Document:

exv4w4

Exhibit 4.4

SECURITY AGREEMENT

dated as of April 7, 2010

between

EACH OF THE GRANTORS PARTY HERETO

and

U.S. BANK NATIONAL ASSOCIATION,

as Collateral Agent

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE
	 
	 	 	 	 
	SECTION 1. DEFINITIONS; GRANT OF SECURITY
	 	 	2	 
	1.1 General Definitions
	 	 	2	 
	1.2 Definitions; Interpretation
	 	 	8	 
	 
	 	 	 	 
	SECTION 2. GRANT OF SECURITY
	 	 	9	 
	2.1 Grant of Security
	 	 	9	 
	2.2 Certain Limited Exclusions
	 	 	10	 
	 
	 	 	 	 
	SECTION 3. SECURED OBLIGATIONS; GRANTORS REMAIN LIABLE
	 	 	11	 
	3.1 Secured Obligations
	 	 	11	 
	3.2 Continuing Liability Under Collateral
	 	 	12	 
	 
	 	 	 	 
	SECTION 4. PERFECTION REQUIREMENTS
	 	 	12	 
	 
	 	 	 	 
	SECTION 5. REPRESENTATIONS AND WARRANTIES
	 	 	12	 
	5.1 Due Authorization and Execution
	 	 	12	 
	5.2 Grantor Information and Status
	 	 	13	 
	5.3 Collateral Identification and Special Collateral
	 	 	13	 
	5.4 Ownership of Collateral and Absence of Other Liens
	 	 	14	 
	5.5 Status of Security Interest
	 	 	14	 
	5.6 Goods and Receivables
	 	 	14	 
	5.7 Intellectual Property
	 	 	15	 
	5.8 Miscellaneous
	 	 	16	 
	 
	 	 	 	 
	SECTION 6. COVENANTS AND AGREEMENTS
	 	 	16	 
	6.1 Grantor Information and Status
	 	 	16	 
	6.2 Collateral Identification; Special Collateral
	 	 	17	 
	6.3 Ownership of Collateral and Absence of Other Liens
	 	 	17	 
	6.4 Status of Security Interest
	 	 	17	 
	6.5 Goods and Receivables
	 	 	18	 
	6.6 Intellectual Property
	 	 	18	 
	 
	 	 	 	 
	SECTION 7. ACCESS; RIGHT OF INSPECTION; INSURANCE AND FURTHER ASSURANCES
	 	 	19	 
	7.1 Access; Right of Inspection; Insurance
	 	 	19	 
	7.2 Further Assurances
	 	 	20	 
	 
	 	 	 	 
	SECTION 8. COLLATERAL AGENT APPOINTED ATTORNEY-IN-FACT
	 	 	21	 
	8.1 Power of Attorney
	 	 	21	 
	8.2 No Duty on the Part of Collateral Agent or Secured Parties
	 	 	22	 
	 
	 	 	 	 
	SECTION 9. REMEDIES
	 	 	22	 
	9.1 Generally
	 	 	22	 
	9.2 Application of Proceeds
	 	 	24	 
	9.3 Sales on Credit
	 	 	24	 
	9.4 Investment Related Property
	 	 	24	 
	9.5 Grant of Intellectual Property License
	 	 	24	 

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	 	 	PAGE
	 
	 	 	 	 
	9.6 Intellectual Property
	 	 	25	 
	9.7 Cash Proceeds; Collateral Accounts
	 	 	26	 
	 
	 	 	 	 
	SECTION 10. COLLATERAL AGENT
	 	 	26	 
	10.1 Appointment
	 	 	27	 
	10.2 Delegation of Duties
	 	 	27	 
	 
	 	 	 	 
	SECTION 11. CONTINUING SECURITY INTEREST; TRANSFER OF NOTES
	 	 	27	 
	 
	 	 	 	 
	SECTION 12. STANDARD OF CARE; COLLATERAL AGENT MAY PERFORM
	 	 	28	 
	 
	 	 	 	 
	SECTION 13. DESTRUCTION, CONDEMNATION AND RESTORATION
	 	 	31	 
	13.1 Availability of Proceeds
	 	 	31	 
	 
	 	 	 	 
	SECTION 14. MISCELLANEOUS
	 	 	31	 
	 
	 	 	 	 
	SECTION 15. RESOLUTION OF DRAFTING AMBIGUITIES
	 	 	32	 
	 
	 	 	 	 
	SECTION 16. WAIVER OF JURY TRIAL
	 	 	32	 

SCHEDULE 1.1 — EXCLUDED REAL PROPERTY

SCHEDULE 5.2 — GENERAL INFORMATION

SCHEDULE 5.3 — COLLATERAL IDENTIFICATION

SCHEDULE 5.5 — FINANCING STATEMENTS

SCHEDULE 5.6 — LOCATION OF EQUIPMENT AND INVENTORY

EXHIBIT A — PLEDGE SUPPLEMENT

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SECURITY AGREEMENT

          This SECURITY AGREEMENT, dated as of April 7, 2010 (the “Effective Date”) (as it may be
amended, restated, supplemented or otherwise modified from time to time, this “Agreement”), by and
among MASON FAMILY RESORTS, LLC, a Delaware limited liability company (“Mason Resorts”), GREAT WOLF
LODGE OF GRAPEVINE, LLC, a Delaware limited liability company (“GW Grapevine”), GREAT WOLF
WILLIAMSBURG SPE, LLC, a Delaware limited liability company (“Williamsburg SPE”; and together with
Mason Resorts and GW Grapevine, each a “Grantor”, and collectively, the “Grantors”), and U.S. BANK
NATIONAL ASSOCIATION, as Collateral Agent for the benefit of the Secured Parties (as hereinafter
defined).

RECITALS:

     WHEREAS, reference is made to that certain Indenture dated as of the date hereof (as it may be
amended, restated, supplemented or otherwise modified from time to time, the “Indenture”), by and
among GWR Operating Partnership, L.L.L.P., a Delaware limited liability limited partnership (the
“Parent”), and Great Wolf Finance Corp., a Delaware corporation (collectively, the “Co-Issuers” and
each individually, a “Co-Issuer”), the Grantors, the other guarantors party thereto (together with
the Grantors, the “Guarantors”), and U.S. Bank National Association, as Trustee and Collateral
Agent;

     WHEREAS, pursuant to the terms of the Indenture, each Guarantor, including each Grantor, party
thereto has unconditionally and irrevocably guaranteed, as primary obligor and not merely as
surety, to the Trustee for the benefit of the Secured Parties, the prompt and complete payment and
performance when due (whether at the stated maturity, by acceleration or otherwise) of the
Obligors’ (as hereinafter defined) obligations under the Indenture and the Notes (as hereinafter
defined) (collectively, the “Note Guarantees”);

     WHEREAS, in order to secure the Grantors’ Secured Obligations (as hereinafter defined), each
Grantor intends to grant the Collateral Agent, for the benefit of the Secured Parties, a lien on
the Collateral (as hereinafter defined) on the terms and subject to the conditions contained
herein;

     WHEREAS, the proceeds of the Notes will be used in part to enable the repayment in full of
certain of the Grantors’ existing indebtedness;

     WHEREAS, each Grantor acknowledges that it will derive substantial direct and indirect benefit
from the issuance of the Notes and from the transactions contemplated by the Notes Documents (as
hereinafter defined); and

     WHEREAS, each Grantor hereby acknowledges that the Collateral Agent has been induced to enter
into the Indenture and the Security Documents (as hereinafter defined), and the Holders (as
hereinafter defined) have been induced to purchase the Notes, on the basis of the representations
and warranties, covenants and other terms and conditions set forth in this Agreement.

     NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants
herein contained, and for other good and valuable consideration the receipt and sufficiency of
which is hereby acknowledged, each Grantor and the Collateral Agent agree as follows:

 

 

SECTION 1. DEFINITIONS; GRANT OF SECURITY.

     1.1 General Definitions. In this Agreement, the following terms shall have the following
meanings:

          “Agreement” shall have the meaning assigned to such term in the preamble.

          “Assigned Agreements” shall mean all agreements, contracts and documents to which any Grantor
is a party as of the Effective Date, or to which any Grantor becomes a party after the Effective
Date, including, without limitation, each Material Contract, as each such agreement, contract and
document may be amended, restated, supplemented or otherwise modified from time to time.

          “Capital Stock” shall have the meaning assigned to such term in the Indenture.

          “Cash Equivalents” shall have the meaning assigned to such term in the Indenture.

          “Cash Proceeds” shall have the meaning assigned to such term in Section 9.7 hereof.

          “Co-Issuer” and “Co-Issuers” shall have the respective meanings assigned to such terms in the
recitals.

          “Collateral” shall have the meaning assigned to such term in Section 2.1 hereof.

          “Collateral Account” shall mean any account established by the Collateral Agent.

          “Collateral Agent” shall have the meaning assigned to such term in the Indenture.

          “Collateral Records” shall mean books, records, ledger cards, files, correspondence, customer
lists, supplier lists, blueprints, technical specifications, manuals, computer software and related
documentation, computer printouts, tapes, disks and other electronic storage media and related data
processing software and similar items that at any time evidence or contain information relating to
any of the Collateral or are otherwise necessary or helpful in the collection thereof or
realization thereupon.

          “Collateral Support” shall mean all property assigned, hypothecated or otherwise securing any
Collateral and shall include any security agreement or other agreement granting a lien or security
interest in real or personal property.

          “Control” shall mean: (i) with respect to any Deposit Accounts, control within the meaning of
Section 9-104 of the UCC, (ii) with respect to any Securities Accounts, Security Entitlements,
Commodity Contract or Commodity Account, control within the meaning of Section 9-106 of the UCC,
(iii) with respect to any Uncertificated Securities, control within the meaning of Section 8-106(c)
of the UCC, (iv) with respect to any Certificated Security, control within the meaning of Section
8-106(a) or (b) of the UCC, (v) with respect to any Electronic Chattel Paper, control within the
meaning of Section 9-105 of the UCC, (vi) with respect to Letter of Credit Rights, control within
the meaning of Section 9-107 of the UCC and (vii) with respect

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to any “transferable record” (as that term is defined in Section 201 of the Federal Electronic
Signatures in Global and National Commerce Act or in Section 16 of the Uniform Electronic
Transactions Act as in effect in any relevant jurisdiction), control within the meaning of Section
201 of the Federal Electronic Signatures in Global and National Commerce Act or in Section 16 of
the Uniform Electronic Transactions Act as in effect in the jurisdiction relevant to such
transferable record.

          “Copyright Licenses” shall mean any and all agreements, licenses and covenants providing for
the granting of any right in or to any Copyright or otherwise providing for a covenant not to sue
for infringement or other violation of any Copyright (whether such Grantor is licensee or licensor
thereunder) including, without limitation, each agreement listed in Schedule 5.3(II)
attached hereto under the heading “Copyright Licenses” (as such schedule may be amended or
supplemented from time to time).

          “Copyrights” shall mean all United States, and foreign copyrights (whether or not the
underlying works of authorship have been published), including but not limited to copyrights in
software and all rights in and to databases, all designs (including but not limited to industrial
designs, protected designs within the meaning of 17 U.S.C. 1301 et. Seq. and community designs),
and all mask works (as defined under 17 U.S.C. 901 of the U.S. Copyright Act), whether registered
or unregistered, as well as all moral rights, reversionary interests, and termination rights, and,
with respect to any and all of the foregoing: (i) all registrations and applications therefor
including, without limitation, the registrations and applications listed in Schedule
5.3(II) attached hereto under the heading “Copyrights” (as such schedule may be amended or
supplemented from time to time), (ii) all extensions and renewals thereof, and (iii) all other
rights of any kind accruing thereunder or pertaining thereto throughout the world.

          “Destruction” shall mean any loss or damage to any Collateral as a result of fire or casualty
or destruction of such Collateral.

          “Effective Date” shall have the meaning assigned to such term in the recitals.

          “Excepted Lien” shall mean any Lien referred to in clauses (2), (3) or (5) of the definition
of “Permitted Lien” (as defined in the Indenture) and any replacement of such Permitted Liens
pursuant to clause (11) of the definition thereof.

          “Excluded Asset” shall mean any asset of any Grantor excluded from the security interest
hereunder by virtue of Section 2.2 hereof but only to the extent, and for so long as, so
excluded thereunder.

          “Excluded Real Property” shall mean (i) that certain real property owned by Williamsburg
Meadows, LLC located in Williamsburg, Virginia, which commonly known as parcel “B”, as is more
particularly described in Schedule 1.1(a) attached hereto; (ii) that certain real property
owned by Williamsburg Landlord Parcel C, LLC located in Williamsburg, Virginia, which commonly
known as parcel “C”, as is more particularly described in Schedule 1.1(b) attached hereto;
and (iii) any other interest of any Grantor in real property other than any Mortgaged Property if
the greater of the cost, Fair Market Value (as defined in the Indenture) and the book value of such
interest is less than $300,000, including, without limitation, each real property interest listed
in Schedule 1.1(c) attached hereto (as such Schedule 1.1 may be amended or
supplemented from time to time).

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          “Grantor” and “Grantors” shall have the respective meanings assigned to such terms in the
preamble.

          “Grapevine Deed of Trust” shall mean that certain Deed of Trust, Assignment of Leases and
Rents, Security Agreement and Fixture Filing dated as of April 7, 2010 from Great Wolf Lodge of
Grapevine, LLC, as trustor, in favor of Collateral Agent, as beneficiary, for the benefit of the
Secured Parties (as defined therein), encumbering certain real property located in Tarrant County,
Texas, as more particularly described therein, as it may be amended, restated, supplemented or
otherwise modified from time to time.

          “GW Grapevine” shall have the meaning assigned to such term in the preamble.

          “Guarantors” shall have the meaning assigned to such term in the recitals.

          “Holders” shall mean the holders of the Notes from time to time.

          “Indenture” shall have the meaning assigned to such term in the recitals.

          “Insurance” shall mean all insurance policies covering any or all of the Collateral.

          “Intellectual Property” shall mean, the collective reference to all intellectual property,
whether arising under the United States, multinational or foreign laws or otherwise, including
without limitation, Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks, Trademark
Licenses, Trade Secrets and Trade Secret Licenses.

          “Investment Accounts” shall mean the Collateral Accounts, Securities Accounts, Commodities
Accounts and Deposit Accounts.

          “Investment Related Property” shall mean: (i) all “investment property” (as such term is
defined in Article 9 of the UCC) and (ii) all of the following (regardless of whether classified as
investment property under the UCC): all Pledged Debt, Cash Equivalents, the Investment Accounts and
certificates of deposit.

          “IP Collateral” shall mean all right, title and interest in and to Intellectual Property,
including (i) the right to sue or otherwise recover for any past, present and future infringement
or other violation thereof, (ii) all Proceeds of the foregoing, including, without limitation,
license fees, royalties, income, payments, claims, damages and proceeds of suit now or hereafter
due and/or payable with respect thereto and (iii) all payments and rights to payments arising out
of the sale, lease, license, assignment or other disposition thereof.

          “License” shall mean any license, permit, franchise, registration, filing, order, declaration,
qualification, approval, consent, certificate or other authorization, in each case required under
applicable laws to own, lease, operate or otherwise conduct the business activities of the
Grantors.

          “Lien” shall have the meaning assigned to such term in the Indenture.

          “Mason Mortgage” shall mean that certain Open-End Mortgage, Assignment of Leases and Rents,
Security Agreement and Fixture Filing dated as of April 7, 2010 from Mason Family Resorts, LLC, as
mortgagor, in favor of Collateral Agent, as mortgagee, for the benefit of

4

 

the Secured Parties (as defined therein), encumbering certain real property located in Warren
County, Ohio, as more particularly described therein, as it may be amended, restated, supplemented
or otherwise modified from time to time.

          “Mason Resorts” shall have the meaning assigned to such term in the preamble.

          “Material Adverse Effect” shall mean any circumstance, event, occurrence or effect that has or
would reasonably be expected to have an effect that is materially adverse to the business, assets,
operation and condition of all of the Grantors, taken as a whole.

          “Material Contract” shall mean any contract or other arrangement to which any Grantor is a
party (other than the Notes Documents) for which breach, nonperformance, cancellation or failure to
renew would have a Material Adverse Effect.

          “Mortgaged Property” shall have the meaning assigned to such term in the Mortgages.

          “Mortgages” shall mean the Mason Mortgage, the Grapevine Deed of Trust, the Williamsburg Deed
of Trust and any other agreement pursuant to which a Lien is granted in favor of the Collateral
Agent in real property owned by any Grantor, as each may be amended, restated, supplemented or
otherwise modified from time to time.

          “Note Guarantees” shall have the meaning assigned to such term in the recitals.

          “Notes” shall mean the 10.875% first mortgage notes due 2017 in an aggregate principal amount
of $230,000,000 issued by the Co-Issuers pursuant to the Indenture, and any exchange notes or other
first mortgage notes issued from time to time under the Indenture.

          “Notes Documents” shall mean the Indenture, the Notes, the Note Guarantees, this Agreement,
the other Security Documents and each of the other agreements, documents and instruments executed
pursuant thereto, and any other document or instrument executed or delivered by any Obligor at any
time in connection with any Obligation (as defined in the Indenture) to any Secured Party, as each
may be amended, supplemented, refunded, deferred, restructured, replaced or refinanced from time to
time in whole or in part (whether with the Collateral Agent and Holders or other agents and lenders
or otherwise), in each case in accordance with the provisions of this Agreement.

          “Obligors” shall mean the Co-Issuers, the Grantors and the other Guarantors.

          “Officers’ Certificate” shall have the meaning assigned to such term in the Indenture.

          “Parent” shall have the meaning assigned to such term in the recitals.

          “Parent Guarantors” shall have the meaning assigned to such term in the Indenture.

          “Patent Licenses” shall mean all agreements, licenses and covenants providing for the granting
of any right in or to any Patent or otherwise providing for a covenant not to sue for infringement
or other violation of any Patent (whether such Grantor is licensee or licensor thereunder)
including, without limitation, each agreement listed in Schedule 5.3(II) attached

5

 

hereto under the heading “Patent Licenses” (as such schedule may be amended or supplemented
from time to time).

          “Patents” shall mean all United States and foreign patents and certificates of invention, or
similar industrial property rights, and applications for any of the foregoing, including, without
limitation: (i) each patent and patent application listed in Schedule 5.3(II) attached
hereto under the heading “Patents” (as such schedule may be amended or supplemented from time to
time), (ii) all reissues, divisions, continuations, continuations-in-part, extensions, renewals,
and reexaminations thereof, (iii) all patentable inventions and improvements thereto, and (iv) all
other rights of any kind accruing thereunder or pertaining thereto throughout the world.

          “Permitted Collateral Liens” shall have the meaning assigned to such term in the Indenture.

          “Pledge Supplement” shall mean any supplement to this Agreement in substantially the form of
Exhibit A attached hereto.

          “Pledged Debt” shall mean all indebtedness for borrowed money owed to such Grantor (excluding
intercompany indebtedness owned by any Affiliate of a Grantor), whether or not evidenced by any
Instrument, including, without limitation, all indebtedness described on Schedule 5.3(I)
attached hereto under the heading “Pledged Debt” (as such schedule may be amended or supplemented
from time to time), issued by the obligors named therein, the instruments, if any, evidencing such
any of the foregoing, and all interest, cash, instruments and other property or proceeds from time
to time received, receivable or otherwise distributed in respect of or in exchange for any or all
of the foregoing.

          “Receivables” shall mean all rights to payment, whether or not earned by performance, for
goods or other property sold, leased, licensed, assigned or otherwise disposed of, or services
rendered or to be rendered, including, without limitation all such rights constituting or evidenced
by any Account, Chattel Paper, Instrument, General Intangible, Payment Intangible or Investment
Related Property, together with all of Grantor’s rights, if any, in any goods or other property
giving rise to such right to payment and all Collateral Support and Supporting Obligations related
thereto and all Receivables Records.

          “Receivables Records” shall mean (i) all original copies of all documents, instruments or
other writings or electronic records or other Records evidencing the Receivables, (ii) all books,
correspondence, credit or other files, Records, ledger sheets or cards, invoices, and other papers
relating to Receivables, including, without limitation, all tapes, cards, computer tapes, computer
discs, computer runs, record keeping systems and other papers and documents relating to the
Receivables, whether in the possession or under the control of Grantor or any computer bureau or
agent from time to time acting for Grantor or otherwise, (iii) all evidences of the filing of UCC
financing statements and the registration of other instruments in connection therewith, and
amendments, supplements or other modifications thereto, notices to other creditors, secured parties
or agents thereof, and certificates, acknowledgments, or other writings, including, without
limitation, lien search reports, from filing or other registration officers, (iv) all credit
information, reports and memoranda relating thereto and (v) all other written or non-written forms
of information related in any way to the foregoing or any Receivable.

          “Resort Facility” shall mean any resort property and other property or assets directly
ancillary thereto or directly used in connection therewith, including any building,

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restaurant, hotel, theater, parking facilities, retail shops, land, golf courses and other
recreation and entertainment facilities, owned or operated by any Grantor.

          “Secured Obligations” shall have the meaning assigned to such term in Section 3.1
hereof.

          “Secured Parties” shall mean, collectively, the Holders, the Collateral Agent and the Trustee.

          “Securities” shall mean any stock, shares, partnership interests, voting trust certificates,
certificates of interest or participation in any profit-sharing agreement or arrangement, options,
warrants, bonds, debentures, notes, or other evidences of indebtedness, secured or unsecured,
convertible, subordinated or otherwise, or in general any instruments commonly known as
“securities” or any certificates of interest, shares or participations in temporary or interim
certificates for the purchase or acquisition of, or any right to subscribe to, purchase or acquire,
any of the foregoing.

          “Securities Act” shall mean the Securities Act of 1933, as amended from time to time, and any
successor statute.

          “Security Documents” shall mean this Agreement, the Mortgages, the Note Guarantees and the
other Collateral Documents (as defined in the Indenture) and any other agreement, document or
instrument pursuant to which a Lien is granted securing any Secured Obligation or under which
rights or remedies with respect to such Liens are governed, as the same may be amended,
supplemented or otherwise modified from time to time.

          “Subsidiary” shall have the meaning assigned to such term in the Indenture.

          “Trademark Licenses” shall mean any and all agreements, licenses and covenants providing for
the granting of any right in or to any Trademark or otherwise providing for a covenant not to sue
for infringement, dilution or other violation of any Trademark or permitting co-existence with
respect to a Trademark (whether such Grantor is licensee or licensor thereunder) including, without
limitation, each agreement in Schedule 5.3(II) attached hereto under the heading “Trademark
Licenses” (as such schedule may be amended or supplemented from time to time).

          “Trademarks” shall mean all United States, and foreign trademarks, trade names, trade dress,
corporate names, company names, business names, fictitious business names, Internet domain names,
service marks, certification marks, collective marks, logos, other source or business identifiers,
designs and general intangibles of a like nature, whether or not registered, and with respect to
any and all of the foregoing: (i) all registrations and applications therefor including, without
limitation, the registrations and applications listed in Schedule 5.3(II) attached hereto
under the heading “Trademarks”(as such schedule may be amended or supplemented from time to time),
(ii) all extensions or renewals of any of the foregoing, (iii) all of the goodwill of the business
connected with the use of and symbolized by any of the foregoing, and (iv) all other rights of any
kind accruing thereunder or pertaining thereto throughout the world.

          “Trade Secret Licenses” shall mean any and all written agreements providing for the granting
of any right in or to Trade Secrets (whether such Grantor is licensee or licensor thereunder)
including, without limitation, each agreement listed in Schedule 5.3(II) attached

7

 

hereto under the heading “Trade Secret Licenses” (as such schedule may be amended or
supplemented from time to time).

          “Trade Secrets” shall mean all trade secrets and all other confidential or proprietary
information and know-how whether or not the foregoing has been reduced to a writing or other
tangible form, including all documents and things embodying, incorporating, or referring in any way
to the foregoing, and with respect to any and all of the foregoing, all other rights of any kind
accruing thereunder or pertaining thereto throughout the world.

          “Trustee” shall have the meaning assigned to such term in the Indenture.

          “UCC” shall mean the Uniform Commercial Code as in effect from time to time in the State of
New York; provided, however, that in the event that, by reason of mandatory provisions of law, any
or all of the perfection or priority of, or remedies with respect to, any Collateral is governed by
the Uniform Commercial Code as enacted and in effect in a jurisdiction other than the State of New
York, the term “UCC” shall mean the Uniform Commercial Code as enacted and in effect in such other
jurisdiction solely for purposes of the provisions hereof relating to such perfection, priority or
remedies.

          “United States” shall mean the United States of America.

          “Williamsburg Deed of Trust” shall mean that certain Deed of Trust, Assignment of Leases and
Rents, Security Agreement and Fixture Filing dated as of April 7, 2010 from Great Wolf Williamsburg
SPE, LLC, as trustor, to Collateral Agent, as beneficiary, for the benefit of the Secured Parties
(as defined therein), encumbering certain real property located in York County, Virginia, as more
particularly described therein, as it may be amended, restated, supplemented or otherwise modified
from time to time.

          “Williamsburg SPE” shall have the meaning assigned to such term in the preamble.

     1.2 Definitions; Interpretation.

          (a) In this Agreement, the following capitalized terms shall have the meaning given to them in
the UCC (and, if defined in more than one Article of the UCC, shall have the meaning given in
Article 9 thereof): Account, Account Debtor, As-Extracted Collateral, Bank, Certificated Security,
Chattel Paper, Consignee, Consignment, Consignor, Commercial Tort Claims, Commodity Account,
Commodity Contract, Commodity Intermediary, Deposit Account, Document, Entitlement Order,
Equipment, Electronic Chattel Paper, Farm Products, Fixtures, General Intangibles, Goods,
Health-Care-Insurance Receivable, Instrument, Inventory, Letter of Credit Right, Manufactured Home,
Money, Payment Intangible, Proceeds, Record, Securities Account, Securities Intermediary, Security
Certificate, Security Entitlement, Supporting Obligations, Tangible Chattel Paper and
Uncertificated Security.

          (b) All other capitalized terms used herein (including the preamble and recitals hereto) and
not otherwise defined herein shall have the meanings ascribed thereto in the Indenture. The
incorporation by reference of terms defined in the Indenture shall survive any termination of the
Indenture until this Agreement is terminated as provided in Section 11 hereof. Any of the
terms defined herein may, unless the context otherwise requires, be used in the singular or the
plural, depending on the reference. References herein to any Section, Appendix, Schedule or
Exhibit shall be to a Section, an Appendix, a Schedule or an Exhibit, as the case may

8

 

be, hereof unless otherwise specifically provided. The use herein of the word “include” or
“including”, when following any general statement, term or matter, shall not be construed to limit
such statement, term or matter to the specific items or matters set forth immediately following
such word or to similar items or matters, whether or not non-limiting language (such as “without
limitation” or “but not limited to” or words of similar import) is used with reference thereto, but
rather shall be deemed to refer to all other items or matters that fall within the broadest
possible scope of such general statement, term or matter. The terms lease and license shall
include sub-lease and sub-license, as applicable. If any conflict or inconsistency exists between
this Agreement and the Indenture, the Indenture shall govern. All references herein to provisions
of the UCC shall include all successor provisions under any subsequent version or amendment to any
Article of the UCC.

SECTION 2. GRANT OF SECURITY.

     2.1 Grant of Security. Each Grantor hereby grants to the Collateral Agent, for the benefit of
the Secured Parties, to secure the Secured Obligations, a security interest in and continuing lien
on all of such Grantor’s right, title and interest in, to and under all personal property of any
kind owned by such Grantor relating to such Grantor’s Resort Facility or used or useful in
connection therewith, in each case whether now owned or existing or hereafter acquired or arising
and wherever the same may be located, including without limitation the following (all of which
being hereinafter collectively referred to as the “Collateral”):

          (a) Accounts;

          (b) Chattel Paper;

          (c) Documents;

          (d) General Intangibles;

          (e) Goods (including, without limitation, Inventory and Equipment);

          (f) Instruments;

          (g) Insurance;

          (h) IP Collateral;

          (i) Investment Related Property (including, without
limitation, Deposit Accounts, Cash Equivalents, Securities Accounts
and the Collateral Accounts);

          (j) Letter of Credit Rights;

          (k) Money;

          (l) Receivables and Receivable Records;

          (m) Fixtures;

          (n) Commercial Tort Claims now or hereafter described on Schedule 5.3(III) attached
hereto;

9

 

          (o) Licenses;

          (p) Assigned Agreements, including, without limitation, (i) all rights of such Grantor to
receive moneys due and to become due under or pursuant to the Assigned Agreements, (ii) all rights
of such Grantor to receive proceeds of any insurance, bond, indemnity, warranty or guaranty with
respect to the Assigned Agreements, (iii) all claims of such Grantor for damages arising out of or
for breach of or default under the Assigned Agreements and (iv) all rights of such Grantor to
terminate, amend, supplement, modify or waive performance under the Assigned Agreements, to perform
thereunder and to compel performance and otherwise to exercise all remedies thereunder;

          (q) all Collateral Records, Collateral Support and Supporting Obligations, relating to the
applicable Resort Facility; and

          (r) to the extent not otherwise included above, all Proceeds, products, accessions, rents and
profits of or in respect of any of the foregoing.

     2.2 Certain Limited Exclusions. Notwithstanding anything herein to the contrary, in no event
shall the Collateral include or the security interest granted under Section 2.1 hereof
attach to:

          (a) any asset to the extent that the grant of a security interest in such asset is prohibited
by any applicable law or requires a consent not obtained of any governmental authority pursuant to
applicable law;

          (b) any right, title or interest in any permit, lease, license, contract or agreement held by
any Grantor or to which any Grantor is a party or any of its right, title or interest thereunder
that would otherwise constitute Collateral to the extent, but only to the extent, that (i) such a
grant would, under the terms of such permit, lease, license, contract or agreement, require the
consent of any Person other than the Parent or any of its Subsidiaries or controlled Affiliates as
a condition to the assignment thereof or to the creation by such Grantor of a Lien thereon or (ii)
such a grant is prohibited by or in violation of (1) any law, rule or regulation applicable to such
Grantor or (2) a term, provision or condition of any such permit, lease, license, contract or
agreement, in the case of the foregoing clauses (1) and (2), when such law, rule, regulation, term,
provision or condition would be rendered ineffective with respect to the creation of the security
interest pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provisions)
of any relevant jurisdiction or principles of equity); provided, that immediately upon the
ineffectiveness, lapse or termination of any such provision, such right, title or interest in such
permit, lease, license, contract or agreement shall cease to be an “Excluded Asset” (and the
security interest granted hereunder shall immediately attach);

          (c) the Capital Stock of the Issuers, Parent Guarantors or any Subsidiary of the Parent;

          (d) applications for any Trademarks that have been filed with the U.S. Patent and Trademark
Office on the basis of an “intent to use” with respect to such Trademarks;

          (e) any motor vehicles, vessels and aircraft or other property subject to a certificate of
title statute of any jurisdiction;

          (f) any intercompany debt obligations;

10

 

          (g) assets located outside of the United States to the extent a Lien on such assets cannot be
created and perfected under United States federal or state law; and

          (h) any asset of a Grantor that is subject to an Excepted Lien to the extent the documents
relating to such Excepted Lien would not permit such asset to be subject to the Liens created under
the Collateral Documents; provided, that immediately upon the ineffectiveness, lapse or termination
of any such restriction, such asset shall cease to be an “Excluded Asset” (and the security
interest granted hereunder shall immediately attach).

SECTION 3. SECURED OBLIGATIONS; GRANTORS REMAIN LIABLE.

     3.1 Secured Obligations. This Agreement secures, and the Collateral is collateral security
for, the performance of the covenants and agreements of each Grantor contained in the Indenture,
this Agreement, the other Notes Documents and related documents, and, among other obligations, the
prompt and complete payment and performance in full when due, whether at stated maturity, by
required prepayment, declaration, acceleration, repurchase, redemption, demand or otherwise
(including the payment of amounts that would become due but for the operation of the automatic stay
under Section 362(a) of the Bankruptcy Law (and any successor provision thereof)) of the following:

          (a) all of the obligations and liabilities of each of the Grantors to the Trustee, the
Collateral Agent or any Secured Party, whether direct or indirect, absolute or contingent, due or
to become due, or now existing or hereafter incurred, which may arise under, out of, or in
connection with, the Indenture, the other Notes Documents and related documents to which any
Grantor is party, made, delivered or given in connection with any of the foregoing, in each case
whether such obligations and liabilities are on account of principal, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities payable (including, without
limitation, all fees and disbursements of counsel to the Collateral Agent or to the Secured
Parties) that are required to be paid by the Co-Issuers pursuant to the terms of any of the
foregoing agreements;

          (b) all covenants and agreements, obligations, liabilities and other obligations of any kind
(including, without limitation, principal, interest, fees, reimbursement obligations,
administrative costs and indemnities) of each Grantor, or combination thereof, now existing or
arising in the future from time to time under or in respect of this Agreement, the Indenture and
the other Notes Documents and related documents to which any Grantor is a party;

          (c) any and all other amounts, liabilities, and obligations for which or for the performance
of which any Grantor or any combination thereof is or may become indebted or obligated under the
terms of this Agreement, the Indenture and the other Notes Documents and related documents to which
any Grantor is a party;

          (d) any and all renewals, increases, rearrangements, modifications, supplements, restatements
and extensions of the foregoing items of indebtedness and obligations; and

          (e) costs and expenses of collection (including, without limitation, reasonable attorneys’
fees and expenses), actually incurred by the Collateral Agent in obtaining performance of, or in
collecting any payments due under, the Indenture and the other Notes Documents and related
documents to which any Grantor is a party, commissions, expenses, charges, reimbursement
obligations, indemnification obligations, reasonable fees and expenses

11

 

due and payable to any Secured Party under the Indenture and the other Notes Documents and
such related documents.

     Each and every such indebtedness, liability and obligation of any kind of any Grantor
described and included in this Agreement, whether such item is absolute or contingent, due or not
due, liquidated or unliquidated, arising under or in connection with the Indenture, this Agreement
and the other Notes Documents or any of them (including, without limitation, the foregoing) is
intended to be fully secured by the liens, assignments, and security interests created under and by
virtue of this Agreement, and all such items so secured (now or hereafter existing or arising) are
hereinafter collectively referred to herein as the “Secured Obligations.”

     3.2 Continuing Liability Under Collateral. Notwithstanding anything herein to the contrary,
(a) each Grantor shall remain liable for all obligations under the Collateral and nothing contained
herein is intended or shall be a delegation of duties to the Collateral Agent or any other Secured
Party, (b) each Grantor shall remain liable under each of the Assigned Agreements included in the
Collateral to perform all of the obligations undertaken by it thereunder all in accordance with and
pursuant to the terms and provisions thereof, and neither the Collateral Agent nor any other
Secured Party shall have any obligation or liability under any of such agreements by reason of or
arising out of this Agreement or any other document related thereto, nor shall the Collateral Agent
nor any other Secured Party have any obligation to make any inquiry as to the nature or sufficiency
of any payment received by it or have any obligation to take any action to collect or enforce any
rights under any Assigned Agreement included in the Collateral, and (c) the exercise by the
Collateral Agent of any of its rights hereunder shall not release any Grantor from any of its
duties or obligations under the Assigned Agreements included in the Collateral.

SECTION 4. PERFECTION REQUIREMENTS

     Each Grantor shall deliver to the Collateral Agent all UCC financing statements or
continuation statements as may be necessary or desirable, or as the Collateral Agent may reasonably
request, in order to effect, reflect, perfect or preserve any security interest or Lien granted to
the Collateral Agent.

SECTION 5. REPRESENTATIONS AND WARRANTIES.

Each Grantor hereby represents and warrants, on the Effective Date, that:

     5.1 Due Authorization and Execution.

          (a) Such Grantor is a duly formed and validly existing limited liability company under the law
of the state or commonwealth of its formation and, if applicable, in good standing under the laws
of the state or commonwealth of its formation and under the laws of the states or commonwealths in
which the Resort Facility affiliated with such Grantor is located.

          (b) Such Grantor has full right, authority and power to enter into this Agreement, to
consummate the transactions contemplated herein and to perform its obligations hereunder and under
those Notes Documents to which it is a party.

          (c) Each of the persons executing this Agreement on behalf of such Grantor is authorized to do
so.

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          (d) This Agreement constitutes a valid and legally binding obligation of such Grantor
enforceable against such Grantor in accordance with its terms.

     5.2 Grantor Information and Status.

          (a) Schedules 5.2(A) and 5.2(B) attached hereto (as such schedule may be
amended or supplemented from time to time) set forth under the appropriate headings: (i) the full
legal name of such Grantor, (ii) all trade names or other names under which such Grantor currently
conducts business, (iii) the type of organization of such Grantor, (iv) the jurisdiction of
organization of such Grantor, (v) its organizational identification number, if any, and (vi) the
jurisdiction where the chief executive office or its sole place of business is located.

          (b) Except as provided on Schedule 5.2(C) attached hereto, such Grantor has not
changed its name, jurisdiction of organization, chief executive office or sole place of business or
its corporate structure in any way (e.g., by merger, consolidation, change in corporate form or
otherwise) and has not done business under any other name, in each case, within the past five (5)
years.

          (c) Except as provided on Schedule 5.2(D) attached hereto, such Grantor has not within
the last five (5) years become bound (whether as a result of merger or otherwise) as debtor under a
security agreement entered into by another Person, which has not heretofore been terminated.

          (d) Such Grantor has been duly organized and is validly existing as an entity of the type as
set forth opposite such Grantor’s name on Schedule 5.2(A) attached hereto solely under the
laws of the jurisdiction as set forth opposite such Grantor’s name on Schedule 5.2(A)
attached hereto and remains duly existing as such. Such Grantor has not filed any certificates of
dissolution or liquidation, any certificates of domestication, transfer or continuance in any other
jurisdiction.

          (e) Such Grantor is not a “transmitting utility” (as defined in Section 9-102(a)(80) of the
UCC).

     5.3 Collateral Identification and Special Collateral.

          (a) Schedule 5.3 attached hereto (as such schedule may be amended or supplemented from
time to time) sets forth under the appropriate headings all of such Grantor’s: (i) material Pledged
Debt; (ii) material Securities Accounts, (iii) material Deposit Accounts, (iv) material Commodity
Contracts and Commodity Accounts, (v) United States and foreign registrations and issuances of and
applications for material Patents, Trademarks, and Copyrights owned by such Grantor, (vi) material
Patent Licenses, Trademark Licenses, Trade Secret Licenses and Copyright Licenses, (vii) material
Commercial Tort Claims, (viii) material Letter of Credit Rights for letters of credit, (ix) the
name and address of any warehouseman, bailee or other third party in possession of any material
portion of such Grantor’s Inventory, Equipment and other tangible personal property, and (x)
Material Contracts.

          (b) All information supplied by such Grantor with respect to any of the Collateral (in each
case taken as a whole with respect to any particular Collateral) is accurate and complete in all
material respects.

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          (c) None of the personal property included in the Collateral is located in any country other
than the United States.

          (d) As of the Effective Date, there is no material property or asset of any Grantor
constituting an Excluded Asset pursuant to Section 2.2(a) hereof.

          (e) The Collateral, the Mortgaged Property, the Excluded Assets and the Excluded Real Property
are all of the material assets used in connection with the Mortgaged Properties and in the business
activities of the Grantors.

     5.4 Ownership of Collateral and Absence of Other Liens.

          (a) Such Grantor owns the Collateral purported to be owned by it or otherwise has the rights
it purports to have in each item of Collateral and, as to all Collateral whether now existing or
hereafter acquired, developed or created (including by way of lease or license), will continue to
own or have such rights in each item of the Collateral (except as otherwise permitted by the
Indenture or as would not have a Material Adverse Effect), in each case free and clear of any and
all Liens, rights or claims of all other Persons, including, without limitation, liens arising as a
result of such Grantor becoming bound (as a result of merger or otherwise) as debtor under a
security agreement entered into by another Person other than any Permitted Collateral Liens.

          (b) Other than any UCC financing statements filed in favor of the Collateral Agent, no
effective UCC financing statement, fixture filing or other instrument similar in effect under any
applicable law covering all or any part of the Collateral is on file in any filing or recording
office except for (i) UCC financing statements for which duly authorized proper termination
statements have been delivered to the Collateral Agent for filing on the date hereof and (ii) UCC
financing statements filed in connection with Permitted Collateral Liens.

          (c) No Person (other than the applicable Grantor) is in Control of any Collateral.

     5.5 Status of Security Interest.

          (a) Upon the filing of UCC financing statements naming such Grantor as “debtor” and the
Collateral Agent as “secured party” and describing the Collateral in the filing offices set forth
opposite such Grantor’s name on Schedule 5.5 attached hereto (as such schedule may be
amended or supplemented from time to time), the security interest of the Collateral Agent in all
Collateral that can be perfected by the filing of a financing statement under the UCC as in effect
in any jurisdiction will constitute a valid, perfected, first priority Liens subject, in the case
of priority only, to any Permitted Collateral Liens with respect to Collateral.

          (b) No authorization, consent, approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body or any other Person is required for either (i) the
pledge or grant by any Grantor of the Liens purported to be created in favor of the Collateral
Agent hereunder or (ii) the exercise by the Collateral Agent of any rights or remedies in respect
of any Collateral (whether specifically granted or created hereunder or created or provided for by
applicable law), except for the filings contemplated by clause (a) above.

     5.6 Goods and Receivables.

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          (a) Other than any Inventory or Equipment (i) in transit or (ii) having an aggregate value not
in excess of $250,000, all of the Equipment and Inventory included in the Collateral is located
only at the locations specified in Schedule 5.6 attached hereto (as such schedule may be
amended or supplemented from time to time).

     5.7 Intellectual Property.

          (a) Except as would not have a Material Adverse Effect, such Grantor is the sole and exclusive
owner of the entire right, title, and interest in and to all Intellectual Property listed on
Schedule 5.3(II) attached hereto (as such schedule may be amended or supplemented from time
to time), and owns or has the valid right to use and, where such Grantor does so, sublicense others
to use, all other Intellectual Property used in or necessary to conduct its business, free and
clear of all Liens, claims, encumbrances and licenses, except for, in the case of priority only,
Permitted Collateral Liens and the licenses set forth on Schedule 5.3(II) attached hereto
(as such schedule may be amended or supplemented from time to time);

          (b) Except as would not have a Material Adverse Effect, all Intellectual Property of such
Grantor is subsisting and has not been adjudged invalid or unenforceable, in whole or in part, nor,
in the case of Patents, is any of the Intellectual Property the subject of a reexamination
proceeding, and such Grantor has performed all acts and has paid all renewal, maintenance, and
other fees and taxes required to maintain each and every registration and application of
Copyrights, Patents and Trademarks of such Grantor in full force and effect.

          (c) Except as would not have a Material Adverse Effect, all Intellectual Property is valid and
enforceable. Except as would not have a Material Adverse Effect, no holding, decision, ruling, or
judgment has been rendered in any action or proceeding before any court or administrative authority
challenging the validity, enforceability, or scope of, or such Grantor’s right to register, own or
use, any Intellectual Property of such Grantor, and no such action or proceeding is pending or, to
the best of such Grantor’s knowledge, threatened.

          (d) Except as would not have a Material Adverse Effect, all registrations, issuances and
applications for Copyrights, Patents and Trademarks of such Grantor are standing in the name of
such Grantor, and none of the Trademarks, Patents, Copyrights or Trade Secrets owned by such
Grantor has been licensed by such Grantor to any Affiliate or third party, except as disclosed in
Schedule 5.3(II) attached hereto (as such schedule may be amended or supplemented from time
to time), and all exclusive Copyright Licenses in respect of registered Copyrights have been
properly recorded in the U.S. Copyright Office or, where appropriate, any foreign counterpart.

          (e) Except as would not have a Material Adverse Effect, all Copyrights owned by such Grantor
have been registered with the United States Copyright Office or, where appropriate, any foreign
counterpart.

          (f) Except as would not have a Material Adverse Effect, such Grantor has not made a previous
assignment, sale, transfer, exclusive license, or similar arrangement constituting a present or
future assignment, sale, transfer, exclusive license or similar arrangement of any Intellectual
Property that has not been terminated or released.

          (g) Except as would not have a Material Adverse Effect, such Grantor has been using
appropriate statutory notice of registration in connection with the use of registered

15

 

Trademarks, proper marking practices in connection with its use of Patents, and appropriate
notice of copyright in connection with the publication of Copyrights.

          (h) Except as would not have a Material Adverse Effect, such Grantor has taken commercially
reasonable steps to protect the confidentiality of its Trade Secrets in accordance with industry
standards.

          (i) Except as would not have a Material Adverse Effect, such Grantor controls the nature and
quality of all products sold and all services rendered under or in connection with all Trademarks
of such Grantor, in each case consistent with industry standards, and has taken all action
necessary to insure that all licensees of the Trademarks owned by such Grantor comply with such
Grantor’s standards of quality.

          (j) To the knowledge of such Grantor, the conduct of such Grantor’s business does not
materially infringe, misappropriate, dilute or otherwise violate any Intellectual Property right of
any other Person. No claim has been made in writing that the use of any material Intellectual
Property owned or used by such Grantor (or any of its respective licensees) infringes,
misappropriates, dilutes or otherwise violates the asserted rights of any other Person, and no
demand that such Grantor enter into a license or co-existence agreement has been made but not
resolved.

          (k) To the best of such Grantor’s knowledge, except as would not have a Material Adverse
Effect, no Person is infringing upon, misappropriating, diluting or otherwise violating any rights
in any Intellectual Property owned, licensed or used by such Grantor, or any of its respective
licensees; and

          (l) No settlement or consents, covenants not to sue, co-existence agreements, non-assertion
assurances, or releases have been entered into by Grantor or binds Grantor in a manner that could
adversely affect Grantor’s rights to own, license or use any material Intellectual Property.

     5.8 Miscellaneous.

          (a) No Material Contract prohibits assignment or requires consent of or notice to any Person
in connection with the assignment to the Collateral Agent hereunder, except such as has been given
or made.

SECTION 6. COVENANTS AND AGREEMENTS.

Each Grantor hereby covenants and agrees as follows with respect to all provisions of this
Section 6.

     6.1 Grantor Information and Status.

          (a) Without limiting any prohibitions or restrictions on mergers or other transactions set
forth in the Indenture, it shall not change such Grantor’s name, identity, Federal Taxpayer
Identification Number or state organizational identification number, type of organization or
jurisdiction of organization unless it shall have (a) notified the Collateral Agent in writing at
least thirty (30) days prior to any such change or establishment, identifying such new proposed
name, identity or jurisdiction of organization and providing such other information in connection
therewith as the Collateral Agent may reasonably request and (b) taken all actions

16

 

necessary or advisable to maintain the continuous validity, perfection and the same or better
priority of the Collateral Agent’s security interest in the Collateral granted or intended to be
granted and agreed to hereby to the extent such perfection and priority can be maintained by the
filing of UCC financing statements , which in the case of any merger or other change in corporate
structure shall include, without limitation, executing and delivering to the Collateral Agent a
completed Pledge Supplement together with all Supplements to Schedules thereto, upon completion of
such merger or other change in corporate structure confirming the grant of the security interest
hereunder.

     6.2 Collateral Identification; Special Collateral.

          (a) As soon as available, and in any event within 90 days after the end of each Grantor’s
fiscal year, commencing with the fiscal year in which the Effective Date occurs, each Grantor shall
deliver to the Collateral Agent an Officers’ Certificate (i) either confirming that there has been
no change in information, including any material amendments to any Material Contract, since the
date of the Schedules 5.1, 5.2 and 5.5 delivered on the Effective Date or the date of the
most recent Schedules 5.1, 5.2 and 5.5 delivered pursuant to this Section 6.2(a)
and/or identifying such changes and (ii) certifying that all UCC financing statements (including
fixtures filings, as applicable) have been filed of record in each governmental, municipal or other
appropriate office in each jurisdiction identified pursuant to clause (i) above (or in such
Schedule) to the extent necessary to effect, protect and perfect the security interests under the
Security Documents for a period of not less than 18 months after the date of such certificate
(except as noted therein with respect to any continuation statements to be filed within such
period).

          (b) In the event that such Grantor hereafter acquires or has any material Commercial Tort
Claim, it shall deliver to the Collateral Agent a completed Pledge Supplement together with all
Supplements to Schedules thereto, identifying such new Commercial Tort Claims.

     6.3 Ownership of Collateral and Absence of Other Liens.

          (a) Except for the security interest created by this Agreement, it shall not create or suffer
to exist any Lien upon or with respect to any of the Collateral, other than Permitted Collateral
Liens, and such Grantor shall defend the Collateral against all Persons at any time claiming any
interest therein.

          (b) Upon such Grantor or any officer of such Grantor obtaining knowledge thereof, it shall
promptly notify the Collateral Agent in writing of any event that has a Material Adverse Effect on
the value of the Collateral or any portion thereof, the ability of such Grantor or the Collateral
Agent to dispose of the Collateral or any portion thereof, or the rights and remedies of the
Collateral Agent in relation thereto, including, without limitation, the levy of any legal process
against the Collateral or any portion thereof.

          (c) Such Grantor shall not sell, transfer or assign (by operation of law or otherwise) or
exclusively license to another Person any Collateral except as otherwise permitted by the
Indenture.

     6.4 Status of Security Interest.

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          (a) Subject to the limitations set forth in Section 6.4(b) hereof, such Grantor shall
maintain the security interest of the Collateral Agent hereunder in all Collateral as valid,
perfected, first priority Liens (subject to Permitted Collateral Liens).

          (b) Notwithstanding the foregoing, no Grantor shall be required to take any action to perfect
any Collateral that can only be perfected by (i) Control, (ii) foreign or domestic filings with
respect to Intellectual Property or (iii) filings with registrars or similar governmental
authorities of motor vehicles, vessels, aircraft or other property covered by a certificate of
title.

     6.5 Goods and Receivables.

          (a) Such Grantor shall keep the Equipment, Inventory and any Documents evidencing any
Equipment and Inventory in the locations specified on Schedule 5.6 attached hereto (as such
schedule may be amended or supplemented from time to time) unless it shall have notified the
Collateral Agent in writing, by executing and delivering to the Collateral Agent a completed Pledge
Supplement, together with all Supplements to Schedules thereto, at least thirty (30) days prior to
any change in locations, identifying such new locations and providing such other information in
connection therewith as the Collateral Agent may reasonably request.

     6.6 Intellectual Property.

          (a) Such Grantor shall not do any act or omit to do any act whereby any of the Intellectual
Property that is material to the business of such Grantor or otherwise of material value may lapse,
or become abandoned, canceled, dedicated to the public, forfeited, unenforceable or otherwise
impaired, or which would adversely affect the validity, grant or enforceability of the security
interest granted therein unless such Grantor shall have previously determined that the pursuit or
maintenance of such Intellectual Property is no longer desirable in the conduct of such Grantor’s
business and that the loss thereof would not have a Material Adverse Effect.

          (b) Such Grantor shall not, with respect to any Trademark that is material to the business of
such Grantor or otherwise of material value, cease the use of any of such Trademark or fail to
maintain the level of the quality of products sold and services rendered under any of such
Trademark at a level at least substantially consistent with the quality of such products and
services as of the Effective Date, and such Grantor shall take all steps necessary to insure that
licensees of such Trademarks use such consistent standards of quality.

          (c) Such Grantor shall, within thirty (30) days of the creation or acquisition or exclusive
license of any copyrightable work that is material to the business of such Grantor or otherwise of
material value, apply to register the Copyright in the United States Copyright Office or, where
appropriate, any foreign counterpart and, in the case of an exclusive Copyright License in respect
of a registered U.S. Copyright, record such license, in the United States Copyright Office.

          (d) Such Grantor shall promptly notify the Collateral Agent if it knows or has reason to know
that any item of Intellectual Property that is material to the business of such Grantor or
otherwise of material value may become (i) abandoned or dedicated to the public or placed in the
public domain, (ii) invalid or unenforceable, (iii) subject to any adverse determination or
development regarding such Grantor’s ownership, registration or use or the validity or
enforceability of such item of Intellectual Property (including the institution of, or any adverse
development with respect to, any action or proceeding in the United States Patent and

18

 

Trademark Office, the United States Copyright Office, any state registry, any foreign
counterpart of the foregoing, or any court) or (iv) the subject of any reversion or termination
rights.

          (e) Such Grantor shall take all reasonable steps, including in any proceeding before the
United States Patent and Trademark Office, the United States Copyright Office, any state registry
or any foreign counterpart of the foregoing, to pursue any application and maintain any
registration or issuance of each Trademark, Patent, and Copyright owned by or exclusively licensed
to such Grantor, including, but not limited to, those items on Schedule 5.2(II) attached
hereto (as such schedule may be amended or supplemented from time to time) that is, in each case,
material to the business of such Grantor or otherwise of material value.

          (f) In the event that any Intellectual Property owned by or exclusively licensed to any
Grantor that is material to the business of such Grantor or otherwise of material value is
infringed, misappropriated, diluted or otherwise violated by a third party, such Grantor shall
promptly take all reasonable actions to stop such infringement, misappropriation, dilution or other
violation and protect its rights in such Intellectual Property including, but not limited to, the
initiation of a suit for injunctive relief and to recover damages;

          (g) Such Grantor shall take all steps reasonably necessary to protect the secrecy of all Trade
Secrets that are material to the business of such Grantor, including, without limitation, entering
into confidentiality agreements with employees and consultants and labeling and restricting access
to secret information and documents.

          (h) Such Grantor shall use proper statutory notice in connection with its use of any of the
Intellectual Property that is material to the business of such Grantor.

          (i) Such Grantor shall continue to collect, at its own expense, all amounts due or to become
due to such Grantor in respect of the Intellectual Property or any portion thereof. In connection
with such collections, such Grantor may take (and, at the Collateral Agent’s reasonable direction,
shall take) such action as such Grantor or the Collateral Agent may deem reasonably necessary or
advisable to enforce collection of such amounts. Notwithstanding the foregoing, the Collateral
Agent shall have the right at any time during the occurrence and continuation of an Event of
Default, to notify, or require any Grantor to notify, any obligors with respect to any such amounts
of the existence of the security interest created hereby.

SECTION 7. ACCESS; RIGHT OF INSPECTION; INSURANCE AND FURTHER ASSURANCES.

     7.1 Access; Right of Inspection; Insurance.

          (a) Upon reasonable prior notice to the Grantor and accompanied by a representative of the
Grantor and subject to the rights of any tenants or other occupants of the property, the Collateral
Agent shall have access during normal business hours to all the books, correspondence and records
of each Grantor, and the Collateral Agent and its representatives may examine the same, take
extracts therefrom and make photocopies thereof, and each Grantor agrees to render to the
Collateral Agent, at such Grantor’s cost and expense, such clerical and other assistance as may be
reasonably requested with regard thereto. Upon reasonable prior notice to the Grantor and
accompanied by a representative of the Grantor and subject to the rights of any tenants or other
occupants of the property, the Collateral Agent and its representatives shall during normal
business hours also have the right to enter any premises of each Grantor and inspect any property
of each Grantor where any of the Collateral of such Grantor granted

19

 

pursuant to this Agreement is located for the purpose of inspecting the same, observing its
use or otherwise protecting its interests therein.

          (b) The Grantors will maintain or cause to be maintained, with financially sound and reputable
(in each case, in the judgment of the applicable Grantor) insurers, such public liability
insurance, third party property damage insurance, business interruption insurance and casualty
insurance with respect to liabilities, losses or damage in respect of the Collateral of the
Grantors as may customarily be carried or maintained under similar circumstances by Persons of
established reputation engaged in similar businesses, in each case in such amounts (giving effect
to self insurance), with such deductibles, covering such risks and otherwise on such terms and
conditions as shall be customary for such Persons. Without limiting the generality of the
foregoing, the Grantors will maintain or cause to be maintained replacement value casualty
insurance on the Collateral under such policies of insurance, with such insurance companies, in
such amounts on an “all-risk” basis, with such deductibles, and covering such risks as are at all
times carried or maintained under similar circumstances by Persons of established reputation
engaged in similar businesses, with (except for self insurance) financially sound and reputable (in
each case, in the judgment of the applicable Grantor) insurers or with the government of the United
States of America or an agency or instrumentality thereof, in such amounts, with such deductibles,
and by such methods as shall be customary, in the reasonable, good faith opinion of the applicable
Grantor and adequate and appropriate for the conduct of the business of the Grantors and their
respective Subsidiaries in a prudent manner for entities similarly situated in the industry. Each
such policy of insurance shall name the Collateral Agent, on behalf of the Secured Parties, as an
additional insured thereunder as its interests may appear and provide for at least 30 days’ prior
written notice to the Collateral Agent of any modification or cancellation of such policy.

     7.2 Further Assurances.

          (a) Each Grantor agrees that from time to time, at the expense of such Grantor, it shall
promptly execute and deliver, as applicable, all further instruments and documents and take all
further actions that may be necessary or desirable, or that the Collateral Agent may reasonably
request, in order to create and/or maintain the validity, perfection or priority of and protect any
security interest granted or purported to be granted hereby, subject to the limitations contained
herein, or to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder
with respect to any Collateral:

          (i) file such financing or continuation statements, or amendments thereto,
as may be necessary or desirable, or as the Collateral Agent may reasonably request, in
order to effect, reflect, perfect and preserve the security interests granted or purported
to be granted hereby;

          (ii) at any reasonable time and with reasonable notice, upon request by the
Collateral Agent, assemble the Collateral and allow inspection of the Collateral by the
Collateral Agent, or persons designated by the Collateral Agent;

          (iii) at the Collateral Agent’s request, appear in and defend any action or
proceeding that may affect such Grantor’s title to or the Collateral Agent’s security
interest in all or any part of the Collateral; and

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          (iv) furnish the Collateral Agent with such information regarding the
Collateral, including, without limitation, the location thereof, as the Collateral Agent
may reasonably request from time to time.

          (b) Each Grantor hereby authorizes the Collateral Agent to file financing or continuation
statements as the Collateral Agent may determine, in its sole discretion, are necessary or
advisable to perfect or otherwise protect the security interest granted to the Collateral Agent
herein. Such UCC financing statements may describe the Collateral in the same manner as described
herein or may contain an indication or description of collateral that describes such property in
any other manner as the Collateral Agent may determine, in its sole discretion, is necessary,
advisable or prudent to ensure the perfection of the security interest in the Collateral granted to
the Collateral Agent herein, including, without limitation, describing such property as “all
assets, whether now owned or hereafter acquired, developed or created” or words of similar effect.
Each Grantor shall furnish to the Collateral Agent from time to time statements and schedules
further identifying and describing the Collateral and such other reports in connection with the
Collateral as the Collateral Agent may reasonably request, all in reasonable detail.

          (c) Each Grantor hereby authorizes the Collateral Agent to modify this Agreement after
obtaining such Grantor’s approval of or signature to such modification by amending Schedule
5.2 attached hereto (as such schedule may be amended or supplemented from time to time) to
include reference to any right, title or interest in any existing Intellectual Property or any
Intellectual Property acquired or developed by any Grantor after the execution hereof or to delete
any reference to any right, title or interest in any Intellectual Property in which any Grantor no
longer has or claims any right, title or interest.

SECTION 8. COLLATERAL AGENT APPOINTED ATTORNEY-IN-FACT.

     8.1 Power of Attorney. Each Grantor hereby irrevocably appoints the Collateral Agent (such
appointment being coupled with an interest) as such Grantor’s attorney-in-fact, with full authority
in the place and stead of such Grantor and in the name of such Grantor, the Collateral Agent or
otherwise, from time to time in the Collateral Agent’s discretion to take any of the following
actions, and to execute any instrument in connection therewith, that the Collateral Agent may deem
reasonably necessary or advisable to accomplish the purposes of this Agreement, including, without
limitation, the following:

          (a) upon the occurrence and during the continuance of any Event of Default, to obtain and
adjust insurance required to be maintained by such Grantor or paid to the Collateral Agent pursuant
to the Indenture;

          (b) upon the occurrence and during the continuance of any Event of Default, to ask for,
demand, collect, sue for, recover, compound, receive and give acquittance and receipts for moneys
due and to become due under or in respect of any of the Collateral;

          (c) upon the occurrence and during the continuance of any Event of Default, to receive,
endorse and collect any drafts or other instruments, documents and chattel paper in connection with
clause (b) above;

          (d) upon the occurrence and during the continuance of any Event of Default, to file any claims
or take any action or institute any proceedings that the Collateral Agent may deem necessary or
desirable for the collection of any of the Collateral or otherwise to enforce the rights of the
Collateral Agent with respect to any of the Collateral;

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          (e) to prepare and file any UCC financing statements against such Grantor as debtor;

          (f) to take or cause to be taken all actions necessary to perform or comply or cause
performance or compliance with the terms of this Agreement, including, without limitation, access
to pay or discharge taxes or Liens (other than Permitted Collateral Liens) levied or placed upon or
threatened against the Collateral, the legality or validity thereof and the amounts necessary to
discharge the same to be determined by the Collateral Agent in its sole discretion, any such
payments made by the Collateral Agent to become obligations of such Grantor to the Collateral
Agent, due and payable immediately without demand; and

          (g) generally to sell, transfer, lease, license, pledge, make any agreement with respect to or
otherwise deal with any of the Collateral as fully and completely as though the Collateral Agent
were the absolute owner thereof for all purposes, and to do, at the Collateral Agent’s option and
such Grantor’s expense, at any time or from time to time, all acts and things that the Collateral
Agent deems reasonably necessary to protect, preserve or realize upon the Collateral and the
Collateral Agent’s security interest therein in order to effect the intent of this Agreement, all
as fully and effectively as such Grantor might do.

     8.2 No Duty on the Part of Collateral Agent or Secured Parties. The powers conferred on
the Collateral Agent hereunder are solely to protect the interests of the Secured Parties in the
Collateral and shall not impose any duty upon the Collateral Agent or any other Secured Party to
exercise any such powers. The Collateral Agent and the other Secured Parties shall be accountable
only for amounts that they actually receive as a result of the exercise of such powers, and neither
they nor any of their officers, directors, employees or agents shall be responsible to any Grantor
for any act or failure to act hereunder, except for their own gross negligence or willful
misconduct.

SECTION 9. REMEDIES.

     9.1 Generally.

          (a) If any Event of Default shall have occurred and be continuing, the Collateral Agent may
exercise in respect of the Collateral, in addition to all other rights and remedies provided for
herein or otherwise available to it at law or in equity, all the rights and remedies of the
Collateral Agent on default under the UCC (whether or not the UCC applies to the affected
Collateral) to collect, enforce or satisfy any Secured Obligations then owing, whether by
acceleration or otherwise, and also may pursue any of the following separately, successively or
simultaneously:

          (i) require any Grantor to, and each Grantor hereby agrees that it shall at
its expense and promptly upon request of the Collateral Agent forthwith, assemble all or
part of the Collateral as directed by the Collateral Agent and make it available to the
Collateral Agent at a place to be designated by the Collateral Agent that is reasonably
convenient to both parties;

          (ii) enter onto the property where any Collateral is located and take
possession thereof with or without judicial process;

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          (iii) prior to the disposition of the Collateral, store, process, repair or
recondition the Collateral or otherwise prepare the Collateral for disposition in any
manner to the extent the Collateral Agent deems appropriate; and

          (iv) without notice except as specified below or under the UCC, sell,
assign, lease, license (on an exclusive or nonexclusive basis) or otherwise dispose of the
Collateral or any part thereof in one or more parcels at public or private sale, at any of
the Collateral Agent’s offices or elsewhere, for cash, on credit or for future delivery, at
such time or times and at such price or prices and upon such other terms as the Collateral
Agent may deem commercially reasonable.

          (b) The Collateral Agent or any other Secured Party may be the purchaser of any or all of the
Collateral at any public or private (to the extent to the portion of the Collateral being privately
sold is of a kind that is customarily sold on a recognized market or the subject of widely
distributed standard price quotations) sale in accordance with the UCC and the Collateral Agent, as
collateral trustee for and representative of the Secured Parties, shall be entitled, for the
purpose of bidding and making settlement or payment of the purchase price for all or any portion of
the Collateral sold at any such sale made in accordance with the UCC, to use and apply any of the
Secured Obligations as a credit on account of the purchase price for any Collateral payable by the
Collateral Agent at such sale. Each purchaser at any such sale shall hold the property sold
absolutely free from any claim or right on the part of any Grantor, and each Grantor hereby waives
(to the extent permitted by applicable law) all rights of redemption, stay and/or appraisal which
it now has or may at any time in the future have under any rule of law or statute now existing or
hereafter enacted. Each Grantor agrees that, to the extent notice of sale shall be required by
law, at least ten (10) days notice to such Grantor of the time and place of any public sale or the
time after which any private sale is to be made shall constitute reasonable notification. The
Collateral Agent shall not be obligated to make any sale of Collateral regardless of notice of sale
having been given. The Collateral Agent may adjourn any public or private sale from time to time
by announcement at the time and place fixed therefor, and such sale may, without further notice, be
made at the time and place to which it was so adjourned. Each Grantor agrees that it would not be
commercially unreasonable for the Collateral Agent to dispose of the Collateral or any portion
thereof by using Internet sites that provide for the auction of assets of the types included in the
Collateral or that have the reasonable capability of doing so, or that match buyers and sellers of
assets. Each Grantor hereby waives any claims against the Collateral Agent arising by reason of
the fact that the price at which any Collateral may have been sold at such a private sale was less
than the price which might have been obtained at a public sale, even if the Collateral Agent
accepts the first offer received and does not offer such Collateral to more than one offeree. If
the proceeds of any sale or other disposition of the Collateral are insufficient to pay all the
Secured Obligations, Grantors shall be liable for the deficiency and the fees of any attorneys
employed by the Collateral Agent to collect such deficiency. Each Grantor further agrees that a
breach of any of the covenants contained in this Section 9.1 will cause irreparable injury
to the Collateral Agent, that the Collateral Agent has no adequate remedy at law in respect of such
breach and, as a consequence, that each and every covenant contained in this Section 9.1
shall be specifically enforceable against such Grantor, and such Grantor hereby waives and agrees
not to assert any defenses against an action for specific performance of such covenants except for
a defense that no default has occurred giving rise to the Secured Obligations becoming due and
payable prior to their stated maturities. Nothing in this Section 9.1 shall in any way
limit the rights of the Collateral Agent hereunder.

          (c) The Collateral Agent may sell the Collateral without giving any warranties as to the
Collateral. The Collateral Agent may specifically disclaim or modify any

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warranties of title or the like. This procedure will not be considered to adversely affect
the commercial reasonableness of any sale of the Collateral.

          (d) The Collateral Agent shall have no obligation to marshal any of the Collateral.

     9.2 Application of Proceeds. Except as expressly provided elsewhere in this Agreement or the
Indenture, all proceeds received by the Collateral Agent in respect of any sale of, any collection
from, or other realization upon all or any part of the Collateral shall be applied in full or in
part by the Collateral Agent against, the Secured Obligations in the following order of priority:
first, to the payment of all costs and expenses of such sale, collection or other
realization, and all other expenses, liabilities and advances made or incurred by the Collateral
Agent in connection therewith, and all amounts for which the Collateral Agent is entitled to
indemnification hereunder (in its capacity as the Collateral Agent) and all advances made by the
Collateral Agent hereunder for the account of the applicable Grantor, and to the payment of all
costs and expenses paid or incurred by the Collateral Agent in connection with the exercise of any
right or remedy hereunder or under the Indenture, all in accordance with the terms hereof or
thereof; second, to the extent of any excess of such proceeds, to the payment of all other
Secured Obligations for the ratable benefit of the Secured Parties; and third, to the
extent of any excess of such proceeds, to the payment to or upon the order of the applicable
Grantor or to whosoever may be lawfully entitled to receive the same or as a court of competent
jurisdiction may direct.

     9.3 Sales on Credit. If Collateral Agent sells any of the Collateral upon credit, Grantor
will be credited only with payments actually made by purchaser and received by Collateral Agent and
applied to indebtedness of the purchaser. In the event the purchaser fails to pay for the
Collateral, Collateral Agent may resell the Collateral and Grantor shall be credited with proceeds
of the sale.

     9.4 Investment Related Property. Each Grantor recognizes that, by reason of certain
prohibitions contained in the Securities Act and applicable state securities laws, the Collateral
Agent may be compelled, with respect to any sale of all or any part of the Collateral consisting of
Investment Related Property conducted without prior registration or qualification of such
Investment Related Property under the Securities Act and/or such state securities laws, to limit
purchasers to those who will agree, among other things, to acquire the Investment Related Property
for their own account, for investment and not with a view to the distribution or resale thereof.
Each Grantor acknowledges that any such private sale may be at prices and on terms less favorable
than those obtainable through a public sale without such restrictions (including a public offering
made pursuant to a registration statement under the Securities Act) and, notwithstanding such
circumstances, each Grantor agrees that any such private sale shall be deemed to have been made in
a commercially reasonable manner and that the Collateral Agent shall have no obligation to engage
in public sales and no obligation to delay the sale of any Investment Related Property for the
period of time necessary to permit the issuer thereof to register it for a form of public sale
requiring registration under the Securities Act or under applicable state securities laws, even if
such issuer would, or should, agree to so register it.

     9.5 Grant of Intellectual Property License. For the purpose of enabling the Collateral Agent,
during the continuance of an Event of Default, to exercise rights and remedies under Section
9 hereof at such time as the Collateral Agent shall be lawfully entitled to exercise such
rights and remedies, and for no other purpose, each Grantor hereby grants to the Collateral Agent,
to the extent assignable, an irrevocable, non-exclusive license (exercisable without payment of
royalty or other compensation to such Grantor), subject, in the case of Trademarks, to

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sufficient rights to quality control and inspection in favor of such Grantor to avoid the risk
of invalidation of such Trademarks, to use, assign, license or sublicense any of the Intellectual
Property now owned or hereafter acquired, developed or created by such Grantor, wherever the same
may be located. Such license shall include access to all media in which any of the licensed items
may be recorded or stored and to all computer programs used for the compilation or printout hereof.

     9.6 Intellectual Property.

          (a) Anything contained herein to the contrary notwithstanding, in addition to the other rights
and remedies provided herein, upon the occurrence and during the continuation of an Event of
Default:

          (i) the Collateral Agent shall have the right (but not the obligation) to
bring suit or otherwise commence any action or proceeding in the name of any Grantor, the
Collateral Agent or otherwise, in the Collateral Agent’s sole discretion, to enforce any
Intellectual Property rights of such Grantor, in which event such Grantor shall, at the
request of the Collateral Agent, do any and all lawful acts and execute any and all
documents required by the Collateral Agent in aid of such enforcement and such Grantor
shall promptly, upon demand, reimburse and indemnify the Collateral Agent as provided in
Section 10 hereof in connection with the exercise of its rights under this
Section 9.6, and, to the extent that the Collateral Agent shall elect not to bring
suit to enforce any Intellectual Property rights as provided in this Section 9.6,
each Grantor agrees to use all reasonable measures, whether by action, suit, proceeding or
otherwise, to prevent the infringement, misappropriation, dilution or other violation of
any of such Grantor’s rights in the Intellectual Property by others and for that purpose
agrees to diligently maintain any action, suit or proceeding against any Person so
infringing, misappropriating, diluting or otherwise violating as shall be necessary to
prevent such infringement, misappropriation, dilution or other violation;

          (ii) upon written demand from the Collateral Agent, each Grantor shall
grant, assign, convey or otherwise transfer to the Collateral Agent or such Collateral
Agent’s designee all of such Grantor’s right, title and interest in and to any Intellectual
Property and shall execute and deliver to the Collateral Agent such documents as are
necessary or appropriate to carry out the intent and purposes of this Agreement;

          (iii) each Grantor agrees that such an assignment and/or recording shall be
applied to reduce the Secured Obligations outstanding only to the extent that the
Collateral Agent (or any other Secured Party) receives cash proceeds in respect of the sale
of, or other realization upon, any such Intellectual Property;

          (iv) the Collateral Agent shall have the right to notify, or require each
Grantor to notify, any obligors with respect to amounts due or to become due to such
Grantor in respect of any Intellectual Property of such Grantor, of the existence of the
security interest created herein, to direct such obligors to make payment of all such
amounts directly to the Collateral Agent, and, upon such notification and at the expense of
such Grantor, to enforce collection of any such amounts and to adjust, settle or compromise
the amount or payment thereof, in the same manner and to the same extent as such Grantor
might have done;

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	 	(1)	 	all amounts and proceeds (including checks and other instruments) received by
Grantor in respect of amounts due to such Grantor in respect of the Collateral or any
portion thereof shall be received in trust for the benefit of the Collateral Agent
hereunder, shall be segregated from other funds of such Grantor and shall be forthwith
paid over or delivered to the Collateral Agent in the same form as so received (with
any necessary endorsement) to be held as cash Collateral and applied as provided by
Section 9.7 hereof; and
	 
	 	(2)	 	Grantor shall not adjust, settle or compromise the amount or payment of any
such amount or release wholly or partly any obligor with respect thereto or allow any
credit or discount thereon.

          (b) If (i) an Event of Default shall have occurred and, by reason of cure, waiver,
modification, amendment or otherwise, no longer be continuing, (ii) no other Event of Default shall
have occurred and be continuing, (iii) an assignment or other transfer to the Collateral Agent of
any rights, title and interests in and to any Intellectual Property of such Grantor shall have been
previously made and shall have become absolute and effective, and (iv) the Secured Obligations
shall not have become immediately due and payable, upon the written request of any Grantor, the
Collateral Agent shall promptly execute and deliver to such Grantor, at such Grantor’s sole cost
and expense, such assignments or other transfer as may be necessary to reassign to such Grantor any
such rights, title and interests as may have been assigned to the Collateral Agent as aforesaid,
subject to any disposition thereof that may have been made by the Collateral Agent; provided, after
giving effect to such reassignment, the Collateral Agent’s security interest granted pursuant
hereto, as well as all other rights and remedies of the Collateral Agent granted hereunder, shall
continue to be in full force and effect; and provided further, the rights, title and interests so
reassigned shall be free and clear of any other Liens granted by or on behalf of the Collateral
Agent and the other Secured Parties.

     9.7 Cash Proceeds; Collateral Accounts.

     (a) If any Event of Default shall have occurred and be continuing, in addition to the rights
of the Collateral Agent specified in Section 6.5 hereof with respect to payments of
Receivables, all proceeds of any Collateral received by any Grantor consisting of cash, checks and
other near-cash items (collectively, “Cash Proceeds”) shall be held by such Grantor in trust for
the Collateral Agent, segregated from other funds of such Grantor, and shall, forthwith upon
receipt by such Grantor, be turned over to the Collateral Agent in the exact form received by such
Grantor (duly indorsed by such Grantor to the Collateral Agent, if required) and held by the
Collateral Agent in a Collateral Account. Any Cash Proceeds received by the Collateral Agent
(whether from a Grantor or otherwise) may, in the sole discretion of the Collateral Agent, (A) be
held by the Collateral Agent for the ratable benefit of the Secured Parties, as collateral security
for the Secured Obligations (whether matured or unmatured) and/or (B) then or at any time
thereafter may be applied by the Collateral Agent against the Secured Obligations then due and
owing.

     (b) If any Event of Default shall have occurred and be continuing, the Collateral Agent may
apply the balance from any Collateral Account or instruct the bank at which any Collateral Account
is maintained to pay the balance of any Collateral Account to or for the benefit of the Collateral
Agent.

SECTION 10. COLLATERAL AGENT.

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     10.1 Appointment. The Collateral Agent has been appointed pursuant to the Indenture to act
as Collateral Agent hereunder. The Collateral Agent shall be obligated, and shall have the right
hereunder, to make demands, to give notices, to exercise or refrain from exercising any rights, and
to take or refrain from taking any action (including, without limitation, the release or
substitution of Collateral), solely in accordance with this Agreement and the Indenture. In
furtherance of the foregoing provisions of this Section 10, each Secured Party, by its
acceptance of the benefits hereof, agrees that it shall have no right individually to realize upon
any of the Collateral hereunder, it being understood and agreed by such Secured Party that all
rights and remedies hereunder may be exercised solely by the Collateral Agent for the benefit of
the Secured Parties in accordance with the terms of this Section 10. The provisions of
the Indenture relating to the Collateral Agent including, without limitation, the provisions
relating to resignation or removal of the Collateral Agent, reimbursement of expenses and the
powers and duties and immunities of the Collateral Agent are incorporated herein by this reference
and shall survive any termination of the Indenture.

     10.2 Delegation of Duties. The Collateral Agent may perform any and all of its duties and
exercise its rights and powers under this Agreement by or through any one or more sub-agents
appointed by the Collateral Agent. The Collateral Agent and any such sub-agent may perform any and
all of its duties and exercise its rights and powers by or through their respective Affiliates.
The exculpatory, indemnification and other provisions of Article 7 of the Indenture shall apply to
any the Affiliates of the Collateral Agent and shall apply to their respective activities in
connection with the syndication of the credit facilities provided for herein as well as activities
as the Collateral Agent. All of the rights, benefits, and privileges (including the exculpatory
and indemnification provisions) of Article 7 of the Indenture shall apply to any such sub-agent and
to the Affiliates of any such sub-agent, and shall apply to their respective activities as
sub-agent as if such sub-agent and Affiliates were named herein. Notwithstanding anything herein
to the contrary, with respect to each sub-agent appointed by the Collateral Agent, (a) such
sub-agent shall be a third party beneficiary under this Agreement with respect to all such rights,
benefits and privileges (including exculpatory rights and rights to indemnification) and shall have
all of the rights and benefits of a third party beneficiary, including an independent right of
action to enforce such rights, benefits and privileges (including exculpatory rights and rights to
indemnification) directly, without the consent or joinder of any other Person, against any or all
of the Grantors and the Secured Parties, (a) such rights, benefits and privileges (including
exculpatory rights and rights to indemnification) shall not be modified or amended without the
consent of such sub-agent, and (iii) such sub-agent shall only have obligations to the Collateral
Agent and not to any Grantor, Secured Party or any other Person and no Grantor, Secured Party or
any other Person shall have any rights, directly or indirectly, as a third party beneficiary or
otherwise, against such sub-agent.

SECTION 11. CONTINUING SECURITY INTEREST; TRANSFER OF NOTES.

     This Agreement shall create a continuing security interest in the Collateral and shall remain
in full force and effect until the payment in full of all Secured Obligations, be binding upon each
Grantor, its successors and assigns, and inure, together with the rights and remedies of the
Collateral Agent hereunder, to the benefit of the Collateral Agent and its successors, transferees
and assigns. Without limiting the generality of the foregoing, but subject to the terms of the
Indenture, any Secured Party may assign or otherwise transfer any Notes held by it to any other
Person, and such other Person shall thereupon become vested with all the benefits in respect
thereof granted to such Secured Party herein or otherwise. Upon the payment in full of all Secured
Obligations, (i) the security interest granted hereby shall automatically terminate hereunder and
of record and (ii) all rights to the Collateral shall revert to the Grantors. Upon any

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such termination the Collateral Agent shall, at the Grantors’ expense, execute and deliver to
the Grantors or otherwise authorize the filing of such documents as the Grantors shall reasonably
request, including UCC financing statement amendments to evidence such termination. Upon any
disposition or release of Collateral pursuant to the Indenture, the Liens granted herein upon such
Collateral shall be deemed to be automatically released and such property shall automatically
revert to the applicable Grantor with no further action on the part of any Person. The Collateral
Agent shall, at the applicable Grantor’s expense, execute and deliver or otherwise authorize the
filing of such documents as such Grantor shall reasonably request, in form and substance reasonably
satisfactory to the Collateral Agent, including UCC financing statement amendments to evidence such
release.

SECTION 12. STANDARD OF CARE; COLLATERAL AGENT MAY PERFORM.

     The powers conferred on the Collateral Agent hereunder are solely to protect its interest in
the Collateral and shall not impose any duty upon it to exercise any such powers. Except for the
exercise of reasonable care in the custody of any Collateral in its possession and the accounting
for moneys actually received by it hereunder, the Collateral Agent shall have no duty as to any
Collateral or as to the taking of any necessary steps to preserve rights against prior parties or
any other rights pertaining to any Collateral. The Collateral Agent shall be deemed to have
exercised reasonable care in the custody and preservation of Collateral in its possession if such
Collateral is accorded treatment substantially equal to that which the Collateral Agent accords its
own property. Neither the Collateral Agent nor any of its directors, officers, employees or agents
shall be liable for failure to demand, collect or realize upon all or any part of the Collateral or
for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any
Collateral upon the request of any Grantor or otherwise. If any Grantor fails to perform any
agreement contained herein, the Collateral Agent may itself perform, or cause performance of, such
agreement, and the expenses of the Collateral Agent incurred in connection therewith shall be
payable by each Grantor under Section 7.07 of the Indenture.

     Notwithstanding anything to the contrary herein, the following provisions shall govern the
Collateral Agent’s rights, powers, obligations and duties under this Agreement:

          (a) Notwithstanding anything herein to the contrary, in no event shall the Collateral Agent
have any obligation to inquire or investigate as to the correctness, veracity or content of any
instruction received from the Trustee or pursuant to any other Notes Documents. In no event shall
the Collateral Agent have any liability in respect of any such instruction received by it and
relied on with respect to any action or omission taken pursuant thereto.

          (b) Neither the Collateral Agent nor any of its experts, officers, directors, employees,
agents, attorneys-in-fact or affiliates shall be (i) liable for any action lawfully taken or
omitted to be taken by it under or in connection with this Agreement or any of the other Notes
Documents (except for its gross negligence or willful misconduct), or (ii) responsible in any
manner for any recitals, statements, representations or warranties (other than its own recitals,
statements, representations or warranties) made in this Agreement or any of the other Notes
Documents or in any certificate, report, statement or other document referred to or provided for
in, or received by the Collateral Agent under or in connection with, this Agreement or any of the
other Notes Documents or for the value, validity, effectiveness, genuineness, enforceability or
sufficiency of this Agreement or any of the other Notes Documents or for any failure of the
Grantors or any other Person to perform their obligations hereunder and thereunder. The Collateral
Agent shall not be under any obligation to any Person to ascertain or to inquire as to (i) the
observance or performance of any of the agreements contained in, or conditions of, this

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Agreement or any of the other Notes Documents or to inspect the properties, books or records
of the Grantors, (ii) whether or not any representation or warranty made by any Person in
connection with this Agreement or any of the other Notes Documents is true, (iii) the performance
by any Person of its obligations under this Agreement or any of the other Notes Documents or (iv)
the breach of or default by any Person of its obligations under this Agreement or any of the other
Notes Documents.

          (c) The Collateral Agent shall not be bound to (i) account to any Person for any sum or the
profit element of any sum received for its own account; (ii) disclose to any other Person any
information relating to the Person if such disclosure would, or might, constitute a breach of any
law or regulation or be otherwise actionable at the suit of any Person; (iii) be under any
fiduciary duties or obligations other than those for which express provision is made in this
Agreement or in any of the other Notes Documents to which it is a party; or (iv) be required to
take any action that it believes, based on advice of counsel, is in conflict with any applicable
law, this Agreement or any of the other Notes Documents, or any order of any court or
administrative agency.

          (d) The Collateral Agent shall be authorized to, but shall not be responsible for, filing any
financing or continuation statements or recording any documents or instruments in any public office
at any time or times or otherwise perfecting or monitoring or maintaining the perfection of any
security interest in the Collateral. It is expressly agreed, to the maximum extent permitted by
applicable law, that the Collateral Agent shall have no responsibility for (i) taking any necessary
steps to preserve rights against any Person with respect to any Collateral or (ii) taking any
action to protect against any diminution in value of the Collateral, but, in each case (A) subject
to the requirement that the Collateral Agent may not act or omit to take any action if such act or
omission would constitute gross negligence or willful misconduct and (B) the Collateral Agent may
do so and all expenses reasonably incurred in connection therewith shall be part of the Secured
Obligations.

          (e) The Collateral Agent shall not be liable or responsible for any loss or diminution in the
value of any of the Collateral, by reason of the act or omission of any carrier, forwarding agency
or other agent or bailee selected by the Collateral Agent in good faith, except to the extent of
the Collateral Agent’s gross negligence or willful misconduct.

          (f) The Collateral Agent shall not be responsible for, nor incur any liability with respect
to, (i) the existence, genuineness or value of any of the Collateral or for the validity,
perfection, priority or enforceability of the security interest in any of the Collateral, whether
impaired by operation of law or by reason of any action or omission to act on its part under this
Agreement or any of the other Notes Documents, except to the extent such action or omission
constitutes gross negligence or willful misconduct on the part of the Collateral Agent, (ii) the
validity or sufficiency of the Collateral or any agreement or assignment contained therein, (iii)
the validity of the title of the Grantors to the Collateral, (iv) insuring the Collateral or (v)
the payment of taxes, charges or assessments upon the Collateral or otherwise as to the maintenance
of the Collateral.

          (g) Notwithstanding anything in this Agreement or any of the other Notes Documents to the
contrary, (i) in no event shall the Collateral Agent or any officer, director, employee,
representative or agent of the Collateral Agent be liable under or in connection with this
Agreement or any of the other Collateral Documents for indirect, special, incidental, punitive or
consequential losses or damages of any kind whatsoever, including, but not limited to, lost profits
or loss of opportunity, whether or not foreseeable, even if the Collateral Agent has been

29

 

advised of the possibility thereof and regardless of the form of action in which such damages
are sought; and (ii) the Collateral Agent shall be afforded all of the rights, powers, immunities
and indemnities that are set forth in this Agreement in all of the other Notes Documents to which
it is a signatory as if such rights, powers, immunities and indemnities were specifically set out
in each such Notes Document. In no event shall the Collateral Agent be obligated to invest any
amounts received by it hereunder.

          (h) The Collateral Agent shall be entitled conclusively to rely, and shall be fully protected
in relying, upon any note, writing, resolution, request, direction, certificate, notice, consent,
affidavit, letter, cablegram, telegram, telecopy, email, telex or teletype message, statement,
order or other document or conversation believed by it in good faith to be genuine and correct and
to have been signed, sent or made by the proper Person or Persons and/or upon advice and/or
statements of legal counsel, independent accountants and other experts selected by the Collateral
Agent and need not investigate any fact or matter stated in any such document. Any such statement
of legal counsel shall be full and complete authorization and protection in respect of any action
taken or suffered by it hereunder in accordance therewith. The Collateral Agent shall be fully
justified in failing or refusing to take any action under this Agreement or any of the other Notes
Documents (i) if such action would, in the reasonable opinion of the Collateral Agent (which may be
based on the opinion of legal counsel), be contrary to applicable law or any of the Notes
Documents, (ii) if such action is not provided for in this Agreement or any of the other Notes
Documents, (iii) if, in connection with the taking of any such action hereunder or under any of the
other Notes Documents that would constitute an exercise of remedies hereunder or under any of the
other Notes Documents, it shall not first be indemnified to its satisfaction by the Holders against
any and all risk of nonpayment, liability and expense that may be incurred by it, its agents or its
counsel by reason of taking or continuing to take any such action, or (iv) if, notwithstanding
anything to the contrary contained in this Agreement, in connection with the taking of any such
action that would constitute a payment due under any agreement or document, it shall not first have
received from the Holders or the Grantors funds equal to such amount payable. The Collateral Agent
shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement
or any of the other Notes Documents in accordance with a request of the requisite percentage of
Holders under the Indenture, and such request and any action taken or failure to act pursuant
thereto shall be binding upon all the other Holders and the Trustee.

          (i) The Collateral Agent shall not be deemed to have actual, constructive, direct or indirect
knowledge or notice of the occurrence of any Default unless and until the Collateral Agent has
received a written notice or a certificate from the Grantors or the Trustee stating that a Default
has occurred. The Collateral Agent shall have no obligation whatsoever either prior to or after
receiving such notice or certificate to inquire whether a Default has in fact occurred and shall be
entitled to rely conclusively, and shall be fully protected in so relying, on any notice or
certificate so furnished to it. No provision of this Agreement or any of the other Notes Documents
shall require the Collateral Agent to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties under this Agreement, any of the other Notes
Documents or the exercise of any of its rights or powers, and, if it shall have reasonable grounds
for believing that repayment of such funds or adequate indemnity against such risk or liability,
including an advance of moneys necessary to perform work or to take the action requested, is not
reasonably assured to it, the Collateral Agent may decline to act unless it receives indemnity
satisfactory to it in its sole discretion, including an advance of moneys necessary to take the
action requested. The Collateral Agent shall be under no obligation or duty to take any action
under this Agreement or any of the other Notes Documents or otherwise if taking such action (i)
would subject the Collateral Agent to a tax in any jurisdiction where it is

30

 

not then subject to a tax or (ii) would require the Collateral Agent to qualify to do business
in any jurisdiction where it is not then so qualified.

     The rights, protections, immunities and indemnities in favor of the Collateral Agent in the
Indenture, including, but not limited to, those contained in Article 7 and Article 10 thereof,
shall be incorporated herein by reference and shall form a part of this Agreement.

SECTION 13. DESTRUCTION, CONDEMNATION AND RESTORATION.

     13.1 Availability of Proceeds. Any Proceeds received by any Grantor or its affiliates as a
result of any Destruction shall be applied in accordance with the Event of Loss provisions set
forth in the Indenture.

SECTION 14. MISCELLANEOUS.

     Any notice required or permitted to be given under this Agreement shall be given in accordance
with Section 13.02 of the Indenture. No failure or delay on the part of the Collateral Agent in
the exercise of any power, right or privilege hereunder or under any other Security Document shall
impair such power, right or privilege or be construed to be a waiver of any default or acquiescence
therein, nor shall any single or partial exercise of any such power, right or privilege preclude
other or further exercise thereof or of any other power, right or privilege. All rights and
remedies existing under this Agreement and the other Security Documents are cumulative to, and not
exclusive of, any rights or remedies otherwise available. In case any provision in or obligation
under this Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity,
legality and enforceability of the remaining provisions or obligations, or of such provision or
obligation in any other jurisdiction, shall not in any way be affected or impaired thereby. All
covenants hereunder shall be given independent effect so that if a particular action or condition
is not permitted by any of such covenants, the fact that it would be permitted by an exception to,
or would otherwise be within the limitations of, another covenant shall not avoid the occurrence of
a Default or an Event of Default if such action is taken or condition exists. This Agreement shall
be binding upon and inure to the benefit of the Collateral Agent and the Grantors and their
respective successors and assigns. No Grantor shall, without the prior written consent of the
Collateral Agent given in accordance with the Indenture, assign any right, duty or obligation
hereunder. This Agreement and the other Security Documents embody the entire agreement and
understanding between the Grantors and the Collateral Agent and supersede all prior agreements and
understandings between such parties relating to the subject matter hereof and thereof.
Accordingly, the Security Documents may not be contradicted by evidence of prior, contemporaneous
or subsequent oral agreements of the parties.

     No amendment, restatement, supplement, modification or waiver of any of the provisions of this
Agreement shall be deemed to be made unless the same shall be in writing signed on behalf of the
applicable Grantors and the Collateral Agent (or its authorized agent) (acting in accordance with
the Indenture); provided, however, that, notwithstanding the foregoing, (a) any amendment,
restatement, supplement or other modification of this Agreement that has the effect solely of
adding or maintaining Collateral, securing additional indebtedness or preserving, perfecting or
establishing the Liens thereon or the rights of the Collateral Agent therein will become effective
when executed and delivered by the applicable Grantors party thereto and the Collateral Agent, and
(b) no amendment, restatement, supplement or other modification of this Agreement that imposes any
obligation upon the Collateral Agent or adversely affects the rights of the Collateral Agent, in
each case, solely in its capacity as such, will become effective without the consent of the
Collateral Agent. Any waiver by the Collateral Agent shall be a waiver only

31

 

with respect to the specific instance involved and shall in no way impair the rights of the
Collateral Agent or the obligations of the Grantors to the Collateral Agent in any other respect or
at any other time.

     Notwithstanding the foregoing, the Collateral Agent and each applicable Grantor may, without
the consent of any other Secured Party, enter into any amendment, restatement, supplement or other
modification of this Agreement to cure any ambiguity, defect or inconsistency or to correct or
supplement any provision in such document that may be inconsistent with any other provision of a
Security Document, or to further the intended purposes thereof or to provide additional benefits or
rights to the Secured Parties, so long as prior to the execution of any such amendment,
restatement, supplement or other modification, each applicable Grantor shall have delivered to the
Collateral Agent an Officers’ Certificate in form and substance reasonably satisfactory to the
Collateral Agent to the effect that such amendment, modification or waiver complies with the
foregoing requirements.

     There are no unwritten oral agreements between the parties. This Agreement may be executed in
one or more counterparts and by different parties hereto in separate counterparts, each of which
when so executed and delivered shall be deemed an original, but all such counterparts together
shall constitute but one and the same instrument; signature pages may be detached from multiple
separate counterparts and attached to a single counterpart so that all signature pages are
physically attached to the same document.

     If any provision of this Agreement limits, qualifies or conflicts with the duties imposed by
the Trust Indenture Act of 1939 as in effect on the date of this Agreement, the imposed duties
shall control.

          THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND ALL CLAIMS AND
CONTROVERSIES ARISING OUT OF THE SUBJECT MATTER HEREOF WHETHER SOUNDING IN CONTRACT LAW, TORT LAW
OR OTHERWISE SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS
OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY (OTHER THAN ANY MANDATORY PROVISIONS OF THE UCC RELATING TO THE LAW GOVERNING PERFECTION
AND THE EFFECT OF PERFECTION OF THE SECURITY INTEREST).

SECTION 15. RESOLUTION OF DRAFTING AMBIGUITIES.

     Each Grantor acknowledges and agrees that it was represented by counsel in connection with the
execution and delivery hereof, that it and its counsel reviewed and participated in the preparation
and negotiation hereof and that any rule of construction to the effect that ambiguities are to be
resolved against the drafting party (i.e., Collateral Agent or Trustee) shall not be employed in
the interpretation hereof.

SECTION 16. WAIVER OF JURY TRIAL.

          EACH OF THE GRANTORS AND THE COLLATERAL AGENT HEREBY IRREOVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED

32

 

BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF
OR RELATING TO THIS AGREEMENT, THE OTHER NOTES DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY.

[Signature Pages Follow]

33

 

          IN WITNESS WHEREOF, each Grantor and the Collateral Agent have caused this Agreement to be
duly executed and delivered by their respective officers thereunto duly authorized as of the date
first written above.

	 	 	 	 	 	 	 

	 	 	MASON FAMILY RESORTS, LLC, as

Grantor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Great Wolf Lodge of PKI, LLC	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	GWR Operating Partnership, L.L.L.P.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	GWR OP General Partner, LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Great Wolf Resorts, Inc.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ J. Michael Schroeder	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: J. Michael Schroeder	 	 
	 

	 	 	 	Title: Corporate Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	GREAT WOLF LODGE OF GRAPEVINE, LLC, as Grantor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	GWR Operating Partnership, L.L.L.P.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	GWR OP General Partner, LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Great Wolf Resorts, Inc.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ J. Michael Schroeder	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: J. Michael Schroeder	 	 
	 

	 	 	 	Title: Corporate Secretary	 	 

 

 

	 	 	 	 	 
	 	GREAT WOLF WILLIAMSBURG SPE, LLC,

as Grantor

 	 
	 	By:  	/s/ J. Michael Schroeder
 	 
	 	 	Name:  	J. Michael Schroeder 	 
	 	 	Title:  	Authorized Representative 	 
	 

 

 

	 	 	 	 	 	 	 

	 	 	U.S. BANK NATIONAL ASSOCIATION, as

Collateral
Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ R. Jason Fry	 	 
	 

	 	 	 	 	 	 
	 	 	Name: R. Jason Fry	 	 
	 	 	Title: Vice President	 	 

 

 

SCHEDULE 1.1

TO SECURITY AGREEMENT

EXCLUDED REAL PROPERTY:

	(a)	 	Parcel “B”:
	 
	 	 	All that certain lot, piece or parcel of land, with the buildings and improvements thereon,
consisting of 1.5 acres, more or less, more particularly described as “Parcel B’ on that
certain plat entitled “SUBDIVISION OF THE PROPERTY OF THE RUBY F. STEVENS LIMITED LIABILITY
COMPANY, BRUTON MAGISTERIAL DISTRICT, COUNTY OF YORK, VIRGINIA,” prepared by LandMark Design
Group, dated August 5, 2003, and recorded in the Clerk’s Office of the Circuit Court for
York County, Virginia, as Instrument No. 030024958, on August 8, 2003.
	 
	 	 	Together with all and singular the buildings and improvements thereon, the tenements,
hereditaments and appurtenances thereunto belonging or in anywise appertaining.
	 
	 	 	Subject, however, to all easements, conditions and restrictions of record affecting said
property.
	 
	 	 	Being a portion of the same property acquired by Williamsburg Meadows, LLC, by Deed dated
December 29, 1999, of record in the Clerk’s Office as Instrument No. 0000022225 and by Deed
dated February 8, 2002 as Instrument No. 0200022502.
	 
	(b)	 	Parcel “C”:
	 
	 	 	ALL THAT certain lot, piece or parcel of land lying, being and situate in the County of
York, Virginia, containing 1.4955 acres, more or less, designated as “Parcel C’ on that
certain plat entitled “SUBDIVISION OF PARCEL A, BEING THE PROPERTY OF GREAT WOLF
WILLIAMSBURG SPE, LLC, A DELAWARE LIMITED LIABILITY COMPANY, BRUTON DISTRICT, YORK COUNTY,
VIRGINIA,” prepared by LandMark Design Group, dated November 21, 2008 and recorded on
January 15, 2009, in the Clerk’s Office of the Circuit Court for the County of York,
Virginia, as Instrument No. 090000721, to which reference is here made for a more complete
description of the property.
	 
	 	 	Together with the tenements, hereditaments and appurtenances thereunto belonging or in
anywise appertaining.
	 
	 	 	BEING a portion of the property conveyed to Great Wolf Williamsburg SPE, LLC hereby by Deed
dated February 6, 2008, from Great Wolf Lodge of Williamsburg, LLC, a Delaware limited
liability company, which deed was recorded February 7, 2008, in the Clerk’s Office of the
Circuit Court for the County of York, Virginia, as Instrument Number 080002306.
	 
	(c)	 	Other Real Property Interests:
	 
	 	 	None

SCHEDULE 1.1-1

 

 

SCHEDULE 5.2

TO SECURITY AGREEMENT

GENERAL INFORMATION

	(A)	 	Full Legal Name, Type of Organization, Jurisdiction of Organization, Chief Executive
Office/Sole Place of Business and Organizational Identification Number of each Grantor:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Chief Executive	 	 
	Full Legal	 	Type of	 	Jurisdiction of	 	Office/Sole Place of	 	 
	Name	 	Organization	 	Organization	 	Business	 	Organization I.D.#
	Great Wolf
	 	Limited liability	 	Delaware	 	122 West Washington	 	4471366
	Williamsburg SPE,
	 	company	 	 	 	Avenue Suite 600	 	 
	LLC
	 	 	 	 	 	Madison, Wisconsin	 	 
	 
	 	 	 	 	 	53703	 	 
	 
	 	 	 	 	 	 	 	 
	Mason Family
	 	Limited liability	 	Delaware	 	122 West Washington	 	3957245
	Resorts, LLC
	 	company	 	 	 	Avenue Suite 600	 	 
	 
	 	 	 	 	 	Madison, Wisconsin	 	 
	 
	 	 	 	 	 	53703	 	 
	 
	 	 	 	 	 	 	 	 
	Great Wolf Lodge of
	 	Limited liability	 	Delaware	 	122 West Washington 	 	4035122
	Grapevine, LLC
	 	company	 	 	 	Avenue Suite 600	 	 
	 
	 	 	 	 	 	Madison, Wisconsin	 	 
	 
	 	 	 	 	 	53703	 	 

	(B)	 	Other Names (including any Trade Name or Fictitious Business Name) under which each Grantor
currently conducts business:

	 	 	 
	Full Legal Name	 	Trade Name or Fictitious Business Name
	Great Wolf Williamsburg SPE, LLC

	 	Great Wolf Lodge
	 
	 	 
	Mason Family Resorts, LLC

	 	Great Wolf Lodge
	 
	 	 
	Great Wolf Lodge of Grapevine, LLC

	 	Great Wolf Lodge

	(C)	 	Changes in Name, Jurisdiction of Organization, Chief Executive Office or Sole Place of
Business and Corporate Structure within past five (5) years:
	 
	 	 	None.
	 
	(D)	 	Agreements pursuant to which any Grantor is bound as debtor within past five (5) years:

	 	 	 
	Grantor	 	Description of Agreement
	Great Wolf Williamsburg SPE, LLC

	 	Loan Agreement, dated as of August 4,
2008, by and between Great Wolf
Williamsburg SPE, LLC, as borrower,
Calyon New York Branch and Capmark
Bank, as lenders and Calyon New York
Branch, as agent.

SCHEDULE 5.2-1

 

 

	 	 	 
	Grantor	 	Description of Agreement
	Mason Family Resorts, LLC

	 	Loan Agreement, dated as of November
30, 2005, by and between Mason Family
Resorts, LLC, as borrower, Merrill
Lynch Capital, a Division of Merrill
Lynch Business Financial Services,
Inc., as administrative agent and each
of the other financial institutions
party thereto, as lenders.
	 
	 	 
	Great Wolf Lodge of Grapevine, LLC

	 	Loan Agreement, dated as of July 28,
2006, by and between Great Wolf Lodge
of Grapevine, LLC, as borrower, Merrill
Lynch Capital, a Division of Merrill
Lynch Business Financial Services,
Inc., as administrative agent and each
of the other financial institutions
party thereto, as lenders.

SCHEDULE 1.1-2

 

 

SCHEDULE 5.3

TO SECURITY AGREEMENT

COLLATERAL IDENTIFICATION

I. INVESTMENT RELATED PROPERTY

(A) Pledged Debt:

None.

(B) Securities Account:

None.

(C) Deposit Accounts:

	 	 	 	 	 	 	 	 	 
	 	 	Name of Depositary	 	 	 	 
	Grantor	 	Bank	 	Account Number	 	Account Name
	Great Wolf
Williamsburg SPE,
LLC

	 	Wachovia Bank
	 	 	2000036285156	 	 	Great Wolf
Williamsburg SPE,
LLC
	 
	 	 	 	 	 	 	 	 
	Mason Family
Resorts, LLC

	 	Wachovia Bank
	 	 	2000027325559	 	 	Mason Family
Resorts, LLC
	 
	 	 	 	 	 	 	 	 
	Mason Family
Resorts, LLC

	 	Fifth Third Bank
	 	 	7023382950	 	 	Mason Family
Resorts, LLC
	 
	 	 	 	 	 	 	 	 
	Mason Family
Resorts, LLC

	 	Fifth Third Bank
	 	 	7023382786	 	 	Mason Family
Resorts, LLC
	 
	 	 	 	 	 	 	 	 
	Great Wolf Lodge of
Grapevine, LLC

	 	Wachovia Bank
	 	 	2000033038157	 	 	Great Wolf Lodge of
Grapevine, LLC
	 
	 	 	 	 	 	 	 	 
	Great Wolf Lodge of
Grapevine, LLC

	 	Wachovia Bank
	 	 	2000036284092	 	 	Great Wolf Lodge of
Grapevine, LLC
	 
	 	 	 	 	 	 	 	 
	Great Wolf Lodge of
Grapevine, LLC

	 	Wachovia Bank
	 	 	2000036284102	 	 	Great Wolf Lodge of
Grapevine, LLC

(D) Commodity Contracts and Commodity Accounts:

None.

SCHEDULE 5.3-1

 

 

II. INTELLECTUAL PROPERTY

	(A)	 	Copyrights
	 
	 	 	None.
	 
	(B)	 	Copyright Licenses
	 
	 	 	None.
	 
	(C)	 	Patents
	 
	 	 	None.
	 
	(D)	 	Patent Licenses
	 
	 	 	None.
	 
	(E)	 	Trademarks
	 
	 	 	None.
	 
	(F)	 	Trademark Licenses
	 
	 	 	None.
	 
	(G)	 	Trade Secret Licenses
	 
	 	 	None.

III. COMMERCIAL TORT CLAIMS

	 	 	None.

IV. LETTER OF CREDIT RIGHTS

	 	 	None.

V. WAREHOUSEMAN, BAILEES AND OTHER THIRD PARTIES IN POSSESSION OF COLLATERAL

	 	 	None.

SCHEDULE 5.3-2

 

 

VI. MATERIAL CONTRACTS

	 	 	 
	Grantor	 	Description of Material Contract
	Mason Family Resorts, LLC

	 	Management Services Contract
dated May 4, 2005 between Great
Lakes Services, LLC (as “Manager”)
and Mason Family Resorts, LLC (as
“Owner”)
	 
	 	 
	Mason Family Resorts, LLC

	 	License Agreement dated May
4, 2005 between Great Lakes
Services, LLC (as “Licensor”) and
Mason Family Resorts, LLC (as
“Licensee”)
	 
	 	 
	Mason Family Resorts, LLC

	 	Reservation Services
Agreement dated May 4, 2005
between Great Lakes Services, LLC
(as “Service Provider”) and Mason
Family Resorts, LLC (as “Owner”)
	 
	 	 
	Great Wolf Lodge of Grapevine, LLC

	 	Reservation Services
Agreement dated July 26, 2006
between Great Lakes Services, LLC
(as “Service Provider”) and Great
Wolf Lodge of Grapevine, LLC (as
“Owner”)
	 
	 	 
	Great Wolf Lodge of Grapevine, LLC

	 	License Agreement dated July
26, 2006 between Great Lakes
Services, LLC (as “Licensor”) and
Great Wolf Lodge of Grapevine, LLC
(as “Licensee”)
	 
	 	 
	Great Wolf Lodge of Grapevine, LLC

	 	Management Services Contract
dated July 26, 2006 between Great
Lakes Services, LLC (as “Manager”)
and Great Wolf Lodge of Grapevine,
LLC (as “Owner”)
	 
	 	 
	Great Wolf Williamsburg SPE, LLC*

	 	Management Services Contract
dated December 20, 2004 between
Great Lakes Services, LLC (as
“Manager”) and Great Wolf Lodge
Williamsburg, LLC (as “Owner”)
	 
	 	 
	Great Wolf Williamsburg SPE, LLC*

	 	License Agreement dated
December 20, 2004 between Great
Lakes Services, LLC (as
“Licensor”) and Great Wolf Lodge
Williamsburg, LLC (as “Owner”)
	 
	 	 
	Great Wolf Williamsburg SPE, LLC*

	 	Reservation Services
Agreement dated December 20, 2004
between Great Lakes Services, LLC
(as “Service Provider”) and Great
Wolf Lodge Williamsburg, LLC (as
“Owner”)

 

			
	*	 	Each of these agreements was originally held by Great Wolf Lodge Williamsburg, LLC but was
assigned to Great Wolf Williamsburg SPE, LLC in January 2008.

SCHEDULE 5.3-3

 

 

SCHEDULE 5.5

TO SECURITY AGREEMENT

FINANCING STATEMENTS:

	 	 	 
	Grantor	 	Filing Jurisdiction(s)
	Mason Family Resorts, LLC

	 	Secretary of State of the State of Delaware
	 
	 	 
	Great Wolf Lodge of Grapevine, LLC

	 	Secretary of State of the State of Delaware
	 
	 	 
	Great Wolf Williamsburg SPE, LLC

	 	Secretary of State of the State of Delaware

SCHEDULE 5.4-1

 

 

SCHEDULE 5.6

TO SECURITY AGREEMENT

LOCATION OF EQUIPMENT AND INVENTORY:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Great Wolf	 	 	 	 	 	 	 	 
	 	 	Williamsburg	 	 	 	 	 	 	Great Wolf Lodge of	 
	 	 	SPE, LLC	 	 	Mason Family Resorts,	 	 	Grapevine, LLC	 
	 	 	(York County,	 	 	LLC	 	 	(Tarrant County,	 
	Fixed Assets	 	Virginia)	 	 	(Warren County, Ohio)	 	 	Texas)	 
	Fixed asset 5 year life
	 	$	10,344,581.60	 	 	$	7,300,522.49	 	 	$	2,800,001.50	 
	Fixed asset 7 year life
	 	$	3,676,661.50	 	 	$	540,372.04	 	 	$	145,995.64	 
	Fixed asset 9 year life
	 	$	8,053,173.08	 	 	$	10,193,393.79	 	 	$	17,140,719.02	 
	Fixed asset 10 year life
	 	$	1,320,618.19	 	 	$	938,272.03	 	 	$	162,050.65	 
	Fixed asset 12 year life
	 	$	26,507,492.76	 	 	$	20,877,582.06	 	 	$	28,595,491.29	 
	Fixed asset 15 year life
	 	$	4,538,805.22	 	 	$	18,581,549.12	 	 	$	304,938.51	 
	Fixed asset 20 year life
	 	$	26,822,991.17	 	 	$	30,510,802.15	 	 	$	48,224,207.41	 
	Fixed asset 25 year life
	 	$	2,187,240.60	 	 	$	6,808,832.96	 	 	$	640,920.38	 
	Fixed asset 40 year life
	 	$	27,210,751.87	 	 	$	18,841,885.33	 	 	$	98,105,493.88	 
	Fixed asset – land
	 	$	11,843,751.00	 	 	$	6,599,999.51	 	 	$	13,562,588.00	 
	Construction in Process
	 	$	10,527.49	 	 	$	25,221.19	 	 	$	128,269.21	 
	 	 	 	 	 	 	 	 	 	 
	TOTAL FIXED ASSETS
	 	$	122,516,594.48	 	 	$	121,218,432.67	 	 	$	209,810,675.49	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Great Wolf	 	 	 	 	 	 	 	 
	 	 	Williamsburg	 	 	 	 	 	 	Great Wolf Lodge of	 
	 	 	SPE, LLC	 	 	Mason Family Resorts,	 	 	Grapevine, LLC	 
	 	 	(York County,	 	 	LLC	 	 	(Tarrant County,	 
	Inventory	 	Virginia)	 	 	(Warren County, Ohio)	 	 	Texas)	 
	Uniform Inventory
	 	$	38,874.25	 	 	$	6,999.98	 	 	$	40,536.80	 
	Beverage Inventory
	 	$	19,585.16	 	 	$	22,012.97	 	 	$	21,536.13	 
	Food Inventory
	 	$	60,752.90	 	 	$	126,903.95	 	 	$	85,711.17	 
	Inventory Cub Club
Edutainment
	 	$	21,666.33	 	 	 	N/A	 	 	 	N/A	 
	Inventory Miscellaneous –
Tattoo Booth
	 	$	3,429.47	 	 	 	N/A	 	 	$	1,604.25	 
	Gift Shop Inventory
	 	$	508,940.91	 	 	$	395,591.26	 	 	$	515,970.87	 
	Gift Shop- Packages
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 
	Gift Shop – Photo Shop
	 	 	N/A	 	 	 	N/A	 	 	$	6,106.38	 
	Arcade Inventory
	 	$	30,781.81	 	 	$	47,890.35	 	 	$	55,100.67	 
	Inventory Magiquest Retail
	 	$	84,710.35	 	 	$	90,509.53	 	 	$	159,212.73	 
	Spa Inventory
	 	$	65,325.84	 	 	$	30,311.32	 	 	$	60,864.05	 
	 	 	 	 	 	 	 	 	 	 
	TOTAL INVENTORY
	 	$	834,067.02	 	 	$	720,219.36	 	 	$	946,643.05	 

SCHEDULE 5.5-1

 

 

EXHIBIT A

TO SECURITY AGREEMENT

PLEDGE SUPPLEMENT

     This PLEDGE SUPPLEMENT, dated [mm/dd/yy], is delivered by [NAME OF GRANTOR] a [______]
[corporation] (the “Grantor”) pursuant to that certain Security Agreement, dated as of April 7,
2010 (as it may be from time to time amended, restated, modified or supplemented, the “Security
Agreement”), among MASON FAMILY RESORTS, LLC, a Delaware limited liability company (“Mason
Resorts”), GREAT WOLF LODGE OF GRAPEVINE, LLC, a Delaware limited liability company (“GW
Grapevine”), GREAT WOLF WILLIAMSBURG SPE, LLC, a Delaware limited liability company (“Williamsburg
SPE”; and together with Mason Resorts and GW Grapevine, each a “Grantor”, and collectively, the
“Grantors”), and U.S. BANK NATIONAL ASSOCIATION, as Collateral Agent for the benefit of the Secured
Parties (as hereinafter defined). Capitalized terms used herein not otherwise defined herein shall
have the meanings ascribed thereto in the Security Agreement.

     Grantor hereby confirms the grant to the Collateral Agent set forth in the Security Agreement
of, and does hereby grant to the Collateral Agent, a security interest in all of Grantor’s right,
title and interest in, to and under all Collateral to secure the Secured Obligations, in each case
whether now or hereafter existing or in which Grantor now has or hereafter acquires an interest and
wherever the same may be located. Grantor represents and warrants that the attached Supplements to
Schedules accurately and completely set forth all additional information required to be provided
pursuant to the Security Agreement and hereby agrees that such Supplements to Schedules shall
constitute part of the Schedules to the Security Agreement.

          THIS PLEDGE SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND ALL CLAIMS
AND CONTROVERSIES ARISING OUT OF THE SUBJECT MATTER HEREOF WHETHER SOUNDING IN CONTRACT LAW, TORT
LAW OR OTHERWISE SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PROVISIONS THAT WOULD RESULT IN
THE APPLICATION OF ANY OTHER LAW (OTHER THAN ANY MANDATORY PROVISIONS OF THE UCC RELATING TO THE
LAW GOVERNING PERFECTION AND THE EFFECT OF PERFECTION OF THE SECURITY INTEREST).

     IN WITNESS WHEREOF, Grantor has caused this Pledge Supplement to be duly executed and
delivered by its duly authorized officer as of [mm/dd/yy].

	 	 	 	 	 	 	 

	 	 	[NAME OF GRANTOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 

EXHIBIT A-1

 

 

SUPPLEMENT TO SCHEDULE 5.2

TO SECURITY AGREEMENT

Additional Information:

GENERAL INFORMATION

	(A)	 	Full Legal Name, Type of Organization, Jurisdiction of Organization, Chief Executive
Office/Sole Place of Business and Organizational Identification Number of each Grantor:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Chief Executive	 	 
	Full Legal	 	Type of	 	Jurisdiction of	 	Office/Sole Place of	 	 
	Name	 	Organization	 	Organization	 	Business	 	Organization I.D.#
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

	(B)	 	Other Names (including any Trade Name or Fictitious Business Name) under which each Grantor
currently conducts business:

	 	 	 
	Full Legal Name	 	Trade Name or Fictitious Business Name
	 	 	 
	 	 	 

	(C)	 	Changes in Name, Jurisdiction of Organization, Chief Executive Office or Sole Place of
Business and Corporate Structure within past five (5) years:

	 	 	 	 	 
	Grantor	 	Date of Change	 	Description of Change
	 	 	 	 	 
	 	 	 	 	 

	(D)	 	Agreements pursuant to which any Grantor is bound as debtor within past five (5) years:

	 	 	 
	Grantor	 	Description of Agreement
	 	 	 
	 	 	 

EXHIBIT A-2

 

 

SUPPLEMENT TO SCHEDULE 5.3

TO SECURITY AGREEMENT

COLLATERAL IDENTIFICATION

I. INVESTMENT RELATED PROPERTY

Pledged Debt:

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Original	 	Outstanding	 	 	 	 
	 	 	 	 	Principal	 	Principal	 	 	 	 
	Grantor	 	Co-Issuer	 	Amount	 	Balance	 	Issue Date	 	Maturity Date
	 	 	 	 	 	 	 	 	 	 	 

Securities Account:

	 	 	 	 	 	 	 
	 	 	Share of Securities	 	 	 	 
	Grantor	 	Intermediary	 	Account Number	 	Account Name
	 	 	 	 	 	 	 

Deposit Accounts:

	 	 	 	 	 	 	 
	 	 	Name of Depositary	 	 	 	 
	Grantor	 	Bank	 	Account Number	 	Account Name
	 	 	 	 	 	 	 

Commodity Contracts and Commodity Accounts:

	 	 	 	 	 	 	 
	 	 	Name of Commodity	 	 	 	 
	Grantor	 	Intermediary	 	Account Number	 	Account Name
	 	 	 	 	 	 	 

II. INTELLECTUAL PROPERTY

	(A)	 	Copyrights

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Registration	 	Registration Date
	Grantor	 	Jurisdiction	 	Title of Work	 	Number (if any)	 	(if any)
	 	 	 	 	 	 	 	 	 

	(B)	 	Copyright Licenses

EXHIBIT A-3

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Registration Number (if	 	 
	 	 	Description of Copyright	 	any) of underlying	 	 
	Grantor	 	License	 	Copyright	 	Name of Licensor
	 	 	 	 	 	 	 

	(C)	 	Patents

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Patent	 	 
	 	 	 	 	 	 	Number/(Application	 	Issue Date/(Filing
	Grantor	 	Jurisdiction	 	Title of Patent	 	Number)	 	Date)
	 	 	 	 	 	 	 	 	 

	(D)	 	Patent Licenses

	 	 	 	 	 	 	 
	 	 	Description of Patent	 	Patent Number of underlying	 	 
	Grantor	 	License	 	Patent	 	Name of Licensor
	 	 	 	 	 	 	 

	(E)	 	Trademarks

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Registration	 	 
	 	 	 	 	 	 	Number/(Serial	 	Registration
	Grantor	 	Jurisdiction	 	Trademark	 	Number)	 	Date/(Filing Date)
	 	 	 	 	 	 	 	 	 

	(F)	 	Trademark Licenses

	 	 	 	 	 	 	 
	 	 	Description of	 	Registration Number of	 	 
	Grantor	 	Trademark License	 	underlying Trademark	 	Name of Licensor
	 	 	 	 	 	 	 

	(G)	 	Trade Secret Licenses

	 	 	 	 	 	 	 
	 	 	Description of Trade Secret	 	Number of underlying Trade	 	 
	Grantor	 	License	 	Secret	 	Name of Licensor
	 	 	 	 	 	 	 

EXHIBIT A-4

 

 

III. COMMERCIAL TORT CLAIMS

	 	 	 
	Grantor	 	Commercial Tort Claims
	 	 	 

IV. LETTER OF CREDIT RIGHTS

	 	 	 
	Grantor	 	Description of Letters of Credit
	 	 	 

V. WAREHOUSEMAN, BAILEES AND OTHER THIRD PARTIES IN POSSESSION OF COLLATERAL

	 	 	 	 	 
	 	 	 	 	Name and Address of Third
	Grantor	 	Description of Property	 	Party
	 	 	 	 	 

VI. MATERIAL CONTRACTS

	 	 	 
	Grantor	 	Description of Material Contract
	 	 	 

EXHIBIT A-5

 

 

SUPPLEMENT TO SCHEDULE 5.5

TO SECURITY AGREEMENT

FINANCING STATEMENTS:

	 	 	 
	Grantor	 	Filing Jurisdiction(s)
	 	 	 

EXHIBIT A-6

 

 

SUPPLEMENT TO SCHEDULE 5.6

TO SECURITY AGREEMENT

Additional Information:

	 	 	 
	Grantor	 	Location of Equipment and Inventory
	 	 	 

EXHIBIT A-7exv4w5

Exhibit 4.5

 

OPEN-END MORTGAGE, ASSIGNMENT OF LEASES AND

RENTS, SECURITY AGREEMENT AND FIXTURE FILING

FROM

MASON FAMILY RESORTS, LLC, as Mortgagor,

TO

U.S. BANK NATIONAL ASSOCIATION, in its capacity as Collateral Agent,

as Mortgagee

Executed as of April 5, 2010

Dated and Effective as of April 7, 2010

	 	 	 	 	 

	 	 	Relating to Premises at:
	 

	 	Location:
	 	2501 Great Wolf Drive
	 

	 	Municipality:
	 	Mason
	 

	 	County:
	 	Warren
	 

	 	State:
	 	Ohio
	 	 	Permanent Parcel No.: 16-18-300-019-1 & 16-18-300-019-2

 

Prepared outside the state of Ohio

and after recording please return to:

Jeffrey N. Anderson

Latham & Watkins LLP

233 S. Wacker Dr., Suite 5800

Chicago, IL 60606

 

MAXIMUM INDEBTEDNESS NOT TO EXCEED $230,000,000

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	PREAMBLE
	 	1	 
	 
	 	 	 	 
	RECITALS
	 	1	 
	 
	 	 	 	 
	AGREEMENT
	 	2	 
	 
	 	 	 	 
	ARTICLE I.

	 
	 	 	 	 
	DEFINITIONS AND INTERPRETATION

	 
	 	 	 	 
	SECTION 1.1. Definitions
	 	2	 
	SECTION 1.2. Interpretation
	 	8	 
	SECTION 1.3. Resolution of Drafting Ambiguities
	 	9	 
	 
	 	 	 	 
	ARTICLE II.

	 
	 	 	 	 
	GRANTS AND SECURED OBLIGATIONS

	 
	 	 	 	 
	SECTION 2.1. Grant of Mortgaged Property
	 	9	 
	SECTION 2.2. Assignment of Leases and Rents
	 	10	 
	SECTION 2.3. Secured Obligations
	 	10	 
	SECTION 2.4. No Release
	 	12	 
	 
	 	 	 	 
	ARTICLE III.

	 
	 	 	 	 
	REPRESENTATIONS AND WARRANTIES OF MORTGAGOR

	 
	 	 	 	 
	SECTION 3.1. Due Authorization and Execution
	 	12	 
	SECTION 3.2. Warranty of Title
	 	12	 
	SECTION 3.3. Condition of Mortgaged Property
	 	13	 
	SECTION 3.4. Leases
	 	14	 
	SECTION 3.5. Charges
	 	14	 
	SECTION 3.6. Benefit to the Mortgagor
	 	15	 
	SECTION 3.7. Insurance
	 	15	 
	SECTION 3.8. Environmental
	 	15	 

-i-

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE IV.

	 
	 	 	 	 
	CERTAIN COVENANTS OF MORTGAGOR

	 
	 	 	 	 
	SECTION 4.1. Payment
	 	16	 
	SECTION 4.2. Title
	 	16	 
	SECTION 4.3. Maintenance and Use of Mortgaged Property; Alterations
	 	17	 
	SECTION 4.4. Notices Regarding Certain Defaults
	 	19	 
	SECTION 4.5. Access to Mortgaged Property, Books and Records; Other
Information
	 	19	 
	SECTION 4.6. Limitation on Liens; Transfer Restrictions
	 	19	 
	SECTION 4.7. Environmental
	 	19	 
	 
	 	 	 	 
	ARTICLE V.

	 
	 	 	 	 
	CONCERNING ASSIGNMENT OF LEASES AND RENTS

	 
	 	 	 	 
	SECTION 5.1. Present Assignment; License to the Mortgagor
	 	19	 
	SECTION 5.2. Collection of Rents by the Mortgagee
	 	20	 
	SECTION 5.3. No Release
	 	21	 
	SECTION 5.4. Irrevocable Interest
	 	21	 
	SECTION 5.5. Amendment to Leases
	 	21	 
	 
	 	 	 	 
	ARTICLE VI.
	 
	 	 	 	 
	TAXES AND CERTAIN STATUTORY LIENS

	 
	 	 	 	 
	SECTION 6.1. Payment of Charges
	 	21	 
	SECTION 6.2. Stamp and Other Taxes
	 	21	 
	SECTION 6.3. Certain Tax Law Changes
	 	22	 
	SECTION 6.4. Proceeds of Tax Claim
	 	22	 
	 
	 	 	 	 
	ARTICLE VII.

	 
	 	 	 	 
	CONTESTING OF PAYMENTS

	 
	 	 	 	 
	SECTION 7.1. Contesting of Taxes and Certain Statutory Liens
	 	22	 
	 
	 	 	 	 
	ARTICLE VIII.
	 
	 	 	 	 
	DESTRUCTION, CONDEMNATION AND RESTORATION

	 
	 	 	 	 
	SECTION 8.1. Destruction and Restoration
	 	23	 
	SECTION 8.2. Condemnation
	 	23	 

-ii-

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 8.3. Availability of Proceeds
	 	23	 
	 
	 	 	 	 
	ARTICLE IX.

	 
	 	 	 	 
	EVENT OF DEFAULT AND REMEDIES

	 
	 	 	 	 
	SECTION 9.1. Events of Default
	 	23	 
	SECTION 9.2. Remedies in Case of an Event of Default
	 	23	 
	SECTION 9.3. Sale of Mortgaged Property if Event of Default Occurs; Proceeds
of Sale
	 	24	 
	SECTION 9.4. Additional Remedies in Case of an Event of Default
	 	26	 
	SECTION 9.5. Legal Proceedings After an Event of Default
	 	27	 
	SECTION 9.6. Remedies Not Exclusive
	 	28	 
	SECTION 9.7. Costs of Enforcement
	 	29	 
	 
	 	 	 	 
	ARTICLE X.

	 
	 	 	 	 
	SECURITY AGREEMENT AND FIXTURE FILING

	 
	 	 	 	 
	SECTION 10.1. Security Agreement
	 	29	 
	SECTION 10.2. Fixture Filing
	 	29	 
	 
	 	 	 	 
	ARTICLE XI.

	 
	 	 	 	 
	FURTHER ASSURANCES

	 
	 	 	 	 
	SECTION 11.1. Recording Documentation To Assure Security
	 	30	 
	SECTION 11.2. Further Acts
	 	30	 
	SECTION 11.3. Additional Security
	 	31	 
	 
	 	 	 	 
	ARTICLE XII.

	 
	 	 	 	 
	MISCELLANEOUS

	 
	 	 	 	 
	SECTION 12.1. Covenants To Run with the Land
	 	31	 
	SECTION 12.2. Environmental Indemnity
	 	31	 
	SECTION 12.3. No Merger
	 	32	 
	SECTION 12.4. Secured Obligations to Include Judgments; Other Collateral
	 	32	 
	SECTION 12.5. Concerning Mortgagee
	 	33	 
	SECTION 12.6. Mortgagee May Perform; Mortgagee Appointed Attorney-in-Fact
	 	34	 
	SECTION 12.7. Continuing Security Interest; Assignment
	 	34	 
	SECTION 12.8. Termination; Release
	 	35	 
	SECTION 12.9. Modification in Writing
	 	35	 

-iii-

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 12.10. Notices
	 	35	 
	SECTION 12.11. GOVERNING LAW; SERVICE OF PROCESS; WAIVER OF JURY TRIAL
	 	36	 
	SECTION 12.12. Severability of Provisions
	 	36	 
	SECTION 12.13. Limitation on Interest Payable
	 	37	 
	SECTION 12.14. Business Days
	 	37	 
	SECTION 12.15. Relationship
	 	37	 
	SECTION 12.16. Waiver of Stay
	 	37	 
	SECTION 12.17. No Credit for Payment of Taxes or Impositions
	 	38	 
	SECTION 12.18. No Claims Against the Mortgagee
	 	38	 
	SECTION 12.19. Obligations Absolute
	 	38	 
	SECTION 12.20. Mortgagee’s Right To Sever Indebtedness
	 	39	 
	SECTION 12.21. Multi-Site Real Estate Transaction
	 	40	 
	 
	 	 	 	 
	ARTICLE XIII.

	 
	 	 	 	 
	STATE OF OHIO PROVISIONS

	 
	 	 	 	 
	SECTION 13.1. Open-End Mortgage
	 	41	 
	SECTION 13.2. Mechanics’ Lien Law
	 	41	 
	 
	 	 	 	 
	SIGNATURE
	 	 	 	 
	 
	 	 	 	 
	ACKNOWLEDGMENT
	 	 	 	 
	 
	 	 	 	 
	SCHEDULE A Legal Description
	 	 	 	 
	SCHEDULE B Leases
	 	 	 	 

-iv-

 

OPEN-END MORTGAGE, ASSIGNMENT OF LEASES AND RENTS, SECURITY

AGREEMENT AND FIXTURE FILING

     OPEN-END MORTGAGE, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURE FILING (this
“Mortgage”), executed as of April 5, 2010 and dated and effective as of April 7, 2010 (the
“Effective Date”), made by MASON FAMILY RESORTS, LLC, a Delaware limited liability company,
having an office at c/o Great Wolf Resorts, Inc., 122 West Washington Avenue, Suite 600, Madison,
Wisconsin 53703, as mortgagor, assignor and debtor (in such capacities and together with any
successors in such capacities, the “Mortgagor”), in favor of U.S. BANK NATIONAL
ASSOCIATION, having an office at 60 Livingston Avenue, EP-MN-WS3C, St. Paul, Minnesota 55107-2292,
in its capacity as Collateral Agent (as hereinafter defined) for the Secured Parties (as
hereinafter defined), as mortgagee, assignee and secured party (in such capacities and together
with any successors in such capacities, the “Mortgagee”).

R
E C I T A L S :

          A. Pursuant to that certain Indenture, dated as of the Effective Date (as it may be amended,
supplemented, amended and restated or otherwise modified from time to time, the
“Indenture”) entered into by and among GWR Operating Partnership, L.L.L.P., a Delaware
limited liability limited partnership, and Great Wolf Finance Corp., a Delaware corporation
(collectively, the “Co-Issuers”), the guarantors party thereto from time to time, including
Mortgagor, and Trustee, the Co-Issuers have issued 10.875% First Mortgage Notes due 2017 in an
aggregate principal amount of $230,000,000 (the “Notes”).

          B. Mortgagor is the legal and/or beneficial owner of the Mortgaged Property (as hereinafter
defined).

          C. In consideration of the issuance of the Notes, Mortgagor has agreed to secure the Secured
Obligations (as hereinafter defined).

          D. Pursuant to the Indenture, Mortgagor has guaranteed the payment and performance of the
Notes and other obligations of the Obligors (as described below) under the Notes Documents (as
hereinafter defined).

          E. Mortgagor has determined that its execution, delivery and performance hereof, of the
Indenture and the other documents executed in connection herewith directly benefit Mortgagor and
are within the authorized purposes and best interests of Mortgagor.

          F. This Mortgage is given by the Mortgagor in favor of the Mortgagee for its benefit and the
benefit of the other Secured Parties to secure the payment and performance of all of the Secured
Obligations and is intended to be a first priority lien on and security interest in the Mortgaged
Property, subject to Permitted Collateral Liens (as hereinafter defined).

 

 

A G R E E M E N T :

          NOW THEREFORE, in consideration of the foregoing premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Mortgagor hereby
covenants and agrees with the Mortgagee as follows:

ARTICLE I.

DEFINITIONS AND INTERPRETATION

          SECTION 1.1. Definitions. (a) Capitalized terms used but not otherwise defined herein that are defined in the Indenture
shall have the meanings given to them in the Indenture, including the following:

          (b) The following terms in this Mortgage shall have the following meanings:

          “Affiliate” shall have the meaning assigned to such term in the Indenture.

          “Allocated Indebtedness” shall have the meaning assigned to such term in Section
12.20(i) hereof.

          “Allocation Notice” shall have the meaning assigned to such term in Section
12.20(i) hereof.

          “Alterations” shall mean any and all alterations, installations, improvements,
additions, modifications or changes, in each case of a structural nature.

          “Bankruptcy Code” shall have the meaning assigned to such term in Section
5.1(ii) hereof.

          “Business Day” shall have the meaning assigned to such term in the Indenture.

          “Charges” shall mean any and all real estate, property and other taxes, assessments
and special assessments, levies, fees, all water and sewer rents and charges and all other
governmental charges imposed upon or assessed against, and all claims for sums that have become due
and payable (including, without limitation, claims for landlords’, carriers’, mechanics’,
workmens’, repairmens’, laborers’, materialmens’, suppliers’ and warehousemens’ Liens and other
claims arising by operation of law) against, all or any portion of the Mortgaged Property, and that
by law have or will become a Lien on the Mortgaged Property.

          “Collateral Agent” shall have the meaning assigned to such term in the Indenture.

-2-

 

          “Condemnation Awards” shall mean all of Mortgagor’s right, title and interest in and
to any awards, damages, remunerations, reimbursements, settlements or compensation hereafter made
by any governmental authority pertaining to the Land, Improvements, Fixtures or other Mortgaged
Property, including awards resulting from condemnation proceedings for the total or partial taking
of the Land.

          “Default Rate” shall mean a rate of interest equal to the then applicable interest
rate on the Notes (to the extent lawful).

          “Destruction” shall mean any loss of or damage to the Premises as a result of fire or
casualty or destruction of the Premises.

          “Environmental Laws” shall mean all applicable former, current and future federal,
state, local and foreign laws (including common law), treaties, regulations, rules, ordinances,
codes, decrees, judgments, directives, orders (including consent orders), and agreements in each
case, relating to protection of the environment, natural resources, human health and safety or the
presence, Release (as hereinafter defined) of, threatened Release, or exposure to, Hazardous
Materials (as hereinafter defined), or the generation, manufacture, processing, distribution, use,
treatment, storage, transport, recycling or handling of, or the arrangement for such activities
with respect to, Hazardous Materials.

          “Fixtures” shall mean all machinery, apparatus, equipment, fittings, fixtures,
improvements and articles of personal property of every kind, description and nature whatsoever now
or hereafter attached or affixed to the Land or any other Improvement used in connection with the
use and enjoyment of the Land or any other Improvement or the maintenance or preservation thereof,
which by the nature of their location thereon or attachment thereto are fixtures under the UCC or
any other applicable law including, without limitation, all building materials, screens, awnings,
shades, blinds, curtains, draperies, carpets, rugs, furniture and furnishings, utility systems,
fire sprinkler and security systems, drainage facilities, lighting facilities, all water, sanitary
and storm sewer, drainage, electricity, steam, gas, telephone and other utility equipment and
facilities, stoves, ovens, refrigerators, freezers, ranges, vacuum cleaning systems, call systems,
pipes, fittings, HVAC equipment, boilers, electronic data processing, telecommunications or
computer equipment, refrigeration, electronic monitoring, water, heating or lighting systems,
power, sanitation, waste removal, elevators, maintenance or other systems or equipment and other
items of every kind and description now or hereafter attached to or located on the Land which by
the nature of their location thereon or attachment thereto are real property under applicable law.

          “GAAP” shall have the meaning assigned to such term in the Indenture.

          “Governmental Authority” shall mean any nation or government, any state or other
political subdivision thereof or any entity exercising executive, legislative, judicial,

-3-

 

regulatory or administrative functions of or pertaining to government, having jurisdiction
over the Mortgagor or the Mortgaged Property or any portion thereof.

          “Guarantors” shall have the meaning assigned to such term in the Security Agreement.

          “Hazardous Materials” shall mean any petroleum (including crude oil or fraction
thereof) or petroleum products or byproducts, or any pollutant, contaminant, chemical, compound,
constituent, or hazardous, toxic or other substances, materials or wastes defined, or regulated as
such by, or pursuant to, any Environmental Law, or requires removal, remediation or reporting under
any Environmental Law, including asbestos, or asbestos containing material, radon or other
radioactive material, polychlorinated biphenyls urea formaldehyde insulation, and mold.

          “Improvements” shall mean all buildings, structures and other improvements of every
kind or description and any and all Alterations now or hereafter located, attached or erected on
the Land, including, without limitation, (i) all Fixtures, (ii) all attachments, railroad tracks,
foundations, sidewalks, drives, roads, curbs, streets, ways, alleys, passages, passageways, sewer
rights, drainage, parking areas, driveways, fences and walls and (iii) all materials now or
hereafter located on the Land intended for the construction, reconstruction, repair, replacement,
alteration, addition or improvement of or to such buildings, Fixtures, structures and improvements,
all of which materials shall be deemed to be part of the Improvements immediately upon delivery
thereof on the Land and to be part of the Improvements immediately upon their incorporation
therein.

          “Indenture” shall have the meaning assigned to such term in Recital A hereof.

          “Insurance Certificate” shall mean a certificate evidencing the Insurance Requirements
in form and substance reasonably satisfactory to the Mortgagee.

          “Insurance Policies” means the insurance policies and coverages required to be
maintained by the Mortgagor with respect to the Mortgaged Property pursuant to the Insurance
Requirements.

          “Insurance Receipts” shall mean all insurance policies, unearned premiums therefor and
proceeds from such policies covering any of the Mortgaged Property now or hereafter acquired by
Mortgagor.

          “Insurance Requirements” shall mean the insurance requirements set forth in
Section 4.3(iv) hereof.

          “Land” shall mean the land described in Schedule A annexed to this Mortgage,
together with all of the Mortgagor’s rights in and to any and all easements, rights-of-way, strips
and gores of land, waters, water courses, water rights, mineral, gas and oil rights and all rights
of

-4-

 

access to or for power, air, light, ingress and egress by pedestrians and motor vehicles to
parking facilities on or within the Land and other rights, estates, titles, interests, privileges,
liberties, servitudes, licenses, tenements, hereditaments and appurtenances whatsoever, in any way
(and in each case) belonging, relating or appertaining thereto, or any part thereof, or which
hereafter shall in any way belong, relate or be appurtenant thereto.

          “Landlord” shall mean any landlord, lessor, licensor or grantor, as applicable.

          “Leases” shall mean, collectively, any and all interests of the Mortgagor, as
Landlord, in all leases and subleases of space, tenancies, licenses, occupancy or concession
agreements now existing or hereafter entered into, whether or not of record, relating in any manner
to space at the Premises and any and all amendments, modifications, supplements, replacements,
extensions and renewals of any thereof, whether now in effect or hereafter coming into effect.

          “Liabilities” shall have the meaning assigned to such term in Section 12.2
hereof.

          “Lien” shall have the meaning assigned to such term in the Indenture.

          “Losses” shall mean any and all losses, claims, damages, liabilities and related
expenses, including reasonable attorneys’ fees, charges and disbursements.

          “Material Adverse Effect” shall mean any circumstance, event, occurrence, or effect
that has or would reasonably be expected to have an effect that is materially adverse to the
business, assets, operations and condition of the Principal Properties, taken as a whole.

          “Mortgage” shall have the meaning assigned to such term in the Preamble hereof.

          “Mortgaged Property” shall have the meaning assigned to such term in Section
2.1 hereof.

          “Mortgagee” shall have the meaning assigned to such term in the Preamble hereof.

          “Mortgagor” shall have the meaning assigned to such term in the Preamble hereof.

          “Mortgagor’s Interest” shall have the meaning assigned to such term in Section
2.2 hereof.

          “Notes” shall have the meaning assigned to such term in the Recitals hereto.

          “Notes Documents” shall mean the Indenture, the Notes, this Mortgage, the other
Security Documents and each of the other agreements, documents and instruments executed

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pursuant thereto, and any other document or instrument executed or delivered by any Obligor at
any time in connection with any Obligation (as such term is defined in the Indenture) to any
Secured Party, as each may be amended, supplemented, refunded, deferred, restructured, replaced or
refinanced from time to time in whole or in part (whether with the Collateral Agent and holders of
the Notes from time to time or other agents and lenders or otherwise), in each case in accordance
with the provisions of the Security Agreement or this Mortgage, as applicable.

          “Obligors” shall mean the Co-Issuers, Mortgagor and the other Guarantors.

          “Other Collateral” shall have the meaning assigned to such term in Section
12.20(i) hereof.

          “Other Mortgages” shall have the meaning assigned to such term in Section
12.22 hereof.

          “Permit” shall mean any and all permits, certificates, approvals, authorizations,
consents, licenses, variances, franchises or other instruments, however characterized, of any
Governmental Authority (or any person acting on behalf of a Governmental Authority) now or
hereafter acquired or held, together with all amendments, modifications, extensions, renewals and
replacements of any thereof issued or in any way furnished in connection with the Mortgaged
Property including, without limitation, building permits, certificates of occupancy, environmental
certificates, industrial permits or licenses and certificates of operation.

          “Permitted Collateral Liens” shall have the meaning assigned to such term in the
Indenture.

          “Person” shall have the meaning assigned to such term in the Indenture.

          “Premises” shall mean, collectively, the Land and the Improvements.

          “Principal Properties” shall have the meaning assigned to such term in the Indenture.

          “Principal Property Subsidiary” shall have the meaning assigned to such term in the
Indenture.

          “Proceeds” shall mean, collectively, any and all cash proceeds and noncash proceeds of
the Mortgaged Property and shall include all (i) proceeds of the conversion, voluntary or
involuntary, of any of the Mortgaged Property or any portion thereof into cash or liquidated
claims, (ii) proceeds of any insurance, indemnity, warranty, guaranty or claim payable to the
Mortgagee or to the Mortgagor from time to time with respect to any of the Mortgaged Property,
(iii) payments (in any form whatsoever) made or due and payable to the Mortgagor from time to time
in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any
portion of the Mortgaged Property by any Governmental Authority (or

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any person acting on behalf of a Governmental Authority), (iv) products of the Mortgaged
Property and (v) other amounts from time to time paid or payable under or in connection with any of
the Mortgaged Property including, without limitation, refunds of real estate taxes and assessments,
including interest thereon, but expressly excluding any Rents.

          “Rents” shall mean, collectively, any and all rents, additional rents, royalties,
cash, guaranties, letters of credit, bonds, sureties or securities deposited under any Lease to
secure performance of the Tenant’s obligations thereunder, revenues, issues, earnings, profits and
income, advance rental payments, payments incident to assignment, sublease or surrender of a Lease,
claims for forfeited deposits and claims for damages, now due or hereafter to become due, with
respect to any Lease, any indemnification against, or reimbursement for, sums paid and costs and
expenses incurred by the Mortgagor under any Lease or otherwise, and any award in the event of the
bankruptcy of any Tenant under or guarantor of a Lease.

          “Release” shall mean any release, spill, seepage, emission, leaking, pumping,
injection, pouring, emptying, deposit, disposal, discharge, dispersal, dumping, escaping, leaching,
or migration into, onto or through the environment or within or upon any building, structure,
facility or fixture.

          “Security Agreement” shall mean that certain Security Agreement dated as of the
Effective Date by and among Mortgagor, Great Wolf Lodge of Grapevine, LLC, a Delaware limited
liability company, Great Wolf Williamsburg SPE, LLC, a Delaware limited liability company, and the
Collateral Agent, as the same may be amended, amended and restated, supplemented or otherwise
modified from time to time.

          “Security Documents” shall mean this Mortgage, the Security Agreement, the guarantees
by the Principal Property Subsidiaries and the other Collateral Documents (as defined in the
Indenture) and any other agreement, document or instrument pursuant to which a Lien is granted
securing any Secured Obligations or under which rights or remedies with respect to such Liens are
governed.

          “Secured Obligations” shall have the meaning assigned to such term in Section
2.3 hereof.

          “Secured Parties” shall mean, collectively, the holders of the Notes from time to
time, the Collateral Agent and the Trustee.

          “Site Assessment” shall mean an environmental engineering report for the Mortgaged
Property prepared by an engineer engaged by the Collateral Agent, at Mortgagor’s expense, and in a
manner reasonably satisfactory to the Collateral Agent, based upon an investigation and appropriate
inquiries, including soil and groundwater sampling, if necessary, concerning the existence of
Hazardous Materials on or about the Mortgaged Property, and the past or present discharge,
disposal, release or escape of any such substances, all consistent with good customary and
commercial practice.

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          “Subsidiary” shall have the meaning assigned to such term in the Indenture.

          “Taking” shall mean any taking of the Mortgaged Property or any part thereof, in or by
condemnation or other eminent domain proceedings pursuant to any law, general or special, or by
reason of the temporary requisition of the use or occupancy of the Mortgaged Property or any part
thereof, by any Governmental Authority, civil or military.

          “Tax Refunds” shall mean all property tax refunds payable to Mortgagor.

          “Tenant” shall mean any tenant, lessee, sublessee, licensee or occupant, as
applicable.

          “Trustee” shall have the meaning assigned to such term in the Indenture.

          “UCC” shall mean the Uniform Commercial Code as in effect on the Effective Date in the
jurisdiction in which the Premises are located; provided, however, that if by
reason of mandatory provisions of law, the perfection or the effect of perfection or non-perfection
of the security interest in any item or portion of the Mortgaged Property is governed by the
Uniform Commercial Code as in effect in a jurisdiction other than the jurisdiction in which the
Premises are located, “UCC” shall mean the Uniform Commercial Code as in effect in such other
jurisdiction for purposes of the provisions hereof relating to such perfection or effect of
perfection or non-perfection.

          SECTION 1.2. Interpretation. In this Mortgage, unless otherwise specified, (i) singular words include the plural and
plural words include the singular, (ii) words importing any gender include the other gender, (iii)
references to any person include such person’s successors and assigns and in the case of an
individual, the word “successors” includes such person’s heirs, devisees, legatees, executors,
administrators and personal representatives, (iv) references to any statute or other law include
all applicable rules, regulations and orders adopted or made thereunder and all statutes or other
laws amending, consolidating or replacing the statute or law referred to, (v) the words “consent,”
“approve” and “agree,” and derivations thereof or words of similar import, mean the prior written
consent, approval or agreement of the person in question, (vi) the words “include” and “including,”
and words of similar import, shall be deemed to be followed by the words “without limitation,”
(vii) the words “hereto,” “herein,” “hereof” and “hereunder,” and words of similar import, refer to
this Mortgage in its entirety, (viii) references to Articles, Sections, Schedules, Exhibits,
subsections, paragraphs and clauses are to the Articles, Sections, Schedules, Exhibits,
subsections, paragraphs and clauses hereof, (ix) the Schedules and Exhibits to this Mortgage, in
each case as amended, amended and restated, supplemented or otherwise modified from time to time in
accordance with the provisions hereof, are incorporated herein by reference, (x) the titles and
headings of Articles, Sections, Schedules, Exhibits, subsections, paragraphs and clauses are
inserted as a matter of convenience only and shall not affect the construction of any
provision hereof and (xi) all

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obligations of the Mortgagor hereunder shall be satisfied by the
Mortgagor at the Mortgagor’s sole cost and expense.

          SECTION 1.3. Resolution of Drafting Ambiguities. The Mortgagor acknowledges and agrees that it was represented by counsel in connection with the
execution and delivery hereof, that it and its counsel reviewed and participated in the preparation
and negotiation hereof and that any rule of construction to the effect that ambiguities are to be
resolved against the drafting party (i.e., Mortgagee) shall not be employed in the interpretation
hereof.

ARTICLE II.

GRANTS AND SECURED OBLIGATIONS

          SECTION 2.1. Grant of Mortgaged Property. The Mortgagor hereby grants, mortgages, bargains, sells, assigns, transfers and conveys to the
Mortgagee, and hereby grants a first priority security interest to Mortgagee in and upon, all of
the Mortgagor’s estate, right, title and interest in, to and under the following property, whether
now owned or held or hereafter acquired from time to time (collectively, the “Mortgaged
Property”):

          (i) Land;

          (ii)
Improvements;

          (iii) Leases;

          (iv) Rents;

          (v) Tax Refunds;

          (vi) Insurance Receipts;

          (vii) Condemnation Awards;

          (viii) Proceeds;

     (ix) any and all extensions, improvements, betterments, renewals, substitutions and
replacements of, and all additions and appurtenances to, the foregoing, hereafter acquired
by, or released to, Mortgagor, or constructed, assembled or placed by Mortgagor or by others
for Mortgagor’s benefit thereon, and all conversions of the security
constituted thereby, which immediately upon such acquisition, release, construction,
assembling, placement or conversion, as the case may be, and in each such case, without

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any
further conveyance, assignment or other act by Mortgagor, shall become subject to the lien
of this Mortgage as fully and completely, to the extent of Mortgagor’s interest therein, and
with the same force and effect, as though now owned by Mortgagor and specifically described
herein; and

     (x) all products and proceeds of any of the foregoing, including all such proceeds
acquired with cash proceeds in whatever form.

TO HAVE AND TO HOLD the Mortgaged Property, together with all estate, right, title and interest of
the Mortgagor and anyone claiming by, through or under the Mortgagor in and to the Mortgaged
Property and all rights and appurtenances relating thereto, unto the Mortgagee, its successors and
assigns, and the other Secured Parties, for the purpose of securing the payment and performance in
full of all the Secured Obligations.

          SECTION 2.2. Assignment of Leases and Rents. Subject to the terms set forth herein, as additional security for the payment and
performance in full of all the Secured Obligations and subject to the provisions of Article
V hereof, the Mortgagor absolutely, presently, unconditionally and irrevocably assigns,
transfers and sets over to the Mortgagee, and grants to the Mortgagee, all of the Mortgagor’s
estate, right, title, interest, claim and demand, as Landlord, under any and all of the Leases
including, without limitation, the following (such assigned rights, the “Mortgagor’s
Interest”):

     (i) the immediate and continuing right to receive and collect Rents payable by the
Tenants pursuant to the Leases;

     (ii) all claims, rights, powers, privileges and remedies of the Mortgagor, whether
provided for in the Leases or arising by statute or at law or in equity or otherwise,
consequent on any failure on the part of any Tenant to perform or comply with any term of
any Lease;

     (iii) all rights to take all actions upon the happening of a default under the Leases
as shall be permitted by the Leases or by law including, without limitation, the
commencement, conduct and consummation of proceedings at law or in equity; and

     (iv) the full power and authority, in the name of the Mortgagor or otherwise, to
enforce, collect, receive and receipt for any and all of the foregoing and to take all other
actions whatsoever which the Mortgagor, as Landlord, is or may be entitled to take under the
Leases.

          SECTION 2.3. Secured Obligations. This Mortgage secures, and the Mortgaged Property is collateral security for, the
performance of the covenants and agreements of Mortgagor and the other Principal Property
Subsidiaries contained in the Indenture, this Mortgage, the other Notes Documents and related
documents, and, among other obligations, the prompt and complete payment and performance in full
when due, whether at stated maturity, by

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required prepayment, declaration, acceleration,
repurchase, redemption, demand or otherwise (including the payment of amounts that would become due
but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Law (and any
successor provision thereof)) of the following:

     (i) all of the obligations and liabilities of the Mortgagor and the other Principal
Property Subsidiaries to the Trustee, the Collateral Agent or any Secured Party, whether
direct or indirect, absolute or contingent, due or to become due, or now existing or
hereafter incurred, which may arise under, out of, or in connection with, the Indenture, the
other Notes Documents and related documents to which Mortgagor or such Principal Property
Subsidiary is party, made, delivered or given in connection with any of the foregoing, in
each case whether such obligations and liabilities are on account of principal, interest,
penalties, fees, indemnifications, reimbursements, damages and other liabilities payable
(including, without limitation, all fees and disbursements of counsel to the Collateral
Agent or to the Secured Parties) that are required to be paid by the Co-Issuers pursuant to
the terms of any of the foregoing agreements;

     (ii) all covenants and agreements, obligations, liabilities and other obligations of
any kind (including, without limitation, principal, interest, fees, reimbursement
obligations, administrative costs and indemnities) of Mortgagor or any other Principal
Property Subsidiary, or combination thereof, now existing or arising in the future from time
to time under or in respect of this Mortgage, the Indenture and the other Notes Documents
and related documents as to which any Principal Property Subsidiary is a party;

     (iii) any and all other amounts, liabilities, and obligations for which or for the
performance of which Mortgagor or any other Principal Property Subsidiary or any combination
thereof is or may become indebted or obligated under the terms of this Mortgage, the
Indenture and the other Notes Documents and related documents to which Mortgagor or any
other Principal Property Subsidiary is a party;

     (iv) any and all renewals, increases, rearrangements, modifications, supplements,
restatements and extensions of the foregoing items of indebtedness and obligations; and

     (v) costs and expenses of collection (including, without limitation, reasonable
attorneys’ fees and expenses), actually incurred by Mortgagee in obtaining performance of,
or in collecting any payments due under, the Indenture and the other Notes Documents and
related documents to which Mortgagor or any of the Principal Property
Subsidiaries is a party, commissions, expenses, charges, reimbursement obligations,
indemnification obligations, reasonable fees and expenses due and payable to any Secured
Party under the Indenture and the other Notes Documents and such related documents.

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          Each and every such indebtedness, liability and obligation of any kind of Mortgagor or any
Principal Property Subsidiary described and included in this Mortgage, whether such item is
absolute or contingent, due or not due, liquidated or unliquidated, arising under or in connection
with the Indenture, this Mortgage and the other Notes Documents or any of them (including, without
limitation, the foregoing) is intended to be fully secured by the liens, assignments, and security
interests created under and by virtue of this Mortgage, and all such items so secured (now or
hereafter existing or arising) plus the other items described in Section 12.4 hereof are
hereinafter collectively referred to herein as the “Secured Obligations.”

          SECTION 2.4. No Release. Nothing set forth in this Mortgage shall relieve the Mortgagor from the performance of any
term, covenant, condition or agreement on the Mortgagor’s part to be performed or observed under or
in respect of any of the Mortgaged Property or from any liability to any person under or in respect
of any of the Mortgaged Property or shall impose any obligation on the Mortgagee or any other
Secured Party to perform or observe any such term, covenant, condition or agreement on the
Mortgagor’s part to be so performed or observed or shall impose any liability on the Mortgagee or
any other Secured Party for any act or omission on the part of the Mortgagor relating thereto or
for any breach of any representation or warranty on the part of the Mortgagor contained in this
Mortgage or any other Notes Document, or under or in respect of the Mortgaged Property or made in
connection herewith or therewith.

ARTICLE III.

REPRESENTATIONS AND WARRANTIES OF MORTGAGOR

          SECTION 3.1. Due Authorization and Execution. The Mortgagor represents and warrants that Mortgagor is a duly formed and validly existing
limited liability company under the law of the state of Delaware and in good standing under the
laws of the state of Delaware and under the laws of the states or commonwealths in which the
Mortgaged Property is located, (ii) Mortgagor has full right, authority and power to enter into
this Mortgage, to consummate the transactions contemplated herein and to perform its obligations
hereunder and under the Notes Documents to which it is a party, (iii) each of the persons executing
this Mortgage on behalf of Mortgagor is authorized to do so, and (iv) this Mortgage constitutes a
valid and legally binding obligation of Mortgagor enforceable against Mortgagor in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting creditors rights generally and subject to
general principles of equity regardless of whether considered in a proceeding in equity or at law.

          SECTION 3.2. Warranty of Title. The Mortgagor represents and warrants as of the Effective Date that:

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     (i) it has good and marketable fee simple title to the Premises and good title to the
interest it owns or holds in each of the Permits, subject to no Liens, except Permitted
Collateral Liens;

     (ii) it has good title to the interest it owns or holds in all other Mortgaged
Property, in each case subject to no Liens, except Permitted Collateral Liens;

     (iii) it does not own, lease or otherwise occupy any real property other than the
Premises and other than any off-site storage or space leases;

     (iv) it is in material compliance with any obligation of the Mortgagor for which
noncompliance would give a third party the right to file a Lien on the Mortgaged Property,
other than a Permitted Collateral Lien; and

     (v) upon proper recordation in the official records in the county (or other applicable
jurisdiction) in which the Premises is located, this Mortgage will create and constitute a
valid and enforceable (subject to the exceptions set forth in Section 3.1(iv) above)
first priority Lien on the Mortgaged Property in favor of the Mortgagee for the benefit of
the Secured Parties, and, to the extent any of the Mortgaged Property shall consist of
Fixtures, a first priority security interest in the Fixtures, which first priority Lien and
first priority security interest are subject only to Permitted Collateral Liens.

          SECTION 3.3. Condition of Mortgaged Property. The Mortgagor represents and warrants that as of the Effective Date:

     (i) there has been issued and there remains in full force and effect subject to no
revocation, suspension, forfeiture or modification, each and every Permit necessary for the
present and contemplated use, operation and occupancy of the Premises by the Mortgagor and
its Tenants, except to the extent the failure to maintain any Permit would not have a
Material Adverse Effect;

     (ii) the Premises and the present and contemplated use and occupancy thereof comply
with all applicable zoning ordinances, building codes, land use laws, setback or
other development and use requirements of Governmental Authorities and with all private
restrictions and agreements affecting the Mortgaged Property whether or not recorded, except
to the extent that the failure to comply would not have a Material Adverse Effect;

     (iii) the Premises are served by all utilities (including, without limitation, public
water and sewer systems) necessary for the present use thereof;

     (iv) the Mortgagor has not received notice of any Taking or the commencement or
pendency of any action or proceeding therefor;

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     (v) there has not occurred any Destruction of the Premises or any portion thereof which
has not previously been repaired or replaced;

     (vi) to its knowledge there are no disputes regarding boundary lines, location,
encroachments or possession of any portions of the Mortgaged Property, which disputes, if
determined adversely to Mortgagor, would have a Material Adverse Effect;

     (vii) no portion of the Premises is located in an area identified by the Federal
Emergency Management Agency as an area having special flood hazards pursuant to the Flood
Insurance Acts or, if any portion of the Improvements located on the Premises is located
within such area, the Mortgagor has obtained flood insurance;

     (viii) the Premises are assessed for real estate tax purposes as one or more wholly
independent tax lot or lots, separate from any adjoining land or improvements not
constituting a portion of such lot or lots, and no other land or improvement is assessed and
taxed together with the Premises or any portion thereof; and

     (ix) Mortgagor has not granted any options or rights of first refusal to purchase or
acquire all or any portion of the Mortgaged Property.

          SECTION 3.4. Leases. The Mortgagor represents and warrants that as of the Effective Date:

     (i) there are no Leases affecting the Premises as of the Effective Date, except as
identified on Schedule B annexed to this Mortgage;

     (ii) true copies of such Leases have been previously delivered to the Mortgagee;

     (iii) the Mortgagor is the sole owner of all of the landlord’s interest in such Leases;

     (iv) to Mortgagor’s knowledge, there is no default under any Lease and there is
existing no condition which with the giving of notice or passage of time or both would cause
a default thereunder, except, in each case to the extent such default or potential default
would not have a Material Adverse Effect; and

     (v) no Lease contains any option to purchase, right of first refusal to purchase, or
any other similar provision.

          SECTION 3.5. Charges. The Mortgagor represents and warrants that all Charges imposed upon or assessed against the
Mortgaged Property have been paid and discharged except to the extent such Charges constitute
Permitted Collateral Liens or to the extent such Charges are being diligently contested in
accordance with Article VII.

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          SECTION 3.6. Benefit to the Mortgagor. The Mortgagor represents and warrants that it will receive substantial benefit as a result
of the execution, delivery, and performance of the Notes Documents.

          SECTION 3.7. Insurance. The Mortgagor represents and warrants that (i) the Premises and the use, occupancy and
operation thereof comply with all Insurance Requirements, except where the failure to comply would
not have a Material Adverse Effect, and there exists no default under any Insurance Requirement
that is reasonably likely to result in the cancellation of such Insurance Policy, (ii) all premiums
due and payable with respect to the Insurance Policies have been paid, (iii) all Insurance Policies
are in full force and effect and the Mortgagor has not received notice of violation or cancellation
thereof, (iv) all Insurance Policies or Insurance Certificates have been delivered to Mortgagee,
and (v) the Premises are insured in accordance with the Insurance Requirements.

          SECTION 3.8. Environmental. (A) The Mortgagor represents and warrants that:

     (i) Mortgagor has obtained all Permits which are necessary with respect to the
ownership and lawful operation of the Mortgaged Property under any and all applicable
Environmental Laws, except to the extent that the failure to maintain any such Permit would
not have a Material Adverse Effect;

     (ii) Mortgagor is in compliance with all terms and conditions of Environmental Laws,
except to the extent that the failure to comply would not have a Material Adverse Effect;

     (iii) To Mortgagor’s knowledge, there are no Hazardous Materials located on, above or
below the surface of the Mortgaged Property or contained in the soil or water constituting
such Mortgaged Property (except those that are in compliance with all Environmental Laws or
where the presence of which would not have a Material Adverse Effect);

     (iv) To Mortgagor’s knowledge, no material Release of Hazardous Materials has occurred
on, upon or from such Mortgaged Property which have not been remediated in accordance with
applicable law, except to the extent the same would not have a Material Adverse Effect;

     (v) To Mortgagor’s knowledge, the Mortgaged Property has not been used as a landfill or
waste disposal site; and

     (vi) the Mortgaged Property is being owned, occupied and operated by Mortgagor in
compliance with all Environmental Laws (except to the extent that the failure to comply
would not have a Material Adverse Effect), there are no material breaches thereof (except to
the extent that any such breach would not have a Material

-15-

 

Adverse Effect) and no enforcement
actions in respect thereof are pending or, to Mortgagor’s knowledge, threatened against
Mortgagor which, in any case, would be reasonably likely to materially and adversely affect
Mortgagor’s ability to perform its obligations under the Notes Documents or otherwise
materially impair the value of any Mortgaged Property.

     Notwithstanding the foregoing, Mortgagor makes no representation or warranty in (i) —
(vi) above with respect to any matters existing at the Mortgaged Property as of the date(s)
of the environmental report(s) delivered to Mortgagee with respect to the Mortgaged
Property.

     (B) Mortgagor represents and warrants that to its knowledge no adverse change has
occurred with respect to any of the matters identified in the environmental report(s)
delivered to Mortgagee with respect to the Mortgaged Property, except for changes which,
individually or in the aggregate, would not have a Material Adverse Effect.

ARTICLE IV.

CERTAIN COVENANTS OF MORTGAGOR

          SECTION 4.1. Payment. The Mortgagor shall pay as and when the same shall become due, whether at its stated maturity,
by acceleration or otherwise, each and every amount payable by the Mortgagor in respect of the
Secured Obligations.

          SECTION 4.2. Title. The Mortgagor shall

     (i) Except as permitted under the Indenture (A) keep in effect all rights and
appurtenances to or that constitute a part of the Mortgaged Property and (B) protect,
preserve and defend its interest in the Mortgaged Property and title thereto (subject in
each case to Permitted Collateral Liens);

     (ii) (A) forever warrant and defend to the Mortgagee the Lien and security interests
created and evidenced hereby and the validity and priority hereof in any action or
proceeding against the claims of any and all persons whomsoever affecting or purporting to
affect the Mortgaged Property or any of the rights of the Mortgagee hereunder (other than
Permitted Collateral Liens) and (B) maintain a valid and enforceable first priority Lien on
the Mortgaged Property and, to the extent any of the Mortgaged Property shall consist of
Fixtures, a first priority security interest in the Fixtures, which first priority Lien and
security interest shall be subject only to Permitted Collateral Liens; and

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     (iii) promptly upon obtaining knowledge of the pendency of any proceedings for the
eviction of the Mortgagor from the Mortgaged Property or any part thereof by paramount title
or otherwise questioning the Mortgagor’s right, title and interest in, to and under the
Mortgaged Property as warranted in this Mortgage, or of any condition that is reasonably
likely to give rise to any such proceedings, notify the Mortgagee thereof. The Mortgagee
may participate in such proceedings and the Mortgagor will deliver or cause to be delivered
to the Mortgagee all instruments reasonably requested by the Mortgagee to permit such
participation. In any such proceedings, the Mortgagee may be represented by counsel
satisfactory to the Mortgagee at the reasonable expense of the Mortgagor. If, upon the
resolution of such proceedings, the Mortgagor shall suffer a loss of the Mortgaged Property
or any part thereof or interest therein and title insurance proceeds shall be payable in
connection therewith, such proceeds are hereby assigned to and shall be paid to the
Mortgagee to be applied to the payment of the Secured Obligations.

          SECTION 4.3. Maintenance and Use of Mortgaged Property.

     (i) Maintenance of Premises. The Mortgagor will use reasonable efforts to
maintain, preserve, protect and keep the Premises in good repair, working order and
condition (normal wear and tear and damage from casualty excepted), and make necessary
and proper repairs, renewals and replacements, in each case in a good and workmanlike
manner, so that its business carried on in connection therewith may be properly conducted,
and to the extent failure to do so would have a Material Adverse Effect. Mortgagor shall
use reasonable efforts not to (x) commit any act, or (y) suffer or permit any condition to
exist, in or upon the Mortgaged Property in violation of any law, covenant, condition or
restriction now, or hereafter, affecting the Mortgaged Property (including any which require
alteration or improvement thereof), except to the extent such violation would not have a
Material Adverse Effect. Mortgagor shall not drill or extract or enter into any lease for
the drilling for or extraction of oil, gas or other hydrocarbon substances or any mineral of
any kind of character on or from the Mortgaged Property or any part thereof which is likely
to have a materially adverse impact upon the Mortgaged Property.

     (ii) Permits. The Mortgagor shall use its reasonable efforts to maintain, or
cause to be maintained, in full force and effect all Permits to the extent contemplated by
Section 3.3(i) hereof, except to the extent failure to do so would not have a
Material Adverse Effect. Unless and to the extent contested by the Mortgagor in accordance
with the provisions of Article VII hereof, the Mortgagor shall use its reasonable
efforts to comply with all requirements set forth in the Permits and all requirements of law
applicable to all or any portion of the Mortgaged Property or the condition, use or
occupancy of all or any portion thereof or any recorded deed of restriction, declaration,
covenant running with the land or otherwise, now or hereafter in force, in each case

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except
where the failure to comply singly or in the aggregate would not have a Material Adverse
Effect.

     (iii) Zoning. The Mortgagor shall not initiate, join in or consent to any
change in the zoning or any other permitted use classification of the Premises, which would
prohibit use of the Premises for its current use.

     (iv) Insurance. Mortgagor will maintain or cause to be maintained, with
financially sound and reputable (in each case, in the judgment of the Mortgagor) insurers,
such public liability insurance, third party property damage insurance, business
interruption insurance and casualty insurance with respect to liabilities, losses or damage
in respect of the Mortgaged Property as may customarily be carried or maintained under
similar circumstances by Persons of established reputation engaged in similar businesses, in
each case in such amounts (giving effect to self insurance), with such deductibles, covering
such risks and otherwise on such terms and conditions as shall be customary for such
Persons. Mortgagor shall operate its business and the Premises in compliance with all
provisions of such policies, all requirements of the issuers of such policies, and all
orders, rules, regulations and any other requirements of the National Board of Fire
Underwriters (or any other body exercising similar functions) binding upon the Mortgagor and
applicable to the Mortgaged Property or any use or condition thereof,
except to the extent that such non-compliance would not have a Material Adverse Effect.
Without limiting the generality of the foregoing, Mortgagor will maintain or cause to be
maintained (a) flood insurance with respect to the Mortgaged Property if located in an area
designated by the Federal Emergency Management Agency as having special flood or mud slide
hazards, and which area is located in a community that participates in the National Flood
Insurance Program, in each case in compliance with any applicable regulations of the Board
of Governors of the United States Federal Reserve System (or any successor thereto), (b)
replacement value casualty insurance on the Mortgaged Property under such policies of
insurance, with such insurance companies, in such amounts on an “all-risk” basis, with such
deductibles, and covering such risks as are at all times carried or maintained under similar
circumstances by Persons of established reputation engaged in similar businesses, and (c)
public liability insurance against claims for personal injury or death or property damage
occurring upon, in, about or in connection with the use of any properties owned, occupied or
controlled by them, in a prudent manner, with (except for self insurance) financially sound
and reputable (in each case, in the judgment of Mortgagor) insurers or with the government
of the United States of America or an agency or instrumentality thereof, in such amounts,
with such deductibles, and by such methods as shall be customary, in the reasonable, good
faith opinion of Mortgagor, and adequate and appropriate for the conduct of the business of
the Mortgagor and its subsidiaries in a prudent manner for entities similarly situated in
the industry. Each such policy of insurance shall name the Collateral Agent, on behalf of
the Secured Parties, as an additional insured thereunder as its interests may appear and

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provide for at least 30 days’ prior written notice to the Collateral Agent of any
modification or cancellation of such policy.

For the avoidance of doubt, the Mortgagee will have no liability or responsibility to
maintain, pay premiums on, or have any liability or responsibility in connection with, any
such insurance policy or policies.

          SECTION 4.4. Notices Regarding Certain Defaults. The Mortgagor shall, promptly upon receipt of any written notice regarding the failure to
discharge any of the Mortgagor’s obligations with respect to the Mortgaged Property or any portion
thereof described in Sections 4.2(ii)(B), 4.3(iv) and 4.7, furnish a copy
of such notice to the Mortgagee.

          SECTION 4.5. Access to Mortgaged Property, Books and Records; Other Information. Upon reasonable prior notice to the Mortgagor, the Mortgagee, its agents, accountants and
attorneys shall have access to visit and inspect the Mortgaged Property, at reasonable times and
accompanied by a representative of Mortgagor and subject to the rights of any tenants or other
occupants of the Mortgaged Property.

          SECTION 4.6. Limitation on Liens; Transfer Restrictions.

          (i) Except for the Permitted Collateral Liens and the Lien of this Mortgage and the other
Security Documents, the Mortgagor may not, without the prior written consent of the Mortgagee,
permit to exist or grant any Lien on all or any part of the Mortgaged Property or suffer or allow
any of the foregoing to occur by operation of law or otherwise.

          (ii) Except to the extent permitted in the Indenture, the Mortgagor may not, without the prior
written consent of the Mortgagee, sell, convey, assign, mortgage, lease, pledge or otherwise
transfer all or any part of the Mortgaged Property.

          SECTION 4.7. Environmental. Mortgagor shall use its reasonable efforts to comply with all applicable Environmental
Laws, except where the failure to comply would not have a Material Adverse Effect.

ARTICLE V.

CONCERNING ASSIGNMENT OF LEASES AND RENTS

          SECTION 5.1. Present Assignment; License to the Mortgagor.

          (i) Section 2.2 of this Mortgage constitutes a present, absolute, effective,
irrevocable and complete assignment by Mortgagor to Mortgagee of the Leases and Rents and

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the
right, subject to applicable law, to collect all sums payable to Mortgagor thereunder and apply the
same after payment of any costs and expenses arising under Section 12.6 of this Mortgage in
accordance with Section 9.3(iii) of this Mortgage, which is not conditioned upon Mortgagee
being in possession of the Premises. The Mortgagee hereby grants to the Mortgagor, however, a
license to collect, receive, use, retain and apply the Rents and to enforce the obligations of
Tenants under the Leases. Upon the occurrence of and during the continuance of any Event of
Default, the license granted in the immediately preceding sentence shall cease and terminate,
provided however that if the Event of Default is cured by Mortgagor or waived in
writing by Mortgagee, the license granted to Mortgagor will thereupon be reinstated.

          (ii) Mortgagor acknowledges that Mortgagee has taken all reasonable actions necessary to
obtain, and that upon recordation of this Mortgage, Mortgagee shall have, to the
extent permitted under applicable law, a valid and fully perfected, first priority, present
assignment of the Rents arising out of the Leases and all security for such Leases subject to the
Permitted Collateral Liens and in the case of security deposits, rights of depositors and
requirements of law. Mortgagor acknowledges and agrees that upon recordation of this Mortgage,
Mortgagee’s interest in the Rents shall be deemed to be fully perfected, “choate” and enforced as
to Mortgagor and all third parties, including, without limitation, any subsequently appointed
trustee in any case under Title 11 of the United States Code (the “Bankruptcy Code”),
without the necessity of commencing a foreclosure action with respect to this Mortgage, making
formal demand for the Rents, obtaining the appointment of a receiver or taking any other
affirmative action.

          (iii) Without limitation of the absolute nature of the assignment of the Rents hereunder,
Mortgagor and Mortgagee agree that (a) this Mortgage shall constitute a “security agreement” for
purposes of Section 552(b) of the Bankruptcy Code, (b) the security interest created by this
Mortgage extends to property of Mortgagor acquired before the commencement of a case in bankruptcy
and to all amounts paid as Rents, and (c) such security interest shall extend to all rents acquired
by the estate after the commencement of any case in bankruptcy.

          SECTION 5.2. Collection of Rents by the Mortgagee.

     (i) Any Rents received by the Mortgagee hereunder, after payment of all proper costs
and expenses arising under Section 12.4 of this Mortgage, shall be applied in
accordance with the provisions of Section 9.3(iii) of this Mortgage. The Mortgagee
shall be accountable to the Mortgagor only for Rents actually received by the Mortgagee.
The collection of such Rents and the application thereof shall not cure or waive any Event
of Default or waive, modify or affect notice of Event of Default or invalidate any act done
pursuant to any such notice.

     (ii) The Mortgagor hereby authorizes and directs the tenant under each Lease, upon the
occurrence of and during the continuance of any Event of Default, to rely upon and comply
with any and all notices or demands from the Mortgagee for payment of

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Rents to the Mortgagee
and the Mortgagor shall have no claim against such tenant for Rents paid by such tenant to
the Mortgagee pursuant to such notice or demand.

          SECTION 5.3. No Release. Neither this Mortgage nor any action or inaction on the part of the Mortgagee shall release
any tenant under any Lease, any guarantor of any Lease or the Mortgagor from any of their
respective obligations under such Leases or constitute an assumption of any such obligation on the
part of the Mortgagee. No action or failure to act on the part of the Mortgagor shall adversely
affect or limit the rights of the Mortgagee under this Mortgage or, through this Mortgage, under
such Leases. Nothing contained herein shall operate or be construed to (i)
obligate the Mortgagee to perform any of the terms, covenants or conditions contained in any
Lease or otherwise to impose any obligation upon the Mortgagee with respect to such Lease
(including, without limitation, any obligation arising out of any covenant of quiet enjoyment
contained in such Lease in the event that the tenant under such Lease shall have been joined as a
party defendant in any action by which the estate of such tenant shall be terminated) or (ii) place
upon the Mortgagee any responsibility for the operation, control, care, management or repair of the
Premises, except for any liability arising solely out of its gross negligence or willful
misconduct.

          SECTION 5.4. Irrevocable Interest. All rights, powers and privileges of the Mortgagee herein set forth are coupled with an
interest and are irrevocable, subject to the terms and conditions hereof.

          SECTION 5.5. Amendment to Leases. Each Lease, including, without limitation, all amendments, modifications, supplements,
replacements, extensions and renewals thereof, shall continue to be subject to the provisions
hereof without the necessity of any further act by any of the parties hereto.

ARTICLE VI.

TAXES AND CERTAIN STATUTORY LIENS

          SECTION 6.1. Payment of Charges. Unless and to the extent contested in accordance with the provisions of Article VII
hereof, the Mortgagor shall pay and discharge, or cause to be paid and discharged, from time to
time prior to same becoming delinquent, all Charges, and prepare, execute and file any form
required to be prepared, executed and filed in connection therewith.

          SECTION 6.2. Stamp and Other Taxes. Unless and to the extent contested by the Mortgagor in accordance with the provisions of
Article VII hereof, the Mortgagor shall pay any United States, state and local documentary
stamp taxes, with interest and fines and penalties, and any mortgage recording taxes, with interest
and fines and penalties, that may hereafter be

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levied, imposed or assessed under or upon or by
reason hereof or the Secured Obligations or any instrument or transaction affecting or relating to
either thereof and in default thereof the Mortgagee may advance the same and the amount so advanced
shall accrue interest at the Default Rate and be payable by the Mortgagor to the Mortgagee.

          SECTION 6.3. Certain Tax Law Changes. In the event of the passage after the Effective Date of any law deducting from the value of
real property, for the purpose of taxation, amounts in respect of any Lien thereon or changing in
any way the laws for the taxation of mortgages or debts secured by mortgages for state or local
purposes or the manner of the collection of any taxes, and imposing any taxes, either directly or
indirectly, on this Mortgage, the Mortgagor shall pay such taxes in accordance with Section
7.1 or if such taxes are assessed against the Mortgagee, shall promptly pay to the Mortgagee
such amount or amounts as may be necessary from time to time to pay any such taxes, assessments or
other charges resulting therefrom; provided, that if any such payment or reimbursement
shall be unlawful or taxable to Mortgagee, or would constitute usury or render the indebtedness
wholly or partially usurious under applicable law, the Mortgagor shall pay or reimburse Mortgagee
for payment of the lawful and non-usurious portion thereof.

          SECTION 6.4. Proceeds of Tax Claim. In the event that the proceeds of any tax claim are paid after the Mortgagee has exercised
its right to foreclose the Lien hereof, such proceeds shall be paid to the Mortgagee to satisfy any
deficiency remaining after such foreclosure. The Mortgagee shall retain its interest in the
proceeds of any tax claim during any redemption period. The amount of any such proceeds in excess
of any deficiency claim of the Mortgagee shall in a reasonably prompt manner be released to the
Mortgagor.

ARTICLE VII.

CONTESTING OF PAYMENTS

          SECTION 7.1. Contesting of Taxes and Certain Statutory Liens. The Mortgagor may at its own expense contest in good faith by appropriate proceedings the
validity, amount or applicability of any Charges or any law, provided, that (x) in the case of a
Charge, such contest would result in such Charge being a Permitted Collateral Lien, or (y) (i) such
proceedings are initiated prior to the delinquency of any such Charge, (ii) there is no imminent
foreclosure or risk of loss of the subject Mortgaged Property, (iii) Mortgagor diligently pursues
such proceedings to completion, and, (iv) in the case of Charges, adequate reserves with respect
thereto in accordance with GAAP have been set aside on the Co-Issuers’ or Mortgagor’s books.

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ARTICLE VIII.

DESTRUCTION, CONDEMNATION AND RESTORATION

          SECTION 8.1. Destruction and Restoration. Mortgagor or its affiliates shall have the right to retain the Proceeds received by the
Mortgagor or its affiliates in respect to any Destruction, except as required to be otherwise
applied in accordance with the Events of Loss provisions set forth in the Indenture.

          SECTION 8.2. Condemnation. If there shall occur any Taking or the commencement of any proceeding therefor, the
Mortgagor shall promptly notify the Mortgagee upon receiving notice of such Taking or commencement
of proceedings therefor. The Mortgagee may participate in any proceedings or negotiations which
are reasonably likely to result in any Taking, and the Mortgagor shall deliver or cause to be
delivered to the Mortgagee all instruments reasonably requested by it to permit such participation.
The Mortgagee may be represented by counsel satisfactory to it at the reasonable expense of the
Mortgagor in connection with any such participation. The Mortgagor shall pay all reasonable fees,
costs and expenses incurred by the Mortgagee in connection with any Taking and in seeking and
obtaining any award or payment on account thereof. Mortgagor or its affiliates shall have the
right to retain any proceeds, award or payment in respect of any Taking, except as required to be
otherwise applied in accordance with the Event of Loss provisions set forth in the Indenture.

          SECTION 8.3. Availability of Proceeds. Any Proceeds received by Mortgagor or its affiliates as a result of any Destruction or
Taking shall be applied in accordance with the Event of Loss provisions set forth in the Indenture.

ARTICLE IX.

EVENT OF DEFAULT AND REMEDIES

          SECTION 9.1. Events of Default. The occurrence of any Event of Default under the Indenture (as defined therein) shall
constitute an “Event of Default” hereunder.

          SECTION 9.2. Remedies in Case of an Event of Default. If any Event of Default shall have occurred and be continuing, the Mortgagee may at its
option, in addition to any other action permitted under this Mortgage or the other Notes Documents
or by law, statute or in equity, take one or more of the following actions to the greatest extent
permitted by applicable law:

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     (i) by written notice to the Mortgagor, and subject to the requirements of the
Indenture, declare the entire unpaid amount of the Secured Obligations to be due and payable
immediately;

     (ii) personally, or by its agents or attorneys, (A) enter into and upon and take
possession of all or any part of the Premises together with the books, records and accounts
of the Mortgagor relating thereto and, exclude the Mortgagor, its agents and servants wholly
therefrom, (B) use, operate, manage and control the Premises and conduct the business
thereof, (C) maintain and restore the Premises, (D) make all necessary or proper repairs,
renewals and replacements and such useful Alterations thereto and thereon as the Mortgagee
may deem advisable, (E) manage, lease and operate the Premises and carry on the business
thereof and exercise all rights and powers of the Mortgagor with respect thereto either in
the name of the Mortgagor or otherwise or (F) collect and receive all Rents. The Mortgagee
shall be under no liability for or by reason of any such taking of possession, entry,
removal or holding, operation or management except for any liability arising solely out of
its gross negligence or willful misconduct;

     (iii) with or without entry, personally or by its agents or attorneys, (A) sell the
Mortgaged Property and any or all estate, right, title and interest, claim and demand
therein at one or more sales in one or more parcels, in accordance with the provisions of
Section 9.3 or (B) institute and prosecute proceedings for the complete or partial
foreclosure of the Lien and security interests created and evidenced hereby; or

     (iv) take such steps to protect and enforce its rights whether by action, suit or
proceeding at law or in equity for the specific performance of any covenant, condition or
agreement in the Indenture, this Mortgage and the other Notes Documents, or in aid of the
execution of any power granted in this Mortgage, or for any foreclosure hereunder, or for
the enforcement of any other appropriate legal or equitable remedy or otherwise as the
Mortgagee shall elect.

          SECTION 9.3. Sale of Mortgaged Property if Event of Default Occurs; Proceeds of Sale.

     (i) If any Event of Default shall have occurred and be continuing, the Mortgagee may
institute an action to foreclose this Mortgage or take such other action as
may be permitted and available to the Mortgagee at law or in equity for the enforcement
of the Indenture and realization on the Mortgaged Property and proceeds thereon through
power of sale (if then available under applicable law) or to final judgment and execution
thereof for the Secured Obligations, and in furtherance thereof the Mortgagee may sell the
Mortgaged Property at one or more sales, as an entirety or in parcels, at such time and
place, upon such terms and after such notice thereof as may be required or permitted by law
or statute or in equity. The Mortgagee may execute and deliver to the purchaser at

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such
sale a conveyance of the Mortgaged Property in fee simple and an assignment or conveyance of
all the Mortgagor’s Interest in the Leases and the Mortgaged Property, each of which
conveyances and assignments shall contain recitals as to the Event of Default upon which the
execution of the power of sale herein granted depends, and effective upon the occurrence and
during the continuance of an Event of Default the Mortgagor hereby constitutes and appoints
the Mortgagee the true and lawful attorney-in-fact of the Mortgagor to make any such
recitals, sale, assignment and conveyance, and all of the acts of the Mortgagee as such
attorney in fact are hereby ratified and confirmed. The Mortgagor agrees that such recitals
shall be binding and conclusive upon the Mortgagor and that any assignment or conveyance to
be made by the Mortgagee shall divest the Mortgagor of all right, title, interest, equity
and right of redemption, including any statutory redemption (which rights are hereby
expressly waived to the fullest extent permitted by applicable law), in and to the Mortgaged
Property. The power and agency hereby granted are coupled with an interest and are
irrevocable by death or dissolution, or otherwise, and are in addition to any and all other
remedies which the Mortgagee may have hereunder, at law or in equity. So long as the
Secured Obligations, or any part thereof, remain unpaid, the Mortgagor agrees that upon the
occurrence and during the continuance of an Event of Default possession of the Mortgaged
Property by the Mortgagor, or any person claiming under the Mortgagor, shall be as tenant,
and, in case of a sale under power or upon foreclosure as provided in this Mortgage, the
Mortgagor and any person in possession under the Mortgagor, as to whose interest such sale
was not made subject, shall, at the option of the purchaser at such sale, then become and be
tenants holding over, and shall forthwith deliver possession to such purchaser, or be
summarily dispossessed in accordance with the laws applicable to tenants holding over. In
case of any sale under this Mortgage by virtue of the exercise of the powers herein granted,
or pursuant to any order in any judicial proceeding or otherwise, the Mortgaged Property may
be sold as an entirety or in separate parcels in such manner or order as the Mortgagee in
its sole discretion may elect. One or more exercises of powers herein granted shall not
extinguish or exhaust such powers, until the entire Mortgaged Property is sold or all
amounts secured hereby are paid in full.

     (ii) In the event of any sale made under or by virtue of this Article IX, the
entire principal of, and interest in respect of the Secured Obligations, if not previously
due and payable, shall, at the option of the Mortgagee, immediately become due and payable,
anything in this Mortgage to the contrary notwithstanding.

     (iii) The proceeds of any sale made under or by virtue of this Article IX,
together with any other sums which then may be held by the Mortgagee under this Mortgage,
whether under the provisions of this Article IX or otherwise, shall be applied in
the following order, except as may be otherwise provided herein or in the Indenture:
first, to the payment of all costs and expenses of such sale, collection or other
realization, including reasonable compensation to the Collateral Agent and its agents and
counsel, and all other expenses, liabilities and advances made or incurred by the Collateral
Agent

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in connection therewith, and all amounts for which the Collateral Agent is entitled to
indemnification hereunder (in its capacity as the Collateral Agent) and all advances made by
the Collateral Agent hereunder, and to the payment of all costs and expenses paid or
incurred by the Collateral Agent in connection with the exercise of any right or remedy
hereunder or under the Indenture, all in accordance with the terms hereof or thereof;
second, to the extent of any excess of such proceeds, to the payment of all other
Secured Obligations for the ratable benefit of the Secured Parties; and third, to
the extent of any excess of such proceeds, to the payment to or upon the order of the
Mortgagor or to whosoever may be lawfully entitled to receive the same or as a court of
competent jurisdiction may direct.

     (iv) The Mortgagee (on behalf of any Secured Party or on its own behalf) may bid for
and acquire the Mortgaged Property or any part thereof at any sale made under or by virtue
of this Article IX and, in lieu of paying cash therefor, may make settlement for the
purchase price by crediting against the purchase price the unpaid amounts (whether or not
then due) owing to the Mortgagee in respect of the Secured Obligations, after deducting from
the sales price the expense of the sale and the reasonable costs of the action or
proceedings and any other sums that the Mortgagee is authorized to deduct under this
Mortgage.

     (v) The Mortgagee may adjourn from time to time any sale by it to be made under or by
virtue hereof by announcement at the time and place appointed for such sale or for such
adjourned sale or sales, and the Mortgagee, without further notice or publication, may make
such sale at the time and place to which the same shall be so adjourned.

     (vi) If the Premises is comprised of more than one parcel of land, the Mortgagee may
take any of the actions authorized by this Section 9.3 in respect of any or a number
of individual parcels.

     (vii) To the fullest extent permitted by law, Mortgagor, for itself and all who may
claim through or under Mortgagor, hereby irrevocably and unconditionally waives (a) any and
all rights to have the Mortgaged Property and estates comprising the Mortgaged Property
marshaled upon any foreclosure of the lien of this Mortgage, and agrees that any court
having jurisdiction to foreclose such lien may order the Mortgaged Property sold in its
entirety, and (b) all benefit that might accrue to Mortgagor by virtue
of any present or future statute of limitations or law or judicial decision exempting
the Mortgaged Property from attachment, levy or sale on execution or providing for any stay
of execution, exemption from civil process, redemption or extension of time for payment.

          SECTION 9.4. Additional Remedies in Case of an Event of Default.

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     (i) The Mortgagee shall be entitled to recover judgment as aforesaid either before,
after or during the pendency of any proceedings for the enforcement of the provisions
hereof, and the right of the Mortgagee to recover such judgment shall not be affected by any
entry or sale hereunder, or by the exercise of any other right, power or remedy for the
enforcement of the provisions hereof, or the foreclosure of, or absolute conveyance pursuant
to, this Mortgage. In case of proceedings against the Mortgagor in insolvency or bankruptcy
or any proceedings for its reorganization or involving the liquidation of its assets, the
Mortgagee shall be entitled to prove the whole amount of principal and interest and other
payments, charges and costs due in respect of the Secured Obligations to the full amount
thereof without deducting therefrom any proceeds obtained from the sale of the whole or any
part of the Mortgaged Property; provided, however, that in no case shall the
Mortgagee receive a greater amount than the aggregate of such principal, interest and such
other payments, charges and costs (with interest at the Default Rate) from the proceeds of
the sale of the Mortgaged Property and the distribution from the estate of the Mortgagor.

     (ii) Any recovery of any judgment by the Mortgagee and any levy of any execution under
any judgment upon the Mortgaged Property shall not affect in any manner or to any extent the
Lien and security interests created and evidenced hereby upon the Mortgaged Property or any
part thereof, or any conveyances, powers, rights and remedies of the Mortgagee hereunder,
but such conveyances, powers, rights and remedies shall continue unimpaired as before.

     (iii) Any monies collected by the Mortgagee under this Section 9.4 shall be
applied in accordance with the provisions of Section 9.3(iii).

          SECTION 9.5. Legal Proceedings After an Event of Default.

     (i) After the occurrence and during the continuance of any Event of Default and
immediately upon the commencement of any action, suit or legal proceedings to obtain
judgment for the Secured Obligations or any part thereof, or of any proceedings to foreclose
the Lien and security interest created and evidenced hereby or otherwise enforce the
provisions hereof or of any other proceedings in aid of the enforcement
hereof, the Mortgagor shall enter its voluntary appearance in such action, suit or
proceeding.

     (ii) Upon the occurrence and during the continuance of an Event of Default, the
Mortgagee shall be entitled forthwith as a matter of right, concurrently or independently of
any other right or remedy hereunder either before or after declaring the Secured Obligations
or any
part thereof to be due and payable, to the appointment of a receiver without giving
notice to any party and without regard to the adequacy or inadequacy of any security for the
Secured Obligations or the solvency or insolvency of any person or entity then legally or
equitably liable for the Secured Obligations or any

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portion thereof. The Mortgagor hereby
consents to the appointment of such receiver. Notwithstanding the appointment of any
receiver, the Mortgagee shall be entitled as pledgee to the possession and control of any
cash, deposits or instruments at the time held by or payable or deliverable under the terms
of the Security Documents.

     (iii) The Mortgagor shall not (A) at any time insist upon, or plead, or in any manner
whatsoever claim or take any benefit or advantage of any stay or extension or moratorium
law, any exemption from execution or sale of the Mortgaged Property or any part thereof,
wherever enacted, now or at any time hereafter in force, which may affect the covenants and
terms of performance hereof, (B) claim, take or insist on any benefit or advantage of any
law now or hereafter in force providing for the valuation or appraisal of the Mortgaged
Property, or any part thereof, prior to any sale or sales of the Mortgaged Property which
may be made pursuant to this Mortgage, or pursuant to any decree, judgment or order of any
court of competent jurisdiction or (C) after any such sale or sales, claim or exercise any
right under any statute heretofore or hereafter enacted to redeem the property so sold or
any part thereof. To the extent permitted by applicable law, the Mortgagor hereby expressly
(W) waives all benefit or advantage of any such law or laws, including, without limitation,
any statute of limitations applicable to this Mortgage, (X) waives any and all rights to
trial by jury in any action or proceeding related to the enforcement hereof, (Y) waives any
objection which it may now or hereafter have to the laying of venue of any action, suit or
proceeding brought in connection with this Mortgage and further waives and agrees not to
plead that any such action, suit or proceeding brought in any such court has been brought in
an inconvenient forum and (Z) covenants not to hinder, delay or impede the execution of any
power granted or delegated to the Mortgagee by this Mortgage but to suffer and permit the
execution of every such power as though no such law or laws had been made or enacted. The
Mortgagee shall not be liable for any incorrect or improper payment made pursuant to this
Article IX in the absence of gross negligence or willful misconduct.

          SECTION 9.6. Remedies Not Exclusive. No remedy conferred upon or reserved to the Mortgagee by this Mortgage is intended to be
exclusive of any other remedy or remedies, and each and every such remedy shall
be cumulative and shall be in addition to every other remedy given under this Mortgage or now
or hereafter existing at law or in equity. Any delay or omission of the Mortgagee to exercise any
right or power accruing on any Event of Default shall not impair any such right or power and shall
not be construed to be a waiver of or acquiescence in any such Event of Default. Every power and
remedy given by this Mortgage may be exercised from time to time concurrently or independently,
when and as often as may be deemed expedient by the Mortgagee in such order and manner as the
Mortgagee, in its sole discretion, may elect. If the Mortgagee accepts any monies required to be
paid by the Mortgagor under this Mortgage after the same become due, such acceptance shall not
constitute a waiver of the right either to require prompt payment, when due, of all other
sums
secured by this Mortgage or to declare an Event of Default with regard to subsequent defaults. If
the Mortgagee accepts any monies required to be paid by the Mortgagor under this Mortgage in an
amount less than the

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sum then due, such acceptance shall be deemed an acceptance on account only
and on the condition that it shall not constitute a waiver of the obligation of the Mortgagor to
pay the entire sum then due, and the Mortgagor’s failure to pay the entire sum then due shall be
and continue to be a default hereunder notwithstanding acceptance of such amount on account.

          SECTION 9.7. Costs of Enforcement. All sums advanced and expenses incurred at any time by Mortgagee or any Secured Party under
this Article IX shall bear interest at the Default Rate from the date that such sum was
advanced or expense incurred to and including the date of reimbursement, and such shall be Secured
Obligations hereunder. Mortgagor shall pay all expenses (including reasonable attorneys’ fees and
expenses) of or incidental to the perfection and enforcement of this Mortgage and the other
Security Documents, or the enforcement, compromise or settlement of the Secured Obligations or any
claim under this Mortgage and the other Security Documents, or for defending or asserting the
rights and claims of Mortgagee or the Secured Parties in respect thereof, by litigation or
otherwise.

ARTICLE X.

SECURITY AGREEMENT AND FIXTURE FILING

          SECTION 10.1. Security Agreement. To the extent that the Mortgaged Property includes personal property or items of personal
property which are or are to become fixtures under applicable law, this Mortgage shall also be
construed as a security agreement under the UCC; and, upon the occurrence and during the
continuance of an Event of Default, the Mortgagee shall be entitled with respect to such personal
property to exercise all remedies hereunder, all remedies available under the UCC with respect to
fixtures and all other remedies available under applicable law. Without limiting
the foregoing, such personal property may, at the Mortgagee’s option upon the occurrence and
during the continuance of an Event of Default, (i) be sold hereunder together with any sale of any
portion of the Mortgaged Property or otherwise, (ii) be sold pursuant to the UCC, or (iii) be dealt
with by the Mortgagee in any other manner permitted under applicable law. The Mortgagee may
require the Mortgagor to assemble such personal property and make it available to the Mortgagee at
a place to be designated by the Mortgagee. The Mortgagor acknowledges and agrees that a
disposition of the personal property in accordance with the Mortgagee’s rights and remedies in
respect to the Mortgaged Property as heretofore provided is a commercially reasonable disposition
thereof; provided, however, that the Mortgagee shall give the Mortgagor not less than ten (10)
days’ prior notice of the time and place of any intended disposition.

          SECTION 10.2. Fixture Filing. To the extent that the Mortgaged Property includes items of personal property which are or
are to become fixtures under applicable law, and to the extent permitted under applicable law, the
filing hereof in the real estate records of the county in which such Mortgaged Property is located
shall also operate from the time of filing as

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a fixture filing with respect to such Mortgaged
Property, and the following information is applicable for the purpose of such fixture filing, to
wit:

	 	 	 

	Name and Address of the debtor:

	 	Name and Address of the secured party:
	 
	 	 
	The Mortgagor having the address
described in the Preamble hereof.

The Mortgagor is a limited liability
company organized under the laws of the
State of Delaware whose Organization
Number is 3957245.

	 	The Mortgagee having the
address described in the
Preamble hereof, from which
address information concerning
the security interest may be
obtained.

This Financing Statement covers the following types or items of property:

The Mortgaged Property.

This Mortgage covers goods or items of personal property which are or are to
become fixtures upon the Land or Improvements.

The name of the record owner of the Land and Improvements on which such
fixtures are or are to be located is the Mortgagor.

In addition, Mortgagor authorizes the Mortgagee to file appropriate financing and continuation
statements under the UCC in effect in the jurisdiction in which the Mortgaged Property is located
which Mortgagee deems necessary to establish, preserve and protect the liens and security interests
intended to be granted to the Mortgagee pursuant to this Mortgage in the Mortgaged Property.

ARTICLE XI.

FURTHER ASSURANCES

          SECTION 11.1. Recording Documentation To Assure Security. The Mortgagor shall, forthwith after the execution and delivery hereof and thereafter, from
time to time, cause this Mortgage and any financing statement, continuation statement or similar
instrument relating to any thereof or to any property intended to be subject to the Lien hereof to
be filed, registered and recorded in such manner and in such places as may be required by any
present or future law in order to publish notice of and fully to protect the validity and priority
thereof (subject to Permitted Collateral Liens) or the Lien hereof purported to be created upon the
Mortgaged Property and the interest and rights of the Mortgagee therein.

          SECTION 11.2. Further Acts. The Mortgagor shall, at the sole cost and expense of the Mortgagor, do, execute,
acknowledge and deliver all and every such further acts,

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deeds, conveyances, mortgages,
assignments, notices of assignment, transfers, financing statements, continuation statements,
instruments and assurances as the Mortgagee shall from time to time request, which may be necessary
in the reasonable judgment of the Mortgagee from time to time to assure, perfect, convey, assign,
mortgage, transfer and confirm unto the Mortgagee, the property and rights hereby conveyed or
assigned or which the Mortgagor may be or may hereafter become bound to convey or assign to the
Mortgagee or for carrying out the intention or facilitating the performance of the terms hereof or
the filing, registering or recording hereof. Without limiting the generality of the foregoing, in
the event that the Mortgagee desires to exercise any remedies, consensual rights or
attorney-in-fact powers set forth in this Mortgage and determines it necessary to obtain any
approvals or consents of any Governmental Authority or any other person therefor, then, upon the
request of the Mortgagee, the Mortgagor agrees to reasonably assist and aid the Mortgagee to obtain
as soon as practicable any necessary approvals or consents for the exercise of any such remedies,
rights and powers. In the event the Mortgagor shall fail after demand to execute any instrument or
take any action required to be executed or taken by the Mortgagor under this Section 11.2,
the Mortgagee, upon notice to Mortgagor, may execute or take the same as the attorney-in-fact for
the Mortgagor, such power of attorney being coupled with an interest and is irrevocable.

          SECTION 11.3. Additional Security. Without notice to or consent of the Mortgagor and without impairment of the Lien and rights
created by this Mortgage, the Mortgagee may accept (but the Mortgagor shall not be obligated to
furnish) from the Mortgagor or from any other person, additional security for the Secured
Obligations. Neither the giving hereof nor the acceptance of any such additional security shall
prevent the Mortgagee from resorting, first, to such additional security, and,
second, to the security created by this Mortgage without affecting the Mortgagee’s Lien and
rights under this Mortgage.

ARTICLE XII.

MISCELLANEOUS

          SECTION 12.1. Covenants To Run with the Land. All of the grants, covenants, terms, provisions and conditions in this Mortgage shall run
with the Land and shall apply to, and bind the successors and assigns of, the Mortgagor. If there
shall be more than one mortgagor with respect to the Mortgaged Property, the covenants and
warranties hereof shall be joint and several.

          SECTION 12.2. Environmental Indemnity.

          (i) All risk of loss associated with non-compliance with Environmental Laws at the Mortgaged
Property, or with the presence of any Hazardous Material at, upon, within, contiguous to or
otherwise affecting the Mortgaged Property or any portion thereof, shall be

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solely with Mortgagor.
Accordingly, Mortgagor shall bear all risks and costs associated with any loss (including any loss
in value attributable to Hazardous Materials), damage or liability from such non-compliance or
presence of any Hazardous Material, including all costs of removal of such Hazardous Material or
other related remediation required by Environmental Laws. Mortgagor shall indemnify, defend and
hold Collateral Agent harmless from and against all loss, liabilities, damages, claims, costs and
expenses (including reasonable costs of defense) (hereinafter collectively referred to as
“Liabilities”), arising out of or associated, in any way, with:

	 	(A)	 	the non-compliance of the Mortgaged Property
with Environmental Laws; or
	 
	 	(B)	 	the existence or presence of Hazardous
Materials in concentrations in excess of applicable standards under
Environmental Laws in, on, or about the Mortgaged Property or any
portion thereof;

whether based in contract, tort, implied or express warranty, strict liability, criminal or civil
statute or common law, including those Liabilities arising from the joint, concurrent or
comparative negligence of Collateral Agent; however, Mortgagor shall not be liable under
such indemnification to the extent such Liabilities result directly from Collateral Agent’s gross
negligence or willful misconduct.

Mortgagor’s obligations under this Section shall arise upon the discovery of the presence of any
Hazardous Material, whether or not any governmental authority has taken or threatened any action in
connection with the presence of any Hazardous Materials and whether or not the existence of any
such Hazardous Material or potential liability on account thereof is disclosed in the Site
Assessment and shall continue notwithstanding the repayment of the Notes or any transfer or sale of
any right, title and interest in the Mortgaged Property or any portion thereof (by foreclosure,
deed in lieu of foreclosure or otherwise), but shall not apply to any actions taken or events
occurring after such transfer or sale or after Mortgagee or a receiver in any bankruptcy proceeding
takes possession of the Mortgaged Property. For the avoidance of doubt, such liabilities shall
survive any such transfer or sale or taking possession to the extent such liabilities arose, or are
the result of circumstances or actions occurring, prior to such transfer, sale or taking
possession.

          SECTION 12.3. No Merger. The rights and estate created by this Mortgage shall not, under any circumstances, be held
to have merged into any other estate or interest now owned or hereafter acquired by the Mortgagee
unless the Mortgagee shall have consented to such merger in writing.

          SECTION 12.4. Secured Obligations to Include Judgments; Other Collateral. The term “Secured Obligations” as defined in this Mortgage shall include, without
limitation, any judgment(s) or final decree(s) rendered to collect any money obligations of
Mortgagor to Mortgagee and/or any Secured Parties and/or to enforce the performance or collection
of all

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rights, remedies, obligations, covenants, agreements, conditions, indemnities,
representations, warranties, and other liabilities of the Mortgagor under this Mortgage or any or
all of the other Notes Documents. Furthermore, Mortgagor acknowledges and agrees that the Secured
Obligations are secured by the Mortgaged Property and various other collateral at the time of
execution of this Mortgage. Mortgagor specifically acknowledges and agrees that the Mortgaged
Property, in and of itself, if foreclosed or realized upon would not be sufficient to satisfy the
outstanding amount of the Secured Obligations. Accordingly, Mortgagor acknowledges that it is in
Mortgagee’s contemplation that the other collateral pledged to secure the Secured Obligations may
be pursued by Mortgagee in separate proceedings in the various states and counties where such
collateral may be located and additionally that Mortgagor will remain liable for any deficiency
judgments in addition to any amounts Mortgagee and/or the other Secured Parties may realize on
sales of other property or any other collateral given as security for the Secured Obligations.
Specifically, and without limitation of the foregoing, it is agreed that it is the intent of the
parties hereto that in the event of a foreclosure of this Mortgage, that the Secured Obligations
shall not be deemed merged into any judgment of foreclosure, but shall rather remain outstanding to
the fullest extent permitted by applicable law.

          SECTION 12.5. Concerning Mortgagee.

          (i) The Mortgagee has been appointed as Collateral Agent pursuant to the Indenture.

          (ii) The Mortgagee shall be deemed to have exercised reasonable care in the custody and
preservation of the Mortgaged Property in its possession if such Mortgaged Property is accorded
treatment substantially equivalent to that which the Mortgagee, in its individual capacity, accords
its own property consisting of similar instruments or interests, it being understood that neither
the Mortgagee nor any of the Secured Parties shall have responsibility for taking any necessary
steps to preserve rights against any person with respect to any Mortgaged Property.

          (iii) With respect to any of its rights and obligations as a Secured Party, the Mortgagee
shall have and may exercise the same rights and powers hereunder. The term “Secured Parties,”
“Secured Party” or any similar terms shall, unless the context clearly otherwise indicates, include
the Mortgagee in its capacity as Collateral Agent and as a Secured Party. The Mortgagee may accept
deposits from, lend money to, and generally engage in any kind of banking, trust or other business
with the Mortgagor or any Affiliate of the Mortgagor to the same extent as if the Mortgagee were
not acting as Trustee and Collateral Agent.

          (iv) If any portion of the Mortgaged Property also constitutes collateral granted to the
Mortgagee under any other deed of trust, mortgage, security agreement, pledge or instrument of any
type, in the event of any conflict between the provisions hereof and the provisions of such other
deed of trust, mortgage, security agreement, pledge or instrument of any type in respect of such
collateral, (x) if the conflict regards personal property covered by the

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Security Agreement, the
provisions of the Security Agreement shall control, and (y) in all other cases the Mortgagee, in
its sole discretion, shall select which provision or provisions shall control.

          SECTION 12.6. Mortgagee May Perform; Mortgagee Appointed Attorney-in-Fact. If the Mortgagor shall fail to perform any covenants contained in this Mortgage (including,
without limitation, the Mortgagor’s covenants to (i) pay the premiums in respect of all required
insurance policies hereunder, (ii) pay Charges, (iii) make repairs, (iv) discharge Liens or (v) pay
or perform any obligations of the Mortgagor with respect to any Mortgaged Property), the Mortgagee
may (but shall not be obligated to) (x) following the occurrence of an Event of Default, or (y)
after delivery of notice to Mortgagor and (1) passage of any applicable grace periods hereunder or
under the Indenture, or (2) the passage of such shorter period of time as reasonably necessary to
prevent the Premises from being uninsured or reasonably necessary to prevent an imminent
foreclosure, do the same or cause it to be done or remedy any such breach, and may expend funds for
such purpose, which shall bear interest at the Default Rate and be secured by this Mortgage;
provided, however, that the Mortgagee shall in no event be bound to inquire into the validity of
any tax, lien, imposition or other obligation which the Mortgagor fails
to pay or perform as and when required hereby and which the Mortgagor does not contest in
accordance with the provisions of Article VII hereof. Any and all amounts so expended by
the Mortgagee shall be paid by the Mortgagor in accordance with the provisions hereof. Neither the
provisions of this Section 12.6 nor any action taken by the Mortgagee pursuant to the
provisions of this Section 12.6 shall prevent any such failure to observe any covenant
contained in this Mortgage nor any breach of representation or warranty from constituting an Event
of Default. The Mortgagor hereby appoints the Mortgagee its attorney-in-fact, with full authority
in the place and stead of the Mortgagor and in the name of the Mortgagor, or otherwise, from time
to time in the Mortgagee’s discretion to take any action and to execute any instrument consistent
with the terms hereof and the other Notes Documents which the Mortgagee may deem reasonably
necessary to accomplish the purposes hereof if Mortgagee reasonably believes the security afforded
by this Mortgage may be impaired and if an Event of Default has occurred and is continuing. The
foregoing grant of authority is a power of attorney coupled with an interest and such appointment
shall be irrevocable for the term hereof. The Mortgagor hereby ratifies all that such attorney
shall lawfully do or cause to be done by virtue hereof.

          SECTION 12.7. Continuing Security Interest; Assignment. This Mortgage shall create a continuing Lien on and security interest in the Mortgaged
Property and shall (i) be binding upon the Mortgagor, its successors and assigns and (ii) inure,
together with the rights and remedies of the Mortgagee hereunder, to the benefit of the Mortgagee
for the benefit of the Secured Parties and each of their respective successors, transferees and
assigns. No other persons (including, without limitation, any other creditor of the Co-Issuers or
any of their Subsidiaries) shall have any interest herein or any right or benefit with respect
hereto. Without limiting the generality of the foregoing clause (ii), except to the extent, if
any, prohibited under the Indenture, any Secured Party may assign or otherwise transfer any
indebtedness held by it secured by this Mortgage to any other person, and such other person shall
thereupon become

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vested with all the benefits in respect thereof granted to such Secured Party,
herein or otherwise, subject, however, to the provisions of the Indenture.

          SECTION 12.8. Termination; Release. When all the Secured Obligations have been indefeasibly paid in full or all of the
Mortgaged Property shall otherwise be released from the Lien of this Mortgage pursuant to the
Indenture, the Lien of this Mortgage shall terminate. Upon termination of the Lien hereof or any
release of the Mortgaged Property or any portion thereof (whether arising from a sale of the
Mortgaged Property or otherwise), the Mortgagee shall, upon the request and at the sole cost and
expense of the Mortgagor, forthwith assign, transfer and deliver to the Mortgagor, against receipt
and without recourse to or warranty by the Mortgagee, such of the Mortgaged Property to be released
(in the case of a release) as may be in possession of the Mortgagee and as shall not have been sold
or otherwise applied pursuant to the terms hereof, and, with respect to any other Mortgaged
Property, proper documents and instruments (including UCC-3 termination statements, releases or
assignments of Mortgages) acknowledging the termination of the Lien
hereof or the assignment or release of such Mortgaged Property, as the case may be. In the
case of any such assignment, the terms of the same shall be without recourse to Mortgagee and
without any representation or warranty (express, implied or otherwise) on behalf of Mortgagee, and
Mortgagee shall not enter into or issue any other estoppels, agreements or other instruments in
connection therewith. As a condition precedent to providing such assignment, Mortgagor shall pay
all of Mortgagee’s out-of-pocket costs and expenses in connection therewith (including reasonable
attorneys’ fees).

          SECTION 12.9. Modification in Writing. No amendment, modification, supplement, termination or waiver of or to any provision
hereof, nor consent to any departure by the Mortgagor therefrom, shall be effective unless the same
shall be done in accordance with the terms of the Indenture and unless in writing and signed by the
Mortgagee. Any amendment, modification or supplement of or to any provision hereof, any waiver of
any provision hereof and any consent to any departure by the Mortgagor from the terms of any
provision hereof shall be effective only in the specific instance and for the specific purpose for
which made or given. Except where notice is specifically required by this Mortgage or any other
Notes Document, no notice to or demand on the Mortgagor in any case shall entitle the Mortgagor to
any other or further notice or demand in similar or other circumstances.

          SECTION 12.10. Notices. Any notice to be given or required hereunder shall be provided in accordance with Section
13.02 of the Indenture, to Trustor, Mortgaged Property Trustee, or Beneficiary, as applicable, at
the address set forth below:

          (i) If to Mortgagor:

Mason Family Resorts, LLC

c/o Great Wolf Resorts, Inc.

122 West Washington Avenue

Suite 600

-35-

 

Madison, WI 53703

Attention: General Counsel

Phone: (608) 661-4700

Fax: (608) 661-4701

          (ii) If to Mortgagee:

Great Wolf Administrator

c/o U.S. Bank National Association

60 Livingston Avenue

EP-MN-WS3C

St. Paul, MN 55107-2292

Phone: (651) 495-3918

Fax: (651) 495-8097

          SECTION 12.11. GOVERNING LAW; SERVICE OF PROCESS; WAIVER OF JURY TRIAL. THIS MORTGAGE SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH,
THE LAWS OF THE STATE IN WHICH THE PREMISES ARE LOCATED, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS
OF LAWS, EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF THE SECURITY INTEREST HEREUNDER,
OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR ITEM OR TYPE OF MORTGAGED PROPERTY ARE GOVERNED
BY THE LAWS OF A JURISDICTION OTHER THAN SUCH STATE. MORTGAGOR AGREES THAT SERVICE OF PROCESS IN
ANY PROCEEDING MAY BE EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY
SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO THE MORTGAGOR AT ITS ADDRESS SET FORTH IN
SECTION 12.10 HEREOF OR AT SUCH OTHER ADDRESS OF WHICH THE MORTGAGEE SHALL HAVE BEEN
NOTIFIED PURSUANT THERETO. IF ANY AGENT APPOINTED BY MORTGAGOR REFUSES TO ACCEPT SERVICE,
MORTGAGOR HEREBY AGREES THAT SERVICE UPON IT BY MAIL SHALL CONSTITUTE SUFFICIENT NOTICE. NOTHING
HEREIN SHALL AFFECT THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT
THE RIGHT OF MORTGAGEE TO BRING PROCEEDINGS AGAINST MORTGAGOR IN THE COURTS OF ANY OTHER
JURISDICTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN
ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS MORTGAGE OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

          SECTION 12.12. Severability of Provisions. Any provision hereof which is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof or affecting the validity or enforceability of such
provision in any other jurisdiction.

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          SECTION 12.13. Limitation on Interest Payable. It is the intention of the parties to conform strictly to the usury laws, whether state or
Federal, that are applicable to the transaction of which this Mortgage is a part. All agreements
between the Mortgagor and the Mortgagee whether now existing or hereafter arising and whether oral
or written, are hereby expressly limited so that in no contingency or event
whatsoever shall the amount paid or agreed to be paid by the Mortgagor for the use,
forbearance or detention of the money to be loaned under the Indenture or any other Notes Document,
or for the payment or performance of any covenant or obligation contained herein or in the
Indenture or any other Notes Document, exceed the maximum amount permissible under applicable
Federal or state usury laws. If under any circumstances whatsoever fulfillment of any such
provision, at the time performance of such provision shall be due, shall involve exceeding the
limit of validity prescribed by law, then the obligation to be fulfilled shall be reduced to the
limit of such validity. If under any circumstances the Mortgagor shall have paid an amount deemed
interest by applicable law, which would exceed the highest lawful rate, such amount that would be
excessive interest under applicable usury laws shall be applied to the reduction of the principal
amount owing in respect of the Secured Obligations and not to the payment of interest, or if such
excessive interest exceeds the unpaid balance of principal and any other amounts due hereunder, the
excess shall be refunded to the Mortgagor. All sums paid or agreed to be paid for the use,
forbearance or detention of the principal under any extension of credit by the Mortgagee shall, to
the extent permitted by applicable law, and to the extent necessary to preclude exceeding the limit
of validity prescribed by law, be amortized, prorated, allocated and spread from the Effective Date
until payment in full of the Secured Obligations so that the actual rate of interest on account of
such principal amounts is uniform throughout the term hereof.

          SECTION 12.14. Business Days. In the event any time period or any date provided in this Mortgage ends or falls on a day
other than a Business Day, then such time period shall be deemed to end and such date shall be
deemed to fall on the next succeeding Business Day, and performance herein may be made on such
Business Day, with the same force and effect as if made on such other day.

          SECTION 12.15. Relationship. The relationship of the Mortgagee to the Mortgagor hereunder is strictly and solely that of
lender and borrower and mortgagor and mortgagee and nothing contained in the Indenture, this
Mortgage, the other Notes Documents or any other document or instrument now existing or delivered
in connection therewith or otherwise in connection with the Secured Obligations is intended to
create, or shall in any event or under any circumstance be construed as creating a partnership,
joint venture, tenancy-in-common, joint tenancy or other relationship of any nature whatsoever
between the Mortgagee and the Mortgagor other than as lender and borrower and mortgagor and
mortgagee.

          SECTION 12.16. Waiver of Stay.

          (i) The Mortgagor agrees, to the full extent that it may lawfully do so, that in the event
that the Mortgagor or any property or assets of the Mortgagor shall hereafter become

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the subject of
a voluntary or involuntary proceeding under the Bankruptcy Code or the
Mortgagor shall otherwise be a party to any Federal or state bankruptcy, insolvency,
moratorium or similar proceeding to which the provisions relating to the automatic stay under
Section 362 of the Bankruptcy Code or any similar provision in any such law is applicable, then, in
any such case, whether or not the Mortgagee has commenced foreclosure proceedings under this
Mortgage, the Mortgagee shall be entitled to relief from any such automatic stay as it relates to
the exercise of any of the rights and remedies (including, without limitation, any foreclosure
proceedings) available to the Mortgagee as provided in this Mortgage or in any other Security
Document.

          (ii) The Mortgagee shall have the right to petition or move any court having jurisdiction over
any proceeding described in Section 12.16(i) hereof for the purposes provided therein, and
the Mortgagor agrees not to oppose any such petition or motion and at Mortgagor’s sole but
reasonable cost and expense, to assist and cooperate with the Mortgagee, as may be reasonably
requested by the Mortgagee from time to time, in obtaining any relief requested by the Mortgagee,
including, without limitation, by filing any such petitions, supplemental petitions, requests for
relief, documents, instruments or other items from time to time reasonably requested by the
Mortgagee or any such court.

          SECTION 12.17. No Credit for Payment of Taxes or Impositions. The Mortgagor shall not be entitled to any credit against the principal, premium, if any,
or interest payable under the Indenture or any other Notes Document, and the Mortgagor shall not be
entitled to any credit against any other sums which may become payable under the terms thereof or
hereof, by reason of the payment of any Charge on the Mortgaged Property or any part thereof.

          SECTION 12.18. No Claims Against the Mortgagee. Nothing contained in this Mortgage shall constitute any consent or request by the
Mortgagee, express or implied, for the performance of any labor or services or the furnishing of
any materials or other property in respect of the Premises or any part thereof, nor as giving the
Mortgagor any right, power or authority to contract for or permit the performance of any labor or
services or the furnishing of any materials or other property in such fashion as would permit the
making of any claim against the Mortgagee in respect thereof or any claim that any Lien based on
the performance of such labor or services or the furnishing of any such materials or other property
is prior to the Lien hereof.

          SECTION 12.19. Obligations Absolute. All obligations of the Mortgagor hereunder shall be absolute and unconditional irrespective of:

          (i) any bankruptcy, insolvency, reorganization, arrangement, readjustment, composition,
liquidation or the like of the Mortgagor or any other obligor;

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          (ii) any lack of validity or enforceability of either the Indenture, any other Notes Document,
or any other agreement or instrument relating thereto;

          (iii) any change in the time, manner or place of payment of, or in any other term of, all or
any of the Secured Obligations, or any other amendment or waiver of or any consent to any departure
from either the Indenture, any other Notes Document, or any other agreement or instrument relating
thereto;

          (iv) any exchange, release or non-perfection of any Mortgaged Property or any Other
Collateral, or any release or amendment or waiver of or consent to any departure from any
guarantee, for all or any of the Secured Obligations;

          (v) any exercise or non-exercise, or any waiver of any right, remedy, power or privilege under
or in respect hereof or any other Notes Document except as specifically set forth in a waiver
granted pursuant to the provisions of Section 12.9 hereof; or

          (vi) any other circumstances which might otherwise constitute a defense available to, or a
discharge of, the Mortgagor.

          SECTION 12.20. Mortgagee’s Right To Sever Indebtedness.

          (i) The Mortgagor acknowledges that (A) the Mortgaged Property does not constitute the sole
source of security for the payment and performance of the Secured Obligations and that the Secured
Obligations are also secured by other property of Mortgagor, and property of the Mortgagor’s
Affiliates in other jurisdictions (all such property, collectively, the “Other
Collateral”), (B) the number of such jurisdictions and the nature of the transaction of which
this Mortgage is a part are such that it would have been impracticable for the parties to allocate
to each item of Other Collateral a specific loan amount and to execute in respect of such item a
separate credit agreement and (C) the Mortgagor intends that the Mortgagee have the same rights
with respect to the Mortgaged Property, in foreclosure or otherwise, that the Mortgagee would have
had if each item of Other Collateral had been secured, mortgaged or pledged pursuant to a separate
credit agreement, mortgage or security instrument. In furtherance of such intent, the Mortgagor
agrees that the Mortgagee may at any time by notice (an “Allocation Notice”) to the
Mortgagor allocate a portion (the “Allocated Indebtedness”) of the Secured Obligations to
the Mortgaged Property and sever from the remaining Secured Obligations the Allocated Indebtedness.
From and after the giving of an Allocation Notice with respect to the Mortgaged Property, the
Secured Obligations hereunder shall be limited to the extent set forth in the Allocation Notice and
(as so limited) shall, for all purposes, be construed as a separate loan obligation of the
Mortgagor unrelated to the other transactions contemplated by either the Indenture, any other Notes
Document or any document related to any thereof. To the extent that the proceeds on any
foreclosure of the Mortgaged Property shall exceed the Allocated Indebtedness, such proceeds shall
belong to the Mortgagor and shall not be available
hereunder to satisfy any Secured Obligations of the Mortgagor other than the Allocated

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Indebtedness. In any action or proceeding to foreclose the Lien hereof or in connection with any
power of sale, foreclosure or other remedy exercised under this Mortgage commenced after the giving
by the Mortgagee of an Allocation Notice, the Allocation Notice shall be conclusive proof of the
limits of the Secured Obligations hereby secured, and the Mortgagor may introduce, by way of
defense or counterclaim, evidence thereof in any such action or proceeding. Notwithstanding any
provision of this Section 12.20, the proceeds received by the Mortgagee pursuant to this
Mortgage shall be applied by the Mortgagee in accordance with the provisions of Section
9.3(iii) hereof.

          (ii) The Mortgagor hereby waives to the greatest extent permitted under law the right to a
discharge of any of the Secured Obligations under any statute or rule of law now or hereafter in
effect which provides that foreclosure of the Lien hereof or other remedy exercised under this
Mortgage constitutes the exclusive means for satisfaction of the Secured Obligations or which makes
unavailable a deficiency judgment or any subsequent remedy because the Mortgagee elected to proceed
with a power of sale foreclosure or such other remedy or because of any failure by the Mortgagee to
comply with laws that prescribe conditions to the entitlement to a deficiency judgment. In the
event that, notwithstanding the foregoing waiver, any court shall for any reason hold that the
Mortgagee is not entitled to a deficiency judgment, the Mortgagor shall not (A) introduce in any
other jurisdiction such judgment as a defense to enforcement against the Mortgagor of any remedy in
any Notes Document or (B) seek to have such judgment recognized or entered in any other
jurisdiction, and any such judgment shall in all events be limited in application only to the state
or jurisdiction where rendered.

          (iii) In the event any instrument in addition to the Allocation Notice is necessary to
effectuate the provisions of this Section 12.20, including, without limitation, any
amendment to this Mortgage, any substitute promissory note or affidavit or certificate of any kind,
the Mortgagee may execute, deliver or record such instrument as the attorney-in-fact of the
Mortgagor. Such power of attorney is coupled with an interest and is irrevocable.

          (iv) Notwithstanding anything set forth herein to the contrary, the provisions of this
Section 12.20 shall be effective only to the maximum extent permitted by law.

          SECTION 12.21. Multi-Site Real Estate Transaction. Mortgagor acknowledges that this Mortgage is one of a number of mortgages and other
security documents (“Other Mortgages”) that secure the Secured Obligations. Mortgagor
agrees that the lien of this Mortgage shall be absolute and unconditional and shall not in any
manner be affected or impaired by any acts or omissions whatsoever of Mortgagee, and without
limiting the generality of the foregoing, the lien hereof shall not be impaired by any acceptance
by Mortgagee of any security for or guarantees of the Secured Obligations, or by any failure,
neglect or omission on the part of Mortgagee to realize upon or protect any Secured Obligation or
any collateral security therefor including the Other Mortgages. The lien of this Mortgage shall
not in any manner be impaired or affected by any release (except as to the property released),
sale, pledge, surrender, compromise, settlement, renewal, extension, indulgence, alteration,
changing, modification or disposition of

-40-

 

any of the Secured Obligations or of any of the collateral
security therefor, including the Other Mortgages or any guarantee thereof, and, to the fullest
extent permitted by applicable law, Mortgagee may at its discretion foreclose, exercise any power
of sale, or exercise any other remedy available to it under any or all of the Other Mortgages
without first exercising or enforcing any of its rights and remedies hereunder. Such exercise of
Mortgagee’s rights and remedies under any or all of the Other Mortgages shall not in any manner
impair the indebtedness hereby secured or the lien of this Mortgage and any exercise of the rights
and remedies of Mortgagee hereunder shall not impair the lien of any of the Other Mortgages or any
of Mortgagee’s rights and remedies thereunder. To the fullest extent permitted by applicable law,
Mortgagor specifically consents and agrees that Mortgagee may exercise its rights and remedies
hereunder and under the Other Mortgages separately or concurrently and in any order that it may
deem appropriate and waives any right of subrogation.

ARTICLE XIII.

STATE OF OHIO PROVISIONS

          To the extent of any conflict between the provisions of this Article XIII and any of
the other provisions of this Mortgage, the provisions of this Article XIII shall control.

          SECTION 13.1. Open-End Mortgage. This mortgage is intended by Mortgagor and Mortgagee to constitute an “Open-End Mortgage” that
complies with Section 5301.232 of the Ohio Revised Code, and is intended, in addition to securing
the Secured Obligations, to secure unpaid balances of advances made after this Mortgage is
delivered to the county recorder for record. The maximum amount of unpaid indebtedness which may be
outstanding at any time (exclusive of interest thereon and exclusive of unpaid balances of advances
made for the payment of taxes, assessments, insurance premiums, and costs incurred for the
protection of the Mortgaged Property) shall not exceed TWO HUNDRED THIRTY MILLION AND NO/100
DOLLARS ($230,000,000). In addition to the Secured Obligations secured hereby, this Mortgage shall
secure unpaid balances of advances made for the payment of taxes, assessments, insurance premiums,
and costs incurred for the protection of the Mortgaged Property as provided in Ohio Revised Code
Section 5301.233.

          SECTION 13.2. Mechanics’ Lien Law. Mortgagee shall be and hereby is authorized and empowered to do, as Mortgagee, all things
provided to be done in the mechanics’ lien laws of the State of Ohio
(including Section 1311.14 of the Ohio Revised Code), and all acts amendatory or supplementary
thereto.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

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          IN WITNESS WHEREOF, the Mortgagor has caused this Mortgage to be duly executed and delivered
under seal as of the Effective Date.

	 	 	 	 	 	 	 

	 

	 	MASON FAMILY RESORTS, LLC
	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Great Wolf Lodge of PKI, LLC	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	GWR Operating Partnership, L.L.L.P.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	GWR OP General Partner, LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Great Wolf Resorts, Inc.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ J. Michael Schroeder	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	J. Michael Schroeder	 	 
	 

	 	Title:
	 	Corporate Secretary
	 	 

S-1

 

ACKNOWLEDGMENT

	 	 	 

	STATE OF WISCONSIN

	 	) 
	 

	 	) SS:
	DANE COUNTY

	 	) 

          Before me, a Notary Public in and for said County and State personally appeared the above
named Great Wolf Resorts, Inc., a Delaware corporation, the Sole Member of GWR OP General Partner,
LLC, a Delaware limited liability company, the General Partner of GWR Operating Partnership,
L.L.L.P., a Delaware limited liability limited partnership, the Sole Member of Great Wolf Lodge of
PKI, LLC, a Delaware limited liability company, the Sole Member of Mason Family Resorts, LLC, a
Delaware limited liability company, by J. Michael Schroeder, its Secretary , who acknowledged that
he/she did sign the foregoing instrument, and that the same is the free act and deed of said
limited liability company, and the free act and deed of him/her personally and as such officer.

          In testimony whereof, I have hereunto set my hand and official seal this 5th day of April,
2010.

	 	 	 	 	 
	 	 	 
	 	     /s/ Nikki Rockstroh
 	 
	 	Notary Public

Commission Expires 8/11/2013 	 
	 	 	 
	 

 

 

This instrument prepared outside

the state of Ohio by:

Jeffrey N. Anderson

Latham & Watkins LLP

233 S. Wacker Dr., Suite 5800

Chicago, IL 60606

 

 

Schedule A

Legal Description

Real property in the City of Mason, County of Warren, State of Ohio, described as follows:

Lot 1 of Great Wolf Subdivision as recorded in Plat Book No. 70 on Pages 74 and 75, situated in the
Township of Deerfield (now in the City of Mason), Warren County, Ohio.

The above described parcel being those lands conveyed to Mason Family Resorts, LLC, as recorded in
Official Record Volume 3934, Pages 127 through 129, Recorder’s Office, Warren County, Ohio, and
further identified by Parcel No. 16-18-300-19. The bearings are based on the Engineers Record of
Land Surveys Volume 75, Page 37 of Warren County Records.

 

 

Schedule B

Leases

NONE

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