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EXECUTION COPY  

 
  AMENDMENT NO. 2
  
    TO
  
    CREDIT AGREEMENT    
  

    THIS
AMENDMENT NO. 2 TO CREDIT AGREEMENT ("Agreement") is being executed and delivered as of October 23, 2000, by and among Great Lakes
Dredge & Dock Corporation, a Delaware corporation (the "Borrower"), the other "Loan Parties" from time to time party to the Credit Agreement referred to
and defined below (collectively, the "Loan Parties"), the financial institutions from time to time party to such Credit Agreement referred to and
defined below (collectively, the "Lenders") and Bank of America, N.A. (as successor to Bank of America National Trust and Savings Association), as
representative of the Lenders (in such capacity, the "Administrative Agent"). Undefined Capitalized terms used herein shall have the meanings ascribed
to such terms in such Credit Agreement. 

 
 

W I T N E S S E T H:    
  

    WHEREAS, the Borrower, the other Loan Parties, the Lenders, the Administrative Agent and Bank of America, N.A. (as successor to Bank of America National Trust
and Savings Association), in its separate capacity as "Issuing Bank", have entered into that certain Credit Agreement dated as of August 19, 1998, as heretofore amended (the
"Credit Agreement"), pursuant to which, among other things, the Lenders have agreed to provide, subject to the terms and conditions contained therein,
certain loans and other financial accommodations to the Borrower; 

    WHEREAS,
the Borrower has requested that the Lenders agree to permit the Borrower to make or incur Capital Expenditures and Permitted Business Acquisitions during Fiscal Year 2000 in
an aggregate amount which is greater than that currently permitted under the terms of the Credit Agreement; and 

    WHEREAS,
subject to the terms and conditions of this Agreement, the Lenders have agreed to amend the Credit Agreement to permit such Capital Expenditures and Permitted Business
Acquisitions; 

    NOW,
THEREFORE, in consideration of the foregoing premises, the terms and conditions stated herein and other valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by the Borrower, the other Loan Parties, the Lenders and the Administrative Agent, such parties hereby agree as follows: 

    1.  Amendment to Credit Agreement. Subject to the satisfaction of each of the conditions set forth in  Paragraph 2 of this Agreement, the Credit Agreement is amended to add
the reference "(x)" to the beginning of the existing provision which follows the
language "provided, further, however" in Section 6.3(a) thereof and to add the following provision to
the end of such Section 6.3(a):, 

(y)
the Borrower and its Subsidiaries may make and incur Capital Expenditures and Permitted Business Acquisitions in an aggregate amount not exceeding $14,000,000 during Fiscal Year 2000 and (z) the
amount of permitted Capital Expenditures and Permitted Business Acquisitions for Fiscal Year 2001 may not be increased pursuant to the first proviso of
this section. 

    2.  Effectiveness of this Agreement; Conditions Precedent. The provisions of Paragraph
1 of this Agreement shall be deemed to have become effective as of the date of this Agreement, but such effectiveness shall be expressly conditioned upon the Administrative
Agent's receipt of originally-executed counterparts of this Agreement executed by duly authorized officers of the Borrower, the other Loan Parties and the Majority Lenders. 

    3.  Representations and Warranties.

    (a) The
Borrower and each other Loan Party hereby represents and warrants that this Agreement, and the Credit Agreement as amended by this Agreement, constitute legal,
valid and binding 

 

obligations of the Borrower and the other Loan Parties enforceable against the Borrower and the other Loan Parties in accordance with their terms. 

    (b) The
Borrower and each other Loan Party hereby represents and warrants that its execution, delivery and performance of this Agreement, and its performance of the
Credit Agreement as amended by this Agreement, have been duly authorized by all proper corporate action, do not violate any provision of its articles or certificate of incorporation or bylaws, will
not violate any law, regulation, court order or writ applicable to it, and will not require the approval or consent of any governmental agency, or of any other third party under the terms of any
contract or agreement to which it or any of its Affiliates is bound (which has not been previously obtained), including without limitation, the Note Indenture and the Reliance Agreement. 

    (c) The
Borrower and each other Loan Party hereby represents and warrants that, both before and after giving effect to the provisions of this Agreement, (i) no Default
or Event of Default has occurred and is continuing or will have occurred and be continuing and (ii) all of the representations and warranties of the Borrower and each other Loan Party contained in the
Credit Agreement and in each other Loan Document (other than representations and warranties which, in accordance with their express terms, are made only as of an earlier specified date) are, and will
be, true and correct as of the date of its execution and delivery hereof or thereof in all material respects as though made on and as of such date. 

    4.  Reaffirmation, Ratification and Acknowledgment. The Borrower and each other Loan Party hereby (a) ratifies and
reaffirms all of its payment and performance obligations, contingent or otherwise, and each grant of security interests and liens in favor of the Administrative Agent, under each Loan Document to
which it is a party, (b) agrees and acknowledges that such ratification and reaffirmation is not a condition to the continued effectiveness of such Loan Documents and (c) agrees that neither such
ratification and reaffirmation, nor the Administrative Agent's, or any Lender's solicitation of such ratification and reaffirmation, constitutes a course of dealing giving rise to any obligation or
condition requiring a similar or any other ratification or reaffirmation from the Borrower or such other Loan Parties with respect to any subsequent modifications to the Credit Agreement or the other
Loan Documents. As modified hereby, the Credit Agreement is in all respects ratified and confirmed, and the Credit Agreement as so modified by this Amendment shall be read, taken and so construed as
one and the same instrument. Each of the Loan Documents shall remain in full force and effect and are hereby ratified and confirmed. Neither the execution, delivery nor effectiveness of this Agreement
shall operate as a waiver of any right, power or remedy of the Administrative Agent or the Lenders, or of any Default or Event of Default (whether or not known to the Administrative Agent or the
Lenders), under any of the Loan Documents. This Agreement shall constitute Loan Documents for purposes of the Credit Agreement. 

    5.  Governing Law. This Agreement shall be governed by and construed in accordance with the laws and decisions of the
State of Illinois (including S.H.A. 735 ILCS 105/5-1, et. seq., but without giving effect to any other conflicts of law provisions). 

    6.  Administrative Agent's Expenses. The Borrower hereby agrees to promptly reimburse the Administrative Agent for all
of the reasonable out-of-pocket expenses, including, without limitation, attorneys' and paralegals' fees, it has heretofore or hereafter incurred or incurs in connection with the preparation,
negotiation and execution of this Agreement and the other documents, agreements and instruments contemplated hereby. 

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

**** 

2

 

    IN WITNESS WHEREOF, this Agreement has been duly executed as of the day and year first above written. 

	 	 	GREAT LAKES DREDGE & DOCK

CORPORATION
	

 	
 	
By:	

/s/ DEBORAH A. WENSEL   

	 	 	Name:	Deborah A. Wensel

	 	 	Title:	Vice President and CFO

	
 	
 	
GREAT LAKES DREDGE & DOCK COMPANY
	

 	
 	
By:	

/s/ DEBORAH A. WENSEL   

	 	 	Name:	Deborah A. Wensel

	 	 	Title:	Vice President and CFO

	
 	
 	
DAWSON MARINE SERVICES COMPANY

(formerly, Dawson Dredging Company)
	

 	
 	

By:	

/s/ DEBORAH A. WENSEL   

	 	 	Name:	Deborah A. Wensel

	 	 	Title:	Vice President and CFO

	
 	
 	
FIFTY-THREE DREDGING CORPORATION
	

 	
 	
By:	

/s/ PAUL DINQUEL   

	 	 	Name:	Paul Dinquel

	 	 	Title:	Vice President

	
 	
 	
GATES CONSTRUCTION CORP.
	

 	
 	
By:	

/s/ DEBORAH A. WENSEL   

	 	 	Name:	Deborah A. Wensel

	 	 	Title:	Vice President and CFO

3

 

	
 	
 	
BANK OF AMERICA, N.A. (as successor to Bank of America National Trust and Savings Association), as Administrative Agent
	

 	
 	

By:	

/s/ KRISTINE D. HYDE   

	 	 	Name:	Kristine D. Hyde

	 	 	Title:	Vice President

	
 	
 	
BANK OF AMERICA, N.A. (as successor to Bank of America National Trust and Savings Association), as a Lender
	

 	
 	

By:	

/s/ JENNIFER L. GERDES   

	 	 	Name:	Jennifer L. Gerdes

	 	 	Title:	Vice President

	
 	
 	
BANK OF MONTREAL, CHICAGO BRANCH, as a Lender
	

 	
 	

By:	

/s/ BRUCE A. PIETKA   

	 	 	Name:	Bruce A. Pietka

	 	 	Title:	Director

	
 	
 	
FLEET BANK, N.A., as Lender
	

 	
 	

By:	

	 	 	Name:	

	 	 	Title:	

	
 	
 	
LASALLE BANK, N.A., as a Lender
	

 	
 	

By:	

/s/ DREW E. BURLAK   

	 	 	Name:	Drew E. Burlak

	 	 	Title:	AVP

4

 

	
 	
 	
COMERICA BANK—DETROIT, as a Lender
	

 	
 	

By:	

/s/ ALAN S. CARLYLE   

	 	 	Name:	Alan S. Carlyle

	 	 	Title:	Officer

	
 	
 	
SUMMIT BANK, as a Lender
	

 	
 	

By:	

/s/ BONNIE GERSHON   

	 	 	Name:	Bonnie Gershon

	 	 	Title:	Vice President

	
 	
 	
THE NORTHERN TRUST COMPANY, as a Lender
	

 	
 	

By:	

/s/ ROBIN BRODY   

	 	 	Name:	Robin Brody

	 	 	Title:	Vice President

	 	 	FLEET NATIONAL BANK, Successor by merger to Fleet Bank, N.A.
	

 	
 	

By:	

/s/ SCOTT VANDERWALL   
 Scott Vanderwall
 Vice President

5

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AMENDMENT NO. 2 TO CREDIT AGREEMENT

W I T N E S S E T H:Prepared by MERRILL CORPORATION www.edgaradvantage.com

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FIRST AMENDMENT
  to
  SECOND AMENDED AND RESTATED
  UNDERWRITING AND CONTINUING INDEMNITY AGREEMENT    
  

    THIS
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED UNDERWRITING AND CONTINUING INDEMNITY AGREEMENT dated as of June 13, 2000 (the "Amendment") is entered into by and among (i)
GREAT LAKES DREDGE & DOCK CORPORATION, a Delaware corporation ("HOLDINGS"), and the SUBSIDIARIES of HOLDINGS from time to time signatories hereto
(collectively with HOLDINGS, the "INDEMNITORS"), and (ii) RELIANCE INSURANCE COMPANY, a Pennsylvania corporation, UNITED PACIFIC INSURANCE COMPANY, a
Pennsylvania corporation, RELIANCE NATIONAL INSURANCE COMPANY, a Delaware corporation, and RELIANCE SURETY COMPANY, a Delaware corporation (collectively, the foregoing parties are referred to herein
as "RELIANCE"). 

 
 

W I T N E S S E T H:    
  

    WHEREAS, the INDEMNITORS and RELIANCE are parties to a certain Second Amended and Restated Underwriting and Continuing Indemnity Agreement dated as of
August 19, 1998 (the "Agreement"); 

    WHEREAS,
the INDEMNITORS have requested RELIANCE to amend a financial covenant set forth in the Agreement; and 

    WHEREAS,
subject to the terms and conditions set forth herein RELIANCE is willing to so amend the Agreement. 

    NOW,
THEREFORE, in consideration of the premises, and intending to be legally bound hereby, the INDEMNITORS and RELIANCE hereby agree as follows: 

    SECTION
1.  AMENDMENTS TO AGREEMENT. 

    Subject
to satisfaction of the conditions set forth in Section 2 of this Amendment and in reliance on the INDEMNITORS' warranties set
forth in Section 3 below, Section 6.20 of the Agreement shall be hereby amended by deleting the reference therein to "1.4 to 1" and in its place
substituting "1.2 to 1". 

    SECTION
2.  CONDITIONS PRECEDENT. 

    This
Amendment shall be effective upon receipt by RELIANCE of the documents listed below, each, unless otherwise noted, dated the date hereof, duly executed, in form and substitute
satisfactory to RELIANCE and in quantities designed by RELIANCE: 

	(a)
	This
Amendment executed by all parties hereto.

	(b)
	The
INDEMNITORS shall have delivered such other documents as RELIANCE may reasonably request. 

    SECTION
3.  WARRANTIES. 

    To
induce RELIANCE to enter into this Amendment, the INDEMNITORS warrant to RELIANCE as of the date hereof and after giving effect to this Amendment that: 

	(a)
	The
representations and warranties contained in Article V of the Agreement, in Section 4 of each SECURITY AGREEMENT (A/R), in Section 4 of each SECURITY AGREEMENT (EQUIPMENT), in
Section 4 of the PLEDGE AGREEMENT and in Article 1 of each of the VESSEL MORTGAGES are correct in all material respects on and as of the date hereof as though made on and as of such date except to the
extent stated to relate to an earlier date, in which case such representation and warranty shall be correct as of such earlier date; and

	(b)
	No
EVENT OF DEFAULT has occurred and is continuing. 

 

    SECTION
4.  GENERAL. 

	(a)
	Terms
used but not otherwise defined herein are used herein as defined in the Agreement.

	(b)
	As
hereby modified, the Agreement shall remain in full force and effect and is hereby ratified, approved and confirmed in all respects.

	(c)
	This
Amendment shall be binding upon and shall inure to the benefit of the INDEMNITORS and RELIANCE and respective successors and assigns of the RELIANCE.

	(d)
	This
Amendment may be executed in any number of counterparts and by the different parties on separate counterparts, and each such counterpart shall be deemed to be an original, but
all such counterparts shall together constitute but one and the same Amendment. 

IN
WITNESS WHEREOF, this Agreement is executed by the parties on the day and date first set forth above. 

	GREAT LAKES DREDGE & DOCK CORPORATION	 
	
By:	

/s/ DEBORAH A. WENSEL   
Deborah A. Wensel
Its: Vice President and CFO
	

 
	
GREAT LAKES DREDGE & DOCK COMPANY	

 
	
By:	

/s/ DEBORAH A. WENSEL   
Deborah A. Wensel
Its: Vice President and CFO
	

 
	
LYDON DREDGING & CONSTRUCTION COMPANY, LTD.

	

 
	
By:	

/s/ DEBORAH A. WENSEL   
Deborah A. Wensel
Its: Vice President and CFO
	

 
	
NATCO DREDGING LIMITED PARTNERSHIP	

 
	
By:	

/s/ DEBORAH A. WENSEL   
Deborah A. Wensel
Its: Vice President and CFO
	

 

2

 

	
NORTH AMERICAN TRAILING COMPANY	

 
	
By:	

/s/ DEBORAH A. WENSEL   
Deborah A. Wensel
Its: Vice President and CFO
	

 
	
FIFTY-THREE DREDGING COMPANY	

 
	
By:	

/s/ LESLIE A. BRAUN   
Leslie A. Braun
Its: President
	

 
	
DAWSON DREDGING COMPANY	

 
	
By:	

/s/ DEBORAH A. WENSEL   
Deborah A. Wensel
Its: Vice President and CFO
	

 
	
GREAT LAKES CARIBBEAN DREDGING, INC.	

 
	
By:	

/s/ DEBORAH A. WENSEL   
Deborah A. Wensel
Its: Vice President and CFO
	

 
	
RELIANCE INSURANCE COMPANY

UNITED PACIFIC INSURANCE COMPANY

RELIANCE NATIONAL INSURANCE COMPANY

RELIANCE SURETY COMPANY	

 
	
By:	

/s/ NICOLAS SEMINARA   
Nicholas Seminara
Its: Vice President
	

 

3

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FIRST AMENDMENT to SECOND AMENDED AND RESTATED UNDERWRITING AND CONTINUING INDEMNITY AGREEMENT

W I T N E S S E T H:

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