Document:

exv10w7

Exhibit 10.7

MODIFICATION AGREEMENT

(Mt. Snow Development Loan)

     This MODIFICATION AGREEMENT (the “Agreement”) is made and entered into as of the 1st day of
April, 2010 (the “Effective Date”), by and between PEAK RESORTS, INC., a Missouri
corporation (“Peak”), MOUNT SNOW, LTD., a Vermont corporation (“Mount Snow”, and
together with Peak, collectively, the “Borrower”) and EPT MOUNT SNOW, INC., a Delaware
corporation (“Lender”).

RECITALS

     A. The Lender has previously extended a loan to the Borrower in the amount of
Twenty-Five Million Dollars ($25,000,000.00) (“the Loan”).

     B. The Loan is evidenced by a Promissory Note (Mount Snow Development Land Loan) from Borrower
dated April 4, 2007 in favor of Lender in the original principal amount of Twenty-Five Million
Dollars ($25,000,000.00) (the “Original Note”).

     C. As of the Effective Date, accrued and unpaid interest on the Loan owed to Lender is
$8,695,400.00 (the “Unpaid Accrued Interest”).

     D. Borrower has requested, and Lender has agreed, subject to the terms and conditions in this
Agreement, to extend the Maturity Date, and to increase the Original Note amount by Sixteen Million
Dollars ($16,000,000.00) (the “Additional Loan Proceeds”). The Additional Loan Proceeds
shall include all Unpaid Accrued Interest.

     E. Borrower and Lender are parties to that certain Post-Closing Agreement dated April 4, 2007 (the
“Post-Closing Agreement”).

     NOW THEREFORE, the Lender and the Borrower, for good, sufficient and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, agree as follows:

     1. Recitals.
The foregoing recitals are hereby incorporated by reference. Capitalized terms used but not otherwise defined herein shall have the meaning given in the
Original Note.

     2. Increase In Note Amount. All references to “Twenty-Five Million Dollars
($25,000,000.00)” are hereby deleted and replaced with “Forty-One Million Dollars
($41,000,000.00)”.

     3. Maturity Date; Principal & Interest Payments. Section 1 of the Original Note is hereby
deleted as of the Effective Date and replaced with the following: Prior to maturity,
accrued and unpaid interest shall be due and payable in arrears on the 1st day of each month
commencing on May 1, 2010. The entire principal balance of this Note then unpaid, together with all
accrued and unpaid interest and all other amounts payable hereunder and under this Note, shall be
due and payable in full on April 1, 2012 (the “Maturity Date”), the final maturity of this
Note. Lender may, in its sole discretion, elect to extend the Maturity Date for a period of

 

 

one (1) year following written request by Borrower. Debt service payable in connection with the
Loan shall be governed by that certain Consolidated, Amended and Restated Debt Service Reserve and
Security Agreement of even date herewith, of which both Borrower and Lender are parties thereto.

     4. Borrowing of Additional Loan Proceeds. Borrower may request and Lender may agree to lend
(within Lender’s sole discretion) the Additional Loan Proceeds requested by Borrower from time to
time upon fifteen (15) days advance written notice to the Lender which amounts, when added to all
amounts previously borrowed under the Original Note (including all accrued interest), shall not
exceed Forty-One Million Dollars ($41,000,000.00) (an
“Additional Loan Advance”). The Borrower may
make its written requests for an advance of Additional Loan Proceeds
(an “Advance”) to Lender from
time to time and at any time on or before the Maturity Date, and in response Lender may, in its
sole and absolute discretion, make future Additional Loan Advances of the Additional Loan Proceeds
to the Borrower within fifteen (15) days of each such request. The Additional Loan Proceeds are to
be used exclusively for purposes approved by Lender in its sole discretion and on terms and
conditions acceptable to Lender in its sole and absolute discretion.

     5. Loan Agreement Advances. Borrower and Lender agree that following Borrowers obtaining
financing from the Vermont Economic Development Authority for the construction of snow making
equipment, retention ponds, snow making equipment, and chair lifts, the Lender shall have no
liability to make any advances pursuant to that certain Loan Agreement dated April 4, 2007 by and
between Lender and Borrower, as modified by First Modification Agreement dated June 30, 2009.

     6. Modification to the Post-Closing Agreement. Schedule A to the Post-Closing Agreement is
hereby deleted and replaced with Schedule A attached hereto.

     7. Modification of Other Loan Documents. Each of the other Loan Documents is hereby
modified such that references to the Original Note shall mean henceforth refer to the Original Note
as modified by this Agreement, together with any and all extensions, modifications, substitutions,
replacements or renewals thereof and judgments in enforcement thereof

     8. No Other Modifications. Except as expressly set forth herein, or necessary to
incorporate the modifications and amendments herein, all the terms and conditions of the Loan
Documents shall remain unmodified and in full force and effect, and Borrower confirms and ratifies
all such documents and agrees to perform and comply with the terms and conditions of the Loan
Documents, as modified herein.

     9. Conditions Precedent. It shall be a condition precedent to the effectiveness of this
Agreement that (i) Borrower shall have delivered evidence of its authority to enter into this
Agreement as well as the capacity of the individuals executing this Agreement on its behalf; (ii)
no event of default shall exist under the Note, the Mortgage or any other Loan Document; and
(iii) Borrower shall have delivered such other items to the Lender as it may reasonably request.

     10. Representations and Warranties. The Borrower hereby represents and warrants that (i) it
has the authority to enter into this Agreement and, upon execution by the Borrower, this

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Agreement shall be an enforceable obligation of the Borrower, (ii) there have been no amendments or
modifications to the Borrower’s organizational documents since such documents were certified and/or
delivered to the Lender in connection with the closing of the Loan
and (iii) to Borrower’s
knowledge, no default or Event of Default currently exists under the Loan Documents.

     11. No Impairment. Nothing in this Agreement shall be deemed to or shall in any manner
prejudice or impair the Loan Documents. This Agreement shall not be deemed to be nor shall it
constitute any alteration, waiver, annulment or variation of the liens and encumbrances of the
Mortgage, or the terms and conditions of or any rights, powers, or remedies under the Loan
Documents, except as expressly set forth herein.

     12. Applicable Law. This Agreement shall be governed by and construed in accordance with
the internal laws of the State of Missouri.

     13. Binding Agreement. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns.

     14. Waiver of Claims and Defenses. The Borrower acknowledges, as of the execution date of
this Agreement, its obligation for full payment of the amount outstanding under the Note hereby
waives and releases any and all claims, defenses or rights of set-off, known or unknown, existing
as of the execution date, which may diminish its obligation of repayment under the Note or which in
any manner arise out of or relate to any Loan Document.

     15. Counterparts. This Agreement may be executed in separate counterparts and all such
counterparts when combined shall constitute one agreement.

     16. NO ORAL AGREEMENTS. ORAL AGREEMENTS OR
COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FOREBEAR 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 ANY WAY RELATED TO THE
CREDIT AGREEMENT. TO PROTECT YOU, BORROWER, AND US, LENDER,
FROM MISUNDERSTANDING OR DISAPPOINTED, ANY AGREEMENTS WE
REACH COVERING SUCH MATTERS AND 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.

[Signatures appear on next page]

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and
year first above written.

	 	 	 	 	 
	 	“LENDER”

EPT MOUNT SNOW, 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 	 
	 
	 	MOUNT SNOW, LTD.,

a Vermont corporation

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

4exv10w8

Exhibit
10.8

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”), MOUNT SNOW,
LTD., a Vermont corporation (“Mount Snow”, and together with Peak, collectively, the
“Borrower”) and EPT MOUNT SNOW, INC., a Delaware corporation (“Lender”).

RECITALS

     A. Mount Snow 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 Snow, located in
Wilmington, Vermont, 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, Mount Snow ski
facility (the “Ski Facility”), and the Mount Snow Golf Club (the “Golf Course”)(the
Hotel, Ski Facility, and Golf Course, together with all other ancillary or related structures and
improvements 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 Fifty Seven Million Eight Hundred
Thousand Dollars ($57,800,000.00) (the “Loan”) for the purpose of paying certain approved
costs and expenses of acquiring the stock of Mount Snow, purchasing certain equipment necessary for
the operations of Mount Snow, constructing Improvements, and constructing a pipeline for water
service (the “Pipeline”) to nearby Somerset Reservoir sufficient to serve the Ski
Facility’s snowmaking needs, which pipeline shall be located on certain lands owned by the United
States Forest Service (the “Forest Service”) and TransCanada Hydro Northeast, Inc.
(“TransCanada”).

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,

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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 substance
reasonably satisfactory to Lender), including, without limitation, (a) annual balance sheets and
income statements of Borrower and Mount Snow 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 Mount Snow 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 Mount Snow 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 Mount Snow.

     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. Mount Snow 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

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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
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 Mount Snow; (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

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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 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 Mount Snow (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

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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
Requirements evidenced by documents, agreements and instruments specifically entered into by
Borrower or Mount Snow (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

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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.

     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 Snow Ski Resort) (the “Note”) of even
date herewith in the amount of Fifty Seven Million Eight Hundred Thousand Dollars
($57,800,000.00), executed by Borrower and Mount Snow 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. Vermont Mortgage, Assignment of Rents and Security Agreement
(the “Mortgage”) encumbering the Project and Mount Snow’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 Mount Snow, and evidencing a first
lien on the Mortgaged Property, subject only to the Permitted Exceptions.

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     (c) Assignment of Rents. Assignment of Rents, Leases and Leasing Agreements
from Mount Snow 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”).

     (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 Mount Snow and
agreements collaterally assigned by Borrower and Mount Snow, including, without limitation,
uniform commercial code financing statements (“UCCs”).

     (f) Assignment of Permits and Licenses. Assignment of Permits and Licenses
from Mount Snow 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,
Mount Snow, 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 First American Title Insurance Company (the “Title Company”) in the
aggregate face amount of $82,800,000.00 (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
Mount Snow 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

8

 

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 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 Vermont Secretary of State with respect to
all names used by Mount Snow. 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 Mount Snow.

     (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 Mount Snow 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.

9

 

     (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
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) Agreement With United States Forest Service and TransCanada With Respect to
Pipeline. Borrower shall have provided Lender an agreement with Forest Service and
TransCanada, in form an content satisfactory to Lender in its sole discretion, with respect
to the construction of the Pipeline, together with any other approvals Lender deems
necessary from the Forest Service with respect to the operation of the Ski Facility on
Forest Service lands and its consent to the Mortgage.

     (l) 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.

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     (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 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.

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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, including without limitation the construction of the Pipeline, 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 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

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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, 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.

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     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,
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

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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.

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 $57,800,000.00. 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 Mount Snow, 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.

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     (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 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

16

 

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.

     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

17

 

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.

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

18

 

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 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

19

 

     (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

     (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

20

 

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.

     (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.

21

 

     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 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, Mount Snow, 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.

22

 

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 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.

23

 

     (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 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: Steve 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 Snow, Inc.

c/o Entertainment Properties Trust

30 West Pershing Road, Suite 201

Kansas City, MO 64108

24

 

with a courtesy copy to:

Timothy Laycock, Esq.

Stinson Morrison Hecker LLP

1201 Walnut Street, Suite 2600

Kansas City, Missouri 64106-2150

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

25

 

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 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 Mount
Snow, consolidated statements of income, retained earnings and cash flows of Borrower and Mount
Snow 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 Mount Snow 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

26

 

each interim quarterly fiscal period of each fiscal year of Borrower and Mount Snow, unaudited
consolidated statements of income, retained earnings and cash flows of Borrower and Mount Snow 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 Mount Snow, as 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 Mount Snow 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 Mount Snow,
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 Mount Snow stating that such items are true, correct, accurate and completely and fairly
present the financial condition and results of the operations of Borrower and Mount Snow.

     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 SNOW, 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 	 
	 	 	 	 
	 
	 	MOUNT SNOW, LTD.,

a Vermont 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

A-1

 

EXHIBIT A

LEGAL
DESCRIPTION OF OWNED LAND

APPENDIX A

FIRST WISCONSIN PARCELS

Being all and the same lands premises and conveyed to Mt. Snow Ltd. by First Wisconsin
Mortgage Trust by deed dated August 5, 1977 and recorded at Book 40, Pages 1-43 of the
Dover Land Records, and further identified in said Deed as Parcels One through Parcel Thirteen, as
follows :

NOTE: References to acreage numbers are provided for assistance in identifying the
parcel and are not intended to represent the size or status of the parcel as it exists
at this time.

	 	 	 

	PARCEL ONE

	 	14.42 acres
	PARCEL TWO

	 	50.07 acres
	PARCEL THREE (Snow Vidda Parcel)

	 	23.29 acres
	PARCEL FOUR (Base Lodge Parcel

	 	328.26 acres
	PARCEL FIVE

	 	9.38 acres
	PARCEL SIX

	 	25.02 acres
	PARCEL SEVEN

	 	1.10 acres
	PARCEL EIGHT

	 	14.22 acres
	PARCEL NINE (Hescock Parcel)

	 	58.41 acres
	PARCEL TEN (Hosea Mann Parcel)

	 	26.33 acres
	PARCEL ELEVEN

	 	717.21 acres
	PARCEL TWELVE (Hosea Mann Parcel)

	 	143.13 acres
	PARCEL THIRTEEN (Hawkins Parcel)

	 	14.70 acres

EXCEPTING
from the above-referenced lands conveyed by First Wisconsin Mortgage Trust to Mount
Snow, Ltd. the following (Parcel references are to the Parcels as they are listed in the
above-referenced August 5, 1977 First Wisconsin Mortgage Trust deed):

	 	 	 

	PARCEL TWO

	 	Ltd. Warranty Deed to North & Peterson at Book 103, Page 448
(24.4A) and reacquired by Judgment Order at Book 134, Page 61.
	 
	 	 
	 

	 	Corrective Warranty Deed to Montgomery & Hibbert at Book 103, Page 296.
	 
	 	 
	 

	 	Easement Deed of Mount Snow, Ltd. to Snow Vidda Development,
LLC, dated October 26, 2005, and recorded at Book
255, Page 178 of
the Dover Land Records (Grants easement
for construction of a right
of way over the lands of Mount
Snow, Ltd’s tiered parking lot
within
the Snow Vidda Loop Road.)

 

 

	 	 	 

	PARCEL THREE

	 	Quit Claim Deed to Town of Dover at Book 143, Page 136.
	 
	 	 
	 

	 	Warranty Deed from Mount Snow, Ltd. to Snow Vidda Development
LLC, dated June 30, 2004, and filed for recording on November 1,
2004 in Book 242, Page 630 of the Dover Land Records. (14.22 acres)
	 
	 	 
	PARCEL FOUR

	 	Ltd. Warranty Deed to Seasons at Book 91, Page 73 (10.8A)
	 
	 	 
	 

	 	Corrective Warranty Deed to Seasons at Book 112, Page 364 (6.8A)
	 
	 	 
	 

	 	Warranty Deed from Mount Snow, Ltd. to Grand Summit Resort
Properties, Inc. dated September 25, 1997 and recorded in Book 155,
Page 560 of the Dover Land Records (8.91 acres).
	 
	 	 
	PARCEL EIGHT

	 	Warranty Deed to Greenspring at Book 144, Page 478.
	 
	 	 
	PARCEL NINE

	 	Easement Deed to Bears Crossing at Book 146, Page 241 (.23A —
area 3) and Book 146, Page 239 (.97A — area 2).
	 
	 	 
	PARCEL TEN

	 	Warranty Deed to Golf Course Development, Inc., dated March 14,
2003, and recorded at Book 215, Page 267 of the Dover Land Records
(11.63 acres)
	 
	 	 
	 

	 	Quit Claim Deed of Easements from Mount Snow, Ltd. to Golf Course
Development, Inc., dated July 28, 2005, recorded at Book 252, Page
314 of the Dover Land Records. (Extinguishes easements and rights on
and over Lot 3 on the Work Road and Emergency Road. as formerly
set forth in Schedule C(a) and (b) of the deed to Golf Course
Development at Book 215, Page 267.)
	 
	 	 
	PARCEL ELEVEN

	 	Limited Warranty Deed to Partridge Run Corporation at Book 71,
Page 35 of the Dover Land Records.
	 
	 	 
	 

	 	Corrective Warranty Deed to Kingswood of Vermont, Inc., dated July
25, 2004, and recorded at Book 239, Page 19 of the Dover Land
Records. (60 acres)
	 
	 	 
	PARCEL THIRTEEN

	 	Ltd. Warranty Deed to Airport Development Corporation at Book 71, Page 67.
	 
	 	 
	 

	 	Ltd. Warranty Deed to Partridge Run Corporation at Book 71, Page 35.

 

 

ALSO
EXCEPTED from the First Wisconsin Mortgage Trust parcels:

	1.	 	Warranty Deed from Mount Snow, Ltd. to Eugene and Barbara Brown dated
July 30,
1996 and recorded in Book 149, Page 367
of the Dover Land Records. (Conveys wedge
of land subject to prior encroachment.)
	 
	2.	 	Quit Claim Deed from Mount Snow, Ltd. to Greensprings of Vermont, Ind. dated June
12,1997 and recorded in Book 154, Page 417 of the Dover Land Records.
(Releases a portion of the Easement and right of way conveyed to Mount Snow,
Ltd. by West Dover
Development Corp at Book 112, Page 311 of the Dover Land Records.)
	 
	3.	 	Warranty Deed from Mount Snow, Ltd. to Careal, LLC, dated February 10,
2000, recorded at Book 179, Page 006 of the Dover Land Records.
	 
	4.	 	Quit Claim Easement Deed from Mount Snow, Ltd, to James S. and Barbara K.
Carter and Malcolm and Janet C. Pearsen, dated February 4, 2000, recorded at Book 179, Page
008 of the Dover Land Records.
	 
	5.	 	Warranty Deed from Mount Snow, Ltd. to North Branch Corporation dated April 12,
2005, and recorded at Book 250, Page 156 of the Dover Land Records.
	 
	6.	 	Warranty Deed from Mount Snow, Ltd. to Clock Tower Development, Inc., dated
April 28, 2006, and recorded at Book 260, Page 629 of the Dover Land Records.
	 
	7.	 	Easement Deed from Mount Snow, Ltd. to Clock Tower
Development, Inc., dated April 6, 2006, and
recoded at Book 260, Page 637 of the Dover Land Records. (For
200 ’
Well Protection Area extending onto lands of Mount Snow, Ltd.
from lands of Clock
Tower Development, Inc. conveyed at Book 260, Page 629.)
	 
	8.	 	Easement Deed from Mount Snow, Ltd, to Clock Tower Development, Inc., dated April 6,
2006, and recoded at Book 260, Page 640 of the Dover Land Records. (For access over the
North Access Road from its intersection with Route 100 to its intersection with Handle
Road, to provide ingress and egress to lands of Clock Tower Development, Inc. conveyed at
Book 260, Page 629.)

In addition to the First Wisconsin Mortgage Trust parcels, Mt. Snow Ltd. has acquired the
following:

	1.	 	An easement and right-of-way conveyed to Mount
Snow, Ltd. by The Seasons Assoc., dated February 9,
1987, recorded in Book 84, at Page 423 of the Town of Dover Land
Records.
	 
	2.	 	An easement and right-of-way conveyed to Mount Snow, Ltd. by Easement Deed
of North Branch Corp. dated June 23, 1989, recorded in Book 109, at Page 523 of
the Town of Dover Land Records.

 

 

	3.	 	Easement and right-of-way conveyed to Mount Snow by Robert B. Grinold by Easement Deed,
dated October 13, 1989, recorded in Book 112, at Page 313 of the Town of Dover Land Records.
	 
	4.	 	Easement and right-of-way conveyed to Mount Snow, Ltd. by Easement Deed of
Alpstatten Assoc., dated February 20, 1992, recorded in Book 131, at Page 219 of
the Town of Dover Land Records.
	 
	6.	 	Quit-Claim Deed from the Town of Dover, dated September 2, 1986, recorded in Book 78, at
Page 538 of the Town of Dover Land Records.
	 
	7.	 	Easement and right-of-way conveyed to Mount Snow, Ltd. by West Dover Development Corp.,
by instrument dated November 7, 1989, recorded in Book 112, at Page
311 of the Town of Dover Land Records.
	 
	8.	 	Warranty Deed from Grand Summit Resort Properties, Inc. to Mount Snow, Ltd., dated May
12, 1998, and recorded at Book 163, Page 96 of the Dover Land Records.

 

 

APPENDIX B

CARINTHIA SKI AREA LANDS

Being all and the same lands and premises conveyed to Mt. Snow Ltd. by Carinthia Ski Area, Inc. By
deed dated April 28, 1986 and recorded at Book 75 at Page 546 of the Dover Land
Records together with deed by Walter and Diane Stugger dated April 28, 1986 and recorded at Book
75 at Page 552 of the Dover Land Records.

EXCEPT from the aforesaid lands conveyed to Mt. Snow Ltd.
by Carinthia Ski Area, Inc. the lands and premises conveyed as
follows:

	1.	 	Lands conveyed to The Stugger Corporation by Warranty Deed dated December 21, 1987
and recorded at Book 94 at Page 403 of the Dover Land Records and corrected in a
Warranty Deed dated December 21, 1987 and recorded at Book 95 at Page 582.
	 
	2.	 	Lands conveyed by Mount Snow, Ltd. to MMTD Associates, LLC, by deed dated
October 8, 1998, recorded at Book 167, Page 077 of the Dover Land Records
(Conveys
3.43 ac. on Handle Road.)

In addition to the Carinthia Ski Area Inc. and Walter and Diane Stugger
parcels, Mt. Snow Ltd. has acquired the following:

	1.	 	Warranty Deed conveyed to Mount Snow Ltd. by Stugger Corporation dated December 21, 1987 and recorded at Book 94 at Page 404 of the Dover Land Records.
	 
	2.	 	Warranty Deed conveyed to Mount Snow Ltd. by Stugger Corporation (Parcel A, East
Somerset Village) dated December 13, 1993 and recorded at Book
138 at Page 261 of the Dover Land Records.

 

 

APPENDIX C

NEW ENGLAND PLANTATION

Being all and the same lands and premises conveyed to Mt. Snow Ltd. by New England
Plantation, Inc. by Warranty Deed dated November 30, 1995 and recorded at Book 152 at Page 134 of
the Wilmington Land Records, and being more particularly described as follows:

PARCEL ONE:

Being all and the same lands and premises as conveyed to New England Plantation, Inc., by Deed of
Alan S. Robinson, Sr., et al, dated May 26, 1987 and recorded May 26, 1987 at Book
112, Page 84 of the Wilmington Land Records, and in said Deed described as follows:

“Being a parcel of land on the westerly side of Route 100 containing 132.96 acres as
delineated on a survey entitled “Property of New England Plantation, Inc., Wilmington, Vt.”
dated May 15, 1987 and revised May 18, 1987, and prepared by Richard H. Joyce,
Land Surveyor, together with buildings and structures thereon, which premises are more
particularly described as follows:

Beginning at a point in an intersecting stone wall in the southerly boundary of
the premises hereinafter described, which point of beginning marks the northwest corner of
lands now of William H. Moulton and wife end the southwest corner of lands now of Alan
S. Robinson and wife; thence turning and running along the west bound of land
of Moulton and a stone wall S 05° 09’ 43” E 73.07 feet to an
intersecting stone wall for a corner;

thence turning and running along lands now or formerly of the Wilmington School District
marked by a stone wall, the following three courses and distances:

N 84° 50’ 07” W 273.75 feet, thence

N 04° 14’ 23” W 263.49 feet, and thence

N 84° 57’ 46” W 316.94 feet to a point;

thence continuing along lands now or formerly of Henry H. Wheeler et als, marked by a
stone wall, the following three courses and distances:

N 86° 07’13” W 122.47 feet, thence

N 89° 55’28” W 249.99 feet, and thence

N 88° 47’31” W 406.99 feet to a point;

thence continuing along lands now or formerly of Lilla A. Woffenden, marked by a
stone wall, the following four courses and distances:

N 89° 52’ 08” W 260.15 feet, thence

 

 

N 88° 38’ 49” W 183.62 feet, thence

N 86° 35’ 27” W 236.83 feet to a point, and thence

S 80° 54’ 42” W 190.03 feet to an intersecting stone wall for a corner;

thence turning and running along lands now or formerly of Lilla A. Woffenden, marked by a
stone wall, the following three courses and distances:

N 12° 33’ 31” W 218.42 feet, thence

N 04° 00’ 56” W 103.14 feet, and thence

N 01’ 50’ 07” E 171.08 feet to an intersecting stone wall for a corner;

thence turning and running along lands now or formerly of Lilla A. Woffenden and
marked by a stone wall, the following two courses and distances:

N 87° 25’ 13” W 237.06 feet, and thence

N 88° 15’ 41” W 214.53 feet to an intersecting stone wall for a corner;

thence turning and running along lands now or formerly of Lilla A. Woffenden, marked by a
stone wall, N 00° 10’ 24” E 341.77 feet to an intersecting
stone wall for a corner;

thence turning and running along lands now or formerly of Lilla A. Woffenden, marked by a
stone wall, N 89° 11’ 60” W 258.15 feet to an intersecting stone wall for
a corner;

thence turning and running along lands now or formerly of Harry J. Wellman, marked
by a stone wall, N 03° 45’ 27” E 219.53 feet to an
intersecting stone wall for a corner;

thence turning and running along lands now or formerly of Harry J. Wellman, marked by a
stone wall, the following three courses and distances:

N 36° 56’20” E 13.16 feet, thence

N 80° 46’ 48” E 210.34 feet, and thence

N 75° 58’ 56” E 234.60 feet to an intersecting
stone wall on the west edge of an old abandoned
highway for a corner;

thence turning and running along the west edge of the old abandoned highway, marked by a stone
wall, S 17° 33’ 41” E 49.25 feet to an intersecting stone wall for a corner;

thence turning and running across said old abandoned highway, marked by a stone wall, N
68° 40’ 35” E 42.66 feet to an intersecting atone wall for a corner;

thence turning and running along the east edge of the old abandoned highway, marked by a
stone wall, the following two courses and distances;

N 09° 48’35” W 152.57 feet, and thence

N 26° 30’ 49” W 235.03 foot to an intersecting stone wall for a corner;

 

 

thence turning and running along the southerly boundary of lands now or formerly of Harry J.
Wellman, marked by a stone wall, the following thirteen courses and distances:

N 84° 21’ 21” E 188.12 feet, thence

S 84° 04’ 16” E 96.75 feet, thence

S 85° 36’ 20” E 157.84 feet, thence

S 85° 49’ 34” E 185.81 feet, thence

N 79° 50’ 04” E 244.61 feet, thence

N 79° 05’ 33” E 68.41 feet, thence

S 84° 13’ 48” E 101.12 feet, thence

S 80° 41’ 39” E 190.05 feet, thence

S 80° 59’ 41” E 209.04 feet, thence

S 80° 29’ 06” E 191.19 feet, thence

S 82° 42’ 47” E 246.68 feet, thence

S 84° 13’ 53” E 133.42 feet, and thence

S 84° 20’46” E 272.58 feet to an intersecting stone wall for a corner;

thence turning and running along lands now or formerly of Harry J. Wellman, marked by a stone
wall, N 05° 35’ 50” E 200.08 feet to an intersecting stone wall
for a corner;

thence turning and running along the southerly boundary of lands now or formerly of Alice V.
Burns, marked in part by a stone well and a wire fence, the following six courses and
distances:

S 84° 58’ 05” E 324.87 feet, thence

S 87° 14’ 57” E 116.95 feet, thence

S 86° 00’ 06” E 218.98 feet, thence

S 84° 58’ 43” E 208.07 feet, thence

S 84° 31’ 03” E 152.43 feet, and thence

S 85° 42” 20” E 83.52 feet to a point;

thence continuing along lands now or formerly of Mary C. Von Schreiner and
husband the following seven courses and distances:

S 84° 23’ 35” E along a stone wall 230.17 feet
to the end of the stone wall at the west side of the Von Schreiner house,

thence continuing S 83° 37’ 24” E along the south edge of the Von Schreiner
house and along a stone wall 207.19 feet to a point,

thence turning and running S 22° 57’26” E
88.39 feet, thence

S 30° 29’ 30” E 55.09 feet, thence

S 40° 54’ 53” E 112.53 feet, thence

S 40° 18’ 13” E 85.61 feet, and thence

S 25° 52’ 12” E 53.58 feet to a point on the west edge of the
existing highway right of way of Route 100;

 

 

thence turning und running along the westerly edge of the highway right of way of Route 100
the following seven courses and distances:

along the arc of a curve having a radius of
1,465.4 feet, 

an arc length of 19.95 feet, thence

S 00° 13’ 21” W 226.40 feet, thence

along the arc of a curve having a radius of 1,112.92 feet,

an
arc length of 281.5 feet, thence

S 14° 42’ 51” W 204.30 feet, thence

turning and running S 75° 17’ 08” E 8 feet, thence

running along the arc of a curve having a radius of 1,841.22 feet

an
arc length of 454.63 feet, and thence

S 23° 19’ 34” W 22.14 feet to the end of a stone wall
marking a corner;

thence turning and running along lands now or formerly of Richard A. and Georgi
Raymo, marked by a stone wall, the following two courses and distances:

N 86° 57’ 13” W 249.75 feet, and

N 87° 00’ 50” W 381.21 feet to point;

thence continuing along lands now or formerly of William M. Moulton and wife marked by a
stone wall N 88° 20’ 48” W 320.63
feet to the point and place of beginning.

Containing 132.96 acres, together with buildings thereon.

Meaning and intending to specifically EXCEPT AND RESERVE from the above described parcel
of land a parcel of land containing 3.31 acres conveyed to Mary C. Robinson and Alan
S. Robinson by warranty deed of Francis K. Howe and Ellen K. Cole and recorded in Book
67, Page 615 of the Wilmington Land Records, together with existing right of way, all of which
are more particularly delineated on the aforementioned survey.

Meaning and intending to convey all and the same land and premises known as the Sugar Lot conveyed
to Francis E. Howe, Ellen K.Cole, Alan S. Robinson and Mary Robinson and Alan S.
Robinson, Jr. and Travis F. Robinson as joint tenants with right of survivorship, by
warranty deed of Francis E. Howe and Ellen K. Cole dated and recorded May 2, 1983 in Book 92, Page
477 of the Wilmington Land Records, the said Alan S. Robinson having quit claimed his
interest by quit claim deed dated September 10, 1983 and recorded in Book 94, Page 17 of the
Wilmington Land Records, and the said Francis K. Howe having died March 30, 1987, and
the said Ellen K. Cole having died December 29, 1984.

Also meaning and intending to convey part of the same land and premises conveyed to Francis E.
Howe and Ellen K. Cole, as joint tenants with right of survivorship, by warranty deed
of Judith Warriner, Trustee, dated February 15, 1969, recorded February 19, 1969 in Book 46, Page
525 of the Wilmington Land Records, the said Ellen K. Cole

 

 

having died December 29, 1984, and the said Francis E. Howe having died March 30,
1987.

Also meaning and intending to convey all of the right, title and interest of the Estate of
Francis E. Howe in and to a parcel of land containing five acres, more or less, together
with appurtenant right of way as described in quit claim deed of Mary C.
Robinson and Shirley Cole Squiers as the only heirs and next of kin of Ellen K. Cole, dated
May 17, 1985 and recorded July 18, 1985 in Book 101, Page 478 of the Wilmington Land
Records, to which deed and the deeds, instruments and references therein referred to,
further reference may be had.

Being all of the real estate whereof the said Alan S. Robinson, Jr. and Travis F.
Robinson are seized and possessed in the said Town of Wilmington, County of Windham,
and State of Vermont.

Being part of the real estate whereof the said Francis B. Howe died seized and
possessed in said Town of Wilmington, County of Windham, and State of Vermont.”

     EXCEPTING AND RESERVING from the above described Parcel One a parcel of 4.3
acres, more or less, as conveyed by New England Plantation, Inc. to the Estate
of Francis B. Howe by instrument recorded September 24, 1987 at Book 114, Page 107 of
the Wilmington Land Records, to which Deed referenced may be had for a more particular description
thereof.

PARCEL TWO:

Being all and the same lands and premises as conveyed to New England Plantation, Inc., by
Deed of Alice V. Burns dated September 16, 1987, and recorded October 23, 1987,
at Book 114, Page 517 of the Wilmington Land Records, and being further described as follows:

Being the same lands and premises conveyed to Alice V. Burns
by Warranty Deed of Ian M.
Hay and Hazel F. Haughey Hay, husband and wife, dated and recorded
April 3, 1979, in Book 78, Page 30 of the
Wilmington Land Records, and described as follows:

Beginning at an iron pipe located at the intersection of the southerly line of Cold
Brook Road and the northerly line of lands now or formerly of Von Schreiner; thence
N 82° 28’ W 114.82 feet along the northerly line of Von Schreiner to
an iron pipe; thence S 3° 59’ W 190.2 feet along the westerly line of
Von Schreiner to an iron pipe in a stone wall, said iron pipe marks the point of
intersection of the westerly line of Von Schreiner and the northerly line of lands
now or formerly of Howe; thence along said stone wall, which stone wall marks a
portion of the northerly line of Howe N 70° 27’ 45” W 394.29 feet to a
point in a wire fence; thence along said wire fence and a second stone wall, said
fence and wall also mark a portion of the northerly line of Howe, N 70°
53’ 30” W 713.08 feet to an iron rod at the intersection of two stone
walls; thence N 18° 46’ 45” E 425.47 feet along a stone wall, said
stone wall marks a portion of the easterly line of land now

 

 

or formerly of Wellman to a point; thence continuing along the easterly line of
Wellmen N 19° 38” E 592.09 feet to an iron pipe at the intersection of the easterly
line of Wellman and the southerly line of Cold Brook Road; thence along the
southerly line of Cold Brook Road S 33° 02’ E 107.9 feet to a concrete highway
marker; thence continuing along the southerly line of Cold Brook Road S 30° 46’ 30”
E 721.10 feet to a point; thence continuing along the southerly line of
Cold Brook Road following a curve to the left, said curve having a
radius of 1,457.15 feet and an arc length of 605.01 feet, to the point and place of
beginning.

     Containing 14.64 acres of land.

The foregoing description is taken from a survey map entitled “Map of Property for Alice V.
Burns, Wilmington, Vermont, Office of Gerald B. Morrissey, Inc., Bennington, Vermont, June,
1979, Scale 1” = 100’.”

PARCEL THREE:

Being all and the same lands and premises as conveyed to New England Plantation, Inc., by
Quitclaim Deed of the Estate of Francis B. Howe, dated May 26, 1987, and recorded May 26, 1987, at Book 112, Page 82 of the Wilmington Land Records and in said Deed
described as follows:

Being all of the right, title and interest of the Estate of Francis
E. Howe in and to any land located east of the east boundary of Route 100 and the stone
wall on the east bank of the Deerfield River, so-called, and marked on the north by
extending the northerly boundary of the Howe premises located on the west side of Route 100
in a general easterly direction and bounded on the south by extending the
southerly boundary of the Howe premises on the west side of Route 100 in a general easterly
direction.

Meaning and intending to convey any interest that the Estate of Francis E. Howe may have in
any property located opposite and across the road from the Francis E. Howe homestead being
conveyed to the Grantee herein by deed of even date herewith.”

The above described Parcel Three is conveyed by Quitclaim only and without covenants of warranty.

 

 

Commercial Unit

Being all and the same lands and premises conveyed to Mount Snow, Ltd. by American Skiing
Company Resort Properties, Inc. by Warranty Deed dated April __, 2007, recorded
at Book __, Page __ of the Dover Land Records, and being more
particularly described as follows:

Being all and the same lands and premises conveyed to American Skiing Company Resort
Properties, Inc, by Grand Summit Resort Properties, Inc. by Warranty Deed dated August
16, 2001, recorded at Book 192, Page 109 of the Dover Land Records, and
being more particularly described as follows:

The Commercial Unit at the Mount Snow Grand Summit Resort Hotel and Conference Center is
comprised of all of the following:

Those portions of the Grand Summit Resort Hotel and Conference Center depicted as “COMMERCIAL
SPACE” on the following Floor Plans filed as part of the Declaration of
Condominium and Interval Ownership Interests dated February 25, 1998, recorded March
10, 1998 at Book 159, Page 245, as amended by Amendment dated February
27, 1998, recorded March 9, 1998 at Book 159, Page 372; as amended by Amendment dated March
5, 1998, recorded March 9, 1998 at Book 159, Page 374; and as amended by
Amendment dated August 16, 2001, recorded at Book 192, Page 105, all of the Dover Land Records:

Grand Summit Resort Hotel and Conference Center at Mount Snow, Dover, VT;
Condominium Documents; Ground Floor Plan; Sheet I of 5 dated
February 23, 1998 and filed as Map #524, Slide #418A in the Dover Land
Records.

Grand Summit Resort Hotel and Conference Center at Mount Snow, Dover, VT;
Condominium Documents; First Floor Plan; Sheet 2 of 5 dated February
23, 1998 and filed as Map #525, Slide #418B in the
Dover Land Records.

Grand Summit Resort Hotel and Conference Center at Mount Snow, Dover,
VT; Condominium Documents; Second Floor Plan; Sheet 3 of 5 dated
February 23, 1998 and filed as Map #526, Slide #418C in the Dover Land Records.

Grand Summit Resort Hotel and Conference Center at Mount Snow, Dover, VT;
Condominium Documents; Third Floor Plan; Sheet 4 of 5 dated
February 23, 1998 and filed as Map #527, Slide #418D in
the Dover Land Records.

An undivided 100% interest in the Commercial Common Areas and Facilities, as
defined in Section 2.14.10 of the Declaration, and undivided 33.38%
interest in the General Common Areas and Facilities, as defined in Section 2.14.12 of the
Declaration, and a 0% interest in the Residential Common Areas and Facilities as defined in
Section 2.14.11 of the Declaration.

 

 

EXHIBIT B

Permitted Exceptions

None other than those set forth in Schedule B of that certain Loan Policy of
Title Insurance Policy No. 210002051 VTLe issued by First
American Title Insurance Company.

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-1

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