Document:

exv10w31

Exhibit 10.31

	 	 	 

	Authorization ID: WTM1750

Contact ID: WCACQU 

Expiration Date: NOVEMBER 18, 2050

Use Code: 161

	 	FS-2700-5b (10/09)

OMB No. 0586-0082

U.S. DEPARTMENT OF AGRICULTURE

FOREST SERVICE

SKI AREA TERM SPECIAL USE PERMIT

Authority: SKI AREA PERMIT ACT October 22,1986

WC Acquisition Corp, 17409 Hidden Valley Drive, Wildwood, MO 63025 (hereafter called the holder) is
hereby authorized to use National Forest System lands, on the White Mountain National Forest, for
the purposes of constructing, operating, and maintaining a four season outdoor sports resort
including food service, retail sales, and other ancillary facilities. described herein, known as
the Wildcat Mountain Resort ski area and subject to the provisions of this term permit. This permit
includes portions of US tracts #16, 18, 31 and 68, lying on the northwest slope of Wildcat Mountain
near Pinkham Notch, Coos County, New Hampshire and includes 953 acres described here and as shown
on the attached map dated October, 2010.

The following improvements, whether on or off the site, are authorized:

Constructing, operating and maintaining a year round outdoor sports resort, including food service,
retail sales, and other ancillary activities, such as mountain biking and the existing zipline.

Attached Clauses. This term permit is accepted subject to the conditions set forth herein on pages
2 through 19 and to appendices A to B attached or referenced hereto and made a part of this permit.

TERMS AND CONDITIONS

I. AUTHORITY AND USE AND TERM AUTHORIZED

A. Authority. This term permit is issued under the authority of the Act of October 22,
1986, (Title 16, United Statos Code, Section 497b), and Title 36. Code of Federal Regulations,
Sections 251.50.251.64.

B. Authorized Officer. The authorized officer is the Forest Supervisor. The
authorized officer may designate a representative for administration of specific portions
of this authorization.

C. Rules, Laws and Ordinances. The holder, in exercising the privileges granted by this
term permit, shall comply with all  present and future regulations of the Secretary of Agriculture
and federal laws; and all present and future, state, county, and municipal laws, ordinances, or
regulations which are applicable to the area or operations covered by this permit to the extent
they are not in conflict with federal law, policy or regulation. The Forest Service assumes no
responsibility for enforcing laws, regulations, ordinances and the like which are under the
jurisdiction of other government bodies.

D. Term. Unless sooner terminated or revoked by the authorized officer, in accordance with the
provisions of the authorization, this permit shall terminate on NOVEMBER 18, 2050 but a new
special-use authorization to occupy and use the same National Forest land may be granted provided
the holder shall comply with the then-existing laws and regulations governing the occupancy and use
of National Forest lands. The holder shall notify the authorized officer in writing not less than
six (6) months prior to said date that such new authorization is desired.

E. Nonexclusive Use. The use and occupancy authorized by this permit are not exclusive. The
Forest Service reserves the right of access to the permit area, including a continuing right of
physical entry to the permit area for inspection, monitoring, or any other purpose consistent with
any right or obligation of the United States under any law or regulation. The Forest Service
reserves the right to allow others to use the permit area in any way that is not inconsistent with
the holder’s rights and privileges under this permit, after consultation with all parties involved.
Except for any restrictions that the holder and the authorized officer agree are necessary to
protect the installation and operation of authorized improvements, the permit area shall remain
open to the public for all lawful purposes.

F. Master Development Plan. in consideration of the privileges authorized by this permit,
the holder agrees to prepare and submit changes in the Master Development Plan encompassing the
entire winter sports resort presently envisioned for development in connection with the National
Forest lands authorized by this permit, and in a form acceptable to the Forest Service. Additional
construction beyond maintenance of existing improvements shall not be authorized until this plan
has

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been amended. Planning should encompass all the area authorized for use by this permit. The
accepted Master Development Plan shall become a part of this permit. For planning purposes, a
capacity for the ski area in people-at-one time shall be established in the Master Development Plan
and appropriate National Environmental Policy Act (NEPA) document. The overall development shall
not exceed that capacity without further environmental analysis documentation through the
appropriate NEPA process.

G. Periodic Revision.

1. The terms and conditions of this authorization shall be subject to revision to reflect changing
times and conditions so that land use allocation decisions made as a result of revision to Forest
Land and Resource Management Plan may be incorporated.

2. At the sole discretion of the authorized officer this term permit may be amended to remove
authorization to use any National Forest System lands not specifically covered in the Master
Development Plan and/or needed for use and occupancy under this authorization.

II. IMPROVEMENTS

A. Permission. Nothing in this permit shall be construed to imply permission to build or
maintain any improvement not specifically named in the Master Development Plan and approved in the
annual operating plan, or further authorized in writing by the authorized officer.

B. Site Development Schedule. As part of this permit, a schedule for the progressive
development of the permitted area and installation of facilities shall be prepared jointly by the
holder and the Forest Service. Such a schedule shall be prepared by May 1st as part of
the annual summer operating plan and shall set forth an itemized priority list of planned
improvements and the due date for completion, This schedule shall be made a part of this permit.
The holder may accelerate the scheduled date for installation of any improvement authorized,
provided the other scheduled priorities are met; and provided further, that all priority
installations authorized are completed to the satisfaction of the Forest Service and ready for
public use prior to the scheduled due date.

1. All required plans and specifications for site improvements, and structures included in the
development schedule shall be properly certified and submitted to the Forest Service at least
forty-five (45) days before the construction date stipulated in the development schedule.

2. In the event there is agreement with the Forest Service to expand the facilities and services
provided on the areas covered by this permit, the holder shall jointly prepare with the Forest
Service a development schedule for the added facilities prior to any construction and meet
requirements of paragraph II.D of this section. Such schedule shall be made a part of this permit.

C. Plans. All plans for development, layout, construction, reconstruction or alteration of
improvements on the site, as well as revisions of such plans, must be prepared by a licensed
engineer, architect, and/or landscape architect (in those states in which such licensing is
required) or other qualified individual acceptable to the authorized officer. Such plans must be
accepted by the authorized officer before the commencement of any work. A holder may be required to
furnish as-built plans, maps, or surveys upon the completion of construction.

D. Amendment. This authorization may be amended to cover new, changed, or additional use(s)
or area not previously considered in the approved Master Development plan. In approving or denying
changes or modifications, the authorized officer shall consider among other things, the findings or
recommendations of other involved agencies and whether their terms and conditions of the existing
authorization may be continued or revised, or a new- authorization issued.

E. Ski Lift Plans and Specifications. All plans for uphill equipment and systems shall be
properly certified as being in accordance with the American National Standard Safety Requirements
for Aerial Passenger Tramways (B77.1). A complete set of drawings, specifications, and records for
each lift shall be maintained by the holder and made available to the Forest Service upon request.
These documents shall be retained by the holder for a period of three (3) years after the removal
of the system from National Forest land.

III. OPERATIONS AND MAINTENANCE

A. Conditions of Operations. The holder shall maintain the improvements and premises to
standards of repair, orderliness, neatness, sanitation, and safety acceptable to the authorized
officer. Standards are subject to periodic change by the authorized officer. This use shall
normally be exercised at least 100 days each year or season. Failure of the holder to exercise this
minimum use may result in termination pursuant to VIII.B.

B. Ski Lift, Holder Inspection. The holder shall have all passenger tramways inspected by a
qualified engineer or tramway specialist. Inspections shall be made in accordance with the
American National Standard Safety Requirements

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for Aerial Passenger Tramways (B77.1). A certificate of inspection, signed by an officer of the
holder’s company, attesting to the adequacy and safety of the installations and equipment for
public use shall be received by the Forest Service prior to public operation stating as a minimum;

“Pursuant to our special use permit, we have had an inspection to determine our compliance with the
American National Standard B77.1. We have received the results of that inspection and have made
corrections of all deficiencies noted. The facilities are ready for public use.”

C. Operating Plan. The holder or designated representative shall prepare and annually
revise by May 1 (summer), and October 15 (winter), an Operating Plan. The Plan shall be prepared in
consultation with the authorized officer or designated representative and cover winter and summer
operations as appropriate. The provisions of the Operating Plan and the annual revisions shall
become a part of this permit and shall be submitted by the holder and approved by the authorized
officer or their designated representatives. This plan shall consist of at least the following
sections;

1. Ski patrol and first aid.

2. Communications.

3. Signs.

4. General safety and sanitation.

5. Erosion control.

6. Accident reporting.

7. Avalanche control.

8. Search and rescue.

9. Boundary management.

10. Vegetation management.

11. Designation of representatives.

12. Trail routes for nordic skiing.

The authorized officer may require a joint annual business meeting agenda to:

a. Update Gross Fixed Assets and lift-line proration when the fee is calculated by the Graduated
Rate Fee System.

b. Determine need for performance bond for construction projects, and amount of bond.

c. Provide annual use reports.

D. Cutting of Trees. Trees or shrubbery on the permitted area may be removed or destroyed
only after the authorized officer has approved and marked, or otherwise designated, that which may
be removed or destroyed. Timber cut or destroyed shall be paid for by the holder at appraised
value, provided that the Forest Service reserves the right to dispose of the merchantable timber to
others than the holder at no stumpage cost to the holder.

E. Signs. Signs or advertising devices erected on National Forest lands shall have prior
approval by the Forest Service as to location, design, size, color, and message. Erected signs
shall be maintained or renewed as necessary to neat and presentable standards, as determined by the
Forest Service.

IV. NONDISCRIMINATION. During the performance of this permit, the holder agrees:

A. Nondiscrimination.

1. The holder and its employees shall not discriminate against any person on the basis of race,
color, sex (in educational activities), national origin, age, or disability or by curtailing or
refusing to furnish accommodations, facilities, services, or use privileges offered to the public
generally. In addition, the holder and its employees shall comply with the provisions of Title VI
of the Civil Rights Act of 1964 as amended, Section 504 of the Rehabilitation Act of 1973, as
amended, Title IX of the Education Amendments of 1972, as amended, and the Age Discrimination Act
of 1975, as amended.

2. The holder shall include and require compliance with the above nondiscrimination provisions in
any third-party agreement made with respect to the operations authorized under this permit.

3. The Forest Service shall furnish signs setting forth this policy of nondiscrimination. These
signs shall be conspicuously displayed at the public entrance to the premises and at other exterior
or interior locations, as directed by the Forest Service.

4. The Forest Service shall have the right to enforce the foregoing nondiscrimination provisions by
suit for specific performance or by any other available remedy under the laws of the United States
or the State in which the violation occurs.

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B. Equal Access to Federal Programs. In addition to the above nondiscrimination policy, the
holder agrees to insure that its programs and activities are open to the general public on an equal
basis and without regard to any non-merit factor.

V. LIABILITIES

A. Third Party Rights. This permit is subject to all valid existing rights and claims
outstanding in third parties. The United States is not liable to the holder for the exercise of any
such right or claim.

B. Indemnification of the United States. The holder shall indemnify, defend, and hold
harmless the United States for any costs, damages, claims, liabilities, and judgments arising from
past, present, and future acts or omissions of the holder in connection with the use and occupancy
authorized by this permit. This indemnification provision includes but is not limited to acts and
omissions of the holder or the holder’s heirs, assigns, agents, employees, contractors, or lessees
in connection with the use and occupancy authorized by this permit which result in (1) violations
of any laws and regulations which are now or which may in the future become applicable, including
but not limited to the environmental laws listed in clause XI.A of this permit; (2) judgments,
claims, demands, penalties, or fees assessed against the United States; (3) costs, expenses, and
damages incurred by the United States; or (4) the release or threatened release of any solid waste,
hazardous waste, hazardous materials, pollutant, contaminant, oil in any form, or petroleum product
into the environment. The authorized officer may prescribe terms that allow the holder to replace,
repair, restore, or otherwise undertake necessary curative activities to mitigate damages in
addition or as an alternative to monetary indemnification.

C. Damage to United States Property. The holder has an affirmative duty to protect from
damage the land, property, and other interests of the United States, Damage includes but is not
limited to fire suppression costs, and all costs and damages associated with or resulting from the
release or threatened release of a hazardous material occurring during or as a result of activities
of the holder or the holder’s heirs, assigns, agents, employees, contractors, or lessees on, or
related to, the lands, property, and other interests covered by this pormit. For purposes of
clauses V.C and section XI, “hazardous material” shall mean (a) any hazardous substance under
section 101(14) of the Comprehensive Environmental Response, Compensation, and Liability Act
(CERCLA), 42 U.S.C. § 9601(14); (b) any pollutant or contaminant under section 101(33) of CERCLA,
42 U.S.C, § 9601 (33); (c) any petroleum product or its derivative, including fuel oil, and waste
oils; and (d) any hazardous substance, extremely hazardous substance, toxic substance, hazardous
waste, ignitable, reactive or corrosive materials, pollutant, contaminant, element, compound,
mixture, solution or substance that may pose a present or potential hazard to human health or the
environment under any applicable environmental laws.

1. The holder shall avoid damaging or contaminating the environment, including but not limited to
the soil, vegetation (such as trees, shrubs, and grass), surface water, and groundwater, during the
holder’s use and occupancy of the permit area. If the environment or any government property
covered by this permit becomes damaged during the holder’s use and occupancy of the permit area,
the holder shall immediately repair the damage or replace the damaged items to the satisfaction of
the authorized officer and at no expense to the United States.

2. The holder shall be liable for all injury, loss, or damage, including fire suppression or other
costs associated with rehabilitation or restoration of natural resources, associated with the
holder’s use and occupancy of the permit area. Compensation shall include but is not limited to the
value of resources damaged or destroyed, the costs of restoration, cleanup, or other mitigation,
fire suppression or other types of abatement costs, and all associated administrative, legal
(including attorney’s fees), and other costs. Such costs may be deducted from a performance bond
required under clause XII.E.

3. The holder shall be liable for damage caused by use of the holder or the holder’s heirs,
assigns, agents, employees, contractors, or lessees to all roads and trails of the United States
that are open to public use to the same extent as provided under clause V.C.1, except that
liability shall not include reasonable and ordinary wear and tear.

D. Risks. The holder assumes all risk of loss to the improvements resulting from natural or
catastrophic events, including but not limited to, avalanches, rising waters, high winds, falling
limbs or trees, and other hazardous events. If the improvements authorized by this permit are
destroyed or substantially damaged by natural or catastrophic events, the authorized officer shall
conduct an analysis to determine whether the improvements can be safely occupied in the future and
whether rebuilding should be allowed. The analysis shall be provided to the holder within six (6)
months of the event.

E. Hazards. The holder has the responsibility of inspecting the area authorized for use
under this permit for evidence of hazardous conditions which could affect the improvements or pose
a risk of injury to individuals.

F. Insurance. The holder shall have in force public liability insurance covering: (1)
property damage in the amount of twenty five thousand dollars ($25,000), and (2) damage to persons
in the minimum amount of five hundred thousand dollars ($500,000) in the event of death or injury
to one individual, and the minimum amount of two million dollars ($2,000,000) in the event of death
or injury to more than one individual. These minimum amounts and terms are subject to change at the
sole discretion of the authorized officer at the five-year anniversary date of this authorization.
The coverage shall extend to property damage, bodily injury, or death arising out of the
holder’s activities under the permit including, but

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not limited to, occupancy or use of the land and the construction, maintenance, and operation of
the structures, facilities, or equipment authorized by this permit. Such insurance shall also name
the United States as an additionally insured. The holder shall send an authenticated copy of its
insurance policy to the Forest Service immediately upon issuance of the policy. The policy shall
also contain a specific provision or rider to the effect that the policy shall not be cancelled or
its provisions changed or deleted before thirty (30) days written notice to the Forest Supervisor,
White Mountain National Forest, attn: Winter Sports Team Resource Specialist, 99 Ranger Rd.,
Rochester, VT, 05767, by the insurance company.

Rider Clause (for insurance companies)

“It is understood and agreed that the coverage provided under this policy shall not be cancelled or
its provisions changed or deleted before thirty (30) days of receipt of written notice to the
Forest Supervisor, White Mountain National Forest, attn: Winter Sports Team Resource Specialist, 99
Ranger Rd., Rochester, VT, 05767, by the insurance company.”

VI. FEES

Ski Area Permit Fees. The Forest Service shall adjust and calculate permit fees authorized
by this permit to reflect any revisions to permit fee provisions in 16 U.S.C. 497c or to comply
with any new permit fee system based on fair market value that may be adopted by statute or
otherwise after issuance of this permit.

A. Fee Calculation. The annual fee due the United States for the activities authorized by
this permit shall be calculated using the following formula:

SAPF = (.015 x AGR in bracket 1) + (.025 x AGR in bracket 2) + (.0275 x AGR in bracket 3) + (.04 x
AGR in bracket 4)

Where:

AGR = [(LT + SS) x (proration %)] +GRAF

AGR is adjusted gross revenue;

LT is revenue from sales of alpine and nordic lift tickets
and passes;

GRAF is gross year-round revenue from ancillary
facilities;

Proration % is the factor to apportion revenue attributable to use of National
Forest System lands;

SAPF is the ski area permit fee for use of National Forest
System lands; and

SS is revenue from alpine and nordic ski school operations.

1. SAPF shall be calculated by summing the results of multiplying the indicated percentage rates by
the amount of the holder’s adjusted gross revenue (AGR), which falls into each of the four
brackets. Follow direction in paragraph 2 to determine AGR. The permit fee shall be calculated
based on the holder’s fiscal year, unless mutually agreed otherwise by the holder and the
authorized officer.

The four revenue brackets shall be adjusted annually by the consumer price index issued in FSH
2709.11, chapter 30. The revenue brackets shall be indexed for the previous calendar year. The
holder’s AGR for any fiscal year shall not be split into more than one set of indexed brackets.
Only the levels of AGR defined in each bracket are updated annually. The percentage rates do not
change.

The revenue brackets and percentages displayed in Exhibit 01 shall be used as shown in the
preceding formula to calculate the permit fee.

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Adjusted Gross Revenue (AGR) Brackets and Associated Percentage Rates

for Use in Determining Ski Area Permit Fee (SAPF)

Revenue Brackets (updated annually by CPI*) and Percentage Rates

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Holder FY	 	Bracket 1 (1.5%)	 	 	Bracket 2 (2.5%)	 	 	Bracket 3 (2.75%)	 	 	Bracket 4 (4%)	 
	FY 2007 CPI: 1.041
	 	All revenue below
$4,000,000	 	$4,000,000 to 
<$20,004,000	 	$20,004,000 to 
$66,680,000	 	All revenue over
$66,680,000
	FY 2008 CPI: 1.024
	 	All revenue below
$4,096,000	 	$4,096,000 to
<$20,484,000	 	$20,464,000 to
$68,280,000	 	All revenue over
$68,280,000
	FY 2009 CPI: 1.056
	 	All revenue below
$4,325,000	 	$4, 325,000 to
<$21,631,000.	 	$21,631,000 to
$72,104,000	 	All revenue over
$72,104,000

The Director of Recreation, Heritage, and Wilderness Resources, Washington Office, updates the
revenue brackets annually, based on the Consumer Price Index, (CPI-U), Table A which is published
monthly at http://www.bls.gov. The CPI is revised and issued annually in section 97.

The bracket update is accomplished by using the change in the CPI-U for “All Urban Consumers” index
for the month of July and is based on the percentage increase or decrease for the preceding
calendar year. This index base period is 1982-84=100. For example, the 2009 adjustment uses the
change between July 2007 and July 2006.

2. AGR shall be calculated by summing the revenue from lift tickets and ski school operations
prorated for use of National Forest System lands and from ancillary facility operations conducted
on National Forest System lands.

Revenue inclusions shall be income from sales of alpine and nordic tickets and ski area passes;
alpine and nordic ski school operations; gross revenue from ancillary facilities; the value of
bartered goods and complimentary lift tickets (such as lift tickets provided free of charge to the
holder’s friends or relatives); and special event revenue. Discriminatory pricing, a rate based
solely on race, color, religion, sex, national origin, age, disability, or place of residence, is
not allowed, but if it occurs, Include the amount that would have been received had the
discriminatory pricing transaction been made at the market price, the price generally available to
an informed public, excluding special promotions.

Revenue exclusions shall be income from sales of operating equipment; refunds; rent paid to the
holder by subholders; sponsor contributions to special events; any amount attributable to employee
gratuities or employee lift tickets; discounts; ski area tickets or passes provided for a public
safety or public service purpose (such as for National Ski Patrol or for volunteers to assist on
the slope in the Special Olympics); and other goods or services (except for bartered goods and
complimentary lift tickets) for which the holder does not receive money.

include the following in AGR:

a. Revenue from sales of year-round alpine and nordic ski area passes and tickets and revenue from
alpine and nordic ski school operations prorated according to the percentage of use between
National Forest System lands and private land In the ski area;

b. Gross year-round revenue from temporary and permanent ancillary facilities located on National
Forest System lands;

c. The value of bartered goods and complimentary lift tickets, which are goods, services, or
privileges that are not available to the general public (except for employee gratuities, employee
lift tickets, and discounts, and except for ski area tickets and passes provided for a public
safety or public service purpose) and that are donated or provided without charge in exchange for
something of value to organizations or individuals (for example, ski area product discounts,
service discounts, or lift tickets that are provided free of charge in exchange for advertising).

Bartered goods and complimentary lift tickets (except for employee gratuities, employee lift
tickets, discounts, and except for ski area tickets and passes provided for a public safety or
public service purpose) valued at market price shall be included in the AGR formula as revenue
under LT, SS, or GRAF, depending on the type of goods, services, or privileges donated or bartered;
and

d. Special event revenue from events, such as food festivals, foot races, and concerts. Special
event revenue shall be included in the AGR formula as revenue under LT, SS, or GRAF, as applicable.
Prorate revenue according to the percentage of use between National Forest System lands and private
land as described in the following paragraphs 5 and
6.

3. LT is the revenue from sales of alpine and nordic lift tickets and passes purchased for the
purpose of using a ski area during any time of the year, including revenue that is generated on
private land (such as from tickets sold on private land).

4. SS is the revenue from lessons provided to teach alpine or nordic skiing or other winter sports
activities, such as racing, snowboarding, or snowshoeing, including revenue that is generated on
private land (such as from tickets sold on private land).

5. Proration % is the method used to prorate revenue from the sale of ski area passes and lift
tickets and revenue from ski school operations between National Forest System lands and private
land in the ski area. Separately prorate alpine and nordic revenue with an appropriate proration
factor. Add prorated revenues together; then sum them with GRAF to arrive

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at AGR. Use one or both of the following methods, as appropriate:

a. STFP shall be the method used to prorate alpine revenue. The STFP direction contained in FSM
2715.11c effective in 1992 shall be used. Include in the calculation only uphill devices (lifts,
tows, and tramways) that are fundamental to the winter sports operation (usually those located on
both Federal and private land). Do not include people movers whose primary purpose is to shuttle
people between parking areas or between parking areas and lodges and offices.

b. Nordic trail length is the method used to prorate nordic revenue. Use the percentage of trail
length on National Forest System lands to total trail length.

6. GRAF is the revenue from ancillary facilities, including all of the holder’s or subholder’s
lodging, food service, rental shops, parking, and other ancillary operations located on National
Forest System lands. Do not include revenue that is generated on private land. For facilities that
are partially located on National Forest System lands, calculate the ratio of the facility square
footage located on National Forest System lands to the total facility square footage. Special event
revenue allocatable to GRAF shall be prorated by the ratio of use on National Forest System lands
to the total use.

7. In cases when the holder has no AGR for a given fiscal year, the holder shall pay a permit fee
of $2 per acre for National Forest System lands under permit or a percentage of the appraised value
of National Forest System lands under permit, at the discretion of the authorized officer.

B. Fee Payments. Reports and deposits shall be tendered in accordance with the following
schedule. They shall be sent or delivered to the collection officer, USDA, Forest Service, at the
address furnished by the authorized officer. Checks or money orders shall be made payable to: USDA,
Forest Service.

1. The holder shall calculate and submit an advance payment which is due by the beginning of the
holder’s payment cycle. The advance payment shall equal 20 percent of the holder’s average permit
fee for 3 operating years, when available. When past permit fee information is not available, the
advance payment shall equal 20 percent of the permit fee, based on the prior holder’s average fee
or projected AGR. For ski areas not expected to generate AGR for a given payment cycle, advance
payment of the permit fee as calculated in item A, paragraph 7 ($2 per acre for National Forest
System lands under permit or a percentage of the appraised value of National Forest System lands
under permit, at the discretion of the authorized officer) shall be made. The advance payment shall
be credited (item B, paragraph 3) toward the total ski area permit fee for the payment cycle.

2. The holder shall report sales, calculate fees due based on a tentative percentage rate, and make
interim payments each calendar month except for periods in which no sales take place and the holder
has notified the authorized officer that the operation has entered a seasonal shutdown for a
specific period. Reports and payments shall be made by the end of the month following the end of
each reportable period. Interim payments shall be credited (item B, paragraph 3) toward the total
ski area permit fee for the payment cycle.

3. Within 90 days after the close of the ski area’s payment cycle, the holder shall provide a
financial statement, including a completed permit fee information form, Form FS-2700-19a,
representing the ski area’s financial condition at the close of its business year and an annual
operating statement reporting the results of operations, including a final payment which includes
year-end adjustments for the holder and each subholder for the same period. Any balance that exists
may be credited and applied against the next payment due or refunded, at the discretion of the
permit holder.

4. Within 30 days of receipt of a statement from the Forest Service, the holder shall make any
additional payment required to ensure that the correct ski area permit fee is paid for the past
year’s operation.

5. All permit fee calculations and records of sales are subject to review or periodic audit as
determined by the authorized officer. Errors in calculation or payment shall be corrected as needed
for conformanco with those reviews or audits. In accordance with the Fee Payment Issue clause
contained in this authorization, interest and penalties shall be assessed on additional fees due as
a result of reviews or audits.

C. Correcting Errors. Correction of errors includes any action necessary to calculate the
holder’s sales or slope transport fee percentage or to make any other determination required to
calculate permit fees accurately. For fee calculation purposes, an error may include:

a. Misreporting or misrepresentation of amounts;

b. Arithmetic mistakes;

c. Typographic mistakes; or

d. Variation from generally accepted accounting principles (GAAP), when such variations are
inconsistent with the terms of this permit.

Correction of errors shall be made retroactively to the date the error was made or to the previous
audit period, whichever is more recent, and past fees shall be adjusted accordingly.

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D. Fee Payment issues.

1. Crediting of Payments. Payments shall be credited on the date received by the deposit
facility, except that if a payment is received on a non-workday, the payment shall not be credited
until the next workday.

2. Disputed Fees. Fees are due and payable by the due date. Disputed fees must be paid in
full. Adjustments will be made if dictated by settlement terms or an appeal decision.

3. Late Payments

(a) Interest. Pursuant to 31 U.S.C. 3717 et seq., interest shall be charged on any fee
amount not paid within 30 days from the date it became due. The rate of interest assessed shall be
the higher of the Prompt Payment Act rate or the rate of the current value of funds to the Treasury
(i.e., the Treasury tax and loan account rate), as prescribed and published annually or quarterly
by the Secretary of the Treasury in the Federal Register and the Treasury Fiscal Requirements
Manual Bulletins. Interest on the principal shall accrue from the date the fee amount is due.

(b) Administrative Costs. If the account becomes delinquent, administrative costs to cover
processing and handling the delinquency shall be assessed.

(c) Penalties. A penalty of 6% per annum shall be assessed on the total amount that is more
than 90 days delinquent and shall accrue from the same date on which interest charges begin to
accrue.

(d) Termination for Nonpayment. This permit shall terminate without the necessity of prior
notice and opportunity to comply when any permit fee payment is 90 calendar days from the due date
in arrears. The holder shall be responsible for the delinquent fees, as well as any other costs of
restoring the site to its original condition, including hazardous waste cleanup.

4. Administrative Offset and Credit Reporting. Delinquent fees and other charges associated with
the permit shall be subject to all rights and remedies afforded the United States pursuant to 31
U.S.C. 3711 et seq. and common law. Delinquencies are subject to any or all of the following:

(a) Administrative offset of payments due the holder from the Forest Service.

(b) If in excess of 60 days, referal to the Department of the Treasury for appropriate collection
action as provided by 31 U.S.C. 3711(g)(1).

(c) Offset by the Secretary of the Treasury of any amount due the holder, as provided by 31 U.S.C.
3720 et seq.

(d) Disclosure to consumer or commercial credit reporting agencies.

E. Access to Records. For the purpose of administering this permit (including ascertaining
that fees paid were correct and evaluating the propriety of the fee base), the holder agrees to
make all of the accounting books and supporting records to the business activities, as well as
those of sublessees operating within the authority of this permit, available for analysis by
qualified representatives of the Forest Service or other Federal agencies authorized to review the
Forest Service activities. Review of accounting books and supporting records shall be made at dates
convenient to the holder and reviewers. Financial information so obtained shall be treated as
confidential as provided in regulations Issued by the Secretary of Agriculture.

The holder shall retain the above records and keep them available for review for 5 years after the
end of the year involved, unless disposition is otherwise approved by the authorized officer in
writing.

G. Accounting Records. The holder shall follow Generally Accepted Accounting Principles or
Other Comprehensive Bases of Accounting acceptable to the Forest Service in recording financial
transactions and in reporting results to the authorized officer. When requested by the authorized
officer, the holder at its own expense, shall have the annual accounting reports audited or
prepared by a licensed independent accountant acceptable to the Forest Service. The holder shall
require sublessees to comply with these same requirements. The minimum acceptable accounting system
shall include:

1. Systematic internal controls and recording by kind of business the gross receipts derived from
all sources of business conducted under this permit. Receipts should be recorded daily and, if
possible, deposited into a bank account without reduction by disbursements. Receipt entries shall
be supported by source documents such as cash-register tapes, sale invoices, rental records, and
cash accounts from other sources.

2. A permanent record of investments in facilities (depreciation schedule), and current source
documents for acquisition costs of capital items.

8

 

3. Preparation and maintenance of such special records and accounts as may be specified by the
authorized officer.

VII. TRANSFER AND SALE

A. Subleasing. The holder may sublease the use of land and improvements covered under this
permit and the operation of concessions and facilities authorized upon prior written notice to the
authorized officer. The Forest Service reserves the right to disapprove subleasees. In any
circumstance, only those facilities and activities authorized by this permit may be subleased. The
holder shall continue to be responsible for compliance with all conditions of this permit by
persons to whom such premises may be sublet. The holder may not sublease direct management
responsibility without prior written approval by the authorized officer.

B. Notification of Sale. The holder shall immediately notify the authorized officer when a
sale and transfer of ownership of the permitted improvements is planned.

C. Divestiture of Ownership. Upon change in ownership of the facilities authorized by this
permit, the rights granted under this authorization may be transferred to the new owner upon
application to and approval by the authorized officer. The new owner must qualify and agree to
comply with, and be bound by the terms and conditions of the authorization. In granting approval,
the authorized officer may modify the terms, conditions, and special stipulations to reflect any
new requirements imposed by current Federal and state land use plans, laws, regulations or other
management decisions.

VIII. REVOCATION AND SUSPENSION

A. Revocation and Suspension. The Forest Service may suspend or revoke this permit in whole
or part:

1. For noncompliance with Federal, State, or local laws and regulations;

2. For noncompliance with the terms of this permit;

3. For failure of the holder to exercise the privileges granted by this permit;

4. With the consent of the holder; or

5. At the discretion of the authorized officer for specific and compelling reasons in the public
interest.

B. Opportunity to Take Corrective Action. Prior to revocation or suspension under clause
VIII.A, the authorized officer shall give the holder written notice of the grounds for each action
and a reasonable time, not to exceed 90 days, to complete the corrective action prescribed by the
authorized officer.

C. REVOCATION FOR SPECIFIC AND COMPELLING REASONS IN THE PUBLIC INTEREST.

1. If during the term of this permit the authorized officer determines that specific and compelling
reasons in the public interest require revocation of this permit, this permit shall be revoked
after 90 days written notice to the holder, provided that the authorized officer may prescribe a
shorter notice period if justified by the public interest. The Forest Service shall then have the
right to purchase the holder’s authorized improvements, remove the holder’s authorized
improvements, or to require the holder to relocate or remove them. The Forest Service shall be
obligated to pay the lesser of (1) the cost of relocation and damages resulting from their
relocation that are caused by the Forest Service or (2) the value of the authorized improvements as
determined by the Forest Service through an appraisal of their replacement cost, less an allowance
for physical depreciation. If that amount is fixed by mutual agreement between the authorized
officer and the holder, that amount shall be accepted by the holder in full satisfaction of all
claims against the United States under this clause. If mutual agreement is not reached, the
authorized officer shall determine the amount to be paid, which shall become part of the revocation
decision. A payment made pursuant to this clause is subject to the availability of appropriations.
Nothing in this permit implies that Congress will appropriate funds to cover a deficiency in
appropriations.

2. If revocation in the public interest occurs after the holder has received notification that a
new permit will not be issued following expiration of this permit, the amount of damages shall be
adjusted as of the date of revocation by multiplying the replacement cost by a fraction which has
as the numerator the number of full months remaining in the term of the permit as of the date of
revocation (measured from the date of the revocation notice) and as the denominator the total
number of months in the original term of this permit.

D. Suspension. The authorized officer may immediately suspend this permit, in whole or in part,
when necessary to protect public health, safety, or the environment. The suspension decision must
be in writing. Within 48 hours of the request of the holder, the superior of the authorized officer
shall arrange for an on-the-ground review of the adverse conditions with the holder. Following this
review the superior shall take prompt action to affirm, modify, or cancel the suspension.

IX. RENEWAL

A. Renewal. The authorized use may be renewed. Renewal requires the following conditions: (1) the
land use allocation is

9

 

compatible with the Forest Land and Resource Management Plan; (2) the site is being used for
the purposes previously authorized and; (3) the enterprise is being continually operated and
maintained in accordance with all the provisions of the permit. In making a renewal, the authorized
officer may modify the terms, conditions, and special stipulations.

X. RIGHTS AND RESPONSIBILITIES UPON TERMINATION OR NONRENEWAL

A. Removal of Improvements. Except as provided in Clause VIII. A, upon termination or
revocation of this special use permit by the Forest Service, the holder shall remove within a
reasonable lime as established by the authorized officer, the structures and improvements, and
shall restore the site to a condition satisfactory to the authorized officer, unless otherwise
waived in writing or in the authorization. If the holder fails to remove the structures or
improvements within a reasonable period, as determined by the authorized officer, they shall become
the property of the United States without compensation to the holder, but that shall not relieve
the holder’s liability for the removal and site, restoration costs.

XI. RESOURCE PROTECTION

A. COMPLIANCE WITH ENVIRONMENTAL LAWS. The holder shall in connection with the use and
occupancy authorized by this permit comply with all applicable federal, state, and local
environmental laws and regulations, including but not limited to those established pursuant to the
Resource Conservation and Recovery Act, as amended, 42 U.S.C. 6901 et seq., the Federal Water
Pollution Control Act, as amended, 33 U.S.C 1251 et seq., the Oil Pollution Act, as amended, 33
U.S.C, 2701 et seq., the Clean Air Act, as amended, 42 U.S.C. 7401 et seq., the CERCLA, as amended,
42 U.S.C. 9601 et seq,, the Toxic Substances Control Act, as amended, 15 U.S.C. 2601 et seq., the
Federal Insecticide, Fungicide, and Rodenticide Act, as amended, 7 U.S.C, 136 et seq., and the Safe
Drinking Water Act, as amended, 42 U.S.C. 300f et seq.

B. WATER POLLUTION. No waste or by-product shall be discharged into water if it contains
any substance in concentrations which will result in harm to fish and wildlife, or to human water
supplies. Storage facilities for materials capable of causing water pollution, if accidentally
discharged, shall be located so as to prevent any spillage into waters or channels leading into
water that would result in harm to fish and wildlife or to human water supplies.

C. ESTHETICS. The holder shall protect the scenic esthetic values of the permit area and
the adjacent land to the greatest extent possible during construction, operation, and maintenance
of the authorized improvements.

D. VANDALISM. The holder shall take reasonable measures to prevent and discourage vandalism
or disorderly conduct and when necessary shall contact the appropriate law enforcement officer to
address these problems.

E. HERBICIDE AND PESTICIDE USE. Herbicides and pesticides may not be used outside of
buildings to control undesirable woody and herbaceous vegetation, aquatic plants, insects, rodents,
or fish without the prior written approval of the authorized officer. A request for approval of
planned uses of pesticides shall be submitted annually by the holder on the due date established by
the authorized officer. The report shall cover a 12-month period of planned use beginning 3 months
after the reporting date. Information essential for review shall be provided in the form specified.
Exceptions to this schedule may be allowed, subject to emergency request and approval, only when
unexpected outbreaks of pests require control measures which were not anticipated at the time an
annual report was submitted. Only those materials registered by the U.S. Environmental Protection
Agency for the specific purpose planned shall be authorized for use on National Forest System
lands. Label instructions and all applicable laws and regulations shall be strictly followed in the
application of pesticides and disposal of excess materials and containers.

F. ARCHAEOLOGICAL AND PALEONTOLOGICAL DISCOVERIES. The holder shall immediately notify the
authorized officer of all antiquities or other objects of historic or scientific interest,
including but not limited to historic or prehistoric ruins, fossils, or artifacts discovered in
connection with the use and occupancy authorized by this permit. The holder shall leave these
discoveries intact and in place until directed otherwise by the authorized officer. Protective and
mitigative measures specified by the authorized officer shall be the responsibility of the holder.

G. NATIVE AMERICAN GRAVES PROTECTION AND REPATRIATION (NAGPRA). In accordance with 25 U.S.C.
3002 (d) and 43 CFR 10.4, if the holder inadvertently discovers human remains, funerary objects,
sacred objects, or objects of cultural patrimony on National Forest System lands, the holder shall
immediately cease work in the area of the discovery and shall make a reasonable effort to protect
and secure the items. The holder shall immediately notify the authorized officer by telephone of
the discovery and shall follow up with written confirmation of the discovery. The activity that
resulted in the inadvertent discovery may not resume until 30 days after the authorized officer
certifies receipt of the written confirmation, if resumption of the activity is otherwise lawful,
or at any time if a binding written agreement has been executed between the Forest Service and the
affiliated Indian tribes that adopts a recovery plan for the human remains and objects.

H. PROTECTION OF HABITAT OF THREATENED, ENDANGERED, AND SENSITIVE SPECIES. The location of
sites within the permit area needing special measures for protection of plants or animals listed as
threatened or endangered under the Endangered Species Act (ESA) of 1973, 16 U.S.C. 531 et seq., as
amended, or as sensitive by the Regional Forester under Forest Service Manual (FSM) 2670, pursuant
to consultation conducted under section 7 of the ESA, may

10

 

be identified on the ground or shown on a separate map. The map shall be attached to this permit as
an appendix. The holder shall take any protective and mitigative measures specified by the
authorized officer, If protective and mitigative measures prove inadequate, if other sites within
the permit area containing threatened, endangered, or sensitive species are discovered, or if new
species are listed as threatened or endangered under the ESA or as sensitive by the Regional
Forester under the FSM, the authorized officer may specify additional protective and mitigative
measures. Discovery of these areas by the holder or the Forest Service shall be promptly reported
to the other party.

I.
CONSENT TO STORE HAZARDOUS MATERIALS. The holder shall not store any hazardous materials
at the site without prior written approval from the authorized officer. This approval shall not be
unreasonably withheld. If the authorized officer provides approval, this permit shall include (or
in the case of approval provided after this permit is issued, shall be amended to include) specific
terms addressing the storage of hazardous materials, including the specific type of materials to be
stored, the volume, the type of storage, and a spill plan. Such terms shall be proposed by the
holder and are subject to approval by the authorized officer.

1. If the holder receives consent to store hazardous material, the holder shall identify to the
Forest Service any hazardous material to be stored at the site. Such identification information
shall be consistent with column (1) of the table of hazardous materials and special provisions
enumerated at 49 CFR 172.101 whenever the hazardous material appears in that table. For hazard
communication purposes, the holder shall maintain Material Safety Data Sheets for any stored
hazardous chemicals, consistent with 29 CFR 1910.1200(c) and (g). In
addition, all hazardous
materials stored by the holder shall be used, labeled, stored, transported, and disposed of in
accordance with all applicable federal, state, and local laws and regulations.

2. If hazardous materials are used or stored at the site, the authorized officer may require the
holder to deliver and maintain a surety bond in accordance with clause IV.K.

3. The holder shall not release any hazardous material as defined in clause IV.G onto land or into
rivers, streams, impoundments, or natural or man-made channels leading to them. All prudent and
safe attempts must be made to contain any release of these materials. The authorized officer may
specify conditions that must be met, including conditions more stringent than those imposed by
federal, state, and local regulations, to prevent releases and protect natural resources.

J. CLEANUP AND REMEDIATION

1. The holder shall immediately notify all appropriate response authorities, including the National
Response Center and the Forest Service authorized officer or the authorized officer’s designated
representative, of any oil discharge or of the release of a hazardous material in the permit area
in an amount greater than or equal to its reportable quantity, in
accordance with 33 CFR Part 153,
Subpart B, and 40 CFR Part 302, For the purposes of this requirement, “oil” is defined by section
311(a)(1) of the Clean Water Act, 33 U.S.C. 1321(a)(1). The holder shall immediately notify the
authorized officer or the authorized officer’s designated representative of any release or
threatened release of any hazardous material in or near the permit area which may be harmful to
public health or welfare or which may adversely affect natural resources on federal lands.

2. Except
with respect to any federally permitted release as that term is defined under section 101(10) of CERCLA, 42 U.S.C. 9601(10), the holder shall clean up or otherwise remediate any release,
threat of release, or discharge of hazardous materials that occurs either in the permit area or in
connection with the holder’s activities in the permit area, regardless of whether those activities
are authorized under this permit. The holder shall perform cleanup or remediation immediately upon
discovery of the release, threat of release, or discharge of hazardous materials. The holder shall
perform the cleanup or remediation to the satisfaction of the authorized officer and at no expense
to the United States. Upon revocation or termination of this permit, the holder shall deliver the
permit area to the Forest Service free and clear of contamination.

K. CERTIFICATION UPON REVOCATION OR TERMINATION. If the holder uses or stores hazardous
materials at the site, upon revocation or termination of this permit the holder shall provide the
Forest Service with a report certified by a professional or professionals acceptable to the Forest
Service that the permit area is uncontaminated by the presence of hazardous materials and that
there has not been a release or discharge of hazardous materials upon the permit area, into surface
water at or near the permit area, or into groundwater below the permit area during the term of the
permit. If a release or discharge has occurred, the professional or professionals shall document
and certify that the release or discharge has been fully remediated and that the permit area is in
compliance with all applicable federal, state, and local laws and regulations.

L. ENVIRONMENTAL SITE REPORT. An environmental site report prepared by the holder prior to
May 31, 2011 documenting the known history of the permit area with regard to the storage, release,
or disposal of hazardous materials is attached to and made a part of this permit as Appendix B.
Upon revocation or termination of this permit, the holder shall prepare another environmental site
report, which shall document the environmental condition of the permit area at that time and
describe any storage, release, or disposal of hazardous materials during the holder’s use and
occupancy of the

11

 

permit area. Both environmental site reports prepared by the holder shall be subject to written
approval by the authorized officer. A comparison of the two reports shall assist the authorized
officer in determining whether any environmental cleanup or restoration is required. Any cleanup or
restoration shall be completed promptly by the holder in accordance with all applicable federal,
state, and local laws and regulations.

M. WATER WELLS AND ASSOCIATED PIPELINES.

1. Other Jurisdictional Requirements. Clause XII.F. governs water rights and water
facilities. The holder shall obtain all required state and local water permits, licenses,
registrations, certificates, or rights and shall provide a copy of them to the authorized officer.
For new wells, this information shall be provided prior to disturbing National Forest System lands
for the purpose of water use or development.

2. Well
Construction or Development. For new or reconstruction of existing wells, the
holder shall prepare a well construction and development plan and submit it to the authorized
officer for approval. The well development and construction plan must have prior written approval
from the authorized officer before well construction or development is initiated. The holder shall
follow applicable federal, state, and local standards for design, construction, and development of
new wells or reconstruction of existing wells. If such standards do not exist, the holder shall
follow applicable standards issued by the American Society for Testing and Materials (ASTM),
American Water Works Association (AWWA), or National Ground Water Association (NGWA). The
construction and development plan must identify all potential sources for any proposed water
injection during well construction or development, Only non-chlorinated, potable water may be
injected during construction or development of wells to be used for monitoring or water withdrawal.
Copies of all documentation for drilling, constructing, or developing wells, Including all
drilling, boring, and well construction logs, shall be provided to the authorized officer within 60
days of completion of work.

3. Water Conservation Plan. The holder shall prepare and submit for written approval by the
authorized officer a water conservation plan utilizing appropriate strategies to limit the amount
of water removed from National Forest System lands.

4. Well Decommissioning. The holder shall properly decommission and abandon all wells that
are no longer needed or maintained in accordance with applicable federal, state, and local
standards for water well abandonment. If such standards do not exist, the holder
shall follow applicable standards issued by the ASTM, AWWA, or NGWA. At least 30 days prior to
initiation of well decommissioning, the holder shall submit a well decommissioning plan to the
authorized officer. The well decommissioning plan shall have written approval from the authorized
officer before well decommissioning is initiated. All documentation of well decommissioning shall
be provided to the authorized officer within 60 days of completion of the work.

XII. MISCELLANEOUS PROVISIONS

A. Members of Congress. No Member of or Delegate to Congress, or Resident Commissioner
shall be admitted to any share or part of this agreement or to any benefit that may arise herefrom
unless it is made with a corporation for its general benefit.

B.
Inspection, Forest Service. The Forest Service shall monitor the holder’s operations and
reserves the right to inspect the permitted facilities and improvements at any time for compliance
with the terms of this permit. Inspections by the Forest Service do not relieve the holder of
responsibilities under other terms of this permit.

C. Regulating Services and Rates. The Forest Service shall have the authority to check and
regulate the adequacy and type of services provided the public and to require that such services
conform to satisfactory standards. The holder may be required to furnish a schedule of prices for
sales and services authorized by the permit. Such prices and services may be regulated by the
Forest Service: Provided, that the holder shall not be required to charge prices significantly
different than those charged by comparable or competing enterprises.

D. Advertising. The holder, in advertisements, signs, circulars, brochures, letterheads,
and like materials, as well as orally, shall not misrepresent in any way either the accommodations
provided, the status of the permit, or the area covered by it or the vicinity. The fact that the
permitted area is located on the National Forest shall be made readily apparent in all of the
holder’s brochures and print advertising regarding use and management of the area and facilities
under permit.

E. Bonding. The authorized officer may require the holder to furnish a bond or other
security to secure all or any of the obligations imposed by the terms of the authorization or any
applicable law, regulation, or order.

Bonds, Performance: As a further guarantee of the faithful performance of the provisions of terms
and conditions of this permit, the holder agrees to deliver and maintain a surety bond or other
acceptable security in the amount determined when applicable, Should the sureties or the bonds
delivered under this permit become unsatisfactory to the Forest Service, the holder shall, within
thirty (30) days of demand, furnish a new bond with surety, solvent and satisfactory to the Forest
Service, in lieu of a surety bond, the holder may deposit into a Federal depository, as directed by
the Forest Service, and maintain therein, cash in the amounts provided for above, or negotiable
securities of the United States

12

 

having a market value at the time of deposit of not less than the dollar amounts provided above.

The holder’s surety bond shall be released, or deposits in lieu of a bond, shall be returned thirty
(30) days after certification by the Forest Service that priority Installations under the
development plan are complete, and upon furnishing by the holder of proof satisfactory to the
Forest Service that all claims for labor and material on said installations have been paid or
released and satisfied. The holder agrees that all moneys deposited under this permit may, upon
failure on his or her part to fulfill all and singular the requirements herein set forth or made a
part hereof, be retained by the United States to be applied to satisfy obligations assumed
hereunder, without prejudice whatever to any rights and remedies of the United States.

Prior to undertaking additional construction or alteration work not provided for in the above terms
and conditions or when the improvements are to be removed and the area restored, the holder shall
deliver and maintain a surety bond in an amount set by the Forest Service, which amount shall not
be in excess of the estimated loss which the Government would suffer upon default in performance of
this work.

F. Water Use Facilities.

1.
Water Use Facilities. The National Forest System (“NFS”) land which is the
subject of this permit is hereinafter referred to as the “permitted NFS land.” The authorization of
facilities to divert, store, or convey water on the permitted National Forest System (NFS) land
(“water facilities”) in conjunction with water rights acquired by the holder is for the purpose of
operating a winter or year-round resort and related facilities under this permit. If use of the
water or the water facilities ceases, the authorization to use the permitted NFS land for such
water facilities will also cease. The United States reserves the right to place conditions on the
installation, operation, maintenance and removal of these water facilities necessary to protect
public property, public safety, and natural resources on the permitted NFS land in compliance with
applicable laws, provided, however, such conditions shall not permit the imposition of bypass flows
on water transported to the permitted NFS land from points of diversion or storage that arise off
of the permitted NFS land.

2. Water Rights. This permit does not confer any water rights on the holder. Water rights
must be acquired by the holder under state law.

3. Future Applications and Revocation. After June 2004, any right to divert water from the
permitted NFS land where the use of such water is on the same permitted NFS land shall be applied
for and held in the name of the United States and the holder (hereinafter called the “joint water
rights”). This provision shall not apply to water rights that are acquired by the permit holder
from a source off of the permitted NFS land and transferred to a point of diversion or storage on
the permitted NFS land. During the term of the permit and any reissuance thereafter, the permit
holder shall be responsible for maintaining such joint water rights, and shall have the right to
make any applications or other filings as may be necessary to maintain and protect such joint water
rights. In the event of revocation of this permit, the United States shall succeed to the sole
ownership of such joint water rights. All joint water rights subject to this clause are listed
below (if none, write).

	 	 	 	 	 	 	 

	State ID #

	 	Owner
	 	Type or Basis
	 	Purpose of Use
	 
	 	 	 	 	 	 
	 

	 	 	 	NONE	 	 

G. Current Addresses. The holder and the Forest Service shall keep each informed of current
mailing addresses including those necessary for billing and payment of fees.

H. Identification of Holder. Identification of the holder shall remain sufficient so that
the Forest Service shall know the true identity of the entity.

Corporation Status Notification:

1. The holder shall notify the authorized officer within fifteen (15) days of the following
changes:

a. Names of officers appointed or terminated.

b. Names of stockholders who acquire stock shares causing their ownership to exceed 50 percent of
shares issued or otherwise acquired, resulting in gaining controlling interest in the corporation.

2. The holder shall furnish the authorized officer:

a. A copy of the articles of incorporation and bylaws.

b. An authenticated copy of a resolution of the board of directors specifically authorizing a
certain individual or individuals to represent the holder in dealing with the Forest Service.

c. A list of officers and directors of the corporation and their addresses.

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d. Upon
request, a certified list of stockholders and amount of stock owned by each.

e. The authorized officer may require the holder to furnish additional information as set forth in
36 CFR 251.54(e)(1)(iv).

 Partnership Status Notification:

The holder shall notify the authorized officer within fifteen (15) days of the following changes.
Names of the individuals involved shall be included with the notification.

1. Partnership makeup changes due to death, withdrawal, or addition of a partner.

2. Party
or parties assigned financed interest in the partnership by existing partner(s).

3. Termination, reformation, or revision of the partnership agreement.

4. The acquisition of partnership interest, either through purchase of an interest from an existing
partner or partners, or contribution of assets, that exceeds 50 percent of the partnership
permanent investment.

I. Superior Clauses. In the event of any conflict between any of the preceding printed
clauses or any provision thereof, and any of the following clauses or any provision thereof, the
preceding clauses shall control.

J. Superseded Permit. This permit replaces a special use permit Issued to: Meadow Green —
Wildcat Corporation., Auth ID AND 17, on July 13, 2001

K. Disputes. Appeal of any provisions of this authorization or any requirements thereof
shall be subject to the appeal regulations at 36 CFR 251, Subpart C, or revisions thereto. The
procedures for these appeals are set forth in 36 CFR 251 published in the Federal Register at 54 FR
3362, January 23,1989.

L. The holder shall be responsible for the prevention and control of noxious weeds and/or exotic
plants of concern on the area authorized by this authorization and shall provide prevention and
control measures prescribed by the Forest Service. Noxious weeds/exotic plants of concern are
defined as those species recognized by the (county weed authority/national forest) in which the
authorized use is located.

The holder shall also be responsible for prevention and control of noxious weed/exotic plant
infestations which are not within the authorized area, but which are determined by the Forest
service to have originated with the authorized area.

When determined to be necessary by the authorized officer, the holder shall develop a site-specific
plan for noxious weed/exotic plant prevention and control, Such plan shall be subject to Forest
Service approval. Upon Forest Service approval, the noxious wed/exotic plant prevention and control
plan shall become a part of this authorization, and its provisions shall be enforceable under the
terms of this authorization.

M.
Explosives (B29).

1. Only exploding bridgeware (EBWs) shall he used for blasting except for hand charging of snow
release zones.

2. In the use of explosives, the holder shall exercise the utmost care not to endanger life or
property and shall comply with the requirements of the Forest Service. The holder shall be
responsible for any and all damages resulting from the use of explosives and shall adopt
precautions that will prevent damage to surrounding objects. The holder shall furnish and erect
special signs to warn the public of blasting operations. Such signs shall be placed and
maintained so as to be clearly evident to the public during all critical periods of the blasting
operations, and shall include a warning statement to have radio transmitters turned off.

3. All storage places for explosives shall be marked “DANGEROUS-EXPLOSIVES.” The method of
storing and handling explosives shall conform to procedures contained in the “Blasters Guide
EM-7100-14,” and Title 27, Code of Federal Regulations, parts 1 to 199, Alcohol, Tobacco
Products, and Firearms (Bureau of Alcohol, Tobacco and Firearms (BATF)).

4. When using explosives, the holder shall adopt precautions which will prevent damage to
landscape features and other surrounding objects. When directed by the Forest officer in charge,
trees within an

14

 

area designated to be cleared shall be left as a protective screen for
surrounding vegetation during blasting operations. Trees so left shall be removed and disposed
of after blasting has been completed. When necessary, and at any point of special danger, the
holder shall use suitable mats or some other approved method to smother blasts.

N. Dam Safety (B37).

	1.	 	Definitions. The following definitions apply to this clause:

	 	a. Qualified Engineer. An engineer authorized to practice engineering in the field of dams in
the State where the dam is located, either by professional registration as provided by State
law or by reason of employment by the State or Federal Government.
	 
	 	b. Dam Failure. Catastrophic event characterized by the sudden, rapid, and uncontrolled
release of impounded water. It is recognized that there are lesser degrees of failure and
that any malfunction or abnormality outside the design assumptions and parameters which
adversely affect a dam’s primary function of impounding water may also be considered a
failure.
	 
	 	c. Rehabilitation or Modification. Repair of major structure deterioration to restore
original condition; alteration of structures to meet current design criteria, improve dam
stability, enlarge reservoir capacity, or increase spillway and outlet works capacity;
replacement of equipment.
	 
	 	d. Hazard Potential. The classification of a dam based on the potential for loss of life or
property damage that could occur if the structure failed (FSM 7500).
	 
	 	e. Emergency Action Plan. Formal plan of procedures to prevent or reduce loss of life and
property that could occur if the structure failed. The plan does not include flood plain
management for the controlled release of floodwaters for which the project is designed.

2. Dam Classification. The dam constructed pursuant to this authorization shall be classified
according to its height and storage capacity (water debris or both) as well as its hazard
potential as follows:

     Height
and Storage Capacity (A, B, C, or D): C

     Hazard Potential (Low, Moderate, High): Low

Classification criteria are contained in FSM 7511, which the Forest Service may amend from time
to time.

The provisions of sections 5 and 8 of this clause apply only to dams classified as high hazard,
or as otherwise may be specifically provided for in this authorization to address special or
unique circumstances.

The hazard potential of the dam shall be reassessed at least every five years by a qualified
engineer retained by the holder, and this information made available to the authorized officer.
The Forest Service may change the hazard potential at any time based on changed conditions or new
information.

3. Construction, Inspection, Certification, and Project Files. For construction, rehabilitation
or improvement, the holder shall provide for inspection by a qualified engineer to ensure
adequate control of the work being performed. At a minimum, the qualified engineer shall maintain
a daily inspection diary, descriptions of design changes, and records of construction material
and foundation tests. Upon completion of construction, rehabilitation, or improvement, the holder
shall forward to the Forest Service a statement from the qualified engineer responsible for
inspection certifying that the works were built in accordance with the approved plans and
specifications, or approved revisions thereto. No water shall be impounded until approval is
given by the authorized officer.

All design notes, as-built plans, and the aforementioned diaries and records shall be maintained
in a project file by the holder for the duration of this authorization, and shall be available to
the Forest Service or other inspection personnel (not applicable to debris retention dams).

15

 

4. Dam Operation and Maintenance Plans. Dam operation and maintenance plans shall be prepared
during the design phase for new dams. The plan(s) shall, as a minimum, describe operating
requirements and procedures to be followed for the operation of the structure; routine or recurring
maintenance required; record keeping to be performed for operation and maintenance; and individuals
responsible for implementing the plans. At the time of the operation and maintenance inspection,
the plan shall be reviewed and amended as needed by the individual responsible for implementation
and the engineer performing any inspection. No plans or amendments thereto shall be valid until
approved by the authorized officer.

5. Dam Emergency Action Plan. The following provisions are required for certain hazard
classifications identified in section 2. The holder shall, during the design phase, prepare an
emergency action plan which will include, but not be limited to:

	 	a.	 	Actions to be taken upon discovery of an unsafe condition or impending failure situation to
prevent or delay dam failure, and reduce damage or loss of life from subsequent failure.
	 
	 	b.	 	Procedures for notification of law enforcement, civil preparedness, and Forest Service
personnel.
	 
	 	c.	 	Procedures for notifying persons in immediate danger of losing life or properly.
	 
	 	d.	 	Maps delineating the area which would be inundated by water, debris, or both in the event of
dam failure.
	 
	 	e.	 	The names of those individuals responsible for activating the plan and carrying out the
identified actions.

In preparing the emergency action plan, the holder shall consult and cooperate with appropriate law
enforcement and civil preparedness personnel, who may be responsible for implementing all or part
of the plan. Emergency action plans shall be reviewed and updated annually, and tested at intervals
not exceeding five years.

6. Inspection and Maintenance of Dams. The holder shall have the dam and appurtenant structures
inspected by a qualified engineer to determine the state of operation and maintenance at least
every 1 year(s). An inspection shall also be made following earthquakes, major storms, or overflow
of spillways other than the service spillway. Two copies of the inspection report shall be provided
to the authorized officer within 30 days of the date of inspection.

Repairs or operational changes recommended by the inspecting engineer shall be made by the holder
within a reasonable period of time following the inspection, but in no event later than one year
from the inspection (unless a longer period of repairs is authorized in writing, or a shorter
period is required when such repairs are deemed by the authorized officer as immediately, required
for reasons of public safety). Upon request by the authorized officer, the holder shall provide a
plan of action outlining planned time and methods

for performing said repairs or operational changes, and notify the authorized officer when actions
are completed. The authorized officer shall specify a completion date for corrective work: If
corrective action is not taken by the date specified by the authorized officer, the Forest Service
shall have corrective action taken and the holder shall be responsible for all costs including
legal and court costs.

7. Forest Service Inspection of Dams. The holder shall allow inspection of the dam and appurtenant
structures at any time by the authorized officer. Any condition adversely affecting or which could
adversely affect the operation of the facility; safety of the structure or the public, or
surrounding lands and resources shall, upon written notice, be corrected or changed by the holder
at the holder’s expense. The authorized officer shall specify a completion date for corrective
work. If corrective action is not taken by the date specified by the authorized officer, the Forest
Service shall have corrective action taken and the holder shall be responsible for all costs
including legal and court costs. A copy of the Forest Service inspection report shall be provided
to the holder.

An inspection performed by the Forest Service does not relieve the holder of the responsibility of
ensuring that inspections are made in accordance with section 6 of this clause.

16

 

8. Dam Safety Evaluations. This provision is required for certain hazard classifications
identified in section 2.

Beginning in the year 2015 and at 5-year intervals thereafter, the holder shall have a formal dam
safety evaluation performed by a qualified engineer to verify the safety and integrity of the dam
and appurtenant structures. The evaluation will include, but is not limited to, a detailed field
inspection of the dam and appurtenant structures and a review of all pertinent documents, such as
investigation, design, construction, instrumentation, operation, maintenance, and inspection
records. The evaluation shall be based on current accepted design criteria and practices. The
holder shall provide two copies of the evaluation report to the authorized officer and Regional
Engineer. Based on this report, the authorized officer may require the holder to perform
additional evaluations pursuant to such standards as the officer may define and may require
rehabilitation or modification of the structure within a reasonable time.

9. Right of Action To Abate Emergency Situations. In situations where the authorized officer
determines on the available facts that there is danger of a dam failure for any reason, such
officer may exercise
discretionary authority to enter upon the structure and appurtenances authorized herein and take
such actions as are necessary to abate or otherwise prevent a failure. Such actions include, but
are not limited to, lowering the level of the impounded waters utilizing existing structures or
by artificial breach of the dam. In the event that such actions are taken, the United States
shall not indemnify or otherwise be liable to the holder for losses or damages, including losses
or damages to the structure or the value of impounded waters. The holder shall be responsible
for all costs including legal and court costs. The failure of the Forest Service to exercise any
discretion under this provision shall not be a violation of any duty by the United States, and
shall not relieve the holder of any and all liability for damages in the event of a dam failure.

10. Liability. The activities permitted by this authorization shall be deemed a high risk use
and occupancy. Sole responsibility for the safety of the dam and associated facilities and any
liability resulting therefrom shall be on the holder and his successors, agents, or assigns.
Pursuant to 36 CFR 251.56(d), or its replacement, the holder shall be liable for injury, loss,
or damage resulting from this authorization regardless of the holder’s fault or negligence.
Maximum strict liability shall not exceed $1,000,000.00 except as that amount may be changed in
the aforementioned regulations.

In
addition to all waivers and limitations on liability of the United States under this
authorization, the provisions of 33 U.S.C. 702(c) shall apply to any damages from or by floods
or flood waters at any place.

O. Drinking Water Systems (B38).

1. The holder, as the water supplier and owner or operator of the drinking water system, is
responsible for compliance with all applicable Federal, State, and local drinking water laws and
regulations for the operation and maintenance of a public water system. This includes, but is
not limited to, developing, operating, and maintaining the system, and conducting drinking water
testing and taking the appropriate corrective and follow-up actions in accordance with Federal,
State, and any other applicable requirements. For the purposes of this authorization, public
water systems are defined in the Safe Drinking Water Act, as amended (48. U.S.C. 300f et seq.),
and in the National Primary Drinking Water Regulations, Title 40, Code of Federal Regulations,
part 141 (40 CFR part 141), or by State regulations if more stringent.

2. When the permit holder operates Federally owned systems (for example, when the permit is
authorized under the Granger-Thye Act), the holder shall meet additional requirements for public
and nonpublic water systems consistent with FSM 7420. Requirements under FSM 7420 applicable to
the permit holder are set forth in an appendix to the permit entitled “Operation of Federally
Owned Drinking Water Systems” (Form FS-2700-4h-Appendix F).

3. For Federally owned systems, the holder shall notify and consult with the Forest Service
within 24 hours or on the next business day after notification by the laboratory of a sample
that tests positive for microbiological contamination. The holder shall notify and consult with
the Forest Service within 48 hours of notification of a maximum contaminant level violation or
an acute violation.

17

 

4. The holder shall retain all records as required by applicable laws and regulations. The
holder agrees to make the records available to the Forest Service and to any other regulatory
agency authorized to review Forest Service activities. Copies of microbiological test results
for Federally owned water systems shall be forwarded monthly to the Forest Service by the 15th
of the month following the sampling date. Copies of other required records for Federally owned
systems shall be forwarded annually to the Forest Service within 15 days of the end of the
operating season for seasonal sites or within 15 days of the end of the calendar year for
year-round operations. The holder shall surrender all records for a Federally owned system to
the Forest Service upon permit termination or revocation.

5. For Federally owned systems, the holder shall provide the name of the water system operator
in writing to the Forest Service and notify the authorized officer within 72 hours of a change
in personnel.

P.
Removal and Planting of Vegetation and Other Resources (D5). The holder shall obtain
prior written approval from the authorized officer before removing or altering vegetation or other
resources. The holder shall obtain prior written approval from the authorized officer before
planting trees, shrubs, or other vegetation within the authorized area.

Q. Revegetation of Ground Cover and Surface Restoration (D9). The holder shall be
responsible for prevention and control of soil erosion and gullying on lands covered by this
authorization and adjacent thereto, resulting from construction, operation, maintenance, and
termination of the authorized use. The holder shall so construct permitted improvements to avoid
the accumulation of excessive heads of water and to avoid encroachment on streams. The holder shall
revegetate or otherwise stabilize all ground where the soil has been exposed as a result of the
holder’s construction, maintenance, operation, or termination of the authorized use and shall
construct and maintain necessary preventive measures to supplement the vegetation.

R. Fire-Control Plan (F20). The holder shall prepare a fire plan for approval by the
authorized officer which shall set forth in detail the plan for prevention, reporting, control, and
extinguishing of fires on the authorized areas and within the holder’s area of responsibility
defined on an attached map. Such plans shall be reviewed and revised at intervals of not more than
three (3) years.

S. Gambling (X24). Gambling or gambling machines or devices will not be permitted on
National Forest System lands regardless of whether or not they are lawful under State law or county
ordinances.

T. Liquor Sales Authorized (X26). The sale of intoxicating beverages is allowed by this
authorization, contingent upon a valid State license for the sale or serving of alcoholic
beverages.

18

 

THIS PERMIT IS ACCEPTED SUBJECT TO ALL OF ITS TERMS AND CONDITIONS:

	 	 	 	 	 

	ACCEPTED:
	 	 	 	 
	 
	 	/s/ Steve Mueller 	 	 
	WC Acquisition Corp

	 	Steve Mueller, CFO
	 	11/19/10
	 
	HOLDER NAME AND SIGNATURE

	 	 	 	DATE
	 
	 	 	 	 
	APPROVED:
	 	 	 	 
	 
	 	 	 	 
	/s/ Thomas Wagner

	 	 	 	November 19, 2010
	AUTHORIZED OFFICER SIGNATURE

	 	Thomas Wagner, WMNF Forest Supervisor	 	DATE

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor,
and a person is not required to respond, to a collection of information unless it displays a valid
OMB control number. The valid OMB control number for this information collection is 0596-0082.
The time required to complete this information collection is estimated to average 1 hour per
response, including the time for reviewing instructions, searching existing data sources, gathering
and maintaining the data needed, and completing and reviewing the collection of Information.

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and
activities on the basis of race, color, national origin, age, disability, and, where applicable,
sex, marital status, familial status, parental status, religion, sexual orientation, genetic
information, political beliefs, reprisal, or because all or part or an individual’s income is
derived from any public assistance. (Not all prohibited bases apply
to all programs.) Persons with
disabilities who require alternative means for communication of program information (Braille, large
print, audiotape, etc.) should contact USDA’s TARGET Center at
202-720-2800 (voice and TOD).

To file
complaint of discrimination, write USDA, Director, Office of Civil Rights, 1400
Independence Avenue. SW, Washington, DC 20250-9410 or call toll free
(666) 632-9992 (voice), TOD
user can contact USDA through local relay or the Federal relay at
(800) 877-8339 (TOD) or (866)
377-86-42 (relay voice). USDA is an equal opportunity provider and employer.

The
Privacy Act of 1974 (5 U.S.C. 552a) and the Freedom of information Act (5 U.S.C. 552) govern
the confidentially to be provided for information received by the Forest Service.

19

 

THIS PERMIT IS ACCEPTED SUBJECT TO ALL OF ITS TERMS AND CONDITIONS:

	 	 	 	 	 

	ACCEPTED:
	 	 	 	 
	 
	 	/s/ Steve Mueller,	 	 
	WC Acquisition Corp

	 	Steve Mueller, CFO
	 	11/19/10
	 
	HOLDER NAME AND SIGNATURE

	 	 	 	DATE
	 
	 	 	 	 
	APPROVED:
	 	 	 	 
	 
	 	 	 	November 19, 2010
	 

	 	 	 	 
	AUTHORIZED OFFICER SIGNATURE

	 	Thomas Wagner, WMNF Forest Supervisor	 	DATE

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a
person is not required to respond, to a collection of information unless it displays a valid OMB
control number. The valid OMB control number for this information collection is 0596-0082. The time
required to complete this information collection is estimated to average 1 hour per response,
including the time for reviewing instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the collection of information.

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and
activities on the basis of race, color, national origin, age, disability, and, where applicable,
sex, marital status, familial status, parental status, religion, sexual orientation, genetic
information, political beliefs, reprisal, or because all or part of an Individual’s income is
derived from any public assistance. (Not all prohibited bases apply to all programs.) Persons with
disabilities who require alternative means for communication of program information (Braille, large
print, audiotape, etc.) should contact USDA’s TARGET Center at 202-720-2600 (voico and TDD).

To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, 1400
Independence Avenue, SW, Washington. DC 20250-9410 or call toll free (866) 632-8892 (voice). TDD
users can contact USDA through local relay or the Federal relay at
(800) 877.8330 (TDD) or (866)
377-8642 (relay voice). USDA is an equal opportunity provider and employer.

The
Privacy Act of 1974 (5 U.S.C. 552a) and the Freedom of Information Act (5 U.S.C. 552) govern
the confidentiality to be provided for Information received by the Forest Service.

19

 

Appendix A

Area Maps

 

 

 

 

Appendix B

Environmental Site Report

 

 

Environmental Site report to be prepared and attached by May 31, 2011, per clause XI(L) of this
permit.exv10w32

Exhibit 10.32

PROMISSORY NOTE

(Crotched Mountain Ski Resort)

			
	 	 	 
	$8,000,000
	 	March 10, 2006

     FOR VALUE RECEIVED, SNH Development, Inc., a Missouri corporation (“Borrower”), hereby
promises to pay to the order of EPT Crotched Mountain Ski Resort, Inc., a Missouri corporation
(together with any and all of its successors and assigns and/or any other holder of this Note,
“Lender”), without offset, in immediately available funds in lawful money of the United
States of America, at 30 W. Pershing Road, Suite 201, Kansas City, Missouri 64108, the principal
sum of Eight Million and No/100 Dollars ($8,000,000.00) together with interest on the unpaid
principal balance of this Note as hereinafter provided.

     Section 1 Payment. Commencing on April 1, 2006, and continuing on the same day of each
month thereafter until the Maturity Date, the Borrower shall pay interest only on the unpaid
principal balance of this Note at the rate of interest set forth in Section 3 below. The entire
principal balance of this Note, together with all accrued and unpaid interest and all other amounts
payable hereunder and under the other Loan Documents (as hereinafter defined), shall be due and
payable in full on March 10, 2027 (the “Maturity Date”), the final maturity of this Note.
Each twelve (12) consecutive month period during the term of this Note is hereinafter referred to a
“Loan Year”.

     Section 2 Security; Loan Documents. This Note shall be secured by that certain New
Hampshire Leasehold Mortgage, Assignment of Rents, and Security Agreement (as the same may from
time to time be amended, restated, modified or supplemented, the “Mortgage”), of even date
herewith, from Borrower to Lender, conveying and encumbering certain real and personal property
more particularly described therein and located in Bennington, New Hampshire (the
“Property”). This Note is guaranteed by a Guaranty (the “Guaranty”) of even date herewith
by Peak Resorts, Inc., a Missouri corporation. This Note, the Mortgage, the Guaranty, and all other
documents now or hereafter securing, guaranteeing or executed in connection with the loan evidenced
by this Note (the “Loan”), as the same may from time to time be amended, restated, modified
or supplemented, are herein sometimes called individually a “Loan Document” and together
the “Loan Documents.”

     Section 3 Interest Rate.

     (a) Initial Rate. The unpaid principal balance of this Note from day to day
outstanding shall initially bear interest at a rate of nine and one-quarter percent (9.25%) per
annum.

     (b) Annual Rate Adjustment. On April 1, 2007, and on the first day of April of each
year thereafter (the “Adjustment Date”) until the Maturity Date, the rate of interest shall be
increased to an amount equal to the lesser of the following:

     (i) the rate of interest in the previous year multiplied by 1.015;

     or

     (ii) the sum of the rate of interest in the previous year plus the product of (a) the rate of
interest in the previous year and (b) the percentage increase in the CPI (as hereinafter defined)
from the CPI in effect on the applicable Adjustment Date over the CPI in effect on the immediately
preceding Adjustment Date, in each case rounded to the nearest one-hundredth of a percent

For example, if, on the April 1, 2007, the CPI increase between April 1, 2006 and April 1, 2007 is
1.2%, then the rate of interest shall increase to 9.36% (i.e., 9.25% + (9.25% x 1.2%), but if the
CPI has

 

 

increased by 2.50 percent, then the
standard rate shall increase to 9.39% (i.e., 9.25% x 1.015).
For the purposes hereof, “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). In the event that the CPI ceases to incorporate a significant number of
items, or if a substantial change is made in the method of establishing such CPI, then the CPI
shall be adjusted in a fair and reasonable manner to the figure that would have resulted had no
substantial change occurred in the manner of computing such CPI. In the event that such CPI (or a
successor or substitute index) is not available, such governmental or other service or publication
as shall evaluate the information in substantially the same manner as the aforesaid CPI, shall be
used in lieu thereof.

In no event shall there be a decrease in the rate of interest if there is a decrease in the CPI.

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

     Section 4 Prepayment. Provided that Borrower is not in default hereunder, Borrower may
prepay the entire principal balance of this Note prior to the Maturity Date as follows: (i) upon
the expiration of the seventh (7th) Loan Year; or (ii) upon the expiration of the
fourteenth (14th) Loan Year; provided that: (a) no prepayment may be made which in Lender’s
judgment would contravene or prejudice funding under any applicable permanent loan commitment or
tri-party agreement or the like; (b) Lender shall have actually received from Borrower one (1)
years prior written notice of (i) Borrower’s intent to prepay, and (ii) the date on which the
prepayment will be made; and (c) such prepayment shall be equal to the entire outstanding principal
balance. Other than as expressly set forth in this Section 4, Borrower shall have no right to
prepay any or all of the outstanding principal balance.

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

     Section 6 Certain Provisions Regarding Payments. All payments made under this Note
shall be applied, to the extent thereof, to late charges, to accrued but unpaid interest, to unpaid
principal, and to any other sums due and unpaid to Lender under the Loan Documents, in such manner
and order as Lender may elect in its sole discretion, any instructions from Borrower or anyone else
to the contrary notwithstanding. Remittances shall be made without offset, demand, counterclaim,
deduction, or recoupment (each of which is hereby waived) and shall be accepted subject to the
condition that any check or draft may be handled for collection in accordance with the practice of
the collecting bank or banks. Acceptance by Lender of any payment in an amount less than the amount
then due on any indebtedness shall be deemed an acceptance on account only, notwithstanding any
notation on or accompanying such partial payment to the contrary, and shall not in any way (a)
waive or excuse the

2

 

existence of an Event of Default (as hereinafter defined), (b) waive, impair or extinguish any
right or remedy available to Lender hereunder or under the other Loan Documents, or (c) waive the
requirement of punctual payment and performance or constitute a novation in any respect. Payments
received after 2:00 o’clock p.m. central standard time shall be deemed to be received on, and shall
be posted as of, the following business day. Whenever any payment under this Note or any other Loan
Document falls due on a Saturday, a Sunday or another day on which the offices of Lender are not
open for the conduct of its banking business at the place where this Note is payable, such payment
may be made on the next succeeding day on which the offices of Lender are open for such business.

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

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

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

          (c) An Event of Default (as therein defined) occurs under any of the Loan Documents other than
this Note (subject to any applicable grace or cure period).

       
   (d) An event of default under that certain Lease Agreement by and between EPT Mad River
Mountain Ski Resort, Inc., as lessor, and Mad River Mountain, Inc., as lessee, of certain property
located in Bellefontaine, Ohio, dated November 17,2005.

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

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

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

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

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

3

 

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

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

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

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

4

 

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

     Section 15 No Usury. It is expressly stipulated and agreed to be the intent of
Borrower and Lender at all times to comply with applicable state law or applicable United States
federal law (to the extent that it permits Lender to contract for, charge, take, reserve, or
receive a greater amount of interest than under state law) and that this Section shall control
every other covenant and agreement in this Note and the other Loan Documents. If applicable state
or federal law should at any time be judicially interpreted so as to render usurious any amount
called for under this Note or under any of the other Loan Documents, or contracted for, charged,
taken, reserved, or received with respect to the Loan, or if Lender’s exercise of the option to
accelerate the Maturity Date, or if any prepayment by Borrower results in Borrower having paid any
interest in excess of that permitted by applicable law, then it is Lender’s express intent that all
excess amounts theretofore collected by Lender shall be credited on the principal balance of this
Note and all other indebtedness secured by the Mortgage, and the provisions of this Note and the
other Loan Documents shall immediately be deemed reformed and the amounts thereafter collectible
hereunder and thereunder reduced, without the necessity of the execution of any new documents, so
as to comply with the applicable law, but so as to permit the recovery of the fullest amount
otherwise called for hereunder or thereunder. All sums paid or agreed to be paid to Lender for the
use or forbearance of the Loan shall, to the extent permitted by applicable law, be amortized,
prorated, allocated, and spread throughout the full stated term of the Loan.

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

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

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

	 	 	 	 	 
	 	Borrower:

SNH Development, 

a Missouri corporation

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

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