Document:

djlmortgage.htm

     

    
      

      

    

    EXHIBIT
4.8

     

     

    

    MORTGAGE,
ASSIGNMENT OF RENTS,

    SECURITY
AGREEMENT AND FIXTURE FINANCING STATEMENT

    Recorder’s
Cover Sheet

    

    

    Preparer Information: (name,
address and phone number)

    Elaine
Wang, Esq.

    Latham
& Watkins LLP

    885 Third
Avenue

    New York,
NY  10022

    (212)
906-1200

    

    Taxpayer Information: (name
and complete address)

    Diamond
Jo, LLC

    600 Star
Brewery Dr., Ste 110

    Dubuque,
IA  52001

    

    Return Document To: (name and
complete address)

    Elaine
Wang, Esq.

    Latham
& Watkins LLP

    885 Third
Avenue

    New York,
NY  10022

    

    Grantors:

    Diamond
Jo, LLC

    

    Grantees:

    U.S. Bank
National Association, as Collateral Agent

    

    Legal Description: See
Attached

    

    Document or instrument number of
previously recorded documents:  N/A

    

    

    

    

    
      
        
          
            

             
 

            |
NY\1552933.3||

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    MORTGAGE,

    ASSIGNMENT
OF RENTS,

    SECURITY
AGREEMENT

    AND

    FIXTURE
FINANCING STATEMENT

    

    FROM

    DIAMOND
JO, LLC

    TO

    U.S. BANK
NATIONAL ASSOCIATION, AS COLLATERAL AGENT

    

    

    

    

    

    NOTICE:  This
Mortgage secures credit in the amount of $240,000,000. Loans and advances up to
this amount, together with interest, are senior to indebtedness to other
creditors under subsequently recorded and filed mortgages and
liens.

     

    This
Mortgage contains an after-acquired property clause.

    

    
      
        
          
            

             
 

            |
NY\1552933.3||

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    This
Mortgage (the “Mortgage”) is made as of
August 6, 2009, by Diamond Jo, LLC, a Delaware limited liability company (the
“Company”), in favor of
U.S. Bank National Association, as collateral agent (the “Collateral Agent”) under the
Indenture dated as of the date hereof (the “Indenture”) among Peninsula
Gaming, LLC, a Delaware limited liability company (“PGL”), Peninsula Gaming Corp.,
a Delaware corporation (“PGC” and, together with PGL,
the “Issuers”), the
Company, as guarantor, and each other Subsidiary Guarantor (as defined therein)
party thereto, and U.S. Bank National Association, as Trustee and Collateral
Agent.

     

    RECITALS

     

    WHEREAS,
the Company is the sole owner of a fee simple interest for certain premises
located in Dubuque County, Iowa and more particularly described on Exhibit A attached
hereto (the “Real
Property”); and

     

    WHEREAS,
pursuant to the Indenture the Issuers have issued their 8.375% Senior Secured
Notes due 2015 (together with any replacements thereof as provided in the
Indenture and as the same may be amended or supplemented from time to time
hereafter, the “Notes”)
in the initial aggregate principal amount of $240,000,000, subject to increase
as provided in the Indenture and maturing on August 15, 2015.  The
Indenture provides that to secure performance by the Company of its obligations
under the Indenture, including the guarantee of payment of the Notes, the
Company will execute and deliver this Mortgage to the Collateral
Agent.  The Indenture, this Mortgage, the Security Documents and any
other document referred to in or made with reference to the Notes are hereby
incorporated by reference, and are sometimes collectively referred to as “Transaction
Documents.”  Capitalized terms used but not defined herein
shall have the meanings ascribed to such terms in the Indenture.

     

    GRANTING
CLAUSES

     

    NOW,
THEREFORE, in consideration of ten dollars and other good and valuable
consideration, the receipt of and sufficiency of which are hereby acknowledged,
and to secure the Obligations, including, without limitation, the
following:

     

    (i)        The
Company’s guarantee of payment when due of indebtedness evidenced by the Notes
in the maximum principal sum of $240,000,000 payable to the order of the
Holders, bearing interest as set forth in the Indenture and maturing on August
15, 2015, such date being the “Maturity Date,” and any notes
exchanged for the Notes or issued in replacement of the Notes (in each case
pursuant to the terms of the Indenture), including, without limitation, all
accrued and unpaid interest thereon, and premiums and penalties, if any,
thereon, including late payment charges and Additional Interest (as defined in
Section 5.2 hereof),

     

    (ii)        the
Company’s guarantee of payment if and when due of (a) the Change of Control
Payment (as defined in Section 4.15 of the Indenture), in an amount not to
exceed such amount calculated in accordance with Section 4.15 of the Indenture,
and (b) amounts due in connection with an Excess Proceeds Offer (as defined in
Section 4.13 of the Indenture) in an amount not to exceed such amount calculated
in accordance with Section 4.13 of the Indenture,

     

    

    
      
        
          
            

            |
NY\1552933.3||

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    in either
case together with interest thereon as set forth in the Indenture, and premiums
and penalties, if any, thereon,

     

    (iii)        all
other sums that may or shall become due hereunder, in connection with the Notes
or under the other Transaction Documents, including the costs and expenses of
enforcing any provision of any of the foregoing documents or any extensions or
modifications of the Notes or any substitutions therefor,

     

    (iv)        the
reimbursement to the Collateral Agent of all monies which may be advanced as
herein provided and of any and all costs and expenses (including reasonable
attorneys’ fees and expenses) incurred or paid on account of any litigation at
law or in equity that may arise in respect of this Mortgage or the obligations
secured hereby or the lands and premises and other property herein mentioned or
in obtaining possession of said lands and premises and other property after any
sale that may be made as hereinafter provided,

     

    (v)        the
payment by the Company to the Collateral Agent of all sums, if any, as may be
duly expended or advanced by the Collateral Agent in the performance of any
obligation of the Company as provided hereunder,

     

    (vi)        the
payment of any and all other indebtedness that this Mortgage by its terms
secures and

     

    (vii)        the
performance and observance of the covenants, agreements and obligations of the
Company contained herein and in the other Transaction Documents

     

    (all
obligations and sums included in the foregoing clauses (i), (ii), (iii), (iv),
(v), (vi) and (vii) being hereinafter collectively referred to as the “Secured Obligations”), and in
order to charge with such performance and with such payments said lands and
premises and other property hereinafter described and the rents, revenues,
issues, income and profits thereof, the Company does hereby mortgage, affect,
hypothecate, to inure to the use and benefit of the Collateral Agent (as
collateral agent under the Indenture), and its successors and assigns, all
right, title and interest of the Company now or hereafter owned or leased, in,
to or under, or derived from each and all of the following properties, estates,
rights, titles and interests (collectively, the “Mortgaged
Property”):

     

    (a)           the
Real Property and all tenements, hereditaments, appurtenances, estates and
rights in and to any of the Real Property and all component parts of the Real
Property;

     

    (b)           all
buildings, improvements and other structures now or hereafter located on any of
the Real Property (the “Improvements”);

     

    (c)           all
of the Company’s right, title and interest in and to all servitudes, easements,
rights-of-way, gores of land, streets, ways, alleys, passages, sewer rights,
waters, water courses, water rights and powers, and all estates, rights, title,
interests, privileges, liberties, prescriptions, advantages and appurtenances of
any nature whatsoever, in any way belonging, relating or pertaining to any of
the Real Property or the Improvements;

     

    

    
      
        
          
             

            |
NY\1552933.3||

          

           

        

        
          2

          
            

          

        

        
           

        

      

    

    

    (d)           all
of the Company’s right, title and interest in and to any right to purchase, or
to use and occupy, any land adjacent to any of the Real Property and any land
lying in the bed of any street, road or avenue, opened or proposed, in front of
or adjoining any of the Real Property;

     

    (e)           all
of the Company’s right, title and interest, to all machinery, apparatus,
equipment, fittings, fixtures and other property of every kind and nature
whatsoever now or hereafter located upon any of the Real Property or the
Improvements, and all component parts of any building or other construction
located on any of the Real Property or appurtenances thereto, and used in
connection with the operation and occupancy of any of the Real Property or the
Improvements, and all building equipment, material and supplies of any nature
whatsoever now or hereafter located in or upon any of the Real Property or the
Improvements, including, without limitation, all metals, lumber and lumber
products, bricks, stones, building blocks, sand, cement, roofing materials,
paint, doors, windows, hardware, wires, wiring and other building materials and
any building equipment, materials and supplies obtained for use in connection
with any of the Real Property or the Improvements and all additions,
replacements, modifications and alterations of any of the foregoing, including,
but without limiting the generality of the foregoing, all heating, lighting
incinerating and power equipment, engines, pipes, tanks, motors, conduits,
switchboards, plumbing, lifting, cleaning, fire prevention, fire extinguishing,
refrigerating, ventilating and communications apparatus, air cooling and air
conditioning apparatus, elevators, ducts and compressors and all other equipment
and fixtures (collectively, the “Fixtures”).  The
Company acknowledges that all Fixtures are part and parcel of the real estate
and appropriated to the use of the real estate and, whether or not affixed or
annexed to the Improvements, shall for the purpose of this Mortgage be deemed
conclusively to be real estate and mortgaged hereby;

     

    (f)           all
of the Company’s right, title and interest to all plans and specifications for
the Real Property and the Improvements, all contracts with architects and
engineers responsible for the design of the Improvements, the preparation or
evaluation of any of such plans and specifications or the supervision of the
construction of any of the Improvements, all contracts to which the Company is
now or hereafter a party providing for the connection therewith or the
furnishing or installation of any Fixtures or other personal property in
connection therewith, all contracts to which the Company is now or hereafter a
party providing for the management of the construction of any of the
Improvements, all rights of the Company as a third party beneficiary under all
contracts and subcontracts pertaining to the Real Property or the Improvements
as to which the Company is not a party, all payment and performance bonds
relating to the Real Property or the Improvements and all other contracts and
agreements related to the design, management, construction, equipping and
development of the Real Property or the Improvements (collectively, the “Construction
Documents”);

     

    

    
      
        
          
             

            |
NY\1552933.3||

          

           

        

        
          3

          
            

          

        

        
           

        

      

    

    

    (g)           all
of the Company’s right, title and interest to all awards or payments, and any
interest paid or payable with respect thereto, that may be made with respect to
all or any portion of the Real Property, the Improvements or the Fixtures,
whether from the exercise of right of condemnation, eminent domain or similar
proceedings (including any transfer made in lieu of the exercise of said right),
or from any taking for public use, or for any other injury to or decrease in the
value of all or any portion of the Real Property, the Improvements or the
Fixtures, or as a result of the exercise by any governmental authority of any
right or option to purchase any of the Real Property, all of the foregoing to be
held, applied and paid in accordance with the provisions of this Mortgage
(collectively, the “Eminent
Domain Awards”);

     

    (h)           all
of the Company’s right, title and interest to all proceeds of, and any unearned
premiums on, any insurance policies covering all or any portion of the Real
Property, the Improvements or the Rents (as hereinafter defined), including,
without limitation, the right to receive and apply the proceeds of any
insurance, judgments, or settlements made in lieu thereof, for damage to all or
any portion of the Real Property or the Improvements and any interest actually
paid with respect thereto, all of the foregoing to be held, applied and paid in
accordance with the provisions of this Mortgage (collectively, the “Insurance
Proceeds”);

     

    (i)           all
of the Company’s right, title and interest as lessor or landlord to all leases
and other agreements affecting the use or occupancy of any of the Real Property
or the Improvements now in effect or hereafter entered into (including, without
limitation, subleases (including licenses, concessions, tenancies and other
occupancy agreements covering or encumbering all or any portion of the Real
Property or the Improvements), but excluding any licenses and permits to the
extent not assignable under applicable law, including without limitation, liquor
and gaming licenses, together with any modifications, extensions or renewals of
the same (collectively, the “Space Leases”) and the rents,
revenues, issues, income, products and profits of the Real Property and the
Improvements, including, without limitation, any security deposits or other
funds deposited with the Company pursuant to the Space Leases (collectively, the
“Rents”), together with
any guarantees of the Space Leases or Rents delivered to the Company from time
to time, and any modifications, extensions and renewals of any such guarantees,
together with the right, but not the obligation, to exercise options, to give
consents and to collect, receive and receipt for the Rents and apply the Rents
to the payment of the Secured Obligations and to demand, sue for and recover the
Rents (when due and payable), subject to a license in favor of the Company in
respect thereof prior to the occurrence of an Event of Default (as defined in
Section 5.1 hereof); and

     

    (j)           any
and all other, further or additional rights, title, estates and interests of the
Company in and to any of the Real Property or the Improvements or the Fixtures,
and all renewals, substitutions and replacements of and all additions and
appurtenances to any of the Real Property or the Improvements or the
Fixtures or constructed, assembled or placed on any of the Real Property or the
Improvements, and all conversions of the assemblage, placement or conversion, as
the case may be, and in each such case without any further mortgage, conveyance,
assignment or other act by the Company, shall become subject to the lien of this
Mortgage as fully and completely, and with the same effect, as though now owned
by the Company, the Company expressly agreeing that if the Company shall at any
time acquire any other right, title, estate or interest in and to any of the
Real Property, the Improvements or the Fixtures, the lien of this Mortgage shall
automatically attach to and encumber such other right, title, estate or interest
as a lien thereon.

     

    

    
      
        
          
             

            |
NY\1552933.3||

          

           

        

        
          4

          
            

          

        

        
           

        

      

    

     

     

    AND, as
additional security, the Company hereby grants to the Collateral Agent a
continuing security interest in (a) the Fixtures, (b) the Construction
Documents, (c) the Insurance Proceeds, (d) the Eminent Domain Awards, (e) the
Space Leases, (f) the Rents, (g) all proceeds of the foregoing, (h) all proceeds
of any of the Real Property and the Improvements, and (i) the rights described
in clauses “c” and “d” of the definition of Mortgaged Property herein ((a)-(i),
collectively, the “Security
Interests Property”) and this Mortgage shall be effective as a security
agreement pursuant to the Uniform Commercial Code as enacted and in effect in
the state in which any of the Real Property is located (the “Code”).

     

    HABENDUM

     

    TO HAVE
AND TO HOLD the Mortgaged Property, the rights and privileges hereby conveyed or
assigned, or intended so to be, unto the Collateral Agent (as collateral agent
under the Indenture), its successors and assigns, forever for the uses and
purposes and subject to the terms and conditions herein set forth.

     

    SUBJECT,
HOWEVER, to Permitted Liens.

     

    PROVIDED
NEVERTHELESS, should the Company pay and perform all the Secured Obligations in
accordance with the Indenture and the Security Documents, then these presents
will be of no further force and effect, and this Mortgage shall be satisfied by
the Collateral Agent, at the expense of the Company.

     

    The
Company FURTHER agrees as follows:

     

    

     

    ARTICLE
I

    COVENANTS

     

    Section
1.1                      Performance of
Obligations.  The
Company shall pay and perform the Secured Obligations.  Time is of the
essence hereof.

     

    Section
1.2                      Further
Assurances.  If
the Collateral Agent requests, the Company shall sign and deliver and cause to
be recorded as the Collateral Agent shall reasonably direct any further
mortgages, instruments of further assurance, certificates and other documents as
the Collateral Agent may consider reasonably necessary or desirable in order to
perform, perfect, continue, and

     

    

    
      
        
          
             

            |
NY\1552933.3||

          

           

        

        
          5

          
            

          

        

        
           

        

      

    

    

    preserve
the obligations of the Company under the Transaction Documents.  The
Company further agrees to pay to the Collateral Agent, upon demand, all costs
and expenses incurred by the Collateral Agent in connection with the
preparation, execution, recording, filing and refiling of any such documents,
including attorneys’ fees and title opinion or title insurance
costs.

     

    Section
1.3                      Operation and Maintenance;
Compliance with Laws.  The
Company shall cause the Mortgaged Property to be maintained in normal working
order and condition, reasonable wear and tear excepted, and the Company shall
make all necessary repairs, renewals, replacements, additions, betterments and
improvements thereto, as shall be reasonably necessary for the proper conduct of
the business of the Company.  The Company shall comply or cause
compliance with all laws, ordinances and regulations of any governmental
authority with reference to the Mortgaged Property and the manner of using or
operating the same, including any Environmental Laws or Regulations and
Accessibility Regulations, as hereafter defined, and with any restrictive
covenants affecting the title to the Mortgaged Property, and with the terms of
all insurance policies relating to the Mortgaged Property.

     

    Section
1.4                      Payment of Utilities,
Impositions, Liens.  The
Company shall pay or cause to be paid when due all charges or fees for utilities
and services supplied to the Mortgaged Property.  The Company, at
least five (5) days before any penalty attaches thereto, shall pay and
discharge, or cause to be paid and discharged, all taxes, assessments and
governmental charges or levies (collectively, “Impositions”) imposed upon or
against it, its income or profits, the Mortgaged Property or rents therefrom, or
upon or against the Secured Obligations, or upon or against the interest of the
Collateral Agent in the Mortgaged Property or the Secured Obligations, except
Impositions measured by the income of the Collateral Agent.  The
Company shall provide evidence of such payment at the Collateral Agent’s
request.  This Mortgage is and shall be maintained by the Company as a
valid mortgage lien and security interest in the Mortgaged Property, subject
only to the Permitted Liens and such other matters as may be expressly permitted
under the Indenture.  Except as otherwise provided in the Indenture,
the Company shall not, directly or indirectly, create or suffer, or permit to be
created or suffered, against the Mortgaged Property or any part thereof, and the
Company will promptly discharge any Lien or other Imposition that may affect the
Mortgaged Property or any part thereof, or any interest therein, except the
Permitted Liens.  If any Lien not permitted hereunder is filed, the
Company will cause the same to be discharged pursuant to the terms of the
Indenture.

     

    Section
1.5                      Insurance.

     

    (a)           The
Company shall maintain insurance on the Mortgaged Property as specified in
Section 4.18 of the Indenture.

     

    (b)           In
the event that the Company fails to keep the Real Property and the Improvements
insured in compliance with this Section, the Collateral Agent may, but shall not
be obligated to, obtain insurance and pay the premiums therefor, and the Company
shall, on demand, reimburse the Collateral Agent for all sums advanced and
expenses incurred in connection therewith.  Such sums and expenses,
together with interest thereon at the Additional Interest Rate, shall be deemed
part of the Secured Obligations and secured by the lien of this
Mortgage.

     

    

    
      
        
          
             

            |
NY\1552933.3||

          

           

        

        
          6

          
            

          

        

        
           

        

      

    

    

    (c)           Subject
to the provisions of Section 3.1 hereof, nothing contained in this Section or
elsewhere in this Mortgage shall relieve the Company of its duty to maintain,
repair, replace or restore the Improvements or the Fixtures or rebuild the
Improvements, from time to time, in accordance with the applicable provisions of
the Transaction Documents, and nothing in this Section or elsewhere in this
Mortgage shall relieve the Company of its duty to pay the Secured Obligations,
which shall be absolute, regardless of the occurrence of damage to, destruction
of or condemnation of all or any portion of the Mortgaged Property.

     

    Section
1.6                      Books and Records: Financial
Information.  The
Company shall (i) keep complete and accurate books and records with respect to
the Mortgaged Property; (ii) permit the Collateral Agent to inspect such books
and records during normal business hours and make copies thereof at the
Collateral Agent’s expense; and (iii) provide the Collateral Agent such
information as the Collateral Agent may from time to time reasonably request
concerning the operations and financial affairs of the Company and the Mortgaged
Property, including, if requested, audited annual financial statements and
quarterly operating statements.

     

    Section
1.7                      Mortgage, Sale, Lease of the
Mortgaged Property.

     

    (a)           Except
as otherwise expressly permitted under the Transaction Documents or as otherwise
expressly permitted hereunder, the Company will not, now or in the future,
mortgage, pledge or encumber or place any Lien or encumbrance (or permit the
same to exist) on the Mortgaged Property, or any part thereof, without the prior
written consent of the Collateral Agent, except for Permitted
Liens.

     

    (b)           Except
as otherwise expressly permitted under the Transaction Documents or as otherwise
expressly permitted hereunder, the Company shall not sell, convey, transfer or
otherwise alienate in any manner, whether directly or indirectly, any right,
title or interest in the Mortgaged Property, or any part thereof except as
expressly permitted under the Indenture, without obtaining in each such instance
the prior written consent of the Collateral Agent.

     

    (c)           Except
as otherwise expressly permitted under the Transaction Documents or as otherwise
expressly permitted hereunder, the Company shall not, without the Collateral
Agent’s prior consent, which consent will not be unreasonably withheld, enter
into any agreement with or conveyance to any other person or entity permitting
the use of any excess development rights that might otherwise be used by the
Company in expanding, altering, reconstructing, replacing or otherwise improving
the Improvements or making any other improvements on the Mortgaged Property, or
otherwise permit or suffer any change of the zoning of the Mortgaged Property or
the use that may be made thereof.

     

    Section
1.8                      Environmental -
ADA.  The
Company agrees:

     

    (a)           Except
for reasonable quantities of substances normally used for maintenance or
operation of the Mortgaged Property which are used, stored and disposed
of in compliance with all applicable Environmental Laws or Regulations (as
defined below), the Company shall not, nor shall it permit others to, place,
store, locate, generate, produce, create, process, treat, handle, transport,
incorporate, discharge, emit, spill, release, deposit or dispose of any
Hazardous Substance (as defined below) in, upon, under, over or from the
Mortgaged Property.  The Company shall cause all Hazardous Substances
found on or under the Mortgaged Property, which are not permitted under the
foregoing sentence, and which exist in quantities or locations which violate, or
require notification, investigation or remedial action pursuant to, applicable
Environmental Laws or Regulations, to be properly removed therefrom and properly
disposed of at another location at the Company’s cost and
expense.  The Company shall not install or permit to be installed any
underground storage tanks on or under the Mortgaged Property.  If the
Collateral Agent shall reasonably request, the Company shall at its cost obtain
and deliver to the Collateral Agent an environmental review, audit, assessment
and/or report relating to the Mortgaged Property or shall have any previously
delivered materials updated and/or amplified, by an engineer or scientist
acceptable to the Collateral Agent.

     

    

    
      
        
          
             

            |
NY\1552933.3||

          

           

        

        
          7

          
            

          

        

        
           

        

      

    

    

     

    (b)           If
the Collateral Agent shall reasonably request, the Company shall at its cost and
expense obtain and deliver to the Collateral Agent an environmental review,
audit, assessment and/or report relating to the Mortgaged Property or shall have
any previously delivered materials updated and/or amplified, by an engineer or
scientist acceptable to the Collateral Agent.

     

    (c)           The
Company shall comply with all Accessibility Regulations (as defined below) which
are applicable to the Mortgaged Property.  If the Collateral Agent
shall reasonably request, the Company shall at its cost obtain and deliver to
the Collateral Agent an Accessibility Regulation compliance report relating to
the Mortgaged Property or shall have any previously delivered materials updated
and/or amplified, by a qualified consultant acceptable to the Collateral
Agent.

     

    (d)           The
Company shall, promptly after obtaining actual knowledge thereof, give notice to
the Collateral Agent of: (i) any activity in violation of any applicable
Environmental Laws or Regulations on or relating to the Mortgaged Property, (ii)
any governmental or regulatory actions instituted or threatened under any
Environmental Laws or Regulations or any Accessibility Regulations affecting the
Mortgaged Property, (iii) all claims made or threatened by any third party
against the Mortgaged Property relating to any Hazardous Substance or a
violation of any Environmental Laws or Regulations or any Accessibility
Regulations, (iv) discovery by any the Company of any occurrence or condition on
or under the Mortgaged Property or on or under any real property adjoining or in
the vicinity of the Mortgaged Property which could subject the Company, the
Collateral Agent or the Mortgaged Property to a claim under any Environmental
Laws or Regulations or Accessibility Regulations, and (v) discovery by the
Company of any presence of Hazardous Substances of a type or in a quantity or
location that could require notification, investigation or remedial action
pursuant to applicable Environmental Laws or Regulations.  Any such
notice shall include copies of any written materials received by the
Company.

     

    

    
      
        
          
             

            |
NY\1552933.3||

          

           

        

        
          8

          
            

          

        

        
           

        

      

    

     

     

    (e)           If
the Mortgaged Property has, or is suspected to have, asbestos or asbestos
containing materials (“ACM”) which, due to its
condition, location and/or planned building renovation or demolition, is
recommended to be abated by repair, encapsulation, removal or other action, the
Company shall at its cost and expense promptly carry out the recommended
abatement action.  If the recommended abatement includes removal of
ACM, the Company shall cause the same to be removed and disposed of offsite by a
licensed and experienced asbestos removal contractor, all in accordance with
Environmental Laws or Regulations.  Upon completion of the recommended
abatement action, the Company shall deliver to the Collateral Agent a
certificate, signed by an officer of the Company and the consultant overseeing
the abatement action, certifying to the Collateral Agent that the work has been
completed in compliance with all applicable laws, ordinances, codes and
regulations (including without limitation those regarding notification, removal
and disposal) and that no airborne fibers beyond permissible exposure limits
remain on site.  The Company shall develop and implement an Operations
and Maintenance Program (as contemplated by Environmental Protection Agency
guidance document entitled “Managing Asbestos In Place: A Building Owner’s Guide
to Operations and Maintenance Programs for Asbestos—Containing Materials”) for
managing in place any ACM in the Mortgaged Property.  The Company
shall deliver a complete copy of such Operations and Maintenance Program to the
Collateral Agent and certify to the Collateral Agent that such Program has been
implemented.

     

    (f)           After
an Event of Default, or if at any time there is a reasonable basis to believe
that a violation of Environmental Laws or Regulations may have occurred on the
Mortgaged Property or pursuant to Section 1.8(a), the Collateral Agent shall
have the right, after ten (10) days’ prior written notice to the Company, to
have an environmental review, audit, assessment, testing program and/or report
with respect to the Mortgaged Property performed or prepared by an environmental
engineering firm selected by the Collateral Agent.  The Company shall
reimburse the Collateral Agent for the cost incurred for each such action within
ten (10) days following demand therefor by the Collateral Agent.  The
amount shall accrue interest at the Additional Interest Rate (as defined in
Section 5.2) from and including the date of disbursement by the Collateral Agent
through the date of payment by the Company.

     

    For
purposes of this Mortgage, the following definitions shall apply:

     

    “Environmental Laws or
Regulations” means and includes the Federal Comprehensive Environmental
Response, Compensation and Liability Act as amended by the Superfund Amendments
and Reauthorization Act of 1986, 42 U.S.C. Sec.Sec.

     

    

    
      
        
          
             

            |
NY\1552933.3||

          

           

        

        
          9

          
            

          

        

        
           

        

      

    

    

    9601 et
seq.; the Federal Resource Conservation and Recovery Act of 1976, 42 U.S.C.
Sec.Sec. 6901 et seq.; Chapter 455B of the Iowa Code; the Clean Water Act, 33
U.S.C. Sec.Sec. 1321 et seq.; and the Clean Air Act, 42 U.S.C. Sec.Sec. 7401 et
seq., all as the same may be from time to time amended, and any other federal,
state, county, municipal, local or other statute, code, law, ordinance,
regulation, requirement or rule which may relate to or protect human health or
the environment, including, without limitation, all regulations promulgated by a
regulatory body pursuant to any such statute, code, law or ordinance, and all as
previously and in the future to be amended.

     

    “Hazardous Substances” means
asbestos, asbestos containing materials, urea formaldehyde, polychlorinated
biphenyls, nuclear fuel or materials, mold, chemical waste, radioactive
materials, explosives, known carcinogens, petroleum products including but not
limited to crude oil or any fraction thereof, natural gas, natural gas liquids,
gasoline or synthetic gas, and any other waste, material, substance, pollutant
or contaminant regulated pursuant to any applicable Environmental Laws or
Regulations or which could pose a hazard to the health and safety of the owners,
occupants or any persons in the vicinity of the Mortgaged Property.

     

    “Accessibility Regulations”
means any law ordinance or regulation relating to accessibility of a facility or
property for disabled, handicapped and/or physically challenged persons,
including, without limitation, the Americans With Disabilities Act of 1991, as
amended.

     

    ARTICLE
II

    REPRESENTATIONS AND
WARRANTIES

     

    The
Company makes the following representations and warranties:

     

    Section
2.1                      Existence and
Powers.  The
Company is a limited liability company duly created and validly existing and in
good standing under the laws of the State of Delaware.  The Company
has the power to own its property, to carry on its business and to execute and
perform the Transaction Documents.  The Company has obtained all
licenses and permits necessary to conduct its business in the manner presently
conducted.

     

    Section
2.2                      Ownership, Liens, Compliance
with Laws.  The
Company owns the Mortgaged Property free from all Liens and encumbrances except
for the Permitted Liens.  All applicable zoning and environmental,
land use, subdivision, building, fire, safety or health laws, ordinances and
regulations affecting the Mortgaged Property permit the current use and
occupancy thereof, and the Company has obtained all consents, permits and
licenses required for such use.  The Company will comply with and
satisfy all applicable formalities and provisions of the laws and regulations of
the United States of America and the laws of the State of Iowa in order to
perfect, establish and maintain this Mortgage, and any supplement or amendment
hereto.

     

    Section
2.3                      Authority,
Consents.  The
execution, delivery and performance of the Transaction Documents have been duly
authorized by all necessary action of the Company.  Except for
consents and approvals previously obtained, no consent or approval of, or
exemption by, any

     

    

    
      
        
          
             

            |
NY\1552933.3||

          

           

        

        
          10

          
            

          

        

        
           

        

      

    

    

    person or
entity, governmental or private, is required to authorize the execution,
delivery and performance of the Transaction Documents or the validity
thereof.

     

    Section
2.4                      Binding
Agreement.  The
Transaction Documents are the valid and legally binding obligations of the
Company enforceable against the Company in accordance with their respective
terms, except to the extent limited by bankruptcy, insolvency or similar laws
affecting the rights of creditors generally.

     

    Section
2.5                      No Conflict,
Default.  The
execution, delivery and performance by the Company of the Transaction Documents
will not violate or cause default under or permit acceleration of any agreement
to which the Company is a party or by which it or the Mortgaged Property is
bound.  To the Company’s knowledge, it is not in default (beyond any
applicable grace period) in the performance of any agreement, order, writ,
injunction, decree or demand to which it is a party or by which it is
bound.

     

    Section
2.6                      Litigation.  There
is no litigation, arbitration or other proceeding in process or to the Company’s
knowledge pending or threatened against the Mortgaged Property or the Company
which is reasonably likely to have a materially adverse effect on the ability of
the Company to fulfill its obligations under the Transaction Documents or on the
condition, financial or otherwise, of the Company’s business, properties or
assets.

     

    Section
2.7                      Use.  The
Mortgaged Property is not homestead property nor is it agricultural property in
agricultural use.

     

    Section
2.8                      Utilities.  The
Mortgaged Property is serviced by all necessary public utilities, and all such
utilities are operational and have sufficient capacity.

     

    Section
2.9                      Environmental.  To
the Company’s knowledge:

     

    (a)           There
is not located on, in, about, or under the Mortgaged Property any Hazardous
Substances except for Hazardous Substances of the type and in quantities
ordinarily used, stored, or manufactured in connection with the ownership or
operation of the Mortgaged Property as it is presently operated and such
existing Hazardous Substances have been used, stored and manufactured in
compliance with all Environmental Laws or Regulations and will not require any
notification, investigation or remedial action pursuant to any Environmental
Laws or Regulations.

     

    (b)           The
Mortgaged Property is not presently used, and has not in the past been used as a
landfill, dump, disposal facility, gasoline station or for the storage,
generation, production, manufacture, processing, treatment, disposal, handling,
transportation, or deposit of any Hazardous Substances.

     

    (c)           There
has not in the past been, and no present threat now exists of, a spill,
discharge, emission or release of a Hazardous Substance in, upon, under, over or
from the Mortgaged Property or from any other property which would have an
impact on the Mortgaged Property or require notification, investigation or
remedial action pursuant to any Environmental Laws or Regulations.

     

    

    
      
        
          
             

            |
NY\1552933.3||

          

           

        

        
          11

          
            

          

        

        
           

        

      

    

    

    (d)           There
are no past or present investigations, administrative proceedings, litigation,
regulatory hearings or other action completed, proposed, threatened or pending,
alleging noncompliance with or violation of any Environmental Laws or
Regulations respecting the Mortgaged Property, relating to Hazardous Materials
on, in, about or under the Mortgaged Property, or relating to any required
environmental permits covering the Mortgaged Property.

     

    (e)           The
Company has disclosed to the Collateral Agent all reports and investigations
commissioned by, or in the possession or control of, the Company and relating to
Hazardous Substances and the Real Property and the Improvements.

     

    (f)           There
are not now, nor have there ever been, any above ground or underground storage
tanks located in or under the Mortgaged Property.  There are no wells
on or under the Mortgaged Property.

     

    Section
2.10                      Mortgage
Lien.  This
Mortgage constitutes a valid mortgage and, upon proper recording hereof, will
constitute a valid and perfected mortgage lien, and security interest in the
Mortgaged Property (subject only to the Permitted Liens), and there are no
defenses or offsets to the Company’s obligations pursuant to this Mortgage or
the other Transaction Documents, including without limitation, the Company’s
applicable obligations to pay and perform the Secured Obligations.

     

    Section
2.11                      Tax Liens;
Bankruptcy.  There
are no federal, state or local tax claims or liens assessed or filed against the
Company or the Mortgaged Property for taxes which are due and payable,
unsatisfied of record or docketed in any court of the state in which the Real
Property is located or in any other court located in the United States, and no
petition in bankruptcy has ever been filed by the Company, or, to the Company’s
knowledge, against the Company, and the Company has never made any assignment
for the benefit of creditors or taken advantage of any insolvency act or any act
for the benefit of debtors.

     

    Section
2.12                      Damage; Eminent Domain
Proceedings.  The
Mortgaged Property has not been damaged or destroyed by fire or other casualty,
and no condemnation or eminent domain proceedings have been commenced and none
are pending with respect to the Mortgaged Property, and, to the Company’s
knowledge, no such condemnation or eminent domain proceedings are about to be
commenced or threatened.

     

    ARTICLE
III

    CASUALTY —
CONDEMNATION

     

    Section
3.1                      Damage or
Destruction.  During
the period the Secured Obligations remain outstanding, in the event that the
Real Property, the Improvements, or the Fixtures shall be damaged or destroyed
in whole or in part, by fire or other casualty covered by insurance, the Company
shall give prompt written notice thereof to the Collateral Agent.  At
such time as such damage, destruction or casualty shall occur, the Insurance
Proceeds shall be treated as an Event of Loss and shall be payable to the
Collateral Agent and shall be released, applied and/or distributed in accordance
with Sections 4.13 and 10.4 of the Indenture.  Upon the occurrence of
an Event of Default which has not been waived in writing by the Holders in
accordance with

     

    

    
      
        
          
             

            |
NY\1552933.3||

          

           

        

        
          12

          
            

          

        

        
           

        

      

    

    

    Section
9.2 of the Indenture, the Collateral Agent shall have the right to apply such
Insurance Proceeds in accordance with Section 6.10 of the
Indenture.  The Collateral Agent shall have the right to participate
in any insurance proceeding at the Company’s expense, including reasonable
attorneys’ fees and disbursements.

     

    Section
3.2                      Condemnation.

     

    (a)           During
the period the Secured Obligations remain outstanding, in the event that the
Mortgaged Property, or any part thereof, shall be taken in condemnation
proceedings or by exercise of the right of eminent domain, or by conveyance in
lieu of condemnation, or as a result of the exercise by any governmental
authority of any right or option to purchase (hereinafter collectively called
“Proceedings”), the
Collateral Agent shall have the right to participate in any such Proceedings at
the Company’s expense, including reasonable attorneys’ fees and disbursements,
and any Eminent Domain Awards that may be made or any proceeds thereof shall be
released, applied and/or distributed in accordance with the terms of the
Indenture.  The parties agree to execute any and all further documents
that may be required in order to facilitate collection of any Eminent Domain
Award and the making of any such deposit.

     

    (b)           During
the period the Secured Obligations remain outstanding, if there occurs a
Proceeding, any Eminent Domain Awards payable in connection therewith shall be
considered an Asset Sale and shall be released, applied and/or distributed in
accordance with Sections 4.13 and 10.4 of the Indenture.

     

    (c)           Upon
the occurrence of an Event of Default which has not been waived in writing by
the Holders in accordance with Section 9.2 of the Indenture, the Collateral
Agent shall have the right to apply such Eminent Domain Awards in accordance
with Section 6.10 of the Indenture.

     

    ARTICLE
IV

    LEASES AND
RENTS

     

    Section
4.1                      Space Leases, Rents and Cash
Collateral.

     

    (a)           As
additional collateral security for payment of the Secured Obligations, and
cumulative of any and all rights and remedies herein provided, the Company
hereby bargains, sells, transfers, assigns and sets over to the Collateral Agent
for the benefit of the Holders, any and all Space Leases and Rents and any and
all cash collateral to be derived from the Mortgaged Property, or the use and
occupation thereof, or under any contract or bond relating to the construction
or reconstruction of the Mortgaged Property, including all Rents, royalties,
revenues rights, deposits (including security deposits) and benefits accruing to
the Company under all Space Leases, and the right to receive the same and apply
them against the Secured Obligations or against the Company’s other obligations
hereunder or the Company’s obligations under the Transaction Documents, together
with all Space Leases, contracts, bonds, leases and other documents
evidencing the same now or hereafter in effect and all right of the Company
thereunder.  Nothing contained in the preceding sentence shall be
construed to bind the Collateral Agent to the performance of any of the
provisions of any such Space Lease, contract, bond, lease or other documents or
otherwise impose any obligation upon the Collateral Agent, except that the
Collateral Agent shall be accountable for any money actually received pursuant
to such assignment to the extent of its disposition thereof in a manner
inconsistent with this Mortgage or the Transaction Documents.  The
Company shall deliver to the Collateral Agent upon the Collateral Agent’s
request an executed counterpart of each such Space Lease, contract, bond or
other documents.  The assignment of said Space Leases, Rents, income
profits, proceeds and cash collateral, and any of the aforesaid rights with
respect thereto and to the contracts, bonds, leases and other documents
evidencing the same, is intended to be and is an absolute present assignment
from the Company to the Collateral Agent and not merely the passing of a
security interest.

     

    

    
      
        
          
             

            |
NY\1552933.3||

          

           

        

        
          13

          
            

          

        

        
           

        

      

    

    

     

    (b)           So
long as there shall exist no Event of Default hereunder which has not been
waived in writing by the Holders in accordance with the Indenture, the Company
shall have the right and license to exercise all rights, options and privileges
extended to the lessor under the terms of the Space Leases, including, without
limitation, the right to collect all Rents.  The Company agrees to
hold the same in trust and to use the same, first, in payment of the Secured
Obligations, second, the Taxes and insurance premiums payable hereunder and all
other charges on or against the Mortgaged Property and, third, to the expenses
of the Company’s business in or on the Mortgaged Property.

     

    (c)           In
the event of any such Event of Default which has not been so waived, the right
and license set forth in subparagraph (b) of this Section shall be automatically
revoked, and, thereafter, the Collateral Agent shall have the right and
authority to exercise any of the rights or remedies referred to or set forth
herein.  In addition, upon such an Event of Default, the Company shall
promptly pay to the Collateral Agent (i) all rent prepayments and security or
other deposits paid to the Company pursuant to any Space Leases and (ii) all
charges for services or facilities or for escalations which were paid pursuant
to any Space Leases to the extent allocable to any period from and after such
Event of Default and any such sums received by the Collateral Agent shall be
applied by the Collateral Agent in accordance with Section 6.10 of the
Indenture.

     

    (d)           If
the Company is not required to surrender possession of the Mortgaged Property
hereunder in the event of any such Event of Default which has not been so
waived, the Company will pay monthly in advance to the Collateral Agent, or to
any receiver appointed to collect the same, the income, profits or proceeds
received by the Company under any of the Space Leases.

     

    (e)           The
Company will, upon the Collateral Agent’s request, execute, acknowledge and
deliver to the Collateral Agent, in form approved by the Collateral Agent, one
or more general or specific assignments of the lessor’s interest under any Space
Lease (which are consistent with the foregoing provisions).  The
Company will, on demand, pay to the Collateral Agent, or

     

    

    
      
        
          
             

            |
NY\1552933.3||

          

           

        

        
          14

          
            

          

        

        
           

        

      

    

    

    reimburse
the Collateral Agent for the payment of, all costs or expenses incurred in
connection with the preparation or recording of any such
assignment.

     

    (f)           The
Company will (i) perform or cause to be performed the lessor’s obligations under
any Space Lease, (ii) enforce the performance by the lessee under its respective
Space Lease of all of said lessee’s material obligations thereunder and (iii)
give the Collateral Agent prompt notice and a copy of any notice of default,
event of default, termination or cancellation sent or received by the
Company.

     

    (g)           Except
to the extent expressly permitted herein or under the other Transaction
Documents, the Company will not, without the Collateral Agent’s written consent,
(i) assign, mortgage, pledge or otherwise transfer, dispose of or encumber,
whether by operation of law or otherwise, any Space Lease or the Rents or other
income thereunder or therefrom, (ii) accept or permit the acceptance of a
prepayment of any Rents for more than one month in advance of the due dates
therefor, (iii) amend, modify or otherwise alter any Space Lease or (iv) cancel,
terminate or accept a surrender of any Space Lease.

     

    (h)           The
Company will from time to time, promptly upon the Collateral Agent’s request,
prepare and deliver to the Collateral Agent such information concerning the
Space Leases as the Collateral Agent shall request.

     

    ARTICLE
V

    DEFAULTS AND
REMEDIES

     

    Section
5.1                      Events of
Default.  Each
of the following shall constitute an Event of Default hereunder:

     

    (a)           the
occurrence of an “Event of Default” as defined in Section 6.1 of the Indenture;
or

     

    (b)           the
failure of the Company to observe and perform any covenant, condition or
agreement on its part to be observed or performed in this Mortgage (other than
an occurrence which may sooner constitute an “Event of Default” under the
Indenture) including, without limitation, the covenants contained in Article I
herein for a period of thirty (30) days after written notice specifying such
failure and requesting that it be remedied, given to the Company by the
Collateral Agent, unless the Collateral Agent agrees in writing to an extension
of such time prior to its expiration.

     

    Section
5.2                      Remedies.  Upon
the occurrence of an Event of Default, all Secured Obligations, at the option of
the Collateral Agent, shall be accelerated and become immediately due and
payable upon notice to the Company.  The outstanding principal amount
and the interest accrued thereon of the Secured Obligations shall be due and
payable without presentment, demand or further notice of any kind, all of which
are hereby expressly waived by the Company.  The Company will pay to
the Collateral Agent the entire Secured Obligations or portions thereof, as
applicable, and to the extent permitted by law, the premiums and penalties, if
any, provided in this
Mortgage and each other Transaction Document, as applicable, and such payment
shall be applied in accordance with Section 6.10 of the Indenture.

       

    

     

    

    
      
        
          
             

            |
NY\1552933.3||

          

           

        

        
          15

          
            

          

        

        
           

        

      

    

    

    In the
event of any Event of Default, whether or not an acceleration shall occur, the
Collateral Agent shall have the right to proceed to protect and enforce its
rights by one or more of the following remedies:

     

    (a)           THE
COLLATERAL AGENT SHALL HAVE THE RIGHT TO BRING SUIT either for damages, specific
performance of any agreement contained in any Transaction Document, or for the
foreclosure of this Mortgage, or for the enforcement of any other appropriate
legal or equitable remedy.

     

    (b)           THE
COLLATERAL AGENT SHALL HAVE THE RIGHT TO OBTAIN A RECEIVER at any time after an
Event of Default, whether or not an action for foreclosure has been
commenced.  Any court having jurisdiction shall at the request of the
Collateral Agent following an Event of Default appoint a receiver to take
immediate possession of the Mortgaged Property and to rent or operate the same
as he may deem best for the interest of all parties concerned, and such receiver
shall be liable to account to the Company only for the net profits, after
application of rents, issues and profits upon the costs and expenses of the
receivership and upon the Secured Obligations.

     

    The
Collateral Agent shall have the right, at any time to advance money to the
receiver to pay any part or all of the items which the receiver should otherwise
pay if cash were available from the Mortgaged Property and sums so advanced,
with interest (“Additional
Interest’) at the per annum rate equal to the interest rate then borne by
the Notes (the “Additional
Interest Rate”), shall be secured hereby, or if advanced during the
period of redemption shall be a part of the sum required to be paid to redeem
from the sale.

     

    (c)           THE
COLLATERAL AGENT SHALL HAVE THE RIGHT TO COLLECT THE RENTS from the Mortgaged
Property and apply the same in the manner hereinbefore provided with respect to
a receiver.  For that purpose, the Collateral Agent may enter and take
possession of the Mortgaged Property and manage and operate the same and take
any action which, in the Collateral Agent’s judgment, is necessary or proper to
collect the Rents and to conserve the value of the Mortgaged
Property.  The Collateral Agent may also take possession of, and for
these purposes use, any and all of the Security Interests
Property.  The expense (including any receiver’s fees, attorneys’
fees, costs and agent’s compensation) incurred pursuant to the powers herein
contained shall be secured by this Mortgage.  The Collateral Agent
shall not be liable to account to the Company for any action taken pursuant
hereto other than to account for any Rents actually received by the Collateral
Agent.  Enforcement hereof shall not cause the Collateral Agent to be
deemed a Collateral Agent in possession unless the Collateral Agent elects in
writing to be a Collateral Agent in possession.

     

    (d)           THE
COLLATERAL AGENT SHALL HAVE THE RIGHT TO ENTER AND TAKE POSSESSION of the
Mortgaged Property and manage and operate the same in conformity with all
applicable laws and take any action which, in the Collateral Agent’s judgment,
is necessary or proper to conserve the value of the Mortgaged
Property.

     

    

    
      
        
          
             

            |
NY\1552933.3||

          

           

        

        
          16

          
            

          

        

        
           

        

      

    

    

     

    (e)           THE
COLLATERAL AGENT SHALL HAVE ALL OF THE RIGHTS AND REMEDIES PROVIDED IN THE CODE,
including Iowa Code Chapter 554, including the right to proceed under the Code
provisions governing default as to any Security Interests Property separately
from the real estate included within the Mortgaged Property, or to proceed as to
all of the Mortgaged Property in accordance with its rights and remedies in
respect of said real estate.  If the Collateral Agent should elect to
proceed separately as to such Security Interests Property, the Company agrees to
make such Security Interests Property available to the Collateral Agent at a
place or places acceptable to the Collateral Agent, and if any notification of
intended disposition of any of such Security Interests Property is required by
law, such notification shall be deemed reasonably and properly given if given at
least ten (10) days before such disposition in the manner hereinafter
provided.

     

    (f)           THE
COLLATERAL AGENT SHALL HAVE THE RIGHT TO FILE PROOF OF CLAIM and other documents
as may be necessary or advisable in order to have its claims allowed in any
receivership, insolvency, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceedings affecting the Company, its creditors
or its property, for the entire amount due and payable by the Company under the
Secured Obligations, this Mortgage and any other instrument securing the Secured
Obligations, at the date of the institution of such proceedings, and for any
additional amounts which may become due and payable by the Company after such
date.

     

    Each
remedy herein specifically given shall be in addition to every other right now
or hereafter given or existing at law or in equity, and each and every right may
be exercised from time to time and as often and in such order as may be deemed
expedient by the Collateral Agent and the exercise or the beginning of the
exercise of one right shall not be deemed a waiver of the right to exercise at
the same time or thereafter any other right.  The Collateral Agent
shall have all rights and remedies available under the law in effect now and/or
at the time such rights and remedies are sought to be enforced, whether or not
they are available under the law in effect on the date hereof.

     

    Section
5.3                      Expenses of Exercising
Rights, Powers and Remedies.  The
expense (including any receiver’s fees, reasonable attorneys’ fees, appraisers’
fees, environmental engineers’ and/or consultants’ fees, costs incurred for
documentary and expert evidence, stenographers’ charges, publication costs,
costs (which may be estimated as to items to be expended after entry of the
decree of foreclosure) of procuring all abstracts of title, continuations of
abstracts of title, title searches and examinations, title insurance policies
and commitments and extensions therefor, Torrens duplicate certificates of
title, UCC and chattel lien searches, and similar data and assurances with
respect to title as the Collateral Agent may deem necessary either to prosecute
any foreclosure action or to evidence to bidders at any sale which may be had
pursuant to any foreclosure
decree the true condition of the title to or the value of the Mortgaged
Property, and agent’s compensation) incurred by the Collateral Agent after the
occurrence of any Event of Default under this Mortgage and/or in pursuing the
rights, powers and remedies contained in this Mortgage shall be immediately due
and payable by the Company, with interest thereon at the Additional Interest
Rate, and shall be added to the indebtedness secured by this
Mortgage.

     

    

    
      
        
          
             

            |
NY\1552933.3||

          

           

        

        
          17

          
            

          

        

        
           

        

      

    

    

     

    Section
5.4                      Restoration of
Position.  In
case the Collateral Agent shall have proceeded to enforce any right under this
Mortgage by foreclosure, sale, entry or otherwise, and such proceedings shall
have been discontinued or abandoned for any reason or shall have been determined
adversely, then, and in every such case, the Company and the Collateral Agent
shall be restored to their former positions and rights hereunder with respect to
the Mortgaged Property subject to the lien hereof.

     

    Section
5.5                      Marshalling.  The
Company, for itself and on behalf of all persons, parties and entities which may
claim under the Company, hereby waives all requirements of law relating to the
marshalling of assets, if any, which would be applicable in connection with the
enforcement by the Collateral Agent of its remedies for an Event of Default
hereunder, absent this waiver.  The Collateral Agent shall not be
required to sell or realize upon any portion of the Mortgaged Property before
selling or realizing upon any other portion thereof.

     

    Section
5.6                      Waivers.  No
waiver of any provision hereof shall be implied from the conduct of the
parties.  Any such waiver must be in writing and must be signed by the
party against which such waiver is sought to be enforced.  The waiver
or release of any breach of the provisions set forth herein to be kept and
performed shall not be a waiver or release of any preceding or subsequent breach
of the same or any other provision.  No receipt of partial payment
after acceleration of any of the Secured Obligations shall waive the
acceleration.  No payment by the Company or receipt by the Collateral
Agent of a lesser amount than the full amount secured hereby shall be deemed to
be other than on account of the sums due and payable hereunder, nor shall any
endorsement or statement on any check or any letter accompanying any check or
payment be deemed an accord and satisfaction, and the Collateral Agent may
accept any check or payment without prejudice to the Collateral Agent’s right to
recover the balance of such sums or to pursue any other remedy provided in this
Mortgage.  The consent by the Collateral Agent to any matter or event
requiring such consent shall not constitute a waiver of the necessity for such
consent to any subsequent matter or event.

     

    Section
5.7                      The Collateral Agent’s Right
to Cure Defaults.  If
the Company shall fail to comply with any of the terms hereof with respect to
the procuring of insurance, the payment of taxes, assessments and other charges,
the keeping of the Mortgaged Property in repair, the payment and satisfaction of
Liens and encumbrances against the Mortgaged Property, the payment of any other
sum or deposit required under this Mortgage, or any other term herein contained,
the Collateral Agent may make advances or take other actions to perform the same
without releasing the Company from any Secured Obligations and may enter upon
the Mortgaged Property for any such purpose and take all such action thereon as
the Collateral Agent or any of its duly appointed agents may deem necessary or
appropriate therefor.  The Company agrees to repay upon demand all
sums so advanced and all sums expended by the Collateral Agent in connection
with such performance, including without limitation attorneys' fees,
with Additional Interest at the Additional Interest Rate from the dates such
advances are made, and all sums so advanced and/or expenses incurred, with
Additional Interest at the Additional Interest Rate, shall be secured hereby as
Secured Obligations, but no such advance and/or incurring of expense by the
Collateral Agent, shall be deemed to relieve the Company from any default
hereunder, or to release the Company from any Secured
Obligations.  The Collateral Agent shall not be bound to inquire into
the validity of any Imposition or Lien which the Company fails to pay as and
when required by this Mortgage and which the Company does not contest in strict
accordance with the terms of this Mortgage.

     

    

    
      
        
          
             

            |
NY\1552933.3||

          

           

        

        
          18

          
            

          

        

        
           

        

      

    

    

     

    Section
5.8                      Suits and
Proceedings.  The
Collateral Agent shall have the power and authority, upon prior notice to the
Company to institute and maintain any suits and proceedings as the Collateral
Agent may deem advisable to (i) prevent any impairment of the Mortgaged Property
by any acts which may be unlawful or any violation of this Mortgage, (ii)
preserve or protect its interest in the Mortgaged Property, or (iii) restrain
the enforcement of or compliance with any legislation or other governmental
enactment, rule or order that may be unconstitutional or otherwise invalid, if,
in the sole opinion of the Collateral Agent, the enforcement of or compliance
with such enactment, rule or order might impair the security hereunder or be
prejudicial to the Collateral Agent’s interest.

     

    Section
5.9                      Waiver of Redemption Rights;
Alternative Foreclosure Procedures.  It
is agreed that if this Mortgage covers any parcel of less than ten (10) acres of
land, and in the event of the foreclosure of this Mortgage and sale of the
property by sheriff’s sale in such foreclosure proceedings, the time of one (1)
year for redemption from said sale provided by the statutes of the State of Iowa
with respect to such parcel shall be reduced to six (6) months provided the
Collateral Agent in such action files an election to waive any deficiency
judgment against the Company which may arise out of the foreclosure proceedings;
all to be consistent with the provisions of Chapter 628 of the Iowa
Code.

     

    It is
further agreed that the period of redemption after a foreclosure of this
Mortgage shall be reduced to sixty (60) days if all of the three following
contingencies develop with respect to any parcel of real estate included in the
Mortgaged Property: (1) the real estate is less than ten (10) acres in size; (2)
the court finds affirmatively that the said real estate has been abandoned by
the owners and those persons personally liable under this Mortgage at the time
of such foreclosure; and (3) the Collateral Agent in such action files an
election to waive any deficiency judgment against the Company or its successor
in interest in such action.  Entry of appearance by pleading or docket
entry by or on behalf of the Company shall create a presumption that the
property is not abandoned.  Any such redemption period shall be
consistent with all of the provisions of Chapter 628 of the Iowa
Code.

     

    This
Section shall not be construed to limit or otherwise affect any other redemption
provisions contained in Chapter 628 of the Iowa Code.  This Section
also shall not be construed to limit the Collateral Agent’s right to elect
foreclosure without redemption or to elect foreclosure by nonjudicial procedure
as set forth in Chapters 654 and 655A of the Iowa Code.  The Company
agrees that, in the event of a foreclosure of the Mortgage, under any provision
of Iowa law, the Collateral Agent shall be entitled to sole possession and use
of the Mortgaged Property during any redemption period.

     

    

    
      
        
          
             

            |
NY\1552933.3||

          

           

        

        
          19

          
            

          

        

        
           

        

      

    

    

    Section
5.10                      Application
of Proceeds.  The
proceeds from the foreclosure, sale or lease or any recovery pursuant to Chapter
554 of the Iowa Code or hereunder shall be applied to the payment of the Secured
Obligations in accordance with the Indenture if such Secured Obligations have
been deemed due and payable upon the Event of Default.  Any surplus of
the proceeds shall be paid to the Company.

     

    ARTICLE
VI

    MISCELLANEOUS

     

    Section
6.1                      Binding Effect; Survival;
Number; Gender.  This
Mortgage shall be binding on and inure to the benefit of the parties hereto,
their successors and assigns.  All representations and warranties
contained herein or otherwise heretofore made by the Company to the Collateral
Agent shall survive the execution, delivery and foreclosure
hereof.  The singular of all terms used herein shall include the
plural, the plural shall include the singular, and the use of any gender herein
shall include all other genders, where the context so requires or
permits.

     

    Section
6.2                      Severability.  The
unenforceability or invalidity of any provision of this Mortgage as to any
persons or circumstances shall not render that provision unenforceable or
invalid as to any other persons or circumstances and shall not affect the
enforceability of the remaining provisions hereof.

     

    Section
6.3                      Notices.  All
notices and demands required or permitted to be given to or made upon any party
hereto under any Transaction Document shall be in writing and shall be
personally delivered or sent by certified mail, postage prepaid, return receipt
requested or by a nationally recognized courier, or by telecopier, and shall be
deemed to be given for purposes of this Mortgage on the day that such writing is
delivered or sent to the intended recipient thereof in accordance with the
provisions of this Section.  Notices shall be given to or made upon
the respective parties hereto at their respective addresses set forth
below:

     

    If to the
Company:

    

    Peninsula
Gaming, LLC

    Peninsula
Gaming Corp.

    600 Star
Brewery Drive, Suite 110

    Dubuque,
IA 52001

    Attention:  Natalie
Schramm

    Fax:  (563)
690-1394

     

    With a
copy to:

     

    White
& Case LLP

    1155
Avenue of the Americas

    New York,
NY 10036

    Attention:  Nazim
Zilkha, Esq.

    Fax:  (212)
354-8113

     
 

    

    
      
        
          
             

            |
NY\1552933.3||

          

           

        

        
          20

          
            

          

        

        
           

        

      

    

     

    
    

    If to the
Collateral Agent:

     

    U.S. Bank National Association

    60 Livingston Avenue

    St. Paul, Minnesota  55107

    Attention:  Corporate Trust Department

     

    Either
party may change the address for notices by a notice given not less than five
(5) business days prior to the effective date of the change.

     

    Section
6.4                      Survival of Warranties,
Etc.  All
agreements, representations and warranties made herein shall survive the
execution and delivery of this Mortgage.

     

    Section
6.5                      Applicable
Law.  THIS
MORTGAGE AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS MADE AND PERFORMED IN THE STATE OF NEW YORK AND ANY APPLICABLE LAWS OF
THE UNITED STATES OF AMERICA, PROVIDED, HOWEVER, THAT THE
PROVISIONS FOR THE CREATION, PERFECTION AND ENFORCEMENT OF THE LIENS AND
SECURITY INTERESTS CREATED HEREUNDER WITH RESPECT TO THE MORTGAGED PROPERTY
SHALL BE GOVERNED BY IOWA LAW TO THE EXTENT NECESSARY FOR THE VALIDITY AND
ENFORCEMENT THEREOF.

     

    Section
6.6                      Waiver of Jury
Trial.  EACH
OF THE COMPANY AND THE COLLATERAL AGENT, BY ITS ACCEPTANCE OF THIS MORTGAGE,
IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS MORTGAGE AND ANY OF THE OTHER SECURITY
DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

     

    Section
6.7                      Effect.  This
Mortgage is in addition to and not in substitution for any other guaranties,
covenants, obligations or other rights now or hereafter held by the Collateral
Agent from any other person or entity in connection with the Secured
Obligations.

     

    Section
6.8                      Assignability.  The
Collateral Agent shall have the right to assign this Mortgage, in whole or in
part or sell participation interests herein, to any person obtaining an interest
in the Secured Obligations.

     

    Section
6.9                      Headings.  Headings
of the Sections of this Mortgage are inserted for convenience only and shall not
be deemed to constitute a part hereof.

     

    Section
6.10                      Security
Interest.

     

    (a)           An
express security interest is hereby granted to the Collateral Agent in respect
to any part of the Mortgaged Property which under Iowa law might now or
hereafter be construed or considered as personal property or fixtures, or
otherwise be considered collateral subject to the Code, including without
limitation the collateral described in granting clauses (e) hereof, and this
Mortgage shall constitute a security agreement in respect thereto.

     

     

     

    

    
      
        
          
             

            |
NY\1552933.3||

          

           

        

        
          21

          
            

          

        

        
           

        

      

    

     

    (b)           Upon
the occurrence of an Event of Default hereunder in addition to the other rights
and remedies available to it, the Collateral Agent may exercise all other rights
and remedies with respect to such property that are available to a secured party
under the Code.  The Company agrees to pay any reasonable attorney
fees and legal expenses incurred by the Collateral Agent in enforcing or
protecting its rights under the security interest created
hereunder.  In the event notice of intended disposition of such
property is required by law in any particular instance, the Company agrees that
notice given in the manner and place provided in Section 6.3 hereunder and sent
ten (10) days prior to a disposition of collateral is commercially reasonable
notification within the meaning of the Code.  Information concerning
the security interests may be obtained from the Collateral Agent (the “Secured Party”) at the address
set forth in Section 6.3 hereof.

     

     

    (c)           The
Company warrants and agrees that no financing statement or security agreement
covering any of the Mortgaged Property is or will be placed on file in any
public office or delivered to any secured party except pursuant hereto, except
for Permitted Liens.

     

    Section
6.11                      Fixture
Filing.  From
the date of its recording, this Mortgage shall be effective as a financing
statement filed as a fixture filing with respect to the collateral described in
the Granting Clauses hereof which are fixtures within the meaning of the Code,
and for this purpose the name and address of the Company (the “Debtor”) is the name and
address set out for the Company in Section 6.3 herein, and the name and address
of the Secured Party is the name and address of the Collateral Agent, as set out
in Section 6.3 hereof.  Pursuant to the provisions of Section 554.9403
subparagraph 6 of the Code, such fixture filing remains in effect until this
Mortgage is released or satisfied of record or its effectiveness otherwise
terminates as to the Real Property.

     

    Section
6.12                      Defined
Terms.  All
capitalized terms used in this Mortgage and not defined herein shall have the
meanings ascribed to them in the Indenture.

     

    Section
6.13                      Discharge of
Lien.  In
accordance with Section 10.4 of the Indenture and upon the observance and
performance of each and every covenant and condition set forth herein and in the
Indenture and the Notes, then and in that case all property, rights and interest
hereby conveyed or assigned or pledged shall revert to the Company, and the
estate, right, title and interest of the Collateral Agent therein shall
thereupon cease, terminate and become void; and this Mortgage, and the covenants
of the Company contained herein, shall be discharged and the Collateral Agent in
such case on demand of the Company and at the Company’s cost and expense, shall
execute and deliver to the Company a proper instrument or proper instruments
acknowledging the satisfaction and termination of this Mortgage, and shall
convey, assign and transfer or cause to be conveyed, assigned or transferred,
and shall deliver or cause to be delivered, to the Mortgagor, all property,
including money, then held by the Collateral Agent hereunder.

     

    Section
6.14                      Conflicts with Security
Agreement.  In
the event of a conflict between the provisions of the Security Agreement and the
provisions of this Mortgage, the Mortgage shall govern in all matters relating
to the validity and enforceability of the Lien created hereby on the Real
Property, the Improvements, the Fixtures, and the Rents and (except as expressly
set forth to the
contrary herein or in the Security Agreement), the Security Agreement shall
govern in all other respects.

     

    

    
      
        
          
             

            |
NY\1552933.3||

          

           

        

        
          22

          
            

          

        

        
           

        

      

    

    

     

    Section
6.15                      Mortgage
Absolute.  The
obligations of the Company under this Mortgage are independent of the
obligations of Company under the other Transaction Documents, and a separate
action or actions may be brought and prosecuted against Company to enforce this
Mortgage, irrespective of whether any action is brought against Company under
such other Transaction Documents.  All rights of Collateral Agent and
the mortgage, assignment and security interest hereunder, and all obligations of
Company hereunder, shall be absolute and unconditional, irrespective
of:

     

    (a)           any
lack of validity or enforceability of any other Transaction Document or any
other agreement or instrument relating thereto;

     

    (b)           any
change in the time, manner or place of payment of, or in any other term of, all
or any of the obligations of the Company under the other Transaction Documents
or any other amendment or waiver of or any consent to any departure from the
other Transaction Documents, including, without limitation, any increase in such
obligations resulting from the extension of additional credit to the Company or
otherwise;

     

    (c)           any
taking, exchange, release or non-perfection of any other collateral, or any
taking, release or amendment or waiver of or consent to departure from any
guaranty, for all or any other of the obligations of the Company under the other
Transaction Documents;

     

    (d)           any
manner of application of collateral, or proceeds thereof, to all or any of the
obligations of the Company under the other Transaction Documents, or any manner
of sale or other disposition of any collateral for all or any of such
obligations or any other assets of the Company;

     

    (e)           any
change, restructuring or termination of the corporate restructure or existence
of the Company; or

     

    (f)           any
other circumstance that might otherwise constitute a defense available to, or a
discharge of, the Company or a third party of a security interest or
mortgage.

     

    Section
6.16                      Interaction with
Indenture.  All
terms, covenants, conditions, provisions and requirements of the Indenture are
incorporated by reference in this Mortgage.  Notwithstanding any other
provision of this Mortgage, the terms and provisions of this Mortgage shall be
subject and subordinate to the terms of the Indenture.  To the extent
that the Indenture provides the Company with a particular cure or notice period,
or establishes any limitations or conditions on the Collateral Agent’s actions
with regard to a particular set of facts, the Company shall be entitled to the
same cure periods and notice periods, and Collateral Agent shall be subject to
the same limitations and conditions, under this Mortgage, as under the
Indenture, in place of the cure periods, notice periods, limitations and
conditions provided for under this Mortgage; provided, however, that such cure
periods, notice periods, limitations and conditions shall not be cumulative
as between the Indenture and this Mortgage.  In the event of any
conflict or inconsistency between the provisions of this Mortgage and those of
the Indenture, including, without limitation, any conflicts or inconsistencies
in any definitions herein or therein, the provisions or definitions of the
Indenture shall govern.

     

    

    
      
        
          
             

            |
NY\1552933.3||

          

           

        

        
          23

          
            

          

        

        
           

        

      

    

    

     

    Section
6.17                      Excluded
Assets.  Notwithstanding
anything to the contrary contained herein, if a portion of the Mortgaged
Property becomes an Excluded Asset after the Issue Date, the Collateral Agent
shall, simultaneous with the granting of the applicable Permitted Lien, without
the payment of any partial release for, or any other prepayment with respect to,
the Notes, release the Lien in favor of the Collateral Agent in such Excluded
Asset in accordance with the provisions of Section 10.4 of the
Indenture.  Once any Excluded Asset is released, such Excluded Asset
shall be expressly excluded from and shall no longer be deemed Mortgaged
Property under this Mortgage and shall not be subject to any of the
representations, covenants or obligations under this Mortgage.

     

    Section
6.18                      Indemnity.  The
Company hereby agrees to indemnify, defend and hold the Collateral Agent (and
its directors, officers, agents and employees) and each Holder harmless from and
against any and all loss, liability, damage, claim, judgment or expense
(including reasonable attorneys’ fees and expenses, bond expenses, printing and
automated document preparation and retention expenses and other ordinary
litigation expenses) incurred by it (or such director, officer, agent or
employee) in connection with the acceptance or administration of the Collateral
Agent’s duties under this Mortgage, any action or proceeding to foreclose this
Mortgage or in or to which the Collateral Agent or any Holder may be made a
party due to the existence of this Mortgage or the other Transaction Documents
or to which action or proceeding the Collateral Agent or any Holder may become a
party for the purpose of protecting the lien of this Mortgage.  All
sums paid by the Collateral Agent or any Holder to prosecute or defend the
rights herein set forth shall be deemed a part of the Secured Obligations and
shall be paid by the Company to the Collateral Agent or such Holder within ten
(10) days after written demand, and if not paid within that period, shall accrue
interest from and including the date of disbursement or advance by the
Collateral Agent or such Holder to and including the date of payment by the
Company at the Additional Interest Rate.

     

    [Signature Page
Follows.]

     

    

    
      
        
          
             

            |
NY\1552933.3||

          

           

        

        
          24

          
            

          

        

        
           

        

      

    

    

    IN
WITNESS WHEREOF, the Company has executed this Mortgage as of the date first
written above.

     

    IMPORTANT:
READ BEFORE SIGNING.  THE TERMS OF THIS AGREEMENT SHOULD BE READ
CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE.  NO
OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE
LEGALLY ENFORCED.  YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY
ANOTHER WRITTEN AGREEMENT.  THIS NOTICE APPLIES TO ALL AGREEMENTS
ENTERED INTO TO WHICH THE COMPANY AND THE COLLATERAL AGENT ARE
PARTIES.

     

    
      
        	 	DIAMOND JO,
LLC	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Natalie
      Schramm	 
	
                 

              	 	Natalie
      Schramm	 
	 	 	 	 
	 	 	 	 

      

    

     

    
      
        	 ATTEST:	 	 	 	 
	
                /s/Dustin
      Manternach

              	 	 	
                 

              	 
	
                Dustin
      Manternach

              	 	 	
                 

              	 
	
                (No
      Seal)

              	 	 	
                 

              	 

      

    

     

     

     

     

     

    

    
      
        
          
            

            |
NY\1552933.3||

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    STATE
OF IOWA                       )

                        
)ss:

    COUNTY
OF DUBUQUE          
)

     

    On
this 6th day
of August, A.D., 2009, before me, a Notary Public in and for the State
of Iowa, personally appeared Natalie Schramm, to me personally known, who
being by me duly sworn did say that the person is the Chief Executive Officer of
Diamond Jo, LLC, a Delaware limited liability company, executing the foregoing
instrument, that the instrument was signed on behalf of the said limited
liability company by authority of the limited liability company and the said
Chief Executive Officer acknowledged the execution of said instrument to be the
voluntary act and deed of said limited liability company by it voluntarily
executed.

     

    

    
      
        	
                 

              	
                 

              	/s/ Karen
      M. Beetem	 
	 	 	Notary
      Public in the State of Iowa	 
	 	 	 	 
	 	 	 	 

      

    

     

     

    

    
      
        
          
            

            |
NY\1552933.3||

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    EXHIBIT
A

     

    Legal
Description

     

    

     

    

     

    

    
      
        
          
            

            |
NY\1552933.3||oedmortgage.htm

     

    
      

      

    

     

    EXHIBIT
4.9

     

    

     

    

    
      	
               MULTIPLE
      OBLIGATIONS MORTGAGE

              AND
      ASSIGNMENTS OF

              LEASES
      AND RENTS

               

              BY

               

              THE
      OLD EVANGELINE DOWNS, L.L.C.

               

            	
              *

               

              *

               

              *

               

              *

               

              *

            	
              UNITED
      STATES OF

              AMERICA

               

              STATE
      OF IOWA

               

               

              COUNTY
      OF DUBUQUE

            

    

     

     

    BE IT KNOWN, on the 6th day of August,
2009;

     

    BEFORE ME, the undersigned
notary public, duly qualified in and for the state and county/parish aforesaid,
and in the presence of the undersigned competent
witnesses;

     

    PERSONALLY CAME AND
APPEARED:

     

    THE OLD EVANGELINE
DOWNS,
L.L.C., a Louisiana limited liability company,
whose taxpayer identification
number is 72-1280511 and whose mailing address is
P.O. Box 90270, Lafayette, Louisiana 70509-0270, appearing herein by and through
its undersigned representative, duly authorized pursuant to a resolution of its
members, a certified extract of which is attached hereto as Exhibit A;

    
      WHO
DECLARED THAT:

      
        This
Multiple Obligations Mortgage and Assignment of Leases and Rents (the “Mortgage”) is made as of
August 6, 2009, by The Old Evangeline Downs, L.L.C., a Louisiana limited
liability company (the “Company”), in favor of U.S.
Bank National Association, as collateral agent (the “Collateral Agent”) under the
Indenture dated as of the date hereof (the “Indenture”) among Peninsula
Gaming, LLC, a Delaware limited liability company (“PGL”), Peninsula Gaming
Corp., a Delaware corporation (“PGC” and, together with PGL,
the “Issuers”), the
Company, as guarantor, and each other Subsidiary Guarantor (as defined therein)
party thereto, and U.S. Bank National Association, as Trustee and Collateral
Agent.

         

        RECITALS

         

        WHEREAS,
the Company is the sole owner of (i) a fee simple interest for certain premises
located in St. Landry Parish and West Baton Rouge Parish, Louisiana and more
particularly described on Exhibit
B attached hereto (hereinafter referred to as the “Real Property”);
and

         

        WHEREAS,
pursuant to the Indenture the Issuers have issued their 8.375% Senior Secured
Notes due 2015 (together with any replacements thereof as provided in the
Indenture

         

        

        
          
            
              
                 

                |
NY\1547754.7||

              

               

            

            
               

              
                

              

            

            
               

            

          

        

         

         

        and as the same may be amended
or supplemented from time to time hereafter, the “Notes”) in the initial
aggregate principal amount of $240,000,000, subject to increase as provided in
the Indenture and maturing on August 15, 2015.  The Indenture provides
that to secure performance by the Company of its obligations under the
Indenture, including the guarantee of payment of the Notes, the Company will
execute and deliver this Mortgage to the Collateral Agent.  The
Indenture, this Mortgage, the Security Documents and any other document referred
to in or made with reference to the Notes are hereby incorporated by reference,
and are sometimes collectively referred to as “Transaction
Documents.”  Capitalized terms used but not defined herein
shall have the meanings ascribed to such terms in the Indenture.

         

        GRANTING
CLAUSES

         

        NOW,
THEREFORE, in consideration of ten dollars and other good and valuable
consideration, the receipt of and sufficiency of which are hereby acknowledged,
and to secure the Obligations, including, without limitation, the
following:

         

        (i)        the
Company’s guarantee of payment when due of indebtedness evidenced by the Notes
in the maximum principal sum of $240,000,000 payable to the order of the
Holders, bearing interest as set forth in the Indenture and maturing on August
15, 2015, such date being the “Maturity Date,” and any
notes exchanged for the Notes or issued in replacement of the Notes (in each
case pursuant to the terms of the Indenture), including, without limitation, all
accrued and unpaid interest thereon, and premiums and penalties, if any,
thereon, including late payment charges and Additional Interest (as defined in
Section 5.2 hereof),

         

        (ii)        the
Company’s guarantee of payment if and when due of (a) the Change of Control
Payment (as defined in Section 4.15 of the Indenture), in an amount not to
exceed such amount calculated in accordance with Section 4.15 of the Indenture,
and (b) amounts due in connection with an Excess Proceeds Offer (as defined in
Section 4.13 of the Indenture) in an amount not to exceed such amount calculated
in accordance with Section 4.13 of the Indenture, in either case together with
interest thereon as set forth in the Indenture, and premiums and penalties, if
any, thereon,

         

        (iii)        all
other sums that may or shall become due hereunder, in connection with the Notes
or under the other Transaction Documents, including the costs and expenses of
enforcing any provision of any of the foregoing documents or any extensions or
modifications of the Notes or any substitutions therefor,

         

        (iv)        the
reimbursement to the Collateral Agent of all monies which may be advanced as
herein provided and of any and all costs and expenses (including reasonable
attorneys’ fees and expenses) incurred or paid on account of any litigation at
law or in equity that may arise in respect of this Mortgage or the obligations
secured hereby or the lands and premises and other property herein mentioned or
in obtaining possession of said lands and premises and other property after any
sale that may be made as hereinafter provided,

         

        

        
          
            
              
                 

                |
NY\1547754.7||

              

               

            

            
               

              
                

              

            

            
               

            

          

        

        

        (v)        the
payment by the Company to the Collateral Agent of all sums, if any, as may be
duly expended or advanced by the Collateral Agent in the performance of any
obligation of the Company as provided hereunder,

         

        (vi)        the
payment of any and all other indebtedness that this Mortgage by its terms
secures and

         

        (vii)        the
performance and observance of the covenants, agreements and obligations of the
Company contained herein and in the other Transaction Documents

         

        (all
obligations and sums included in the foregoing clauses (i), (ii), (iii), (iv),
(v), (vi) and (vii) being hereinafter collectively referred to as the “Secured Obligations”), and
in order to charge with such performance and with such payments said lands and
premises and other property hereinafter described and the rents, revenues,
issues, income and profits thereof, the Company does hereby mortgage, affect,
hypothecate, to inure to the use and benefit of the Collateral Agent (as
collateral agent under the Indenture), and its successors and assigns, all
right, title and interest of the Company now or hereafter owned or leased, in,
to or under, or derived from each and all of the following properties, estates,
rights, titles and interests (collectively, the “Mortgaged
Property”):

         

        (a)           the
Real Property and all tenements, hereditaments, appurtenances, estates and
rights in and to any of the Real Property and all component parts of the Real
Property;

         

        (b)           all
buildings, improvements and other structures now or hereafter located on any of
the Real Property (the “Improvements”);

         

        (c)           all
of the Company’s right, title and interest in and to all servitudes, easements,
rights-of-way, gores of land, streets, ways, alleys, passages, sewer rights,
waters, water courses, water rights and powers, and all estates, rights, title,
interests, privileges, liberties, prescriptions, advantages and appurtenances of
any nature whatsoever, in any way belonging, relating or pertaining to any of
the Real Property or the Improvements;

         

        (d)           all
of the Company’s right, title and interest in and to any right to purchase, or
to use and occupy, any land adjacent to any of the Real Property and any land
lying in the bed of any street, road or avenue, opened or proposed, in front of
or adjoining any of the Real Property;

         

        (e)           all
of the Company’s right, title and interest, to all machinery, apparatus,
equipment, fittings, fixtures and other property of every kind and nature
whatsoever now or hereafter located upon any of the Real Property or the
Improvements, and all component parts of any building or other construction
located on any of the Real Property or appurtenances thereto, and used in
connection with the operation and occupancy of any of the Real Property or the
Improvements, and all building equipment, material and supplies of any nature
whatsoever now or hereafter located in or upon any of the Real Property or the
Improvements, including, without limitation, all metals, lumber and
lumber

         

        

        
          
            
              
                 

                |
NY\1547754.7||

              

               

            

            
               

              
                

              

            

            
               

            

          

        

         

        products, bricks, stones,
building blocks, sand, cement, roofing materials, paint, doors, windows,
hardware, wires, wiring and other building materials and any building equipment,
materials and supplies obtained for use in connection with any of the Real
Property or the Improvements and all additions, replacements, modifications and
alterations of any of the foregoing, including, but without limiting the
generality of the foregoing, all heating, lighting incinerating and power
equipment, engines, pipes, tanks, motors, conduits, switchboards, plumbing,
lifting, cleaning, fire prevention, fire extinguishing, refrigerating,
ventilating and communications apparatus, air cooling and air conditioning
apparatus, elevators, ducts and compressors and all other equipment and fixtures
(collectively, the “Fixtures”).  The
Company acknowledges that all Fixtures are part and parcel of the real estate
and appropriated to the use of the real estate and, whether or not affixed or
annexed to the Improvements, shall for the purpose of this Mortgage be deemed
conclusively to be real estate and mortgaged hereby;

         

        (f)           all
of the Company’s right, title and interest to all plans and specifications for
the Real Property and the Improvements, all contracts with architects and
engineers responsible for the design of the Improvements, the preparation or
evaluation of any of such plans and specifications or the supervision of the
construction of any of the Improvements, all contracts to which the Company is
now or hereafter a party providing for the connection therewith or the
furnishing or installation of any Fixtures or other personal property in
connection therewith, all contracts to which the Company is now or hereafter a
party providing for the management of the construction of any of the
Improvements, all rights of the Company as a third party beneficiary under all
contracts and subcontracts pertaining to the Real Property or the Improvements
as to which the Company is not a party, all payment and performance bonds
relating to the Real Property or the Improvements and all other contracts and
agreements related to the design, management, construction, equipping and
development of the Real Property or the Improvements (collectively, the “Construction
Documents”);

         

        (g)           all
of the Company’s right, title and interest to all awards or payments, and any
interest paid or payable with respect thereto, that may be made with respect to
all or any portion of the Real Property, the Improvements or the Fixtures,
whether from the exercise of right of condemnation, eminent domain or similar
proceedings (including any transfer made in lieu of the exercise of said right),
or from any taking for public use, or for any other injury to or decrease in the
value of all or any portion of the Real Property, the Improvements or the
Fixtures, or as a result of the exercise by any governmental authority of any
right or option to purchase any of the Real Property, all of the foregoing to be
held, applied and paid in accordance with the provisions of this Mortgage
(collectively, the “Eminent
Domain Awards”);

         

        (h)           all
of the Company’s right, title and interest to all proceeds of, and any unearned
premiums on, any insurance policies covering all or any portion of the Real
Property, the Improvements or the Rents (as hereinafter defined), including,
without limitation, the right to receive and apply the proceeds of any
insurance, judgments, or settlements made in lieu thereof, for damage to all or
any portion of the Real Property or the Improvements and any interest actually
paid with respect thereto, all of the foregoing to be held, applied and paid in
accordance with the provisions of this Mortgage (collectively, the “Insurance
Proceeds”);

         

        

        
          
            
              
                 

                |
NY\1547754.7||

              

               

            

            
               

              
                

              

            

            
               

            

          

        

        

         

        (i)           all
of the Company’s right, title and interest as lessor or landlord to all leases
and other agreements affecting the use or occupancy of any of the Real Property
or the Improvements now in effect or hereafter entered into (including, without
limitation, subleases (including licenses, concessions, tenancies and other
occupancy agreements covering or encumbering all or any portion of the Real
Property or the Improvements), but excluding any licenses and permits to the
extent not assignable under applicable law, including without limitation, liquor
and gaming licenses, together with any modifications, extensions or renewals of
the same (collectively, the “Space Leases”) and the
rents, revenues, issues, income, products and profits of the Real Property and
the Improvements, including, without limitation, any security deposits or other
funds deposited with the Company pursuant to the Space Leases (collectively, the
“Rents”), together
with any guarantees of the Space Leases or Rents delivered to the Company from
time to time, and any modifications, extensions and renewals of any such
guarantees, together with the right, but not the obligation, to exercise
options, to give consents and to collect, receive and receipt for the Rents and
apply the Rents to the payment of the Secured Obligations and to demand, sue for
and recover the Rents (when due and payable), subject to a license in favor of
the Company in respect thereof prior to the occurrence of an Event of Default
(as defined in Section 5.1 hereof); and

         

        (j)           any
and all other, further or additional rights, title, estates and interests of the
Company in and to any of the Real Property or the Improvements or the Fixtures,
and all renewals, substitutions and replacements of and all additions and
appurtenances to any of the Real Property or the Improvements or the Fixtures or
constructed, assembled or placed on any of the Real Property or the
Improvements, and all conversions of the assemblage, placement or conversion, as
the case may be, and in each such case without any further mortgage, conveyance,
assignment or other act by the Company, shall become subject to the lien of this
Mortgage as fully and completely, and with the same effect, as though now owned
by the Company, the Company expressly agreeing that if the Company shall at any
time acquire any other right, title, estate or interest in and to any of the
Real Property, the Improvements or the Fixtures, the lien of this Mortgage shall
automatically attach to and encumber such other right, title, estate or interest
as a lien thereon.

         

        AND,
as additional security, the Company hereby grants to the Collateral Agent a
continuing security interest in (a) the Fixtures, (b) the Construction
Documents, (c) the Insurance Proceeds, (d) the Eminent Domain Awards, (e) the
Space Leases, (f) the Rents, (g) all proceeds of the foregoing, (h) all proceeds
of any of the Real Property and the Improvements, and (i) the rights described
in clauses “c” and “d” of the definition of Mortgaged Property herein ((a)-(i),
collectively, the “Security
Interests Property”) and this Mortgage shall be effective as a security
agreement pursuant to the Uniform Commercial Code as enacted and in effect in
the state in which any of the Real Property is located (the “Code”).

         

        

        
          
            
              
                 

                |
NY\1547754.7||

              

               

            

            
               

              
                

              

            

            
               

            

          

        

        

         

         

        Notwithstanding
any other provision of this Mortgage, the maximum amount of Secured Obligations
secured hereby shall be limited to $240,000,000 (the “Maximum
Amount”).

         

        HABENDUM

         

        TO
HAVE AND TO HOLD the Mortgaged Property, the rights and privileges hereby
conveyed or assigned, or intended so to be, unto the Collateral Agent (as
collateral agent under the Indenture), its successors and assigns, forever for
the uses and purposes and subject to the terms and conditions herein set
forth.

         

        SUBJECT,
HOWEVER, to Permitted Liens.

         

        PROVIDED
NEVERTHELESS, should the Company pay and perform all the Secured Obligations in
accordance with the Indenture and the Security Documents, then these presents
will be of no further force and effect, and this Mortgage shall be satisfied by
the Collateral Agent, at the expense of the Company.

         

        The
Company FURTHER agrees as follows:

         

        ARTICLE
1

        COVENANTS

         

        1.1.                      Performance
of Obligations.  The
Company shall pay and perform the Secured Obligations.  Time is of the
essence hereof.

         

        1.2.                      Further
Assurances.  If
the Collateral Agent requests, the Company shall sign and deliver and cause to
be recorded as the Collateral Agent shall reasonably direct any further
mortgages, instruments of further assurance, certificates and other documents as
the Collateral Agent may consider reasonably necessary or desirable in order to
perform, perfect, continue, and preserve the obligations of the Company under
the Transaction Documents.  The Company further agrees to pay to the
Collateral Agent, upon demand, all costs and expenses incurred by the Collateral
Agent in connection with the preparation, execution, recording, filing and
refiling of any such documents, including attorneys’ fees and title opinion or
title insurance costs.

         

        1.3.                      Operation
and Maintenance; Compliance with Laws.  The
Company shall cause the Mortgaged Property to be maintained in normal working
order and condition, reasonable wear and tear excepted, and the Company shall
make all necessary repairs, renewals, replacements, additions, betterments and
improvements thereto, as shall be reasonably necessary for the proper conduct of
the business of the Company.  The Company shall comply or cause
compliance with all laws, ordinances and regulations of any governmental
authority with reference to the Mortgaged Property and the manner of using or
operating the same, including any Environmental Laws or Regulations and
Accessibility Regulations, as hereafter defined, and with
any restrictive covenants affecting the title to the Mortgaged Property, and
with the terms of all insurance policies relating to the Mortgaged
Property.

         

         

        

        
          
            
              
                 

                | NY\1547754.7||

              

               

            

            
               

              
                

              

            

            
               

            

          

        

        

        1.4.                      Payment
of Utilities, Impositions, Liens.  The
Company shall pay or cause to be paid when due all charges or fees for utilities
and services supplied to the Mortgaged Property.  The Company, at
least five (5) days before any penalty attaches thereto, shall pay and
discharge, or cause to be paid and discharged, all taxes, assessments and
governmental charges or levies (collectively, “Impositions”) imposed upon
or against it, its income or profits, the Mortgaged Property or rents therefrom,
or upon or against the Secured Obligations, or upon or against the interest of
the Collateral Agent in the Mortgaged Property or the Secured Obligations,
except Impositions measured by the income of the Collateral
Agent.  The Company shall provide evidence of such payment at the
Collateral Agent’s request.  This Mortgage is and shall be maintained
by the Company as a valid mortgage lien and security interest in the Mortgaged
Property, subject only to the Permitted Liens and such other matters as may be
expressly permitted under the Indenture.  Except as otherwise provided
in the Indenture, the Company shall not, directly or indirectly, create or
suffer, or permit to be created or suffered, against the Mortgaged Property or
any part thereof, and the Company will promptly discharge any Lien or other
Imposition that may affect the Mortgaged Property or any part thereof, or any
interest therein, except the Permitted Liens.  If any Lien not
permitted hereunder is filed, the Company will cause the same to be discharged
pursuant to the terms of the Indenture.

         

        1.5.                      Insurance.

         

        (a)           The
Company shall maintain insurance on the Mortgaged Property as specified in
Section 4.18 of the Indenture.

         

        (b)           In
the event that the Company fails to keep the Real Property and the Improvements
insured in compliance with this Section, the Collateral Agent may, but shall not
be obligated to, obtain insurance and pay the premiums therefor, and the Company
shall, on demand, reimburse the Collateral Agent for all sums advanced and
expenses incurred in connection therewith.  Such sums and expenses,
together with interest thereon at the Additional Interest Rate, shall be deemed
part of the Secured Obligations and secured by the lien of this
Mortgage.

         

        (c)           Subject
to the provisions of Section 3.1 hereof, nothing contained in this Section or
elsewhere in this Mortgage shall relieve the Company of its duty to maintain,
repair, replace or restore the Improvements or the Fixtures or rebuild the
Improvements, from time to time, in accordance with the applicable provisions of
the Transaction Documents, and nothing in this Section or elsewhere in this
Mortgage shall relieve the Company of its duty to pay the Secured Obligations,
which shall be absolute, regardless of the occurrence of damage to, destruction
of or condemnation of all or any portion of the Mortgaged Property.

         

        1.6.                      Books
and Records: Financial Information.  The Company shall (i) keep complete and
accurate books and records with respect
to the Mortgaged Property; (ii) permit the Collateral Agent to inspect such
books and records during normal business hours and make copies thereof at the
Collateral Agent’s expense; and (iii) provide the Collateral Agent such
information as the Collateral Agent may from time to time reasonably request
concerning the operations and financial affairs of the Company and the Mortgaged
Property, including, if requested, audited annual financial statements and
quarterly operating statements.

         

        

        
          
            
              
                 

                |
NY\1547754.7||

              

               

            

            
               

              
                

              

            

            
               

            

          

        

         

         

        1.7.                      Mortgage,
Sale, Lease of the Mortgaged Property.

         

        (a)           Except
as otherwise expressly permitted under the Transaction Documents or as otherwise
expressly permitted hereunder, the Company will not, now or in the future,
mortgage, pledge or encumber or place any Lien or encumbrance (or permit the
same to exist) on the Mortgaged Property, or any part thereof, without the prior
written consent of the Collateral Agent, except for Permitted
Liens.

         

        (b)           Except
as otherwise expressly permitted under the Transaction Documents or as otherwise
expressly permitted hereunder, the Company shall not sell, convey, transfer or
otherwise alienate in any manner, whether directly or indirectly, any right,
title or interest in the Mortgaged Property, or any part thereof except as
expressly permitted under the Indenture, without obtaining in each such instance
the prior written consent of the Collateral Agent.

         

        (c)           Except
as otherwise expressly permitted under the Transaction Documents or as otherwise
expressly permitted hereunder, the Company shall not, without the Collateral
Agent’s prior consent, which consent will not be unreasonably withheld, enter
into any agreement with or conveyance to any other person or entity permitting
the use of any excess development rights that might otherwise be used by the
Company in expanding, altering, reconstructing, replacing or otherwise improving
the Improvements or making any other improvements on the Mortgaged Property, or
otherwise permit or suffer any change of the zoning of the Mortgaged Property or
the use that may be made thereof.

         

        1.8.                      Environmental
- ADA.  The
Company agrees:

         

        (a)           Except
for reasonable quantities of substances normally used for maintenance or
operation of the Mortgaged Property which are used, stored and disposed of in
compliance with all applicable Environmental Laws or Regulations (as defined
below), the Company shall not, nor shall it permit others to, place, store,
locate, generate, produce, create, process, treat, handle, transport,
incorporate, discharge, emit, spill, release, deposit or dispose of any
Hazardous Substance (as defined below) in, upon, under, over or from the
Mortgaged Property.  The Company shall cause all Hazardous Substances
found on or under the Mortgaged Property, which are not permitted under the
foregoing sentence, and which exist in quantities or locations which violate, or
require notification, investigation or remedial action pursuant to, applicable
Environmental Laws or Regulations, to be properly removed therefrom and properly
disposed of at another location at the Company’s cost and
expense.  The Company shall not install
or permit to be installed any underground storage tanks on or under the
Mortgaged Property.  If the Collateral Agent shall reasonably request,
the Company shall at its cost obtain and deliver to the Collateral Agent an
environmental review, audit, assessment and/or report relating to the Mortgaged
Property or shall have any previously delivered materials updated and/or
amplified, by an engineer or scientist acceptable to the Collateral
Agent.

           

        

         

        

        
          
            
              
                 

                |
NY\1547754.7||

              

               

            

            
               

              
                

              

            

            
               

            

          

        

        

        (b)           If
the Collateral Agent shall reasonably request, the Company shall at its cost and
expense obtain and deliver to the Collateral Agent an environmental review,
audit, assessment and/or report relating to the Mortgaged Property or shall have
any previously delivered materials updated and/or amplified, by an engineer or
scientist acceptable to the Collateral Agent.

         

        (c)           The
Company shall comply with all Accessibility Regulations (as defined below) which
are applicable to the Mortgaged Property.  If the Collateral Agent
shall reasonably request, the Company shall at its cost obtain and deliver to
the Collateral Agent an Accessibility Regulation compliance report relating to
the Mortgaged Property or shall have any previously delivered materials updated
and/or amplified, by a qualified consultant acceptable to the Collateral
Agent.

         

        (d)           The
Company shall, promptly after obtaining actual knowledge thereof, give notice to
the Collateral Agent of: (i) any activity in violation of any applicable
Environmental Laws or Regulations on or relating to the Mortgaged Property, (ii)
any governmental or regulatory actions instituted or threatened under any
Environmental Laws or Regulations or any Accessibility Regulations affecting the
Mortgaged Property, (iii) all claims made or threatened by any third party
against the Mortgaged Property relating to any Hazardous Substance or a
violation of any Environmental Laws or Regulations or any Accessibility
Regulations, (iv) discovery by any the Company of any occurrence or condition on
or under the Mortgaged Property or on or under any real property adjoining or in
the vicinity of the Mortgaged Property which could subject the Company, the
Collateral Agent or the Mortgaged Property to a claim under any Environmental
Laws or Regulations or Accessibility Regulations, and (v) discovery by the
Company of any presence of Hazardous Substances of a type or in a quantity or
location that could require notification, investigation or remedial action
pursuant to applicable Environmental Laws or Regulations.  Any such
notice shall include copies of any written materials received by the
Company.

         

        (e)           Any
investigation, remedial or corrective action taken with respect to the Mortgaged
Property shall be done under the supervision of a qualified consultant, engineer
or scientist acceptable to the Collateral Agent who shall, at the Company’s cost
and expense and at the completion of such investigation or action, provide a
written report of such investigation or action to the Collateral
Agent.

         

         

         

        

        
          
            
              
                 

                |
NY\1547754.7||

              

               

            

            
               

              
                

              

            

            
               

            

          

        

        

        
          (f)           If
the Mortgaged Property has, or is suspected to have, asbestos or asbestos
containing materials (“ACM”) which, due to its
condition, location and/or planned building renovation or demolition, is
recommended to be abated by repair, encapsulation, removal or other
action, the Company shall at its cost and expense promptly carry out the
recommended abatement action.  If the recommended abatement includes
removal of ACM, the Company shall cause the same to be removed and disposed of
offsite by a licensed and experienced asbestos removal contractor, all in
accordance with Environmental Laws or Regulations.  Upon completion of
the recommended abatement action, the Company shall deliver to the Collateral
Agent a certificate, signed by an officer of the Company and the consultant
overseeing the abatement action, certifying to the Collateral Agent that the
work has been completed in compliance with all applicable laws, ordinances,
codes and regulations (including without limitation those regarding
notification, removal and disposal) and that no airborne fibers beyond
permissible exposure limits remain on site.  The Company shall develop
and implement an Operations and Maintenance Program (as contemplated by
Environmental Protection Agency guidance document entitled “Managing Asbestos In
Place: A Building Owner’s Guide to Operations and Maintenance Programs for
Asbestos—Containing Materials”) for managing in place any ACM in the Mortgaged
Property.  The Company shall deliver a complete copy of such
Operations and Maintenance Program to the Collateral Agent and certify to the
Collateral Agent that such Program has been
implemented.

        

         

        (g)           After
an Event of Default, or if at any time there is a reasonable basis to believe
that a violation of Environmental Laws or Regulations may have occurred on the
Mortgaged Property or pursuant to Section 1.8(a), the Collateral Agent shall
have the right, after ten (10) days’ prior written notice to the Company, to
have an environmental review, audit, assessment, testing program and/or report
with respect to the Mortgaged Property performed or prepared by an environmental
engineering firm selected by the Collateral Agent.  The Company shall
reimburse the Collateral Agent for the cost incurred for each such action within
ten (10) days following demand therefor by the Collateral Agent.  The
amount shall accrue interest at the Additional Interest Rate (as defined in
Section 5.2) from and including the date of disbursement by the Collateral Agent
through the date of payment by the Company.

         

        For
purposes of this Mortgage, the following definitions shall apply:

         

        “Environmental Laws or
Regulations” means and includes the Federal Comprehensive Environmental
Response, Compensation and Liability Act as amended by the Superfund Amendments
and Reauthorization Act of 1986, 42 U.S.C. Sec.Sec. 9601 et seq.; the Federal
Resource Conservation and Recovery Act of 1976, 42 U.S.C. Sec.Sec. 6901 et seq.;
the Clean Water Act, 33 U.S.C. Sec.Sec. 1321 et seq.; the Clean Air Act, 42
U.S.C. Sec.Sec. 7401 et seq.; the Louisiana Environmental Quality Act (La. R.S.
30:2001-2496), including but not limited to, the Louisiana Air Control Law (La.
R.S. 30:2051-2065); the Louisiana Water Control Law (La. R.S. 30:2071-2089); the
Louisiana Hazardous Waste Control Law (La. R.S. 30:2171-2207); the Louisiana
Inactive and Abandoned Hazardous Waste Site Law (La. R.S. 30:2221-2226); and the
Liability for Hazardous Substance Remedial Action (La. R.S. 30:2271-2290); all
as the same may be from time to time amended, and any other federal, state,
county, municipal, local or other statute, code, law, ordinance, regulation,
requirement or rule which may relate to or protect human health or the
environment, including, without limitation, all regulations promulgated by
a

         

        

        
          
            
              
                 

                |
NY\1547754.7||

              

               

            

            
               

              
                

              

            

            
               

            

          

        

        

        regulatory
body pursuant to any such statute, code, law or ordinance, and all as previously
and in the future to be amended.

         

        “Hazardous Substances” means
asbestos, asbestos containing materials, urea formaldehyde, polychlorinated
biphenyls, nuclear fuel or materials, mold, chemical waste, radioactive
materials, explosives, known carcinogens, petroleum products including but not
limited to crude oil or any fraction thereof, natural gas, natural gas liquids,
gasoline or synthetic gas, and any other waste, material, substance, pollutant
or contaminant regulated pursuant to any applicable Environmental Laws or
Regulations or which could pose a hazard to the health and safety of the owners,
occupants or any persons in the vicinity of the Mortgaged Property.

         

        “Accessibility Regulations”
means any law ordinance or regulation relating to accessibility of a facility or
property for disabled, handicapped and/or physically challenged persons,
including, without limitation, the Americans With Disabilities Act of 1991, as
amended.

         

        ARTICLE
2

        REPRESENTATIONS
AND WARRANTIES

         

        The
Company makes the following representations and warranties:

         

        2.1.                      Existence
and Powers.  The
Company is a limited liability company duly created and validly existing and in
good standing under the laws of the State of Louisiana.  The Company
has the power to own its property, to carry on its business and to execute and
perform the Transaction Documents.  The Company has obtained all
licenses and permits necessary to conduct its business in the manner presently
conducted.

         

        2.2.                      Ownership,
Liens, Compliance with Laws.  The
Company owns the Mortgaged Property free from all Liens and encumbrances except
for the Permitted Liens.  All applicable zoning and environmental,
land use, subdivision, building, fire, safety or health laws, ordinances and
regulations affecting the Mortgaged Property permit the current use and
occupancy thereof, and the Company has obtained all consents, permits and
licenses required for such use.  The Company will comply with and
satisfy all applicable formalities and provisions of the laws and regulations of
the United States of America and the laws of the State of Iowa in order to
perfect, establish and maintain this Mortgage, and any supplement or amendment
hereto.

         

        2.3.                      Authority,
Consents.  The
execution, delivery and performance of the Transaction Documents have been duly
authorized by all necessary action of the Company.  Except for
consents and approvals previously obtained, no consent or approval of, or
exemption by, any person or entity, governmental or private, is required to
authorize the execution, delivery and performance of the Transaction Documents
or the validity thereof.

         

        2.4.                      Binding
Agreement.  The
Transaction Documents are the valid and legally binding obligations of the
Company enforceable against the Company in accordance with their respective
terms, except to the extent limited by bankruptcy, insolvency or similar laws
affecting the rights of creditors generally.

         

        

        
          
            
              
                 

                |
NY\1547754.7||

              

               

            

            
               

              
                

              

            

            
               

            

          

        

        

              
 2.5.              No Conflict,
Default.  The
execution, delivery and performance by the Company of the Transaction Documents
will not violate or cause default under or permit acceleration of any agreement
to which the Company is a party or by which it or the Mortgaged Property is
bound.  To the Company’s knowledge, it is not in default (beyond any
applicable grace period) in the performance of any agreement, order, writ,
injunction, decree or demand to which it is a party or by which it is
bound.

         

        2.6.                      Litigation.  There
is no litigation, arbitration or other proceeding in process or to the Company’s
knowledge pending or threatened against the Mortgaged Property or the Company
which is reasonably likely to have a materially adverse effect on the ability of
the Company to fulfill its obligations under the Transaction Documents or on the
condition, financial or otherwise, of the Company’s business, properties or
assets.

         

        2.7.                      Use.  The
Mortgaged Property is not homestead property nor is it agricultural property in
agricultural use.

         

        2.8.                      Utilities.  The
Mortgaged Property is serviced by all necessary public utilities, and all such
utilities are operational and have sufficient capacity.

         

        2.9.                      Environmental.  To
the Company’s knowledge:

         

        (a)           There
is not located on, in, about, or under the Mortgaged Property any Hazardous
Substances except for Hazardous Substances of the type and in quantities
ordinarily used, stored, or manufactured in connection with the ownership or
operation of the Mortgaged Property as it is presently operated and such
existing Hazardous Substances have been used, stored and manufactured in
compliance with all Environmental Laws or Regulations and will not require any
notification, investigation or remedial action pursuant to any Environmental
Laws or Regulations.

         

        (b)           The
Mortgaged Property is not presently used, and has not in the past been used as a
landfill, dump, disposal facility, gasoline station or for the storage,
generation, production, manufacture, processing, treatment, disposal, handling,
transportation, or deposit of any Hazardous Substances.

         

        (c)           There
has not in the past been, and no present threat now exists of, a spill,
discharge, emission or release of a Hazardous Substance in, upon, under, over or
from the Mortgaged Property or from any other property which would have an
impact on the Mortgaged Property or require notification, investigation or
remedial action pursuant to any Environmental Laws or Regulations.

         

        (d)           There
are no past or present investigations, administrative proceedings, litigation,
regulatory hearings or other action completed, proposed, threatened or pending,
alleging noncompliance with or violation of any Environmental Laws or
Regulations respecting the Mortgaged Property, relating to Hazardous Materials
on, in, about or under the Mortgaged Property, or relating to any required
environmental permits covering the Mortgaged Property.

         

        

        
          
            
              
                 

                | NY\1547754.7||

              

               

            

            
               

              
                

              

            

            
               

            

          

        

        

        (e)           The
Company has disclosed to the Collateral Agent all reports and investigations
commissioned by, or in the possession or control of, the Company and relating to
Hazardous Substances and the Real Property and the
Improvements.

         

        (f)           There
are not now, nor have there ever been, any above ground or underground storage
tanks located in or under the Mortgaged Property.  There are no wells
on or under the Mortgaged Property.

         

        2.10.                      Mortgage
Lien.  This
Mortgage constitutes a valid mortgage and, upon proper recording hereof, will
constitute a valid and perfected mortgage lien, and security interest in the
Mortgaged Property (subject only to the Permitted Liens), and there are no
defenses or offsets to the Company’s obligations pursuant to this Mortgage or
the other Transaction Documents, including without limitation, the Company’s
applicable obligations to pay and perform the Secured Obligations.

         

        2.11.                      Tax
Liens; Bankruptcy.  There
are no federal, state or local tax claims or liens assessed or filed against the
Company or the Mortgaged Property for taxes which are due and payable,
unsatisfied of record or docketed in any court of the state in which the Real
Property is located or in any other court located in the United States, and no
petition in bankruptcy has ever been filed by the Company, or, to the Company’s
knowledge, against the Company, and the Company has never made any assignment
for the benefit of creditors or taken advantage of any insolvency act or any act
for the benefit of debtors.

         

        2.12.                      Damage;
Eminent Domain Proceedings.  The
Mortgaged Property has not been damaged or destroyed by fire or other casualty,
and no condemnation or eminent domain proceedings have been commenced and none
are pending with respect to the Mortgaged Property, and, to the Company’s
knowledge, no such condemnation or eminent domain proceedings are about to be
commenced or threatened.

         

        ARTICLE
3

        CASUALTY
— CONDEMNATION

         

        3.1.                      Damage
or Destruction.  During
the period the Secured Obligations remain outstanding, in the event that the
Real Property, the Improvements, or the Fixtures shall be damaged or destroyed
in whole or in part, by fire or other casualty covered by insurance, the Company
shall give prompt written notice thereof to the Collateral Agent.  At
such time as such damage, destruction or casualty shall occur, the Insurance
Proceeds shall be treated as an Event of Loss and shall be payable to the
Collateral Agent and shall be released, applied and/or distributed in accordance
with Sections 4.13 and 10.4 of the Indenture.  Upon the occurrence of
an Event of Default which has not been waived in writing by the Holders in
accordance with Section 9.2 of the Indenture, the Collateral Agent shall have
the right to apply such Insurance Proceeds in accordance with Section 6.10 of
the Indenture.  The Collateral Agent shall have the right to
participate in any insurance proceeding at the Company’s expense, including
reasonable attorneys’ fees and disbursements.

         

        

        
          
            
              
                 

                |
NY\1547754.7||

              

               

            

            
               

              
                

              

            

            
               

            

          

        

        

             3.2.           Condemnation.

         

        (a)           During
the period the Secured Obligations remain outstanding, in the event that the
Mortgaged Property, or any part thereof, shall be taken in condemnation
proceedings or by exercise of the right of eminent domain, or by conveyance in
lieu of condemnation, or as a result of the exercise by any governmental
authority of any right or option to purchase (hereinafter collectively called
“Proceedings”), the
Collateral Agent shall have the right to participate in any such Proceedings at
the Company’s expense, including reasonable attorneys’ fees and disbursements,
and any Eminent Domain Awards that may be made or any proceeds thereof shall be
released, applied and/or distributed in accordance with the terms of the
Indenture.  The parties agree to execute any and all further documents
that may be required in order to facilitate collection of any Eminent Domain
Award and the making of any such deposit.

         

        (b)           During
the period the Secured Obligations remain outstanding, if there occurs a
Proceeding, any Eminent Domain Awards payable in connection therewith shall be
considered an Asset Sale and shall be released, applied and/or distributed in
accordance with Sections 4.13 and 10.4 of the Indenture.

         

        (c)           Upon
the occurrence of an Event of Default which has not been waived in writing by
the Holders in accordance with Section 9.2 of the Indenture, the Collateral
Agent shall have the right to apply such Eminent Domain Awards in accordance
with Section 6.10 of the Indenture.

         

        ARTICLE
4

        LEASES
AND RENTS

         

        4.1.                      Space
Leases, Rents and Cash Collateral.

         

        (a)           As
additional collateral security for payment of the Secured Obligations, and
cumulative of any and all rights and remedies herein provided, the Company
hereby bargains, sells, transfers, assigns and sets over to the Collateral Agent
for the benefit of the Holders, any and all Space Leases and Rents and any and
all cash collateral to be derived from the Mortgaged Property, or the use and
occupation thereof, or under any contract or bond relating to the construction
or reconstruction of the Mortgaged Property, including all Rents, royalties,
revenues rights, deposits (including security deposits) and benefits accruing to
the Company under all Space Leases, and the right to receive the same and apply
them against the Secured Obligations or against the Company’s other obligations
hereunder or the Company’s obligations under the Transaction Documents, together
with all Space Leases, contracts, bonds, leases and other documents evidencing
the same now or hereafter in effect and all right of the Company
thereunder.  Nothing contained in the preceding sentence shall be
construed to bind the Collateral Agent to the performance of any of the
provisions of any such Space Lease, contract, bond, lease or other documents or
otherwise impose any obligation upon the Collateral Agent, except that the
Collateral Agent shall be accountable for any money actually received pursuant
to such assignment to the extent of its disposition thereof in a manner
inconsistent with this Mortgage or the Transaction Documents.  The
Company shall deliver to the Collateral Agent upon the Collateral Agent’s
request an executed counterpart of each such Space Lease, contract, bond or
other documents.  The assignment of said Space Leases, Rents, income
profits, proceeds and cash collateral, and any of the aforesaid rights with
respect thereto and to the contracts, bonds, leases and other documents
evidencing the same, is intended to be and is an absolute present assignment
from the Company to the Collateral Agent and not merely the passing of a
security interest.

         

        

        
          
            
              
                 

                |
NY\1547754.7||

              

               

            

            
               

              
                

              

            

            
               

            

          

        

         

        (b)           So
long as there shall exist no Event of Default hereunder which has not been
waived in writing by the Holders in accordance with the Indenture, the Company
shall have the right and license to exercise all rights, options and privileges
extended to the lessor under the terms of the Space Leases, including, without
limitation, the right to collect all Rents.  The Company agrees to
hold the same in trust and to use the same, first, in payment of the Secured
Obligations, second, the Taxes and insurance premiums payable hereunder and all
other charges on or against the Mortgaged Property and, third, to the expenses
of the Company’s business in or on the Mortgaged Property.

         

        (c)           In
the event of any such Event of Default which has not been so waived, the right
and license set forth in subparagraph (b) of this Section shall be automatically
revoked, and, thereafter, the Collateral Agent shall have the right and
authority to exercise any of the rights or remedies referred to or set forth
herein.  In addition, upon such an Event of Default, the Company shall
promptly pay to the Collateral Agent (i) all rent prepayments and security or
other deposits paid to the Company pursuant to any Space Leases and (ii) all
charges for services or facilities or for escalations which were paid pursuant
to any Space Leases to the extent allocable to any period from and after such
Event of Default and any such sums received by the Collateral Agent shall be
applied by the Collateral Agent in accordance with Section 6.10 of the
Indenture.

         

        (d)           If
the Company is not required to surrender possession of the Mortgaged Property
hereunder in the event of any such Event of Default which has not been so
waived, the Company will pay monthly in advance to the Collateral Agent, or to
any receiver appointed to collect the same, the income, profits or proceeds
received by the Company under any of the Space Leases.

         

        (e)           The
Company will, upon the Collateral Agent’s request, execute, acknowledge and
deliver to the Collateral Agent, in form approved by the Collateral Agent, one
or more general or specific assignments of the lessor’s interest under any Space
Lease (which are consistent with the foregoing provisions).  The
Company will, on demand, pay to the Collateral Agent, or reimburse the
Collateral Agent for the payment of, all costs or expenses incurred in
connection with the preparation or recording of any such
assignment.

         

        (f)           The
Company will (i) perform or cause to be performed the lessor’s obligations under
any Space Lease, (ii) enforce the performance by the lessee under its respective Space Lease of all of said lessee’s material
obligations thereunder and (iii) give the Collateral Agent prompt notice and a
copy of any notice of default, event of default, termination or cancellation
sent or received by the Company.

         

        

        
          
            
              
                 

                |
NY\1547754.7||

              

               

            

            
               

              
                

              

            

            
               

            

          

        

         

         

        (g)           Except
to the extent expressly permitted herein or under the other Transaction
Documents, the Company will not, without the Collateral Agent’s written consent,
(i) assign, mortgage, pledge or otherwise transfer, dispose of or encumber,
whether by operation of law or otherwise, any Space Lease or the Rents or other
income thereunder or therefrom, (ii) accept or permit the acceptance of a
prepayment of any Rents for more than one month in advance of the due dates
therefor, (iii) amend, modify or otherwise alter any Space Lease or (iv) cancel,
terminate or accept a surrender of any Space Lease.

        
          (h)           The
Company will from time to time, promptly upon the Collateral Agent’s request,
prepare and deliver to the Collateral Agent such information concerning the
Space Leases as the Collateral Agent shall request.

          
            (i)           This assignment of leases and rents
is given to the fullest extent allowed by La. R.S. Sec. 9:4401 to secure the
Secured Obligations up to the Maximum Amount.

            
              
                
                  ARTICLE
5

                  DEFAULTS
AND REMEDIES

                   

                  5.1.                      Events
of Default.  Each
of the following shall constitute an Event of Default hereunder:

                   

                  (a)           the
occurrence of an “Event of Default” as defined in Section 6.1 of the Indenture;
or

                   

                  (b)           the
failure of the Company to observe and perform any covenant, condition or
agreement on its part to be observed or performed in this Mortgage (other than
an occurrence which may sooner constitute an “Event of Default” under the
Indenture) including, without limitation, the covenants contained in Article I
herein for a period of thirty (30) days after written notice specifying such
failure and requesting that it be remedied, given to the Company by the
Collateral Agent, unless the Collateral Agent agrees in writing to an extension
of such time prior to its expiration.

                   

                  5.2.                      Remedies.  Upon
the occurrence of an Event of Default, all Secured Obligations, at the option of
the Collateral Agent, shall be accelerated and become immediately due and
payable upon notice to the Company.  The outstanding principal amount
and the interest accrued thereon of the Secured Obligations shall be due and
payable without presentment, demand or further notice of any kind, all of which
are hereby expressly waived by the Company.  The Company will pay to
the Collateral Agent the entire Secured Obligations or portions thereof, as
applicable, and to the extent permitted by law, the premiums and penalties, if
any, provided in this
Mortgage and each other Transaction Document, as applicable, and such payment
shall be applied in accordance with Section 6.10 of the
Indenture.

                   

                  

                  
                    
                      
                        
                           

                          |
NY\1547754.7||

                        

                         

                      

                      
                         

                        
                          

                        

                      

                      
                         

                      

                    

                  

                  

                   

                  In
the event of any Event of Default, whether or not an acceleration shall occur,
the Collateral Agent shall have the right to proceed to protect and enforce its
rights by one or more of the following remedies:

                   

                  (a)           THE
COLLATERAL AGENT SHALL HAVE THE RIGHT TO BRING SUIT either for damages, specific
performance of any agreement contained in any Transaction Document, or for the
foreclosure of this Mortgage, or for the enforcement of any other appropriate
legal or equitable remedy.

                   

                  (b)           THE
COLLATERAL AGENT SHALL HAVE THE RIGHT TO OBTAIN A RECEIVER at any time after an
Event of Default, whether or not an action for foreclosure has been
commenced.  Any court having jurisdiction shall at the request of the
Collateral Agent following an Event of Default appoint a receiver to take
immediate possession of the Mortgaged Property and to rent or operate the same
as he may deem best for the interest of all parties concerned, and such receiver
shall be liable to account to the Company only for the net profits, after
application of rents, issues and profits upon the costs and expenses of the
receivership and upon the Secured Obligations.

                   

                  The
Collateral Agent shall have the right, at any time to advance money to the
receiver to pay any part or all of the items which the receiver should otherwise
pay if cash were available from the Mortgaged Property and sums so advanced,
with interest (“Additional
Interest’) at the per annum rate equal to the interest rate then borne by
the Notes (the “Additional
Interest Rate”), shall be secured hereby, or if advanced during the
period of redemption shall be a part of the sum required to be paid to redeem
from the sale.

                   

                  (c)           THE
COLLATERAL AGENT SHALL HAVE THE RIGHT TO COLLECT THE RENTS from the Mortgaged
Property and apply the same in the manner hereinbefore provided with respect to
a receiver.  For that purpose, the Collateral Agent may enter and take
possession of the Mortgaged Property and manage and operate the same and take
any action which, in the Collateral Agent’s judgment, is necessary or proper to
collect the Rents and to conserve the value of the Mortgaged
Property.  The Collateral Agent may also take possession of, and for
these purposes use, any and all of the Security Interests
Property.  The expense (including any receiver’s fees, attorneys’
fees, costs and agent’s compensation) incurred pursuant to the powers herein
contained shall be secured by this Mortgage.  The Collateral Agent
shall not be liable to account to the Company for any action taken pursuant
hereto other than to account for any Rents actually received by the Collateral
Agent.  Enforcement hereof shall not cause the Collateral Agent to be
deemed a Collateral Agent in possession unless the Collateral Agent elects in
writing to be a Collateral Agent in possession.

                   

                  (d)           THE
COLLATERAL AGENT SHALL HAVE THE RIGHT TO ENTER AND TAKE POSSESSION of the
Mortgaged Property and manage and operate the same in conformity with all applicable
laws and take any action which, in the Collateral Agent’s judgment, is necessary
or proper to conserve the value of the Mortgaged
Property.

                   

                  

                  
                    
                      
                        
                           

                          |
NY\1547754.7||

                        

                         

                      

                      
                         

                        
                          

                        

                      

                      
                         

                      

                    

                  

                  

                   

                  (e)           THE
COLLATERAL AGENT SHALL HAVE ALL OF THE RIGHTS AND REMEDIES PROVIDED IN THE CODE,
including Iowa Code Chapter 554, including the right to proceed under the Code
provisions governing default as to any Security Interests Property separately
from the real estate included within the Mortgaged Property, or to proceed as to
all of the Mortgaged Property in accordance with its rights and remedies in
respect of said real estate.  If the Collateral Agent should elect to
proceed separately as to such Security Interests Property, the Company agrees to
make such Security Interests Property available to the Collateral Agent at a
place or places acceptable to the Collateral Agent, and if any notification of
intended disposition of any of such Security Interests Property is required by
law, such notification shall be deemed reasonably and properly given if given at
least ten (10) days before such disposition in the manner hereinafter
provided.

                   

                  (f)           THE
COLLATERAL AGENT SHALL HAVE THE RIGHT TO FILE PROOF OF CLAIM and other documents
as may be necessary or advisable in order to have its claims allowed in any
receivership, insolvency, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceedings affecting the Company, its creditors
or its property, for the entire amount due and payable by the Company under the
Secured Obligations, this Mortgage and any other instrument securing the Secured
Obligations, at the date of the institution of such proceedings, and for any
additional amounts which may become due and payable by the Company after such
date.

                   

                  Each
remedy herein specifically given shall be in addition to every other right now
or hereafter given or existing at law or in equity, and each and every right may
be exercised from time to time and as often and in such order as may be deemed
expedient by the Collateral Agent and the exercise or the beginning of the
exercise of one right shall not be deemed a waiver of the right to exercise at
the same time or thereafter any other right.  The Collateral Agent
shall have all rights and remedies available under the law in effect now and/or
at the time such rights and remedies are sought to be enforced, whether or not
they are available under the law in effect on the date hereof.

                   

                  5.3.                      Expenses
of Exercising Rights, Powers and Remedies.  The
expense (including any receiver’s fees, reasonable attorneys’ fees, appraisers’
fees, environmental engineers’ and/or consultants’ fees, costs incurred for
documentary and expert evidence, stenographers’ charges, publication costs,
costs (which may be estimated as to items to be expended after entry of the
decree of foreclosure) of procuring all abstracts of title, continuations of
abstracts of title, title searches and examinations, title insurance policies
and commitments and extensions therefor, Torrens duplicate certificates of
title, UCC and chattel lien searches, and similar data and assurances with
respect to title as the Collateral Agent may deem necessary either to prosecute
any foreclosure action or to evidence to bidders at any sale which may be had
pursuant to any foreclosure decree the true condition of the title to or the
value of the Mortgaged Property, and agent’s
compensation) incurred by the Collateral Agent after the occurrence of any Event
of Default under this Mortgage and/or in pursuing the rights, powers and
remedies contained in this Mortgage shall be immediately due and payable by the
Company, with interest thereon at the Additional Interest Rate, and shall be
added to the indebtedness secured by this Mortgage.

                   

                  

                  
                    
                      
                        
                           

                          |
NY\1547754.7||

                        

                         

                      

                      
                         

                        
                          

                        

                      

                      
                         

                      

                    

                  

                  

                   

                  5.4.                      Restoration
of Position.  In
case the Collateral Agent shall have proceeded to enforce any right under this
Mortgage by foreclosure, sale, entry or otherwise, and such proceedings shall
have been discontinued or abandoned for any reason or shall have been determined
adversely, then, and in every such case, the Company and the Collateral Agent
shall be restored to their former positions and rights hereunder with respect to
the Mortgaged Property subject to the lien hereof.

                   

                  5.5.                      Marshalling.  The
Company, for itself and on behalf of all persons, parties and entities which may
claim under the Company, hereby waives all requirements of law relating to the
marshalling of assets, if any, which would be applicable in connection with the
enforcement by the Collateral Agent of its remedies for an Event of Default
hereunder, absent this waiver.  The Collateral Agent shall not be
required to sell or realize upon any portion of the Mortgaged Property before
selling or realizing upon any other portion thereof.

                   

                  5.6.                      Waivers.  No
waiver of any provision hereof shall be implied from the conduct of the
parties.  Any such waiver must be in writing and must be signed by the
party against which such waiver is sought to be enforced.  The waiver
or release of any breach of the provisions set forth herein to be kept and
performed shall not be a waiver or release of any preceding or subsequent breach
of the same or any other provision.  No receipt of partial payment
after acceleration of any of the Secured Obligations shall waive the
acceleration.  No payment by the Company or receipt by the Collateral
Agent of a lesser amount than the full amount secured hereby shall be deemed to
be other than on account of the sums due and payable hereunder, nor shall any
endorsement or statement on any check or any letter accompanying any check or
payment be deemed an accord and satisfaction, and the Collateral Agent may
accept any check or payment without prejudice to the Collateral Agent’s right to
recover the balance of such sums or to pursue any other remedy provided in this
Mortgage.  The consent by the Collateral Agent to any matter or event
requiring such consent shall not constitute a waiver of the necessity for such
consent to any subsequent matter or event.

                   

                  5.7.                      The
Collateral Agent’s Right to Cure Defaults.  If
the Company shall fail to comply with any of the terms hereof with respect to
the procuring of insurance, the payment of taxes, assessments and other charges,
the keeping of the Mortgaged Property in repair, the payment and satisfaction of
Liens and encumbrances against the Mortgaged Property, the payment of any other
sum or deposit required under this Mortgage, or any other term herein contained,
the Collateral Agent may make advances or take other actions to perform the same
without releasing the Company from any Secured Obligations and may enter upon
the Mortgaged Property for any such purpose and take all such action thereon as
the Collateral Agent or any of its duly appointed agents may deem necessary or
appropriate therefor.  The Company agrees to repay upon demand all
sums so advanced and all sums expended by the Collateral Agent in connection
with such performance, including without limitation attorneys’ fees, with
Additional Interest at the Additional Interest Rate from the dates such advances
are made, and all sums so advanced and/or expenses incurred, with Additional
Interest at the Additional
Interest Rate, shall be secured hereby as Secured Obligations, but no such
advance and/or incurring of expense by the Collateral Agent, shall be deemed to
relieve the Company from any default hereunder, or to release the Company from
any Secured Obligations.  The Collateral Agent shall not be bound to
inquire into the validity of any Imposition or Lien which the Company fails to
pay as and when required by this Mortgage and which the Company does not contest
in strict accordance with the terms of this Mortgage.

                   

                  

                  
                    
                      
                        
                           

                          |
NY\1547754.7||

                        

                         

                      

                      
                         

                        
                          

                        

                      

                      
                         

                      

                    

                  

                  

                   

                  5.8.                      Suits
and Proceedings.  The
Collateral Agent shall have the power and authority, upon prior notice to the
Company to institute and maintain any suits and proceedings as the Collateral
Agent may deem advisable to (i) prevent any impairment of the Mortgaged Property
by any acts which may be unlawful or any violation of this Mortgage, (ii)
preserve or protect its interest in the Mortgaged Property, or (iii) restrain
the enforcement of or compliance with any legislation or other governmental
enactment, rule or order that may be unconstitutional or otherwise invalid, if,
in the sole opinion of the Collateral Agent, the enforcement of or compliance
with such enactment, rule or order might impair the security hereunder or be
prejudicial to the Collateral Agent’s interest.

                   

                  5.9.                      Waiver
of Appraisement, Valuation, Stay, Extension and Redemption
Laws.  Mortgagor
agrees to the full extent permitted by law that if an Event of Default occurs
and is continuing, neither Mortgagor nor anyone claiming through or under it
shall or will set up, claim or seek to take advantage of any appraisement,
valuation, stay, extension or redemption laws now or hereafter in
force.  Mortgagor hereby waives the benefit of appraisement as
provided in Louisiana Code of Civil Procedure Articles 2332, 2336, 2723 and 2724
and all other laws conferring the same, the demand and three (3) days delay
accorded by Louisiana Code of Civil Procedure Articles 2293 and 2721, the three
(3) days delay Louisiana Code of Civil provided by Procedure Article 2721, the
notice of seizure required by Louisiana Code of Civil Procedure Articles 2331
and 2722, and the benefits of the other provisions of Louisiana Code of Civil
Procedure Article 2331, 2722 and 2723 not specifically mentioned above, in order
to prevent or hinder the enforcement or foreclosure of this Mortgage or the
absolute sale of the Mortgaged Property or any portion thereof or the final and
absolute putting into possession thereof, immediately after such sale, of the
purchasers thereof, and Mortgagor for itself and all who may at any time claim
through or under it, hereby waives, to the full extent that it may lawfully so
do, the benefit of all such laws, and any and all right to have the assets
comprising the Mortgaged Property marshaled upon any foreclosure of the lien
hereof and agrees that Mortgagee or any court having jurisdiction to foreclose
such lien may sell the Mortgaged Property in part or as an
entirety.  Additionally, Mortgagor does hereby authorize Mortgagee to
cause all or singular of the Mortgaged Property to be sold, with or without
appraisement, in the sole discretion of Mortgagee, in a single sale or in
several sales with the sale or sales conducted in a single location irrespective
of the location(s) of the Mortgaged Property in more than one
parish.

                   

                  5.10.                      Confession
of Judgment.  Solely
for purposes of executory process under Louisiana law, Mortgagor does hereby
acknowledge the Secured Obligations and CONFESS JUDGMENT in favor of Mortgagee
for the full amount of the Secured Obligations.

                   

                   

                  

                  
                    
                      
                        
                           

                          |
NY\1547754.7||

                        

                         

                      

                      
                         

                        
                          

                        

                      

                      
                         

                      

                    

                  

                   

                  
                    5.11.                      Keeper.  In
the event the Mortgaged Property, or any part thereof, is seized as an incident
to an action for the recognition or enforcement of this Mortgage
byexecutory process, ordinary process, sequestration writ of fieri facias
or otherwise, Mortgagor and Mortgagee agree that the court issuing any such
order shall if petitioned for by Mortgagee, direct the applicable sheriff to
appoint as a keeper of the Mortgaged Property, Mortgagee or any agent designated
by Mortgagee or any person named by Mortgagee at the time such seizure is
effected.  This designation is pursuant to Louisiana revised Statues
9:5136 through 5140.2, inclusive, as the same may be amended, and Mortgagee
shall be entitled to all the rights and benefits afforded
thereunder.  It is hereby agreed that the keeper shall be entitled to
receive as compensation, in excess of its reasonable costs and expenses incurred
in the administration or preservation of the Mortgaged Property, an amount equal
to $250.00 per day, which shall be payable monthly on the first day of each
month and shall be included as Obligations secured by this
Mortgage.  The designation of keeper made herein shall not be deemed
to require Mortgagee to provoke the appointment of such a keeper.

                  

                   

                  5.12.                      Authentic
Evidence.  Any
and all declarations of fact made by authentic act before a notary public in the
presence of two (2) witnesses by a person declaring that such facts lie within
his knowledge, shall constitute authentic evidence of such facts for the purpose
of executory process and also for purposes of La. R.S. 9:3509-1, La. R.S.
9:3504(D)(6) and La. R.S. 10:9-629, where applicable.  Mortgagor
specifically agrees that such an affidavit by a representative of Mortgagee as
to the existence, amount, terms and maturity of the Obligations secured
hereunder and of a Default or an Event of Default hereunder shall constitute
authentic evidence of such fact for the purpose of executory
process.

                   

                  5.13.                      Reinscription
of Mortgage.  Mortgagor
shall reinscribe this Mortgage prior to the date on which the Lien of this
Mortgage may prescribe by any applicable prescriptive period.

                   

                  During
the term of this Mortgage, Mortgagor shall cause this Mortgage to be reinscribed
in the manner provided by law in the records of the Recorders of Mortgages for
the Parishes St. Landry and West Baton Rouge at least forty-five (45) days prior
to the tenth (10th) anniversary of the date of this Mortgage and within the
reinscription or continuation period provided in La. R.S. 9:4401 and Louisiana
Civil Code Article 3328, as the same may be amended from time to
time.

                   

                  The
parties to this Mortgage hereby waive the production of mortgage, conveyance,
tax, assignment of accounts receivable and other certificates and relieve and
release the notary before whom this Mortgage was passed from all
responsibilities and liabilities in connection therewith.

                   

                  ARTICLE
6

                  MISCELLANEOUS

                   

                  6.1.                      Binding
Effect; Survival; Number; Gender.  This
Mortgage shall be binding on and inure to the benefit of the parties hereto,
their successors and assigns.  All representations and warranties
contained herein or otherwise heretofore made by the Company to the Collateral
Agent shall survive the execution, delivery and foreclosure
hereof.  The singular of all terms used herein shall include the
plural, the plural shall include the singular, and the use of any gender herein
shall include all other genders, where the context so requires or
permits.

                   

                  

                  
                    
                      
                        
                           

                          |
NY\1547754.7||

                        

                         

                      

                      
                         

                        
                          

                        

                      

                      
                         

                      

                    

                  

                  

                         
6.2.              Severability.  The
unenforceability or invalidity of any provision of this Mortgage as to any
persons or circumstances shall not render that provision unenforceable or
invalid as to any other persons or circumstances and shall not affect the
enforceability of the remaining provisions hereof.

                   

                  6.3.                      Notices.  All
notices and demands required or permitted to be given to or made upon any party
hereto under any Transaction Document shall be in writing and shall be
personally delivered or sent by certified mail, postage prepaid, return receipt
requested or by a nationally recognized courier, or by telecopier, and shall be
deemed to be given for purposes of this Mortgage on the day that such writing is
delivered or sent to the intended recipient thereof in accordance with the
provisions of this Section.  Notices shall be given to or made upon
the respective parties hereto at their respective addresses set forth
below:

                   

                  If
to the Company:

                   

                  Peninsula
Gaming, LLC

                  Peninsula
Gaming Corp.

                  600
Star Brewery Drive, Suite 110

                  Dubuque,
IA 52001

                  Attention:  Natalie
Schramm

                  Fax:  (563)
690-1394

                   

                  With
a copy to:

                   

                  White
& Case LLP

                  1155
Avenue of the Americas

                  New
York, NY 10036

                  Attention:  Nazim
Zilkha, Esq.

                  Fax:  (212)
354-8113

                   

                  If
to the Collateral Agent:

                   

                  U.S.
Bank National Association

                  60
Livingston Avenue

                  St.
Paul, Minnesota  55107

                  Attention:  Corporate
Trust Department

                   

                  Either
party may change the address for notices by a notice given not less than five
(5) business days prior to the effective date of the change.

                   

                  6.4.                      Survival
of Warranties, Etc.  All
agreements, representations and warranties made herein shall survive the
execution and delivery of this Mortgage.

                   

                  6.5.                      Applicable
Law.  THIS
MORTGAGE AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS MADE AND PERFORMED IN THE STATE OF NEW YORK AND ANY APPLICABLE LAWS OF
THE UNITED STATES OF AMERICA, PROVIDED,
HOWEVER,
THAT THE PROVISIONS FOR THE CREATION, PERFECTION AND ENFORCEMENT OF THE
LIENS AND SECURITY INTERESTS CREATED HEREUNDER WITH RESPECT TO THE MORTGAGED
PROPERTY SHALL BE GOVERNED BY LOUISIANA LAW TO THE EXTENT NECESSARY FOR THE
VALIDITY AND ENFORCEMENT THEREOF.

                   

                  

                  
                    
                      
                        
                           

                          |
NY\1547754.7||

                        

                         

                      

                      
                         

                        
                          

                        

                      

                      
                         

                      

                    

                  

                  

                   

                  6.6.                      Additional
Applicable Laws and Regulations.  Mortgagor
and Mortgagee acknowledge that, to the extent required under applicable laws,
the consummation of the transactions contemplated hereby and the exercise of
remedies hereunder may be subject to the Louisiana horse racing and off-track
betting statutes, La. R.S. 4:141 et
seq. and 4:211 et
seq., the Video Draw Poker Devices Control Law, La. R.S. 27:301 et
seq., the Louisiana Pari-Mutuel Live Racing Facility Economic
Redevelopment and Gaming Control Act (Slots at the Track), La. R.S. 27:351 et
seq., the Louisiana Gaming Control Law, La. R.S. 27:1 et
seq. and the regulations promulgated pursuant to such laws and statutes,
all as amended from time to time.  Mortgagor and Mortgagee further
acknowledge that the Gaming Licenses held by Mortgagor in connection with
operations conducted by Mortgagor at the Mortgaged Property are not part of the
collateral of this Mortgage and that, under the above described legislation and
rules promulgated thereunder, Mortgagee may be precluded from or otherwise
limited in taking possession of or selling the collateral of this Mortgage under
the Defaults and Remedies provisions of this Mortgage.  Nothing in
this Mortgage, however, prevents Mortgagee or any other party who may take
possession or control of the Mortgaged Property pursuant to such Defaults and
Remedies provisions from using the Mortgaged Property for purposes that are
unrelated to pari-mutuel wagering or gaming activities and that would not
require approval or licensing by such Governmental
Authorities.  Mortgagor and Mortgagee also acknowledge that due to
various legal restrictions, including, without limitation, licensing of
operators of pari-mutuel wagering facilities and prior approval of the sale or
disposition of assets of a licensed pari-mutuel wagering operation, the sale of
collateral may be denied by racing authorities or gaming authorities or delayed
pending gaming authority action or approval.

                   

                  6.7.                      Waiver
of Jury Trial.  EACH
OF THE COMPANY AND THE COLLATERAL AGENT, BY ITS ACCEPTANCE OF THIS MORTGAGE,
IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS MORTGAGE AND ANY OF THE OTHER SECURITY
DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

                   

                  6.8.                      Effect.  This
Mortgage is in addition to and not in substitution for any other guaranties,
covenants, obligations or other rights now or hereafter held by the Collateral
Agent from any other person or entity in connection with the Secured
Obligations.

                   

                  6.9.                      Assignability.  The
Collateral Agent shall have the right to assign this Mortgage, in whole or in
part or sell participation interests herein, to any person obtaining an interest
in the Secured Obligations.

                   

                  6.10.                      Headings.  Headings
of the Sections of this Mortgage are inserted for convenience only and shall not
be deemed to constitute a part hereof.

                   

                  6.11.                      Defined
Terms.  All
capitalized terms used in this Mortgage and not defined herein shall have the
meanings ascribed to them in the Indenture.

                   

                  

                  
                    
                      
                        
                           

                          |
NY\1547754.7||

                        

                         

                      

                      
                         

                        
                          

                        

                      

                      
                         

                      

                    

                  

                  

                         
6.12.              Discharge of
Lien.  In
accordance with Section 10.4 of the Indenture and upon the observance and
performance of each and every covenant and condition set forth herein and in the
Indenture and the Notes, then and in that case all property, rights and interest
hereby conveyed or assigned or pledged shall revert to the Company, and the
estate, right, title and interest of the Collateral Agent therein shall
thereupon cease, terminate and become void; and this Mortgage, and the covenants
of the Company contained herein, shall be discharged and the Collateral Agent in
such case on demand of the Company and at the Company’s cost and expense, shall
execute and deliver to the Company a proper instrument or proper instruments
acknowledging the satisfaction and termination of this Mortgage, and shall
convey, assign and transfer or cause to be conveyed, assigned or transferred,
and shall deliver or cause to be delivered, to the Mortgagor, all property,
including money, then held by the Collateral Agent hereunder.

                   

                  6.13.                      Conflicts
with Security Agreement.  In
the event of a conflict between the provisions of the Security Agreement and the
provisions of this Mortgage, the Mortgage shall govern in all matters relating
to the validity and enforceability of the Lien created hereby on the Real
Property, the Improvements, the Fixtures, and the Rents and (except as expressly
set forth to the contrary herein or in the Security Agreement), the Security
Agreement shall govern in all other respects.

                   

                  6.14.                      Mortgage
Absolute.  The
obligations of the Company under this Mortgage are independent of the
obligations of Company under the other Transaction Documents, and a separate
action or actions may be brought and prosecuted against Company to enforce this
Mortgage, irrespective of whether any action is brought against Company under
such other Transaction Documents.  All rights of Collateral Agent and
the mortgage, assignment and security interest hereunder, and all obligations of
Company hereunder, shall be absolute and unconditional, irrespective
of:

                   

                  (a)           any
lack of validity or enforceability of any other Transaction Document or any
other agreement or instrument relating thereto;

                   

                  (b)           any
change in the time, manner or place of payment of, or in any other term of, all
or any of the obligations of the Company under the other Transaction Documents
or any other amendment or waiver of or any consent to any departure from the
other Transaction Documents, including, without limitation, any increase in such
obligations resulting from the extension of additional credit to the Company or
otherwise;

                   

                  (c)           any
taking, exchange, release or non-perfection of any other collateral, or any
taking, release or amendment or waiver of or consent to departure from any
guaranty, for all or any other of the obligations of the Company under the other
Transaction Documents;

                   

                  (d)           any
manner of application of collateral, or proceeds thereof, to all or any of the
obligations of the Company under the other Transaction Documents, or any manner
of sale or other disposition of any collateral for all or any of such
obligations or any other assets of the Company;

                   

                  

                  
                    
                      
                        
                           

                          |
NY\1547754.7||

                        

                         

                      

                      
                         

                        
                          

                        

                      

                      
                         

                      

                    

                  

                  

                  (e)           any
change, restructuring or termination of the corporate restructure or existence
of the Company; or

                   

                  (f)           any
other circumstance that might otherwise constitute a defense available to, or a
discharge of, the Company or a third party of a security interest or
mortgage.

                   

                  6.15.                      Interaction
with Indenture.  All
terms, covenants, conditions, provisions and requirements of the Indenture are
incorporated by reference in this Mortgage.  Notwithstanding any other
provision of this Mortgage, the terms and provisions of this Mortgage shall be
subject and subordinate to the terms of the Indenture.  To the extent
that the Indenture provides the Company with a particular cure or notice period,
or establishes any limitations or conditions on the Collateral Agent’s actions
with regard to a particular set of facts, the Company shall be entitled to the
same cure periods and notice periods, and Collateral Agent shall be subject to
the same limitations and conditions, under this Mortgage, as under the
Indenture, in place of the cure periods, notice periods, limitations and
conditions provided for under this Mortgage; provided, however, that such cure
periods, notice periods, limitations and conditions shall not be cumulative as
between the Indenture and this Mortgage.  In the event of any conflict
or inconsistency between the provisions of this Mortgage and those of the
Indenture, including, without limitation, any conflicts or inconsistencies in
any definitions herein or therein, the provisions or definitions of the
Indenture shall govern.

                   

                  6.16.                      Excluded
Assets.  Notwithstanding
anything to the contrary contained herein, if a portion of the Mortgaged
Property becomes an Excluded Asset after the Issue Date, the Collateral Agent
shall, simultaneous with the granting of the applicable Permitted Lien, without
the payment of any partial release for, or any other prepayment with respect to,
the Notes, release the Lien in favor of the Collateral Agent in such Excluded
Asset in accordance with the provisions of Section 10.4 of the
Indenture.  Once any Excluded Asset is released, such Excluded Asset
shall be expressly excluded from and shall no longer be deemed Mortgaged
Property under this Mortgage and shall not be subject to any of the
representations, covenants or obligations under this Mortgage.

                   

                  6.17.                      Indemnity.  The
Company hereby agrees to indemnify, defend and hold the Collateral Agent (and
its directors, officers, agents and employees) and each Holder harmless from and
against any and all loss, liability, damage, claim, judgment or expense
(including reasonable attorneys’ fees and expenses, bond expenses, printing and
automated document preparation and retention expenses and other ordinary
litigation expenses) incurred by it (or such director, officer, agent or
employee) in connection with the acceptance or administration of the Collateral
Agent’s duties under this Mortgage, any action or proceeding to foreclose this
Mortgage or in or to which the Collateral Agent or any Holder may be made a
party due to the existence of this Mortgage or the other Transaction Documents
or to which action or proceeding the Collateral Agent or any Holder may become a
party for the purpose of protecting the lien of this Mortgage.  All
sums paid by the Collateral Agent or any Holder to prosecute or defend the
rights herein set forth shall be deemed a part of the Secured Obligations and
shall be paid by the Company to the Collateral Agent or such Holder within ten
(10) days after written demand, and if not paid within that period, shall accrue
interest from and including the date of disbursement or advance
by the Collateral Agent or such Holder to and including the date of payment by
the Company at the Additional Interest Rate.

                   

                  

                  
                    
                      
                        
                           

                          |
NY\1547754.7||

                        

                         

                      

                      
                         

                        
                          

                        

                      

                      
                         

                      

                    

                  

                  

                   

                  6.18.                      Multiple
Parish Recordation.  This
Mortgage has been executed simultaneously in a number of multiple
originals.  Pursuant to Louisiana Civil Code Article 3323, to
facilitate recordation of this Mortgage, an original which is filed with the
recorder of mortgages in a particular Louisiana parish may contain only the
portions of Exhibit
B which describe properties and interests situated in that parish, and
the other portions of Exhibit
B which describe properties and interests situated in other parishes may
be omitted from that filed original.  A multiple original of this
Mortgage containing all of Exhibit
B has been retained by Mortgagee.  All such multiple originals
shall together constitute but one and the same instrument.

                   

                  6.19.                      Louisiana
Terms.  As
used in this Mortgage: the terms “real property” and “real estate” shall be
deemed to include immovable property; the term “fee estate” shall include full
ownership; the term “personal property” shall be deemed to include movable
property; the term “tangible property” shall be deemed to include corporeal
property; the term “intangible property” shall be deemed to include incorporeal
property; the term “easements” shall be deemed to include servitudes; the term
“buildings” shall be deemed to include other constructions; the phrase “covenant
running with the land” and other words of similar import shall be deemed to
include a real right or a recorded lease of immovable property; the term
“county” shall be deemed to mean parish; the term “joint and several liability”
shall be deemed to include in solido liability; the terms “deed in lieu of
foreclosure”, “conveyance in lieu of foreclosure” and words of similar import
shall include a dation en paiement; references to the Uniform Commercial Code
shall include the Louisiana Commercial Laws, La. R.S. 10:Sec.Sec. 1-101 et seq.;
and references to a “receiver” or words of similar import shall include a keeper
appointed pursuant to La. R.S. 9:Sec.Sec. 5136 et seq.

                   

                  [Signature Page
Follows.]

                   

                   

                  
                    
                      
                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                   

                  IN
WITNESS WHEREOF, the Company has executed this Mortgage as of the date first
written above.

                   

                  IMPORTANT:
READ BEFORE SIGNING.  THE TERMS OF THIS AGREEMENT SHOULD BE READ
CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE.  NO
OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE
LEGALLY ENFORCED.  YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY
ANOTHER WRITTEN AGREEMENT.  THIS NOTICE APPLIES TO ALL AGREEMENTS
ENTERED INTO TO WHICH THE COMPANY AND THE COLLATERAL AGENT ARE
PARTIES.

                   

                             THUS DONE AND PASSED, on the day, month and year first written above, in
the presence of the undersigned Notary and the undersigned competent witnesses,
who hereunto sign their names with Mortgagor after reading of the
whole.

                   

                  

                  
                    
                      
                        
                           

                          |
NY\1547754.7||

                        

                         

                      

                      
                         

                        
                          

                        

                      

                      
                         

                      

                    

                  

                  
WITNESSES:

                   

                  
                    
                      	 	 	 	 	 
	
                              /s/Dustin
      Manternach

                            	 	 	
                               

                            	 
	
                              Printed
      Name:  Dustin Manternach

                            	 	 	
                               

                            	 
	
                               

                            	 	 	
                               

                            	 
	 /s/Kim
      McDermott	 	 	 	 
	Printed
      Name:  Kim McDermott	 	 	 	 

                    

                  

                  
 

                   

                  MORTGAGOR

                   

                  THE OLD EVANGELINE DOWNS, L.L.C.

                  
                    
                      	 	 	 	 	 
	
                              By:/s/Natalie
      Schramm

                            	 	 	
                               

                            	 
	
                              Name: 
      Natalie Schramm

                            	 	 	
                               

                            	 
	
                              Title: 
      Chief Financial Officer

                            	 	 	
                               

                            	 

                    

                  

                   

                   

                  
                    
                      	
                              /s/Karen
      M. Beetem

                            	 	 	 	 
	
                              NOTARY
      PUBLIC

                            	 	 	
                               

                            	 
	
                              Printed
      Name:  Karen M. Beetem

                              Notary/Bar Roll No. 130029

                            	 	 	
                               

                            	 
	
                              My
      Commission Expires:  10/20/10

                            	 	 	
                               

                            	 

                    

                  

                  [Seal]

                   

                   

                  
                    
                      
                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                  

                  EXHIBIT
A

                   

                  

                  
                    
                      
                        
                           

                          |
NY\1547754.7||

                        

                         

                      

                      
                         

                        
                          

                        

                      

                      
                         

                      

                    

                  

                  

                  EXHIBIT
B

                   

                  Legal
Description

                   

                  

                  
                    
                      
                        
                           

                          | NY\1547754.7||

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}]]