear Peak, A Condominium” recorded in the Carroll County Registry of Deeds at Plan Number
Plan Book 159, Page 53 through 65; and as also shown on a site plan recorded at Plan Book 174, Page
54, and a floor plan recorded at Plan Book 201, Page 28, together with a 29.02547% interest in the
Common Area appurtenant to said Unit as defined and described in said Declaration, as said
Declaration has been and may be further amended.

Parcel Twenty

Land in Bartlett, Carroll County, New Hampshire, located on the southerly side of
Route 302 and shown as Lot No. 41 on Subdivision Plan, Land of Attitash
Investment Trust, Bartlett, New Hampshire, Area “A”, Robert T. Holloran, Architect &
Engineer, dated June 1, 1963, recorded in the Carroll County Registry of
Deeds, Ossipee, New Hampshire, Plan Book 6, Page 83.

 

 

Parcel Twenty-One

Certain tracts or parcels of land situate in the Town of Bartlett, County of Carroll, State
of New Hampshire, in that part of the Town of Bartlett known as Alpine Village, more particularly
bound and described as follows:

Parcel 1:

Lot Al-Beginning at an iron pipe set as shown on a plan entitled “Attitash
Investment Trust, Alpine Village, proposed 3 Lot Subdivision”, as surveyed by Thaddeus
Thorne-Surveys, Inc., Center Conway, New Hampshire, July, 1984, revised to October 9,
1984, recorded at the Carroll County Registry of Deeds at Plan Book 72, Page 61, said iron pipe
being the northeast corner of Lot A1 and being situate on the westerly sideline of a 50-foot
right-of-way;

Thence, continuing along the westerly sideline of said right-of-way on a bearing of South
00° 31’40” West, a distance of 248.39 feet to an iron pipe set; said iron pipe being the
northeast corner of Lot A2 and the southeast corner of Lot A1 herein described;

Thence, turning to the right and running on a bearing of South 80° 10’ 00” West, a distance
of 146.74 feet along the northerly line of Lot A2 to an iron pipe set; said iron pipe being the
northwest corner of Lot A2 and the southwest corner of Lot A1 herein described;

Thence turning to the right and running on a bearing of North 00° 35’ 20” West, a distance of
224.35 feet along land now or formerly of Mt. Attitash Lift Corp., to an iron pipe set on
the southerly sideline of a 66 foot right-of-way; said iron pipe being the northwest corner
of Lot A1 herein described;

Thence, turning to the right and running on a bearing of North 71° 47’ 40” East, a distance of
157.05 feet to the bound of beginning;

The above described Lot A1 is said to contain 0.80 acre.

Parcel 2

Lot A2-Beginning at an iron pipe corner as shown on a plan entitled “Attitash Investment
Trust, Alpine Village, proposed 3 Lot Subdivision”, as surveyed by Thaddeus Thorne-Surveys, Inc.,
Center Conway, New Hampshire, July, 1984, revised to October 9, 1984, recorded at Carroll County
Registry of Deeds at Plan Book 72, Page 61, said iron pipe being the southeast corner of Lot A1
and the northeast corner of Lot A2 herein described; and being situate on the westerly sideline of
a 50 foot right-of-way;

Thence, running along the westerly sideline of said 50 foot right-of-way on a bearing
of South 00° 31’40” West, a distance of 245.59 feet to an iron pipe set; said
iron pipe being the northeast corner of Lot A3 and the southeast corner of Lot A2 herein
described;

 

 

Thence, turning to the fight and running on a bearing of South 77° 03’ 40” West,
a distance of 143.35 feet along the northerly line of Lot A3 to an iron pipe set; said iron pipe
being the northwest corner of said Lot A3 and the southwest corner of Lot A2 herein described;

Thence, turning to the right and running a bearing of North 00° 35’ 20” West, a
distance of 252.62 feet along land now or formerly of Mt. Attitash Lift Corp., to an iron pipe
set, said iron pipe being the southwest corner of Lot A1 and the northwest corner of Lot A2 herein
described;

Thence, turning to the right and running on a bearing of North 80° 10’ 00” East, a
distance of 146.74 feet along the southerly line of Lot A1 to the bound of beginning.

The above described Lot A2 is said to contain 0.81 acre.

Parcel 3

Lot A3-Beginning at an iron pipe corner as shown on a plan entitled “Attitash Investment Trust,
Alpine Village, proposed 3 Lot Subdivision”, as surveyed by Thaddeus Thorne-Surveys, Inc., Center
Conway, New Hampshire, July, 1984, revised to October 9, 1984, recorded at Carroll County Registry
of Deeds at Plan Book 72, Page 61, said iron pipe being situate on the westerly sideline of a 50
foot right-of-way and being the southeast corner of Lot A2 and the northeast corner of Lot A3 herein
described;

Thence, running on a bearing of South 00° 31’ 40’’ West, a distance of 11.27 feet to an iron pipe
set on the sideline of the aforementioned 50 foot right-of-way;

Thence, turning to the left and running on a bearing of North 79° 43’ 40” East, a distance of 53.81 feet to an iron pipe set; said iron pipe being the northwest corner of land now or formerly
of Morrell and the northeast corner of Lot A3 herein described;

Thence, turning to the right and running on a bearing of South 10° 16’ 20” East, a
distance of 175.00 feet along the westerly line of said Morrell, to an iron pipe found; said iron
pipe being the southwest corner of said Morrell and the southeast corner of Lot A3 herein described;

Thence, turning to the right and running on a bearing of South 79° 43’ 40” West, a
distance of 225.50 feet along land now or formerly of Mt. Attitash Lift Corp. to an iron pipe set;
said iron pipe being the southwest corner of Lot A3 herein described;

Thence, turning to the right and running on a bearing of North 00° 35’ 20” West, a distance of
182.00 feet along land of said Mt. Attitash Lift Corp., to an iron pipe set; said iron pipe being
the southwest corner of Lot A2 and the northwest corner of Lot A3 herein described;

 

 

Thence, turning to the right and running on a bearing of North 77°
03’ 40” East, a distance of 143.35 feet to the bound of beginning.

The above described Lot A3 is said to contain 0.87 acre.

Parcel Twenty-Two

The land in Bartlett, Carroll County, New Hampshire, located on the southerly side of
Route 302 and shown as Lot No. 32 on Subdivision Plan, land of Attitash Investment
Trust, Bartlett, New Hampshire, Area “A”, Robert T. Holloran, Architect & Engineer,
dated June 1, 1963, recorded in the Carroll County Registry of Deeds, Ossipee, New Hampshire, Plan
Book 6, Page 83, and as more particularly shown on plan recorded at Carroll
County Registry of Deeds at Plan Book 72, Page 61.

Parcel Twenty-Three

A certain tract or parcel of land with any improvements thereon situated in Bartlett, County
of Carroll, State of New Hampshire, more particularly bounded and described as follows:

Commencing at the southwesterly corner of the premises on the northerly side of Route 302,
which corner is the southeasterly corner of the premises formerly of John W. Hutchinson and now of
Mt. Attitash Lift Corporation; thence in an easterly direction by said Route 302, a distance of 228
feet, more or less, to land now or formerly of Mt. Attitash Lift Corporation; thence in a northerly
direction by said Mt. Attitash Lift Corporation land to the Saco River; thence in a northerly or
westerly direction by the Saco River to the northeasterly corner of said Mt. Attitash Lift
Corporation; thence in a southerly direction by said Mt. Attitash Lift Corporation land to the land
of the Maine Central Railroad; thence continuing in a southerly direction by other land of said Mt.
Attitash Lift Corporation to the northerly side of Route 302 at the point of beginning.

Meaning and intending to describe the same premises conveyed to Attitash Associates
to Mt. Attitash Lift Corporation by deed dated September 15, 1977 and recorded in
said Registry of Deeds in Book 645, Page 77.

Parcel Twenty Four

A certain tract or parcel of land situated in Bartlett, County of Carroll,
State of New Hampshire, more particularly described as follows:

Commencing at the southwesterly corner of the premises at the southeasterly corner of the
premises conveyed to Marjorie Hyde of the northerly side of Route 302; thence running
in an easterly direction by Route 302 to land now or formerly of John Smith; thence
in a northerly direction by land of said Smith and land now or formerly of
W.J. Chandler to the Saco River; thence following the Saco River in a northerly or westerly

 

 

direction to the northeasterly corner of premises conveyed to said Hyde; thence in a southerly
direction by land conveyed to said Hyde to the point of beginning.

Being the same premises conveyed to Mt. Attitash Lift Corporation by deed dated December 18, 1977
and recorded in said Registry of Deeds in Book 691, Page 45.

Parcel Twenty-Five

The land in Bartlett, Carroll County, New Hampshire, located on the southerly side of Route
302 and shown as Lot No. 3A, on Subdivision Plan, Land of Attitash Investment Trust, Bartlett, New
Hampshire, Area “A”, Robert T. Holloran, Architect & Engineer,
dated June 1, 1963, and recorded in said Registry of Deeds in Plan Book 6, Page 83.

Being the same premises described in the deed from Robert E. Bowers, Trustee of Attitash
Investment Trust to Mt. Attitash Lift Corporation dated January 5, 1979 and recorded in said
Registry of Deeds in Book 734, Page 110.

Parcel Twenty-Six

A certain tract or parcel of land situated in Bartlett, County of Carroll and State of New
Hampshire, bounded and described as follows:

Beginning at the Southeast corner, on the right of way of the Maine Central Railroad, thence
running North on the line of the wire fence o the bank to the bed of the Saco River, thence running
West on said land now or formerly of Chandler to land of said Maine Central Railroad, thence
running East on said bound of Maine Central Railroad to point of beginning.

The bound of said Saco River is determined by course of said River as it now is in this year 1930.
A right-of-way to said property over Intervale Road leading from Riverside Drive also right-of-way
over said Riverside Drive is hereby conveyed.

Being the same premises conveyed to Mt. Attitash Lift Corporation form George F. Bagley, Jr. and
Anna Marie Bagley by deed dated July 18, 1979 and recorded in said Registry of Deeds in Book 752,
Page 487.

Parcel Twenty-Seven

A certain piece or parcel of land situate in said Bartlett, Carroll County and State of New
Hampshire, known as Lot 2, Property of Richard Garland, on Proposed 2 Lot Subdivision on the Survey
of Thaddeus Thorne-Surveys, Inc., dated January 21, 1984, and bounded and described as follows:

Beginning at an iron pin, to be set, on the Northerly side of Route 302; thence North 9° 39’
West, Sixty-Three and Seven Tenths (63.7) Feet to the land of the Maine Central Railroad at an iron
pin, to be set; thence South 88° 30’ East, along the course of the

 

 

Maine Central Railroad, Nine Hundred Five (905) Feet to an iron pin at the Northwest
corner of land now or formerly of Russo; thence South 21° 50’ West, along said Russo
land, One Hundred Ninety and Five Tenths (190.5) Feet to an iron pin; thence North 80°
21’ West along the Northerly side of Route 302, Eight Hundred Fifty-Four (854) Feet to
the point of beginning.

Said Lot 2 is said to contain Two and Fifty-Eight Hundredths (2.58) Acres.

Being the same premises described in the deed from Richard Garland to Mt.
Attitash Lift Corporation dated April 30, 1984 and recorded in said
Registry of Deeds in Book 938, Page 127.

Parcel Twenty-Eight

A certain tract or parcel of land with the buildings thereon, situated in the Town of
Bartlett, County of Carroll and State of New Hampshire and more particularly bounded and
described as follows:

Beginning at a point on the Northerly side of the Maine Central Railroad, said bound of
beginning being located one hundred thirty-two and three tenths (132.3) feet from the Southeast
corner of the dwelling of the Grantor; thence, North 7° 18’ East along
land of the Grantor a distance of three hundred seventy-eight and eight tenths (378.8)
feet to a point on the top of a banking; thence North 62° 16’ West a
distance of two hundred eleven (211) feet along other land of the Grantor
to a point on the top of said banking; thence, the Northerly side of the State Highway
(Route 302); thence, Easterly along the Northerly side of said highway; thence, along
the Northerly side of said Maine Central Railroad to the bound of beginning.

Being the same premises described in the deed from Harry Rogers to Mt. Attitash Lift
Corporation dated March 15, 1986 and recorded in said Registry of Deeds in
Book 1081, Page 331.

Parcel Twenty-Nine

The land in Bartlett, Carroll County, New Hampshire, located on the southerly side of Route
302 and shown as Lot No. 27 on subdivision Plan, Land of Attitash
Investment Trust, Bartlett, New Hampshire, Area “A”, Robert T. Holloran, Architect
& Engineer, dated June 1,1963 and recorded in said Registry of Deeds in
Plan Book 6, Page 83.

Being the same premises described in the deed from Thomas C.
Franco and Irene S. Franco to Mt. Attitash Lift Corporation dated September
25, 1987 and recorded in said Registry of Deeds in Book 1262,
Page 499.

 

 

Parcel Thirty

A certain piece or parcel of land, with any improvements thereon, located on the Southerly side of
Route 302 in the Town of Bartlett, County of Carroll and State of New Hampshire and being more
particularly bounded and described as follows:

Beginning at an iron pipe on the highway at line of Attitash Lift Corporation;
thence, Southerly on line of said Attitash Lift, one hundred fifty-five (155) feet to
an iron pipe; thence turning and running Westerly parallel to highway, one hundred thirty (130)
feet to an iron pipe; thence turning and running Northerly parallel to first described
line one hundred fifty-five (155) feet to an iron pipe on line of highway; thence
turning and running Easterly along highway one hundred thirty (130) feet to an iron pipe at the
point and place of beginning.

Also conveying the following right-of-way as conveyed by Lyman 0. Garland and Bertha Garland to
John Boron by Quitclaim Deed dated April 8, 1970 and recorded in said Registry of Deeds in Book
472, Page 175.

Being the same premise described in the deed from Seemann, Inc. to Mt. Attitash Lift Corporation
dated July 29, 1987 and recorded in said Registry of Deeds in Book 1263, Page 253.

Exhibit B

Leased Premises

Blake Leasehold Premises

Together with a lease from John Blake to L.B.O. Holding, Inc. executed on October 12,
2003, recorded in Book 2237, Page 822; as affected by the Assignment of Lease from John H. Blake,
et al, Trustees of the John H. Blake Revocable Trust to John Blake dated November 5, 2004 and
recorded in said Registry of Deeds in Book 2359, Page 550; and further described as follows:

Tract 1: Beginning on the Northerly edge of Route 302, the same being 10 feet West of a
former building; thence running Easterly along said highway a distance of 113 feet to a point;
thence turning and running Northerly and perpendicular to the said highway to land of Maine
Central Railroad; thence turning and running Westerly along land of said Railroad to a point;
thence turning and running Southerly and parallel to the second mentioned course, to the point of
beginning.

Tract 2: Beginning at a point on the Northerly side of Route 302, the
same being ten (10) feet westerly of a former building and
being the Northwesterly corner of land now or formerly of Russo; thence Northerly along land now or
formerly of Russo to land of Maine Central Railroad; thence Westerly along land of said Maine
Central Railroad; thence Westerly along land of said Maine Central Railroad to land of Garland;
thence Southerly along land of said Garland to Route 302; thence about 257 feet along said
highway, Route 302, to the point of beginning.

 

 

Exhibit C

Easement Parcels

TOGETHER WITH the easement rights recreated in the following instruments:

Easement A-River Run

Snowmaking and recreational easements by and between Mt. Attitash Lift Corporation and River
Run Condominium Association as contained in a Declaration of Covenants and Restrictions dated
September 29, 1977, recorded in Book 682, Page 152, and a Restated Declaration of Easements,
Covenants and Restrictions dated May 30, 1994, recorded in Book 1578, Page 17.

Easement B-Attitash Associates

Pedestrian, vehicular, parking, waterline, drainage and utility rights contained in a Declaration
of Easements and Restrictive Covenants by and between Attitash Associates and Mt. Attitash Lift
Corporation dated November 30, 1993, recorded in Book 1555, Page 97.

Easement C-Stony Brook Associates

Easement for trails and snowmaking on property of Mountainside-on-Attitash Association as
reserved in deed of Mt. Attitash Lift Corporation to Stony Brook Associates dated October 10,
1984, recorded in Book 969, Page 79, and as affected by “Amendment No. 1 to Easement Agreement
Dated December 24, 1985”, dated July 1, 1994, and recorded in Book 1582, Page 262.

Easement D-Whites Ledges Realty, Inc.

Easement for installation, operation, maintenance, repair and access for a golf course more
fully described in the Easement Agreement by and between Whites Ledges Realty, Inc. and L.B.O.
Holding, Inc. dated July 7, 2006 and recorded in said Registry of Deeds in Book 2546, Page 796.

Easement E-Bearfoot Creek, LLC

A. Easement for the Relocation and Extension of Abenaki Lift, more fully described in the Easement,
Development and Operating Agreement by and between L.B.O. Holding, Inc. and Bearfoot Creek, LLC
dated October 13, 2006 and recorded in Book 2603, Page 683.

B. Grading rights granted by the Grantee to the Grantor set forth in the deed from
L.B.O. Holding, Inc. to Bearfoot Creek, LLC dated July 2, 2004 and recorded in
said Registry of Deeds in Book 2315, Page 670.

 

 

Easement F

Water pipe rights reserved in the deed from Leon S. Rogers to Wayland Cook dated
July 19, 1938 and recorded in said Registry of Deeds in Book 212, Page 42.

Easement G

Rights and Easements that benefit L.B.O. Holdings, Inc., its successors or assigns as set
forth in the Declaration of Easements by and between L.B.O. Holding, Inc. and L.B.O.
Hotel Co., dated June 28, 1996 and recorded in Book 1662, Page 427; as re-recorded in
Book 1666, Page 739; as amended by the Amended and
Re-Stated Declaration of
Easements dated October 3, 1996 and recorded in said Registry of Deeds in Book 1674,
Page 471.

Easement H

Rights and easements granted by Attitash Enterprises, Inc. and Cathedral
Trail Development Corporation to Mt. Attitash Lift Corporation set forth in the deed dated
December 19, 1980 and recorded in said Registry of Deeds in Book 808, Page 327.

 

 

EXHIBIT B

Permitted Exceptions

None other than those set forth in Schedule B of
that certain Loan Policy of Title Insurance Policy No.
74107-433771 issued by Bigelow Title Company, LLC, as agent for Ticor
Title.

B-1

 

EXHIBIT C

Project Budget

Mount Snow/Attitash
Capital Projects

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Mount	 	 	 	 	 	 
	 	 	Snow	 	 	Attitash	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Carpet, paint, bathrooms base lodges
	 	$	2,000,000	 	 	$	—	 	 	Projects not yet estimated
	Rehab grand summit lift
	 	 	1,500,000	 	 	 	 	 	 	Working with lift manufacturer to define project
	Snowmaking/water
	 	 	 	 	 	 	5,000,000	 	 	Working on project budget/approximately 300 snowguns/piping/pumping
	Piping
	 	 	1,600,000	 	 	 	 	 	 	 
	Somerset pump/piping
	 	 	 	 	 	 	 	 	 	 
	Sump and intake
	 	 	150,000	 	 	 	 	 	 	 
	Building
	 	 	150,000	 	 	 	 	 	 	 
	Pumps
	 	 	550,000	 	 	 	 	 	 	 
	Install/electrical
	 	 	100,000	 	 	 	 	 	 	 
	Contingency
	 	 	50,000	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	1,000,000	 	 	 	 	 	 	 
	Pumping North Face
	 	 	 	 	 	 	 	 	 	 
	Pumps
	 	 	1,150,000	 	 	 	 	 	 	 
	Building
	 	 	200,000	 	 	 	 	 	 	 
	Install/electrical
	 	 	100,000	 	 	 	 	 	 	 
	Contingency
	 	 	50,000	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	1,500,000	 	 	 	 	 	 	 
	Power upfrade to distribution
and feed line to base area
	 	 	1,500,000	 	 	 	 	 	 	 
	Extend primary to Somerset
	 	 	 	 	 	 	 	 	 	 
	30 pull boxes
	 	 	60,000	 	 	 	 	 	 	 
	70,000’ conductor
	 	 	770,000	 	 	 	 	 	 	 
	14,000’ conduit
	 	 	168,000	 	 	 	 	 	 	 
	14,000’ install w/bedding
	 	 	350,000	 	 	 	 	 	 	 
	2000 kva @Somerset installed
	 	 	100,000	 	 	 	 	 	 	 
	2x2500 kva @ North Face installed
	 	 	200,000	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	1,648,000	 	 	 	 	 	 	 
	Snowguns
	 	 	 	 	 	 	 	 	 	 
	140 snow guns
	 	 	2,700,000	 	 	 	 	 	 	First phase
	Primary upgrades power
	 	 	150,000	 	 	 	 	 	 	 
	30,000’ cable
	 	 	250,000	 	 	 	 	 	 	 
	150 outlets
	 	 	100,000	 	 	 	 	 	 	 
	25 disconnects
	 	 	50,000	 	 	 	 	 	 	 
	Install/electrical
	 	 	100,000	 	 	 	 	 	 	 
	Install/erect guns
	 	 	200,000	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	3,550,000	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Reclaim stream
	 	 	1,000,000	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Phase 2 160 snowguns
	 	 	4,000,000	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	15,798,000	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Contingency
	 	 	702,000	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	$	20,000,000	 	 	$	5,000,000	 	 	 
	 	 	 	 	 

E-1exv10w2

Exhibit 10.2

PROMISSORY NOTE

(Mount Attitash Ski Resort)

			
	$15,700,000.00
	 	April 4, 2007

     FOR VALUE RECEIVED, PEAK RESORTS, INC., a Missouri corporation and L.B.O. HOLDING, INC., a
Maine corporation (jointly and severally, “Borrower”), hereby promise to pay to the order
of EPT MOUNT ATTITASH, INC., a Delaware corporation (together with any and all of its successors
and assigns and/or any other holder of this Note, “Lender”), without offset, in immediately
available funds in lawful money of the United States of America, at 30 West Pershing Road, Suite
201, Kansas City, Missouri 64108, the principal sum of FIFTEEN MILLION SEVEN HUNDRED THOUSAND
DOLLARS ($15,700,000.00) together with interest on the unpaid principal balance of this Note as
hereinafter provided. Interest shall be calculated on the basis of a 360 day year.

     Section 1 Payment. Commencing on May 4, 2007, and continuing on the same day of each
month thereafter until the Maturity Date, the Borrower shall pay interest only on the unpaid
principal balance of this Note at the rate of interest set forth in Section 3 below. The entire
principal balance of this Note, together with all accrued and unpaid interest and all other amounts
payable hereunder shall be due and payable in full on April 3, 2027 (the “Maturity Date”),
the final maturity of this Note.

     Section 2 Security; Loan Documents. This Note evidences a loan made by Lender to the
Borrower pursuant to a Loan Agreement of even date herewith, by and between the Borrower and Lender
(as amended, modified or supplemented from time to time, the “Loan Agreement”). This Note shall be
secured by (a) that certain New Hampshire Mortgage, Assignment of Rents, and Security Agreement (as
the same may from time to time be amended, restated, modified or supplemented, the
“Mortgage”), of even date herewith, from LBO Holding, Inc. (“LBO”), to Lender,
conveying and encumbering certain real and personal property more particularly described therein
and located in Wilmington, Vermont and Dover, Vermont, and commonly known as the Mount Attitash Ski
Resort (the “Property”); (b) the Assignment of Rents, Leases and Leasing Agreements of even
date herewith executed by LBO; (c) the Assignment of Permits and Licenses of even date herewith
executed by Borrower; (d) the Environmental Indemnity Agreement of even date herewith executed by
Borrower; and (e) the Debt Service Reserve and Security Agreement by and between Lender and
Borrower of even date herewith. This Note, the Mortgage, the Loan Agreement and all other
documents now or hereafter securing, guaranteeing or executed in connection with the loan evidenced
by this Note (the “Loan”), as the same may from time to time be amended, restated, modified
or supplemented, are herein sometimes called individually a “Loan Document” and together
the “Loan Documents.”

     Section 3 Interest Rate.

     (a) Initial Rate. The unpaid principal balance of this Note from day to day
outstanding shall initially bear interest at a rate of ten percent (10.00%) per annum.

     (b) Annual Rate Adjustment. On April 1, 2008, and on the first day of April of each
year thereafter (the “Adjustment Date”) until the Maturity Date, the rate of interest shall
be increased each year by one and one-half percent (1.5%)(i.e., an amount equal to the rate of
interest in the previous year multiplied by 1.015). Notwithstanding the foregoing, at such time as
the Property achieves a Debt Service Coverage Ratio of 2.0 to 1.0, and maintains such Debt Service
Coverage Ratio for a period of two consecutive years, then the applicable interest for subsequent
years will be reduced by 100 basis points from the otherwise applicable interest rate, provided
that such Debt Service Coverage Ratio continues to be met at the end of each Loan Year (as defined
in the Loan Agreement). For the purposes hereof, Debt Service Coverage Ratio shall mean a
fraction, the numerator of which is the EBITDA for the previous

 

 

Loan Year for the Property decreased by 3% of the revenues for the Property, and the denominator of
which is the current annual payment under this Note, and EBITDA shall mean, for the period of
computation, earnings attributable to the Property before interest, taxes, depreciation and
amortization, determined in accordance with generally accepted accounting principles, consistently
applied.

     (c) Past Due Rate. Any principal of, and to the extent permitted by applicable
law, any interest on this Note, and any other sum payable hereunder, which is not paid when due
(without regard to any applicable grace periods), shall bear interest, from the date due and
payable until paid, payable on demand, at a rate per annum (the “Past Due Rate”) equal to the per
annum interest rate from time to time publicly announced by Citibank, N.A., New York, New York as
its base rate, plus four percent (4%), but in no event shall the Past Due Rate ever be less than
the rate of interest set forth in subsection (a) above, (as adjusted pursuant to subsection (b)
above and sometimes referred to herein as the “standard rate of interest”) plus 200 basis points
(2.00%). In recent history, the past due rate, at Prime + 4%, would be lower than the standard
rate. If Citibank, N.A. discontinues reporting a base rate, then the base rate shall be such other
base rate as Lender designates to be the successor base rate.

     Section 4 Prepayment. Borrower shall have no right to prepay all or any part of the
principal of this Note prior to its scheduled Maturity Date without Lender’s consent, which consent
shall be held by Lender in its sole discretion. Notwithstanding the foregoing, subject to the
terms and conditions set forth in this Section 4, Lender hereby grants to Borrower a right of first
offer (“First Offer Right”) relating to the Lender’s sale of this Note. If, at any time
during the term hereof, Lender desires to sell this Note to another Lender, Lender shall first
deliver to Borrower written notice (the “Notice of Transfer”), which Notice of Transfer
shall state Lender’s desire to sell this Note. If Borrower elects to make an offer to purchase the
Note, Borrower shall deliver to Lender within 120 days following the date the Notice of Transfer
was received by Borrower (the “Offer Date”) a written offer (the “Offeree Offer”),
which Offeree Offer shall offer to purchase the Note on the terms and conditions, including price,
timing and lease terms (if applicable), specified therein. The Offeree Offer shall disclose all
material facts relating to the proposed transaction and, at Borrower’s option, may include a form
of Note purchase agreement. Each Offeree Offer shall be an irrevocable commitment by Borrower to
purchase this Note on the terms and conditions set forth therein. If Borrower does not elect to
make an offer to purchase this Note by the Offer Date or if Borrower makes an offer to purchase the
Note by the Offer Date and Lender elects not to sell the Note on the terms offered by Borrower,
Lender (X) shall be under no obligation to sell the Note to any person, unless Lender so elects,
and (Y) may, within a period of 6 months from and after the Offer Date, solicit offers relating to
the sale of this Note. The First Offer Right granted to Borrower under the terms and conditions of
this Section 4 shall revive in the event that Lender fails to sell the Note within the 6 months
from and after the Offer Date.

     Section 5 Late Charges. If Borrower shall fail to make any payment under the terms of
this Note (other than the payment due at maturity) within fifteen (15) days after the date such
payment is due, Borrower shall pay to Lender on demand a late charge equal to four percent (4%) of
the amount of such payment. Such fifteen (15) day period shall not be construed as in any way
extending the due date of any payment. The late charge is imposed for the purpose of defraying the
expenses of Lender incident to handling such delinquent payment. This charge shall be in addition
to, and not in lieu of, any other amount that Lender may be entitled to receive or action that
Lender may be authorized to take as a result of such late payment.

     Section 6 Certain Provisions Regarding Payments. All payments made under this Note
shall be applied, to the extent thereof, to late charges, to accrued but unpaid interest, to unpaid
principal, and to any other sums due and unpaid to Lender under the Loan Documents, in such manner
and order as Lender may elect in its sole discretion, any instructions from Borrower or anyone else
to the contrary notwithstanding. Remittances shall be made without offset, demand, counterclaim,
deduction, or recoupment (each of which is hereby waived) and shall be accepted subject to the
condition that any

2

 

check or draft may be handled for collection in accordance with the practice of the collecting
bank or banks. Acceptance by Lender of any payment in an amount less than the amount then due on
any indebtedness shall be deemed an acceptance on account only, notwithstanding any notation on or
accompanying such partial payment to the contrary, and shall not in any way (a) waive or excuse the
existence of an Event of Default (as hereinafter defined), (b) waive, impair or extinguish any
right or remedy available to Lender hereunder or under the other Loan Documents, or (c) waive the
requirement of punctual payment and performance or constitute a novation in any respect. Payments
received after 2:00 o’clock p.m. central standard time shall be deemed to be received on, and shall
be posted as of, the following business day. Whenever any payment under this Note or any other
Loan Document falls due on a Saturday, a Sunday or another day on which the offices of Lender are
not open for the conduct of its banking business at the place where this Note is payable, such
payment may be made on the next succeeding day on which the offices of Lender are open for such
business.

     Section 7 Events of Default. The occurrence of any one or more of the following shall
constitute an “Event of Default” under this Note:

          (a) Borrower fails to pay when and as due and payable any amounts payable by Borrower to
Lender under the terms of this Note and such amount remains unpaid beyond a period of ten (10) days
after written notice of such default is given by Lender to Borrower.

          (b) Any covenant, agreement or condition in this Note is not fully and timely performed,
observed or kept, subject to any applicable grace or cure period set forth in the Loan Documents.

          (c) An Event of Default (as therein defined) occurs under any of the Loan Documents other than
this Note (subject to any applicable grace or cure period), including without limitation the
Mortgage and Loan Agreement.

          Section 8 Remedies. Upon the occurrence of an Event of Default, Lender may at any
time thereafter exercise any one or more of the following rights, powers and remedies:

          (a) Lender may accelerate the Maturity Date and declare the unpaid principal balance and
accrued but unpaid interest on this Note, and all other amounts payable hereunder and under the
other Loan Documents, at once due and payable, and upon such declaration the same shall at once be
due and payable.

          (b) Lender may set off the amount due against any and all accounts, credits, money, securities
or other property now or hereafter on deposit with, held by or in the possession of Lender to the
credit or for the account of Borrower, without notice to or the consent of Borrower.

          (c) Lender may exercise any of its other rights, powers and remedies under the Loan Documents
or at law or in equity.

     Section 9 Remedies Cumulative. All of the rights and remedies of Lender under this
Note and the other Loan Documents are cumulative of each other and of any and all other rights at
law or in equity, and the exercise by Lender of any one or more of such rights and remedies shall
not preclude the simultaneous or later exercise by Lender of any or all such other rights and
remedies. No single or partial exercise of any right or remedy shall exhaust it or preclude any
other or further exercise thereof, and every right and remedy may be exercised at any time and from
time to time. No failure by Lender to exercise, nor delay in exercising, any right or remedy shall
operate as a waiver of such right or remedy or as a waiver of any Event of Default.

3

 

     Section 10 Costs and Expenses of Enforcement. Borrower agrees to pay to Lender on
demand all costs and expenses incurred by Lender in seeking to collect this Note or to enforce any
of Lender’s rights and remedies under the Loan Documents, including court costs and reasonable
attorneys’ fees and expenses, whether or not suit is filed hereon, or whether in connection with
bankruptcy, insolvency or appeal.

     Section 11 Service of Process. Borrower hereby consents to process being served in
any suit, action, or proceeding instituted in connection with this Note by the mailing of a copy
thereof by certified mail, postage prepaid, return receipt requested, to Peak Resorts, Inc., at its
address specified in the Loan Agreement. Borrower irrevocably agrees that such service shall be
deemed to be service of process upon each party executing this Note as Borrower in any such suit,
action, or proceeding. Nothing in this Note shall affect the right of Lender to serve process in
any manner otherwise permitted by law and nothing in this Note will limit the right of Lender
otherwise to bring proceedings against Borrower in the courts of any jurisdiction or jurisdictions,
subject to any provision or agreement for arbitration or dispute resolution set forth in the Loan
Agreement.

     Section 12 Heirs, Successors and Assigns. The terms of this Note and of the other
Loan Documents shall bind and inure to the benefit of the heirs, devisees, representatives,
successors and assigns of the parties. The foregoing sentence shall not be construed to permit
Borrower to assign the Loan except as otherwise permitted under the Loan Documents.

     Section 13 General Provisions. Time is of the essence with respect to Borrower’s
obligations under this Note. Borrower and each party executing this Note as Borrower hereby
severally (a) waive demand, presentment for payment, notice of dishonor and of nonpayment, protest,
notice of protest, notice of intent to accelerate, notice of acceleration and all other notices
(except any notices which are specifically required by this Note or any other Loan Document),
filing of suit and diligence in collecting this Note or enforcing any of the security herefor; (b)
agree to any substitution, subordination, exchange or release of any such security or the release
of any party primarily or secondarily liable hereon; (c) agree that Lender shall not be required
first to institute suit or exhaust its remedies hereon against Borrower or others liable or to
become liable hereon or to perfect or enforce its rights against them or any security herefor; (d)
consent to any extensions or postponements of time of payment of this Note for any period or
periods of time and to any partial payments, before or after maturity, and to any other indulgences
with respect hereto, without notice thereof to any of them; and (e) submit (and waive all rights to
object) to non-exclusive personal jurisdiction of any state or federal court sitting in the state
and county in which the Property is located for the enforcement of any and all obligations under
this Note and the other Loan Documents; (f) agree that their liability under this Note shall not be
affected or impaired by any determination that any title, security interest or lien taken by Lender
to secure this Note is invalid or unperfected; and (g) hereby subordinate to the Loan and the Loan
Documents any and all rights against Borrower and any security for the payment of this Note,
whether by subrogation, agreement or otherwise, until this Note is paid in full. A determination
that any provision of this Note is unenforceable or invalid shall not affect the enforceability or
validity of any other provision and the determination that the application of any provision of this
Note to any person or circumstance is illegal or unenforceable shall not affect the enforceability
or validity of such provision as it may apply to other persons or circumstances. This Note may not
be amended except in a writing specifically intended for such purpose and executed by the party
against whom enforcement of the amendment is sought. Captions and headings in this Note are for
convenience only and shall be disregarded in construing it. This Note and its validity,
enforcement and interpretation shall be governed by the laws of the State of Missouri (without
regard to any principles of conflicts of laws) and applicable United States federal law. Whenever
a time of day is referred to herein, unless otherwise specified such time shall be the local time
of the place where payment of this Note is to be made. The words “include” and “including” shall
be interpreted as if followed by the words “without limitation.”

4

 

     Section 14 Notices. Any notice, request, or demand to or upon Borrower or Lender
shall be deemed to have been properly given or made when delivered in accordance with the terms of
the Loan Agreement regarding notices.

     Section 15. Joint and Several Liability. The liabilities and obligations of each of
the undersigned shall be joint and several liabilities and obligations. The joint and several
obligations of each of the undersigned under this Note shall be absolute and unconditional and
shall remain in full force and effect until the entire principal, interest, penalties, premiums and
late charges, if any, on this Note and all additional payments, if any, due pursuant to any other
Loan Document (collectively, the “Obligations”) shall have been paid and, until such
payment has been made, shall not be discharged, affected, modified or impaired on the happening
from time to time of any event, including, without limitation, any of the following, whether or not
with notice to or the consent of any of the undersigned: (a) the waiver, compromise, settlement,
release, termination or amendment (including, without limitation, any extension or postponement of
the time for payment or performance or renewal or refinancing) of any or all of the Obligations or
agreements of any of the undersigned under this Note or any other Loan Document; (b) the failure to
give notice to any or all of the undersigned of the occurrence of a default under the terms and
provisions of this Note or any other Loan Document; (c) the release, substitution or exchange by
the holder of this note of any collateral securing any of the Obligations (whether with or without
consideration) or the acceptance by the holder of this Note of any additional collateral or the
availability or claimed availability of any other collateral or source of repayment or any
nonperfection or other impairment of any collateral; (d) the release of any person primarily or
secondarily liable for all or any part of the Obligations, whether by Lender or any other holder of
the note or in connection with any voluntary or involuntary liquidation, dissolution, receivership,
insolvency, bankruptcy, assignment for the benefit of creditors or similar event or proceeding
affecting any or all of the undersigned or any other person or entity who, or any of whose
property, shall at the time in question be obligated in respect of the Obligations or any part
thereof; or (e) to the extent permitted by law, any other event, occurrence, action or circumstance
that would, in the absence of this clause, result in the release or discharge of any or all of the
undersigned from the performance or observance of any obligation, covenant or agreement contained
in this Note. The joint and several Obligations of the undersigned to Lender under this Note shall
remain in full force and effect (or be reinstated) until Lender has received payment in full of all
Obligations and the expiration of any applicable preference or similar period pursuant to any
bankruptcy, insolvency, reorganization, moratorium or similar law, or at law or equity, without any
claim having been made before the expiration of such period asserting an interest in all or any
part of any payment(s) received by Lender. The undersigned expressly agree that Lender shall not be
required first to institute any suit or to exhaust its remedies against any of the undersigned or
any other person or party to become liable hereunder or against any collateral, in order to enforce
this Note; and expressly agree that, notwithstanding the occurrence of any of the foregoing, the
undersigned shall be and remain, directly and primarily liable for all sums due under this note and
under the loan documents. On disposition by Lender of any property encumbered by any collateral,
the undersigned shall be and shall remain jointly and severally liable for any deficiency.

     Section 16. Authority. Each of the undersigned representatives of Borrower represent
that Borrower has full power, authority and legal right to execute, deliver and perform its
obligations pursuant to this Note, the Mortgage, and the other Loan Documents and they constitute
the valid and binding obligations of Borrower.

     Section 17 No Usury. It is expressly stipulated and agreed to be the intent of
Borrower and Lender at all times to comply with applicable state law or applicable United States
federal law (to the extent that it permits Lender to contract for, charge, take, reserve, or
receive a greater amount of interest than under state law) and that this Section shall control
every other covenant and agreement in this Note and the other Loan Documents. If applicable state
or federal law should at any time be judicially

5

 

interpreted so as to render usurious any amount called for under this Note or under any of the
other Loan Documents, or contracted for, charged, taken, reserved, or received with respect to the
Loan, or if Lender’s exercise of the option to accelerate the Maturity Date, or if any prepayment
by Borrower results in Borrower having paid any interest in excess of that permitted by applicable
law, then it is Lender’s express intent that all excess amounts theretofore collected by Lender
shall be credited on the principal balance of this Note and all other indebtedness secured by the
Mortgage, and the provisions of this Note and the other Loan Documents shall immediately be deemed
reformed and the amounts thereafter collectible hereunder and thereunder reduced, without the
necessity of the execution of any new documents, so as to comply with the applicable law, but so as
to permit the recovery of the fullest amount otherwise called for hereunder or thereunder. All
sums paid or agreed to be paid to Lender for the use or forbearance of the Loan shall, to the
extent permitted by applicable law, be amortized, prorated, allocated, and spread throughout the
full stated term of the Loan.

ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING
REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE. TO
PROTECT YOU (BORROWER) AND US (LENDER) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY
AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE
COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE
IN WRITING TO MODIFY IT.

BORROWER AND LENDER HEREBY AFFIRM THAT THERE IS NO UNWRITTEN ORAL LOAN AGREEMENT BETWEEN
BORROWER AND LENDER WITH RESPECT TO THE SUBJECT MATTER HEREOF.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

6

 

     IN WITNESS WHEREOF, Borrower has duly executed this Note as of the date first above written.

	 	 	 	 	 
	 	Borrower:

PEAK RESORTS, INC.,

a Missouri corporation

 	 
	 	By:  	/s/ Stephen J. Mueller, Vice-President
 	 
	 	 	Stephen J. Mueller, Vice-President 	 

	 	 	 	 	 
	 	L.B.O. HOLDING, INC.,

a Maine corporation

 	 
	 	By:  	/s/ Stephen J. Mueller, Vice-President
 	 
	 	 	Stephen J. Mueller, Vice-President 	 

7

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