Document:

exv10w19

Exhibit 10.19

LEASE AGREEMENT

By and Between

EPT MAD RIVER, INC.,

a Missouri corporation

(“Landlord”)

and

MAD RIVER MOUNTAIN, INC.,

a Missouri corporation

(“Tenant”)

For:

Mad River Mountain Ski Resort

Bellefontaine, Ohio

November 17, 2005

	 	 	 

	Timothy Laycock

	 	David L. Jones
	Stinson Morrison Hecker LLP

	 	Helfrey, Simon & Jones, P.C.
	1201 Walnut Street, Suite 2900

	 	120 South Central Avenue, Suite 1500
	Kansas City, Missouri 64106

	 	St. Louis, Missouri 63105
	Telephone: (816) 842-8600
	 	Telephone: (314) 725-9100 
	Facsimile: (816) 691-3495

	 	Facsimile: (314) 725-5754
	 
	 	 
	Counsel to Landlord

	 	Counsel to Tenant

 

 

RENT AND EXPENSE RIDER

	 	 	 

	EXHIBIT A

	 	Legal Description
	EXHIBIT B

	 	Site Plan
	EXHIBIT C

	 	Ski Facility Description
	EXHIBIT D

	 	Insurance Endorsements
	EXHIBIT E

	 	Restrictive Agreements
	EXHIBIT F

	 	Tenant’s Property

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LEASE

     THIS LEASE, effective as of November 17, 2005, is made by and between EPT MAD RIVER, INC., a
Missouri corporation (“Landlord”), and MAD RIVER MOUNTAIN, INC., a Missouri corporation
(“Tenant”).

     1. Attachments to Lease; Rent and Expense Rider and Exhibits.

          Attached to this Lease and hereby made a part hereof are the following:

          RENT AND EXPENSE RIDER — a statement of the Annual Fixed Rent, Annual Percentage Rent
and common area and real estate tax charges, if any, which are to be paid by Tenant hereunder
together with provisions pertaining to the payment thereof.

          EXHIBIT A — a legal description of the tract of land constituting the land portion of
the Leased Premises.

          EXHIBIT B — a site plan (the “Site Plan”) of the Leased Premises showing (i) the
location of the Ski Facility, and (ii) the location of any other buildings and improvements, lifts
or other vertical transportation fixtures and equipment and water lines serving any snow generation
equipment, constructed or to be constructed, if known, within the Leased Premises by any person or
entity, and (iii) the location of all parking areas within the Leased Premises which are available
for the Ski Facility.

          EXHIBIT C — a description of the Ski Facility and the improvements constructed on the
Leased Premises.

          EXHIBIT D — a listing of insurance endorsements.

          EXHIBIT E — a listing of Restrictive Agreements.

          EXHIBIT F — a listing of Tenant’s Property

     2. Definitions and Rules of Construction.

          (A) Definitions. The following terms for purposes of this Lease shall have the
meanings hereinafter specified:

          “ADA” shall mean the Americans with Disabilities Act of 1990, as
amended, 42 U.S.C. 12.101 et seq.

          “Affiliate” shall mean as applied to a person or entity, any other
person or entity directly or indirectly controlling, controlled by, or under common
control with, that person or entity.

          “Annual Fixed Rent” subject to adjustment as provided in Section 48,
shall mean the annual fixed rent payable hereunder, which shall be the following:

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          (1)
From the Commencement Date to the end of the 1st Lease Year, an amount, per annum,
equal to $990,000.00.

          (2) During each subsequent Lease Year the Annual Fixed Rent shall increase by an amount equal
to the lesser of (a) 1.5% multiplied by the Annual Fixed 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.

          “Annual Percentage Rent” is defined in the Rent and Expense
Rider.

          “Code” means the Internal Revenue Code of 1986, as the same may be amended or
supplemented, and the rules and regulations promulgated thereunder.

          “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.

          “Commencement Date” is defined in the Article captioned
“Term.”

          “Default Rate” shall mean the lesser of (i) the Prime Rate plus 4% or (ii) the highest
rate of interest that may lawfully be charged to the party then required to pay interest under this
Lease at the Default Rate.

          “Effective Date” is defined in the Article captioned “Term.”

          “Force Majeure” is defined in the Article captioned “Force
Majeure.”

          “Governmental Authorities” shall mean all federal, state, county, municipal and local
departments, commissions, boards, bureaus, agencies and offices thereof, having or claiming
jurisdiction over all or any part of the Leased Premises (if applicable) or the Ski Facility or the
use thereof.

          “Gross Receipts” is defined in the Rent and Expense Rider.

          “Guarantor” shall mean Peak Resorts, Inc., a Missouri
corporation.

          “Guaranty” shall mean the Guaranty by and between Landlord and Guarantor, of even date
herewith.

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          “Hazardous Substances” is defined in the Article captioned “Governmental Compliance.”

          “Laws” shall mean all present and future requirements, administrative and judicial
orders, laws, statutes, ordinances, rules and regulations of any Governmental Authority, including,
but not limited to the ADA.

          “Lease Year” is defined in the Rent and Expense Rider.

          “Leased Premises” shall mean the Ski Facility, the Landlord’s interest (as fee owner
or ground lessee) in land thereunder described on Exhibit A attached hereto and all improvements,
fixtures, appurtenances, rights, easements and privileges thereunto belonging or in any way
appertaining, and all other rights, easements and privileges granted to Tenant in this Lease,
excluding, however, Tenant’s Property as defined below.

          “Mortgage” shall mean any mortgage or deed of trust or other instrument in the nature
thereof evidencing a security interest in the Leased Premises or any part thereof.

          “Number of Fixed Term Years” shall mean twenty-one (21)
years.

          “Percentage Rate” shall mean 12%.

          “Prime Rate” shall mean the per annum interest rate from time to time publicly
announced by Citibank, N.A., New York, New York as its base rate. If Citibank, N.A. should cease to
publicly announce its base rate, the Prime Rate hereunder shall be the prime, base or reference
rate of the largest bank (based on assets) in the United States which announces such rate.

          “Related Agreement” shall mean any lease, sublease, note, mortgage, loan agreement or
similar agreement (a) by and between Landlord or an Affiliate of Landlord, and Tenant or an
Affiliate of Tenant; or (b) by Tenant or an Affiliate of Tenant to or for the benefit of Landlord
or an Affiliate of Landlord, including without limitation any lease agreement by and between EPT
Crotched Mountain, Inc. (“EPT Crotched Mountain”), an affiliate of Landlord, and S N H Development,
Inc., a Missouri corporation (“SNH”), an affiliate of Tenant, of the ski facility located in
Bennington, New Hampshire, any promissory note executed by SNH payable to EPT Crotched Mountain,
any leasehold mortgage executed by SNH for the benefit of EPT Crotched Mountain, and any other
document or instrument evidencing, securing, or otherwise relating to any loan by EPT Crotched
Mountain or any Affiliate of Landlord to SNH.

          “Rent” shall mean Annual Fixed Rent, Annual Percentage Rent and any other charges,
expenses or amounts payable by Tenant under this Lease.

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          “Restrictive Agreements” shall mean those certain reciprocal easement
agreements, operating agreements, development agreements, easement agreements and/or
other similar agreements and instruments that govern and regulate the development of
the Leased Premises, including without limitation all agreements described on
Exhibit E attached hereto and by this reference made a part hereof.

          “Ski Facility” shall mean the skiing facility located on the Leased
Premises which presently contains approximately forty acres of ski-able terrain
serviced by nine lifts located in Bellefontaine, Ohio.

          “Taxes” is defined in the Rent and Expense Rider.

          “Tenant’s Property” is defined in the Article captioned
“Fixtures.”

          “Tenant’s Signs” is defined in the Article captioned “Tenant’s
Signs.”

          “Term of this Lease” or “term hereof shall mean the term of
this Lease as provided in the Article captioned “Term”.

          (B) Rules of Construction. The following rules of construction shall be applicable for
all purposes of this Lease, unless the context otherwise requires:

               (1) The terms “hereby,” “hereof,” “hereto,” “herein,” “hereunder” and any similar terms shall
refer to this Lease, and the term “hereafter” shall mean after, and the term “heretofore” shall
mean before, the date of this Lease.

               (2) Words of the masculine, feminine or neuter gender shall mean and include the correlative
words of the other genders and words importing the singular number shall mean and include the
plural number and vice versa.

               (3) The terms “include,” “including” and similar terms shall be construed as if followed by
the phrase “without being limited to.”

     3. Premises.

          (A) Demise. Landlord hereby demises and leases unto Tenant, and Tenant hereby leases
from Landlord, for the consideration and upon the terms and conditions herein set forth, the Leased
Premises.

          (B) No Representations by Landlord. Tenant acknowledges that, except as herein
expressly set forth, Landlord has not made, does not make, and specifically negates and disclaims
any representations, warranties, promises, covenants, agreements or guaranties of any kind or
character whatsoever, whether express or implied, oral or written, of, as to, concerning, or with
respect to, (i) the value, nature, quality or condition of the Leased Premises, including, without
limitation, the water, soil and geology; (ii) the suitability of the Leased Premises for any

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and all activities and uses which may be conducted thereon; (iii) the compliance of or by the
Leased Premises with any laws, rules, ordinances or regulations of any applicable governmental
authority or body; (iv) the habitability, merchantability, marketability, profitability or fitness
for a particular purpose of the Leased Premises, or (v) any other matter with respect to the Leased
Premises, and specifically, Landlord has not made, does not make and specifically negates and
disclaims any representations or warranties regarding compliance of the Leased Premises with any
environmental protection, pollution or land use laws, rules, regulations, orders or requirements,
including without limitation, those pertaining to solid waste, as defined by the U.S. Environmental
Protection Agency Regulations at 40 C.F.R., Part 261, or the disposal or existence, in or on the
Premises, of any hazardous substances, as defined by The Comprehensive Environmental Response
Compensation and Liability Act of 1980, as amended, and the regulations promulgated thereunder.
Tenant shall rely solely on its own investigation of the Leased Premises and not on any information
provided or to be provided by Landlord, its directors, contractors, agents, employees or
representatives. Landlord shall not be liable or bound in any manner by any verbal or written
statements, representations or information pertaining to the Leased Premises or the operation
thereof, furnished by any party purporting to act on behalf of Landlord.

     4. Term. The term of this Lease shall commence on the date first above written
(the
“Commencement Date”), and shall expire as of midnight on the last day of the last year
of the
Number of Fixed Term Years from the first day of the first month immediately following the
Commencement Date (the “Term”).

     5. Rent.

          (A) Fixed and Percentage. Tenant shall pay Landlord, without abatement, adjustment or
setoff except as otherwise expressly set forth herein, the Annual Fixed Rent in the manner set
forth herein and in the Rent and Expense Rider commencing on the Effective Date, and, if
applicable, Annual Percentage Rent, in the manner set forth herein and in the Rent and Expense
Rider.

          (B) Prohibition of Use. If at any time during the term of this Lease, (i) any Law
shall prohibit the use of Ski Facility for the purposes permitted in Section 8(A)(i) or (iii) of
this Lease (the “Prohibition”), then immediately upon the earlier to occur of (a) Tenant becoming
aware of any proposed Prohibition, or (b) Tenant’s receipt of any notice from any Governmental
Authorities of any Prohibition, Tenant shall promptly notify Landlord of such fact, and Tenant
shall have the right to proceed, in its or Landlord’s name, and at Tenant’s sole cost and expense,
to take such action as Tenant shall determine to be necessary or desirable to contest or challenge
the Prohibition. If a Prohibition should occur or be imposed, nothing in this paragraph (B) shall
be deemed to impair Tenant’s obligations under paragraph (D) of the Article captioned “Governmental
Compliance” at any time during which Tenant is not prohibited from using the Ski Facility for the
purposes permitted in Section 8(A)(i) and (iii) of this Lease by the Prohibition.

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     6. Covenant of Title; Authority and Quiet Possession; Transfer of Title.

          (A) Landlord’s Covenant. Landlord represents and warrants to Tenant that: (i) Landlord
has full right and lawful authority to enter into and perform Landlord’s obligations under this
Lease for the term hereof, and Landlord has not suffered, incurred or entered into any contracts,
leases, tenancies, agreements, restrictions, violations, encumbrances or defects in title of any
nature whatsoever which materially adversely affects Landlord’s right, title and interest in the
Leased Premises or the fulfillment of its obligations under this Lease; (ii) except for any
Mortgages which exist upon the Commencement Date, this Lease shall not be subject or subordinate to
any Mortgage except for such subordination as may be accomplished in accordance with the provisions
of the Article captioned “Estoppel Certificate, Attornment,” etc.; and (iii) if Tenant shall
discharge the obligations herein set forth to be performed by Tenant, Tenant shall have and enjoy,
during the term hereof, the quiet and undisturbed possession of the Leased Premises, as in this
Lease contemplated, free from interference by Landlord or any party claiming under Landlord.

          (B) Leasehold Title Policy. At the request of Tenant, Landlord shall furnish Tenant,
at Tenant’s sole cost and expense, a binding commitment for the issuance of a leasehold owner’s -
policy on the then-current policy form available in the state in which the Leased Premises is
located, in the amount so requested by Tenant, written by a title company selected by Landlord and
reasonably acceptable to Tenant, committing to insure as of the date of the recording of a
memorandum of this Lease that the condition and state of the title to the leasehold estate created
hereunder is in accordance with clauses (i) and (ii) of paragraph (A) of this Article. The
acceptance of such commitment or resulting title policy by Tenant shall in no way be construed as a
waiver of, or in any way be deemed to impair, Landlord’s representations and warranties set forth
in paragraph (A) of this Article. By executing this Lease, Tenant shall be deemed to have approved
and accepted the status of title as reflected in such title commitment.

          (C) Change of Ownership. Landlord shall promptly notify Tenant in writing of any
change in the ownership of the Leased Premises, giving the name and address of the new owner and
instructions regarding the payment of rent. In the event of any change in or transfer of title of
Landlord in and to the Leased Premises or any part thereof, whether voluntary or involuntary, or by
act of Landlord or by operation of Laws, Tenant shall have the right to continue to pay Rent to the
party-Landlord to which Tenant was making such payments prior to such change in title until Tenant
shall have been notified of such change in title and given satisfactory proof thereof (it being
hereby agreed that a letter from the prior owner of the Leased Premises notifying Tenant of such
transfer and the name and address of the new owner shall be deemed satisfactory proof of such
change in title).

     7. Use of Premises.

          (A) During The Term of This Lease. During the Term of This Lease, the Ski Facility
shall not be used for any purpose except (i) primarily as a ski resort; (ii) for the incidental
sale or rental (or both) of skis, snowboards, and ski apparel; (iii) for the retail sale therein of
food, beverages and refreshments of the type commonly offered at ski resorts. Notwithstanding
anything to the contrary herein, Tenant shall not have the right to use the Leased Premises, or any
part thereof, for any use or purpose which is not permitted by, or which

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results in a violation of, any agreement, covenant or restriction to which the Leased Premises
is subject as of the date of this Lease, including the Restrictive Agreements and any other
restrictive agreements applicable to the Leased Premises and of which Tenant has been notified in
writing by Landlord or of which Tenant has knowledge.

          (B) Landlord Assistance. Landlord agrees to execute, without cost to Landlord, such
customary applications, consents and other instruments as shall be required by Governmental
Authorities to permit the operation of the Ski Facility as permitted by this Lease, so long as such
applications, consents or other instruments do not impose or subject Landlord to any liability or
claim, and Tenant hereby covenants and agrees to indemnify and hold harmless Landlord from and
against any and all claims, costs, demands, losses or liabilities (including attorneys’ fees) which
Landlord may suffer or incur by reason of Landlord’s execution of any such applications, consents
or other instruments as Tenant may request. If at any time any claims, costs, demands, losses or
liabilities are asserted against Landlord by reason of Landlord’s execution of any such
applications, consents or other instruments as Tenant may request, Tenant will, upon notice from
Landlord, defend any such claims, costs, demands, losses or liabilities at Tenant’s sole cost and
expense by counsel, selected by Tenant, and reasonably acceptable to Landlord. The provisions of
this paragraph shall not be construed as limiting the representations and warranties of Landlord
set forth in paragraph (A) of the Article captioned “Covenant of Title,” etc.

     8. Subletting and Assigning.

          (A) Landlord’s Consent. Tenant shall not voluntarily, involuntarily or by operation of
law assign, transfer, mortgage, sublet, hypothecate or otherwise transfer or encumber the leasehold
estate created by this Lease, Leased Premises, or any interest therein, in whole or in part without
the consent of Landlord, which consent Landlord agrees not to unreasonably withhold, condition or
delay.

          (B) Continuation of Liability. If Tenant requests, and Landlord consents, to an
assignment of this Lease or a sublet of all or any part of the Leased Premises Tenant shall,
subject to the provisions of paragraph (C) of this Article, remain liable and responsible under
this Lease.

          (C) Release of Liability. Tenant shall be released and relieved from further liability
under this Lease if Tenant requests and Landlord consents to an assignment and (i) the assignee, by
written instrument, duly executed and acknowledged and delivered to Landlord, assumes and covenants
and agrees with Landlord to perform all the terms, covenants and conditions of this Lease which by
the terms hereof are binding on Tenant from and after such transfer and (ii) such assignee (or the
guarantor of such assignee’s obligations under this Lease) shall have a book net worth of not less
than $15,000,000 as of the end of the calendar month preceding the month during which any such
assignment becomes effective, as demonstrated to Landlord’s reasonable satisfaction (e.g. by
audited financial statements or the delivery of a 10-Q report, in the case of a public company).

          (D) Landlord’s Assignment. Anything in this Lease to the contrary notwithstanding,
Landlord shall have the right, without Tenant’s consent, to sell, transfer, or

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assign Landlord’s interest in the Leased Premises and/or this Lease at any time and in such
event, Landlord shall be relieved of Landlord’s obligations under this Lease to the extent such
obligations arise after the date of such sale, transfer, or assignment, provided that such
transferee, or assignee agrees to assume all of the unaccrued obligations under this Lease and
agrees to perform to the full extent required under the terms and conditions of this Lease.

          (E) Assignment of Rights in Sublease. As security for performance of its
obligations under this Lease, Tenant hereby grants, conveys and assigns to Landlord all right,
title and interest of Tenant in and to all subleases now in existence or hereinafter entered into
for any or all of the Leased Premises, and all extensions, modifications and renewals thereof and
all rents, issues and profits therefrom (“Assignment of Subleases”). Landlord hereby grants to
Tenant a license to collect and enjoy all rents and other sums of money payable under any sublease
of any of the Leased Premises; provided, however, that Landlord shall have the absolute right at
any time after the occurrence and continuance of an event of default as herein provided, upon
notice to Tenant and any subtenants, to revoke said license and to collect such rents and sums of
money and to retain the same. Tenant shall not (i) consent to, cause or allow any material
modification or alteration of any of the terms, conditions or covenants of any of the subleases or
the termination thereof, without the prior written approval of Landlord which shall not be
unreasonably withheld or delayed nor (ii) accept any rents (other than customary security deposits)
more than 30 days in advance of the accrual thereof nor (iii) permit anything to be done, the doing
of which, nor omit or refrain from doing anything, the omission of which, will or could be a breach
of or default in the terms of any of the subleases.

          (F) REIT Limitations. At such time as the Landlord in this Lease may be a real
estate investment trust, the following provisions shall apply: anything contained in this Lease to
the contrary notwithstanding, Tenant shall not: (i) sublet or assign or enter into other
arrangements such that the amounts to be paid by the sublessee or assignee thereunder would be
based, in whole or in part, on the income or profits derived by the business activities of the
sublessee or assignee; (ii) sublet or assign the Leased Premises or this Lease to any person that
Landlord owns, directly or indirectly (by applying constructive ownership rules set forth in
Paragraph 856(d)(5) of the Internal Revenue Code), a 10% or greater interest within the meaning of
Section 856(d)(2)(B) of the Code; or (iii) sublet or assign the Leased Premises or this Lease in
any other manner or otherwise derive any income which could cause any portion of the amounts
received by Landlord pursuant to this Lease or any sublease to fail to qualify as “rents from real
property” within the meaning of Paragraph 856(d) of the Code, or which could cause any other income
received by Landlord to fail to qualify as income described in Paragraph 856(c)(2) of the Code. The
requirements of this subpart (G) shall likewise apply to any further subleasing by any subtenant.

          (G) Licenses, Etc. For purposes of this Article, subleases shall be deemed to
include any licenses, concession arrangements, management contracts or other arrangements relating
to the possession or use of all or any part of the Leased Premises.

          (H) Default Notices After Assignments. If Tenant assigns this Lease and remains
liable hereunder, then Landlord, when giving notice to said assignee or any future assignee in
respect of any default, shall also serve a copy of such notice in the manner provided herein upon
the original tenant named in this Lease (the “Original Tenant”). The Original

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Tenant, at its sole option, shall have the same period that such assignee as Tenant under this
Lease has to cure such default. If because of a default of an assignee after an assignment of this
Lease (i) this Lease shall terminate, or (ii) this Lease and the term hereof ceases and expires, or
(iii) an assignee’s possession of the Leased Premises shall be terminated without termination of
this Lease (Landlord hereby agreeing to terminate this Lease upon the Original Tenant and Landlord
executing a new lease if Original Tenant exercises its option to become the tenant thereunder),
then in any of such events Landlord shall promptly give the Original Tenant notice thereof, and the
Original Tenant shall have the option, to be exercised by notice to Landlord given within 30 days
after receipt by the Original Tenant of Landlord’s notice, to cure any default and become Tenant
under a new lease for the remainder of the term of this Lease (including any renewal periods) upon
all of the same terms and conditions as then remain under this Lease as it may have been amended by
agreement between Landlord and Original Tenant. If any default of an assignee is incapable of being
cured by the Original Tenant, then notwithstanding the failure to cure same, the Original Tenant
shall have the foregoing option to enter into a new lease. Such new lease shall commence on the
date of termination of this Lease. Notwithstanding the foregoing, if Landlord delivers to the
Original Tenant, together with Landlord’s notice, a release as to all liability under this Lease as
theretofore amended, the Original Tenant shall not have the foregoing option.

     9. Continued Possession of Tenant.

          Any holding over after the last day of any extension of the term hereof, or after the last day
of Term hereof if this Lease is not extended, shall be construed to be a monthly tenancy, on the
terms herein set forth, terminable by either party on not less than one month’s notice, with the
exception that Annual Fixed Rent shall be increased to one hundred and fifty hundred percent (150%)
of the Annual Fixed Rent that existed for the year prior to the expiration of the then current
term.

     10. Fixtures.

          Any and all trade fixtures and equipment (but excluding any and all equipment, lifts, vertical
transportation equipment, snow generation equipment, water lines, machinery, fixtures, and other
items of real and/or personal property, including all components thereof now or hereafter located
in or on the Leased Premises or used in connection with, and permanently affixed to or incorporated
into, the improvements on the Leased Premises, and any replacements, modifications, alterations and
additions thereto), signs, appliances, furniture and other personal property installed in the Ski
Facility on the Commencement Date or any time thereafter by Tenant (all of the foregoing being
collectively referred to in this Lease as “Tenant’s Property”), shall not become a part of
the realty and, provided that Tenant is not in default of this Lease, may be removed from the Ski
Facility by Tenant at any time during the term hereof or upon the termination of the term hereof;
provided, however, if and to the extent that Tenant is in default of this Lease, then Landlord
shall have any and all rights at law or in equity, including, but not limited to, any and all
liens, claims, demands or rights, including rights of levy, execution, sale and distraint for
unpaid rent, or any other right, interest or lien which Landlord has or may hereafter acquire in
any of Tenant’s Property.

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     11. Utilities.

          (A) Tenant shall pay all charges for gas, electricity, water, sewer service and other
utilities used in the Ski Facility and the Leased Premises during the term hereof, all such
utilities to be separately metered and to be obtained by Tenant from the applicable utility
company; PROVIDED HOWEVER, Tenant also shall be solely responsible for the payment of any
connection, tap, hookup or other fee(s) imposed by Governmental Authority or by any utility company
to extend and/or connect utility service to the Leased Premises.

          (B) Tenant shall, at Tenant’s expense, furnish, install and maintain in good condition and
repair, to points in the Ski Facility, all storm and sanitary sewers, and all gas, water,
telephone, electrical facilities and other utilities of such size and type as may be required to
provide adequate service for the Leased Premises and the operations of Tenant thereon.

     12. Governmental Compliance.

          (A) Tenant Responsibilities Generally. Tenant shall comply with all Laws which affect
the Leased Premises and the Ski Facility located thereon and the use and occupancy thereof. If
Tenant receives written notice of any violation of any governmental requirements applicable to the
Leased Premises, Tenant shall give prompt notice thereto to Landlord.

          (B) Parties; Environmental Knowledge. Tenant hereby acknowledges and agrees that (i)
it has received copies of an environmental assessment prepared by Environmental Operations, Inc.,
Project #1979.04, dated September 12, 2005, respecting the Leased Premises (the “Environmental
Report”), Tenant is fully aware of the contents of the Environmental Report, and Tenant accepts
the Leased Premises subject to all matters and conditions disclosed in the Environmental Report;
and (ii) Landlord has not undertaken any investigation or inquiry with respect to environmental
aspects of the Leased Premises other than the Environmental Report and makes no representations or
warranties concerning the condition of the Leased Premises or the environmental condition of the
Leased Premises.

          (C) Tenant’s Environmental Responsibilities. During the Term of this Lease, Tenant
shall not cause or permit any Hazardous Substances to be Used on, in or under the Leased Premises
by Tenant, Tenant’s agents, employees or contractors, or anyone claiming by, through or under
Tenant, except in the ordinary course of business in the operation of Tenant’s business as
permitted by Paragraph 7(A) of this Lease, or as reasonably required in performing the obligations
of Tenant under this Lease, and then only to the extent that there is no contamination of the
leased Premises and that no Laws in effect at such time are violated by Tenant.

          (D) Environmental Indemnities. Tenant shall indemnify and save Landlord harmless from
any and all claims of third parties, and damages, costs and losses owing to third parties or
suffered by Landlord, including court costs, reasonable attorneys’ fees and consultants’ fees,
arising during or after the term and reasonably incurred or suffered by the as a result of any
default or breach of any representation, warranty or covenant made by Tenant under this Article. It
is a condition of this indemnification and save harmless that Tenant shall receive notice of any
such claim against the Landlord promptly after Landlord first has knowledge thereof, but no

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failure by Landlord to promptly notify Tenant of any such claim shall adversely affect Landlord’s
right to indemnification except (and only to the extent) that Tenant can prove prejudice as a
result of the failure to receive prompt notice. This indemnification and save harmless includes any
and all costs reasonably incurred by Landlord after notice to Tenant for any cleanup, removal or
restoration mandated by any public official acting lawfully under applicable Laws if Tenant shall
not timely perform such work.

          (E) Definition. As used herein, “Hazardous Substance” means any substance
that is toxic radioactive, ignitable, flammable, explosive, reactive or corrosive and that is, in
the form, quantity, condition and location then found upon or under the Leased Premises and/or the
remainder of the Leased Premises, as the case may be, regulated by any Governmental Authority.
“Hazardous Substance” includes any and all materials and substances that are defined as “hazardous
waste,” “hazardous chemical,” “pollutant,” “contaminant” or “hazardous substance,” in the form,
quantity, condition and location then found upon the Leased Premises and/or the remainder of the
Leased Premises, as the case may be, pursuant to Law. “Hazardous Substance” includes asbestos,
polychlorinated biphenyls and petroleum.

          (F) Survival. The provisions of this Article shall survive the expiration or
sooner termination of this Lease.

     13. Maintenance and Repairs.

          (A) Warranty. Landlord will, so long as no event of default shall have occurred
and be continuing, assign or otherwise make available to the Tenant any and all rights the Landlord
may have under any vendor’s or manufacturer’s warranties or undertakings with respect to the Leased
Premises, but Landlord does not warrant or represent that any such warranties or undertakings are
or will be available to Tenant, and Landlord shall have no further obligations or responsibilities
respecting such warranties or undertakings.

TENANT HEREBY WAIVES ALL STATUTORY REPRESENTATIONS AND WARRANTIES ON THE PART OF LANDLORD,
INCLUDING, WITHOUT LIMITATION, ALL WARRANTIES THAT THE LEASED PREMISES ARE FREE FROM DEFECTS OR
DEFICIENCIES, WHETHER HIDDEN OR APPARENT, AND ALL WARRANTIES THAT THEY ARE SUITABLE FOR TENANT’S
USE.

          (B) Maintenance and Repairs. Tenant shall pay all costs, expenses, fees and
charges incurred in connection with the use or occupancy of the Leased Premises. Tenant shall at
all times, at its own expense, and subject to reasonable wear and tear, keep the Leased Premises in
good operating order, repair, condition and appearance. With respect to the Leased Premises, the
undertaking to maintain in good repair shall include, without limitation, all interior and exterior
repairs (including all replacements of components, systems or parts which are a part of, or are
incorporated into, the Leased Premises or any part thereof), whether structural or nonstructural,
foreseen or unforeseen, ordinary or extraordinary and all common area maintenance including,
without limitation, removal of dirt, snow, ice, rubbish and other obstructions and maintenance of
sidewalks and landscaping.

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          (C) Minor Alterations. So long as no event of default shall have occurred and be
continuing, Tenant may, at its expense, make interior and/or exterior nonstructural additions to
and alterations to the Leased Premises with prior written notice to and consent by Landlord;
however consent shall not be required if the cost of such additions or alterations is less than
$100,000.00; provided, that (i) upon completion of such additions or alterations, neither the fair
market value of the Leased Premises shall be lessened thereby nor the utility or condition of the
Leased Premises impaired, below the value, utility or condition thereof immediately prior to such
action, (ii) such additions or alterations shall not result in a change of use of the Leased
Premises, and (iii) such work shall be completed in a good and workmanlike manner and in compliance
with all applicable legal requirements and insurance requirements. Any and all such additions and
alterations shall be and remain part of the Leased Premises and shall be subject to this Lease. In
no event shall Landlord be obligated to reimburse or compensate Tenant or any other person or
entity for any such additions, alterations or improvements to the Leased premises, and Tenant
hereby waives any right to reimbursement or compensation for any such additions, alterations or
improvements.

          (D) Certain Limitations. Notwithstanding anything set forth in paragraphs (A), (B) and
(C) of this Article to the contrary, the obligations Tenant set forth therein shall be subject to
the provisions set forth in the Articles captioned “Damage Clause” and “Condemnation.”

     14. Damage Clause.

          (A) Damage. If the Ski Facility shall be damaged or destroyed by fire, casualty or any
cause whatsoever, either in whole or in part, and Tenant does not elect to terminate this Lease
pursuant to the provisions of paragraph (B) hereof, Tenant shall with due diligence remove any
resulting debris and fully repair and/or restore and rebuild in their entirety the damaged or
destroyed structures and other improvements, including any improvements or betterments made by
Landlord or Tenant. Subject to Paragraph 15(A) hereof, Landlord shall make all insurance proceeds
available as a result of such fire, casualty or other destruction to Tenant for restoration. Tenant
shall submit in advance to Landlord plans and specifications for rebuilding/restoring the
structures and other improvements and shall obtain Landlord’s consent (which shall not be
unreasonably withheld or delayed) to any material deviation from such plans and specifications.
Until the earlier of (i) the date 90 days after the date the Ski Facility are repaired, rebuilt and
put in good and tenantable order, or (ii) the date Tenant reopens the portions(s) of the Ski
Facility so damaged or destroyed, the Annual Fixed Rent and other charges hereby reserved, or a
fair and just proportion thereof according to the nature and extent of the damage sustained, shall
be abated, but only to the extent of any rental interruption insurance proceeds actually received
by Landlord.

          (B) Right to Terminate on Certain Damage. If during the final three (3) years of the
Term, the Ski Facility is damaged or destroyed by fire, casualty or any cause whatsoever to such an
extent that all or a portion thereof is rendered unsuitable for use as a ski resort and the cost of
restoration would exceed 50% of the amount it would cost to replace the Ski Facility in its
entirety at the time such damage or destruction occurred, and if Tenant has complied with its
insurance obligations under this Lease (including maintaining insurance against loss of rents by
Landlord), Tenant may terminate this Lease by notice to Landlord given

12

 

within thirty (30) days after such damage or destruction. If Tenant elects to terminate this
Lease as provided herein, Tenant shall pay to Landlord, as a condition upon the effectiveness of
such termination, within sixty (60) days after such notice, an amount equal to all insurance
proceeds for such damage or destruction (except any for Tenant’s Property) together with an amount
equal to the difference, if any, between the amount of insurance proceeds turned over to Landlord
and the net book value of The Ski Facility as accurately reflected in Landlord’s financial records
as of the date of such damage or destruction. Upon the giving of such notice by Tenant to
terminate, and Tenant’s payment of all amounts provided for herein, this Lease shall automatically
terminate and the Annual Fixed Rental and other charges hereunder shall be equitably adjusted as of
the date of such destruction.

          (C) Uninsured Damage. If, at any time during the term hereof, all or a portion of the
Ski Facility shall be damaged or destroyed by a casualty not insurable under the insurance required
to be maintained by Tenant under this Lease, Tenant may terminate this Lease by notice to Landlord
given within 30 days after such damage or destruction. If Tenant elects to terminate this Lease as
provided herein, Tenant shall pay to Landlord, as a condition upon the effectiveness of such
termination, within 60 days after such notice, an amount equal to the net book value of the Ski
Facility as accurately reflected in Landlord’s financial records as of the date of such damage or
destruction. Upon the giving of such notice by Tenant to terminate, and Tenant’s payment of all
amounts provided for herein, this Lease shall automatically terminate and the Annual Fixed Rental
and other charges hereunder shall be equitably adjusted as of the date of such destruction.

          (D) Effect of Lease Termination. If Tenant so elects to terminate this Lease as
provided in paragraphs (B) or (C) of this Article, Landlord shall nevertheless have the option of
negating such notice of termination by giving notice to Tenant of such negation, which notice, if
given at all, shall be given within 60 days of Landlord’s receipt of Tenant’s notice of
termination. If Landlord elects to negate Tenant’s notice of termination, then (i) this Lease shall
not terminate, and (ii) Landlord shall, with due diligence, repair and restore the Ski Facility in
its entirety at Landlord’s sole cost and expense. If Landlord elects to negate Tenant’s notice of
termination as provided herein, then all insurance proceeds payable as a result of such damage or
destruction (except for proceeds payable with respect to Tenant’s Property) shall belong to
Landlord, and Tenant’s Annual Fixed Rent shall abate (i) during the period of restoration, to the
extent that Landlord receives compensation for lost rents by policies of insurance described in
Section 16(E); and (ii) following restoration, in proportion to the portion of the Ski Facility
that is rendered unusable by reason of the casualty and not restored by Landlord.

          (E) Rights to Insurance Proceeds. If this Lease is terminated as provided in this
Article following damage to or destruction of the Ski Facility and/or Tenant’s property, the
proceeds of all hazard insurance on the Ski Facility which is maintained by Tenant or Landlord
pursuant to the Article captioned “Insurance, Indemnity, Waiver of Subrogation,” etc. shall belong
to Landlord, except insurance proceeds in respect of Tenant’s Property, which shall belong to
Tenant.

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     15. Insurance, Indemnity, Waiver of Subrogation and Fire Protection.

          (A) Casualty Policy. During the term hereof, Tenant shall at its expense except as
provided below, keep the Leased Premises insured in the name of Landlord and Tenant (as their
interests may appear with each as named or an additional insured or loss payee as applicable to
provide each with the best position) against damage or destruction by fire and the perils commonly
covered under a special form policy in an aggregate amount equal to the full replacement cost
thereof (without deduction for physical depreciation), and shall have deductibles no greater than
Fifty Thousand and No/100 Dollars ($50,000) (with higher deductibles for wind and earthquake
coverage as the applicable insurer may require). Such policy also shall cover floods, earthquake
and other similar hazards as may be customary for comparable properties in the area, and such other
“additional coverage” insurance as Landlord or any holder of a Mortgage, on the Leased Premises may
reasonably require, which at the time is usual and commonly obtained in connection with properties
similar in type of building size and use to the Ski Facility and located in the geographic area
where the Leased Premises are located. Tenant shall be responsible for determining that the amount
of property damage coverage insurance maintained complies with the requirements of this Lease. The
proceeds of such insurance in case of loss or damage shall be held in trust and applied on account
of the obligation of Tenant to repair and/or rebuild the Leased Premises pursuant to the Article
captioned “Damage Clause” to the extent that such proceeds are required for such purpose. The
insurance required to be carried by Tenant under this paragraph and paragraph (C) of this Article
(i) may be covered under a so-called “blanket” policy covering other operations of Tenant and
Affiliates, so long as the amount of coverage available under said “blanket” policy with respect to
the Leased Premises, or Tenant’s liability under this Lease, at all times meets the requirements
set forth in this Lease, and (ii) shall be evidenced by a certificate of insurance (such insurance
certificate with respect to property insurance shall be issued on ACORD 27 or equivalent) from
Tenant’s insurer, authorized agent or broker. Upon request, Tenant shall name the holder of any
Mortgage on the Leased Premises pursuant to a standard mortgagee, additional insured or loss payee
clause with as such holder shall elect with respect to the foregoing property insurance, provided
such holder agrees with Tenant in writing to disburse such insurance proceeds to Tenant for, and
periodically during the course of, repair and restoration of the Ski Facility as set forth in this
Lease. Any such insurance proceeds not required for the repair and restoration of the Leased
Premises shall be divided equally between Tenant and Landlord.

          (B) DIC Policy. If required by Landlord’s lender or the holder of a Mortgage during
the term hereof, Tenant shall, at its expense, keep the Leased Premises insured in the name of
Landlord and Tenant (as their interests may appear with each as named or an additional insured or
loss payee as applicable to provide each with the best position) against all risks of direct
physical loss or damage, except those risks excluded under Tenant’s insurance required under
paragraph (A) of this Article, under a so-called difference in conditions policy (“DIC
Policy”) in the amount of 100% of the replacement cost thereof, which shall include those
endorsements set forth on Exhibit D. The proceeds of such insurance in case of loss or damage shall
be held in trust and applied on account of the obligation of Tenant to repair and/or rebuild the
Leased Premises pursuant to the Article captioned “Damage Clause” to the extent that such proceeds
are required for such purpose. The insurance required to be carried by Tenant under this paragraph
shall be evidenced by a certificate of insurance (such insurance certificate with respect to
property insurance shall be issued on ACORD 27) from Tenant’s insurer, authorized

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agent or broker. Upon request, Landlord may name the holder of any Mortgage on the Leased Premises
pursuant to a standard mortgagee clause, additional insured or loss payee as such holder shall
elect with respect to the foregoing property insurance provided such holder agrees in writing to
disburse such insurance proceeds to Tenant for, and periodically during the course of, repair and
restoration of the Leased Premises as set forth in this Lease. Any such insurance related proceeds
not required for the repair and restoration of the Ski Facility shall belong to Landlord.

          (C) Liability Insurance; Tenant Negligence. Tenant will, subject to the provisions
of paragraph (F) of this Article, and subject to the provisions of paragraph (E) of the Article
captioned “Governmental Compliance,” indemnify and save harmless Landlord, its trustees, directors,
officers, agents and servants, from and against any and all claims, actions, liability and expense:
(i) arising from or out of any occurrence in, upon or at the Ski Facility, the Leased Premises, or
the occupancy or use by Tenant of the Ski Facility, the Leased Premises or any part thereof, except
to the extent the same is caused by the willful or grossly negligent act or omission of Landlord;
or (ii) occasioned wholly or in part by any negligent act or omission of Tenant, its agents,
employees, servants, subtenants, lessees or concessionaires. If any action or proceeding is brought
against Landlord, its officers, agents or servants by reason of any of the aforementioned causes,
Tenant, upon receiving notice thereof from Landlord, agrees to defend such action or proceeding by
adequate counsel at its own expense. Tenant agrees to insure the foregoing obligation by
contractual endorsement under a commercial general public liability policy (including personal
injury and property damage) to be maintained by Tenant with combined single limits of not less than
$5,000,000.00 aggregate per location. Tenant shall cause Landlord to be named as an additional
insured on all policies of liability insurance maintained by Tenant (including excess liability and
umbrella policies) with respect to the Leased Premises. The insurance required to be carried by
Tenant under this paragraph shall be evidenced by a certificate of insurance from Tenant’s insurer,
authorized agent or broker.

          (D) [Intentionally Deleted]

          (E) Rental Loss/Business Interruption Insurance. During the term hereof, Tenant
shall, at its expense, keep and maintain for the benefit of Landlord, coverage for the loss of Rent
payable hereunder for a period of up to the next succeeding eighteen (18) months.

          (F) Workers’ Compensation Insurance. Tenant shall maintain, with respect to its
operations and all of its employees at the Leased Premises, a policy or policies of workers’
compensation insurance, in accordance with and in the amounts required by applicable Laws
protecting Tenant from and against any and all claims from any persons employed directly or
indirectly on or about the Leased premises for injury or death of such persons.

          (G) Release: Waiver of Subrogation. Anything in this Lease to the contrary
notwithstanding, it is agreed that Tenant hereby releases Landlord from any liability which the
Landlord would, but for this paragraph, have had to Tenant during the term of this Lease resulting
from any accident or occurrence or casualty (i) which is covered by Tenant’s required insurance
hereunder, or (ii) which is or would be covered by a fire or “all risk” property insurance policy
in use in the state in which the Leased Premises is located, whether or not Tenant is actually
maintaining such an insurance policy, or (iii) which is covered by any other

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casualty or property damage insurance being carried by Tenant at the time of such occurrence, which
casualty may have resulted in whole or in part from any act or neglect of Landlord, its officers,
agents or employees; PROVIDED, HOWEVER, the releases hereinabove set forth shall become inoperative
and null and void if Tenant wishes to place such insurance with an insurance company which (y)
takes the position that the existence of such release vitiates or would substantially adversely
affect any policy so insuring the Releasing Party and notice thereof is given to Landlord, or (z)
requires the payment of a higher premium by reason of the existence of such release, unless in the
latter case Landlord within 20 days after notice thereof from the Tenant pays such increase in
premium. Notwithstanding anything to the contrary herein, Tenant agrees and acknowledges that
Landlord shall have no responsibility or liability for any loss, damage or injury to Tenant’s
Property which is located in, on or about the Leased Premises at any time and from time to time,
regardless of the cause of such loss, damage or injury, and that all of Tenant’s Property is
located in, on or about the Leased Premises at Tenant’s sole risk. Tenant hereby releases Landlord
from any and all claims with respect to loss, damage or injury to Tenant’s Property located in, on
or about the Leased Premises, regardless of the cause of such loss, damage or injury.

          (H) General. All policies of insurance required pursuant to this Article shall be
issued by companies approved by Landlord, and licensed to do business in the state where the Leased
Premises is located. Furthermore, Tenant shall deliver to Landlord a copy of all insurance
contracts that is required any such insurance company shall have (i) a claims paying ability rating
of “AA” or better by Standard & Poor’s (other than the issuer of any policy for earthquake
insurance, which issuer shall have a claims paying ability rating of “A” or better by Standard &
Poor’s; (ii) shall include effective waivers by the insurer of all claims for insurance premiums
against all loss payees, additional loss payee, additional insured or named insured; (iii) shall
contain such provisions as Landlord deems reasonably necessary or desirable to protect its interest
including any endorsements providing that Tenant, Landlord nor any other party shall be a
co-insurer under said policies and that no modification, reduction, cancellation or termination in
amount of, or material change (other than an increase) in, coverage of any of the policies required
hereby shall be effective until at least thirty (30) days after receipt by each named insured,
additional insured and loss payee of written notice thereof or ten (10) days after receipt of such
notice with respect to nonpayment of premium; (iv) shall permit Landlord to pay the premiums and
continue any insurance upon failure of Tenant to pay premiums when due; and (v) shall provide that
the insurance shall not be impaired or invalidated by virtue of (A) any act, failure to act,
negligence of, or violation of declarations, warranties or conditions contained in such policy by
Tenant, Landlord or any other named insured, additional insured or loss payee, except for the
willful misconduct of Landlord knowingly in violation of the conditions of such policy or (B) the
occupation, use, operation or maintenance of the Leased Premises for purposes more hazardous than
permitted by the terms of the policy.

     16. Indemnification Generally. Except as provided in Paragraphs 12(E) hereof, Tenant
agrees to indemnify and save harmless, Landlord, its trustee, directors, officers, agents and
servants from and against all liabilities, costs and expenses (including reasonable attorney’s fees
and expenses) and all actual or consequential damages imposed upon or asserted against the
Landlord, as owner of the Leased Premises, including, without limitation, any liabilities, costs
and expenses and actual or consequential damages imposed upon or asserted against Landlord, on
account of (i) any use, misuse, non-use, condition, maintenance or repair by Tenant of the

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Leased Premises, (ii) any impositions which are the obligation of Tenant to pay pursuant to the
applicable provisions of this Lease, (iii) any failure on the part of Tenant to perform or comply
with any other of the terms of this Lease or any sublease, (iv) any liability Landlord may incur or
suffer as a result of any environmental laws or the ADA affecting the Leased Premises, and (vi)
accident, injury to or death of any person or damage to property on or about the Leased Premises.
If at any time any claims, costs, demands, losses or liabilities are asserted against Landlord by
reason of any of the matters as to which Tenant indemnifies Landlord hereunder, Tenant will, upon
notice from Landlord, defend any such claims, costs, demands, losses or liabilities at Tenant’s
sole cost and expense by counsel selected by Tenant and reasonably acceptable to Landlord.

     17. Tenant to Pay Taxes. Tenant shall pay all Taxes assessed or charged against
the Leased Premises or any part thereof as provided in the Rent and Expense Rider.

     18. Alterations and Tenant’s Liens.

          (A) Title to Tenant’s Alterations. Subject to the provisions of the Article captioned
“Fixtures,” any alterations, changes, improvements and additions made by Tenant shall immediately
become the property of Landlord and shall be considered a part of the Ski Facility, but Landlord
shall not be obligated to compensate or reimburse Tenant or any other person or entity for any such
alterations, changes, improvements or additions made by Tenant, and Tenant hereby waives all right
to any such compensation or reimbursement..

          (B) No Tenant Liens. Tenant shall not permit any mechanic’s, materialman’s or other
similar lien to be foreclosed against the Leased Premises by reason of work, labor, services or
materials performed by or furnished to Tenant or anyone holding any part of the Leased Premises
under Tenant. If any such lien shall at any time be filed, Tenant may contest the same in good
faith but Tenant shall, prior to foreclosure thereof, cause such lien to be released of record by
payment, bond, order of a court of competent jurisdiction or otherwise. Nothing contained in this
Lease shall be construed as a consent on the part of Landlord to subject Landlord’s estate in the
Leased Premises to any lien or liability under the lien laws of the state in which the Leased
Premises are located. Notwithstanding the foregoing, if any mechanics’, materialmen’s or other
similar lien is filed against the Leased Premises, and the amount of such lien claim exceeds
$100,000, then Tenant shall, within ten (10) days after the filing thereof, provide to Landlord a
bond in the amount of 110% of the amount of such lien claim, or other security satisfactory to
Landlord, protecting Landlord from loss or liability by reason of such lien. Tenant hereby
covenants and agrees to indemnify and hold harmless Landlord from and against any and all claims,
costs, demands, losses or liabilities (including attorneys’ fees) which Landlord may suffer or
incur by reason of any such mechanics’, materialmen’s or other similar lien.

          (C) Landlord Elective Improvements. During the term of this Lease, Landlord shall not
be required to build or rebuild any improvements to the Leased Premises or the Ski Facility, or to
make any repairs, replacements, alterations, restorations or renewals thereto. In the event that
Landlord should, in its sole discretion elect to make capital improvements to the Leased Premises,
it may only do so with Tenant’s consent, which may be given or withheld in Tenant’s sole
discretion, and it is understood and agreed that Landlord will

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generally condition any such election on an increase in the Annual Fixed Rent to reflect such
expenditures.

     19. Tenant’s Signs.

          (A) Location and Type. Tenant shall have the right to erect and maintain signs in
accordance with the provisions of this Article and subject to any applicable provisions of any
applicable Laws.

          (B) Design. The design of all signs presently located on the Leased Premises is hereby
approved by Landlord with the design of all future signs which Tenant elects to construct pursuant
to paragraph (A) of this Article (such present and future signs referred to as “Tenant’s
Signs”) to be subject to Landlord’s approval, which Landlord agrees not to unreasonably
withhold or delay so long as Tenant’s Signs are consistent with Tenant’s standard signage and do
not otherwise violate applicable Laws. Tenant’s Signs shall advertise Tenant’s business in the Ski
Facility and shall be constructed and maintained in good repair at Tenant’s expense. Tenant shall
pay the cost of electricity consumed in illuminating Tenant’s Signs.

     20. Condemnation.

          (A) In General. If any material part of the Leased Premises (meaning any part of the
Ski Facility) shall be taken in any proceeding by any Governmental Authority by condemnation or
otherwise, or be acquired for public or quasi-public purposes, or be conveyed under threat of such
taking or acquiring (which Landlord shall not do without Tenant’s prior written consent), and
Tenant reasonably determines that the remaining portion will not permit Tenant to operate its
business on the Leased Premises, Tenant shall have the option of terminating this Lease by notice
to Landlord of its election to do so given on or before the date which is thirty (30) days after
Tenant shall have been deprived of possession of the condemned property, and upon the giving of
such notice, this Lease shall automatically terminate and the Annual Fixed Rent and other charges
hereunder shall be adjusted as of the date of such notice. In the event a material part of the
Leased Premises (meaning any part of the Ski Facility) is so taken and Tenant elects not to
terminate this Lease, then Tenant shall, to the extent and making use of the condemnation award,
restore the Ski Facility to a complete unit as similar as reasonably possible in design, character
and quality to the building which existed before such taking. In the event the Ski Facility is
partially taken and this Lease is not terminated, there shall be no reduction or adjustment in the
Annual Fixed Rent and other charges thereafter payable hereunder. Any restoration work to be
performed pursuant to this paragraph shall be completed in accordance with plans and specifications
which shall have been approved by Landlord and Tenant, such approvals not to be unreasonably
withheld. In any such proceeding whereby all or part of the Leased Premises is taken, and Tenant
elects to terminate this Lease, each party shall be free to make claim against the condemning
authority for the amount of the actual provable damage done to each of them by such proceeding. If
the condemning authority shall refuse to permit separate claims to be made, then Landlord shall
prosecute with counsel reasonably satisfactory to Tenant the claims of both Landlord and Tenant,
and the proceeds of the award, after payment of Landlord’s reasonable costs incurred, shall be
divided between Landlord and Tenant in a fair and equitable manner; provided, however, in the event
of a condemnation which results in Tenant’s election to terminate this Lease Tenant shall be
entitled to its portion of the

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condemnation award only so long as the amount of the award paid to the Landlord is equal to the net
book value of the property taken, as reflected on the Landlord’s financial statements on the date
of the condemnation.

          (B) Temporary Taking Awards. If by reason of a taking Tenant shall be temporarily
deprived in whole or in part of the use of the Ski Facility or any part thereof, the entire award
made as compensation therefor shall belong to Tenant, and there shall be no abatement of the Annual
Fixed Rent payable hereunder.

          (C) No Taking by Landlord Action. Landlord shall not initiate or take any action
seeking a public or private taking of the Ski Facility or of any part of the Leased Premises or any
applicable Leased Premises.

     21. Restrictive Agreements. Landlord hereby agrees with Tenant with respect to the
Restrictive Agreements as follows:

          (A) Landlord will not approve or agree to any amendment of the Restrictive Agreements which
materially derogates the rights granted to Landlord thereunder without Tenant’s prior consent,
which shall not be unreasonably withheld.

          (B) Tenant agrees during the Term of this Lease to comply with and promptly perform each and
all of the terms and provisions of all Restrictive Agreements insofar as they relate to the Ski
Facility and the Leased Premises. Without limiting the generality of the foregoing, Tenant agrees
to pay any assessments, costs, common area maintenance and operating charges, lighting charges, all
common area cost contributions, and any and all other amounts that Landlord or the owner of the
Leased Premises would otherwise be obligated to pay under the Restrictive Agreements.

          (C) Landlord agrees to fully cooperate with Tenant in the exercise of any rights or remedies
pursuant to such Restrictive Agreements the exercise of which Tenant believes is necessary or
prudent with respect to the Leased Premises. Tenant hereby covenants and agrees to indemnify and
hold harmless Landlord from and against any and all claims, costs, demands, losses or liabilities
(including attorneys’ fees) which Landlord may suffer or incur by reason of any failure by Tenant
to pay and perform all of the terms of, or any violation of or noncompliance with any of the
covenants and agreements contained in, the Restrictive Agreements, or any of them, regardless of
whether such provisions are binding upon the Leased Premises or the holder of the tenant’s interest
in this Lease. If at any time any claims, costs, demands, losses or liabilities are asserted
against Landlord by reason of any failure by Tenant to pay and perform all of the terms of, or any
violation of or noncompliance with any of the covenants and agreements contained in, the
Restrictive Agreements, regardless of whether such provisions are binding upon the holder of the
tenant’s interest in this Lease or the Leased Premises, Tenant will, upon notice from Landlord,
defend any such claims, costs, demands, losses or liabilities at Tenant’s sole cost and expense by
counsel reasonably acceptable to Landlord. Landlord will promptly provide to Tenant a copy of any
notice received by Landlord in connection with any Restrictive Agreement.

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     22. Tenant’s Covenant to Operate.

          (A) In General. So long as Landlord shall not be in default under this Lease, Tenant
will, except when prevented from so doing by Force Majeure or by other causes beyond its reasonable
control (including the unavailability of film) and subject to the provisions of the Articles
captioned “Subletting and Assigning,” “Damage Clause,” and “Condemnation” during the Term of this
Lease, operate or cause to be operated a ski resort in the Ski Facility (such covenant being herein
called “Tenant’s Operating Covenant”).

          (B) Tenant’s Right to Control Operations. Nothing contained in this Lease or in rules
or regulations (if any) promulgated by Landlord shall be deemed in any way to regulate the manner
of operation by Tenant of its business in the Ski Facility and/or the hours and/or days of such
operation, provided that Tenant agrees that it will operate its business in the Ski Facility during
at least the same general hours and days of operation as other ski resort operators operating other
similar facilities in the Bellefontaine, Ohio vicinity.

     23. Estoppel Certificate; Attornment and Priority of Lease; Subordination.

          (A) Estoppel Certificate. Tenant agrees, within ten (10) days after request by
Landlord, to execute, acknowledge and deliver to and in favor of the proposed holder of any
Mortgage or purchaser of the Leased Premises, an estoppel certificate in such form as Landlord may
reasonably approve, but stating no less than: (i) whether this Lease is in full force and effect;
(ii) whether this Lease has been modified or amended and, if so, identifying and describing any
such modification or amendment; (iii) the date to which rent and any other charges have been paid;
and (iv) whether Tenant knows of any default on the part of Landlord or has any claim against
Landlord and, if so, specifying the nature of such default or claim. Notwithstanding the foregoing,
the Parties agree that it shall not be reasonable for Landlord to require an estoppel certificate
that modifies the terms of this Lease.

          (B) Attornment by Tenant. Tenant shall, in the event any proceedings are brought for
the foreclosure of, or in the event of the exercise of the power of sale under, any Mortgage prior
in lien to this Lease made by Landlord, attorn to the purchaser upon any such foreclosure or sale
and recognize such purchaser as Landlord under this Lease, provided such purchaser assumes
Landlord’s obligations under this Lease, in a written agreement in recordable form and with
substance reasonably acceptable to Tenant, containing a covenant binding upon such purchaser to the
effect that as long as Tenant shall not be in default under this Lease, this Lease shall not be
terminated or modified in any respect whatsoever, nor shall the rights of Tenant hereunder or its
occupancy of the Leased Premises be affected in any way by reason of such Mortgage or any
foreclosure action or other proceeding that may be instituted in connection therewith, and that,
except to the extent that the holder of such Mortgage is required to do so to effectively foreclose
such Mortgage, Tenant shall not be named as a defendant in any such foreclosure action or other
proceeding.

          (C) Subordination/Non-Disturbance. Upon request of the holder of any Mortgage, Tenant
will subordinate its rights under this Lease to the lien thereof and to all advances made or
hereafter to be made upon the security thereof, and Tenant shall execute, acknowledge and deliver
an instrument effecting such subordination; PROVIDED, HOWEVER,

20

 

Tenant’s obligation to (a) subordinate its rights under this Lease to the lien of any holder of a
Mortgage and (b) execute and deliver such instrument shall be conditioned upon Landlord obtaining
and delivering to Tenant, in recordable form, from the holder of any Mortgage to which this Lease
is to become subordinate a non-disturbance agreement reasonably acceptable to Tenant containing a
covenant binding upon the holder thereof to the effect that as long as Tenant shall not be in
default under this Lease, this Lease shall not be terminated or modified in any respect whatsoever,
nor shall the rights of Tenant hereunder or its occupancy of the Leased Premises be affected in any
way by reason of such Mortgage or any foreclosure action or other proceeding that may be instituted
in connection therewith, and that, except to the extent that the holder of such Mortgage is
required to do so to effectively foreclose such Mortgage, Tenant shall not be named as a defendant
in any such foreclosure action or other proceeding.

          (D) Landlord and Tenant, upon request of any party in interest, shall execute promptly such
commercially reasonable instruments or certificates to carry out the provisions of this Article;
provided, however, neither party shall be required to execute any such instruments or certificates
that would in any way modify the terms and provisions of this Lease.

     24. Default Clause and Self-Help.

          (A) Tenant Default; Cure Rights. If (i) Tenant neglects or fails to pay any Annual
Fixed Rent, Annual Percentage Rent or other charge hereunder within 10 days after notice of
default, or (ii) Tenant neglects or fails to perform or observe any of the other covenants, terms,
provisions or conditions on its part to be performed or observed under this Lease, within thirty
(30) days after notice of default (or if more than thirty (30) days shall be reasonably required
because of the nature of the default, if Tenant shall fail to proceed diligently to cure such
default after such notice), or (iii) Tenant neglects or fails to perform or observe any obligations
pursuant to Tenant’s Operating Covenant hereunder, or (iv) upon the occurrence of any default under
any Related Agreement or Guaranty of a Related Agreement that remains uncured after the expiration
of the applicable cure period thereunder or (v) Tenant (a) admits in writing its inability to pay
its debts generally as they become due, (b) commences any case, proceeding or other action seeking
to have an order for relief entered on its behalf as debtor or to adjudicate it a bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, liquidation, dissolution or
composition of it or its debts under any federal, state or local law relating to bankruptcy,
insolvency, reorganization or relief of debtors, (c) makes an assignment for the benefit of its
creditors, (d) is generally unable to pay its debts as they mature, (e) seeks or consents to the
appointment of a receiver of itself or of the whole or any substantial part of its property, or (f)
files a petition or answer seeking reorganization or arrangement under an order or decree
appointing, without the consent of Tenant, a receiver of Tenant of the whole or substantially all
of its property, and such case, proceeding or other action is not dismissed within ninety (90) days
after the commencement thereof; or (vi) the estate or interest of Tenant in the Leased Premises or
any part thereof is levied upon or attached in any proceeding and the same is not vacated or
discharged within the later of ninety (90) days after commencement thereof or thirty (30) days
after receipt by Tenant of notice thereof from Landlord (unless Tenant is contesting such lien or
attachment in accordance with this Lease), then an event of default shall exist hereunder and
Landlord may immediately or at any time thereafter, as permitted by law, give Tenant written notice
of Landlord’s termination of this Lease, and, upon such notice, Tenant’s rights to possession of
the Leased Premises shall cease and this Lease shall thereupon

21

 

be terminated, and Landlord may re-enter and take possession of the Leased Premises as its own
property; or Landlord may remain out of possession of the Leased Premises and treat the term of the
Lease as subsisting and in full force and effect, in which event Landlord shall have all rights and
remedies available at law, in equity or hereunder; and as an alternative remedy Landlord may, at
Landlord’s election, without terminating the then current term, or this Lease, re-enter the Leased
Premises or take possession thereof pursuant to legal proceedings or pursuant to any notice
provided for by law, and having elected to re-enter or take possession of the Leased Premises
without terminating the term, or this Lease, Landlord shall use reasonable diligence as Tenant’s
agent to relet the Leased Premises, or parts thereof, for such term (which may be greater or less
than the remaining balance of the then current term) or terms and at such rental and upon such
other terms and conditions (which may include concessions or free rent) as Landlord may reasonably
deem advisable, with the right to make alterations and repairs to the Leased Premises, and no such
re-entry or taking of possession of the Leased Premises by Landlord shall be construed as an
election on Landlord’s part to terminate this Lease, and no such re-entry or taking of possession
by Landlord shall relieve Tenant of its obligation to pay Rent (at the time or times provided
herein), or of any of its other obligations under this Lease, all of which shall survive such
re-entry or taking of possession, and Tenant shall continue to pay Rent provided for in this Lease
until the end of the term and whether or not the Leased Premises shall have been relet, less the
net proceeds, if any, of any reletting of the Leased Premises after deducting all of Landlord’s
expenses in or in connection with such reletting, including without limitation all repossession
costs, brokerage commissions, legal expenses, expenses of employees, alterations costs and expenses
of preparation for reletting. If Landlord elects to terminate this Lease, then Landlord may
re-lease the Leased Premises for such price and on such terms as may be immediately obtainable, and
Tenant will be and remain liable, not only for all Rent due and other obligations incurred up to
the date on which the termination becomes effective, for all holdover damages that accrue under the
holdover section of this Lease until Tenant vacates or is removed from the Leased Premises, but
also for stipulated or liquidated damages for its nonperformance equal to the sum of (i) all
expenses that Landlord may incur in re-entering and re-possessing the Leased Premises, putting the
Leased Premises in proper repair and curing any default by Tenant, and removing Tenant’s
improvements, if Landlord has elected to require such removal, making any reasonable non-structural
modifications that may be required for any new tenants, and reletting the Leased Premises,
including attorneys’ fees and disbursements, sheriff’s fees and brokerage fees in doing so, plus
(ii) twenty-four (24) months of the Annual Fixed Rent provided in this Lease. Having elected either
to remain out of possession and treating this Lease as remaining in full force and effect or to
re-enter or take possession of Leased Premises without terminating the term, or this Lease,
Landlord may by notice to Tenant given at any time thereafter while Tenant is in default in the
payment of Rent or in the performance of any other obligation under this Lease, elect to terminate
this Lease and, upon such notice, this Lease shall thereupon be terminated. If in accordance with
any of the foregoing provisions of this Article 25 Landlord shall have the right to elect to
re-enter and take possession of the Leased Premises, Landlord may enter and expel Tenant and those
claiming through or under Tenant and remove the effects of both or either (forcibly if necessary)
without being guilty of any manner of trespass and without prejudice to any remedies for arrears of
rent or preceding breach of covenant. Pursuit of any of the foregoing remedies shall not preclude
pursuit of any of the other remedies herein provided or any other remedies provided by law, nor
shall pursuit of any remedy herein provided constitute a forfeiture or waiver of any rent due to
Landlord hereunder or of any damage accruing to

22

 

Landlord by reason of the violation of any of the terms, provisions and covenants herein contained.
Forbearance by Landlord to enforce one or more of the remedies herein provided upon the occurrence
of an Tenant event of default shall not be deemed or construed to constitute a waiver of such
default.

          Following an event of default, all amounts due from Tenant to Landlord pursuant to this Lease
shall bear interest at the Default Rate.

          (B) Landlord Default Cure Rights. If Landlord neglects or fails to perform or observe
any of the covenants, terms, provisions or conditions on its part to be performed or observed under
this Lease, or within 30 days after notice of default (or if more than 30 days shall be reasonably
required because of the nature of the default, if Landlord shall fail to proceed diligently to cure
such default after such notice), then Tenant may immediately or at any time thereafter, in addition
to any other rights and remedies as may otherwise be provided in this Lease for a Landlord default,
pursue all rights and remedies it may have at law and equity generally.

          (C) Self Help. If either party (the “Defaulting Party”) fails to perform any
agreement or obligation on its part to be performed under this Lease, the other party (the
“Curing Party”) shall have the right (i) if no emergency exists, to perform the same after
giving 30 days’ notice to the Defaulting Party, and (ii) in any emergency situation to perform the
same immediately without notice or delay. For the purpose of rectifying a default of the Defaulting
Party as aforesaid, the Curing Party shall have the right to enter the Leased Premises. The
Defaulting Party shall on demand reimburse the Curing Party for the costs and expenses incurred by
the Curing Party in rectifying defaults as aforesaid, including reasonable attorneys’ fees,
together with interest thereon at the Default Rate, but nothing herein shall be deemed to permit
either party to set off any costs of cure or other amounts against the amounts owing to the other
party hereunder.. Any act or thing done by the Curing Party pursuant to this paragraph shall not
constitute a waiver of any such default by the Curing Party or a waiver of any covenant, term or
condition herein contained or the performance thereof.

     25. Access to Premises.

          Tenant shall permit Landlord and its authorized representatives to enter the Ski Facility at
all reasonable times (upon 48 hours prior notice, except in the event of an emergency, in which no
prior notice is required prior to entry) for the purposes of (i) serving or posting or keeping
posted thereon notices required by Law, (ii) conducting periodic inspections, (iii) performing any
work thereon required or permitted to be performed by Landlord pursuant to this Lease, and (iv)
showing the Leased Premises to prospective purchasers or lenders.

     26. Force Majeure.

          If either party shall be delayed or hindered in or prevented from the performance of any act
required under this Lease by reason of strikes, lockouts, labor troubles, inability to procure
materials, failure of power, restrictive Laws (except as otherwise specifically provided herein),
riots, insurrection, terrorist acts, war or other reason beyond the reasonable control of and not
the fault of the party delayed in performing the work or doing the acts required under the

23

 

terms of this Lease (collectively, “Force Majeure”), then performance of such act shall be
excused for the period of the delay, and the period for the performance of any such act shall be
extended for a period equivalent to the period of such delay. The provisions of this Article shall
not (i) operate to excuse Tenant from prompt payment of rent or any other payment required by
Tenant under the terms of this Lease, or (ii) be applicable to delays resulting from the inability
of a party to obtain financing or to proceed with its obligations under this Lease because of a
lack of funds.

     27. Remedies Cumulative; Legal Expenses; Time of the Essence.

          (A) The various rights and remedies given to or reserved to Landlord and Tenant by this Lease
or allowed by law shall be cumulative, irrespective of whether so expressly stated.

          (B) In case suit shall be brought because of the breach of any agreement or obligation
contained in this Lease on the part of Tenant or Landlord to be kept or performed, and a breach
shall be established, the prevailing party shall be entitled to recover all expenses incurred in
connection with such suit, including reasonable attorneys’ fees.

          (C) Time is of the essence of this Lease.

     28. Lease Not to be Recorded.

          Upon request of Landlord or Tenant, the parties hereto shall promptly execute and deliver a
memorandum of this Lease for recording purposes in recordable form. If Tenant elects to record such
memorandum, Landlord shall promptly cause the same to be recorded, at Tenant’s expense. Neither
party shall record this Lease without the consent of the other party.

     29. Notices.

          All notices, consents, requests, approvals and authorizations (collectively,
“Notices”) required or permitted hereunder shall only be effective if in writing. All
Notices (except Notices of default, which may only be sent pursuant to the methods described in (A)
and (B) below) shall be sent (A) by registered or certified mail (return receipt requested),
postage prepaid, or (B) by Federal Express, U.S. Post Office Express Mail, Airborne or similar
nationally recognized overnight courier which delivers only upon signed receipt of the addressee,
or (C) by facsimile transmission and addressed as follows or at such other address, and to the
attention of such other person, as the parties shall give notice as herein provided:

	 	 	 

	If intended for Landlord:

	 	EPT MAD RIVER, INC.
	 

	 	30 West Pershing, Suite 201
	 

	 	Kansas City, Missouri 64108
	 

	 	Phone: (816) 472-1700
	 

	 	Facsimile (816) 472-5794
	 

	 	Attention: David M. Brain, CEO

24

 

	 	 	 

	With a copy to:

	 	EPT MAD RIVER, INC.
	 

	 	30 West Pershing, Suite 201
	 

	 	Kansas City, Missouri 64108
	 

	 	Phone: (816) 472-1700
	 

	 	Facsimile (816) 472-5794
	 

	 	Attention: Gregory K. Silvers, General Counsel
	 
	 	 
	and a copy to:

	 	Stinson Morrison Hecker LLP
	 

	 	1201 Walnut, Suite 2900
	 

	 	Kansas City, Missouri 64106
	 

	 	Phone: (816) 842-8600
	 

	 	Facsimile: (816) 691-3495
	 

	 	Attention: Timothy Laycock, Esq.
	 
	 	 
	If intended for Tenant:

	 	Mad River Mountain, Inc.
	 

	 	17409 Hidden Drive
	 

	 	Wildwood, Missouri 63025
	 
	 	 
	and a copy to:

	 	David L. Jones
	 

	 	Helfrey, Simon & Jones, P.C.
	 

	 	120 South Central Avenue, Suite 1500
	 

	 	St. Louis, Missouri 63105
	 

	 	Telephone: (314) 725-9100
	 

	 	Facsimile: (314) 725-5754

A notice, request and other communication shall be deemed to be duly received if delivered by a
nationally recognized overnight delivery service, when delivered to the address of the recipient,
if sent by mail, on the date of receipt by the recipient as shown on the return receipt card, or if
sent by facsimile, upon receipt by the sender of an acknowledgment or transmission report generated
by the machine from which the facsimile was sent indicating that the facsimile was sent it its
entirety to the recipient’s facsimile number; provided that if a notice, request or other
communication is served by hand or is received by facsimile on a day which is not a Business Day,
or after 5:00 P.M. on any Business Day at the addressee’s location, such notice or communication
shall be deemed to be duly received by the recipient at 9:00 a.m. on the first Business Day
thereafter. Rejection or other refusal to accept or the inability to delivery because of changed
address of which no Notice was given shall be deemed to be receipt of the Notice as of the date of
such rejection, refusal or inability to deliver.

     30. Waiver of Performance and Disputes. One or more waivers of any covenant, term or
condition of this Lease by either party shall not be construed as a waiver of a subsequent breach
of the same or any other covenant, term or condition, nor shall any delay or omission by either
party to seek a remedy for any breach of this Lease or to exercise a right accruing to such party
by reason of such breach be deemed a waiver by such party of its remedies or rights with respect to
such breach. The consent or approval by either party to or of any act by the other

25

 

party requiring such consent or approval shall not be deemed to waive or render unnecessary consent
to or approval of any similar act.

     31. Modification of Lease.

          The terms, covenants and conditions hereof may not be changed orally, but only by an
instrument in writing signed by the party against whom enforcement of the change, modification or
discharge is sought, or by such party’s agent.

     32. Captions and Lease Preparation.

          Captions throughout this instrument are for convenience and reference only and the words
contained therein shall in no way be deemed to explain, modify, amplify or aid in the
interpretation or construction of the provisions of this Lease.

     33. Lease Binding on Successors and Assigns, Etc.

          Except as herein otherwise expressly provided, all covenants, agreements, provisions and
conditions of this Lease shall be binding upon and inure to the benefit of the parties hereto and
their heirs, devisees, executors, administrators, successors in interest and assigns as well as
grantees of Landlord, and shall be deemed to run with the land. Without limiting the generality of
the foregoing, all rights of Tenant under this Lease may be granted by Tenant to any sublessee of
Tenant, subject to the terms of this Lease.

     34. Brokers.

          Landlord represents and warrants to Tenant that it has not incurred or caused to be incurred
any liability for real estate brokerage commissions or finder’s fees in connection with the
execution or consummation of this Lease for which Tenant may be liable. Tenant represents and
warrants to Landlord that it has not incurred or caused to be incurred any liability for real
estate brokerage commissions or finder’s fees in connection with the execution or consummation of
this Lease for which Landlord may be liable. Each of the parties agrees to indemnify and hold the
other harmless from and against any and all claims, liabilities or expense (including reasonable
attorneys’ fees) in connection with any breach of the foregoing representations and warranties.

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

26

 

and for the period from the beginning of the respective fiscal year to the end of such period,
and the related consolidated balance sheets as at the end of such period, setting forth in each
case in comparative form the corresponding consolidated figures for the corresponding periods in
the preceding fiscal year (except that, in the case of balance sheets, such comparison shall be to
the last day of the prior fiscal year), accompanied by a certificate of a financial officer of
Tenant and Guarantor, as applicable, which certificate shall state that such consolidated financial
statements fairly present the consolidated financial condition and results of operations of the
respective Tenant and Guarantor in accordance with generally accepted accounting principles,
consistently applied, as at the end of, and for, such period; (3) within 45 days after the end of
each interim quarterly fiscal period of each fiscal year of Tenant and Guarantor, unaudited
statements of income for such period and for the period from the beginning of the respective fiscal
year to the end of such period in each case in comparative form the corresponding figures for the
corresponding periods in the preceding fiscal year; (4) within 30 days after the end of each
calendar month, an income and expense statement detailing all sources of revenue, including but not
limited to ticket sales, concession sales and other revenues, and all expenses relating to the
Leased Premises, accompanied by a certificate of a financial officer of Tenant and Guarantor
stating that such items are true, correct, accurate and completely and fairly present the financial
condition and results of the operations of Tenant and Guarantor. Notwithstanding anything contained
in this section to the contrary, Landlord agrees that Maher & Company, P.C. shall be deemed for the
purposes of this section to be independent certified public accountants of recognized national
standing.

     36. Option to Buy Back the Leased Premises. Landlord hereby grants to Tenant, on and
subject to the terms and conditions hereinafter set forth, the right and option to buy back the
Leased Premises (the “Buyback Option”).

          (A) Provided that Tenant is not in default hereunder, and provided that this Lease is still in
full force and effect, Tenant may re-purchase Landlord’s right title and interest in the Leased
Premises at the expiration of each seven (7) year interval of the lease as follows: (i) upon the
expiration of the seventh (7th) Lease Year; (ii) upon the expiration of the fourteenth
(14th) Lease Year; or (iii) upon the expiration of the twenty-first (21st)
Lease Year.

          (B) If Tenant desires to purchase Landlord’s interest in the Leased Premises upon the
expiration of the seventh (7th) Lease Year, then Tenant shall give written notice
thereof to Landlord no later than the expiration of the sixth (6th) Lease Year.

          (C) If Tenant desires to purchase Landlord’s interest in the Leased Premises upon the
expiration of the fourteenth (14th) Lease Year, then Tenant shall give written notice
thereof to Landlord no later than the expiration of the thirteenth (13th) Lease Year.

          (D) If Tenant desires to purchase Landlord’s interest in the Leased Premises upon the
expiration of the twenty-first (21st) Lease Year, then Tenant shall give written notice
thereof to Landlord no later than the expiration of the twenty (20th) Lease Year (each
such written notice given prior to the expiration of the 6th, 13th, or
20th Lease Years being referred to herein as the “Repurchase Notice”)

27

 

          (E) If Tenant exercises the Buyback Option by delivering to Landlord the Repurchase Notice as
set forth above, then Landlord shall sell, and Tenant shall purchase, all of Landlord’s right,
title and interest in and to the Leased Premises for a purchase price (the “Repurchase Price”)
equal to the Repurchase Amount (hereinafter defined) less the Percentage Rent Credit (hereinafter
defined).

          (F) For the purposes herein, the “Repurchase Amount” shall mean an amount equal to the
following:

          (i)
If the Buyback Option is exercised at the expiration of the
7th  Lease Year, the
Repurchase Amount shall be equal to the sum of (x) $13,075,543.29 ($11,000,000 increased on
a compound annual basis of 2.5% for each of the first through and including the
7th Lease Years); plus (y) any Additional Advance Amounts increased on a compound
annual basis of 2.5% for the amount of time outstanding of said Additional Advance Amounts.

          (ii)
If the Buyback Option is exercised at the expiration of the
14th Lease Year, the
Repurchase Amount shall be equal to the sum of (x) $14,514,266.39 ($11,000,000 increased on
a compound annual basis of 2.0% for each of the first through and including the
14th Lease Years); plus (y) any Additional Advance Amounts increased on a
compound annual basis of 2.0% for the amount of time outstanding of said Additional Advance
Amounts.

          (iii) If the Buyback Option is exercised at the expiration of the 21st Lease
Year, the Repurchase Amount shall be equal to the sum of (x) $15,037,636.15 ($11,000,000
increased on a compound annual basis of 1.5% for each of the first through and including the
21st Lease Years); plus (y) any Additional Advance Amounts increased on a
compound annual basis of 1.5% for the amount of time outstanding of said Additional Advance
Amounts.

          (G) For the purposes herein, the “Percentage Rent Credit” shall be an amount equal to 50% of
all Percentage Rent payments paid to Landlord under the terms of this Lease; provided however, the
Percentage Rent Credit shall never reduce the amount to be paid to Landlord to an amount less than
Eleven Million Dollars ($11,000,000.00).

          (H) For the purposes herein, “Additional Advance Amounts” shall mean all sums expended by
Landlord or advanced to Tenant by Landlord for improvements or betterments to the Leased Premises.

          (I) If Tenant fails to deliver the Repurchase Notice in the manner set forth above, the
Buyback Option shall automatically expire and be of no further force or effect. In the event that
Tenant fails to exercise its Buyback Option then Tenant shall execute and deliver to Landlord such
documentation as Landlord may reasonably require to confirm the termination and extinguishment of
Tenant’s Buyback Option.

          (J) The purchase of Landlord’s interest in the Leased Premises shall be consummated through an
escrow established at a title insurance company selected by Landlord within thirty (30) days
following the expiration of the applicable Lease Year (i.e., the 7th, 14th, or

28

 

21st Lease Year) following the Lease Year in which the Repurchase Notice was given. The
Repurchase Price shall be payable in cash or other method acceptable to Landlord. Landlord’s
interest in the Leased Premises shall be conveyed in the form of a special warranty deed, subject
to all real estate taxes, installments of special assessments, easements, restrictions, covenants
and conditions of record. Any mortgage or liens, including potential mechanics liens or other liens
outstanding on the Leased Premises and caused by Landlord shall be discharged by Landlord at the
closing hereunder. The costs of closing and any title policy shall be paid by Tenant.

          (K) Notwithstanding anything contained in this Section to the contrary, Landlord’s obligation
to convey the Leased Premises to Tenant upon its exercise of the Buyback Option shall be contingent
upon the simultaneous exercise by any Affiliate of any and all buyback options granted in any
Related Agreement.

     37. Landlord’s Status as a REIT. The following clause shall be applicable if the
Landlord is a real estate investment trust: Tenant acknowledges that Landlord intends to elect to
be taxed as a real estate investment trust (“REIT”) under the Code. Tenant shall exercise
its reasonable best efforts not do anything which would materially adversely affect Landlord’s
status as a REIT. Tenant agrees to enter into reasonable modifications of this Lease which do not
materially adversely affect Tenant’s rights and liabilities if such modifications are required to
retain or clarify Landlord’s status as a REIT.

     38. Governing Law. This Lease shall be governed by and construed in accordance with
the laws of the State where the Leased Premises are located, but not including such State’s
conflict-of-laws rules.

     39. Certain Landlord Rights On Termination.

          (A) Advertisement of Leased Premises. Landlord or its agent shall have the right to
enter the Leased Premises at all reasonable times for the purpose of exhibiting such Leased
Premises to others and to place upon such Leased Premises during the period commencing 180 days
prior to the expiration of the Term “for sale” or “for rent” notices or signs of such number and in
such locations as Tenant shall reasonably approve.

          (B) Transfer of Permits, Etc. On Termination. Upon the expiration or earlier
termination of this Lease, Tenant shall, at the option of Landlord, transfer to and relinquish to
Landlord or Landlord’s nominee and reasonably cooperate with Landlord or Landlord’s nominee in
connection with the processing by Landlord of such nominee of all licenses, operating permits, and
other governmental authorization and all assignable service contracts, which may be necessary or
appropriate for the operation by Landlord or such nominee of the Leased Premises; provided that the
costs and expenses of any such transferring assignable contracts or the processing of any such
application shall be paid by Landlord or Landlord’s nominee.

     40. Estoppel. Landlord and Tenant each confirm and agree that (a) it has read and
understood all of the provisions of this Lease; (b) it is an experienced real estate investor and
is familiar with major sophisticated transactions such as that contemplated by this Lease; (c) it
has

29

 

negotiated with the other party at arm’s length with equal bargaining power; and (d) it has been
advised by competent legal counsel of its own choosing.

     41. Joint Preparation. This Lease (and all exhibits thereto) is deemed to have been
jointly prepared by the parties hereto, and any uncertainty or ambiguity existing herein, if any,
shall not be interpreted against any party, but shall be interpreted according to the application
of the rules of interpretation for arm’s-length agreements.

     42. Counterparts. This Lease 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 Lease by telecopier shall be as effective as delivery of a manually
executed counterpart of this Lease. In proving this Lease, it shall not be necessary to produce or
account for more than one such counterpart signed by the party against whom enforcement is sought.

     43. Attorneys’ Fees. If either party obtains a judgment against the other party by reason
of a breach of this Lease, a reasonable attorneys’ fee as fixed by the court shall be included in
such judgment.

     44. Limitation on Landlord’s Liability. Notwithstanding anything to the contrary in
this Lease: (A) Tenant will look solely to the interest of Landlord (or its successor as Landlord
hereunder) in the Leased Premises for the satisfaction of any judgment or other judicial process
requiring the payment of money as a result of (i) any negligence (including gross negligence) or
(ii) any breach of this Lease by Landlord or its successor (including any beneficial owners,
partners, shareholders, trustees or others affiliated or related to Landlord or such successor) and
Landlord shall have no personal liability hereunder of any kind, and (B) Tenant’s sole right and
remedy in any action concerning Landlord’s reasonableness (where the same is required hereunder)
will be an action for declaratory judgment and/or specific performance, and in no event shall
Tenant be entitled to claim or recover any damages in any such action.

     45. Severability. Invalidation of any provisions of this Lease or of the application
thereof to any party by judgment or court order shall in no way affect any of the other provisions
hereof or the application thereof to any other party and the same shall remain in full force and
effect.

     46. Waiver of Trial by Jury.

          TO THE FULLEST EXTENT PERMITTED BY LAW, TENANT AND LANDLORD HEREBY WAIVE TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER IN ANY
MATTERS ARISING OUT OF OR IN CONNECTION WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT,
TENANT’S USE AND OCCUPANCY OF THE SKI FACILITY OR THE ENTIRE PREMISES, AND ANY CLAIM OF INJURY OR
DAMAGE.

     47. Interest on Past Due Obligations; Late Charges. Except where another rate of
interest is specifically provided for in this Lease, any amount due from either party to the other

30

 

under this Lease which is not paid when due shall bear interest at the Default Rate from the date
such payment was due to and including the date of payment. In addition, Tenant acknowledges that
the late payment of any installment of Annual Fixed Rent, Percentage Rent or any other amounts due
Landlord will cause Landlord to incur certain costs and expenses, the exact amount of which are
extremely difficult or impractical to fix. These costs and expenses may include, without
limitation, administrative and collection costs and processing and accounting expenses. Therefore,
if any installment of Annual Fixed Rent, Percentage Rent or other amount due Landlord is not
received by Landlord from Tenant when due, Tenant shall immediately pay to Landlord a late charge
equal to the 4% of such delinquent amount. Landlord and Tenant agree that this late charge
represents a reasonable estimate of the costs and expenses Landlord will incur and is fair
compensation to Landlord for its loss suffered by reason of late payment by Tenant. Upon accrual,
all such late charges shall be deemed Additional Rent.

     48. Rental Adjustment. Landlord and Tenant acknowledge that the Leased Premises were
conveyed by Tenant to Landlord pursuant to that certain Agreement of Sale and Purchase dated
November 17, 2005 (the “Leased Premises Purchase Agreement”), and, as a condition to closing
thereunder, leased back to Tenant pursuant to this Lease. Concurrently with the Leased Premises
Purchase Agreement, EPT Crotched Mountain and SNH entered into that certain Agreement of Sale and
Purchase (the “Crotched Mountain Agreement”), pursuant to which EPT Crotched Mountain agreed, among
other things, as follows: (i) SNH would use its best efforts to obtain various consents from third
parties for an assignment of the ground lease therein described from SNH to EPT Crotched Mountain
(the “Required Consents”) and (ii) if SNH failed to obtain the Required Consents within 90 days
from the closing of the Mad River Mountain Agreement then (a) EPT Crotched Mountain would make a
loan to SNH in the amount of the purchase price as set forth in the Crotched Mountain Agreement and
(b) the rent payable by Tenant under this Lease would automatically be increased retroactively as
hereinafter set forth and described.

Landlord and Tenant hereby agree that in the event the Required Consents are not obtained as set
forth above, then effective retroactively as of the Commencement Date, “Annual Fixed Rent” shall be
equal to the following:

          (i) From the Commencement Date to the end of the 1st Lease Year, an amount,
per annum, equal to $1,017,500.00.

          (ii) During each subsequent Lease Year the Annual Fixed Rent shall increase by an
amount equal to the lesser of (a) 1.5% multiplied by the Annual Fixed 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.

     In the event the Required Consents are not obtained prior to the closing of the Crotched
Mountain Agreement, then the Annual Fixed Rent, as adjusted by this Section, shall apply
retroactively as of the Commencement Date, and shall be effective without further action on the
part of either Landlord or Tenant. Notwithstanding the preceding sentence, if the Required Consents
are not obtained prior to the closing of the Crotched Mountain Agreement, then, at the closing of
the Crotched Mountain Agreement, and upon Landlord’s request, then Tenant shall, at the closing of
the Leased Premises Purchase Agreement, execute and deliver to Landlord a

31

 

written certificate in form satisfactory to Landlord specifying that the Annual Fixed Rent has been
adjusted pursuant to the terms of this Section. Upon the rental adjustment as herein provided,
Tenant shall promptly pay to Landlord an amount equal to the difference between all Annual Fixed
Rent paid up until the Rental Adjustment Date and the amount of fixed rent payable from the
Commencement Date to the Rental Adjustment Date, as adjusted by this Section.

     IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be duly executed as of the
day and year first above written.

	 	 	 	 	 
	 	EPT MAD RIVER, INC.,

a Missouri corporation

 	 
	 	By:  	/s/ Gregory K. Silvers
 	 
	 	 	Gregory K. Silvers, Secretary 	 
	 	 	 	 
	 	 	“Landlord” 	 
	 
	 	MAD RIVER MOUNTAIN, INC.,

a Missouri corporation

 	 
	 	By:  	/s/ Stephen J. Mueller
 	 
	 	 	Stephen J. Mueller, Vice President 	 
	 	 	 	 
	 	 	“Tenant” 	 

32

 

RENT AND EXPENSE RIDER

Attached to and forming a part of Lease effective as of 
November 17, 2005 by and between

EPT MAD RIVER, INC. 
as Landlord,

and MAD RIVER MOUNTAIN, INC., as Tenant.

     1. Rent.

     A. Annual Fixed Rent; Escalation. Tenant shall pay landlord, during the term of this
Lease, the Annual Fixed Rent in the manner hereinafter provided. The Annual Fixed Rent for each
Lease Year shall be payable 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.

     B. Percentage Rent.

          (1) In addition to the Annual Fixed Rent, Tenant shall pay Landlord as percentage rent (the
“Annual Percentage Rent”) an amount for each Lease Year equal to the Percentage Rate
multiplied by the Gross Receipts for such Lease Year in excess of an amount (“Base Amount”)
equal to the quotient obtained by dividing the Annual Fixed Rent payable for such Lease Year by the
Percentage Rate. For purposes of example only, assume that the Annual Fixed Rent for the applicable
Lease Year is $990,000.00, and the Gross Sales for the applicable Lease Year is $9,000,000.00.
Under this example, the Annual Percentage Rent would be equal to the Percentage Rate (12%)
multiplied by $750,000 (which equals the amount by which the Gross Receipts for the applicable
Lease Year exceed the Annual Fixed Rent divided by the Percentage Rate), or $90,000.00. For the
purpose of computing the Annual Percentage Rent for the first Lease Year, the Gross Receipts for
and the Annual Fixed Rent payable for the partial calendar month, if any, preceding the first Lease
Year shall be included in the Annual Fixed Rent and Gross Receipts for the first Lease Year. Within
60 days following the end of each Lease Year, Tenant shall furnish Landlord with a statement,
verified by a corporate officer of Tenant, showing the amount of Gross Receipts for the preceding
Lease Year, which statement shall be accompanied by Tenant’s payment of Annual Percentage Rent, if
any, is due.

          (2) The term “Lease Year” as used in this Lease shall mean a period of 12 full
calendar months. The first Lease Year shall begin on the first day of the calendar month following
the Commencement Date, unless the term commences on the first day of a calendar month, in which
case the first Lease Year shall begin on Commencement Date. Each succeeding Lease Year shall
commence on the anniversary of the first Lease Year.

          (3) Landlord shall have the right, not more often than once each year, to audit Tenant’s
records of Gross Receipts, but only for the purpose of ascertaining the amount of the

33

 

Gross Receipts during the preceding Lease Year. Such audit shall be made on behalf of Landlord by a
certified public accountant to be selected by Landlord. If Landlord wishes to audit Tenant’s
records for any Lease Year, Landlord shall notify Tenant and proceed with such audit within 12
months after the end of the Lease Year in question. Should Landlord fail to exercise the right to
audit the records of Tenant within 12 months after the end of any Lease Year, then Landlord shall
have no further right to audit the records of Tenant for such Lease Year, and Tenant’s statement of
Gross Receipts for such Lease Year shall conclusively be deemed to be correct. Any such audit by
Landlord shall be at Landlord’s own expense, except as hereinafter provided. If any such audit
discloses that Tenant has understated the Gross Receipts for such Lease Year by more than 3% and
Landlord is entitled to any additional Annual Percentage Rent as a result of such understatement,
then Tenant shall promptly pay to Landlord the cost of such audit. Tenant shall, in any event, pay
Landlord the amount of any deficiency in Annual Percentage Rent. Any information obtained by
Landlord from such statements or inspections shall be kept confidential and shall not be disclosed
except as provided in subparagraph (14) of this paragraph (B).

          (4) The term “Gross Receipts” shall mean: (i) the entire amount of the price charged, whether
wholly or partially in cash or on credit, or otherwise, for all goods, wares, merchandise and
chattels of any kind sold, leased, licensed or delivered (specifically including without limitation
admission tickets and lift tickets), and all charges for services sold or performed in, at, upon or
from any part of or through the use of the Leased Premises or any part thereof by Tenant or any
other party, or by means of any mechanical or other vending device (other than pay telephones, and
those soft drink and other similar vending devices operated primarily for the convenience of
Tenant’s employees); and (ii) all gross income of Tenant and any other party from any operations
in, at, upon or from the Leased Premises which are neither included in nor excluded from Gross
Receipts by other provisions of this Lease, but without duplication.

          Gross Receipts shall not include, or if included, there shall be deducted (but only to the
extent they have been included), as the case may be, (i) the net amount of cash or credit refunds
upon Gross Receipts, where the merchandise sold or some part of it is returned by the purchaser to
and accepted by Tenant (but not exceeding in any instance the selling price of the item in
question); (ii) the amount of any sales tax, use tax or retail excise tax which is imposed by any
duly constituted governmental authority directly on sales and which is added to the selling price
(or absorbed therein) and is paid to the taxing authority by Tenant (but not any vendor of Tenant);
(iii) exchanges of merchandise between the Leased Premises and other ski resorts of Tenant or its
Affiliates to the extent the same are made solely for the convenient operation of Tenant’s business
and not for the purpose of depriving Landlord of the benefit of Gross Receipts; (iv) returns of
merchandise to shippers, suppliers or manufacturers; (v) the sale of Tenant’s Property; (vi)
discount sales to employees and agents of Tenant of merchandise not intended for resale; (vii) all
receipts or proceeds from borrowings; (viii) gift certificates or like vouchers, if not issued for
value, until the time they have been converted into a sale or redemption; (ix) income, revenues,
receipts or proceeds from Tenant’s investment of any funds in a deposit institution; and (x)
separately stated interest and service charges. In addition to the foregoing, during the time that
the Leased Premises are used for the purposes set forth in Paragraph 7(A) of the Lease, the
following shall be deducted form Gross Receipts to the extent otherwise included the calculation
thereof:

34

 

     (a) Credits or refunds made to customers.

     (b) (i) All federal, state, county and city sales taxes or other similar taxes, and
(ii) all occupational taxes, use taxes and other taxes which must be paid by Tenant or
collected by Tenant, by whatever name they are known or assessed, and regardless of whether
or not they are imposed under any existing or future orders, regulations, laws or
ordinances.

     (c) Agency commissions paid to independent third parties for selling tickets and
surcharges in excess of the standard ticket price for tickets purchased by use of credit
cards, but only to the extent such commissions or surcharges are actually remitted to
independent third parties.

     (d) Proceeds from the sale of Tenant’s Property.

          (5) Nothing set forth in this Lease shall be construed as giving Landlord any partnership or
other interest in Tenant’s business.

          (6) It is understood and agreed by Landlord that Tenant has made no representation of any kind
whatsoever as to the minimum or maximum amount of Gross Receipts which may or shall be made in the
Leased Premises during any Lease Year of the term of this Lease.

          (7) Landlord agrees not to divulge to any party the amount of Gross Receipts made by Tenant in
the Leased Premises, except to the taxing authorities with authority to inquire therein, to an
existing or bona fide prospective mortgagee or bona fide prospective purchaser of the Leased
Premises or the Leased Premises, or in connection with any action to collect Percentage Rent from
Tenant.

     2. Tenant’s Real Estate Taxes.

     A. As used in this Article, the following terms shall have the following meanings:

          (1) “Fiscal Tax Year” shall mean the 12-month period established as the real estate
tax year by the taxing authority having jurisdiction over the Leased Premises.

          (2) “Taxes” shall mean all ad valorem taxes and assessments and governmental charges
(including sewer charges), general or special, ordinary or extraordinary, foreseen or unforeseen,
of any kind or nature whatsoever, whether imposed by any Governmental Authorities, which are levied
on or charged against the Leased Premises, the Ski Facility, Tenant’s Property, the real estate on
which the Ski Facility is located, personal property or rents, or on the right or privilege of
leasing real estate or collecting rents thereon, and any other taxes and assessments attributable
to the Leased Premises or its operation or any tax or assessment or governmental charge imposed or
collected in lieu of or in substitution for any such tax, assessment or governmental charge,
including without limitation all special assessments, impact fees, development fees, traffic
generation fees, parking fees in respect of any Fiscal Tax Year falling wholly within the term of
this Lease and a portion of any real estate taxes so imposed in respect of any Fiscal Tax Year
falling partly within and partly without the term

35

 

hereof, equal to the proportion which the number of days of such Fiscal Tax Year falling within the
term hereof bears to the total number of days of such Fiscal Tax Year; excluding, however, any
income, franchise, corporate, capital levy, capital stock, excess profits, transfer, revenue,
estate, inheritance, gift, devolution or succession tax payable by Landlord or any other tax,
assessment, charge or levy upon, or measured, in whole or in part, by the rent payable hereunder by
Tenant, except to the extent any such tax, assessment, charge or levy is imposed in substitution
for any ad valorem tax or assessment.

          (3) “Taxes Applicable to Leased Premises” shall mean an amount equal to the Taxes
levied against the land and improvements within the Leased Premises.

     B. Tenant shall pay the Taxes Applicable to the Leased Premises directly to the appropriate
taxing authorities prior to their delinquency.

     C. Tenant shall have the right (but shall not be obligated) to contest the Taxes Applicable to
the Leased Premises or the validity thereof by appropriate legal proceedings or in such other
manner as it shall deem suitable, and Landlord shall join in such contest, protest or proceeding,
but at Tenant’s sole cost and expense. Landlord shall not, during the pendency of such legal or
other proceeding or contest, pay or discharge any Taxes on the Leased Premises, or tax lien or tax
title pertaining thereto, provided Landlord may do so in order to stay a sale of the Leased
Premises through foreclosure of a tax lien thereon. Any refund obtained by Tenant shall be paid
first to Tenant to the extent of its costs and expenses of such contest and on account of any
portion of the Taxes so refunded which was previously paid by Tenant.

     3. Address for Payment. Until Tenant receives other instructions in writing from
Landlord, Tenant shall pay all rents and other charges under this Lease by check to the order of
Landlord, at its address first written in this Lease.

	 	 	 	 	 
	 	EPT MAD RIVER, INC.,

a Missouri corporation

 	 
	 	By:  	/s/ Gregory K. Silvers
 	 
	 	 	Gregory K. Silvers, Secretary 	 

“Landlord”

	 	 	 	 	 
	 	MAD RIVER MOUNTAIN, INC.,

a Missouri corporation

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

“Tenant”

36

 

EXHIBIT A 

LEGAL DESCRIPTION OF PROPERTY

PARCEL I:

     Lying in Virginia Military Survey 3138, Virginia Military Survey 4957, Virginia Military
Survey 4948, 9423, 9876, and Virginia Military Survey 4195, 4604, Jefferson and Monroe Townships,
Village of Valley Hi, Logan County, Ohio.

     Being all of the MRM Investment Inc. original 268.183 acre tract as deeded and described in
Official Record 146, Page 628, Parcel I, and the 8.362 acre tract, the 1.163 acre tract and the
43.998 acre tract as deeded and described in Official Record 136, Page 373 of the Logan County
Records of Deeds and being more particularly described as follows:

     Beginning at a 5/8 inch iron rod found on the center-line of County Highway 291 (Marmon Road)
at the intersection with the east line of Virginia Military Survey 3138 on the Village of Valley Hi
Corporation Line.

     THENCE, with the center-line of County Highway 291 (60 feet wide), and the Village of Valley
Hi Corporation Line, N 68°-01 ’-12” E a distance of 783.37 feet to a 3/4 iron rod found.

     THENCE, continuing with the center-line of County Highway 291 and the Village of Valley Hi
Corporation Line, N 63°-16’-41” E, a distance of 60.20 feet to a MAG nail set.

     THENCE, S 14°-30’-08” W, a distance of 39.89 feet to a 5/8 inch iron rod found.

     THENCE, with the south right-of-way of County Highway 291, N 61°-16’-29” E, a distance of
308.44 feet to a 5/8 inch iron rod found.

     THENCE, with the Village of Valley Hi Corporation Line and the west line of the Alexander
Andreoff 0.973 acre tract, (O.R. 233, Pg. 682, Tract I), 1.249 acre tract, (O.R. 284, Pg. 704) and
6.939 acre tract, (O.R. 167, Pg. 604, Parcel I), S 14°-38’-02” W, a distance of 985.44 feet to a 1
inch iron pipe found.

     THENCE, with the Village of Valley Hi Corporation Line and the south line of the said 6.939
acre tract, N 77°-03’-52” E, a distance of 700.29 feet to a 5/8 inch iron rod found.

     THENCE, with the Village of Valley Hi Corporation Line and the west lines of the Rose Marie
Bonetzky 20.33 acre tract, (Vol. 393, Pg. 887), the R. Michael Reichert 5.71 acre tract, (O.R. 208,
Pg. 714, Tract III) and the Krista L. Harmon 9.995 acre tract, (O.R. 89, Pg. 750), S 14°-04’-34” W,
a distance of 1977.93 feet to a 1-1/2 inch iron pipe found.

     THENCE, with the Village of Valley Hi Corporation Line and the north line of the Randy A.
Lockwood original 40.468 acre tract, (O.R. 395, Pg. 266), S 75°-33’-36” W, a distance of 1330.03
feet to a 5/8 inch iron rod found on the east line of Virginia Military Survey 3138.

     THENCE, with the north line of Mountain Top Campground (Plat Cabinet A, Slide 591), S
73°-39’-06” W, a distance of 1525.79 feet to a 5/8 inch iron rod found.

A-1

 

     THENCE, with the north lines of Alpine Village Subdivision No. 2, (Plat Cabinet A, Slide 515),
the following four (4) courses:

     N 81°-17’-29” W, a distance of 347.70 feet to a 5/8 inch iron rod set.

     A curve to the right having a central angle of 11°-56’-53”, a radius of 425.74 feet, an arc
length of 88.78 feet, and a chord bearing N 75°-25’-44” W, a distance of 88.62 feet to a 1/2 inch
iron pipe found.

     N 20°-39’-58” E, a distance of 119.35 feet to a 1/2 inch iron pipe found.

     N 44°-04’-30” W, a distance of 142.39 feet to a 5/8 inch iron rod set.

     THENCE, with the lines of the Michael B. Shepherd 6’ strip, (Vol. 333, Pg. 868), the following
three (3) courses:

     N 45°-55’-30” E, a distance of 6.00 feet to a 5/8 inch iron rod set.

     N 44°-04’-30” W, a distance of 119.97 feet to a 5/8 inch iron rod set.

     S 35°-36’-37” W, a distance of 6.10 feet to a 1/2 inch iron pipe found.

     THENCE, with the lines of said Alpine Village Subdivision No. 2, the following three courses:

     N 54°-33’-05” W, a distance of 194.00 feet to a 5/8 inch iron rod set.

     S 35°-36’-37” W, a distance of 289.58 feet to a 1/2 inch iron pipe found.

     N 69°-17’-40” W, a distance of 50.99 feet to a 5/8 inch iron rod set.

     THENCE, with the lines of Alpine Village Subdivision No. 1, (Plat Cabinet A, Slide 415), the
following three (3) courses:

     N 20°-45’-00” E, a distance of 125.52 feet to a 1/2 inch iron pipe found.

     N 11°-45’-39” E, a distance of 419.97 feet to a 5/8 inch iron rod set.

N 4°-46’-00” W, a distance of 491.17 feet to a 1 inch iron pipe found.

     THENCE, with the lines of the Madriver Valley Ski Club, Inc. 0.412 acre tract, (Vol. 327, Pg.
805), the following three (3) courses:

     N 43°-37’-28” E, a distance of 106.78 feet to a 5/8 inch iron rod found.

     N 4°-53’-56” W, a distance of 183.76 feet to a 5/8 inch iron rod found.

     N 81°-15’-20” W, a distance of 74.24 feet to a 5/8 inch iron rod set.

A-2

 

     THENCE, with the lines of the said Alpine Village Subdivision No. 1, the following two (2)
courses:

     A curve to the left having a central angle of 70°-52’-53”, a radius of 225.00 feet, an arc
length of 278.35 feet and a chord bearing N 27°-19’-02” W, a distance of 260.94 feet to a 5/8 inch
iron rod set.

     A curve to the right having a central angle of 90°-00’-00”, a radius of 25.00 feet, an arc
length of 39.27 feet and a chord bearing N 20°-52’-28” W, a distance of 35.36 feet to a 5/8 inch
iron rod set.

     THENCE, with the southerly right-of-way of County Highway 291 and the lines of Alpine Village
Subdivision No. 1, the following three (3) courses:

     S 22°-48’-10” W, a distance of 219.77 feet to a 5/8 inch iron rod set.

     A curve to the right having a central angle of 48°-06’-30”, a radius of 508.34 feet, an arc
length of 426.82 feet and a chord bearing S 47°-00’-15” W, a distance of 414.40 feet to a 5/8 inch
iron rod set.

     S 71°-11 ‘-24” W, a distance of 352.84 feet to a 5/8 inch iron rod set.

     THENCE, with the lines of the Alpine Village Subdivision No. 1, the following three (3)
courses:

     S 19°-02’-25” E, a distance of 357.24 feet to a 1 inch iron pipe found.

     S 53°-50’-30” W, a distance of 426.75 feet to a 5/8 inch iron rod set.

     S 14°-18’-29” W, a distance of 289.85 feet to a 1 inch iron pipe found.

     THENCE, with the lines of the Aldredge Brothers, Ltd, 10.801 acre tract, (O.R. 415, Pg. 117),
the following two (2) courses:

     S 42°-11 ‘-26” W, a distance of 760.71 feet to a 5/8 inch iron rod found.

     S 51°-57’-33” E, a distance of 571.72 feet to a 5/8 inch iron rod found.

     THENCE, with the Village of Valley Hi Corporation Line, the easterly line of Virginia Military
Survey 4957, and the westerly line of the Don K. Miller original 195.98 acre tract, (O.R. 353, Pg.
906), S 55°-40’-02” W, a distance of 309.44 feet to a 5/8 inch iron rod found.

     THENCE, with the Village of Valley Hi Corporation Line and the northerly lines of the Michael
W. Siekierka original 56.454 acre tract, (O.R. 380, Pg. 365) and Mary J. Stoner original 70.67 acre
tract, (Vol. 325, Pg. 219), N 51°-59’-54” W, a distance of 1265.00 feet to a point on the center of
the Mad River, passing a 5/8 inch iron rod set at 1224.84 feet.

     THENCE, with the Village of Valley Hi Corporation Line, the center of the Mad River and the
easterly lines of the Premier Properties, A Florida General Partnership, original

A-3

 

25.86 acre tract, (O.R. 116, Pg. 978, Tract X, Parcel VII) and original 132.24 acre tract,
(O.R. 359, Pg. 777, Parcel V (A & B)), the Charles F. Godwin 56.52 acre tract, (Vol. 374, Pg. 344),
and the Michael L. Berry original 60.69 acre tract, (O.R. 215, Pg. 343), the following eighteen
(18) courses:

     N 43°-23’-34” E, a distance of 811.59 feet to a point referenced by a 5/8 inch iron rod set S
53°-10’-04” E, a distance of 30.00 feet.

     N 58°-51’-21” E, a distance of 181.76 feet to a point referenced by a 5/8 inch iron rod set S
53°-10’-04” E, a distance of 20.00 feet.

     N 21°-47’-19” E, a distance of 180.91 feet to a point referenced by a 5/8 inch iron rod set S
53°-10’-04” E, a distance of 30.00 feet.

     N 56°-38’-19” E, a distance of 191.93 feet to a point referenced by a 5/8 inch iron rod set S
53°-10’-04” E, a distance of 20.00 feet.

     N 40°-40’-28” E, a distance of 346.77 feet to a point referenced by a 5/8 inch iron rod set S
53°-10’-04” E, a distance of 25.00 feet.

     N 38°-53’-35” E, a distance of 204.41 feet to a point referenced by a 5/8 inch iron rod set S
53°-10’-04” E, a distance of 20.00 feet.

     N 55°-45’-42” E, a distance of 184.71 feet to a point referenced by a 5/8 inch iron rod set S
53°-10’-04” E, a distance of 20.00 feet.

     N 29°-23’-05” E, a distance of 341.76 feet to a point referenced by a 5/8 inch iron rod set S
53°-10’-04” E, a distance of 20.00 feet.

     N 23°-19’-04” E, a distance of 248.82 feet to a point referenced by a 5/8 inch iron rod set S 53°-10’-04” E, a
distance of 25.00 feet.

     N 35°-28’-10” E, a distance of 450.58 feet to a point referenced by a 5/8 inch iron rod set S
53°-10’-04” E, a distance of 20.00 feet.

	 	 	N 13°-08’-14” E, a distance of 239.30 feet to a point.

     S 65°-56’-35” E, a distance of 80.31 feet to a point referenced by a 5/8 inch iron rod set S
53°-10’-04” E, a distance of 15.00 feet.

	 	 	N 33°-33’-22” E, a distance of 187.53 feet to a point.

     N 9°-21’-07” E, a distance of 113.96 feet to a point referenced by a 5/8 inch iron rod set S
53°-10’-04” E, a distance of 15.00 feet.

N 71°-51’-10” E, a distance of 177.58 feet to a point referenced by a 5/8 inch iron rod set S
53°-10’-04” E, a distance of 15.00 feet.

A-4

 

     N 51°-40’-41” E, a distance of 602.21 feet to a point referenced by a 5/8 inch iron rod set S
53°-10’-04” E, a distance of 20.00 feet.

     N 29°-31’-02” E, a distance of 558.66 feet to a point referenced by a 5/8 inch iron rod set S
53°-10’-04” E, a distance of 20.00 feet.

     N 33°-08’-51” E, a distance of 212.04 feet to a point.

     THENCE, with the Village of Valley Hi Corporation Line and the south line of the Donald L. Van
Hyning original 51.16 acre tract, (O.R. 161, Pg. 204, Tract III), S 69°-36’-45” E, a distance of
1990.59 feet to a 5/8 inch iron rod set, passing a 5/8 inch iron rod set at 25.00 feet.

     THENCE, with the Village of Valley Hi Corporation Line, the east line of Virginia Military
Survey 3138, and the west line of the Donald L. Van Hyning original 77.3 acre tract, (O.R. 161, Pg.
204, Tract I), S 6°-33’-59” W, a distance of 242.68 feet to the point of beginning, passing a 5/8
inch iron rod set at 208.53 feet.

     Containing 324.614 acres, of which 7.077 acres are within the highway right-of-way; 233.172
acres are in Virginia Military Survey 3138, of which 0.203 acre is in Monroe Township; 21.782 acres
are in Virginia Military Survey 4957, of which 7.468 acres are in Jefferson Township; 18.189 acres
are in Virginia Military Survey 4948, 9423, 9876; 51.471 acres are in Virginia Military Survey
4195, 4604; 310.097 acres are in Jefferson Township and 14.517 acres are in Virginia Military
Survey 4957, Monroe Township.

     The basis for bearings is the easterly line of Alpine Village Subdivision at the said 0.412
acre tract, being N 4°-46’-00” W, and all other bearings are from angles and distances measured in
a field survey by Lee Surveying and Mapping Co., Inc. on November 2, 1999.

PARCEL II:

     Situated in the Townships of Jefferson and Monroe, Logan County, Ohio, and being Lots Numbered
One (1), Three (3), Four (4), Five (5) and Fifty-eight (58) of ALPINE VILLAGE SUBDIVISION, as the
same are numbered and delineated on the recorded plat of said subdivision, as recorded in Plat Book
4, page 105, Recorder’s Office, Logan County, Ohio.

PARCEL III:

     Situated in the Townships of Jefferson and Monroe, Logan County, Ohio, and being Lots Numbered
Sixty-nine (69) and Seventy-six (76) of ALPINE VILLAGE SUBDIVISION II, as the same are numbered and
delineated upon the recorded plat thereof, as recorded in Plat Book 6-F, page 29, Recorder’s
Office, Logan County, Ohio.

A-5

 

EXHIBIT B 

SITE PLAN

B-1

 

 

 

 

 

EXHIBIT D 

INSURANCE ENDORSEMENTS

D-1

 

EXHIBIT E

None.

E-1

 

EXHIBIT F

Exhibit F

	 	 	 	 	 
	Asset No.	 	Asset Description	 	Date Acquired
	12/31/00
	 	 	 	 
	2

	 	Fixtures and Equipment-Nationwide
	 	12/27/00
	4

	 	Groomer
	 	12/27/00
	5

	 	Rental Equipment-Nationwide
	 	12/27/00
	9

	 	Computers
	 	12/27/00
	 
	 	 	 	 
	12/31/01
	 	 	 	 
	23

	 	POS Software
	 	10/31/01
	24

	 	Computer Hardware
	 	10/31/01
	18

	 	Sign making machine
	 	11/30/01
	11

	 	Rental Equipment
	 	12/27/01
	15

	 	Ice Machine
	 	12/27/01
	17

	 	Lodge Chairs
	 	12/27/01
	 
	 	 	 	 
	12/31/02
	 	 	 	 
	37

	 	MBNA America
	 	01/01/02
	38

	 	MBNA America
	 	01/01/02
	39

	 	Computers
	 	01/01/02
	40

	 	Computers
	 	01/01/02
	41

	 	Computers
	 	01/01/02
	42

	 	Computers
	 	01/01/02
	43

	 	Rental Equipment-Burton
	 	01/01/02
	44

	 	Track-Hydraulic Pumps
	 	01/01/02
	45

	 	Tax on Groomer
	 	01/01/02
	47

	 	Computer
	 	01/01/02
	31

	 	Sirius Point of Sale Software
	 	03/01/02
	32

	 	Computer Hardware
	 	03/01/02
	35

	 	4 Wheel Drive Gator
	 	03/01/02
	57

	 	Computer
	 	04/01/02
	55

	 	Computer
	 	04/06/02
	53

	 	Computer Software-Sirius
	 	08/01/02
	56

	 	Silverado 1 Ton Truck
	 	10/16/02
	49

	 	Rental Equipment
	 	12/01/02
	54

	 	Computer Hardware
	 	12/31/02

F-1

 

	 	 	 	 	 
	Asset No.	 	Asset Description	 	Date Acquired
	12/31/03
	 	 	 	 
	64

	 	Groomer-from BMBW
	 	02/01/03
	65

	 	Rental Equip-From Interco
	 	02/01/03
	60

	 	Goode
	 	02/17/03
	61

	 	MBNA
	 	03/05/03
	62

	 	Don Walls-Computer Hardware
	 	03/12/03
	 
	 	 	 	 
	63

	 	Sieiusware-Software
	 	03/31/03
	71

	 	Computers
	 	09/30/03
	72

	 	Computers
	 	12/15/03
	73

	 	Rental Equipment
	 	12/15/03
	 
	 	 	 	 
	12/31/04
	 	 	 	 
	 
	 	 	 	 
	80

	 	Mower
	 	12/01/04
	82

	 	Groomer Engine
	 	12/01/04
	83

	 	New Server
	 	12/01/04
	84

	 	Cisco Switches
	 	12/01/04
	85

	 	Computers
	 	12/01/04
	86

	 	Rental Equipment
	 	12/01/04
	 
	 	 	 	 
	12/31/05
	 	 	 	 
	 
	 	 	 	 
	88

	 	Rental Equipment
	 	01/01/05
	89

	 	Tube Covers
	 	01/01/05
	90

	 	Additional Server Costs
	 	01/01/05
	91

	 	Generator
	 	01/01/05
	92

	 	Generator
	 	01/01/05

F-2exv10w20

Exhibit 10.20

FIRST AMENDMENT TO LEASE AGREEMENT

     THIS FIRST AMENDMENT TO LEASE AGREEMENT (this “Amendment”) is made as of the 30th day of
June, 2006, by and between EPT MAD RIVER, INC., a Missouri corporation (“Landlord”) and MAD RIVER
MOUNTAIN, INC., a Missouri corporation (“Tenant”).

RECITALS.

     A. Pursuant to that certain Lease Agreement dated as of November 17, 2005 (the
“Original Lease”), between Landlord and Tenant, Landlord leased to Tenant and
Tenant leased from Landlord certain premises located on real property in the
Village of Valley Hi, Logan County, Ohio, as more particularly described in the
Original Lease.

     B. Tenant desires to make certain tenant improvements to the Leased Premises,
and Landlord has agreed to provide an allowance for such improvements, on and
subject to the terms and conditions hereinafter provided.

     C. Landlord and Tenant desire to amend the Original Lease as set forth below.

     NOW, THEREFORE, Landlord and Tenant each agrees to amend the Original Lease as follows:

          1. Defined Terms. Defined terms not otherwise defined herein shall have the
meaning given to such term in the Original Lease.

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

          3. Amendment of Section 2 of the Original Lease.

     (a) The following defined terms are hereby added to Section 2 of the Original Lease:

     “Improvements Rent” shall mean an amount equal to an annualized return
of nine and three quarters percent (9.75%) on all sums actually advanced or paid by
Landlord as part of the Tenant Improvement Allowance, on or before the last day of
the immediately preceding month.

     “Tenant Improvements” shall have the meaning given such term in
Section 48 hereof.

     “Tenant Improvement Allowance” shall have the meaning given such term
in Section 48 hereof.

     “Transfer”, for purposes of the Section captioned “Right of First
Offer”, shall mean any sale, transfer, conveyance or other disposal of the Leased
Premises

 

 

or any part thereof, but excluding any transfer to an Affiliate of Landlord for financing
purposes.

(b) The following defined terms are hereby deleted from the Original Lease and replaced with
the same such defined term, with the accompanying definition set forth below:

     “Rent” shall mean Annual Fixed Rent, Annual Percentage Rent, Improvements Rent
and any other charges, expenses or amount payable by Tenant under the Lease.

          4. Amendment of Section 5(a) of the Original Lease. Section 5(a) of the Original Lease
shall be deleted in its entirety and replaced with the following:

     5. Rent

     (a) Fixed, Percentage & Improvements. Tenant shall pay Landlord, without
abatement, adjustment or setoff except as otherwise expressly set forth herein, the Annual Fixed
Rent in the manner set forth herein and in the Rent and Expense Rider commencing on the Effective
Date, and, if applicable, Annual Percentage Rent, in the manner set forth herein and in the Rent
and Expense Rider. Tenant shall pay Landlord, without abatement, adjustment or setoff except as
otherwise expressly set forth herein, the Improvements Rent as set forth in Section 48.

          5. Amendment of Section 36 of the Original Lease. Section 36 of the Original Lease
shall be deleted in its entirety and replaced with the following:

     36. Right of First Offer.

               (a) Grant of Right of First Offer. Subject to the terms and conditions set
forth in this Section 36, Landlord hereby grants to Tenant a right of first offer
(“First Offer Right”) relating to the Transfer of any of the Leased Premises. If, at
any time during the term hereof, Landlord desires to Transfer all or any portion of the
Leased Premises (the “Offered Property”) to another third party ski resort operator,
or to an entity controlled by another ski resort operator (excluding any real estate
investment trusts or any other financing entities even if owned or controlled by another ski
resort operator), Landlord shall first deliver to Tenant written notice (the “Notice of
Transfer”), which Notice of Transfer shall state Landlord’s desire to Transfer the
Offered Property and contain an accurate description of the Offered Property and its
proposed operations.

               (b) Election to Offer.

               (i) If Tenant elects to make an offer to purchase the Offered Property, Tenant shall
deliver to Landlord within 60 days following the date the Notice of Transfer was received by
Tenant (the “Offer Date”) a written offer (the “Offeree Offer”), which
Offeree Offer shall offer to purchase the Offered Property on the terms and conditions,
including price, timing and lease terms (if applicable), specified therein. The Offeree
Offer shall disclose all

2

 

material facts relating to the proposed transaction and, at
Tenant’s option, may include a form purchase agreement or lease, as applicable. Each Offeree
Offer shall be an irrevocable commitment by Tenant to purchase the Offered Property on the
terms and conditions set forth therein.

               (ii) If Tenant does not elect to make an offer to purchase the Offered Property by the
Offer Date or if Tenant makes an offer to purchase the Offered Property by the Offer Date
and Landlord elects not to Transfer the Offered Property on the terms offered by Tenant,
Landlord (X) shall be under no obligation to Transfer any portion of the Offered Property to
any person, unless Landlord so elects, and (Y) may, within a period of 6 months from and
after the Offer Date, solicit offers relating to the Transfer of such Offered Property. The
First Offer Right granted to Tenant under the terms and conditions of this Section 36 shall
revive in the event that Landlord fails to Transfer the Offered Property within the 6 months
from and after the Offer Date.

               (d) Closing. The closing of any Transfer of Offered Property pursuant to this
Section 36 shall be determined by the Landlord and Tenant (which, unless otherwise agreed,
shall be within 60 days after the acceptance of any offer hereunder).

               (e) No Assignment. The First Offer Right granted hereby is personal to Tenant,
and, as an inducement to Landlord to enter into this Section 36, it is expressly agreed that
Tenant has no right, directly or indirectly, to assign in whole or in part any rights
granted by this Section 36, unless such assignment is to an Affiliate of Tenant or to a
person or entity which has acquired substantially all of the assets of Tenant. Landlord
shall have no obligation or requirement to deal with any party other than Tenant in all
matters relating to this Section 36.

          6. Amendment of Section 48 of the Original Lease. Section 48 of the Original
Lease shall be deleted in its entirety and replaced with the following.

     48. Tenant Improvements; Tenant Allowance. This Section 48 is and shall
remain subject to Section 13(c)(Minor Alterations) of this Lease.

               a. Tenant Improvements. Tenant desires to construct, and Landlord has approved
the construction of, certain improvements and the performance of certain work upon the
Leased Premises, including the construction of a new tubing park, the installation of
certain snowmaking equipment, the clearing of new ski slopes and the installation of new ski
lifts thereon, all as described on Exhibit G, attached hereto and incorporated
herein by reference (collectively, the "Tenant’s Improvements”), which shall be
performed by Tenant at Tenant’s sole cost and expense. Tenant’s Improvements shall at all
times comply fully with all applicable federal, state and municipal laws, ordinances,
regulations, codes and other governmental requirements now or

3

 

hereafter in force and Tenant
shall, at Tenant’s sole cost and expense, take all actions now or hereafter necessary to
ensure such compliance.

               b. Construction of Tenant Improvements. Tenant agrees to construct the Tenant
Improvements and pay when due all claims for labor or materials furnished or alleged to
have been furnished to or for Tenant at, on or for use in the Leased Premises in connection
with the Tenant’s Improvements. Tenant shall keep the Leased Premises and any interest
therein, free and clear of all mechanics’ liens and all other liens. Tenant shall give
Landlord immediate, written notice of any lien filed against the Leased Premises, or any
interest therein related to or arising from work performed by or for Tenant. If Tenant
shall in good faith contest the validity of any such lien, claim or demand in connection
with Tenant’s Improvements, then Tenant, at its sole expense, shall defend, indemnify,
protect and hold the Leased Premises and Landlord harmless against the same and shall pay
and satisfy any such adverse judgment that may be rendered thereon before the enforcement
thereof against Tenant, Landlord, or the Leased Premises. Upon Landlord’s request, Tenant
shall furnish to Landlord a corporate surety bond, satisfactory to Landlord, in an amount
equal to one and one-half (1 1/2) times the amount of any such contested lien, claim or
demand, indemnifying Landlord and Tenant from liability for any such lien, claim or demand
and holding the Leased Premises free and harmless from and against the effect of any such
lien, claim or demand and causing the release and reconveyance of said lien from the Leased
Premises. In addition, Landlord shall have the right to require that Tenant pay Landlord’s
attorneys’ fees and disbursements, court costs and other costs in defending any such action
if Landlord is named as a party to any such action, the lien encumbers any portion of the
Leased Premises or if Landlord elects to defend any such action or lien.

               c. Tenant Improvement Allowance. Landlord shall provide a tenant improvement
allowance for Tenant’s expenses incurred in the construction of Tenant’s Improvements on
the Leased Premises (the “Tenant Improvement Allowance”). The Tenant Improvement Allowance
shall be an amount equal to the lesser of (i) the actual costs of Tenant’s Improvements on
the Leased Premises, or (ii) $1,500,000.00. Landlord shall disburse the Tenant Improvement
Allowance in two disbursements in accordance with the following requirements:

                    i. The first disbursement of the Tenant Improvement Allowance shall be payable to
Tenant upon submission by Tenant to Landlord of an affidavit whereby Tenant certifies the
percentage of work which has been completed in connection with the construction of the
Tenant Improvements in comparison to the Tenant’s budget for the Tenant Improvements
previously submitted to Landlord by Tenant (the “Initial
Disbursement Certificate”). The
first disbursement of the Tenant Improvement Allowance shall be equal to the same proportion
as the percentage of
work certified in the Initial Disbursement Certificate bears to the total maximum
Tenant Improvement Allowance. For the first disbursement of one the Tenant Improvement

4

 

Allowance, Tenant must submit an affidavit of Tenant indicating that all subcontractors,
laborers and material suppliers have been paid in full, and providing appropriate full or
partial lien waivers from the contractor, subcontractors, laborers and material suppliers
represented by such invoices more than thirty (30) days old.

                    ii. The final disbursement of the remaining Tenant Improvement Allowance (which
disbursement shall only be made upon completion of 100% of the Tenant’s Improvements based
on the amount funds expended by Tenant as a proportion to the total Tenant Improvement
Allowance) shall be made upon Tenant’s submittal of the items listed in Section 48(c)(i)
above along with the following:

                         (1) a certificate of substantial completion signed by the Tenant, in form and content
acceptable to Landlord;

                         (2) unconditional final lien waivers from any and all contractors, subcontractors,
materialmen, laborers and suppliers for all work related to Tenant’s completion of the
Tenant Improvements,

                         (3) a certification from the Tenant that all contractors, subcontractors, materialmen,
laborers and suppliers have been paid in full, that the work has been completed to plans and
specifications, and indemnifying Landlord against any claims from such contractors,
subcontractors, materialmen, laborers and suppliers for any work performed at or for the
benefit of the Leased Premises.

     In no event shall Landlord be obligated to disburse the Tenant Allowance or any part
thereof if Tenant is in arrears with regard to any Rent or other charges which might be due
or owing, or otherwise in default under this Lease.

     No portion of the Tenant Improvement Allowance shall be allowed as a setoff against
rent or other charges owing to Landlord by Tenant. Tenant shall have opened for business in
the Leased Premises in strict accordance with the terms and provisions of the Lease.

     In no event shall Landlord be obligated to make disbursements pursuant to this Section
48 for Tenant Improvements in a total amount that exceeds the Tenant Improvement Allowance,
and any additional costs or expenses which arise in connection with the construction or
development of the Tenant Improvements shall be solely the responsibility of the Tenant.
Additionally, Tenant agrees that the Tenant Improvement Allowance may only be used for real
property improvements and shall not be used for Tenant’s furnishings, equipment or personal
property, which shall be solely Tenant’s responsibility and expense.

                    d. Title to Tenant Improvements. Any and all
Tenant’s Improvements which may be made in or upon the Leased Premises shall

5

 

become the
property of Landlord and remain upon and be surrendered with the Leased Premises at the
expiration of the Term without compensation to Tenant.

                    e. Improvements Rent. As additional rent, Tenant shall pay Improvements Rent to
Landlord monthly during the Term without notice or demand on or before the first day of each
calendar month, in advance during such Lease Year.

          7. Attachment of Exhibit G.  Exhibit A, attached hereto and incorporated herein by
reference, is hereby affixed to the Lease and attached thereto as Exhibit G.

          8. 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.

          9. Successors and Assigns. This Amendment shall inure to the benefit of and be binding
upon Landlord and Tenant and their respective representatives, successors and assigns.

          10. Affirmation of Lease. All other terms and provisions of the Original Lease that
are not specifically modified by this Amendment shall remain in full force and effect, unmodified
by the terms of this Amendment. All references herein or in the Original Lease to the “Lease” shall
mean and refer to the Original Lease as amended by this Amendment.

[Remainder of Page Intentionally Left Blank]

6

 

     IN WITNESS WHEREOF, Landlord and Tenant have caused this Amendment to be duly executed as of
the day and year first above written.

	 	 	 

	“Landlord”

	 	“Tenant”
	 
	 	 
	EPT MAD RIVER, INC.,

a Missouri corporation

	 	MAD RIVER MOUNTAIN, INC.,

a Missouri corporation
	 
	 	 
	By: /s/ Gregory K. Silvers

	 	By: /s/ Stephen J. Mueller
	 

	 	 
	      Gregory K. Silvers, Vice-President

	 	      Stephen J. Mueller, Vice President

7

 

GUARANTOR’S CONSENT

     The undersigned Guarantor of the Lease hereby (i) acknowledges and consents to the terms of
the foregoing Amendment, (ii) reaffirms the full force and effect of its Guaranty dated November
17, 2005 (the “Guaranty”), as of the day and year first above written, and (iii) agrees that the
Guaranty guarantees payment and performance of all Obligations, as defined in the Guaranty, as
modified pursuant to this Amendment.

	 	 	 	 	 
	 	PEAK RESORTS, INC..,

a Missouri corporation

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

8

 

	 	 	 	 	 

Exhibit A

9

 

 6/30/2006

Construction for 10 lane Tubing Hill 

	 	 	 	 	 	 	 	 	 
	Snowmaking 
	 	 	 	 	 	 	 	 
	 Water Line (see page 1 attached) 
	 	 	 	 	 	 	 	 
	 1500ft. 6 inch 
	 	 	 @ $8.00 a ft 	 	 	 = $	          12,000.00 	 
	 
	 	 	 	 	 	 	 	 
	 200ft. 2 inch thread and fittings 
	 	 	 	 	 	 = $	            1000.00 	 
	 10- 6ft. (Rodgers) Hydrants 
	 	 	 @ 350.00 	 	 	 = $	           3,500.00 	 
	 10 - Pedestals 
	 	 	 @ 600.00 	 	 	 = $	          6,000.00 	 
	 8 - Super Polecats (see page 2 attached) 
	 	 	 @18500.00 	 	 	 = $	         148,000.00 	 
	 50-Tower pads 
	 	 	 @200.00 	 	 	 = $	 10,000.00 	 
	 Hoses 
	 	 	 	 	 	 = $	           1000.00 	 
	 Concrete for Tower bases 10 Yard. 
	 	 	 @ 80.00 	 	 	 = $	             800.00 	 
	 Hill and Parking Lot Lighting (see page 6, sec. 6) 
	 	 	 	 	 
	 10-1000 watt sodium light fixtures 
	 	 	 @ 369.00 a piece 	 	 	 = $	            3690.00 	 
	 10- Brackets 
	 	 	 @ 30.58 	 	 	 = $	             305.80 	 
	 10- Junction boxes 
	 	 	 @ 180.40 	 	 	 = $	           1,804.00 	 
	 10-30ft Light poles 
	 	 	 @ 110.00 a piece 	 	 	 = $	           1,100.00 	 
	 1500ft of Alcan 1/0 wire for lights 
	 	 	 	 	 	 = $	 3,570.00 	 
	 Wiring and Electrical 
	 	 	 	 	 	 	 	 
	
500 KVA Transformer (see page 6, sec. 5) 
	 	 	 = $	          12,372.00 	 
	 1200 amp panel 
	 	 	 	 	 	 = $	          6,957.00 	 
	 4500ft Primary Cable and connecters 
	 	 	 	 	 	 = $	          12,228.74 	 
	 Misc. Electrical components to wire transformer to service 
	 	 	 = $	           7,195.74 	 
	
1000 of Alcan 350 “snow guns”and misc. (See page 7, sec.7) 
	 = $	           5,898.40 	 
	
Alcan cable conn. And misc. (see page 7, sec. 8) 
	 	 	 = $	          2,451.00 	 
	 Labor expense Transformer and paneling wire
(see page 7, sec   9) 
	 = $	4,280.00 	 
	 DP&L Relocate electric poles. Bury electric
lines (see page 9 attached) 
	 = $	          15,203.00 	 
	 Excavation of Tubing Hill and Parking Lot 
	 	 	 	 	 
	 Tubing Hill and Parking Lot 
	 	 	 	 	 	 = $	          12,000.00 	 
	 Fuel and oil 
	 	 	 	 	 	 = $	            6000.00 	 
	 Chainsaws 
	 	 	 	 	 	 = $	 1000.00 	 
	 200 Car Parking Lot-160,000 sq ft 
	 	 	 	 	 
	 Gravel 2200 ton 
	 	 	 	 	 	 = $	          16,500.00 	 
	 Culvert 
	 	 	 	 	 	 = $	 1,000.00 	 
	 Sewage- 22 gal a minute facility 
	 	 	 	 	 	 	 	 
	 1500gal Tank, 1 Lift Station, 2 pumps 
	 	 	 	 	 	 = $	          6 ,000.00 	 
	 1500ft 3in pvc and coupling 
	 	 	 	 	 	 = $	           2,000.00 	 
	 Water System 
	 	 	 	 	 	 = $	          12,000.00 	 
	 
	 	 	 	 	 	 	 	 
	 Building

	 	 	 	 	 	 	 	 
	  24x80x12 (see pages 8 attached) with restrooms 
	 	 	 = $	          62,000.00 	 
	 Architect Plans and surveying cost 
	 	 	 	 	 	 = $	           6,000.00 	 
	 Ticket Office/ Snack (Interior) 
	 	 	 	 	 	 = $	          12,000.00 	 
	 Concrete Apron-26 yards 
	 	 	 	 	 	 = $	           1,800.00 	 
	 Misc. expenses-tables, signs, chairs, refrigerator,
water heater, shelving 
	 	 = $	          12,000.00 	 
	 Flooring 
	 	 	 	 	 	 = $	          14,000.00 	 
	 Heating 
	 	 	 	 	 	 = $	           4,000.00 	 
	 Exhaust fans, lighting, egress lighting, 15
amp duplex (see page 6, sec 4) 
	 	 = $	          4,900.00 	 
	 Plumbing 
	 	 	 	 	 	 = $	          4,500.00 	 
	 Handeltow 
	 	 	 	 	 	 	 	 
	 1- Carpet Lift 
	 	 	 @25000.00 	 	 	 = $	         85,000.00 	 * 
	 1-hut 
	 	 	 @3000.00 	 	 	 = $	 3,000.00 	 
	 2 - Terminal foundations 
	 	 	 @1500.00 	 	 	 = $	           3,000.00 	 
	 Tubes Regular tube holds 1 person  
	 	 	1 @ 93.00    x 500 	 	 	 = $	          46,500.00 	 
	 Fencing - Tube storage 
	 	 	 	 	 	 = $	           6000,00 	 
	 Communication            Dish and phone lines 
	 	 	 = $	           1,000.00 	 
	 MRM Labor HRS 5 men $14.00 hr/40 hr wks for 90 days 
	 	 	 = $	          33,600.00 	 
	 X 15% contingency 
	 	 	 	 	 	 = $	          83,648.35 	 
	 TOTAL 
	 	 	 	 	 	 = $	         698,804.05 	 

 

			
	 * 	 	 Not included in contingency 

 

6/30/2006
 

Construction
for 2- 2500 ft. Trails

	 	 	 	 	 	 	 	 	 

	Snowmaking
	 	 	 	 	 
	Water Line (see page 1 attached)
	 	 	 	 	 
	2000ft. 8 inch
	 		@ $12.00 a ft.		 	= $	24,000.00	 
	1000ft. l0 inch
	 		@$15.00 a ft.		 	= $	15,000.00	 
	1000ft. 6 inch
	 		@ $8.00 a ft.		 	= $	8,000.00	 
	 
	 	 	 	 	 	 	 	 
	675ft. 2 inch thread and fittings
	 	 	= $	2,500.00	 
	30- 6ft. (Rodgers) Hydrants
	 	 	@ 250.00	 	 	= $	7,500.00	 
	30-Electric Pedestals
	 	 	@ 700.00	 	 	= $	21,000.00	 
	 
	 	 	 	 	 	 	 	 
	23- Polecats (see page 2 attached)
	 	 	@16000.00	 	 	= $	368,000.00	 
	4 - Super Polecats
	 	 	@ 18,500.00	 	 	= $	74,000.00	 
	2 - 400 Hp Ingersoll motors & 2 —
Pacifica pumps w/freight
	 	 	@62,000.00	 	 	= $	124,000.00	 
	Hoses
	 	 	 	 	 	= $	2,000.00	 
	Concrete for Tower bases 50 Yard.
	 	 	@ 80.00	 	 	= $	4,000.00	 
	 
	 	 	 	 	 	 	 	 
	Hill Lighting
	 	 	 	 	 	 	 	 
	30 Brackets 
	 		@ 30.58 a piece		 	= $	917.40	 
	30-1000 watt sodium light fixtures
	 		@ 369.00 a piece		 	= $	11,070.00	 
	30-30ft Light poles
	 		@ 110.00 a piece		 	= $	3,300.00	 
	30-Light Boxes
	 		@ 180.40 a piece		 	= $	5,412.00	 
	5500ft of Alcan 1/0 wire for lights
	 	 	 	 	 	= $	15,054.00	*
	 
	 
	 	 	 	 	 	 	 	 
	Wiring and Electrical
	 	 	 	 	 	 	 	 
	4500ft Primary Cable with connecters
	 	 	= $	12,352.44	 
	1 - 750 KVA Transformers (see page 5 attached, section 2)
	 	 	= $	14,195.00	 
	2000 amp panel, stepdown, breakers, 100 amp load center
	 	 	= $	10,144.00	 
	 
	 	 	 	 	 	 	 	 
	Materials to wire transformer to service and electric room
	 	 	= $	11,007.75	 
	 
	5500 of Alcan 350 “snow guns” (page 5, section 3)
	 	 	= $	36,622.00	*
	Connectors
	 	 	= $	366.22	 
	 
	 	 	 	 	 	 	 	 
	600 amp service- Old Pump house
	 	 	= $	3,500.00	 
	Misc. wiring and connectors
	 	 	= $	1,600.00	 
	Labour expense- Transformer and paneling wire in Pump House and hill
	 	 	= $	8,000.00	 
	Excavation of Trails
	 	 	= $	54,000.00	 
	Grass Seed and Straw
	 	 	= $	2,500.00	 
	Fuel and oil
	 	 	= $	4,000.00	 
	Excavation to Enlarging Pond
	 	 	= $	25,000.00	 
	500ft of 3ft Culvert for Drainage ditch
	 	 	= $	10,260.00	 
	Gravel 100 ton
	 	 	=$	1,500.00	 
	1 Lift House
	 	 	@ 3000.00	 	 	= $	3,000.00	 
	1 Electric Room
	 	 	= $	3,000.00	 
	Communication Dish and phone lines
	 	 	=$	1,000.00	 
	Groomer
	 	 	= $	200,000.00	**
	Lease Track Hoe
	 	 	= $	16,000.00	***
	MRM Labor HRS 7 men@ $14.00 hr / 40 hr wks for 150 days
	 	 	= $	78,400.00	 
	X 15% contingency
	 	 	= $	141,518.97	 
	 
	TOTAL
	 	 	= $	1,323,719.78	 

 

			
	*	 	New trail will be approximately 3000ft in length

	 	•	 	Length of new lift 2006 ft., 255ft. in elevation
	 
	 	•	 	With the addition of approximately 16 acres this will take an additional Groomer
	 

			
	GRAND
TOTAL

	=$	2,022,523.83     

			
	*	 	Electric cable wires up 15% due to market change
	 
	**	 	Not included in contingency
	 
	***	 	Additional excavating expense

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"}]]