BLUE RIDGE REAL ESTATE COMPANY
                            BIG BOULDER CORPORATION

                            STOCK OPTION AGREEMENT

      ELDON  D.  DIETTERICK  (the  "Optionee")  has been granted an option (the
"Option") as of February 13, 2004 to purchase 7,000  shares  of Common Stock of
Blue  Ridge  Real Estate Company and Big Boulder Corporation (collectively  the
"Companies").   The  Option  shall  be  subject  to  the  following  terms  and
conditions:

1. PURCHASE PRICE.  With respect to the shares of Common Stock of the Companies
   subject  to  the  Option  to be delivered in unit form (the "Shares"), 7,000
   Shares may be purchased for $17.75 per share.

2. DURATION OF OPTION.  The Option  shall  expire,  and  all rights to purchase
   Shares pursuant thereto shall cease, on February 13, 2009.

3. EXERCISABILITY.   The  Shares  subject  to  the  Option  may  be   purchased
   immediately, without any vesting period, and throughout the duration  of the
   Option.

4. PURCHASE OF OPTION SHARES.  The Optionee may purchase the Shares subject  to
   the Option in whole at any time, or in part from time to time, by delivering
   to  the  Secretary  of the Companies written notice specifying the number of
   Shares being purchased,  together with payment in full of the purchase price
   of such Shares plus any applicable  federal,  state or local taxes for which
   the  Companies  have  a  withholding  obligation  in  connection  with  such
   purchase.  Such payment shall be made in whole or in  part  in  cash,  or by
   personal check, certified check, money market check or bank draft payable to
   the order of the Companies.

5. NONTRANSFERABILITY.  The Option shall not be transferable other than (i)  by
   will,  (ii)  by  the laws of descent and distribution, (iii) pursuant to the
   terms of a qualified domestic relations order or (iv) in circumstances other
   than those set forth in (i) - (iii) above, with the express written approval
   of the Companies.

6. ISSUANCE OF SHARES: RESTRICTIONS.

(i)The Companies shall,  within  ten  business days after Shares subject to the
   Option have been purchased in whole  or  in  part, deliver to the Optionee a
   certificate,  registered  in the name of the Optionee,  for  the  number  of
   Shares so purchased.  The Companies  may legend any Share certificate issued
   hereunder to reflect any restrictions  deemed  necessary by the Companies to
   comply with the federal securities laws.

(ii)The Companies may require, prior to and as a condition  of  the issuance of
   any  Shares,  that  the  Optionee  furnish  the  Companies  with  a  written
   representation,  in  a  form  acceptable  to  the Companies' counsel, to the
   effect that the Optionee is acquiring such Shares  solely  with  a  view  to
   investment  for the Optionee's own account and not with a view to the resale
   or distribution  of  all or any part thereof, and that the Optionee will not
   dispose  of  any of such  Shares  otherwise  than  in  accordance  with  the
   provisions of  Rule  144  under  the Securities Act of 1933, as amended (the
   "1933 Act"), unless and until either  the  Shares  are  registered under the
   1933  Act  or  the  Companies  are  satisfied  that an exemption  from  such
   registration is available.

(iii) Anything contained herein to the contrary notwithstanding,  the companies
   shall  not  be obligated to sell or issue any Shares pursuant to the  Option
   unless and until  the  Companies  are  satisfied  that such sale or issuance
   complies with (A) all applicable requirements of the National Association of
   Securities Dealers (or the governing body of the principal  market  in which
   the Companies' Common Stock is traded), (B) all applicable provisions of the
   1933  Act  and (C) all other laws or regulations by which the Companies  are
   bound or to which the Companies are subject.

7. ADJUSTMENTS.  In the event that the Companies make any distribution of cash,
   Common Stock,  assets  or  other property to shareholders which results from
   the sale or disposition of a  major  asset or separate operating division of
   the Companies or any other extraordinary  event  and, in the judgment of the
   Board  of  Directors  of  the  Companies  (the  "Board"),   such  change  or
   distribution  would  significantly dilute the rights of Optionee  hereunder,
   then the Board may make  appropriate  adjustments  to  the  number of Shares
   subject  to  and/or  the  purchase  price  of  the  Option.  The adjustments
   determined by the Board shall be final, binding and conclusive.

8. AMENDMENT.  This Option Agreement shall not be amended  or  revised  in  any
   respect  unless  such  amendment is in writing and executed by the Companies
   and the Optionee.

9. TERMINATION.  In the Optionee  shall  resign as an Officer of the Companies,
   the Option shall terminate and the Optionee  shall  have  no  further rights
   hereunder.

10.GOVERNING LAW.  This Option Agreement shall be governed by and  construed in
   accordance with the laws of the Commonwealth of Pennsylvania.

11.OPTIONEE  ACKNOWLEDGMENT.  Optionee acknowledges receipt of a copy  of  this
   Option Agreement  and  hereby  agrees  to be bound by all provisions of this
   Option Agreement.


DATE OF GRANT: February 13, 2004
                                       BLUE RIDGE REAL ESTATE COMPANY
                                       BIG BOULDER CORPORATION


                                       BY:  /s/ Michael J. Flynn
                                             MICHAEL J. FLYNN
                                             CHAIRMAN OF THE BOARD

ATTEST:

/s/ Betty Ann LoPinto

                                             /s/ Eldon D. Dietterick
                                             ELDON D. DIETTERICK, OPTIONEE