Document:

Exhibit 10.1

 

LIMITED LIABILITY COMPANY AGREEMENT

 

OF

 

NASDI, LLC,

 

a Delaware limited liability company

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
   

  
	
  DEFINITIONS; CONSTRUCTION

  	
   

  
	
   

  	
   

  
	
  1.1

  	
  Definitions

  	
  1

  
	
  1.2

  	
  Construction

  	
  8

  
	
  1.3

  	
  Financial Definitions

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
  THE COMPANY

  	
   

  
	
   

  	
   

  
	
  2.1

  	
  Organization

  	
  8

  
	
  2.2

  	
  Company Name

  	
  9

  
	
  2.3

  	
  Purpose

  	
  9

  
	
  2.4

  	
  Powers

  	
  9

  
	
  2.5

  	
  Principal Place of Business

  	
  9

  
	
  2.6

  	
  Term

  	
  9

  
	
  2.7

  	
  Filings; Agent for Service of
  Process

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  
	
  CLASSES OF MEMBERS AND INTERESTS;
  ADDITIONAL FINANCING AND CONTRIBUTIONS

  	
   

  
	
   

  	
   

  
	
  3.1

  	
  Classes of Members and Interests

  	
  10

  
	
  3.2

  	
  Additional Capital or Financing

  	
  10

  
	
  3.3

  	
  Additional Capital Contributions

  	
  10

  
	
  3.4

  	
  Other Matters

  	
  10

  
	
  3.5

  	
  Incurrence of Indebtedness

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  
	
  ALLOCATIONS

  	
   

  
	
   

  	
   

  
	
  4.1

  	
  Profits and Losses

  	
  11

  
	
  4.2

  	
  Special Allocations

  	
  11

  
	
  4.3

  	
  Other Allocation Rules

  	
  12

  
	
  4.4

  	
  Tax Allocations:  Code
  Section 704(c) Allocations

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  
	
  DISTRIBUTIONS

  	
   

  
	
   

  	
   

  
	
  5.1

  	
  Distributions of Available Cash
  Flow

  	
  13

  
	
  5.2

  	
  Tax Distributions

  	
  14

  
	
  5.3

  	
  Withholding

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  
	
  MANAGEMENT POWER, RIGHTS AND DUTIES

  	
   

  
	
   

  	
   

  
	
  6.1

  	
  Management

  	
  14

  

 

i

 

	
  6.2

  	
  Voting or Other Actions by Members

  	
  19

  
	
  6.3

  	
  Transactions with the Company

  	
  19

  
	
  6.4

  	
  Limited Liability

  	
  20

  
	
  6.5

  	
  Indemnification

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  
	
  BOOKS AND RECORDS

  	
   

  
	
   

  	
   

  
	
  7.1

  	
  Books and Records; Inspection by
  Members

  	
  22

  
	
  7.2

  	
  Tax Matters

  	
  23

  
	
  7.3

  	
  Financial Records

  	
  23

  
	
  7.4

  	
  Fiscal Year

  	
  23

  
	
  7.5

  	
  Deposits

  	
  24

  
	
  7.6

  	
  Checks, Drafts, Etc.

  	
  24

  
	
  7.7

  	
  Accountant

  	
  24

  
	
  7.8

  	
  Legal Counsel

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  
	
  TRANSFER OR ASSIGNMENT OF INTERESTS

  	
   

  
	
   

  	
   

  
	
  8.1

  	
  Restrictions on Transfer; Certain
  Representations and Warranties

  	
  24

  
	
  8.2

  	
  Certain Permitted Transfers

  	
  24

  
	
  8.3

  	
  Drag-Along

  	
  25

  
	
  8.4

  	
  Tag Along

  	
  25

  
	
  8.5

  	
  Call Options

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
   

  
	
  RESTRICTION ON THE RIGHT TO
  PURCHASE

  	
   

  
	
   

  	
   

  
	
  9.1

  	
  Restriction on the Right to
  Purchase

  	
  26

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
   

  
	
  DISSOLUTION AND WINDING UP

  	
   

  
	
   

  	
   

  
	
  10.1

  	
  Liquidating Events

  	
  26

  
	
  10.2

  	
  Winding Up

  	
  27

  
	
  10.3

  	
  Gross Asset Value

  	
  27

  
	
  10.4

  	
  Capital Account Deficit Restoration

  	
  27

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
   

  
	
  AMENDMENTS

  	
   

  
	
   

  	
   

  
	
  11.1

  	
  Amendments

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  
	
  12.1

  	
  Notices

  	
  28

  
	
  12.2

  	
  Binding Effect

  	
  28

  
	
  12.3

  	
  Creditors

  	
  28

  
	
  12.4

  	
  Remedies Cumulative

  	
  28

  

 

ii

 

	
  12.5

  	
  Headings

  	
  28

  
	
  12.6

  	
  Severability

  	
  28

  
	
  12.7

  	
  Incorporation by Reference

  	
  29

  
	
  12.8

  	
  Further Action

  	
  29

  
	
  12.9

  	
  Governing Law

  	
  29

  
	
  12.10

  	
  Consent to Jurisdiction

  	
  29

  
	
  12.11

  	
  Waiver of Action for Partition

  	
  29

  
	
  12.12

  	
  Counterpart Execution

  	
  29

  
	
   

  	
   

  	
   

  
	
  SCHEDULE I -

  	
  INTERESTS OF
  MEMBERS

  	
   

  
	
  SCHEDULE II -

  	
  UNANIMOUS
  APPROVAL OF BOARD OF MANAGERS

  	
   

  
	
  EXHIBIT A -

  	
  FORM OF
  SUPPLEMENT

  	
   

  
				

 

iii

 

LIMITED LIABILITY COMPANY AGREEMENT

OF

NASDI, LLC

 

This LIMITED
LIABILITY COMPANY AGREEMENT of NASDI, LLC is entered into this 30th day of
April, 2008, by and among each of the signatories hereto (collectively, the “Initial
Members”), pursuant to the provisions of the Act (as defined below).

 

NOW, THEREFORE,
the Initial Members, in consideration of the premises, covenants and agreements
contained herein (the sufficiency of which consideration each party does hereby
acknowledge), do hereby agree as follows:

 

ARTICLE I

DEFINITIONS; CONSTRUCTION

 

1.1           Definitions.  For purposes of this Agreement, the following
terms shall have the meanings set forth in this Article I (such
meanings to be equally applicable in both the singular and plural forms of the
term defined).

 

“Act” means the Delaware Limited Liability
Company Act (6 Del.C. § 18-101, et seq.), as
amended from time to time (or any corresponding provisions of succeeding law).

 

“Adjusted Capital Account” means, with respect
to any Member, the balance, if any, in such Member’s Capital Account as of the
end of the relevant Company taxable year (or period), after crediting to such
Capital Account any amounts the Member is obligated to restore pursuant to this
Agreement or Regulations Section 1.704-1(b)(2)(ii)(c) or is deemed
obligated to restore pursuant to the penultimate sentences of Regulations Section 1.704-2(g)(1) and
1.704-2(i)(5).

 

“Affiliate” means any (i) corporation,
partnership, trust, limited liability company or other entity controlled by or
under common control with any Member or in which a Member is or may be an
officer, director, shareholder, partner (general or limited), trustee, member,
manager, owner or employee; (ii) officer, director, shareholder, partner
(general or limited), trustee, member, manager, owner or employee of any
corporation, partnerships, trust, limited liability company or other entity
controlled by or under common control with a Member; and (iii) corporation,
partnership, trust, limited liability company or other entity or business in
which a Member has any interest whatsoever.

 

“Agreement” means this Limited Liability
Company Agreement, as amended, restated, supplemented or otherwise modified
from time to time in accordance with the terms hereof.

 

“Applicable Tax Rate” has the meaning set forth
in Section 5.2(a).

 

“Available Cash Flow” means, for any period, an
amount (if positive) equal to: (i) the sum, without duplication, of the
amounts for such period of (a) EBITDA, plus (b) the Working
Capital Adjustment, minus (ii) the sum, without duplication, of the
amounts 

 

 

for
such period of (a) voluntary and scheduled repayments of Indebtedness
(excluding repayments of revolving lines of credit except to the extent the
revolving lines of credit are permanently reduced in connection with such
repayments), (b) Capital Expenditures, except to the extent financed with
the proceeds of Capital Contributions, other financings or asset sales, (c) Interest
Expense to the extent paid in cash, (d) distributions paid to the members
of the Company (including tax distributions) with respect to such period, (e) management
fees paid by the Company to NASDI Holdings or any other Affiliate with respect
to such period, and (f) any reserves reasonably determined by the Board of
Managers for working capital, capital improvements, payments of periodic
expenditures, debt service or other purposes.

 

“Berardi” means Christopher A. Berardi, an
individual residing in the Commonwealth of Massachusetts.

 

“Berardi Manager” has the meaning set forth in Section 6.1.

 

“Board of Managers” has the meaning set forth
in Section 6.1.

 

“Call Events” has the meaning set forth in Section 8.5(a).

 

“Capital Account” means, with respect to any
Member, the Capital Account maintained for such Member in compliance with
Regulations Sections 1.704-1(b) and 1.704-2.  In the event the Board of Managers shall
determine, in good faith with a reasonable basis, that it is prudent to modify
the manner in which the Capital Accounts, or any debits or credits thereto
(including, without limitation, debits or credits relating to liabilities which
are secured by contributed or distributed property or which are assumed by the
Company or the Members) are computed in order to comply with such Regulations,
the Board of Managers may make such modification.  The Board of Managers also shall (i) make
any adjustments that are necessary or appropriate to comply with Regulations Section 1.704-1(b)(2)(iv)(q),
and (ii) make any appropriate modifications in the event unanticipated
events might otherwise cause this Agreement not to comply with Regulations
Sections 1.704-1(b) or 1.704-2.

 

“Capital Contributions” means, with respect to
any Member, at the time of its contribution to the Company, the amount of money
and the initial Gross Asset Value of any Property (other than money), net of
the amount of any debt to which such Property is subject, contributed to the
Company with respect to the Interest in the Company held by such Member, as set
forth on Schedule I.  The
principal amount of a promissory note which is not readily tradable on an
established securities market and which is contributed to the Company by the
maker of the note will not be included in the Capital Account of any Person
until the Company makes a taxable disposition of the note or until (and to the
extent) such Member makes principal payments on the note, all in accordance
with Regulations Section 1.704-1(b)(2)(iv)(d)(2).

 

“Capital Expenditures” means, for any period,
the aggregate of all expenditures of the Company during such period that, in
accordance with GAAP, are included in “purchase of property and equipment” or
similar items reflected in the statement of cash 

 

2

 

flows
of the Company.

 

“Cause” has the meaning set forth in the
Employment Agreement.

 

“Certificate” means the Certificate of
Formation of the Company filed with the Secretary of State of the State of
Delaware in accordance with the Act, as such Certificate may be amended,
restated, supplemented or otherwise modified from time to time in accordance
with the Act.

 

“Change of Control” has the meaning set forth
in the Great Lakes Indenture.

 

“Class A Interest” means an Interest in
the Company designated as a Class A Interest.

 

“Class A Liquidation Preference Amount”
means $28 million.

 

“Class A Managers” has the meaning set
forth in Section 6.1.

 

“Class A Member” means a Member holding a Class A
Interest.

 

“Class A Percentage Interest” means, with
respect to a Class A Member, the percentage set forth opposite such Class A
Member’s name on Schedule I under the heading “Class A Percentage
Interest”.

 

“Class B Interest” means an Interest in
the Company designated as a Class B Interest.

 

“Class B Member” means a Member holding a Class B
Interest.

 

“Class B Percentage Interest” means, with
respect to a Class B Member, the percentage set forth opposite such Class B
Member’s name on Schedule I under the heading “Class B Percentage
Interest”.

 

“Code” means the Internal Revenue Code of 1986,
as amended from time to time (or any corresponding provisions of succeeding
law).

 

“Company” means the limited liability company
formed upon the filing of the Certificate pursuant to the Act and governed by
this Agreement and the Person continuing the business of this company in the
event of dissolution as herein provided.

 

“Current Assets” means, as at any date of
determination, the total assets of the Company that may properly be classified
as current assets in conformity with GAAP, excluding cash and cash equivalents.

 

“Current Liabilities” means, as at any date of
determination, the total liabilities of the Company that may properly be
classified as current liabilities in conformity with GAAP, excluding the
current portion of long term debt.

 

3

 

“EBITDA” means, for any period, an amount
determined for the Company equal to the sum, without duplication, of the
amounts for such period of (i) Net Income, plus (ii) to the
extent reducing Net Income, (a)  Interest Expense, (b) total
depreciation expense, (c) total amortization expense, and (d) other
non-cash items, in each case in this clause (ii)(d), excluding any such
non-cash item to the extent that it represents an accrual or reserve for
potential cash items in any future period or amortization of a prepaid cash
item that was paid in a prior period, minus (iii) non-cash items
increasing Net Income for such period, in
each case in this clause (iii), excluding any such non-cash item to the
extent it represents the reversal of an accrual or reserve for potential cash
item in any prior period.

 

“Employment Agreement” means that certain
Employment Agreement dated as of April 30, 2008 by and between Berardi and
NASDI Holdings, as the same may be amended, restated, supplemented or otherwise
modified from time to time.

 

“Family” means, with respect to a Member, (a) a
spouse, ancestor or descendant of such Member, or (b) a spouse of an
ancestor or descendant of such Member, or (c) a trustee of a trust solely
for the benefit of, or a custodian under the Uniform Gifts to Minors Act for,
one or more of the foregoing and/or such Member.

 

“GAAP” means United States generally accepted
accounting principles, consistently applied.

 

“GLD Corporation” means Great Lakes Dredge &
Dock Corporation, a Delaware corporation.

 

“Great Lakes Bonding Agreement” means that
certain Third Amended and Restated Underwriting and Continuing Indemnity
Agreement dated as of December 22, 2003 by and among GLD Corporation,
certain of its subsidiaries from time to time party thereto, Travelers Casualty
and Surety Company and Travelers Casualty and Surety Company of America, as the same may be amended, restated,
replaced, refinanced, supplemented or otherwise modified from time to time.

 

“Great Lakes Credit Agreement” means that
certain Credit Agreement dated as of June 12, 2007 by and among GLD
Corporation, the other Loan Parties from time to time party thereto, the
financial institutions from time to time party thereto as Lenders and LaSalle
Bank National Association, as Swing Line Lender, Issuing Lender and
Administrative Agent, as the same may be amended, restated, replaced,
refinanced, supplemented or otherwise modified from time to time.

 

“Great Lakes Indenture” means that certain
Indenture dated as of December 22, 2003 by and among GLD Corporation, the
Subsidiary Guarantors from time to time party thereto and BNY Midwest Trust
Company, as trustee, as the same may be amended, restated, replaced, refinanced,
supplemented or otherwise modified from time to time.

 

“Gross Asset Value” means, for any asset, such
asset’s adjusted basis for federal income tax purposes, as adjusted from time
to time to reflect the adjustments that are 

 

4

 

 

required
or permitted by, or are consistent with, Regulations Section 1.704-1(b)(2)(iv)(d) –
(g), (j) – (n) and (p) – (r); provided, however,
that:

 

(a)           the initial fair market value of any
asset contributed by a Member to the Company shall be as agreed to by the
contributing Member and the Board of Managers; and

 

(b)           the adjustments permitted pursuant to
an event described in Regulations Section 1.704-1(b)(2)(iv)(f)(5) (excluding
the liquidation of the Company described therein) shall be made only if the
Board of Managers reasonably determines that such adjustments are necessary or
appropriate to reflect the relative economic interests of the Members in the
Company.

 

“Indebtedness” means all indebtedness for money
borrowed and other liabilities that would be required to be reflected as
indebtedness on a balance sheet prepared in accordance with GAAP.

 

“Interest” means a Member’s limited liability
company interest in the Company (whether such Member has a Class A
Interest or a Class B Interest), including any and all benefits to which
the holder of such Interest may be entitled as provided in this Agreement,
together with all obligations of such Member to comply with the terms and
provisions of this Agreement.

 

“Interest Expense” means, for any period, total
interest expense (including that portion attributable to capital leases in
accordance with GAAP and capitalized interest) of the Company with respect to
all outstanding Indebtedness of the Company, including all commissions, discounts
and other fees and charges owed with respect to letters of credit and net costs
under hedging obligations.

 

“Liquidating Events” has the meaning set forth
in Section 10.1.

 

“Management Agreement” means that certain
Management Agreement dated as of April 30, 2008 by and between NASDI
Holdings and the Company, as the same may be amended, restated, supplemented,
replaced or otherwise modified from time to time.

 

“Members” mean, initially, each of the Initial
Members and thereafter any Person that holds an Interest in the Company,
whether as an Initial Member (whether such Member is a Class A Member or a
Class B Member) or a Permitted Transferee hereunder; each of the Members
is a “Member”.

 

“NASDI Holdings” means NASDI Holdings
Corporation, a Delaware corporation.

 

“Net Income” means, for any period, the net
income (or loss) of the Company for such period taken as a single accounting
period determined in conformity with GAAP; provided, however,
that net income (or loss) shall exclude any gains or losses attributable to
asset sales and non-cash extraordinary gains or losses.

 

5

 

“Net Taxable Income” has the meaning set forth
in Section 5.2(a).

 

“Nonrecourse Deductions” has the same meaning
as set forth in Regulations Section 1.704-2(b).  The amount of Nonrecourse Deductions for any
Company taxable year equals the excess, if any, of the net increase, if any, in
the amount of Partnership Minimum Gain attributable to Nonrecourse Liabilities
during such Company taxable year over the aggregate amount of any distributions
during such Company taxable year of proceeds of a Nonrecourse Liability that
are allocable to an increase in Partnership Minimum Gain attributable to
Nonrecourse Liabilities, determined according to the provisions of Regulations Section 1.704-2(c).

 

“Nonrecourse Liability” has the same meaning
given such term in Regulations Section 1.704-2(b)(3).

 

“Officers” has the meaning set forth in Section 6.1(d).

 

“Partner Minimum Gain” has the same meaning as “partner
nonrecourse debt minimum gain” set forth in Regulations Section 1.704-2(i)(2),
and shall be computed as provided in Regulations Section 1.704-2(i)(3).

 

“Partner Nonrecourse Debt” has the same meaning
given such term in Regulations Section 1.704-2(b)(4).

 

“Partner Nonrecourse Deductions” has the same
meaning given such term in Regulations Section 1.704-2(i).  The amount of Partner Nonrecourse Deductions
with respect to a Partner Nonrecourse Debt for any Company taxable year equals
the excess, if any, of the net increase, if any, in the amount of Partner
Minimum Gain attributable to such Partner Nonrecourse Debt during such Company
taxable year over the aggregate amount of any distributions during such Company
taxable year to the Member that bears the economic risk of loss for such
Partner Nonrecourse Debt to the extent such distributions are from the proceeds
of such Partner Nonrecourse Debt and are allocable to an increase in Partner
Minimum Gain attributable to such Partner Nonrecourse Debt determined in
accordance with Regulations Section 1.704-2(i).

 

“Partnership Minimum Gain” shall have the same
meaning given such term in Regulations Section 1.704-2(b)(2), and shall be
computed as provided in Regulations Section 1.704-2(d).

 

“Permitted Transferee” has the meaning set
forth in Section 8.2.

 

“Person” means any individual, general
partnership, limited partnership, corporation, trust, limited liability company
or other association or entity.

 

“Profits” and “Losses” and reference to
any item of income, gain, loss or deduction thereof mean, for each Company
taxable year, an amount equal to the Company’s taxable income or loss for such
Company taxable year, determined in accordance with Code Section 703(a) (but
including in taxable income or loss, for this purpose, all items of income,
gain, loss or deduction required to be stated separately 

 

6

 

pursuant
to Code Section 702(a)), with the following adjustments:

 

(a)           any income of the Company exempt from
federal income tax and not otherwise taken into account in computing Profits or
Losses pursuant to this definition shall be added to such taxable income or
loss;

 

(b)           any expenditures of the Company
described in Code Section 705(a)(2)(B) (or treated as expenditures described
in Code Section 705(a)(2)(B) pursuant to Regulations Section 1.704-1(b)(2)(iv)(i))
and not otherwise taken into account in computing Profits or Losses pursuant to
this definition shall be subtracted from such taxable income or loss;

 

(c)           in the event the Gross Asset Value of
any Company asset is adjusted in accordance with the definition of “Gross Asset
Value” above, the amount of such adjustment shall be taken into account as an
item of income, gain, loss or deduction from the disposition of such asset for
purposes of computing Profits or Losses; and

 

(d)           notwithstanding any other provision
of this definition of “Profits” and “Losses,” any items which are specially
allocated pursuant to Section 4.2 will not be taken into account.

 

“Property” means all real and personal property
acquired and held by, or contributed to, the Company and any improvements
thereto and shall include both tangible and intangible property.

 

“Regulations” means the final or temporary
regulations promulgated under the Code, as such regulations may be amended from
time to time (including corresponding provisions of succeeding regulations).

 

“Sale Transaction” means (i) a sale of an
Interest; (ii) a sale of all or a material portion of the business and
assets of the Company and its Subsidiaries; or (iii) a merger,
consolidation, reorganization or similar transaction pursuant to which a Third
Party acquires control of the Company or its business.

 

“SEC” means the Securities and Exchange
Commission or any successor federal government agency or agencies with similar
regulatory and enforcement authority.

 

“Service” means the Internal Revenue Service of
the United States of America or any successor federal government agency or
agencies with similar regulatory and enforcement authority.

 

“Subsidiary” means any entity with respect to
which a specified Person (or a Subsidiary thereof) owns a majority of the
common stock or has the power to vote or direct the voting of sufficient
securities to elect a majority of the managers or directors of such entity.

 

“Supplement” means a Supplement to this
Agreement in the form of Exhibit A  

 

7

 

attached
hereto and made a part hereof.

 

“Tax Matters Partner” has the meaning set forth
in Section 7.2(b).

 

“Third Party” means any bona fide, non-related,
non-affiliated third-party offeror.

 

“Transfer” means, as a noun, any voluntary or
involuntary transfer, sale, pledge, hypothecation or other disposition or
encumbrance and, as a verb, voluntarily or involuntarily to transfer, sell,
pledge, hypothecate or otherwise dispose of or encumber.

 

“Transferee” means any Person who has acquired
a beneficial interest in the Interest of a Member of the Company.

 

“Transferor” means any Member who has
Transferred or who is Transferring all or any part or interest in its Interest.

 

“Working Capital” means, as at any date of
determination, the excess of Current Assets over Current Liabilities.

 

“Working Capital Adjustment” means, for any
period, the amount (which may be a negative number) of the following, without
duplication, (i) Working Capital as of the beginning of such period, minus
(ii) Working Capital as of the end of such period.

 

1.2                                 Construction.  Every covenant, term and provision of this
Agreement shall be construed according to its fair meaning and not for or
against any Member.  Whenever the context
requires, the gender of all words used in this Agreement includes the
masculine, feminine and neuter, and the singular includes the plural and
vice-versa.  All references to Articles
and Sections refer to articles and sections of this Agreement, and all
references to Schedules are to schedules attached to this Agreement, each of
which is made a part of this Agreement for all purposes.  The term “including” means “including,
without limitation.”  Any accounting term
not otherwise defined has the meaning assigned to it in accordance with
GAAP.  For the purpose of this Agreement,
any definition incorporating, by reference to the Code or the Regulations, the
term “partner” or “partnership” shall mean “Member” or “Company”,
respectively.  Words such as “herein,” “hereinafter,”
“hereof,” and “hereunder” refer to this Agreement as a whole, unless the
context otherwise requires.

 

1.3                                 Financial
Definitions.  Except as otherwise
expressly provided herein, all financial definitions (including, without
limitation, the definitions of “EBITDA,” “Available Cash Flow,” “Capital
Expenditures,” “Current Assets,” “Current Liabilities,” “Interest Expense,” “Net
Income” and “Working Capital”) shall be determined solely with respect to the
Company in accordance with GAAP, but shall not be determined on a consolidated
basis.

 

ARTICLE II

THE COMPANY

 

2.1                                 Organization.  The Initial Members hereby agree to form a
limited liability company pursuant to the provisions of the Act and upon the
terms and conditions set forth in this Agreement.  Each of the Initial Members shall be deemed
admitted as a member of the Company 

 

8

 

upon such Member’s
execution of this Agreement.

 

2.2                                 Company
Name.  The name of the limited
liability company formed hereby shall initially be “NASDI, LLC”.  All business of the Company shall be
conducted in such name or such other name as the Board of Managers may, from
time to time, determine.  The Company
shall hold all of its property in the name of the Company and not in the name
of any Manager, Officer or Member.

 

2.3                                 Purpose.  The purpose and business of the Company shall
be to conduct and transact any and all lawful business for which limited
liability companies may be organized under the Act.

 

2.4                                 Powers.  The Company shall possess and may exercise
all the powers and privileges granted by the Act, all other applicable law or
by this Agreement, together with any powers incidental thereto, so far as such
powers and privileges are necessary or convenient to the conduct, promotion and
attainment of the business, purposes or activities of the Company.

 

2.5                                 Principal
Place of Business.  The principal
place of business of the Company shall be 2122 York Road, Oak Brook, IL 60523,
or such other location as may be agreed by the Board of Managers from time to
time.

 

2.6                                 Term.  The term of the Company shall be perpetual
unless and until the Company is dissolved pursuant to the Act or as set forth
herein.  The existence of the Company as
a separate legal entity shall continue until cancellation of the Certificate in
the manner required by the Act.

 

2.7                                 Filings;
Agent for Service of Process.

 

(a)           The Certificate has been filed in the
office of the Secretary of State of the State of Delaware in accordance with
the provisions of the Act.  The Officers
shall take any and all other actions reasonably necessary to perfect and
maintain the status of the Company under the laws of the State of
Delaware.  The Board of Managers shall
cause amendments to the Certificate to be filed whenever required by the
Act.  Such amendments shall be executed
by any Officer.

 

(b)           The Members hereby ratify and adopt
the Certificate filed with the Secretary of State of the State of Delaware and
all actions taken by Timothy D. Kincaid in connection with the preparation and
filing of the Certificate.  Any Officer
may execute and file such forms or certificates and may take any and all other actions
as may be reasonably necessary to perfect and maintain the status of the
Company under the laws of any other states or jurisdictions in which the
Company engages in business.

 

(c)           The registered agent for service of
process on the Company in the State of Delaware, and the address of such agent,
shall initially be The Corporation Trust Company, 1209 Orange Street,
Wilmington, Delaware 19801. The Members may change the registered agent and
appoint successor registered agents.

 

(d)           Upon the dissolution of the Company,
but subject to the election by the

 

9

 

remaining Class A
Members to continue the business of the Company pursuant to Section 10.1,
the Managers (or, in the event there are no Managers, the Person responsible
for the winding up and dissolution of the Company pursuant to Article X
hereof), shall execute and cause to be filed articles of dissolution in
accordance with the Act and the laws of any other states or jurisdictions in
which the Company has registered to transact business or otherwise filed
articles.

 

ARTICLE III

CLASSES OF MEMBERS AND INTERESTS;

ADDITIONAL FINANCING AND CONTRIBUTIONS

 

3.1           Classes of Members and Interests.  The Company shall issue two (2) types of
ownership interests:  Class A
Interests and Class B Interests, each with such rights, preferences and
obligations as set forth in this Agreement. 
The name, address, taxpayer identification number, Capital Contributions
and Class A Percentage Interest or Class B Percentage Interest, as
applicable, of the Members are set forth on Schedule I hereto.  The Members shall update Schedule I
from time to time to reflect any changes to the information set forth therein.

 

3.2           Additional Capital or Financing.  The sums of money required to finance the
business and affairs of the Company shall be derived from the Capital
Contributions, from funds generated from the operation and the business of the
Company and from Indebtedness.

 

3.3           Additional Capital Contributions.  No additional Capital Contributions shall be
permitted or required by any Member.

 

3.4           Other Matters.

 

(a)           Except as otherwise provided in this
Agreement, no Member shall demand or receive a return of its Capital
Contributions from the Company without the consent of the Board of
Managers.  Under circumstances requiring
a return of any Capital Contributions, no Member shall have the right to
receive property other than cash.

 

(b)           No Member shall receive any interest,
salary or drawing with respect to such Member’s Capital Contributions or its
Capital Account or for services rendered on behalf of the Company or otherwise
in its capacity as a Member, except as otherwise provided in this Agreement.

 

3.5           Incurrence of Indebtedness.

 

(a)           The Board of Managers has heretofore
approved the Company entering into (i) guaranties of the Great Lakes
Credit Agreement and the Great Lakes Indenture, and (ii) the Great Lakes
Bonding Agreement as an “Indemnitor” thereunder.

 

(b)           The incurrence of any Indebtedness by
the Company shall require the approval of the members of the Board of Managers;
provided, however, that the incurrence of Indebtedness of the
Company in an aggregate amount in excess of $500,000 outstanding at any time
shall require the approval of all the members of the Board of Managers.

 

(c)           Notwithstanding Section 6.3,
in the event that GLD Corporation or any 

 

10

 

other Affiliate of GLD
Corporation lends money to the Company for any purpose, the terms of such
Indebtedness shall be approved by the Board of Managers, provided that
the following terms shall apply: (i) such Indebtedness shall accrue
interest at a per annum rate of not less than the sum of (A) the interest
rate in effect from time to time that is the “Base Rate” as defined in the
Great Lakes Credit Agreement (or any comparable definition), such rate changing
as and when the Base Rate changes under the Great Lakes Credit Agreement, plus
(B) one percent (1%); and (ii) interest shall be payable quarterly in
cash.

 

ARTICLE IV

ALLOCATIONS

 

4.1           Profits and Losses.  Subject to, and after application of, the
allocations rules in Section 4.2 and 4.3 hereof,
Profits and Losses shall be allocated among the Members for each Company
taxable year so as to produce, as nearly as possible, an Adjusted Capital
Account balance for each Member (determined without taking into account
distributions for such year) equal to (a) the Available Cash Flow and
Gross Asset Value of property actually distributed to the Member within such
Company taxable year, plus (b) the hypothetical Available Free Cash Flow
that would be distributed to such Member pursuant to Section 5.1(a) (or
pursuant to Section 10.2 hereof upon liquidation of the Company) if
each Company asset were sold for an amount equal to the sum of (i) the
Gross Asset Values of the assets at the end of such year, plus (ii) the
aggregate Partnership Minimum Gain and Partner Minimum Gain at the end of such
year, and the Company paid all its remaining liabilities, and such hypothetical
Available Free Cash Flow from such deemed sale were immediately distributed.

 

4.2           Special Allocations.

 

(a)           Partner Nonrecourse Deductions shall
be allocated in the manner provided under Regulations Section 1.704-2(i).

 

(b)           Nonrecourse Deductions shall be
allocated to the Class B Members, pro rata, in accordance with their Class B
Percentage Interests.

 

(c)           The Company shall make special
allocations of items of income, gain, loss and deductions (as determined under
the Regulations under Code Section 704) to comply with (i) the
Partnership Minimum Gain provisions of Regulations Section 1.704-2(f); (ii) the
Partner Minimum Gain provisions of Regulations Section 1.704-2(i); and (iii) the
“qualified income offset” provisions of Regulations Section 1.704-1(b)(2)(ii)(d).

 

(d)           The allocations set forth in this Section 4.2
are intended to comply with the certain requirements of the Regulations under
Code Section 704.  If NASDI Holdings
determines that the allocations under this Agreement do not comply with the
Code or the Regulations, this Section 4.2 shall be interpreted to
allow the Company to make allocations in accordance with the Code and the
Regulations.  Notwithstanding the other
provisions of this Agreement, to the extent possible, allocations under this Section 4.2
shall be such that after such allocations each Member’s Capital Account
(determined after taking into account allocations that are expected to be made
under this Section 4.2 in future years such as the chargeback
provisions set forth in Section 4.2(c)(i) and (ii)) shall
equal the Capital Account that the Member would 

 

11

 

have if no special
allocations been made under this Section 4.2.

 

4.3           Other Allocation Rules.

 

(a)           In the event Members are admitted to
the Company pursuant to this Agreement on different dates, the Company items of
income, gain, loss, deduction and credit allocated to the Members for each
Company taxable year during which Members are so admitted shall be allocated
among the Members using any convention permitted by Code Section 706 and
selected by NASDI Holdings.

 

(b)           In the event a Member Transfers its
Interest during a Company taxable year, the allocation of Company items of
income, gain, loss, deduction and credit allocated to such Member and its
Transferee for such Company taxable year shall be made between such Member and
its Transferee in accordance with Code Section 706 using any convention
permitted by Code Section 706 and selected by NASDI Holdings.

 

(c)           For purposes of Regulations Section 1.752-3(a)(3),
the Members agree that excess “excess Nonrecourse Liabilities” shall be
allocated pursuant to any method permitted under Regulations Section 1.752-3(a)(3) as
selected by NASDI Holdings.

 

(d)           To the extent permitted by
Regulations Sections 1.704-2(h)(3) and 1.704-2(i)(6), the Members shall
endeavor to treat distributions of Available Cash Flow as having been made from
the proceeds of a Nonrecourse Liability or a Partner Nonrecourse Debt only to
the extent that such distribution would not cause or increase an Adjusted
Capital Account deficit for any Member.

 

4.4           Tax Allocations:  Code Section 704(c) Allocations.

 

(a)           Except as otherwise provided in this Section 4.4,
all items of Company income, gain, loss, deduction and credit shall for federal
and applicable state and local income tax purposes be allocated among the
Members in the same manner as they share correlative Profits, Losses or Company
items of income, gain, loss or deduction, as the case may be, for the Company
taxable year. Allocations pursuant to this Section 4.4 are solely
for purposes of federal, state and local taxes and shall not affect, or in any
way be taken into account in computing, any Member’s Capital Account or share
of Profits, Losses or other items or distributions pursuant to any provision of
this Agreement.

 

(b)           In accordance with Code Section 704(c) and
the Regulations thereunder, but solely for income tax purposes, income, gain,
loss and deduction with respect to any property contributed to the capital of
the Company (including income, gain, loss and deduction determined with respect
to the alternative minimum tax) shall be allocated among the Members so as to
take account of any variation between the adjusted basis of such property to
the Company for federal income tax purposes (including such adjusted basis for
alternative minimum tax purposes) and its initial Gross Asset Value, including,
but not limited to, special allocations to a contributing Member that are
required under Code Section 704(c) to be made upon distribution of
such property to any of the non-contributing Members.  Further, in the event the Gross Asset Value
of any Company asset is adjusted pursuant to paragraph (b) of the
definition of “Gross Asset Value” contained herein, such that “reverse section
704(c) 

 

12

 

allocations” are required
under Regulations Section 1.704-3(a)(6), then solely for federal income
tax purposes, subsequent allocations of income, gain, loss and deduction with
respect to such asset (including income, gain, loss and deduction determined
with respect to the alternative minimum tax) shall take account of any
variation between the adjusted basis of such asset (including such adjusted
basis for alternative minimum tax purposes) and its Gross Asset Value in the
same manner as under Code Section 704(c) and the Regulations
thereunder.

 

(c)           Any other elections or other
decisions relating to allocations under this Section 4.4 shall be
made by NASDI Holdings in any manner that reasonably reflects the purpose and
intention of this Agreement; provided, however, unless NASDI
Holdings otherwise selects another method, the Company shall utilize the “traditional
method” (without currative allocations) for purposes of the allocation method
under Regulations Section 1.704.3.

 

ARTICLE V

DISTRIBUTIONS

 

5.1           Distributions of Available Cash
Flow.

 

(a)           Except as otherwise provided in Article X,
to the extent the Company has Available Cash Flow (other than from a Sale
Transaction) for any calendar year as determined by the Board of Managers in
accordance with the definition of Available Cash Flow contained herein, the
Company shall distribute Available Cash Flow to the Class B Members in
accordance with their Class B Percentage Interests not later than March 31st
following the end of such calendar year.

 

(b)           Except as otherwise provided in Article X,
to the extent the Company has Available Cash Flow from a Sale Transaction, as
determined by the Board of Managers, the Company shall distribute the Available
Cash Flow as follows:

 

(i)            first, to the Class A
Members, pro rata in accordance with the Class A Percentage Interest,
until the Class A Members have been distributed an aggregate amount under
this Section 5.1(b)(i) equal to the Class A Liquidation
Preference Amount;  and

 

(ii)           the balance, to the Class B
Members, pro rata in accordance with their Class B Percentage Interest.

 

(c)           Notwithstanding Section 5.1(a),
to the extent that a Member would be distributed, pursuant to such Section during
any fiscal year, an amount in excess of the maximum amount which could be
distributed to such Member without causing the Member otherwise to recognize
gain under Code Section 731(a), then such distribution shall be, to the
extent possible, an advance or draw (as described in Regulations Section 1.731-1(a)(1)(ii))
against such Member’s allocations of Profits and items of income and gain for
the Company taxable year in which such distribution is made.

 

(d)           Immediately prior to any Sale
Transaction, the Company shall distribute all Available Cash Flow (determined
before giving effect to such Sale Transaction) in accordance with Section 5.1(a).

 

13

 

5.2           Tax Distributions.

 

(a)           Notwithstanding Section 5.1,
the Company shall distribute on April 1, June 1, September 1,
and December 1 of each year an amount equal to one quarter of the current
calendar year Member Tax Distribution. 
Each Member’s Member Tax Distribution shall equal the Applicable Tax
Rate multiplied by the Net Taxable Income for the calendar year.  Subject to Section 5.2(b), the “Applicable
Tax Rate” for any taxable year shall be forty percent (40%).  The “Net Taxable Income” of a Member
for a taxable year shall be the taxable income of the Company allocated to such
Member (excluding any Code Section 704(c) items in respect of
contributed property) for such year (after being reduced by the amount by which
taxable losses allocated to such Member under this Agreement for prior taxable
years exceeds taxable income allocated to such Member under this Agreement in
prior years).  Amounts distributed under
this Section 5.2 shall constitute advances on amounts otherwise
distributable under Section 5.1(a). 
No distributions will be required under this Section 5.2
with respect to items of income or gain resulting from a Sale Transaction.

 

(b)           If the method for making estimated
tax payments changes for federal income tax purposes, then NASDI Holdings may
revise the timing of distributions under Section 5.2(b) to
reflect such changes.  If NASDI Holdings
determines in good faith that the highest effective combined federal, state,
and local income tax rate for any calendar year applicable to the Members is
higher or lower than forty percent (40%), then the Applicable Tax Rate shall be
adjusted for such calendar year to reflect such highest effective combined
rate; provided, however, the Applicable Tax Rate for each
calendar year shall be the same for each Member.

 

5.3           Withholding.  If the Company is required by applicable law
to pay any tax that is attributable to a Member (or a status of a Member),
including, without limitation, federal or state withholding taxes, state
personal property taxes, and state unincorporated business taxes, then such
Member shall indemnify and reimburse to the Company an amount equal to such tax
(including, without limitation, any interest or penalties associated with such
tax).  The Company may offset
distributions to any Member that such Member is entitled to under this
Agreement against such Member’s obligation under this Section 5.3.  A Member’s obligation to indemnify and
reimburse the Company shall survive the Member selling or disposing of its
Interests in the Company and the termination, dissolution, liquidation, or
winding up of the Company.

 

ARTICLE VI

MANAGEMENT POWER, RIGHTS AND DUTIES

 

6.1           Management.

 

(a)           Board of
Managers.

 

(i)            The Company will be
exclusively and completely managed by, and the powers of the Company shall be
exercised by or under the authority of, a management board comprised of three (3) members
(the “Board of Managers”).  The Class A
Members shall be entitled to appoint not less than two (2) members of the
Board of Managers (the “Class A Managers”), and, so long as Berardi
or a Permitted Transferee of Berardi continues to be a Class B Member,
such Class B Member shall have the absolute 

 

14

 

right to appoint one member of the Board of Managers
(the “Berardi Manager”); provided, however, that the
Berardi Manager shall, if other than Berardi, be reasonably acceptable to the Class A
Members.  In the event that Berardi or a
Permitted Transferee of Berardi is no longer a Class B Member, then the Class A
Members shall be entitled to appoint all three (3) members of the Board of
Managers.  The number of members of the
Board of Managers (each, a “Manager”) may be changed from time to time
by vote of the Board of Managers.  Unless
otherwise determined by the Board of Managers, the Managers will not be
compensated for serving on the Board of Managers; provided, however,
the Board of Managers may approve reimbursement for the actual reasonable
expenses incurred by a Manager in performing such duties.

 

(ii)           Members of the Board of Managers
shall initially consist of Douglas B. Mackie and Deborah A. Wensel (the Class A
Managers) and Berardi (the Berardi Manager). 
Except as otherwise set forth herein, each Manager will continue to
serve as a Manager until such Manager’s death, resignation, or removal.

 

(iii)          The Class A Managers may only be
removed by vote of the Class A Members. 
The Berardi Manager may only be removed by vote of Berardi (or a
Permitted Transferee thereof) (so long as Berardi or a Permitted Transferee of
Berardi continues to be a Class B Member). 
In the event that Berardi or a Permitted Transferee of Berardi is no
longer a Class B Member, then the Berardi Manager may be removed by the Class A
Members.

 

(iv)          A Manager may resign by providing
written notice to the Board of Managers. 
The resignation takes effect when received by the Board of
Managers.  Any vacancy occurring in the
Board of Managers, including vacancies resulting from an increase in size of
the Board of Managers, or upon the death, resignation or removal of a Manager,
shall be filled by the Class A Member; provided, however,
that any vacancy resulting upon the death, resignation or removal of a Berardi
Manager shall be filled by Berardi or a member of his Family, so long as
Berardi (or a Permitted Transferee thereof) continues to be a Class B
Member.

 

(b)           General Powers.  Except as otherwise provided herein, the
Board of Managers, acting as a group, has the sole authority to manage and control
the business, affairs and properties of the Company and is authorized to make
any contracts, enter into any transactions, and make and obtain any commitments
on behalf of the Company to conduct or further the Company’s business.  Upon approval of the Board of Managers, each
Manager and any officer appointed pursuant to Section 6.1(d) is
authorized to act for the Company to effectuate any action so approved.

 

(c)           Meetings of the Board of Managers.

 

(i)            The Board of Managers of the Company
may hold meetings, both regular and special, either within or without the State
of Delaware.  Managers may participate in
such meetings in person or by teleconference.

 

(ii)           Regular meetings of the Board of
Managers shall be held quarterly 

 

15

 

without notice at such time and at such place as shall
from time to time be determined by the Board of Managers.

 

(iii)          Special meetings of the Board of
Managers may be called by a majority of the Managers on twenty-four (24) hours’
notice to each Manager, either personally or by mail, facsimile or confirmed
e-mail, specifying the time, date and purpose of such special meeting.

 

(iv)          Minutes of each meeting of the Board
of Managers shall be recorded and maintained along with a record of votes taken
at each such meeting.

 

(v)           Each Manager shall have one (1) vote
in all decisions of the Board of Managers. 
Except for the matters set forth on Schedule II attached hereto
which shall require the unanimous approval of the members of the Board of
Managers and unless a greater number is otherwise required by law, the
Certificate or this Agreement, action by the Board of Managers requires either (1) a
resolution approved by the affirmative vote of at least a majority of the
Managers present at a meeting of the Board of Managers with a quorum present
(being at least a majority of the Managers then serving on the Board of
Managers), or (2) a written action, signed by at least that number of
Managers necessary to adopt a resolution at a properly called meeting attended
by all the Managers entitled to vote on the matter.

 

(d)           Officers.

 

(i)            The Board of Managers may appoint
officers of the Company in its sole discretion, which officers shall include a
President, a Chief Executive Officer, a Chief Financial Officer, one or more
Vice Presidents (the number thereof to be determined by the Board of Managers),
a Treasurer, a Secretary, and such other officers including one or more
Assistant Treasurers and Assistant Secretaries as the Board of Managers may
determine (collectively, the “Officers”).  The Members agree to cause the Board of
Managers to nominate and elect the following individuals as Officers of the
Company from the date of this Agreement until their successors are chosen and
qualified; and all officers of the Company shall hold office until their
earlier death, resignation or removal:

 

	
  President and Chief Executive Officer

  	
   

  	
  Douglas B. Mackie

  
	
  Vice President and Treasurer

  	
   

  	
  Deborah A. Wensel

  
	
  Vice President

  	
   

  	
  Timothy Higgins

  
	
  Vice President

  	
   

  	
  George Lemelman

  
	
  Secretary

  	
   

  	
  Luis A. Rivera

  
	
  Assistant Secretary

  	
   

  	
  Ellen Parker Burke

  

 

(ii)           The Board of Managers may choose such
other officers and agents as it shall deem necessary who shall hold their
offices for such terms and shall exercise such powers and perform such duties
as shall be determined from time to time by the 

 

16

 

Board of Managers; and all officers of the Company
shall hold office until their successors are chosen and qualified or until
their earlier death, resignation or removal. 
Any Officer may resign at any time upon written notice to the Company
directed to the Board of Managers and the Secretary.  Such resignation shall take effect at the
time specified therein, and unless otherwise specified therein no acceptance of
such resignation shall be necessary to make it effective.  The Board of Managers may remove any Officer
or agent with or without cause at any time by the affirmative vote of a
majority of the Board of Managers.  Any
such removal shall be without prejudice to the contractual rights of such
Officer or agent, if any, with the Company, but the election of an Officer or
agent shall not of itself create any contractual rights.  Any vacancy occurring in any office of the
Company by death, resignation, removal or otherwise may be filled by the Board
of Managers.  The salaries or other
compensation, if any, of the Officers and agents of the Company shall be fixed
from time to time by the Board of Managers.

 

(iii)          President.  The President shall preside at all meetings
of the Board of Managers at which he or she is present, subject to the powers
of the Board of Managers.  The President
shall execute bonds, mortgages and other contracts, except where required or
permitted by law to be otherwise signed and executed and except where the
signing and execution thereof shall be expressly delegated by the Board of
Managers to some other officer or agent of the Company.  The President shall have such other powers
and perform such other duties as may be prescribed by the Board of Managers or
as may be provided in this Agreement.

 

(iv)          Chief Executive Officer.  The Chief Executive Officer shall be the
principal executive officer of the Company; shall, in the absence of the
President, preside at all meetings of the Board of Managers at which he or she
is present; subject to the powers of the Board of Managers and the President,
shall have general charge of the business, affairs and property of the Company,
and control over its officers, agents and employees; and shall see that all
orders and resolutions of the Board of Managers are carried into effect.  The Chief Executive Officer shall execute
bonds, mortgages and other contracts, except where required or permitted by law
to be otherwise signed and executed and except where the signing and execution
thereof shall be expressly delegated by the Board of Managers to some other
officer or agent of the Company.  The
Chief Executive Officer shall have such other powers and perform such other
duties as may be prescribed by the Board of Managers, the President or as may
be provided in this Agreement.

 

(v)           Chief Financial Officer.  The Chief Financial Officer of the Company
shall, under the direction of the Board of Managers and the President, be
responsible for all financial and accounting matters and for the direction of
the offices of Treasurer and Controller. 
The Chief Financial Officer shall have such other powers and perform
such other duties as may be prescribed by the President or the Board of
Managers or as may be provided by this Agreement.

 

(vi)          Vice Presidents.  Any Vice President in the order determined by
the Board of Managers or by the President shall, in the absence or disability
of the 

 

17

 

President, act with all of the powers and be subject
to all the restrictions of the President. 
The Vice Presidents shall also perform such other duties and have such
other powers as the Board of Managers, the President or this Agreement may,
from time to time, prescribe.

 

(vii)         Secretary and the Assistant
Secretaries.  The Secretary shall
attend all meetings of the Board of Managers, all meetings of the committees
thereof and record all the proceedings of the meetings in a book or books to be
kept for that purpose.  The Secretary
shall keep or cause to be kept, at the principal office of the Company or at
the Secretary’s office, the records of the Company in which are contained the
names of all Members and each such Member’s record address, and the Class A
Percentage Interest or Class B Percentage Interest, as applicable, held by
each.  Under the President’s supervision,
the Secretary shall give, or cause to be given, all notices required to be
given by this Agreement or by law; and shall have such powers and perform such
duties as the Board of Managers, the President or this Agreement may, from time
to time, prescribe.  The Assistant
Secretary, or if there be more than one, the Assistant Secretaries in the order
determined by the Board of Managers, shall, in the absence or disability of the
Secretary, perform the duties and exercise the powers of the Secretary and
shall perform such other duties and have such other powers as the Board of
Managers, the President, or Secretary may, from time to time, prescribe.

 

(viii)        Treasurer and Assistant Treasurer.  The Treasurer shall, subject to the authority
of the Chief Financial Officer, have the custody of the limited liability
company funds and securities; shall keep full and accurate accounts of receipts
and disbursements in books belonging to the Company; shall deposit all monies
and other valuable effects in the name and to the credit of the Company as may
be ordered by the Board of Managers; shall cause the funds of the Company to be
disbursed when such disbursements have been duly authorized, taking proper
vouchers for such disbursements; and shall render to the President and the
Board of Managers, at its regular meeting or when the Board of Managers so
requires, an account of the Company; and shall have such powers and perform
such duties as the Board of Managers, the President, the Chief Financial
Officer or this Agreement may, from time to time, prescribe.  The Assistant Treasurer, or if there shall be
more than one, the Assistant Treasurers in the order determined by the Board of
Managers, shall in the absence or disability of the Treasurer perform the
duties and exercise the powers of the Treasurer.  The Assistant Treasurers shall perform such
other duties and have such other powers as the Board of Managers, the President,
the Chief Financial Officer or Treasurer may, from time to time, prescribe.

 

(ix)           Other Officers; Security.  The other officers, if any, of the Company
shall have such duties and powers as generally pertain to their respective
offices and such other duties and powers as the Board of Managers shall from
time to time delegate to each such officer. 
The Board of Managers may require any officer, agent or employee to give
security, by bond or otherwise, for the faithful performance of his or her
duties.

 

18

 

(e)           Limitation on Authority of and
Action by Members.  Except for a
Person who is a Member and also a Manager or Officer, no Member shall be
entitled to participate in or vote in matters involving the management or
business of the Company, all such authority being vested in the Board of
Managers.  No Member shall have
authority, either express or implied, to bind the Company.  This Section 6.1(e) supercedes
any authority granted to the Members pursuant to the Act.  Any Member who takes any action or binds the
Company in contravention of this Section 6.1(e) shall be
solely responsible for any loss and expense incurred by the Company as a result
of the unauthorized action and shall indemnify, defend and hold the Company,
the Managers, the Officers and the other Members harmless with respect to the
loss or expense.

 

6.2           Voting or Other Actions by Members.

 

(a)           Unless otherwise specified in this
Agreement, approval by or authorization of any action which requires a vote,
consent, approval or action of or an election by a class of Members shall
require the consent of Members holding in the aggregate a majority of the
Interest of such class.

 

(b)           Unless otherwise specified by the Act
or in this Agreement, the Class A Members shall have the sole right and
power to vote on any matter submitted for the approval or consent of the
Members, and the Class B Members shall have no right or power to vote in
respect of such matters; provided, however, that if the Act or
other applicable law gives the Class B Members the right to vote on any
matter, then unless the Act or other applicable law requires otherwise, the Class A
Members and the Class B Members shall vote as a single class.  Such vote may be taken at a meeting of the Members
or by written consent in accordance with the provisions of Section 6.2(c).

 

(c)           Any action requiring the vote,
consent, approval or action of or an election by the Members or required to be
taken at a meeting of the Members may be taken without a meeting if a consent
in writing, setting forth the action so taken, will be signed by Members
holding at least the percentage of the Interests required for such approval,
consent or action.

 

6.3           Transactions with the Company.  Any Member or any Affiliate thereof may lend
money to, borrow money from, act as a surety, guarantor or endorser for,
guaranty or assume one or more obligations of, provide collateral for or
transact other business with the Company and derive and retain the profits
therefrom; provided that, other than transactions contemplated by the
Management Agreement, (i) any such contract, transaction, dealing or
agreement is approved by the Board of Managers and (ii) such Member or
Affiliate has made full and adequate disclosure to the Board of Managers with
respect to all reasonably applicable information about such transactions or
dealings with the Company.  The validity
of any such transaction or dealing or any payment or profit related thereto or
derived therefrom shall not be affected by any relationship between the Company
and such Member or any of its Affiliates. 
In any of these cases, dealings and undertakings between the Company and
any Affiliate, Member or Affiliate of a Member may or may not be at arm’s
length and on commercially reasonable terms.

 

19

 

6.4           Limited Liability.

 

(a)           Except as otherwise provided by the
Act or in this Agreement, the debts, obligations and liabilities of the
Company, whether arising in contract, tort or otherwise, shall be solely the
debts, obligations and liabilities of the Company, and no Manager, Officer or
Member (or any Affiliate of a Manager, Officer or Member) shall be obligated
personally for any such debt, obligation or liability of the Company solely by
reason of being a Manager, Officer or Member of the Company.

 

(b)           To the extent that at law or in
equity, a party shall have duties (including fiduciary duties) and liabilities
to the Company or the Members, such duties and liabilities may be restricted by
provisions of this Agreement.

 

(c)           To the fullest extent permitted under
the Act, the Delaware General Corporation Law or any other applicable law as
currently or hereafter in effect, none of the Board of Managers or any Manager,
Officer or any Affiliate of any thereof shall be personally liable, responsible
or accountable in damages or otherwise to the Company or any of its Members for
or with respect to any action taken or failure to act on behalf of the Company
within the scope of the authority conferred on such party by this Agreement or
by law.  In addition to, and not by way
of limitation of, the preceding sentence, none of the Board of Managers or any
Manager, Officer or any Affiliate of any thereof shall be liable to the Company
or its Members for monetary damages for breach of fiduciary duty as a Manager
or Officer, except for liability for acts or omissions not in good faith or
which involve gross negligence, intentional misconduct or a knowing violation
of law.  Any repeal or modification of
this Section 6.4 shall not adversely affect any right or protection
of any Member existing prior to such repeal or modification.

 

(d)           The Board of Managers and each
Member, Manager and Officer shall be fully protected in relying in good faith
upon the records of the Company and upon such information, opinions, reports or
statements presented to the Company by any Person as to the matters the Board
of Managers or such Member, Manager or Officer reasonably believes are within
such other Person’s professional or expert competence and who has been selected
with reasonable care by or on behalf of the Company, including information,
opinions, reports or statements as to the value and amount of the assets,
liabilities, profits, losses or net cash flow or any other facts pertinent to
the existence and amount of assets from which distributions to the Member might
properly be paid.

 

6.5           Indemnification.

 

(a)           Each Person who was or is made a
party or is threatened to be made a party to or is involved in any action, suit
or proceeding, whether civil, criminal, administrative or investigative
(hereinafter, a “proceeding”), by reason of the fact that such Person,
is or was a Member, Manager or Officer of the Company, or is or was serving at
the request of the Company as a manager, director, officer, employee,
fiduciary, or agent of another limited liability company or of a corporation,
partnership, joint venture, trust or other enterprise, including service with
respect to an employee benefit plan (each hereinafter and “indemnitee”)
and whether the basis of such proceeding is alleged action in an official
capacity as a member, manager, director, officer, employee or agent or in any
other capacity while serving as a member, manager, director, officer, employee
or agent, shall be indemnified and held harmless by the Company to the fullest 

 

20

 

extent which it is
empowered to do so unless prohibited from doing so by the Act, as the same
exists or may hereafter be amended (but, in the case of any such amendment,
only to the extent that such amendment permits the Company to provide broader
indemnification rights than said law permitted the Company to provide prior to
such amendment) against all expense, liability and loss (including attorneys’
fees actually and reasonably incurred by such Person and judgments, fines and
amounts paid in settlement in connection with such proceeding) and such
indemnification shall inure to the benefit of such indemnitee’s heirs,
executors and administrators; provided, however, that, except as
provided in Section 6.5(b), the Company shall indemnify any such
Person seeking indemnification in connection with a proceeding (or part
thereof) initiated by such Person only if such proceeding (or part thereof) was
authorized by the Board of Managers of the Company.  The right to indemnification conferred in
this Section 6.5 shall be a contract right and, subject to Sections
6.5(b) and 6.5(e), shall include the right to be paid by the
Company the expenses incurred in defending any such proceeding in advance of
its final disposition.  The Company may,
by action of the Board of Managers, provide indemnification to employees and
agents of the Company with the same scope and effect as the foregoing
indemnification of Members, Managers and Officers.

 

(b)           Any indemnification of a Manager or
Officer of the Company under Section 6.5(a) or advance of
expenses under Section 6.5(e) shall be made promptly, and in
any event within thirty (30) days, upon the written request of the Member, Manager
or Officer; provided, however, that no payment of any indemnification
claims shall be made prior to the approval of such payment by the Board of
Managers.  If a determination by the
Company that the Member, Manager or Officer is entitled to indemnification
pursuant to this Section 6.5 is required, and the Company fails to
respond within sixty (60) days to a written request for indemnity, the Company
shall be deemed to have approved the request. 
If the Company denies a written request for indemnification or advancing
of expenses, in whole or in part, or if payment in full pursuant to such
request is not made within thirty (30) days, the right to indemnification or
advances as granted by this Section 6.5 shall be enforceable by the
Member, Manager or Officer in any court of competent jurisdiction.  Such Person’s costs and expenses incurred in
connection with successfully establishing his, her or its right to
indemnification, in whole or in part, in any such action shall also be
indemnified by the Company.  If shall be
a defense to any such action (other than an action brought to enforce a claim
for expenses incurred in defending any proceeding in advance of its final
disposition where the required undertaking, if any, has been tendered to the
Company) that the claimant has not met the standards of conduct which make it
permissible under the Act for the Company to indemnify the claimant for the
amount claimed, but the burden of such defense shall be on the Company.  Neither the failure of the Company (including
its Board of Managers, independent legal counsel, or its Members) to have made
a determination prior to the commencement of such action that indemnification
of the claimant is proper in the circumstances because he, she or it has met
the applicable standard of conduct set forth in the Act, nor an actual
determination by the Company (including its Board of Managers, independent
legal counsel, or the Members) that the claimant has not met such applicable
standard of conduct, shall be a defense to the action or create a presumption
that the claimant has not met the applicable standard of conduct.

 

(c)           The rights to indemnification and the
payment of expenses incurred in defending a proceeding in advance of its final
disposition conferred in this Section 6.5 shall not be exclusive of
any other right which any Person may have or hereafter acquire under any

 

21

 

statute, provision of the
Certificate, this Agreement, agreement, vote of the Members or disinterested
Managers or otherwise.

 

(d)           The Company may purchase and maintain
insurance on its own behalf or on behalf of any Person who is or was a Manager,
Officer, employee, fiduciary or agent of the Company, or is or was serving at
the request of the Company as a manager, director, officer, employee or agent
of another limited liability company, corporation, partnership, joint venture,
trust or other enterprise against any expense, liability or loss asserted
against him or her in any such capacity, or arising out of his or her status as
such, whether or not the Company would have the power to indemnify such Person
against such expense, liability or loss under this Section 6.5.

 

(e)           Unless otherwise determined by the
Board of Managers in a specific case, expenses incurred by any Person described
in Section 6.5(a) in defending a proceeding shall be paid by
the Company in advance of such proceeding’s final disposition upon receipt of
an undertaking by or on behalf of the Member, Manager or Officer to repay such
amount if it shall ultimately be determined that such indemnitee is not
entitled to be indemnified by the Company. 
Such expenses incurred by other employees and agents may be so paid upon
such terms and conditions, if any, as the Board of Managers deems appropriate.

 

(f)            For purposes of this Section 6.5,
references to “the Company” shall include, in addition to the resulting
company, any constituent company (including any constituent of a constituent)
absorbed in a consolidation or merger which, if its separate existence had
continued, would have had power and authority to indemnify its members,
managers, directors, officers, and employees or agents, so that any Person who
is or was a member, manager, director, officer, employee or agent of such
constituent company, or is or was serving at the request of such constituent
company as a member, manager, director, officer, employee or agent of another
limited liability company, corporation, partnership, joint venture, trust or
other enterprise, shall stand in the same position under this Section 6.5
with respect to the resulting or surviving company as he, she or it would have
with respect to such constituent company if its separate existence had
continued.

 

ARTICLE VII

BOOKS AND RECORDS

 

7.1           Books and Records; Inspection by
Members.  The Board of Managers shall
keep (or cause to be kept) proper and usual books and records pertaining to the
business of the Company.  The books and
records of the Company shall be kept at the principal office of the Company or
at such other places, within or without the State of Delaware, as the Board of
Managers shall from time to time determine. 
As provided by the Act, any Member or Manager of record shall have the
right to examine, at any reasonable time or times for all purposes, the books
and records of account, minutes and records of the Company and to make copies
thereof.  Such inspection may be made by
any agent or attorney of the Member or Manager, as applicable.

 

22

 

7.2           Tax Matters.

 

(a)           Unless otherwise provided herein, all
elections and decisions required or permitted to be made by the Company under
any applicable tax law shall be made by the Board of Managers (including the
election under Code Section 6231(a)(1)(B)(ii) to have Code
Section 6231(a)(1)(B)(i) not to apply (the “TEFRA Partnership
Election”)).  The Board of Managers
shall cause to be prepared and filed all necessary federal, state and local
income tax returns on a timely basis.   
Each Member shall furnish to the Company all pertinent information in
its possession relating to Company operations that is necessary to enable the Company’s
income tax returns to be prepared and filed. 
Any balance sheet and capital account included in the preparation of the
Company’s federal income tax return (and to the extent applicable, any state
income tax return) will be based upon the Company’s method of accounting and
principles under federal income tax law, rather than GAAP, Capital Account or
other principles.

 

(b)           If the TEFRA Partnership Election is
made, then for any applicable Company taxable year, NASDI Holdings is hereby
designated the initial tax matters partner for the Company within the meaning
of Code Section 6231(a)(7) (the “Tax Matters Partner”); provided,
however, (i) in exercising its authority as Tax Matters Partner,
the Tax Matters Partner will be limited by the provisions of this Agreement
affecting tax aspects of the Company; and (ii) the Tax Matters Partner
will give prompt notice to the Board of Managers of the receipt of any written
notice that the Service or any state or local taxing authority intends to
examine the Company income tax returns for any year, the receipt of written
notice of the beginning of an administrative proceeding at the Company level
relating to the Company under Code Section 6223, the receipt of written
notice of the final partnership administrative adjustment relating to the
Company pursuant to Code Section 6223, and the receipt of any request from
the Service for waiver of any applicable statute of limitations with respect to
the filing of any tax return by the Company.

 

(c)           Each Member acknowledges that this
Agreement creates a partnership for federal and state income tax purposes, and
hereby agrees not to elect under Code Section 761 or applicable state law
to be excluded from the application of Subchapter K of Chapter 1 of Subtitle A
of the Code or any similar state statute applicable to the Company.

 

(d)           No Member, Manager, Officer, agent or
employee of the Company may file Service Form 8832 (or such alternative or
successor form) to elect to have the Company be classified as a corporation for
federal income tax purposes, in accordance with Regulations
Section 301.7701-3 without the prior written consent of each of the
Members.  Unless and until the Members
elect to file such form electing to have the Company be classified as a
corporation for federal income tax purposes, the Members shall take such other
action as may be necessary or required (and permitted under the terms of this
Agreement) to maintain the status of the Company as a partnership for federal
income tax purposes.

 

7.3           Financial Records.  All financial records shall be maintained and
reported using GAAP, except as set forth in Section 7.2(a).

 

7.4           Fiscal Year.  The fiscal year of the Company shall begin on
the first day of January and end on the last day of December each
year, unless otherwise determined by the Board of Managers.

 

23

 

7.5           Deposits.  All funds of the Company shall be deposited
in an account or accounts in such banks, trust companies or other depositories
as the Board of Managers may select.

 

7.6           Checks, Drafts, Etc..  All checks, drafts or other orders for the
payment of money shall be signed (i) by and Officer or (ii) by those
Persons specifically authorized from time to time by the Board of Managers.

 

7.7           Accountant.  An accountant(s) may be selected from
time to time by the Board of Managers to perform such tax and accounting
services as may from time to time be required.

 

7.8           Legal Counsel.  One or more attorney(s) at law may be
selected from time to time by the Board of Managers to review the legal affairs
of the Company and to perform such other services as may be required and to
report to the Board of Managers with respect thereto.

 

ARTICLE VIII

TRANSFER OR ASSIGNMENT OF INTERESTS

 

8.1           Restrictions on
Transfer; Certain Representations and Warranties.

 

(a)           Unless a Transfer of all or any
portion of an Interest is made in accordance with the provisions of this
Agreement, such Transfer shall not be valid or have any force or effect.

 

(b)           Each Member represents and warrants
to the Company that such Member has acquired his, her or its Interest solely
for such Member’s own account and not with a view to, or for resale in
connection with, the distribution or other disposition thereof, and that the
provisions of this Agreement and any Transfer of such Interest will be made
only in compliance with all applicable federal and state securities laws.

 

8.2           Certain Permitted Transfers.  Notwithstanding anything contained in this
Agreement to the contrary, Interests may be Transferred, subject to this Article VIII,
including the last paragraph of this Section 8.2, as follows:

 

(a)           by Berardi to any member of his
Family;

 

(b)           Berardi or any Permitted Transferee
thereof may transfer his, her or its Interest, as applicable, to any
corporation, limited liability company, trust or partnership (including,
without limitation, a family limited partnership) which Berardi or any member
of his Family, or such Permitted Transferee, (i) owns, directly or
indirectly, all of the equity interest in such entity, and (ii) has solely
voting power with respect thereto;

 

(c)           upon termination of any trust or a
trust or custodianship under the Uniform Gifts to Minors Act, by a trustee or
custodian to the person or persons who, in accordance with the terms of such
trust or custodianship, are entitled to receive the Interest held in trust or
custody;

 

(d)           NASDI Holdings may transfer its
Interest to any Person which is an Affiliate, and without limiting the
foregoing a Change in Control shall not constitute a Transfer;

 

24

 

(e)           by a Member or by a Permitted
Transferee to any Person provided the prior approval of a majority of the
disinterested members of the Board of Managers to any such Transfer is obtained
by the proposed transfer; or

 

(f)            from the Transferor to the Company;
or

 

(g)           any Transfer of an Interest (whether
a Class A Interest and/or a Class B Interest) held by the initial
Class A Member.

 

Any Interest permitted to be Transferred by this Section 8.2
shall remain subject thereafter to the restrictions on Transfer contained in
this Agreement and, as a condition to any such Transfer, each Transferee
thereof (a “Permitted Transferee”) shall be required to execute and
deliver to the Company a properly completed Supplement to this Agreement and
agree to become a party to this Agreement and be bound by the provisions of
this Agreement, and deliver such other documents, instruments and certificates
as the Company may reasonably request in order that the Company may be
satisfied that the foregoing requirements have been satisfied.

 

8.3           Drag-Along.  In the event NASDI Holdings proposes to enter
into a Sale Transaction and, if Berardi or any Permitted Transferee thereof
were to participate in the Sale Transaction, the consummation of the Sale
Transaction would result in Berardi or such Permitted Transferee receiving
consideration therefrom of an amount equal to or greater than $1,500,000, then
if NASDI Holdings requests in writing that Berardi or such Permitted Transferee
participates in the Sale Transaction, Berardi or such Permitted Transferee
shall participate and vote in favor of such Sale Transaction, not exercise any
appraisal/dissenters rights with respect to the Sale Transaction, tender his,
her or its Class B Interest in exchange for the consideration, if appropriate,
and otherwise cooperate in all respects to implement and effect the Sale
Transaction including, without limitation, the execution of all appropriate
customary documents.

 

8.4           Tag Along.  In the event NASDI Holdings proposes to sell
any of its Interest representing at least 20% of the then total Interests of
all Members to a Third Party, NASDI Holdings covenants and agrees to permit
Berardi or any Permitted Transferee thereof to participate in such transaction
on a pro rata basis (as the other Class B Interests) if Berardi or such
Permitted Transferee so elects by written notice delivered to NASDI Holdings
within ten (10) days after NASDI Holdings gives Berardi or such Permitted
Transferee notice of such transaction. 
If Berardi or such Permitted Transferee elects to participate, he, she
or it shall vote in favor of such Sale Transaction, not exercise any
appraisal/dissenters rights with respect to the Sale Transaction, tender his,
her or its Class B Interest in exchange for the consideration, if appropriate,
and otherwise cooperate in all respects to implement and effect the Sale
Transaction including, without limitation, the execution of all appropriate
customary documents.

 

8.5           Call Options.

 

(a)           Upon the occurrence of any of the
following events (“Call Events”): (i) the voluntary termination by
Berardi of his employment with NASDI Holdings (including Berardi’s election not
to renew the term of his employment under the Employment Agreement) or the
termination for Cause by NASDI Holdings of Berardi’s employment with NASDI
Holdings, (ii) the termination of Berardi’s employment with NASDI Holdings
for any reason other than as set 

 

25

 

forth in the preceding
clause (i), (iii) a Change of Control of GLD Corporation, or (iv) for
any reason after December 31, 2010, GLD Corporation shall have the option
to purchase all (but not less than all) of the Interest owned by Berardi (or
any Permitted Transferee thereof), all in the manner, for the applicable
purchase price set forth in Section 8.5(c).

 

(b)           The option of GLD Corporation under Section 8.5(a) shall
be exercisable by service of written notices upon Berardi (or any Permitted
Transferee thereof) and each other Member (i) with respect to an option
exercised pursuant to Section 8.5(a)(i) or (ii), within
thirty (30) days after the termination of Berardi’s employment with NASDI
Holdings, (ii) with respect to an option exercised pursuant to Section 8.5(a)(iii),
within thirty (30) days after the date the Change of Control is consummated, or
(iii) with respect to an option exercised pursuant to Section 8.5(a)(iv),
any time after December 31, 2010.

 

(c)           The purchase price for an Interest
described in Sections 8.5(a)(ii) - 8.5(a)(iv) shall be
determined as of the first date of exercise of the purchase options giving rise
to such purchase and shall be equal to (i) the sum of
(A) (1) the average annual EBITDA for the prior two years of the
Company (or any predecessor thereto), multiplied by (2) four (4), minus
(B) the total Indebtedness of the Company, minus (C) the
Class A Liquidation Preference Amount (less the aggregate amount
distributed as provided in Section 5.1(b)(i)), multiplied by
(ii) the Class B Percentage Interest being sold.  The purchase price for an Interest described
in Section 8.5(a)(i) shall be determined as of the first date
of exercise of the purchase options giving rise to such purchase shall be equal
to the lesser of (i) $1,500,000 or (ii) an amount equal to
(A) the sum of (1) (x) the average annual EBITDA for the prior
two years of the Company (or any predecessor thereto), multiplied by
(y) four (4), minus (z) the total Indebtedness of the Company,
(2) minus the Class A Liquidation Preference Amount (less the
aggregate amount distributed as provided in Section 5.1(b)(i)), multiplied
by (B) the Class B Percentage Interest being sold.

 

ARTICLE IX

RESTRICTION ON THE RIGHT TO PURCHASE

 

9.1           Restriction on the Right to Purchase.  Notwithstanding anything to the contrary
contained in this Agreement, in the event that GLD Corporation is validly
prohibited by law or contract (including, without limitation, under the Great
Lakes Credit Agreement, the Great Lakes Bonding Agreement and the Great Lakes
Indenture) from purchasing an Interest (or any portion thereof) subject to an
option it has exercised hereunder, GLD Corporation shall have one hundred
twenty (120) days after the exercise of such option to remove or otherwise
remedy such prohibition before such option expires.

 

ARTICLE X

DISSOLUTION AND WINDING UP

 

10.1         Liquidating Events.  The Company shall dissolve and commence
winding up and liquidating only upon the first to occur of any of the following
(“Liquidating Events”):

 

(a)           Any time there are no Members;

 

26

 

(b)           The entry of a decree of judicial
dissolution under the Act or any other event or circumstance requiring
dissolution under the Act, subject however to any cure for such event or
circumstance as may be set forth in the Act; and

 

(c)           The sale of all or substantially all
of the assets of the Company.

 

The Members hereby agree
that, notwithstanding any provision of the Act, the Company shall not dissolve
prior to the occurrence of a Liquidating Event. 
The Members further agree that in the event the Company is dissolved
prior to a Liquidating Event, the Company may be continued upon the election of
the Class A Members at such time to so continue the Company; provided,
such election occurs within thirty (30) days of the event triggering such
dissolution.  An election under this Section 10.1
shall be effected when the Class A Members holding a majority of the
Class A Interests so elect in writing or at a meeting of the Class A
Members.

 

10.2         Winding Up.  Upon the occurrence of a Liquidating Event,
the Company shall continue solely for the purpose of winding up its affairs in
an orderly manner, liquidating its assets and satisfying the claims of its
creditors and Members.  No Manager,
Officer or Member shall take any action that is inconsistent with, or not necessary
to or appropriate for, the winding up of the Company’s business and
affairs.  Such Managers and Officers as
remain after the occurrence of a Liquidating Event shall continue to have the
same relative duties and authority as existed prior to the occurrence of a
Liquidating Event, subject to the requirements of the preceding sentence, and
the Board of Managers (or, if there are no Managers remaining, the senior
Officer) shall have the authority to delegate the duties and authority of any
Officers’ positions then vacant to any other Officers.  The senior Officer remaining (or, in the
event there are no Officers remaining, any Person selected by the Class A
Members) shall be responsible for overseeing the winding up and dissolution of
the Company and shall take full account of the Company’s liabilities and the
Property of the Company shall be liquidated as promptly as is consistent with
obtaining the fair value thereof but in any case by the later of (x) the
end of the Company taxable year in which such Liquidating Event occurred or
(y) the date ninety (90) days after such Liquidating Event occurred, and
the proceeds therefrom, to the extent sufficient, shall be applied and
distributed, subject to any reasonable reserves maintained for contingent or other
obligations of the Company, in the following order:

 

(a)           first,
to the satisfaction (whether by payment or the making of reasonable provision
for payment thereof) of all of the Company’s debts and liabilities to creditors
other than Members;

 

(b)           second,
to the satisfaction (whether by payment or the making of reasonable provision
for payment thereof) of all of the Company’s debts and liabilities to Members;

 

(c)           third,
as provided in Section 5.1(b).

 

10.3         Gross Asset Value.  Any distribution of property (other than
cash) under Section 10.2 shall be made based upon the Gross Asset
Value (after giving effect to any adjustments in accordance with Regulations
Section 1.704-1(b)(2)(iv)(f)(5)).

 

10.4         Capital Account Deficit Restoration.  No Member will be obligated to restore 

 

27

 

after a Liquidating Event
any deficit in its Capital Account, and no creditor of the Company will have
any right to enforce any obligation to restore any deficit Capital Account of
any Member.

 

ARTICLE XI

AMENDMENTS

 

11.1         Amendments.  Subject to Section 11.2,
this Agreement may be altered, amended or repealed, or a new Agreement may be
adopted, upon the prior written consent of all of the Members.

 

ARTICLE XII

MISCELLANEOUS

 

12.1         Notices.  Any notice or other communication required or
permitted hereunder shall be in writing and shall be deemed to have been duly
given on the date of service if served personally; three (3) business days
after the date of mailing, if mailed, by first class mail, registered or
certified, postage prepaid; one (1) business day after delivery to the
courier if sent by private receipt courier guaranteeing next day delivery,
delivery charges prepaid; and, if delivered by facsimile transmission, on the
date of transmission if delivered prior to 4:00 p.m. Chicago time on a
business day, and, if after 4:00 p.m. on the next business day following
transmission; and in each case, addressed to such Member at the address shown
for such Member on Schedule I hereto or at such other place as the
respective Member may, from time to time, designate in a written notice to the
other Members.  All communications among
Members in the normal course of the business of the Company shall be deemed
sufficiently given if sent by regular mail, postage prepaid.

 

12.2         Binding Effect.  Except as otherwise provided in this
Agreement, every covenant, term and provision of this Agreement shall be
binding upon and inure to the benefit of the Members and their respective
heirs, legatees, legal representatives, successors, transferees and assigns.

 

12.3         Creditors.  None of the provisions of this Agreement
shall be for the benefit of or enforced by any creditor of the Company or any
Member.

 

12.4         Remedies Cumulative.  No remedy herein conferred upon any party is
intended to be exclusive of any other remedy, and each and every such remedy
shall be cumulative and shall be in addition to every other remedy given
hereunder or now or hereafter existing at law or in equity or by statute or
otherwise.  No single or partial exercise
by any party of any right, power or remedy hereunder shall preclude any other
or further exercise thereof.

 

12.5         Headings.  Article, Section and other headings
contained in this Agreement are for reference purposes only and are not intended
to describe, interpret, define or limit the scope, extent or intent of this
Agreement or any provision hereof.

 

12.6         Severability.  Every provision of this Agreement is intended
to be severable.  If any term or
provision hereof is illegal or invalid for any reason whatsoever, such
illegality or invalidity shall not affect the validity or legality of the
remainder of this Agreement.

 

28

 

12.7         Incorporation by Reference.  Every exhibit, schedule and other appendix
attached to this Agreement and referred to herein is hereby incorporated in
this Agreement by reference.

 

12.8         Further Action.  Each Member agrees to perform all further
acts and execute, acknowledge and deliver any documents which may be reasonably
necessary, appropriate or desirable to carry out the provisions of this
Agreement.

 

12.9         Governing Law.  The laws of the State of Delaware shall
govern the validity of this Agreement, the construction of its terms, and the
interpretation of the rights and duties of the Members, without regard to the
principles of conflicts of laws.

 

12.10       Consent to Jurisdiction.  All judicial proceedings brought against any
party to this Agreement with respect to this Agreement may be brought in any
state or federal court of competent jurisdiction in the Commonwealth of
Massachusetts, and by execution and delivery of this Agreement, each party
accepts, for itself and in connection with its properties, generally and
unconditionally, the jurisdiction of the aforesaid courts, and irrevocably
agrees to be bound by any final judgment rendered thereby in connection with
this Agreement from which no appeal has been taken or is available.  Each party irrevocably consents to the
service of process of any of the aforementioned courts in any such action or
proceeding by the mailing of copies thereof by registered or certified mail,
postage prepaid, to its notice address specified in Section 12.1,
such service to become effective ten (10) days after such mailing.  EACH PARTY IRREVOCABLY WAIVES (A) TRIAL
BY JURY IN ANY ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT, AND
(B) ANY OBJECTION (INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED
ON THE GROUNDS OF FORUM NON CONVENIENS) WHICH IT MAY NOW OR HEREAFTER HAVE
TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT
IN ANY JURISDICTION SET FORTH ABOVE. 
Nothing herein shall affect the right to serve process in any other
manner permitted by law or shall limit the right of any party to bring
proceedings against any other party in the courts of any other jurisdiction.

 

12.11       Waiver of Action for Partition.  Each of the Members irrevocably waives any
right that it may have to maintain any action for partition with respect to any
of the Property of the Company.

 

12.12       Counterpart Execution.  This Agreement may be executed in any number
of counterparts with the same effect as if all of the Members had signed the
same document.  All counterparts shall be
construed together and shall constitute one agreement.

 

[signature page follows]

 

29

 

IN
WITNESS WHEREOF, the parties have entered into this Limited Liability Company
Agreement as of the day first above set forth.

 

	
   

  	
   

  	
  CLASS A MEMBER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NASDI HOLDINGS CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Deborah A. Wensel

  
	
   

  	
   

  	
   

  	
  Deborah A. Wensel

  
	
   

  	
   

  	
   

  	
  Senior Vice President, Chief Financial

  
	
   

  	
   

  	
   

  	
    Officer and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CLASS B MEMBERS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NASDI HOLDINGS CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Deborah A. Wensel

  
	
   

  	
   

  	
   

  	
  Deborah A. Wensel

  
	
   

  	
   

  	
   

  	
  Senior Vice President, Chief Financial

  
	
   

  	
   

  	
   

  	
    Officer and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Christopher A. Berardi

  
	
   

  	
   

  	
  Christopher A. Berardi

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  COMPANY:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NASDI, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Douglas B. Mackie

  
	
   

  	
   

  	
   

  	
  Douglas B. Mackie

  
	
   

  	
   

  	
   

  	
  President and Chief Executive Officer

  

 

 

SCHEDULE I

 

Class A Members

 

	
   

  	
   

  	
  CAPITAL

  CONTRIBUTIONS

  	
   

  	
  CLASS A

  PERCENTAGE

  INTEREST

  	
   

  
	
  NAMES AND ADDRESSES

  	
   

  	
  Gross Asset Value of

  Property

  	
   

  	
   

  	
   

  
	
  1.NASDI Holdings
  Corporation

  	
   

  	
  $

  	
  28,000,000

  	
   

  	
  100

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTALS:

  	
   

  	
  $

  	
  28,000,000

  	
   

  	
  100

  	
  %

  

 

Class B Members

 

	
   

  	
   

  	
  CAPITAL

  CONTRIBUTIONS

  	
   

  	
  CLASS B

  PERCENTAGE

  INTEREST

  	
   

  
	
  NAMES AND ADDRESSES

  	
   

  	
  Gross Asset Value of

  Property

  	
   

  	
   

  	
   

  
	
  1.NASDI Holdings
  Corporation

  	
   

  	
  NA

  	
   

  	
  65

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.Christopher A.
  Berardi

  	
   

  	
  NA

  	
   

  	
  35

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTALS:

  	
   

  	
  NA

  	
   

  	
  100

  	
  %

  

 

 

SCHEDULE II

 

Unanimous Approval of Board of
Managers

 

1.                                      Incurrence of Indebtedness other than as
permitted by Section 3.5.

 

2.                                      Capital expenditures (including, without
limitation, any acquisition of assets or property, or any acquisition of a
business, division or line of business, or any acquisition of the equity
interests of any business or entity) in the aggregate in excess of $500,000 in
any fiscal year.

 

3.                                       Approval of an annual budget for the
Company and its Subsidiaries.

 

 

EXHIBIT A

 

FORM OF SUPPLEMENT

 

SUPPLEMENT
NO.               
dated as of                  
       , 20     to the
Limited Liability Company Agreement dated as of                            ,
2008 (as the same may be amended, restated, supplemented or otherwise modified
from time to time, the “Agreement”), by and among the Members party
thereto (individually, a “Member” and collectively, the “Members”)
and NASDI, LLC, a Delaware limited liability company (the “Company”).

 

Capitalized
terms used herein and not otherwise defined herein shall have the meanings
assigned to such terms in the Agreement.

 

The
Agreement provides that additional Members of the Company may become Members
under the Agreement by execution and delivery of an instrument in the form of
this Supplement.  The undersigned Member
of the Company (the “New Member”) is executing this Supplement in
accordance with the requirements of the Agreement to become a                  
Member under the Agreement.

 

Accordingly,
the Company and the New Member agree as follows:

 

SECTION 1.  The New Member by his, her or its signature
below becomes a                   
Member under the Agreement with the same force and effect as if originally
named therein as a                    
Member and the New Member hereby agrees to be bound by and subject to all of
the terms and conditions set forth in the Agreement as a                 
Member thereunder.  Each reference to a
“Member” or to a “                         
Member” in the Agreement shall be deemed to include the New Member.  The Agreement is hereby incorporated herein
by reference.

 

SECTION 2.
The New Member represents and warrants to the Company and the other Members
that this Supplement and the Agreement constitute the legal, valid and binding
obligation of the New Member, enforceable against the New Member in accordance
with its terms.

 

SECTION 3.  This Supplement may be executed in
counterparts, each of which shall constitute an original, but all of which when
taken together shall constitute a single contract.  This Supplement shall become effective when the
Company shall have received counterparts of this Supplement that, when taken
together, bear the signatures of the New Member and the Company.

 

SECTION 4.  Except as expressly supplemented hereby, the
Agreement shall remain in full force and effect.

 

SECTION 5.  THIS SUPPLEMENT SHALL BE GOVERNED AS TO
VALIDITY, CONSTRUCTION AND IN ALL OTHER RESPECTS BY THE LAWS OF THE STATE OF
DELAWARE, WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF.

 

 

SECTION 6.  All communications and notices hereunder
shall be in writing and given as provided in Section 12.1 of the
Agreement.

 

IN
WITNESS WHEREOF, the New Member and the Company have duly executed this
Supplement to the Agreement as of the day and year first above written.

 

 

	
   

  	
  [NEW MEMBER]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  NASDI, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:Exhibit 10.2

 

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(this “Agreement”), dated as of April 30, 2008, is made by and
between NASDI Holdings Corporation, a Delaware corporation (the “Employer”
or the “Company”), with its principal place of business at 2122 York
Road, Oak Brook, Illinois 60523, and Christopher A. Berardi, an individual (the
“Employee”).

 

WHEREAS, simultaneously
with the execution of this Agreement, Great Lakes Dredge & Dock
Corporation, a Delaware corporation (“Great Lakes”), is causing North
American Site Developers, Inc., a Massachusetts corporation (“NASDI
Inc.”), to convert into a Delaware limited liability company under
applicable law to become NASDI, LLC, a Delaware limited liability company (“NASDI”)
(collectively referred to herein as the “NASDI Restructuring”);

 

WHEREAS, the Employer,
through its subsidiary, NASDI, is engaged in the demolition business
nationwide;

 

WHEREAS, prior to the
date hereof the Employee was acting as the president of NASDI Inc.;

 

WHEREAS, it is a condition
to the NASDI Restructuring that the Employee execute and deliver this
Agreement;

 

WHEREAS, the Employee
desires to be employed by the Employer and the Employer desires to employ the
Employee pursuant to the terms and conditions set forth herein; and

 

WHEREAS, the term “NASDI
Group” shall mean the combined businesses and operations of the Company and
NASDI;

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements contained herein, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

 

1.             Employment.  Subject to
the terms of this Agreement, the Employer hereby employs the Employee as the
President of the Company.  In this
position, the Employee shall report to the Chief Executive Officer of the
Company.

 

2.             Term.  Unless
earlier terminated as provided herein, the term of this Agreement shall be a
period commencing on the date hereof and ending on April 30, 2009 (the “Initial
Term”).  If neither party provides written
notice within thirty (30) days prior to the termination of this Agreement that
such automatic renewal will cease, then this Agreement will be considered
renewed for successive one (1) year periods (each a “Renewal Term”).  The Initial Term and any Renewal Term is
hereinafter collectively referred to as the “Term of this Agreement.”

 

 

3.             Duties.  The Employee
hereby accepts employment and agrees to serve the NASDI Group on a full-time
basis and to perform his duties faithfully, diligently and to the best of his
ability.  During the Term of this
Agreement, the Employee shall perform such duties as may be assigned to him
from time to time by the Chief Executive Officer or the Board of Directors of
the Company (herein, the “Board of Directors”).  The Employee’s duties shall consist of duties
which the Employee has historically performed for the business of NASDI
(including, without limitation, NASDI Inc.) with such modifications thereto as
made by the Chief Executive Officer or the Board of Directors from time to
time.  The Employee agrees to comply with
the policies of the NASDI Group set forth in the Company manual.

 

4.             Compensation.  During
the Term of this Agreement, the Employer agrees to pay the Employee, and the
Employee agrees to accept from the Employer, compensation consisting of the
following:

 

(a)           Annual Salary. 
The Employer shall pay the Employee an annual salary of $267,000 payable
in accordance with payroll practices in effect from time to time for all
salaried employees of the NASDI Group.

 

(b)           Fringe Benefits. 
The Employee shall be entitled to participate in all insurance and other
fringe benefit programs of the NASDI Group to the extent and on the same terms
and conditions (subject, however, to the terms and provisions of any such
benefit plans) such insurance and other fringe benefit programs are offered to
other senior executive employees of Great Lakes, except where the NASDI Group
has offered any benefit program under terms and provisions that are different
from those offered by Great Lakes (including, without limitation, the current
health insurance plan offered by the NASDI Group).  The Employee shall be entitled to vacation
each calendar year in accordance with the policies applicable to employees of
Great Lakes from time to time.

 

(c)           Reimbursement of Expenses. 
The Employee shall be reimbursed for all items of travel and
entertainment and miscellaneous expenses reasonably incurred by him on behalf
of the Employer.  Reimbursement for such
expenses will be pursuant to, and limited by, the NASDI Group’s policies with
respect to reimbursing business expenses of employees of the NASDI Group
holding similar positions as the Employee.

 

(d)           Sale Bonus.  In the event
of a sale of all or a material portion of the business, assets or equity
interests of NASDI or the Company, whether by way of a merger, consolidation,
reorganization or similar transaction, to an entity not affiliated with Great
Lakes which constitutes a “change in ownership or effective control” of the
Company or an “acquisition of a substantial portion of the assets” of the
Company for purposes of Section 409A of the Internal Revenue Code of 1986,
as amended from time to time (the “Code”), and the Treasury Regulations
promulgated thereunder (a “Sale Transaction”), the Employee shall be
entitled to a cash payment in an aggregate amount equal to 35% of the
liquidation proceeds received by the Company (or, if structured as a sale of
equity interests (whether as a direct sale of equity interests, by merger or
other similar transaction), then 35% of the net cash proceeds (including the
amount of cash subsequently received in respect of any non-cash proceeds within
five (5) years of the Sale Transaction in accordance with Section 409A
of the Code and the Treasury Regulations promulgated thereunder) received by
Great Lakes and/or the Company) in 

 

2

 

connection with
the consummation of such Sale Transaction; provided, however,
that the aggregate amount of all such payments received pursuant to this Section 4(d) shall
not exceed $9,800,000.

 

(e)           Entire Compensation. 
The compensation and benefits provided for in this Agreement are in full
payment of the services to be rendered by the Employee to the NASDI Group.

 

5.             Death
or Total Disability of Employee.

 

(a)           Death.  In the event
of the death of the Employee during the term of this Agreement, this Agreement
shall terminate effective as of the date of the Employee’s death and the NASDI
Group shall have no further obligations or liability under this Agreement,
except the Company shall pay to the Employee’s estate (i) the portion, if
any, of the Employee’s base salary for the period up to the Employee’s date of
death which remains unpaid; and (ii) amounts payable pursuant to any
employee benefits plans in which the Employee was a participant prior to his
death.

 

(b)           Long-term Disability. 
In the event of the Long-term Disability (as hereinafter defined) of the
Employee during the term of this Agreement, the Company shall have the right to
terminate the Employee’s employment hereunder by giving the Employee ten (10) days’
written notice thereof (a “Disability Termination Notice”), and upon
expiration of such ten (10) day period (the “Disability Termination
Date”), the NASDI Group shall not have any further obligations or liability
under this Agreement, except the Company shall pay to the Employee (i) the
portion, if any, of the Employee’s base salary for the period to the Disability
Termination Date which remains unpaid; and (ii) any amounts payable
pursuant to any employee benefit plans in which the Employee was a participant
prior to the Disability Termination Date.

 

The term “Long-term
Disability”, when used herein, shall have the meaning set forth in the
Disability plan of the Company covering the Employee.

 

6.             Discharge for Cause. 
The Company may discharge the Employee and thereby terminate his
employment hereunder for the following reasons: 
(a) conviction of a felony involving theft or fraud against the
NASDI Group or which adversely affects the NASDI Group’s reputation; (b) habitual
failure to report to work during normal hours other than customarily excused
absences for illness or other reasonable causes (it is understood and agreed
that the Employee’s absence from work due to a Disability (other than resulting
from habitual intoxication or drug addiction) that is not a Long-term
Disability shall not constitute cause pursuant to this Section 6(d));
(c) wrongful disclosure or use of trade secrets; (d) the Employee’s
failure to perform in any material respect any of his agreements, duties or
obligations hereunder or breach in any material respect of any terms or
conditions hereunder which is capable of being cured by the Employee and
continues for a period of thirty (30) days after written notice by the Company;
provided, however, that if such failure is not capable of being
cured, satisfied or, in the case of conduct, terminated, then termination shall
be effective upon written notice; (e) habitual intoxication; or (f) drug
addiction.  In the event that the Company
shall discharge the Employee pursuant to this Section 6, the NASDI
Group shall not have any further obligations or liability under this Agreement,
except the Company shall pay to the Employee the portion, if 

 

3

 

any, of (i) the
Employee’s base salary for the period up to the date of termination which
remains unpaid; and (ii) the amounts payable pursuant to any employee
benefit plan in which the Employee was a participant prior to the date of his
termination.

 

7.             Discoveries. 
The Employee will promptly disclose in writing to the Company each
improvement, discovery, concept and invention, relating to the business of the
NASDI Group, made or conceived by the Employee either alone or in conjunction
with others while employed by the Company or within six (6) months after
the termination of such employment.  The
Employee is not the owner of any improvement, discovery, concept or invention
(including, any patented invention) which is used in, or relates to the
business of the NASDI Group.  The
Employee will not disclose any such improvement, discovery, concept or
invention to any person, except the Company. 
Each such improvement, discovery, concept or invention shall be the sole
and exclusive property of, and is hereby assigned to, the Company, and at the
request of the Company, the Employee will assist and cooperate with the Company
and any person or persons (at the Company’s or such other person’s expense)
from time to time designated by the Company to obtain for the Company the grant
of any letters patent in the United States and/or such other country or
countries as may be designated by the Company, covering any such improvement,
discovery, concept or invention and will in connection therewith execute such
applications, statements, assignments or other documents, furnish such
information and data and take all such other action (including, without
limitation, the giving of testimony) as the Company may from time to time
reasonably request.

 

8.             Non-Disclosure
and Non-Competition.

 

(a)           The Employee recognizes and acknowledges
that he will have access to certain confidential information of the NASDI
Group, including but not limited to, trade secrets, customer lists, sales
records and other proprietary commercial information, and that such information
constitutes valuable, special and unique property of the NASDI Group.  The Employee agrees that he will not, for any
reason or purpose whatsoever, during or after the term of his employment,
disclose any of such confidential information to any party without express
authorization of the Company, except as necessary in the ordinary course of
performing his duties hereunder.

 

(b)           The Employee agrees with the Company that
during the period of his employment with the Company (or any affiliate of the
Company) and during the Restricted Term (as hereinafter defined), the Employee
will not, without prior written consent of the Company (which consent shall be
duly authorized by the Board of Directors of Great Lakes), engage directly or
indirectly in any business (either financially or as a shareholder, employee,
officer, partner, independent contractor or owner, or in any other capacity
calling for the rendition of personal service or acts of management, operation
or control) which is competitive with the business conducted by the NASDI Group
(including, without limitation, the Restricted Business (as hereinafter
defined)) during the period of his employment with the Company or during the
Restricted Term, within the Territory (as hereinafter defined); provided,
however, that the Employee may own up to three percent (3%) of any class
of securities of a corporation engaged in such a competitive business if such
securities are listed on a national securities exchange or registered under the
Securities Exchange Act of 1934.  The Employee
agrees that during the term of his employment with the Company and during the
Restricted Term, the Employee will not 

 

4

 

recruit, solicit,
hire, actively assist others in recruiting, soliciting or hiring any person who
is an employee of or consultant to, the NASDI Group.

 

For purposes of this
Agreement, the following terms shall have the meaning set forth below:

 

“Territory” shall mean the States of the United States of
America in which prior to the Employee’s termination, the NASDI Group has done
work, and such other countries as the NASDI Group and its subsidiaries or
affiliates have done work prior to the time Employee’s employment with the
Company terminates.

 

“Restricted Term” shall mean (i) the period commencing upon
the date the Employee’s employment with the Company terminates and ending on
the third anniversary date thereof if such termination arises in circumstances
where the Employee is entitled to the payment of a sale bonus pursuant to Section 4(d),
or (ii) the period commencing upon the date the Employee’s employment with
the Company terminates and ending on the first anniversary date thereof if such
termination arises other than as provided in clause (i) above, provided
that there shall be no Restricted Term as provided under this clause (ii) if
the Employee voluntarily terminates his employment for Good Reason (as
hereinafter defined).

 

“Restricted Business” shall mean the business that the NASDI
Group has conducted on or prior to the date the Employee’s employment with the
Company terminates.

 

“Good Reason” shall mean the occurrence of any of the following without the Employee’s
consent:  (i) a material reduction
or a material adverse alteration in the nature of the Employee’s position,
responsibilities or authorities or the assigning duties to the Employee that
are materially inconsistent with those of the position of President for similar
companies in similar industries (except to the extent the Company promotes the Employee
to a higher executive position); (ii) the Employee’s becoming the holder
of a lesser office or title than that previously held or requiring the Employee
to report to other than the Company’s Chief Executive Officer; (iii) any
material breach of this Agreement by the Company which causes an adverse change
to the terms and conditions of the Employee’s employment; (iv) the Company
requires the Employee to relocate his principal business office to a location
not within fifty (50) miles of the
Company’s principal business office located in Waltham, Massachusetts; or (v) any
reduction in the aggregate of the Employee’s salary and benefits, other than a
reduction in benefits generally applicable to executive employees.  In no event will a resignation be deemed to
occur for “Good Reason” unless the Employee provides notice to the Company, and
such resignation occurs, within 90 days after the event or condition giving
rise thereto.  Upon receiving notice from
the Employee, the Company shall have a period of thirty (30) days during which
it may remedy the event or condition.

 

(c)           The Employee acknowledges that his
compliance with the agreements in this Section 8 is necessary to
protect the good will and other proprietary interests of the NASDI Group and
that he is one of the principal members of NASDI and principal executives of
the 

 

5

 

Company and
conversant with its affairs, its trade secrets, its customers and other
proprietary information.  The Employee
acknowledges that a breach of his agreements in this Section 8 hereof
will result in irreparable and continuing damage to the NASDI Group and the
business of the NASDI Group, for which there will be no adequate remedy at law;
and agrees that in the event of any breach of the aforesaid agreements, the
Company and its successors and assigns shall be entitled to injunctive relief
and to such other and further relief as may be proper.

 

(d)           The Employee and the Company agree that
this covenant not to compete is a reasonable covenant under the circumstances,
and further agree that if in the opinion of any court of competent jurisdiction
such restraint is not reasonable in any respect, such court will have the
right, power and authority to excise or modify such provision or provisions of
this covenant as to the court will appear not reasonable and to enforce the
remainder of the covenant as so amended.

 

9.             Entire Agreement. 
This Agreement sets forth the entire agreement and understanding between
the Company and the Employee and supersedes all prior agreements and
understandings, written or oral, relating to the subject matter hereof,
including the Employment Agreement made as of April 24, 2001 by and
between NASDI Inc. and the Employee.

 

10.           Amendments and Modifications. 
This Agreement may be amended, modified or supplemented only by a duly
authorized and executed written agreement of each of the parties hereto.

 

11.           Enforceability. 
If any provision of this Agreement shall be held invalid or
unenforceable, in whole or in part, then such provision shall be deemed to be
modified or restricted to the extent and in the manner necessary to render the
same valid and enforceable, or shall be deemed excised from this Agreement as
the case may require, and this Agreement shall be construed and enforced to the
maximum extent permitted by law, as if such provision had been originally
incorporated herein as so modified or restricted, or as if such provision had
not been originally incorporated herein, as the case may be.

 

12.           Survival.  The covenants
set forth in Sections 7 and 8 hereof shall survive the termination of
this Agreement.

 

13.           GOVERNING LAW. 
THE VALIDITY AND EFFECT OF THIS AGREEMENT SHALL BE GOVERNED EXCLUSIVELY
BY THE LAWS OF THE STATE OF ILLINOIS, EXCLUDING THE “CONFLICT OF LAWS”
PROVISIONS OF THE STATE OF ILLINOIS.

 

14.           Assignment.  The rights and obligations of the Company
under this Agreement shall inure to the benefit of, and shall be binding upon,
the successors and assigns of the Company. 
This Agreement and the obligations created hereunder may not be assigned
by the Employee.

 

15.           Notices.  All notices and other communications
hereunder shall be in writing and shall be deemed to have been given if
delivered personally or by overnight courier service or telecopier, upon
receipt, or if mailed, by registered or certified mail (return receipt 

 

6

 

requested),
postage prepaid, upon receipt or refusal. 
Notice to either party hereto, if mailed or sent by overnight courier
service, shall be to the following addresses (or to such other address as the
recipient party shall designate in writing to the other party):

 

If to the Employee:

 

Christopher
A. Berardi

48
Hurd Road

Belmont,
MA 02478

 

If to the Employer:

 

c/o Great Lakes Dredge &
Dock Corporation

2122 York Road

Oak Brook, Illinois  60523-1981

Attn:  Chief Executive Officer

Facsimile:  (630) 574-3007

 

16.           Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same agreement.

 

17.           Interpretation.  The section headings contained in this
Agreement are solely for the purpose of reference, are not part of the
agreement of the parties and shall not in any way affect the meaning or
interpretation of this Agreement.

 

18.           Opportunity to Employ Counsel.  Employee hereby acknowledges receipt of this
Agreement prior to his employment with Employer and that he has had ample time
and opportunity to employ legal counsel of his choice concerning the terms and
conditions of this Agreement and his employment with Employer.

 

19.           Waiver.  No failure or delay by the Company or the
Employee in enforcing or exercising any right or remedy hereunder will operate
as a waiver thereof.  No claim or right
arising out of a breach or default under this Agreement can be discharged in
whole or in part by a waiver of that claim or right unless the waiver is
supported by consideration and is in writing and executed by the aggrieved
party hereto or its or his duly authorized agent.  A waiver by any party hereto of a breach or
default by the other party hereto of any provision of this Agreement shall not
be deemed a waiver of any prior or subsequent compliance therewith, and such
provision shall remain in full force and effect.

 

20.           Submission to Jurisdiction and
Venue.  For purposes of any action or
proceeding in connection with this Agreement, the parties hereto each hereby
expressly submit to the jurisdiction of the state and federal Courts located in
the Commonwealth of Massachusetts. 
Further, the parties hereto each consent that any order, process, notice
of motion or other application to or by any said court or a judge thereof may
be served within or without such court’s jurisdiction by registered mail or by
personal service, provided a reasonable time for appearance is allowed (but not
less than the time otherwise afforded by any law or rule), and 

 

7

 

waives any right
to contest the appropriateness of any action brought in any such court based
upon lack of personal jurisdiction, improper venue or forum non conveniens.

 

[signature page follows]

 

8

 

IN WITNESS WHEREOF, this Employment
Agreement has been executed by the Company, by a duly authorized officer
thereof, and by the Employee as of the date first above written.

 

 

	
   

  	
  NASDI HOLDINGS CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Deborah A. Wensel

  
	
   

  	
  Deborah A.
  Wensel

  
	
   

  	
  Senior Vice President,
  Chief Financial

  
	
   

  	
  Officer and
  Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Christopher A. Berardi

  
	
   

  	
  Christopher A. Berardi

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