On October 19, 2009, Blue Ridge Real Estate Co. and Big Boulder Corp. PA, and certain of the companies' subsidiaries, entered into a fifth loan modification agreement and along with manufacturers and traders trust company. The fifth modified loan agreement amends the original loan agreement and the amended and restated construction and site development line of credit mortgage note entered into by the borrowers and the bank on April 20, 2006. Under the terms of the original loan agreement, the bank had extended to the borrowers an available line of credit in an aggregate principal amount of up to $20,000,000, with a construction line of credit sub-loan in an aggregate principal amount of $7,900,000, to fund the completion of construction of units in the companies' land development projects, and a site development sub-loan in an aggregate principal amount of $12,100,000 for improvements to the companies' land development projects. Specifically, $6,000,000 of the site development sub loan was to fund the completion of the infrastructure improvements and $6,100,000 of the site development sub loan was to fund the completion of the sewer and water improvements. Under the terms of the fifth modified loan agreement, the bank and the borrowers agreed to decrease the borrowers' available line of credit by an aggregate of $2,100,000, to a maximum principal amount of $17,900,000. As a result, the site development sub loan for sewer and water improvements of $6,100,000 was decreased to $4,000,000. the construction sub loan amount remained unchanged under the terms of the fifth modified loan agreement.

Blue Ridge Real Estate Co. reported earnings results for the third quarter ended July 31, 2009. Net income for the quarter was $976,308, up $293,740 net loss for the same quarter the previous year.

On May 21, 2009, Blue Ridge Real Estate Co. and Big Boulder Corp. PA notified Parente Randolph, LLC, the company's principal independent accountant, of its decision to terminate the services of Parente with such termination to be effective upon the company's filing of its quarterly report on Form 10-Q for the second quarter period ending April 30, 2009. The decision to dismiss Parente was approved by the company's Audit Committee. The company's financial statements for each of the past two fiscal years did not contain an adverse opinion or disclaimer of opinion and were not otherwise qualified or modified as to uncertainty, audit scope or accounting principles. On May 21, 2009, the company engaged Kronick Kalada Berdy & Co. as the principal accountant to audit the company's financial statements. The engagement of KKB as the principal accountant to audit the Registrants' financial statements was approved by the company's Audit Committee.