Document:

exv10w23

Exhibit 10.23

SECOND AMENDMENT TO GROUND LEASE

     THIS SECOND AMENDMENT TO GROUND LEASE (this “Amendment”) is made and entered into this
31st day of January, 2008 (the “Effective Date”), by and between CROTCHED MOUNTAIN
PROPERTIES, L.L.C., a New Hampshire limited liability company (“Landlord”), and S N H
DEVELOPMENT, INC., a Missouri corporation (“Tenant”).

RECITALS

     A. Landlord and Tenant entered into that certain Ground Lease dated May 27,
2003, for the lease of the property therein described (the “Premises”), as
evidenced by that certain Notice of Lease recorded in the Hillsborough County
Registry of Deeds at Book 6958, Page 208 and amended by that certain First Amendment
to Ground Lease dated as of April 3, 20Q4, as evidenced by that certain Amended
Notice of Lease recorded in the Hillsborough County Registry of Deeds at Book 7220,
Page 498 (as amended, the “Ground Lease”).

     B. At the request of Tenant, EPT Crotched Mountain, Inc., a Missouri corporation
(“EPT”), has agreed to purchase from Donald H. Hardwick, Sr. and Terry D.
Schnare, all the membership interests in and to Landlord (collectively,
“Seller”), pursuant to a Membership Purchase Agreement of even date herewith
(the “Purchase Agreement”), and Seller has agreed to sell to EPT all of their
right, title and interest in and to Landlord.

     C. As a material inducement to EPT to enter into the Purchase and Agreement and
consummate the transactions contemplated thereunder, the parties have agreed to enter
into this Amendment and Peak Resorts, Inc., a Missouri corporation, has agreed to
executed and deliver to Landlord a Guaranty dated of even date herewith, guaranteeing
all of Tenant’s obligations under the Ground Lease.

          NOW, THEREFORE, in consideration of the above recitals, the terms, covenants and agreements
contained herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged by the parties hereto, the parties hereby agree as follows:

          1. Incorporation of Recitals. The foregoing recitals are hereby incorporated by reference.

          2. Capitalized Terms. All capitalized terms referred to but not otherwise defined
herein shall have the meaning assigned to them in the Ground Lease.

          3.
Annual Rent. Effective from and after February 1, 2008, and throughout the Lease
Term, Tenant shall pay Landlord Annual Rent, in an amount, per annum, equal to $37,380.38 through
and including January 1, 2009. During each subsequent Lease Year (including any Option Period, if
exercised) the Annual Rent shall increase by an amount equal to the lesser of (a) 1.5% multiplied
by the Annual Rent for the previous Lease Year or (b) the percentage increase in the CPI between
the CPI in effect during the first month of the Lease Year

 

 

immediately preceding the then applicable Lease Year and the first month of the then applicable Lease Year.

     (a) The term “Lease Year” as used in herein shall mean a period of 12 full
calendar months. The first Lease Year shall begin on February 1, 2008. Each succeeding Lease
Year shall commence on the anniversary of the first Lease Year.

     (b) “CPI” shall mean the Consumer Price Index for all Urban Consumers, U.S.
City Average, published by the Bureau of Labor Statistics of the United States Department of
Labor (base year 1982-84=100), or any successor index thereto.

          4. Monthly Payment of Rent. From and after February 1, 2008, Tenant shall pay
Landlord, during the term of the Lease, the Annual Rent in equal monthly installments on or before
the first day of each calendar month, in advance during such Lease Year. If the Annual Fixed Rent
is payable for a fraction of a month, the amount payable shall be a pro rata share of a full
month’s rent. The Annual Fixed Rent shall be prorated for any partial Lease Year. All payments of
Annual Rent, Additional Rent, and any other charges due to Landlord shall sent to the following
address:

Crotched Mountain Properties, L.L.C.

c/o Entertainment Properties Trust

30 West Pershing Road, Suite 201

Kansas City, Missouri 64108

Attn: Asset Management

     All other terms and conditions regarding Annual Rent remain unchanged.

          5. Purchase Agreement Indemnity. Tenant shall indemnify and hold harmless Landlord, at
all times from and after the Effective Date, against and in respect of any damages, including
without limitation professional costs of defense and attorneys’ fees, arising from or relating to
(a) any breach of any of the representations or warranties made by Seller in the Purchase
Agreement; (b) any breach of the covenants and agreements made by Seller under the Purchase
Agreement; and (c) any damage to Landlord resulting from the litigation described on Schedule
1 attached hereto.

          6. Indemnity. Tenant hereby agrees to indemnify and defend, at its sole cost and
expense, and hold EPT, its successors and assigns, harmless from and against and to reimburse EPT
and Landlord with respect to any and all claims, demands, actions, causes of action, losses,
damages, liabilities, costs and expenses (including, without limitation, reasonable attorney’s fees
and court costs) actually incurred of any and every kind or character, known or unknown, fixed or
contingent, asserted against or incurred by EPT and Landlord at any time and from time to time by
reason of or arising out of (a) the breach of any representation or warranty of Tenant set forth in
Section 6 of this Amendment; (b) the failure of Tenant, in whole or in part, to perform any
obligation required to be performed by Tenant pursuant to the Ground Lease or Promissory Note (as
defined below); or (c) the ownership, construction, occupancy, operation, use and maintenance by
Tenant or its agents of the Premises prior to the Effective Date. This indemnity applies, without
limitation, to the violation on or before the Effective Date of any

 

 

governmental laws or regulations in effect on or before the Effective Date and any and all matters arising out of any
act, omission, event or circumstance existing or occurring on or prior to the Effective Date
(including, without limitation, the presence on the Premises or release from the Premises of
Hazardous Materials disposed of or otherwise released prior to the Effective Date), regardless of
whether the act, omission, event or circumstance constituted a violation of any applicable
governmental laws or regulations at the time of its existence or occurrence. The provisions of this
Section shall survive the closing of the purchase and sale transaction of the Purchase Agreement
and shall continue thereafter in full force and effect for the benefit of EPT and Landlord, its
successors and assigns. Notwithstanding any provision of this Amendment to the contrary, Landlord
may exercise any right or remedy Landlord may have at law or in equity should Tenant fail to meet,
comply with or perform its indemnity obligations required by this Section.

               7. Representations and Warranties. To induce EPT to enter into the Purchase Agreement,
Tenant represents and warrants to Landlord and EPT as follows:

               (a) No written notice has been received from any insurance company that has issued a policy
with respect to any portion of the Premises and the improvements located thereon (collectively, the
“Property”) or from any board of fire underwriters (or other body exercising similar
functions), claiming any defects or deficiencies or requiring the performance of any repairs,
replacements, alterations or other work and as of the Effective Date no such written notice will
have been received which shall not have been cured. No written notice has been received by Tenant
from any issuing insurance company that any of such policies will not be renewed, or will be
renewed only at a higher premium rate than is presently payable therefor.

               (b) All improvements (including all utilities) have been, or as of the Effective Date will be,
substantially completed and installed in accordance with the plans and specifications approved by
the governmental authorities having jurisdiction to the extent applicable. Permanent certificates
of occupancy, all licenses, permits, authorizations and approvals required by all governmental
authorities having jurisdiction, and the requisite certificates of the local board of fire
underwriters (or other body exercising similar functions) have been, or as of the Effective Date
will be, issued for the Improvements and for all operations conducted thereon, and, as of the
Effective Date, where required, all of the same will be in full force and effect. The improvements,
as designed and constructed, substantially comply or will substantially comply with all statutes,
restrictions, regulations and ordinances applicable thereto, including but not limited to the
Americans with Disabilities Act and Section 504 of the Rehabilitation Act of 1973, as applicable.

               (c) The existing water, sewer, gas and electricity lines, storm sewer and other utility
systems are adequate to serve the current and contemplated utility needs of the Property. All
utilities required for the operation of the improvements enter the Premises through adjoining
public streets or through adjoining private land in accordance with valid public or private
easements. All approvals, licenses and permits required for said utilities have been obtained and
are in full force and effect. All of said utilities are installed and operating, or will be, and
all installation and connection charges have been or will be paid in full as of the Effective Date.

 

 

               (d) There are no structural defects in any of the buildings or other improvements constituting
the Property. The improvements, all heating, electrical, plumbing and drainage at, or servicing,
the Property and all facilities and equipment relating thereto are and, as of the Effective Date,
will be in good condition and working order and adequate in quantity and quality for the normal
operation of the Property. No part of the Property has been destroyed or damaged by fire or other
casualty. There are no unsatisfied written requests for repairs, restorations or alterations with
regard to the Property from any person, entity or authority, including but not limited to any
lender, insurance provider or governmental authority.

               (e) No work has been performed or is in progress at the Property, and no materials will have
been delivered to the Property that might provide the basis for a mechanic’s, materialmen’s or
other lien against the Property or any portion thereof, and all amounts due for such work and
material shall have been paid and all discharged to Purchaser’s satisfaction as of the Effective
Date.

          8. Default. Tenant shall be in default under the Ground Lease upon the occurrence of
any Event of Default under that certain Promissory Note dated as of March 10, 2006, wherein Tenant
promises to pay EPT the sum of Eight Million Dollars ($8,000,000.00) together with interest as
provided therein.

          9. Notices. The Landlord’s notice address in Section 29 is hereby deleted and replaced
with the following address to which any notices, demands or other communications to Landlord shall
be sent:

	 	 	 	 	 

	 

	 	Landlord:
	 	Crotched Mountain Properties, L.L.C.

c/o Entertainment Properties Trust

30 West Pershing Road, Suite 201

Kansas City, Missouri 64108

Attn: Asset Management
	 
	 	 	 	 
	 

	 	With copy to:
	 	Crotched Mountain Properties, L.L.C.

c/o Entertainment Properties Trust

30 West Pershing Road, Suite 201

Kansas City, Missouri 64108

Attn: General Counsel

          10. Affirmation of Ground Lease. Landlord and Tenant agree that except as specifically
modified herein, all the terms and provisions of the Ground Lease are in full force and effect. If
and to the extent that there is a conflict between the terms of this Amendment and the terms of the
Ground Lease, the terms of this Amendment shall control. All references herein or in the Ground
Lease to the “Ground Lease” shall mean and refer to the Ground Lease as amended by this Amendment.

          11. Counterparts. This Amendment may be executed at different times and in any number
of counterparts, each of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same agreement. Delivery of an executed counterpart of
a signature page to this Amendment by telecopier shall be as effective as delivery of a manually
executed counterpart of this Amendment. In proving this Amendment, it

 

 

shall not be necessary to produce or account for more than one such counterpart signed by the party against whom enforcement
is sought.

          12. Binding Effect. This Amendment shall be binding upon and inure to the benefit
of the parties and their respective successors and assigns.

          913 Third Party Beneficiary. Landlord and Tenant acknowledge that EPT is an
intended third party beneficiary to the Ground Lease and this Amendment.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

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

	 	 	 	 	 
	 	“Landlord”

CROTCHED MOUNTAIN PROPERTIES, L.L.C.,

a New Hampshire limited liability company

 	 

					
	 	By:  	EPT CROTCHED MOUNTAIN, INC., 

 a
 Missouri Corporation
 	 
	 

					
	 	By:  	/s/ Michael L. Hirons
 	 
	 	 	Michael L. Hirons, Vice President 	 

	 	 	 	 	 
	 	“Tenant”

S N H DEVELOPMENT, INC.,

a Missouri corporation

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

 

 

	 	 	 	 	 

SCHEDULE 1

LITIGATION PROCEEDINGS

By a Warranty Deed dated September 2, 2004, Landlord conveyed certain real estate located in the
Town of Francestown to Dave J. Blanchette and Tammie J. Blanchette (the “Blanchettes”),
which deed is recorded in the Hillsborough County Registry of Deeds, Book 7313, Page 0564 (the
“Deed”).

The Deed did not reserve access over the property conveyed to certain septic fields and other
improvements located on portions of the real estate covered by the Deed, which are used by
Mountainside at Crotched Mountain, an abutting condominium association (the “Association”).

During 2007 the Association sought access to the septic fields and other improvements for necessary
repairs and a dispute arose with the Blanchettes regarding access over the property conveyed by the
Deed. The Association and the Blanchettes are involved in litigation styled Mountainside at
Crotched Mountain v. David and Tammie Blanchette, Hillsborough County North Superior Court (Docket
No.                     ), which is still pending.

At the present time, the title insurance company which issued a title insurance policy in relation
to the property sold to the Blanchettes is defending and will be primarily liable for the costs of
any resolution of the dispute between the Association and the Blanchettes. It is expected, however,
that the title insurance company will seek indemnification against and/or from Landlord, in due
course.exv10w24

Exhibit 10.24

LEASE

     THIS LEASE (“Lease”) is made and entered into as of this 1st day of December, 2005 (the
“Effective Date”) by and between BIG BOULDER CORPORATION, (herein referred to as “Landlord”) and
JFBB SKI AREAS, INC., a Missouri corporation, (herein referred to as “Tenant”),

WITNESSETH:

     WHEREAS, Landlord desires to enter into a Lease with Tenant for the Leased Premises; and

     WHEREAS, Blue Ridge Real Estate Company simultaneously hereto desires to enter into a Lease
with Tenant for additional property known as the “Jack Frost Lease”; and

     WHEREAS, the Parties hereto entered into a Lease dated August 31, 2005 which Lease Agreement
is incorporated herein as though fully set forth at length.

     NOW THEREFORE, in consideration of the rents, covenants and conditions herein set forth,
Landlord and Tenant do hereby covenant, promise and agree as follows:

     1. Leased Premises. Landlord hereby demises unto Tenant and Tenant rents from
Landlord a certain parcel of land containing approximately 109 acres, more or less, (the
“Leased Premises” or “Property”) which premises are located in Kidder Township, Carbon County,
State of Pennsylvania, together with all improvements, buildings, structures, fixtures,
parking
lots, now or hereafter situated, placed, constructed or installed on the Leased Premises,
including
without limitation, any additions to, substitutions for, changes in or replacements of, the
whole or
any part thereof, and including without limitation, any improvements constructed by Tenant
(collectively, the “Improvements”). The Leased Premises are shown on Exhibit A which
is
attached hereto. The Leased Premises and the Improvements are collectively referred to herein
as the “Property” or “Leased Premises”.

     2. Term And Options To Extend.

          (a) Initial Term. The term of this Lease shall be for twenty-eight (28) years
commencing on December 1, 2005 (“Commencement Date”) and ending twenty-eight (28)
years following the Commencement Date (the “Initial Term”).

          (b) Definition of “Lease Term”. The phrase “Lease Term,” as used in this
Lease, shall mean the Initial Term of this Lease.

     3. Annual Rent — Additional Rent.

          (a) Annual Minimum Rent. Annual minimum rent for the Property (“Minimum Rent”) shall
be Two Hundred Thousand and 00/100 ($200,000.00) Dollars per annum, payable in consecutive monthly
installments of Fifty Thousand and 00/100 ($50,000.00)

 

 

Dollars beginning on the first day of January, 2006, and continuing on the first day of February
March and April without deduction or set-off, at the office of the Landlord. In subsequent years,
the entire Minimum Rent shall be paid in four (4) consecutive monthly payments beginning on the
first day of January of each year. The amount due each month will be twenty-five (25%) percent of
the total annual Minimum Rent due, adjusted as described in paragraph 3(d).

          (b) Additional Rent. All amounts which Tenant is required to pay pursuant to
this Lease (other than Annual Rent), together with any fine, penalty, interest and costs
(including
but not limited to reasonable attorneys fees and costs) which may be added for nonpayment or
late payment thereof, shall constitute additional rent (referred to herein as “Additional
Rent”).
If Tenant fails to pay any Additional Rent due under this Lease, then Landlord shall have the
right to pay the same and shall have all of the rights, powers and remedies with respect
thereto as
are provided herein or by law in the case of nonpayment of Annual Rent.

          (c) Late Charge. If any payment of Rent (including, without limitation, all
Minimum Rent and all Additional Rent) or any part thereof to be made by Tenant to Landlord
pursuant to the terms of this Lease is not received by Landlord by the tenth (10th)
day of any
month, a late charge of Five Cents ($0.05) for each dollar so overdue shall be paid by Tenant
for
the purpose of defraying the expense incident to handling such delinquent payment. Nothing
herein or in the imposition or acceptance of a late charge by Landlord shall be construed as a
waiver of any rights of Landlord arising out of any default of Tenant.

          (d) Rent Increase. The minimum rent shall be increased on January 1st of each year,
beginning January 1, 2007. The minimum rent shall be increased by the annual percentage increase in
the United States Bureau of Labor Statistics, Consumer Price Index for Urban Wage Earners and
Clerical Workers, All Items, Philadelphia, Pennsylvania—New Jersey (2002-2004 = 100) as of October
31 of each year times the prior years annual minimum rent. Each year’s rent increase shall not
exceed four (4%) percent of the prior year’s minimum annual rent.

          (e) Net Lease. All Annual Rent and Additional Rent under this Lease is absolutely net
to Landlord. All taxes, insurance, maintenance, repairs, including structural repairs and
replacement of HVAC systems assessments and other charges assessed, levied or applied on, against
or with respect to the Property, any part thereof, or with respect to the use and/or operation of
the Property shall be borne and paid by Tenant.

     4. Real Estate Taxes.

          (a) Payment. Commencing on the Effective Date, Tenant shall pay all ad valorem real
estate taxes and assessments attributable to the Property (“Taxes”) on or before the date that
such Taxes are due. Tenant’s tax share shall be the sum of (i) that percentage of real estate
taxes which is equal to the ratio of the land area leased by Tenant to the total land of the
Landlord for which the premises are a part of, and (i) the real estate taxes imposed as a result
of the improvements on the premises. As of the date hereof, the parties hereto agree that the
percentage for purposes of (i) hereinabove is one hundred percent (100%). Tenant shall pay
Landlord the amount of real estate taxes within twenty-five (25) days after Tenant receives a

2

 

statement from Landlord indicating the amount of real estate taxes to be paid by Tenant,
unless Tenant shall object to such calculation by Landlord, then Landlord and Tenant shall mutually
agree upon the amount of real estate taxes to be paid by Tenant and Tenant shall pay Landlord such
amount within ten (10) days after such agreement. Tenant’s liability for Taxes shall be prorated
for the years in which this Lease commences and terminates based on the number of days Tenant
occupies the Leased Premises during such years.

          (b) Challenge. Should either Landlord or Tenant initiate proceedings to contest the
validity or amount of any Taxes levied against the Property, the other party -will cooperate in
such proceedings and should such proceedings be successful, Tenant shall be entitled to any tax
refund or future abatement, after deducting there from payment of all reasonable out-of-pocket
expenses incurred by Landlord in any such proceeding, with any abatement or refund of real estate
taxes to be shared by the Landlord and Tenant in proportion to the adjustment attributable to the
Property, to the benefit of the Tenant, and to other property included in the same tax bill or
assessment lot, retained by the Landlord, to the benefit of the Landlord:

     5. Condition of Title and the Property. TENANT ACKNOWLEDGES THAT
LANDLORD HAS NOT MADE ANY REPRESENTATION OR WARRANTY AS TO THE
CONDITION, HABITABILITY, FITNESS FOR A PARTICULAR PURPOSE OR USE OR
OTHERWISE WITH RESPECT TO THE PROPERTY, THE TITLE OR ZONING OF THE
PROPERTY, THE STREET OR STREETS, SIDEWALKS, CURBS AND ACCESS WAYS
ADJOINING THE PROPERTY, THE COMMON AREAS, THE SURFACE AND
SUBSURFACE CONDITIONS THEREOF, AND THE PRESENT USES AND NON-USES
THEREOF. Tenant represents that it has examined the Property, the title thereto, the zoning
thereof, the street or streets, sidewalks, curbs and access ways adjoining them, the Common
Areas, the surface and sub-surface conditions thereof, the physical condition thereof and the
present uses and non-uses thereof, and Tenant accepts them in the condition or state in which
they now are, or any of them now is, without representation, covenant, or warranty, express or
implied, in fact or in law, by Landlord and without recourse to Landlord, as to the title
thereto,
encumbrances thereon, appurtenances, the nature, condition, or usability thereof or the use or
uses to which the same or any part thereof may be put. Tenant hereby releases Landlord from
and waives any and all claims Tenant now has or may at any time in the future have with
respect
to the condition of title and the Property as of the date of this Lease.

     6. Insurance.

          (a) Liability Insurance. Tenant shall maintain, from the Effective Date of this Lease
and during the entire term of this Lease and any extension thereof, a commercial general liability
policy of public liability and property damage insurance insuring the Property against any and all
claims for personal injury, including property damage in, on or about the Leased Premises with a
combined single limit per occurrence of not less than Ten Million ($10,000,000.00) Dollars,
provided, however, if the premium for the liability insurance hereunder shall exceed six percent
(6%) of the average total gross revenues of the last three ski seasons of Tenant, then Tenant
shall maintain an amount of liability insurance which Five Hundred Thousand ($500,000.00) Dollars
of premium would purchase or 6% of the gross

3

 

revenues whichever is greater. Such policy shall name Landlord and Landlord’s mortgagee, if
any, (and any Leasehold Mortgagee at its request) as additional insured, and shall contain a
clause that the insurer will not cancel or change the insurance without first giving Landlord,
Landlord’s Mortgagee, or any Leasehold Mortgagee, thirty (30) days prior written notice. The
deductible on the aforesaid policy shall be no less than Twenty-Five Thousand ($25,000.00)
Dollars. The insurance company of Tenant shall be rated A or better on the A. M. Best rating and
shall be a company doing business in Pennsylvania. The primary limit for the policy shall be One
Million Dollars at all times. The excess limit shall be Nine Million Dollars. All policies shall
be on an occurrence basis not on a claims made basis. All policies shall name Landlord or
Landlord’s Mortgagee as an additional insureds. All policies shall name any Planned Community,
Homeowner’s Association, Condominium Project or Condominium Association whose property is effected
by this Lease or any easements, rights of way, roads, or utilities rights in favor of Tenant as
additional insured. All changes in coverage, limits and/or carriers are to be approved by Landlord
at least sixty (60) days prior to any change.

          (b) All-Risk Insurance. Tenant shall maintain, from the Effective Date of this
Lease and during the entire term of this Lease and any extension thereof, a policy of “causes
of
loss — special form” all-risk property damage insurance upon the Improvements in an amount
equal to the full replacement value of the Improvements above the foundation walls. The policy
of insurance pursuant to this Section 6(b) shall insure and be payable to Tenant and shall
provide
for release of insurance proceeds to Tenant for restoration of loss. Such policy may also name
Landlord, Landlord’s mortgagee, or any Leasehold Mortgagee, upon its request, as an additional
insured as its interest may appear, by standard mortgagee clause if obtainable. If any
Leasehold
Mortgagee is named as an additional insured, such policy or policies shall provide that the
policy
will not be canceled except after thirty (30) days written notice to the Leasehold Mortgagee.

          (c) All risk and/or property insurance provided by Tenant shall be considered
“Fire Legal” Liability. Tenant shall specifically provide Three Million Dollars in limit
coverage
for the Ski Lodge and Rental Shop. All policies shall be on an occurrence basis not on a
claims
made basis. All policies shall name Landlord and Landlord’s Mortgagee as additional insureds.
The insurance company of Tenant shall be rated A or better on the A.M. Best rating and shall
be
a company doing business in Pennsylvania. A deductible of no less then Twenty-Five Thousand
($25,000.00) Dollars shall be required on the policy.

          (d) Every policy set forth above in section a, b and c above shall provide
Terrorist coverage.

          (e) General.

               (1) The insurance coverages required hereunder shall be carried with an insurance company or
companies licensed to do business in the State of Pennsylvania. Such insurance may be carried
under a blanket policy or policies covering other liabilities and locations of the Tenant. On or
before December 15 of each year, Tenant shall furnish Landlord evidence to indicate that the
foregoing insurance is in full force and effect and that the premiums therefor have been paid and
all renewal policies shall be delivered to Landlord within ten (10) days after receipt of same by
Tenant.

4

 

          (f) Tenant shall maintain Liquor Liability Insurance in an amount of no less than One
Million Dollars ($1,000,000.00), which insurance shall name Landlord as an additional insured.

     7. Representations, Warranties and Covenants of Tenant. Tenant represents,
warrants and covenants to Landlord that:

          (a) Tenant is a Missouri corporation duly organized and in good standing in
the state of its incorporation, which has duly qualified as a foreign corporation in the State
of
Pennsylvania. Tenant is a wholly-owned subsidiary of Peak Resorts, Inc., a Missouri
corporation. Tenant has the legal power, right and authority to enter into this Lease and
the
instruments to be executed by Tenant pursuant to this Lease, and to consummate the
transactions
contemplated hereby.

          (b) BBJF LQ, Inc. is a Pennsylvania corporation duly organized and in good
standing in the state of its incorporation. BBJF LQ, Inc. is a wholly-owned subsidiary of
Tenant. Tenant has the legal power, right and authority to enter into this Lease and the
instruments to be executed by Tenant pursuant to this Lease, and to consummate the
transactions
contemplated hereby.

          (c) All requisite action has been taken by Tenant in connection with Tenant’s
execution of this Lease and the instruments to be executed by Tenant pursuant to this Lease,
and
the consummation of the transactions contemplated hereby.

          (d) The individuals executing this Lease and the instruments to be executed
by Tenant pursuant to this Lease on behalf of Tenant have the legal power, right and actual
authority to bind Tenant to the terms and conditions of this Lease and such instruments.

     8. Landlord’s Representations and Warranties. Landlord represents, warrants
and covenants to Tenant that:

          (a) Landlord has the legal power, right and authority to enter into this Lease
and the instruments to be executed by Landlord pursuant to this Lease, and to consummate the
transactions contemplated hereby.

          (b) All requisite corporate action has been taken by Landlord in connection
with Landlord’s execution of this Lease and the instruments to be executed by Landlord
pursuant
to this Lease and the consummation of the transactions contemplated hereby.

          (c) The individuals executing this Lease and the instruments to be executed
by Landlord pursuant to this Lease on behalf of Landlord, have the legal power, right and
actual
authority to bind Landlord to the terms and conditions of this Lease and such instruments.

          (d) Neither the execution of this Lease nor the consummation of the
transactions contemplated hereby shall result in a breach of or constitute a default under any

5

 

agreement, document, instrument, or other obligation to which Landlord is a party or
by which Landlord may be bound, or under any law, statute, ordinance, rule,
governmental regulation or any writ, injunction, order or decree of any court or
governmental body, applicable to Landlord or to the Property or result in the
acceleration of any encumbrance pertaining to the Property.

          (e) Except as provided on 
Exhibit B, there is no claim, action, litigation,
arbitration, material dispute or other proceeding pending against Landlord which
relates to the
Property, the Leased Premises or the transactions contemplated hereby except as
disclosed in
writing to Tenant and, to Landlord’s actual knowledge, there is currently no
governmental
investigation, threatened litigation or arbitration proceedings to which Landlord
is, or would be,
a party which relates or would relate to the Property or the Leased Premises.

          (f) No attachments, execution proceedings, assignments for the benefit of
creditors, insolvency, bankruptcy, reorganization or other proceedings are pending
or threatened
against Landlord nor are any of such proceedings contemplated by Landlord.

          (g) There are no pending or, to Landlord’s actual knowledge, contemplated
condemnation or annexation proceedings affecting the Property or the Leased Premises
or any
part thereof.

          (h) Landlord has not received any notice of any violations, and to Landlord’s
actual knowledge, without inquiry, the Property and the Leased Premises is not in violation of
any federal, state or local law, ordinance or regulation relating to Hazardous Materials
(“Hazardous Materials”), industrial hygiene or the environmental conditions on, under or
about the Property or the Leased Premises including, but not limited to, soil and ground water
condition except as provided on Exhibit “N”. Hazardous Materials shall mean
any flammable explosives, radioactive materials, hazardous wastes or substances,
toxic wastes or substances and other related materials including without limitation
any substances defined as or included in the definition of “hazardous substances”,
“hazardous wastes”, “hazardous materials” or “toxic substances” under any applicable
federal, state or local laws or regulations.

          (i) Landlord has not received any notice of any violation, and to Landlord’s
actual knowledge, without inquiry, the Property and the Leased Premises are not in
violation of any law, ordinance, regulation, order or requirement applicable to the
Property or the Leased Premises including without limitation, requirements imposed
under any recorded covenants, conditions, restrictions, easements or other rights
affecting the Property or the Leased Premises.

          (j) Landlord shall not, after the execution hereof, either voluntarily or by
operation of law, allow any lien or encumbrance to be placed of record against all or
any portion of the Property or the Leased Premises or otherwise burden or cloud title
to the Property or the Leased Premises if such lien or encumbrance would interfere
with Tenant’s operation as a ski resort.

          (k) There being no leases of the Property existing, Landlord shall not, after
the execution hereof and while Tenant is not in default under this Lease, enter into
any new leases for the Property or any portion thereof, or otherwise grant or convey
any interest or occupancy

6

 

right to any party other than Tenant, without first receiving Tenant’s prior written consent,
which consent may be granted or withheld in Tenant’s sole and absolute discretion, except for
leases, interest or occupancies associated or related to Landlord’s developments.

          (l) Prior to the Commencement Date, Landlord shall not make any further additions or
modifications to the Property other than normal maintenance and repair and except for additions or
modifications in conjunction with Landlord’s developments.

          (m) Landlord is a duly constituted and validly existing corporation under the laws of the
State of Pennsylvania, duly qualified to do business in the state in which the property is
located, and has the full power to carry out the transactions contemplated by this Lease.

          (n) It is not necessary, under applicable law, that the Lease and/or a “short form” of lease
be recorded for the Lease to be effective.

          (o) This Lease does not violate or conflict in any way with the terms of any other lease
applicable to the Property or the terms of any reciprocal operating agreement, cross easement
agreement, restrictive covenants, or any other document.

     9. Repairs and Maintenance.

          (a) Throughout the Term, Tenant, at its sole cost and expense, shall make or
cause to be made all necessary or appropriate repairs, or replacements and renewals as may be
required to maintain the Property in a good condition (collectively, “Repairs” and the making
of
any Repairs being hereafter referred to as “Repair”). All Repairs shall be performed in a
good,
substantial and workmanlike manner. Repair shall include but not be limited to all structures
and
in ground infrastructure on, in or under the Property including structural repairs and
replacements to (i.e., roof, HVAC) wells, water lines, sewage lines, utility lines. If
Landlord for
its own exclusive use takes over the operation of any wells on the Property, then Landlord
shall
be solely responsible for the cost of repairs or replacement of such wells.

          (b) Landlord shall not be required to furnish any services or facilities or to
make any Repairs in, under, on or about the Property or any part thereof, Tenant hereby
assumes
the full and sole responsibility for all Repairs to, and for the condition, operation,
maintenance
and management of, the Property as of the Effective Date and through and during the Term.

          (c) Tenant’s contractors shall, prior to the commencement of their work and
not later than ten (10) days after the execution of their respective contracts but before any
work
is done on the Property, file stipulations against lien, which waivers shall be effective to
preclude
the filing of any mechanic’s liens on account of the work to be performed by any of Tenant’s
contractors, subcontractors or materialmen. Upon payment to each contractor, subcontractor, or
materialman, a waiver of liens shall be signed by each, providing proof of payment for
services
or materials furnished to the Property.

     10. Development of the Property.

7

 

          (a) Scope of Development Tenant will initially improve the Property by
constructing improvements necessary for the operation of a ski resort on the Property, the
scope
of which shall be determined by Tenant after approval of Landlord. Tenant shall deliver to
Landlord a scope or plan of improvement for review by Landlord. Landlord shall review and
approve or disapprove of the Tenant’s proposal within 45 days of submission of same by Tenant
to Landlord. Tenant shall perform all Improvements in compliance with all applicable laws. To
the extent that Tenant commences any improvements, Tenant shall complete it with reasonable
diligence and within a reasonable period. Tenant shall pay for all Improvements when and as
required by the parties that perform such improvements. Tenant shall timely obtain and
promptly deliver to Landlord all approvals and permits necessary or appropriate for any
improvements. All Improvements that Tenant constructs on the Property shall become part of
the Property.

          (b) Plans and Specifications. To the extent that Tenant obtains plans and
specifications or surveys (including working plans and specifications and “as-built” plans and
specifications and surveys) for any improvements, Tenant shall promptly give Landlord a copy,
subject to the terms of any agreement between Tenant and the applicable architect, engineer,
or
surveyor. Tenant shall exercise reasonable efforts to cause its agreements with such
professionals to permit these deliveries, which are for Landlord’s information only except to
the
extent, if any, this Lease otherwise expressly states.

          (c) Applications and Filings. Upon Tenant’s request, Landlord shall, without
cost to Landlord, promptly join in and execute any application or filing as Tenant may from
time
to time request, provided that: (1) such application or filing is in customary form and
imposes no
material obligations (other than obligations that are ministerial in nature or merely require
compliance with law) upon Landlord; and (2) no uncured Event of Default exists.

          (d) Other Cooperation with Approvals. Promptly upon Tenant’s request and
without charge to Tenant, Landlord shall furnish all information in its possession that Tenant
shall reasonably request and that is required in connection with the filing and prosecution of
any
applications and filings.

          (e) Landlord Nonappearance. Landlord shall not appear in opposition to any
action or application brought, sought, or defended by Tenant before any Government agency
arising out of any application or filing consistent with this Lease.

          (f) Tenant Nonappearance. Tenant shall not appear in opposition to any
action or application brought, sought or defended by Landlord before any Governmental agency
arising out of any application or filing consistent with this Lease, or the development by the
Landlord of other properties of Landlord, nor will Tenant interfere with Landlord’s
development
plans in any way.

     11. Utilities.

          (a) Landlord covenants and agrees that, as of the Effective Date, propane, electric,
telephone, water and sewer are available to the Leased Premises, in terms of

8

 

infrastructure availability, subject to the Tenant being responsible for any connection,
installation or activation costs associated with obtaining such utilities services from the
vendors involved; provided, further, Tenant shall pay as additional rent all water and sewer
charges assessed against it by Landlord, or their assigns. These assessments will include
Tenant’s share of reserve costs for future Improvements, repair and maintenance of the water and
sewer facilities. These costs will be assessed pursuant to the proposed Water Agreement between
Big Boulder Corporation, Midlake Homes Homeowner Associations, Blue Heron Homeowners Association
and Laurelwoods Homeowners Association and others, which agreement may be modified. Tenant
acknowledges receipt and approval of said proposed Agreement.

          (b) Landlord operates, through its subsidiaries, a sewage treatment plant. Landlord shall
retain the right to discharge, at no cost to Landlord, the effluent of the sewage treatment plant
on the Property by discharging the effluent onto the Property at any time, including the ski
season, by connecting said effluent to the snow-making facilities of Tenant and discharging the
effluent through the snow-making facilities of Tenant. Tenant will cooperate with Landlord or any
of its subsidiaries to comply with D.E.P. regulations for the discharge of the effluent onto the
Leased Premises.

     12. Governmental Regulations. Tenant shall observe and comply with all
requirements, rules, orders and regulations of the federal, state and municipal governments or
other duly constituted public authority affecting the Property, whether now existing or
existing in
the future. Tenant shall have the right, however, to contest in good faith, without cost to
Landlord, the validity or application of any such rule, order or regulation required to be
complied
with by Tenant in accordance with the foregoing, and may postpone compliance therewith so
long as such contest does not subject Landlord to criminal prosecution for non-compliance
therewith and further provided Tenant promptly pays all fines, penalties and other costs
imposed
on Landlord as a result of such non-compliance by Tenant Provided, nothing contained herein
shall interfere with or inhibit progress of any of Landlord’s development plans. Landlord
will
cooperate with Tenant in connection with any such contest at no cost to Landlord.

     13. Exculpation. Anything to the contrary in this Lease notwithstanding, the
covenants contained in this Lease to be performed by Landlord shall not be binding personally,
but instead, said covenants are made for the purpose of binding only the fee simple estate
which
Landlord owns in the Leased Premises.

     14. Damage and Destruction.

          (a) Obligation to Rebuild. In the event that, at any time during the Lease
Term, the Improvements located on the Property shall be damaged or destroyed (partially or
totally) by any casualty Tenant shall, at its expense, promptly and with due diligence,
repair,
rebuild and restore the same, as nearly as practicable, to the condition existing just prior
to such
damage or destruction, provided the repaired, rebuilt or replaced premises will have a value
not
less than its value of the damaged or destroyed structures just prior to said loss.

          (b) No Release of Tenant’s Obligations. No destruction of, or damage to the
Property or Improvements, or any parts thereof, by fire or any other cause shall permit Tenant
to

9

 

surrender or terminate this Lease or shall relieve Tenant from its obligations to pay full Annual
Rent and Additional Rent under this Lease or from any of its other obligations under this Lease,
and Tenant waives any rights now or hereafter conferred on it by statute or otherwise to quit or
surrender this Lease or the Property or any suspension, diminution, abatement or reduction of rent
on account of any such damage or destruction.

     15. 
Eminent Domain.

          (a) Improvements/Ingress and Egress. In the event that the points of ingress
and egress to the public or private roadways serving the Property, shall be materially
impaired by
a public or quasi-public authority for a period of ten (10) consecutive days during the ski
season,
so as to render, in Tenant’s reasonable discretion, the Leased Premises unsuitable for its
intended
purpose, Tenant shall have the option to terminate this Lease as of the date Tenant shall be
deprived or denied thereof. In the event that more than ten percent (10%) of the Improvements
or the parking areas on the Property shall be expropriated by public or quasi-public
authority,
Tenant shall have the option to terminate this Lease as of the date Tenant shall be
dispossessed
from the part so expropriated by giving written notice to Landlord of such election so to
terminate within ninety (90) days from the date of such dispossession.

          (b) Restoration. In the event of an expropriation of any portion of the
Improvements or the parking areas on the Leased Premises, and if this Lease shall not be
terminated as provided above, this Lease shall continue as to that portion of the Leased
Premises
which shall not have been expropriated or taken, and Tenant shall, subject to available
condemnation proceeds, promptly and with due diligence, restore the affected portion of the
Improvements, as nearly as practicable, to a complete unit of like quality and character as
existed
just prior to such expropriation.

          (c) Termination. In the event this Lease shall be terminated pursuant to this
Section 15, any Annual Rent, Additional Rent and any other charges paid in advance with
respect to a period after the effective date of termination shall be refunded to Tenant.
Nothing
herein contained shall be construed as preventing Tenant from being entitled to any separate
award made to Tenant for the taking of any personal property, inventory or trade fixtures of
Tenant, or from claiming its award directly against the condemnor.

          (d) Condemnation Award —  Lease Not Terminated. In the event of a
condemnation of any portion of the Improvements and if this Lease is not terminated, Tenant
shall be entitled to that portion of the award paid by the condemning authority (after payment
of
expenses incurred in connection with collecting the same) attributable to that portion of the
condemned Improvements made by or on behalf of Tenant plus the costs of restoring the
remaining portion of the Improvements.

          (e) Condemnation Award  —  Lease Terminated. In the event of a
condemnation and this Lease is terminated as herein provided, the award paid by the
condemning authority (after payment of expenses incurred in connection with collecting the
same) shall be allocated as follows:

10

 

               (1) First, to the extent the award is allocable to the Improvements
made by or on behalf of Tenant and/or the leasehold estate under this Lease, an amount shall
be
paid to the Leasehold Mortgagee, such amount not to exceed the balance due on any note
secured by the Leasehold Mortgage or the amount of the value of Tenant’s leasehold estate in
the
Property as of the date of the condemnation; and

               (2) Second, to Tenant in an amount equal to the value of Tenant’s
leasehold estate, if any, as determined in the proceeding involved with the condemnor, in the
Property as of the date of the condemnation less the amount received by Tenant under Section
15(e)(l) above; and

               (3) Third, the Landlord shall receive the balance of the award.

     16. 
Use, Assignment and Subletting.

          (a) Use. The Property and the Leased Premises shall be used as a ski resort and any
use related directly thereto. The Property and the Leased Premises may not be used for other
purposes, including conventions, concerts, entertainment performances of any nature, markets of
any sort, or similar activities without compliance with any applicable governmental permits and/or
approvals; and without the prior, written consent of the Landlord, which may be withheld in
Landlord’s sole discretion, provided, however, Tenant shall be able to annually hold the Blues
Festival, Irish Festival and the Arts and Crafts Festival.

               (1) Assignment. During the Lease Term, this Lease may be assigned or subleased only
if the conditions set forth in Section 16(a)(l)(a)-(d) have been satisfied in Landlord’s
reasonable determination or waived by Landlord. Landlord shall make such determination within
thirty (30) days of Landlord’s receipt of information reasonably necessary to make such
determination.

                    a. Tenant is not in default under the Lease, or any default will
be cured by the Tenant of the proposed assignee or subtenant as a condition of the approval;

                    b. The proposed assignee or subtenant (or its principals) has
demonstrated expertise in owning and operating property similar in character and size and operation
to the Property, as measured against the operations of the Property by the Tenant for the three
lease years preceding the proposed assignment;

                    c. The proposed assignee or subtenant (or its principals) shall
have the ability to meet all the financial conditions of the Lease; and

                    d. Proof that any Leasehold Mortgage referred to in
Section 22 shall be fully paid, satisfied and/or assumed by the Tenant and/or proposed assignee or
subtenant (or its principals) in a manner which will assure that the Tenant’s fee simple interest
will be encumbered only in a manner consistent with the provisions of this Lease applicable to the
Tenant immediately before the proposed assignment.

11

 

          In the event that conditions (a)-(d) above have been either satisfied in Landlord’s reasonable
determination or waived by Landlord, then immediately upon the assignee’s assumption of all of
Tenant’s obligations under this Lease, Tenant shall be released from all liability under this Lease
accruing on or after the date of such assignment. The foregoing release shall be effective upon the
date of the assignment, but Landlord agrees to provide written evidence thereof reasonably
requested by Tenant. No sublease by Tenant shall affect any obligations of Tenant or rights of
Landlord under this Lease, all of which shall continue in full force and effect notwithstanding any
Sublease. If Tenant agrees to assign this lease and enters into an Agreement of Assignment of this
Lease, then Landlord shall be provided a copy of said Agreement and shall have fifteen (15) days
from the receipt of the Agreement to exercise the right to be the assignee under said Agreement
upon the same terms and conditions as set forth in such Agreement. If the Landlord notifies the
Tenant of its intention to exercise this first right of refusal, its notice, together with the
underlying proposed Agreement of Assignment, shall constitute an Agreement of Assignment. If
Landlord does not exercise this right within said fifteen (15) days, then Landlord shall have
waived said right of refusal, except as to future assignment by the Assignee.

          (b) Assignment and Subleasing. Without the prior consent of Landlord, Tenant shall
have the right from time to time during the Lease Term, to mortgage this Lease and the leasehold
estate hereby created. The execution and delivery of a mortgage shall not be deemed to constitute
an assignment or transfer of this Lease nor shall the holder of any mortgage, as such, be deemed an
assignee or transferee of the Lease so as to require such holder to assume the performance of any
of the covenants or agreements on the part of Tenant to be performed hereunder, except to the
extent provided in Section 22. Promptly after execution and delivery of a mortgage, Tenant shall
send to Landlord a copy of all relevant documentation delivered in connection therewith. In the
event of a sublease or mortgage by Tenant pursuant to this paragraph, Tenant shall remain liable
and responsible under this Lease. Tenant shall notify Landlord of the identity of any mortgagee,
but Tenant’s failure to so notify the Landlord shall not be deemed a default under this Lease,
provided, however, that any benefits of Section 22 to the Leasehold Mortgagee shall not be deemed
effective until the Tenant shall notify the Landlord of the identity of any mortgagee. Any mortgage
of Tenant’s interest under this Lease without notification to Landlord shall not be effective as to
Landlord and Landlord shall not be bound thereby until receipt of such notification.

     17. 
Tenant’s Compliance with Covenants and Restrictions. Tenant covenants
that, during the term of this Lease and any extension thereof, it shall comply with the
covenants
and restrictions of record affecting the Property. Landlord covenants that Landlord will not
enter
into any agreement imposing covenants and restrictions of record affecting the Property unless
Landlord obtains Tenant’s prior written approval except those already described to Tenant in
Landlord’s existing and proposed development plans shown to Tenant or those necessary for
Landlord’s development projects.

     18. 
Ingress and Egress. Landlord is the owner of Big Boulder Drive which provides
access to the Property. Tenant shall pay its proportionate share of the expenses for snow
removal, road maintenance and road repair of all access roads to the Property including Big
Boulder Drive. The proportionate share of said expenses shall be as determined by Landlord.

12

 

Tenant shall also pay its proportionate share of a reserve for future road maintenance,
repair and road improvements. A proposed Agreement for allocation of costs has been provided to
Tenant. Tenant acknowledges receipt and approval of said Agreement. Tenant shall be responsible
for the repair, replacement and maintenance of all parking areas on the Property, or off the
Property utilized by Tenant.

     19. Liquidated Damages.

          (a) Tenant shall have the right to terminate this lease at any time after April 1,
2009. Tenant shall exercise this right by delivering written notice to Landlord via United
States
Post Office first class mail and certified mail, return receipt requested. The date postmarked
on
the envelope addressed to Landlord shall constitute the “termination date”.

          In the event that Tenant exercises this right to terminate prior to May 1 of any year, then
Tenant shall pay to Landlord all accrued rent through the termination date and liquidated damages
equal to Two Hundred Thousand and 00/100 Dollars ($200,000.00).

          In the event that Tenant exercises this right to terminate between May 1 and August 1 of any
year, then Tenant shall pay to Landlord all accrued rent through the termination date and
liquidated damages equal to Three Hundred Thousand and 00/100 Dollars ($300,000.00).

          In the event that Tenant exercises this right to terminate after August 1 of any year, then
Tenant shall pay to Landlord all accrued rent through the termination date and liquidated damages
equal to Four Hundred Thousand and 00/100 Dollars ($400,000.00). All payments due by Tenant will
be within (60) days of the termination date.

          Landlord and Tenant have agreed to the liquidated damages herein set forth in order to avoid
extended litigation following a termination by Tenant, recognizing that Landlord’s actual damages
in such event are not susceptible to precise calculation and acknowledgement that the liquidated
damages herein set forth constitute fair and equitable compensation to Landlord in such event.

          (b) Landlord shall have the right to terminate this lease at any time. Landlord
shall exercise this right by delivering written notice to Tenant via United States Post Office
first
class mail and certified mail, return receipt requested. The date postmarked on the envelope
addressed to Tenant shall constitute the “termination date”.

          In the event Landlord exercises this right to terminate prior to December 1, 2010, then
Landlord shall pay to Tenant liquidated damages in the amount of Seven Hundred Fifty Thousand and
00/100 Dollars ($750,000.00).

          In the event Landlord exercises this right to terminate after December 1, 2010, then Landlord
shall pay to Tenant liquidated damages in the amount of Five Hundred Thousand and 00/100 Dollars
($500,000.00).

13

 

          In addition to the above, Landlord shall pay to Tenant the depreciated value as of the
termination date of all Improvements made by Tenant which were approved by Landlord. The
depreciation value shall be the value of the Improvement less the depreciation as agreed upon by
Landlord and Tenant prior to the Improvement being erected or placed in service. Depreciation of
the assets shall be by means of straight-line depreciation of the value of the assets over a
period of time agreed to by Landlord and Tenant prior to the erection of the asset or the asset
being placed in service.

          All payments due by Landlord under this paragraph will be paid to Tenant within sixty (60)
days of the receipt by Landlord of the statement of depreciated value of Improvements received by
Landlord from Tenant.

          Landlord and Tenant have agreed to the liquidated damages herein set forth in order to avoid
extended litigation following a termination by Tenant or Landlord, recognizing that Landlord’s or
Tenant’s actual damages in such event are not susceptible to precise calculation and
acknowledgement that the liquidated damages herein set forth constitute fair and equitable
compensation to Landlord or Tenant in such event.

          . A termination of this lease shall also act as a termination of the Jack Frost Lease. If the
Jack Frost Lease is voluntarily terminated by Blue Ridge Real Estate Company pursuant to Section
19 of said Jack Frost Lease, Tenant shall have the option of continuing this lease and not having
this lease terminated by Blue Ridge Real Estate Company’s termination.

          The provisions of subparagraph 19(b) shall not apply to termination of the Lease as a result
of Tenant’s breach of the Lease.

     20. Bankruptcy. If a petition of bankruptcy or reorganization shall be filed by or
against Tenant, Tenant shall become bankrupt, Tenant shall make a general assignment for the
benefit of creditors, Tenant shall admit in writing its inability to pay its debts as they
become
due, or in any proceeding based upon the insolvency of Tenant, a receiver or trustee of all of
the
property of Tenant shall be appointed and shall not be discharged within ninety (90) days
after
such appointment, then Landlord may terminate this Lease by giving written notice to Tenant of
its intention to do so; provided, however, neither bankruptcy, insolvency, reorganization, an
assignment for the benefit of creditors nor the appointment of a receiver or trustee shall
affect
this Lease or permit its termination so long as the covenants on the part of Tenant to be
performed shall be timely performed by Tenant, or someone claiming under it.

     21. Covenant of Title.

          (a) Quiet Enjoyment. Landlord covenants, represents and warrants that it has full
right and power to execute and perform this Lease and to grant the estate demised herein and that
Tenant, on payment of the Annual and Additional Rent and performance of the covenants and
agreements hereof, shall peaceably and quietly have, hold and enjoy the Leased Premises and all
rights, easements, appurtenances and privileges belonging or in any way appertaining thereto
during the Lease Term without molestation or hindrance of any person whomsoever, and if, at any
time during the term hereby demised the title of Landlord shall fail or it be discovered

14

 

that its title shall not enable Landlord to grant the term hereby demised, and if Landlord fails
to commence the cure of such defect promptly following notice from Tenant and thereafter
diligently prosecutes the same to completion, then Tenant shall have the option, at Landlord’s
expense, to correct such defect or if such defect is not reasonably subject to cure, to annul this
Lease.

          (b) Evidence of Title. Landlord further covenants, represents and warrants that it is
seized of an indefeasible estate in fee simple or has a good and marketable title to the Property
(including, without limitation, the Leased Premises), free and clear of any liens, encumbrances,
restrictions and violations (or claims or notices thereof), except public utility or private
utility easements and covenants and restrictions of record not impairing Tenant’s use of the Leased
Premises, real estate taxes and special assessments not yet due and payable, and the lien of the
mortgage or mortgages specifically identified on the attached Exhibit C. Landlord shall,
without expense to Tenant and within thirty (30) days after the Effective Date, furnish to Tenant
agreements wherein each holder of any mortgage lien against the Leased Premises shall consent to
this Lease and warrant that Tenant’s possession and right of use under this Lease in and to the
Leased Premises shall not be disturbed by such holder unless and until Tenant shall breach any of
the provisions hereof and this Lease or Tenant’s right to possession hereunder shall have been
terminated in accordance with the provisions of this Lease.

     22. Leasehold Mortgage.

          (a) Tenant shall have the unrestricted right at any time and from time to time
without Landlord’s consent to mortgage the Property and the Leased Premises, including the
Improvements, and its leasehold interest under this Lease (but not Landlord’s fee interest),
subject however to the limitations hereinafter set forth (including Landlord’s prior security
interest described in Paragraph 26 (b) below). Any such mortgage shall be subject and
subordinate to the rights of Landlord hereunder. A mortgage of the Property and/or Tenant’s
leasehold interest under this Lease is herein referred to as a “Leasehold Mortgage,” and the
party holding the Leasehold Mortgage (including any affiliate of such party) the “Leasehold
Mortgagee.”

          (b) No Leasehold Mortgagee shall be entitled to enjoy the rights or benefits
mentioned herein, nor shall the provisions of this Lease pertaining to Leasehold Mortgages be
binding upon Landlord, unless Landlord shall have been given written notice of the name and
address of the Leasehold Mortgagee together with a true and correct copy of the Leasehold
Mortgage, the note secured thereby, the security agreement related to any personal property
located on or associated with the Property, financing statements related to any personal
property
located on or associated with the Property, all as related to any obligations to the Leasehold
Mortgage, plus such portions of any loan agreement and/or other written agreements between the
Leasehold Mortgagee and Tenant which pertain to the direct use, maintenance, and/or operations
of the Property; and, during the Term of the Lease, any modifications or amendments to any of
the above referenced specific documents.

          (c) So long as such Leasehold Mortgage shall remain in effect, the following
provisions shall apply:

15

 

               (1) Landlord shall serve a copy of any notice, including a notice of default, required to be
served on Tenant under this Lease upon such Leasehold Mortgagee at the address provided in the
notice referred to in subsection (b) hereof, and no notice by Landlord to Tenant hereunder shall be
deemed to have been duly given unless and until a copy thereof has been served on the Leasehold
Mortgagee.

               (2) Upon the occurrence of an event of default, Landlord shall take no action to terminate
this Lease without first giving to the Leasehold Mortgagee written notice thereof and, in the
event of a monetary default, a period of fifteen (15) days after written notice to cure such
default, or in the case of a non-monetary default, a period of ninety (90) days within which
either (i) to obtain possession of the Leased Premises (including possession by a receiver) or
(ii) to institute, prosecute and complete foreclosure proceedings or otherwise acquire Tenant’s
interest under this Lease, or (iii) to cure such default. Such Leasehold Mortgagee, within ninety
(90) days after obtaining possession or acquiring Tenant’s interest under this Lease, (the
“Leasehold Mortgage Cure Period”), shall be required to cure all non-monetary defaults reasonably
susceptible of being cured by such Leasehold Mortgagee; provided, however, that: (A) such
Leasehold Mortgagee shall not be obligated to continue such possession or to continue such
foreclosure proceedings after such defaults shall have been cured; (B) nothing herein contained
shall preclude Landlord, subject to the provisions of this Section, from exercising any rights or
remedies under this Lease with respect to any other default by Tenant; (C) such Leasehold
Mortgagee shall agree with Landlord in writing to comply during the period of such forbearance
with such of the terms, conditions and covenants of this Lease as are reasonably susceptible of
being complied with by such Leasehold Mortgagee; and (D) if a non-monetary default which the
Leasehold Mortgagee is otherwise required to cure pursuant to the provisions of this subparagraph
(c)(4) is not reasonably susceptible to cure within the Leasehold Mortgagee Cure Period, the
Leasehold Mortgagee shall be deemed to be in compliance with the requirements hereof as long as it
has commenced action to cure such default within the Leasehold Mortgagee Cure Period, and
diligently pursues such cure to completion, provided that it completes the cure of such default
within 120 days after receiving written notice of default. For purposes of this Section 22(c)(4),
the phrase “non-monetary defaults” shall not apply to any failure of the Tenant to have undertaken
or completed contemplated constructions related to the Property; or any failure of the Tenant to
rebuild any damaged or destroyed Improvements located on the Property. Also, for purposes of this
Section 22(c)(4), in the event that the Tenant shall have obtained judicial delay or restriction
upon any actions of the Leasehold Mortgagee to enforce any and all obligations owing to Leasehold
Mortgagee, including foreclosing on the Leasehold Mortgage, or the Tenant shall have sought or
been subjected to any bankruptcy proceedings which include or result in the delay or restriction
upon any actions of the Leasehold Mortgagee to enforce any and all obligations owing to Leasehold
Mortgagee, including foreclosing on the Leasehold Mortgage, then during any period of such delay
or restriction the periods of time referred to in the first two sentences of this Section 22(c)(4)
shall be suspended and shall resume running upon the expiration of any applicable appeal period in
relation to the court orders and/or expiration periods which are applicable, if such court orders
or expiration dates would permit the Leasehold Mortgagee to proceed with curing any defaults or
foreclosing on the Leasehold Mortgage. Such Leasehold Mortgagee may become the legal owner and
holder of Tenant’s interest under this Lease by foreclosure or assignment in lieu of foreclosure;

16

 

but no third party other than Leasehold Mortgagee shall be entitled to acquire Tenant’s interest
under this Lease by foreclosure or assignment in lieu of foreclosure unless and until such
proposed acquirer or assignee shall have satisfied the requirements set forth in Section
16(a)(l)(b)-(c).

          (d) In the event of termination of this Lease prior to the expiration of the term, by reason
of any default or for any other reason including, without limitation any rejection or
disaffirmance pursuant to the Bankruptcy Code or pursuant to any insolvency or other law affecting
creditors’ rights but excluding any termination by reason of condemnation or casualty as provided
in Sections 15 and 16 herein or the default of Tenant and the failure to cure such default by the
Leasehold Mortgagee after having notice thereof as provided in subparagraph (c)(4) above as a
result of such bankruptcy proceeding, Landlord shall serve upon the Leasehold Mortgagee written
notice that the Lease has been terminated together with a statement of any and all sums which
would at that time be due under this Lease but for such termination, and of all other defaults, if
any, under this Lease then known to Landlord. Such Leasehold Mortgagee shall thereupon have the
option to obtain a new lease in accordance with and upon the following terms and conditions:

               (1) Upon written request of the Leasehold Mortgagee within sixty (60)
days after service of such notice that the Lease has been terminated, Landlord shall enter
into a
new lease of the Leased Premises with such Leasehold Mortgagee; or its designee, as set forth
in
clause (2) below. If the new lease is to be with an individual or entity other than the
Leasehold
Mortgagee, as a direct party, then such individual or entity, as designee of the Leasehold
Mortgagee, shall have satisfied the requirements set forth in Section 16(a)(l)(b)-(d).

               (2) Such new lease shall be effective on the date of termination of this
Lease and shall be for the remainder of the term of this Lease, at the rent and upon all the
agreements, terms, covenants and conditions hereof, including any applicable rights of
renewal.
Such new lease shall require the tenant thereunder to perform all unfulfilled obligations of
Tenant under this Lease which are reasonably susceptible of being performed by such tenant.
Upon the execution of such new lease, the tenant named therein shall pay all sums which would
at the time of the execution thereof be due under this Lease but for such termination and
shall
pay the reasonable expenses (including but not limited to attorneys’ fees and costs) incurred
by
Landlord in connection with such defaults and termination, the recovery of possession of said
Leased Premises and the preparation, execution and delivery of such new lease. Upon execution
and delivery of such new lease, such tenant shall be entitled to an adjustment in the amount
otherwise owed pursuant to the terms of this paragraph, such adjustment to be equal to the net
income, if any, derived by Landlord from the Leased Premises during the period from the date
of
termination of this Lease to the date of execution of the new Lease.

               (3) Any such new lease shall maintain the same priority as this Lease with regard to any
Leasehold Mortgage affecting the Property or any part thereof or any other rights, liens or
encumbrances thereon. The provisions of the immediately preceding sentence shall be
self-executing; provided, however, Landlord shall execute such reasonable documents as are
necessary to effectuate the foregoing.

17

 

          (e) Except as otherwise provided in this Lease, this Lease may not be
modified, amended, or canceled by the mutual agreement of Landlord and Tenant or surrendered
without the express written consent of the Leasehold Mortgagee. The provisions of this Section
shall survive the expiration or earlier termination of this Lease.

          (f) If Landlord and Tenant shall acquire the interest of the other hereunder,
this Lease shall remain outstanding and no merger of the leasehold into the fee interest shall
be
deemed to have occurred.

          (g) If any Leasehold Mortgagee shall acquire title to Tenant’s interest under
this Lease by foreclosure, assignment in lieu of foreclosure or otherwise, or under a new
lease
pursuant to subsection (d) above, the same shall not be deemed to constitute an assignment or
transfer of this Lease or of the leasehold estate thereby created, and such Leasehold
Mortgagee
may assign such interest under this Lease or in such new lease (subject to the terms of
Paragraph
16 (a)(i) regarding assignment) and shall thereupon be released from all liability for the
performance or observance of the covenants and conditions in this Lease or in such new lease
contained on Tenant’s or Tenant’s part to be performed and observed from and after the date of
such assignment; provided, however, that the assignee of such Leasehold Mortgagee shall have
expressly assumed this Lease or such new lease and written evidence of such assumption shall
have been submitted to Landlord.

          (h) Landlord acknowledges that as between Landlord and Leasehold Mortgagee, its nominee or a
purchaser at a foreclosure or other sale, this Lease shall not be deemed to be terminated
notwithstanding the rejection of the Lease by Tenant or its representative in any proceeding under
the Bankruptcy Reform Act of 1978 (the “Bankruptcy Code”), as amended, or any other insolvency
law, provided that Leasehold Mortgagee, its nominee or a purchaser at a foreclosure sale confirms
in writing that it is bound by the terms and conditions of the Lease to the same extent as Tenant
named therein.

          (i) Each Leasehold Mortgagee shall be given notice of any litigation, arbitration or other
proceeding relating to this Lease and any dispute between the parties thereto and shall have the
right to intervene in any such litigation, arbitration or other proceeding, but only to the extent
of its interest as mortgagee, as its interest may appear, and not as a direct party to such
litigation, arbitration or other proceeding. In any event, each Leasehold Mortgagee shall receive
a copy of any award or decision made in such litigation, arbitration or other proceeding.

          (j) In the event of default by Tenant in any Leasehold Mortgage, and regardless of the
enforcement of Leasehold Mortgagee’s rights thereunder, Leasehold Mortgagee shall not have the
right to remove any property, including any buildings, equipment or other improvements that
constitute its collateral, from the Leased Premises. At the termination of this Lease, all such
improvements shall be the property of Landlord.

18

 

     23. Indemnifications.

          (a) Tenant’s Obligation. During the Lease Term, Tenant shall indemnity and
save Landlord, and its agents, employees, successors and assigns, harmless against all
penalties,
claims or demands of whatsoever nature arising from Tenant’s use of the Property, except
those
which shall result, in whole or in part, directly or indirectly, from the default or
negligence of
Landlord, its agents, employees, successors and assigns.

          (b) Survival. The indemnifications set forth in this Section 23 shall survive
the expiration, cancellation or termination of this Lease.

     24. Defaults.

          (a) In the event Landlord shall neglect to pay when due any obligations on
any mortgage or encumbrance affecting title to the Leased Premises and to which this Lease
shall be subordinate and with respect to which Tenant does not have an existing
non-disturbance
agreement, or in the event Landlord shall fail to perform any obligation specified in this
Lease, or if Landlord shall be in material default of any representation, warranty, or covenant of
Landlord, then Tenant may, after the continuance of any such default for seven (7) days after
written notice thereof by Tenant to Landlord, pay said principal, interest or other charges or
cure
such default, all on behalf of and at the expense of Landlord and do all necessary work and
make
all necessary payments in connection therewith and Landlord shall, on demand, pay Tenant,
forthwith, the amount so paid by Tenant.

        
  (b) Tenants Default:

               Events of Default Defined. Each of the following events in this Section 24(b) shall
constitute an “Event of Default” under this Lease:

               1. If Tenant shall fail to pay Minimum Rent of any other sum payable
to Landlord hereunder when due and such failure shall continue uncured for more than thirty
(30) days.

               2. A material breach of the provisions of this Lease not described
elsewhere in this Section 24 which shall continue for a period of thirty (30) days after
receipt of
specific written notice from Landlord, which notice described in detail the nature of the
breach.

               3. If a receiver or trustee is appointed to take possession of all or
substantially all of the assets of Tenant and such receiver or trustee is not removed within
ninety
(90) days.

               4. If Tenant makes a general assignment of a majority of its assets for
the benefit of creditors;

19

 

               5. If any bankruptcy, reorganization, moratorium, insolvency,
creditor adjustment or debt rehabilitation proceeds or the like in which Tenant is the debtor
subject of such proceedings are instituted under any state or federal law by Tenant, and/or
are
commenced against Tenant and are not dismissed within ninety (90) days after commencement;

               6. If levy, execution, or attachment proceedings or other process of
law are commenced upon, on or against substantially all of Tenant’s assets, and such
proceedings
are not dismissed or stayed within ninety (90) days after commencement, and no action is then
pending for dismissal or stay thereof, or

               7. If a liquidator, receiver, custodian, sequester, conservator, trustee,
or other similar judicial officer is applied for by Tenant or appointed for Tenant, and such
appointment shall not have been vacated within ninety (90) days.

               8. If Tenant shall assign or sublet, or execute any document
purporting to assign or sublet, any interest under this Lease in violation of Section 16
hereof; or

               9. If Tenant shall fail to vacate or surrender the Leased Premises to
Landlord upon the expiration of the Term as provided in this Lease.

          (c) Remedies of Landlord. Landlord may, at any time after
the
occurrence of an Event of Default, and in addition to all other available legal or equitable rights
and remedies, elect any one or more of the following remedies (provided that if Tenant shall cure
any Event of Default prior to Landlord’s commencement of any available remedy therefore, then only
in such event Landlord shall not exercise any remedies with respect to such Event of Default):

               1. Landlord shall be entitled to all current rent due plus the liquidated
damages provided in paragraph 19 (a) plus all other monies then due under the terms of this
Lease.

               2. Landlord may, on a date specified by written notice to Tenant,
which date must be at least ten (10) days after delivery of such notice, enter upon and
repossess
the Leased Premises by summary proceedings, ejectment or otherwise, and dispossess Tenant
and remove Tenant and all other persons and property from the Leased Premises and have, hold
and enjoy the Leased Premises and the rents and profits therefrom.

               3. Except as otherwise provided, all rights and remedies of Landlord
enumerated in this Section 24 shall be cumulative, and none shall exclude any other right or
remedy allowed by law.

               4. In addition to the other remedies provided in this Lease, Landlord
shall be entitled to seek an injunction restraining a material violation or attempted material
violation of any of the covenants, agreements or conditions of this Lease by Tenant.

20

 

               5. Upon termination of this Lease, or when required pursuant to
Section 24 of this Lease, Tenant shall surrender possession and vacate the Leased Premises
immediately and deliver possession thereof to Landlord, and Tenant hereby grants to Landlord
full and free license following termination of this lease to enter into and upon the Leased
Premises in such event without process of law and to repossess the Leased Premises, and to
expel or remove Tenant and any others who may be occupying or within the Leased Premises,
and to remove any and all property therefrom, in accordance with this Lease and at law.

               6. The provisions of paragraph 22 pertaining to default shall apply to
the provisions of this paragraph if a Leasehold Mortgage of Tenant is in effect at the time of
default.

     25. Hazardous Material.

          (a) Landlord’s Representations. Landlord represents that, to the best of its
actual knowledge, without inquiry, and except as disclosed below or set forth on Exhibit
“N”,
there are not now nor have there been any Hazardous Materials (as defined below) used,
generated, stored, treated or disposed of on the Property in violation of applicable
governmental
regulations. Landlord’s representations to Tenant under this Section shall survive the
cancellation or termination of this Lease.

          (b) Tenant’s Representations. Tenant warrants and agrees that it will not use,
maintain, generate, store, treat or dispose of any Hazardous Materials in or on the Property
in
violation of applicable governmental regulations. Tenant hereby indemnifies Landlord from and
against any loss, liability, claim or expense, including, without limitation, cleanup,
engineering
and reasonable attorneys fees and expenses that Landlord may incur by reason of any
investigation or claim of any governmental agency or third party for any actions taken by
Tenant,
its agents, licensees, subtenants, concessionaires, contractors or employees at the Property
during
the term of this Lease in violation of the above covenant. Tenant’s indemnity to Landlord
under
this paragraph shall survive the cancellation or termination of this Lease.

          (c) Affirmative Obligations. At any time prior to the Commencement Date ,
Tenant (or Tenant’s contractor) may inspect the Property and the nearby surrounding property
for
the presence of Hazardous Materials. If Hazardous Materials are discovered on the Property or
any of the nearby surrounding property beyond the levels which may require investigation
and/or
remediation under applicable environmental laws, Landlord may, at its sole cost and expense,
remedy and cleanup such problem in accordance with all applicable governmental regulations. If
Landlord does not remediate such Hazardous Materials condition prior to the Commencement
Date, Tenant may, within thirty (30) days thereafter, cancel this Lease by giving notice to
Landlord and returning possession of the Leased Premises to Landlord and, in such event,
Tenant
will thereafter be relieved of all further liability under this Lease.

          (d)
Definition. For purposes of this Section, the term “Hazardous Materials” shall mean any toxic or hazardous waste or substances (including asbestos and
petroleum products) which are regulated by applicable local, state or federal environmental
laws
or regulations.

21

 

     26. Condition of Property at Termination. (a) At the expiration or
earlier termination of the Lease Term Tenant shall surrender the Leased Premises, together with
alterations, additions and improvements then a part thereof, in good order and condition,
except for the ordinary wear and tear. All furniture and trade fixtures installed in the Improvements
at the expense of Tenant, shall remain the property of Landlord. At the expiration of the Lease
Term, the Tenant, at the option of the Landlord, shall be responsible for demolition and
removal of any improvements that the Tenant has made during the Lease Term.

          (b) Landlord shall retain a first lien security interest in the furniture, fixtures,
equipment, ski lifts, skis and all other leased items set forth in the attached exhibits and in
all replacements of the aforesaid personalty and realty. UCC-l’s shall be filed securing
Landlord’s interest which shall be a first lien on the said personalty and realty.

     27. Holding Over. In the absence of any written agreement to the contrary, if Tenant
should remain in occupancy of the Leased Premises after the expiration of the Lease Term, it
shall so remain as a tenant from month-to-month and all provisions of this Lease applicable to
such tenancy shall remain in full force and effect, except that Annual Rent payable during
such holdover tenancy shall be one hundred twenty-five percent (125%) of the Annual Rent payable at
the end of the Lease Term.

     28. Signage. Tenant shall have the right to place the maximum amount of exterior or
interior signage on the Property as may be permitted by applicable governmental laws or
ordinances. Signage by Tenant will not interfere with Landlord developments.

     29. Capital Expenditure Requirement.

          (a) Tenant shall build, install, place or erect improvements to the Property
which total a minimum of One Million Five Hundred Thousand Dollars ($1,500,000.00) during
the first three (3) years of the Lease Term, provided that Tenant has made a total of Five
Million Dollars ($5,000,000.00) of Improvements during the first three (3) years under this lease and
under a lease that Tenant has entered into as of the date hereof between Tenant and Blue Ridge
Real Estate Company.

          (b) Improvements for the purposes of 29(a) shall consist of chair lifts, snow-making equipment, groomers, computer wiring, building renovations, new buildings and ski
facility maintenance equipment.

          (c) Security for the improvements to be installed under the terms of this
paragraph shall be set forth in the attached Escrow Agreement which is incorporated herein.

     30. Excepted from Property.

          (a) Landlord shall, during the term of this Lease or any extension thereof, retain the use of
a real estate sales booth in the Ski Lodge.

22

 

          (b) Landlord’s use of the excepted areas shall be three hundred sixty-five
(365) days per year and twenty-four (24) hours a day.

          (c) Landlord shall have full use of any restrooms on the Property for use by its
employees.

          (d) Landlord shall at its option maintain automatic teller machines (“ATMs”)
at the property, and bear the expenses of, and enjoy the profits of, said ATMs. .

     31. Mechanics’ Liens.

          (a) Tenant covenants that it shall not (and has no authority to) create or allow
any encumbrance against the Property, or any part of any thereof or of Landlord’s interest
therein.

          (b) Tenant covenants that it shall not suffer or permit to be created, or to
remain, any lien or claim thereof (arising out of any work done or services, material,
equipment or supplies furnished for or at the request of Tenant or by or for any contractor or
subcontractor of Tenant, other than such furnished by Landlord) which is or may become a lien upon the
Property, or any part of any thereof or the income therefrom or any fixture, equipment or
similar property therein.

          (c) If any lien or claim shall be filed, Tenant shall within ten (10) days after
the filing thereof, cause the same to be discharged of record by payment, deposit, bond or
otherwise. If Tenant shall fail to cause such lien or claim to be discharged and removed from
record within that period, then, without obligation to investigate the validity thereof and in
addition to any other right or remedy Landlord may have, Landlord may, but shall not be
obligated to, contest the lien or claim or discharge it by payment, deposit, bond or
otherwise; and Landlord shall be entitled, if Landlord so decides, to compel the prosecution of an action for
the foreclosure of such lien by the lienor and to pay the amount of the judgment in favor of the
lienor with interest and costs. Any amounts so paid by Landlord and all costs and expenses, including
attorney’s fees, incurred by Landlord in connection therewith, together with interest at the
Lease Interest Rate from the respective dates of Landlord’s making of the payment or incurring of
the cost or expense, shall constitute Additional Rent payable by Tenant under this Lease and shall
be paid by Tenant to Landlord promptly on demand.

          (d) Notwithstanding anything to the contrary in this Lease or in any other
writing signed by Landlord, neither this Lease nor any other writing signed by Landlord shall
be construed as evidencing, indicating, or causing an appearance that any erection, construction,
alteration or repair to be done, or caused to be done, by Tenant is or was in fact for the
immediate use and benefit of Landlord. Further, notwithstanding anything contained herein to
the contrary, nothing contained in or contemplated by this Lease shall be deemed or construed
in any way to constitute the consent or request on the part of Landlord for the performance of
any work or services or the furnishing of any materials for which any lien could be filed against
the

23

 

Property or any part of any thereof, nor as giving Tenant any right, power, or authority to
contract for or permit the performance of any work or services or the furnishing of any materials
for which any lien could b filed against the Property or any part of any thereof.

     32. Estoppel Statement.

          (a) Tenant from time to time, within ten (10) days after request by Landlord,
shall execute, acknowledge and deliver to Landlord a statement, which may be relied upon by
Landlord or any proposed assignee of Landlord’s interest in this Lease or any existing or
proposed mortgagee or ground lessor or purchaser of the Property or any interest therein,
certifying (i) that this Lease is unmodified and in full force and effect (or that the same is
in full force and effect as modified and listing the instruments of modification); (ii) the dates to
which Minimum Rent and all other charges have been paid; (iii) whether or not Landlord is in default
hereunder or whether Tenant has any claims or demands against Landlord (and, if so, the
default, claim and/or demand shall be specified); (iv) if applicable, that Tenant has accepted
possession and has entered into occupancy of the Property; (v) the Lease Commencement Date and the
Termination Date, and certifying as to such other matters as Landlord may reasonably request.
Tenant acknowledges that any such statements so delivered by Tenant may be relied upon by
Landlord, any landlord under any ground or underlying lease, or by any prospective partner,
purchaser, mortgagee, lender, or any assignee of any mortgage.

          (b) The failure of Tenant to execute, acknowledge and deliver to Landlord a
written instrument in accordance with the provisions of this Section 32 within the ten (10)
day period above provided shall constitute an acknowledgment by Tenant, which may be relied upon
by Landlord, or by any prospective purchaser, mortgagee, lender, or any assignee or any
mortgage that this Lease has not been modified, supplemented or amended except as set forth in
Landlord’s request, and is in full force and effect (or in full force and effect as so
modified, supplemented or amended), that the Minimum Rent, Additional Rent and any other charges
arising hereunder have not been paid beyond the respective due dates immediately preceding the
date of such request, that Tenant has no right of set-off or other defense to this Lease and
of the truth of such other facts and conditions as shall have been requested to be certified, and
shall constitute, as to any person entitled to rely as aforesaid, a waiver of any defaults which may
exist prior to the date of such request. [Notwithstanding the foregoing, Tenant’s failure to
furnish such written instrument, within the time period provided herein after Landlord’s request
therefor, shall constitute a default under this Lease.]

     33. Transfer of Existing Business Operations.

          (a) Landlord is the current operator of the Big Boulder Ski Resort. Landlord has available
food and food related product inventory from its operation of the ski resort as set forth on
Exhibit “D” attached hereto, and made a part hereof. Tenant shall pay to Landlord on
December 1, 2005, the sum of Eight Hundred Twenty-nine and 29/100 Dollars ($829.29) for the
acquisition of said inventory set forth on Exhibit “D”, which purchase price shall be the lower of
cost or market value.

24

 

          (b) Landlord is the current operator of the Big Boulder Ski Resort Landlord
has available retail sales inventory from its operation of the ski resort as set forth on
Exhibit “E” attached hereto, and made a part hereof. Tenant shall pay to Landlord on
December 1,
2005, the sum of Zero and 00/100 Dollars ($0.00) for the acquisition of the equipment set
forth
on Exhibit “E”, which purchase price shall be the lower of cost or market value.

          (c) For all ski equipment or other items (i.e., uniforms) ordered by Landlord
for the forthcoming ski season, Tenant shall attempt to release Landlord from the obligations
for
said purchase and have assigned to Tenant such purchase order(s). If Tenant cannot accomplish
the above, then Tenant shall pay Landlord for all equipment ordered by Landlord for its ski
facility which items were ordered prior to the date of this Lease. Payment to Landlord shall
be within five (5) days of receipt of the invoices due from Landlord to Tenant.

          (d) In the course of preparing the Big Boulder Ski Resort for the 2005-2006
season, Landlord has incurred certain marketing expenses as set forth on Exhibit “F”
attached
hereto, and made a part hereof. Tenant shall pay to Landlord on December 1, 2005, the sum of
Zero and 00/100 Dollars ($0.00) to reimburse Landlord for the prepaid marketing expenses set
forth on Exhibit “F”.

          (e) Landlord shall transfer to Tenant as part of this Lease all existing ski
equipment in Landlord’s possession.

          (f) In course of preparing the Big Boulder Ski Resort for the 2005-2006
season, Landlord has incurred certain insurance premiums as set forth on Exhibit “G”
attached hereto, and made a part hereof. Tenant shall pay to Landlord on December 1,2005, the sum of
Zero and 00/100 Dollars ($0.00) to reimburse Landlord for the prepaid insurance premiums set
forth on Exhibit “G”.

          (g) In the course of preparing the Big Boulder Ski Resort for the 2005-2006
season, Landlord has incurred certain dues as set forth on Exhibit “H” attached
hereto, and made a part hereof. Tenant shall pay to Landlord on December 1, 2005 the sum of Two
Thousand, One Hundred, Twenty and 70/100 Dollars ($2,120.70) to reimburse Landlord for the
prepaid dues set forth on Exhibit “H”

          (h) Landlord, in preparation for the 2005-2006 ski season, has sold certain ski packages
(including banquet packages / food packages, as per the record of bookings maintained at the
sales office) and/or tickets and/or vouchers. Said packages, tickets and vouchers are more
specifically set forth on Exhibit “I” attached hereto, and made a part hereof. Tenant
agrees to honor at no cost to Landlord and at no additional cost to the purchaser of said
packages, tickets and vouchers, the packages, tickets and vouchers set forth on Exhibit “I”, or
any rates quoted to Landlord’s customers.

          (i) Tenant agrees that the ski packages or ticket prices advertised by Landlord for the
2005-2006 ski season will be honored by Tenant, who shall not change, alter, or increase ticket
prices previously set by Landlord for the 2005-2006 ski season.

          
25

 

          (j) Landlord has leased certain equipment and has certain service contracts, more
particularly set forth on Exhibit “J” attached hereto, and made a part hereof. Tenant
agrees to assume said leases and be solely responsible for and indemnify Landlord from the
obligations of said leases. Tenant shall contact all of the lessors of the leased equipment and
service agreements as set forth on Exhibit “J” and shall make reasonable efforts to have said
leases and contracts assigned to Tenant and Landlord released from all obligations under said
leases or contracts.

          (k) Landlord has engaged the rental of certain billboards for marketing purposes, as more
specifically set forth on Exhibit “K” attached hereto and made a part hereof. Tenant shall
pay for and be responsible for the billboards for all expenses incurred beginning December 1, 2005.
Tenant shall contact all of the companies with which Landlord has contracts for billboard
advertising as set forth on Exhibit “K” and shall have said contracts assigned to Tenant and
Landlord released from all obligations under said contracts. Tenant shall have the use of only the
billboards set forth in Exhibit “K”.

          (1) Tenant shall assume, at no cost to Landlord, the responsibility for and shall honor all
ski related gift certificates or vouchers or passes previously purchased by customers of Landlord
up to, a maximum of Ten Thousand Dollars ($10,000.00) provided that Landlord will reimburse Tenant
for fifty percent (50%) of retail merchandise purchases made with the gift certificates, vouchers
or passes.

          (m) Landlord had, prior to entering into this Lease, agreed to an Arts and Crafts Festival in
October, 2005. Landlord agrees to have assigned to Tenant all of the obligations of Landlord under
the said Agreement for the Arts and Crafts Festival and shall be responsible for Landlord’s
obligations under the terms of that Agreement. This event having already occurred, it is agreed
that the Tenant shall receive the revenues, and be responsible for the expenses thereof.

          (n) Tenant shall during the term of this Lease, and any renewals thereof, maintain detailed
records of all inspections for health and safety by any local, state or federal agencies. Copies of
all safety inspections and health inspections shall be forwarded to Landlord for their review
within thirty (30) days of receipt of same by Tenant. All deficiencies in any report shall
immediately be corrected by Tenant. Failure to correct any deficiency within thirty (30) days of
receipt of same by Tenant shall be a breach of this Lease.

          (o) Tenant shall at all times, consider, and will comply with all existing or future safety
recommendations of the National Ski Area Association and the Pennsylvania Ski Area Association in
regard to the operation, design and type of equipment utilized by Tenant on the Property or any
other recommendations for operation, design, or otherwise affecting the use of the Property.

          (p) Landlord shall have the unlimited right to inspect the Property. If in Landlord’s
reasonable opinion, the Property or any part thereof, needs repair, maintenance or replacement,
Tenant shall repair, service, maintain or replace any portion of the Property so determined to be
deficient by Landlord.

26

 

          (q) Landlord currently operates and “800” number for its real estate sales and ski
operations. Landlord and Tenant desire to keep that number in service until April 30, 2006. The
cost of maintaining that number and the cost of the employees to service that number (their wages
and benefits) shall be borne by Landlord and Tenant equally. Landlord shall have the right to
terminate the phone number after April 30, 2006. In the event that Landlord does not terminate the
phone number, then after April 30, 2006 Landlord shall be responsible for all costs and expenses
associated thereto.

          (r) Landlord currently has a website, jfbb.com. Landlord shall assign the ownership of the
website to Tenant. Tenant shall pay for the costs for the fees and maintenance of this website.
Tenant shall have the right to use the website subject to the approval of Landlord of all
information relating to the real estate operations of Landlord or its affiliates or subsidiaries
Blue Ridge which is placed on the website. Until April 1, 2006, Landlord shall have an unlimited
right to link to said website for real estate purposes.

               After April 1, 2006, Landlord shall have the unrestricted right, without charge, to post a
prominently displayed link on the homepage of said website for Landlord or its affiliates or
subsidiaries real estate operations and to advertise on the web site or for any other purpose at
no cost to Landlord. Upon termination of the Lease the website shall belong to Landlord and the
registration of the website shall be transferred to Landlord’s name.

          (s) In the event that any employee of Peak is needed at any time for any investigation,
testimony, deposition, or otherwise, relating to any claim, action or lawsuit against Landlord or
any affiliate of Landlord, Tenant shall make such employee of Tenant available to Landlord at no
cost to Landlord at any time requested by Landlord.

          (t) Tenant shall utilize only the name “Big Boulder” on its advertising and for the ski
facility. No other name may be used to identify the ski facility except to note that it is
operated by Peak Resorts.

          (u) From November 1st through April 30 of every year of this Lease or any extension
or renewal thereof, Tenant shall be responsible for all snow clearing, ice removal, placement of
anti-skid material on all roads, parking areas, or driveways currently maintained by Landlord and
which in the future will be the responsibility of Landlord to maintain (i.e. Road “C”). Tenant
shall bill Landlord for the services rendered above on a monthly basis at a cost to Landlord no
greater than the amount, on a per hour basis, paid by Kidder Township for outside contractors for
snow removal plus Tenant’s cost for snow melting materials. Tenant shall indemnify and hold
harmless Landlord for any action or cause of action related to the above services. Landlord may
terminate this provision of the Lease at any time upon ten (10) days notice to Tenant.

          (v) Any invoice or monies due for any item owed to landlord pursuant to the above
subparagraph will be paid by Tenant on December 1, 2005 or if the invoice or monies due have not
been provided to Tenant by landlord then payment shall be due within ten (10) days of notification
by Landlord to Tenant of the amount due. The provision of this paragraph applies to

27

 

the Lease dated August 31, 2005. The right to cure monetary defaults does not apply to the
provisions of this paragraph 33.

     34. Ski Passes. Tenant shall provide to Landlord twenty-five (25) season passes and
five (5) daily passes per day for all facilities at the Property each year prior to November
1st for each upcoming ski season. Any of the passes shall include use of lifts, lessons, ski equipment
rental and snow tubing. Each daily pass shall be valid for one (1) day. Any of the passes may
be used by Landlord or any of their employees, guests, or other third parties as they may desire.
All passes will be good at both Jack Frost Ski Resort and Big Boulder Ski Resort.

     35. Subdivision.

          (a) Landlord is in the process of subdividing portions of its land for subdivisions and
Planned Residential Developments (hereinafter referred to as “Subdivisions”) some of which are part
of the land which is being leased herein, and part of it is other lands adjoining the Property
being leased herein to Tenant. Tenant acknowledges that there are Subdivisions being prepared by
Landlord and/or are in the process of having infrastructure installed or erected on the Property
for said Subdivisions. Further, Tenant acknowledges that the Landlord or its affiliates may be the
builder of some of the homes and/or buildings to be constructed in said Subdivisions and may have
non-affiliated companies or individuals purchase lots and build homes and/or other structures in
said Subdivisions. Further, Tenant acknowledges that there are numerous water, sewer, storm water,
utilities and other easements associated with said Subdivisions that cross or will cross the
Property being leased to Tenant. Tenant acknowledges that they have reviewed Landlord’s development
plans and conceptual plans for Jack Frost National Golf Course, Jack Frost Golf Course PRD, Jack
Frost Ski PRD, Boulder Lake Village Subdivision, Lake Shore Subdivision, Round Pond Subdivision,
Pheasant Run and Slope Side Subdivision and agrees that said plans and developments do not
interfere with Tenant’s ski operations. Therefore, Tenant agrees as follows:

               (1) Landlord shall have the right and easements at any time during the
term of this Lease, or any extensions thereof, to enter the Property being leased to Tenant
and to have ingress, egress and regress for the purposes of access or construction of any structures,
improvements, roads, utilities, storm water facilities or other subdivision or PRD
improvements
to be erected in, or under the Property for the Subdivisions of Landlord or any future
Subdivisions developed whether adjacent to the Property or not and to install the
infrastructure or have others install the infrastructure for the benefit of said Subdivisions, provided that
such location or use of the easement does not interfere with Tenant’s operation of a ski facility.

               (2) Landlord shall have the right to install upon the Property being
leased to Tenant water, sewer, and utility lines and storm water controls for the purposes of
the benefit of said Subdivisions. The expense for the construction of said water lines, sewer
lines,
utility lines, and storm water controls shall be the responsibility of Landlord provided that
such location does not interfere with Tenant’s operation of a ski facility.

               (3) Landlord shall have the right to erect upon the Property being
leased to Tenant any water towers, wells, storm water controls, water lines, sewer lines,
which

28

 

structures or equipment may permanently reside on or under the Property leased to Tenant, provided
that such location does not interfere with Tenant’s operation of a ski facility. Landlord hereby
reserves for itself, its customers, tenants, subtenants, licensees, grantees, successors and
assigns, for the length of this lease or any renewal thereof, an easement for the withdrawal of
water from the wells now located on the Property or to be installed on the Property leased to
Tenant or which in the future may be located on the Property.

               (4) Tenant agrees that all restrictions and requirements for all
Subdivisions as imposed by Kidder Township, Pennsylvania Department of Environmental
Protection, Carbon County Planning Commission, Delaware River Basin Commission, or any
other federal, state or local governmental agency necessary for the completion, erection, or
installation of improvements or structures within said Subdivisions which are a burden on the
Property leased to Tenant shall be permitted by Tenant to be installed, erected or placed upon
the Property being leased to Tenant, all of which shall be at the cost of Landlord.

               (5) Tenant shall not interfere with the installation, erection, placement,
use, repair, maintenance or replacement of any of the aforesaid structures, equipment, water
lines, sewer lines, utility lines, storm water controls, by Landlord on the Property, provided
that such installation, erection, placement, use, repair, maintenance or replacement does not
interfere with the Tenant’s operation of a ski facility.

               (6) Landlord shall have the right to construct access area (paths,
walkways, ski paths, alleyways, cart path, ski runs, etc.) from its Subdivisions across,
through and over the Property leased to Tenant some of which are to provide access to the Tenant’s
Buildings and ski slopes, all of which access areas shall be maintained by Tenant. The
location of such access, areas shall be. mutually agreed upon by Landlord and Tenant. The cost for
construction of these access areas shall be paid by Landlord or their successors or assigns.
All liability for these access areas after construction by Landlord shall be borne solely by
Tenant. Tenant shall be responsible for snow-making for the access points to the Ski Area from the
subdivisions during ski season to permit the residents of Landlord’s developments to ski on
and off the access ways from their developments for the portion of the access way on the Leased
Premises, provided, however, Tenant shall only be obligated to use the then existing snow
making equipment and shall be under no obligation to purchase additional snow making
equipment for this purpose.

               (7) A portion of the Leased Premises, as shown on Exhibit “O” (the
“Boulder Lake Village PRD Area”), is intended by Landlord to be a portion of the Boulder Lake
Village PRD project being developed by Landlord. That project will include one or more
condominiums and planned communities. Landlord shall have the right to create such projects
and condominiums communities and planned communities and to include the PRD Area as part
of such community or communities. Landlord may cause the PRD Area to be one or more units
(or a portion thereof) of such communities, ownership of which unit shall initially remain in
Landlord. When such communities are created, if required by Landlord, Tenant shall execute an
amendment to this Lease confirming that the PRD Area that is a portion of the Leased Premises
shall be such unit. Tenant shall cause its liability insurance policies, as described in
Paragraph 6(a), to name, in addition to Landlord, the applicable condominium and homeowners’ associations

29

 

as additional insureds, and Tenant shall indemnify and hold harmless Landlord and those
associations for any claims or damages resulting from Tenant’s operations, whether or not insured.

          (b) Tenant shall have the right to remove water from ponds or streams on the
Property for the purposes only of making snow subject to all federal, state and local
governmental rules and regulations including Delaware River Basin Commission.

          (c) Landlord, their successors or assigns, shall have the right to provide
treated water from Landlord’s sewage treatment plant for snow making to Tenant who shall
accept such treated water and utilize it for snow making purposes.

          (d) All wells on the Leased Premises shall remain the property of Landlord for
Landlord’s use. Upon central water being available to Tenant, Tenant shall connect to said
central water system at Tenant’s sole cost and expense. Until such central water system is
available for Tenant’s hookup Tenant shall use the existing wells for drinking water.

          (e) A pump house exists on the property of Landlord. The pump house
provides pumps for water removal for snow-making for the Leased Premises. The Tenant shall
maintain its own pumps for water removal and its own electric meter for the pumps. Tenant
shall be solely responsible for the repair, replacement and maintenance of all water lines on
the Property, whether used by Tenant or Landlord, or its subsidiaries, affiliates or assigns,
unless it is caused by Landlord, or its affiliates, negligence. Tenant shall also be solely responsible
for the repair, replacement and maintenance of the pump house. Tenant shall be solely responsible for
obtaining and preparing all information necessary for all reports to be submitted pertaining
to water withdrawal from Big Boulder Lake or any other water source.

          (f) Landlord, its agents, successors or assigns, shall have full access to any
water lines or water pumps on the Property leased to Tenant at any time.

          (g) Landlord reserves an unlimited easement or right of access on the
Property to lay, re-lay, install, inspect, operate, maintain, repair, alter, remove, renew,
replace, add and keep any water or sewer lines in, over, under, upon and across the Property for the
benefit of Landlord and adjacent landowners and Subdivisions, provided that
these encumbrances do not interfere with the Tenant’s operation of a ski facility.

          (h) Some of the current parking for the Leased Property is on lands of the Landlord or future
Planned Communities or Condominium Projects. Tenant shall have the right to utilize those parking
areas designated by Landlord until such time as Landlord notifies Tenant not to utilize such
parking areas. Tenant shall be responsible to insure, repair and maintain such parking areas on
the property of Landlord. All new areas for parking for Tenant on Tenant’s Leased Property shall
be Tenant’s responsibility to repair, insure and maintain.

          Landlord shall, at no cost to Landlord, its licensees, tenants, guests or assigns, have the
right, during non-ski season periods, to utilize the parking areas of Tenant.

30

 

          Tenant acknowledges and agrees that Landlord, for itself, its grantees, successors or
assigns shall have an easement and a right to access, create, erect, improve, and install roadways
through the existing parking areas of the Big Boulder Ski Resort to provide access and use to its
Lake Shore development, Slope Side development and other future developments now or when such
developments are created. Landlord shall not be responsible for replacing any parking spaces or
parking areas currently in existence as a result of the creation, installation, improvement or
erection of such roadways. Landlord shall further have full authority to install, at its expense,
all traffic control devices as required by Kidder Township or any other governmental agency or as
determined by Landlord to direct or control traffic on the said streets or through the parking
lots on the Property.

          (i) The term “road” or “roadways” utilized anywhere in this Lease shall include any storm
water facilities associated with the construction of said roads or roadways and any traffic
control devices or signs on or for said roads or roadways.

          (j) All roadways, whether existing now or created, erected or installed in the future within
the Leased Premises shall be for use by the public or by the residents of any development and shall
be repaired, replaced, and maintained by Tenant including snow removal and anti-skid materials. The
cost of the repair, maintenance and snow removal shall be shared between Tenant and any future
subdivisions in accordance with Road Maintenance Agreements to be agreed upon between the parties.
The current percentage of Tenant’s responsibility is sixty-five percent (65%) of the costs.

          (k) (1) All permits for the withdrawal of water for snow-making purposes shall remain with
Landlord. Tenant shall be responsible to reimburse Landlord for all labor, employee benefits,
materials, permit fees, supplies or other costs and expenses required to monitor and submit the
necessary reports for the water withdrawal permits. Tenant shall provide all information and
monitoring of water withdrawal required by Landlord to maintain said permits.

                (2) Tenant shall read elapsed time meters daily at the same time each and every day, and
shall inspect the monitoring pipe, and make sure that it is full. If it is not full, Tenant shall
cease snow-making and all water withdrawals. Tenant shall provide all documentation requested by
Landlord regarding water monitoring and water withdrawals. Landlord does not guarantee the
availability of water for snow making.

          (I) Throughout the Leased Premises are non-public access roads. Tenant shall repair and
maintain all said access roads on the Leased Premises including snow removal. Landlord, at
anytime, shall have full rights on ingress, egress and regress over, upon and through said access
roads. No access road shall be terminated or blocked without Landlord’s prior written permission
which may be withheld at its sole discretion.

          (m) Tenant acknowledges that Tenant has reviewed the existing Mt. Union cell tower lease and
Tenant agrees to be responsible for all lease payments due Mt. Union.

          (n) Landlord reserves the right at any time and from time to time to remove, relocate, or
demolish existing facilities including but not limited to underground storage tanks,

31

 

buildings, garages, concrete pads, parking areas, or existing equipment attach to a building or
inground. Landlord shall restore or replace such equipment, buildings or facilities on the Leased
Premises or shall provide additional area adjacent to the Leased Premises to the Tenant in size or
value to that which is removed. Any buildings that are removed or demolished shall be replaced
with buildings of a similar value except that Landlord shall have the unrestricted right without
the requirement of replacement or reimbursement, to demolish the flightline building. Further, if
Landlord shall decide to remove or demolish the Maintenance and Ski Patrol Building on the
Property then Landlord shall pay to Tenant $500.000.00, as adjusted by the percentage of
increase in the CPI in effect as of the date of this Agreement and the first day of the month in
which Landlord demolishes the Maintenance and Ski Patrol Building, which shall compensate
Tenant for all costs for a new building, moving expenses, equipment, survey, land development
costs, engineering fees, attorneys fees, and all other costs and expenses associated in any way
with Landlord taking and demolishing of the Maintenance and Ski Patrol Buildings. Landlord shall
be responsible for obtaining the land development approvals. The costs, fee and expenses incurred
by Landlord including legal and engineering fees for obtaining said approvals shall be deducted by
Landlord from the amount due Tenant above.

          (o) Further, Landlord reserves the right at any time and from time to time to provide
landscaping or screening including the erection of fences, barriers, earthen or other type of
mounds to screen any structure, facility or equipment of Tenant at any location on the Leased
Premises.

          (p) Tenant’s heavy equipment (over 20 tons), construction equipment or groomers shall not be
permitted to enter upon any entrance road to any development of Landlord’s or upon Big Boulder
Drive except for snow removal.

          (q) Tenant shall be solely responsible for the removal of sediment in Big Boulder Lake
adjacent to Tenant’s parking area. Removal of the sediment shall be done on at lease an annual
basis. Tenant shall also be responsible for controlling water runoff through its parking lots to
control water quality and water runoff into Big Boulder Lake.

     36. Liquor License.

          (a) Landlord is the owner (through its affiliates) of Liquor License No. R-19715 (hereinafter “License”).

          (b) Tenant shall form a Pennsylvania corporation, BBJF LQ, INC., which
shall be a wholly owned subsidiary of Tenant (hereinafter “Corporation”).

          (c) Landlord agrees to transfer and assign to Corporation for One Dollar
($1.00) all of Landlord’s right, title and interest in and to the License for use only at the
Property
in accordance with the rules and regulations of the Pennsylvania Liquor Control Board
(hereinafter referred to as the “PLCB”) and to execute in connection therewith all papers and
documents and to provide such information as required by the PLCB in connection with the
transfer.

32

 

          (d) Corporation agrees to purchase and accept the License for use only at the
Property in accordance with the rules and regulations of PLCB and to execute in connection
therewith all papers and documents and to provide such information as required by the PLCB in
connection with the transfer.

          (e) All of the stock of Corporation shall be pledged to Landlord as security for
the return of the License upon the termination of this Lease for any reason.

          (f) The License may not be assigned, escrowed, encumbered in any manner,
sold, transferred or conveyed except to Landlord or designee.

          (g) Tenant shall utilize and pay Landlord’s attorney to represent Corporation
in the transfer of the License.

          (h) Corporation shall have a Board of Directors of no more than three (3) members, one (1) of
whom shall be appointed by Landlord and may not be removed by Corporation’s shareholders.

          (i) Tenant and Corporation, at the termination of this Lease thereof, upon breach of this
Lease, shall, for no monetary or other consideration, and as part of the terms of this Lease,
transfer to Landlord, or its successors or assigns, the License.

          (j) Tenant and Corporation do hereby grant to Landlord a security interest in License and
agree they will execute all necessary documents, including but not limited to an irrevocable power
of attorney to transfer said License back to Landlord upon termination of this Lease, or upon any
event of default or breach of this Lease as defined herein, and further will perfect Landlord’s
security interest in the License. The requirements of Landlord for the signing of any document to
secure Landlord’s interest in the License may be at any time during this Lease, or after the
termination of the Lease.

          (k) Tenant and Corporation shall cooperate in the transfer of the License to Landlord upon
termination or default of the Lease for any reason. No payment shall be made to Tenant or
Corporation for the transfer of the License to Landlord.

          (1) Tenant shall have Corporation’s shareholders pledge all of their stock irrevocably to
Landlord to hold as security for the transfer of the License. No officers, directors, or
shareholders may be added to the initial officers, directors, and shareholders without the prior
written consent of Landlord, which in its sole discretion, may be denied. The initial officers and
directors of the Corporation must be approved by Landlord.

          (m) All of the terms, conditions, covenants and warranties set forth in the stock pledge and
Security Agreement attached as Exhibit “M” to be signed by Corporation shall be an
obligation and covenant by Tenant and are incorporated into this Lease.

          (n) Pending the transfer of the License to Corporation all operations and sales of liquor
shall be done under the control of Landlord, on the account and to the benefit of

33

 

Landlord, and Tenant give permissive use/leave to Landlord to continue operating pursuant to a
management agreement between Landlord and Corporation of even date.

          (o) Tenant shall be solely responsible for correcting all citations by the PLCB from December
1, 2005, until the re-transfer of the License to Landlord. Any violation not corrected within
sixty (60) days of PLCB citation, or such lesser time as determined by PLCB, shall then constitute
a breach of this Lease and an Event of Default.

          (p) Corporation shall maintain Liquor Liability Insurance in an amount of no less than One
Million and 00/100 ($1,000,000.00) Dollars, which insurance shall name Landlord as an additional
insured.

          (q) Tenant and Corporation shall pay for and renew the License annually and provide notice of
such renewal by August 1 of each year.

          (r) If Tenant or Corporation is in breach of this Lease for failure to comply with PLCB rules
and regulations, failure to pay when due and License renewal fees; or receives a third PLCB
citation for any reason, Landlord shall have the remedy, in addition to all other remedies
provided for herein, for said breaches of this Lease to require the transfer of the License to
Landlord who will then be free to transfer, sell or assign the License to any person, corporation
or other entity, and Tenant shall thereafter be obligated to continue to pay the same rent and
additional rent then in effect.

          (s) Tenant and Corporation shall be responsible to pay all of the transfer costs to transfer
the License to Tenant and to transfer the License back to Landlord or its designee. Transfer costs
shall include all of Landlord’s attorney’s fees, accountant fees and PLCB fees.

          (t) Tenant will keep current all taxes due the Commonwealth of Pennsylvania including but not
limited to corporate taxes, sales taxes and income taxes.

          (u) Tenant will immediately notify Landlord of any contact from the Pennsylvania Liquor
Control Board or any police agency which effects the enforcement of rules or regulations of the
Pennsylvania Liquor Control Board.

     37. Right of First Refusal. Tenant shall have a right of first refusal for the Land
described in Exhibit “A”. If Landlord agrees to sell the Land and enters into an Agreement of Sale
for said Land, Tenant shall be provided a copy of said Agreement of Sale and shall have fifteen
(15) days from the receipt of said Agreement to exercise its right to acquire the Land upon the
same terms and conditions as set forth in the Agreement of Sale. If the Tenant notifies the
Landlord of its intention to exercise its right of first refusal with respect to the Land, its
notice, together with the underlying proposed Agreement of Sale, shall constitute an Agreement of
Sale between Landlord and Tenant and the Tenant shall proceed to closing under the terms of the
Agreement of Sale. If the Tenant notifies the Landlord in writing that it shall not purchase the
Land, or if Tenant has not notified the Landlord of its decision to purchase within the fifteen
(15) days of receipt of the offer, then Tenant shall have waived its right of first refusal for any

34

 

and all subsequent offers to purchase the Property. This right of first refusal of Tenant
shall not apply to any sale to any affiliate of Landlord or to any majority shareholder of
Landlord. This right of first refusal shall end and be null and void upon the termination of this
Lease by either Landlord or Tenant or upon the end of the Lease.

          38. Notices. All notices, demands and other communications required or permitted to
be given under this Lease shall be in writing and shall be deemed to be given when delivered
(or, if delivery is refused, on the date delivery was attempted) if sent by recognized overnight
courier, or upon three (3) business days after deposit in the U.S. Mail if sent by certified
or registered mail, postage prepaid. All notices shall be addressed to Landlord and to Tenant at
the following address:

	 	 	 	 	 

	 

	 	Tenant:
	 	JFBB Ski Areas, Inc.

409 Hidden Valley Drive

Wildwood, Missouri 63025 

Attn: Stephen Mueller
	 
	 	 	 	 
	 

	 	with copy to:
	 	Helfrey, Simon & Jones, P.C.

120 S. Central Ave., Suite 1500

St. Louis, MO 63105 

Attn: David L. Jones, Esq. 

Fax: (314) 725-9100
	 
	 	 	 	 
	 

	 	Landlord:
	 	Big Boulder Corporation

Box 707 

Blakeslee, PA 18610 

ATTN: Eldon D. Dietterick
	 
	 	 	 	 
	 

	 	with copy to:
	 	Shulman, Shabbick & Ettinger

1935 Center Street 

Northampton, PA 18067

ATTN: David B. Shulman, Esquire

or to any subsequent address which Landlord or Tenant shall designate in writing for such
purpose.

     39. Guaranty

          Peak Resorts, Inc. and BBJF LQ, Inc. hereby unconditionally guarantees to Landlord the due
performance including but not limited to, the prompt payment when due of all of Tenant’s
liabilities, rental and obligations to Landlord. This shall be an unlimited and continuing
guaranty secured by a separate guaranty of Peak Resorts, Inc. and BBJF LQ, Inc. securing all of
the obligations of Tenant.

35

 

     40. Cross Agreements.

          Tenant is entering into this Lease simultaneously with Tenant entering into a similar Lease
of Tenant with Blue Ridge Real Estate Company. Any default by Tenant of any of its obligations
under its Lease with Blue Ridge Real Estate Company shall constitute and be a default of the terms
of this Lease with Landlord.

     41. Partial Invalidity. If any term, covenant or condition of this Lease or the
application thereof to any person or circumstance shall, to any extent, be invalid or
unenforceable, the remainder of this Lease or the application of such term, covenant or
condition to persons or circumstances other than those as to which it is held invalid or unenforceable
shall not be affected thereby and each term, covenant, or condition of this Lease shall be valid and
be enforced to the fullest extent permitted by law. .

     42. Notice to Quit. Tenant waives the right to any notice to remove or quit as
may be specified in the Pennsylvania Landlord and Tenant Act of April 6, 1951, as amended, or
any similar successor, provision of law, and agrees that fifteen (15) days notice shall be
sufficient in any case where a longer period may be statutorily specified.

     43. Entire Agreement-Applicable Law. This Lease, the exhibits and amendments
or addendums, if any, attached hereto and forming a part hereof, set forth all the covenants,
promises, agreements, conditions, provisions and understandings between Landlord and Tenant
concerning the Leased Premises and there are no covenants, promises, agreements, conditions,
provisions or understandings, either oral or written, between them other than are herein set
forth. No alteration, amendment, change or addition to this Lease shall be binding upon Landlord or
Tenant unless reduced to writing and sighed by each party. This Lease shall be governed by and
construed in accordance with the laws of the State in which the Leased Premises are located.

     44. Successors and Assigns. The conditions, covenants and agreements contained in
this Lease shall be binding upon and inure to the benefit of the parties hereto and their
respective heirs, executors, administrators, successors and assigns. The covenants contained herein shall
be deemed to be covenants running with the Property and the Leased Premises and shall be binding
upon all owners, users and occupants of such land for so long as this Lease remains in effect.
The restrictions, benefits and obligations under this Lease shall be deemed to create mutual
and reciprocal benefits and servitudes upon the Property and the Leased Premises, which shall run
with and against said property and be a benefit and burden thereon, except that said
restrictions, benefits and obligations shall cease and be of no further force or effect after the
termination of this Lease.

     45. Notice of Lease. The parties shall, promptly upon the request of either, execute
and deliver a Notice of Lease which Tenant shall, at its sole expense, cause to be recorded in
the Recorder of Deeds Office within ten (10) days following execution thereof and returned to
Tenant within ten (10) days after the receipt of the recorded memorandum from the Recorder of
Deeds.

36

 

     46. Broker’s Representation. Landlord represents that it dealt with no broker or
brokers and Tenant represents that it dealt with no broker or brokers in connection with the
negotiation, execution and delivery of this Lease. Landlord and Tenant shall, and do hereby,
indemnify and save the other harmless from and against any losses, damages, penalties, claims or
demands of whatsoever nature arising from a breach of its foregoing representation including,
without limitation, reasonable attorneys’ fees and expenses. The representations and
indemnifications set forth in this Section shall survive the cancellation or termination of this
Lease.

     47. Estoppel Certificates. Within twenty (20) days after request by either party, the other party shall execute and deliver to the requesting party a written certificate as to the status of
this Lease, any existing defaults, the status of the payments and performance of the parties
required hereunder and such other information that may be reasonably requested.

     48. Captions and Definitions. Marginal captions of this Lease are solely for
convenience of reference and shall not in any way limit or amplify the terms and provisions
thereof. The necessary grammatical changes which shall be required to make the provision of
this Lease apply (a) in the plural sense if there shall be more than one Landlord and (b) to any
landlord, which shall be either a corporation, an association, a partnership or an individual, male
or female, shall in all instances be assumed as though in each case fully expressed.

     49. Survival. Unless otherwise provided, upon the termination of this Lease under any of the Sections hereof, the parties hereto shall be relieved of any further liability hereunder
except as to acts, omissions or defaults occurring prior to such termination.

     50. Closing Conditions.

     (a) Tenant’s Closing Conditions. Tenant’s conditions precedent to the
effectiveness of this Lease shall be as follows:

               (1) Delivery of Non-Disturbance Agreement. It is a condition
precedent to Tenant’s obligations under this Lease that on the Commencement Date (i) Tenant
shall have received from any lender to Landlord a duly executed and acknowledged agreement in
form reasonably acceptable to Tenant, and in form suitable for recording, whereby such lender
agrees that such lender shall consent to this Lease and warrant that Tenant’s possession and
right
of use under this Lease in and to the Leased Premises shall not be disturbed by such holder
unless and until Tenant shall breach any of the provisions hereof and this Lease or Tenant’s
right
to possession hereunder shall have been terminated in accordance with the provisions of this
Lease, and (ii) such agreement shall be recorded against the Property.

               (2) Assignment of Agreements. Except as Set Forth in Schedule 1, it is
a condition precedent to Tenant’s obligations under this Lease that on the Commencement Date
Landlord shall assign to Tenant, by assignment documents in form reasonably acceptable to
Landlord and Tenant, all permits, licenses, contracts, warranties and other intangible rights
affecting the Property as provided on Exhibit “P”. Such assignments shall provide
an

37

 

undertaking of Landlord to indemnify, defend and hold Tenant harmless from and against any damage,
claim or other liability arising out of the assigned agreements prior to the Commencement Date,
and an undertaking of Tenant to indemnify, defend and hold Landlord harmless from and against any
damage, claim or other liability arising out of the assigned agreements following the Commencement
Date.

     51. Force Majeure. If there shall occur any strikes, lockouts or labor disputes,
inability to obtain adequate sources of energy, labor or material or reasonable substitutes,
acts of
God, governmental restrictions, regulations, orders, guidelines or programs, enemy or hostile
governmental action, riot, civil commotion, fire or other casualty or any other conditions,
whether similar or dissimilar to those enumerated above, which are beyond the reasonable
control of any party to this Lease and not due to the fault or negligence of such party or
financial
inability to perform, these conditions shall be deemed “unavoidable delays”. If either party
shall,
as a result of any unavoidable delay, fail to punctually perform any obligation specified in
this
Lease (other than the payment of money), then such failure shall not be deemed a breach or
default and the applicable time periods in which to perform shall be extended, but only to the
extent reasonable to account for the unavoidable delay.

     52. Choice of Law. This Lease has been executed and delivered in the
Commonwealth of Pennsylvania and shall be construed in accordance with the laws of the
Commonwealth of Pennsylvania. Any action brought to enforce or interpret this Lease shall be
brought in the Court of Common Pleas of Carbon County, Pennsylvania. Should any provision
of this Lease require judicial interpretation, it is agreed that the court interpreting or
considering
same shall not apply the presumption that the terms hereof shall be more strictly construed
against a party by reason of the rule or conclusion that a document should be construed more
strictly against the party who itself or through its agent prepared the same. It is agreed
and
stipulated that all parties hereto have participated equally in the preparation of this Lease
and that
legal counsel was consulted by each responsible party before the execution of this Lease.

     53. No Joint Venture. This Lease shall create only the relationship of Landlord and
Tenant between Landlord and Tenant and no estate shall pass out of Landlord. Nothing herein is
intended to be construed as creating a joint venture or partnership relationship between the
parties hereto.

     54. Waiver of Jury Trial. It is mutually agreed by and between Landlord and
Tenant that they hereby waive trial by jury in any action proceeding or counter-claim brought
by
either of the parties hereto against the other on any matter whatsoever arising out of or in
any
way connected with this Lease, the relationship of Landlord and Tenant, Tenant’s use or
occupancy of the Property or claim of injury or damage.

38

 

     IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year
first above written.

	 	 	 	 	 	 	 

	 	 	LANDLORD	 	 
	WITNESS:
	 	 	 	 	 	 
	 	 	BIG BOULDER CORPORATION	 	 
	 
	 	 	 	 	 	 
	/s/ Illegible

	 	By:
	 	/s/ Eldon D. Dietterick	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Eldon D. Dietterick	 	 
	 
	 	 	 	 	 	 
	 

	 	Its:
	 	Executive Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	TENANT	 	 
	WITNESS:
	 	 	 	 	 	 
	 	 	JFBB SKI AREAS, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Illegible

	 	By:
	 	/s/ Stephen Mueller	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Stephen Mueller	 	 
	 
	 	 	 	 	 	 
	 

	 	Its:
	 	Vice President	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	CORPORATION	 	 
	 
	 	 	 	 	 	 
	 	 	BBJF LQ, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Stephen Mueller	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Stephen Mueller	 	 
	 
	 	 	 	 	 	 
	 

	 	Its:
	 	Vice President	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	GUARANTOR	 	 
	 
	 	 	 	 	 	 
	 	 	PEAK RESORTS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Stephen Mueller	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Stephen Mueller	 	 
	 
	 	 	 	 	 	 
	 

	 	Its:
	 	Vice President	 	 
	 

	 	 	 	 	 	 

39

 

EXHIBIT A

 

GUARANTY

     KNOW ALL MEN, that

     For value received, in consideration of the sum of One Dollar ($1.00) paid by BLUE RIDGE REAL
ESTATE COMPANY (“Landlord”) to the undersigned, receipt of which is hereby acknowledged, and in
consideration for, and as any inducement to Landlord entering into the foregoing Lease, between
Landlord and JFBB Ski Areas, Inc. (“Tenant”), the undersigned, jointly and severally, for itself
and its successors, successors in interests and assigns, guarantees to Landlord, its successors,
successors in interest and assigns, the full and faithful performance by Tenant of Tenant’s
covenants and promises under said Lease. The undersigned also guarantees the payment of all costs,
attorney’s fees and other expenses incurred by Landlord in enforcing such performance. The
undersigned waived notice of nonpayment or proof of notice or demand.

     The validity of this Guaranty and the obligations of the undersigned under this Guaranty shall
not be terminated, affected or impaired by reason of Landlord’s assertion against Tenant of any of
Landlord’s rights or remedies under the Lease.

     Landlord may, without notice to the undersigned, modify the Lease with Tenant and grant
extensions of concessions to Tenant with respect to the Lease without affecting the liability of
the undersigned under this Guaranty. The liability of the undersigned shall continue in full force
and effect during any extension, option or renewal terms of this Lease. The undersigned guarantees
the payment of all holdover rent, and any costs or expenses uncured by Landlord resulting from
Tenant’s holdover beyond the termination of the Lease.

     The liability of the undersigned is primary and may be enforced by Landlord before or after
proceeding against Tenant and shall not be subject to deduction for any claim of offset,
counterclaim or defense which Tenant may have against Landlord. Actions to enforce this Guaranty
may be brought successively against one or both of the undersigned jointly or severally and
against one without impairing or affecting the right of Landlord against the other. This Guaranty
is a guarantee by the undersigned of payment, not collection.

     The undersigned waived notice of acceptance of this Guaranty. The word “undersigned” as used
herein refers to the signer hereof, its respective successors, legal representatives and assigns.

	 	 	 	 	 
	Dated 12/1/05                         	GUARANTOR

PEAK RESORTS, INC.

 	 
	 	By:  	/s/ Stephen Mueller
 	 
	 	 	Name  	Stephen Mueller 	 
	 	 	Title:  	Vice President 	 

41

 

	 	 	 	 	 

	 	 	 	 	 
	 	BBJF LQ, INC.

 	 
	 	BY:  	/s/ Stephen Mueller
 	 
	 	 	Name  	Stephen Mueller 	 
	 	 	Title:  	Vice President 	 
	 

42

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}]]