Document:

exv10w49

 

Exhibit 10.49

This security has not been registered under the securities act of 1933 or applicable
state securities laws and may not be transferred, sold or otherwise disposed of in the absence of
an effective registration statement with respect to the security, filed and made effective under
the securities act of 1933 and such applicable state securities laws, or unless the issuer receives
an opinion of counsel satisfactory to the issuer to the effect that registration under such act and
such applicable state securities laws is not required.

FIVE-YEAR SUBORDINATED PROMISSORY NOTE

	 	 	 	 	 
	Date: December 22, 2004
	 	$	207,504.00	 

STERLING CONSTRUCTION COMPANY, INC.

Sterling Construction Company, Inc., a Delaware corporation (together with its successors
and assigns the “Issuer”) for value received hereby promises to pay to Maarten D. Hemsley, with an
address at 265 Washington Street, Duxbury, Massachusetts 02332, or order (the “Noteholder”) by wire
transfer of immediately available funds to an account designated by the Noteholder by notice to the
Issuer the principal sum of Two hundred seven thousand five hundred four Dollars ($207,504.00)
together with interest on the unpaid principal balance of this Note from time to time outstanding
at the rate of twelve percent (12%) per year. All payments of principal and interest shall be made
in such coin or currency of the United States of America as at the time of payment shall be legal
tender for the payment of public and private debts.

	51.  	Definitions. The following terms for all purposes of this Note shall have the meanings
specified below. All accounting terms used herein and not expressly defined shall have the
meanings given to them in accordance with generally accepted accounting principles as in
effect from time to time. The terms defined in this Section 1 include the plural as
well as the singular.

	 	(a)  	“Acceleration Notice” shall have the meaning set forth in Section 3.
	 
	 	(b)  	“Business Day” means any day except a Saturday, Sunday or other day on which
commercial banks in the State of Texas are authorized by law to close.
	 
	 	(c)  	“Comerica” and “Comerica Obligations” shall have the meanings set forth in clause
(k), below.
	 
	 	(d)  	“Debt” means at any date an amount equal to or greater than $100,000 of (i) all
obligations of the Issuer for borrowed money; (ii) all obligations of the Issuer evidenced
by bonds, debentures, notes, or other similar instruments; (iii) all obligations of the
Issuer in respect of letters of credit or other similar instruments (or reimbursement
obligations with respect thereto;) (iv) all obligations of the Issuer to pay the deferred
purchase price of property or services, except trade payables; (v) all obligations of the
Issuer as lessee under capitalized leases; (vi) all Debt of others secured by a Lien on
any asset of the Issuer, whether or not such Debt is assumed by such Person; and (vii) any
guarantee by the Issuer of the payment obligation of another Person.
	 
	 	(e)  	“Default” means any condition or event which constitutes an Event of Default or which
with the giving of notice or lapse of time or both would, unless cured or waived, become
an Event of Default.

 

 

	 	(f)  	“Event of Default” shall have the meaning set forth in Section 3.
	 
	 	(g)  	“Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security
interest or encumbrance of any kind in respect of such asset. For the purposes of this
Note, the Issuer shall be deemed to own subject to a Lien any asset which it has acquired
or holds subject to the interest of a vendor or lessor under any conditional sale
agreement, capitalized lease or other title retention agreement relating to such asset.
	 
	 	(h)  	“Maturity Date” shall mean 5:00 p.m. Eastern Time on the last Business Day of the
twentieth full calendar quarter subsequent to the date of this Note.
	 
	 	(i)  	“Notice of Default” shall have the meaning set forth in Section 3.
	 
	 	(j)  	“Person” means any individual, corporation, partnership, firm, association, joint
venture, joint stock company, trust, unincorporated organization or other entity, or any
government or regulatory, administrative or political subdivision or agency, department or
instrumentality thereof.
	 
	 	(k)  	“Senior Indebtedness” means indebtedness of the Issuer to any bank or other lending
institution, including, but not limited to (i) all obligations of the Issuer to Comerica
Bank-Texas (“Comerica”) under the guaranty by the Issuer of the obligations of Sterling
Houston Holdings, Inc. to Comerica (the “Comerica Obligations;”) and (ii) any and all
replacements or refinancings of the Comerica Obligations (whether any such replacement or
refinancing is for a greater or lesser amount than the amount replaced or refinanced) with
one or more other lending institutions that is guaranteed by, or is the direct obligation
of, the Issuer.
	 
	 	(l)  	“Subordinated Note” and “Subordinated Notes” shall have the meanings set forth in
Section 7.

	52.  	Payment of Principal and Interest.

	 	(a)  	Interest. Interest on this Note shall be payable quarterly in arrears on or before
the fifteenth day following the end of each calendar quarter that this Note is
outstanding; provided however, that the first payment of interest shall be made on March
31, 2005.
	 
	 	(b)  	Principal. The principal amount of this Note shall be paid in twenty equal quarterly
installments, the first such installment to be made on or before March 31, 2005 and
thereafter, payments of principal shall be made on the last Business Day of each calendar
quarter commencing with the calendar quarter ending June 30, 2005.
	 
	 	(c)  	Prepayment. The principal amount of this Note may be prepaid by the Issuer at any
time or from time to time without the consent of the Noteholder and without premium or
penalty.

	53.  	Events of Default and Remedies. In case one or more of the following events (each an “Event
of Default”) shall have occurred and be continuing:

	 	(a)  	default in the payment of the principal of, or interest on, this Note as and when the
same shall become due and payable; or
	 
	 	(b)  	failure on the part of the Issuer duly to observe or perform any other of the
covenants or agreements on the part of the Issuer contained herein (other than those
covered by clause (a), above) for a period of thirty (30) days after the date on which
written notice specifying such failure, stating that such notice is a “Notice of Default”

 

 

	 	   	hereunder and demanding that the Issuer remedy the same, shall have been given by
registered or certified mail, return receipt requested, to the Issuer; or
	 
	 	(c)  	the prepayment of any Subordinated Note in violation of the provisions of Section
7 of this Note; or
	 
	 	(d)  	any event or condition shall occur which results in the acceleration of the maturity
of any Debt or enables or, with the giving of notice or lapse of time or both, would
enable the holder of such Debt or any Person acting on such holder’s behalf to accelerate
the maturity thereof; or
	 
	 	(e)  	the Issuer pursuant to, or within the meaning of, any bankruptcy or insolvency law:
(i) commences a voluntary case or proceeding; (ii) consents to the entry of an order for
relief against it in an involuntary case or proceeding; (iii) consents to the appointment
of a receiver or custodian of it or for all or substantially all of its property; (iv)
makes a general assignment for the benefit of its creditors; or (v) admits in writing its
inability to pay its debts as the same become due —

	   	then in each case where an Event of Default specified in Section 3(a) through
3(d) occurs, the Holder, by notice in writing to the Issuer (the “Acceleration Notice”)
may declare the principal hereunder to be due and payable immediately, and upon any such
declaration, the same shall become immediately due and payable; and in the case where an Event
of Default specified in Section 3(e) occurs, the principal hereunder shall become and
be immediately due and payable without any declaration or other act on the part of the Holder.
	 
	54.  	Reimbursement of Expenses. The Issuer shall reimburse the Noteholder, on demand, for any and
all costs and expenses, including reasonable attorneys’ fees and court costs, incurred by the
Noteholder in collecting or otherwise enforcing this Note or in attempting to do any of the
foregoing.

	55.  	Powers and Remedies Cumulative; Delay or Omission Not a Waiver of Default.

	 	(a)  	No right or remedy herein conferred upon, or reserved to, the Holder is intended to
be exclusive of any other right or remedy, and every right and remedy shall, to the extent
permitted by law, be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.
	 
	 	(b)  	No delay or omission of the Holder to exercise any right or power accruing upon any
Default or Event of Default occurring and continuing as aforesaid shall impair any such
right or power or shall be construed to be a waiver of any such Default or Event of
Default or an acquiescence therein; and every power and remedy given by this Note or by
law may be exercised from time to time and as often as shall be deemed expedient by the
Holder.

	56.  	Waiver of Defaults.

	 	(a)  	The Noteholder may waive any past Default or Event of Default hereunder and its
consequences. In the case of any such waiver, the Issuer and the Noteholder shall be
restored to their former positions and rights hereunder, respectively, but no such waiver
shall extend to any subsequent or other Default or impair any right consequent thereon.

 

 

	 	(b)  	Upon any such waiver, such Default shall cease to exist and be deemed to have been
cured and not to have occurred, and any Default or Event of Default arising therefrom
shall be deemed to have been cured and not to have occurred for every purpose of the
Notes; but no such waiver shall extend to any subsequent or other default or Event of
Default or impair any right consequent thereon.

	57.  	Subordination.

	 	(a)  	No payment on account of principal of, or interest on, this Note or any other
promissory note issued contemporaneously herewith pursuant to that certain Restructuring
Agreement dated as of September 25, 2003 (each a “Subordinated Note” and collectively, the
“Subordinated Notes”) shall be made, and no Subordinated Notes shall be redeemed or
purchased directly or indirectly by the Issuer (or any of its subsidiaries), if at the
time of such payment or purchase or immediately after giving effect thereto, (i) there
shall exist a default in any payment with respect to the Senior Indebtedness or (ii) there
shall have occurred an event of default as those terms may be defined in the instrument
under which the same is outstanding (other than a default in the payment of amounts due
thereon) with respect to the Senior Indebtedness, permitting the holders thereof to
accelerate the maturity thereof, and such event of default shall not have been cured or
waived or shall not have ceased to exist.
	 
	 	(b)  	Subject to payment in full of the Senior Indebtedness, the holders of the
Subordinated Notes shall be subrogated to the rights of the holders of Senior Indebtedness
to receive payments or distributions of the assets of the Issuer made on such Senior
Indebtedness until all principal and interest on the Subordinated Notes shall be paid in
full; and for purposes of such subrogation, no payments or distributions to the holders of
Senior Indebtedness of any cash, property or securities to which any holders of the
Subordinated Notes would be entitled except for the subordination provisions of this
Section 7 shall, as between the holders of the Subordinated Notes and the Issuer
and/or its creditors other than the holders of the Senior Indebtedness, be deemed to be a
payment on account of the Subordinated Notes.
	 
	 	(c)  	The provisions of this Section 7 are and are intended solely for the purposes
of defining the relative rights of the holders of the Subordinated Notes and the holders
of Senior Indebtedness and nothing in this Section 7 shall impair, as between the
Issuer and any holders of the Subordinated Notes, the obligation of the Issuer, which is
unconditional and absolute, to pay to the holders of the Subordinated Notes the principal
thereof and interest thereon, in accordance with the terms of the Subordinated Notes, nor
shall anything herein prevent any holders of the Subordinated Notes from exercising all
remedies otherwise permitted by applicable law or hereunder upon default, subject to the
rights set forth above of holders of Senior Indebtedness to receive cash, property or
securities otherwise payable or deliverable to the holders of the Subordinated Notes.
	 
	 	(d)  	Upon any payment (including by redemption) which is not a payment in full of all of
the principal amount and accrued interest of all outstanding Subordinated Notes, the
aggregate amount of the payments shall be allocated to all the Subordinated Notes then
outstanding in proportion to the amounts of principal and interest due thereunder, so that
the amount of principal and interest paid under this Note shall bear the same ratio to the
aggregate principal and accrued interest paid under all of the Subordinated Notes as the
then outstanding principal and accrued interest then owed

 

 

	 	   	under this Note bears to the aggregate principal and accrued interest then owed under all
Subordinated Notes then outstanding.

	58.  	Modification of Note. This Note may be modified only with the written consent of the
Noteholder and the Issuer, provided, however, that no modification of Section 2 shall
be made that would result in either or both of the principal of, and interest on, this Note
being paid sooner or in a greater amount than is provided for under Section 2, above.
To this extent, the holders of the Subordinated Notes shall be deemed beneficiaries of
Section 2 of this Note.

	59.  	Miscellaneous. This Note shall be governed by, and be construed in accordance with, the laws
of the State of Delaware without regard to the conflicts of law rules of such state. The
Issuer hereby waives presentment, demand, notice, protest and all other demands and notices in
connection with the delivery, acceptance, performance and enforcement of this Note, except as
specifically provided herein, and assents to extensions of the time of payment, or forbearance
or other indulgence without notice. The section headings herein are for convenience only and
shall not affect the construction hereof.
	 
	   	THE ISSUER AND THE NOTEHOLDER HEREBY IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS NOTE.

	60.  	Submission to Jurisdiction. The Issuer irrevocably submits to the exclusive jurisdiction of
the state and federal courts located in the State of Delaware for the purposes of any suit,
action or other proceeding arising out of this Note. The Issuer further agrees that service
of any process, summons, notice or document by U.S. registered mail to the Issuer address set
forth below shall be effective service of process for any action, suit or proceeding in the
State of Delaware with respect to any matters to which it has submitted to jurisdiction in
this paragraph. The Issuer irrevocably and unconditionally waives any objection to the laying
of venue of any action, suit or proceeding arising out of this Note in the foregoing courts,
and hereby and thereby further irrevocably and unconditionally waives and agrees not to plead
or claim in any such court that any such action, suit or proceeding brought in any such court
has been brought in an inconvenient forum.

In Witness Whereof, the Issuer has caused this instrument to be duly executed as of the
date first set forth above.

Sterling Construction Company, Inc.

2751 Centerville Road — Suite 3131

Wilmington, Delaware 19803

	 	 	 	 	 
	By:

	 	/s/ Karen A. Stempinski
	 	 
	

	 	 	 	 
	

	 	Name: Karen A. Stempinski	 	 
	

	 	Title: Treasurerexv10w50

 

Exhibit 10.50

This security has not been registered under the securities act of 1933 or applicable
state securities laws and may not be transferred, sold or otherwise disposed of in the absence of
an effective registration statement with respect to the security, filed and made effective under
the securities act of 1933 and such applicable state securities laws, or unless the issuer receives
an opinion of counsel satisfactory to the issuer to the effect that registration under such act and
such applicable state securities laws is not required.

FIVE-YEAR SUBORDINATED PROMISSORY NOTE

	 	 	 	 	 
	Date: December 22, 2004
	 	$	1,404,758.00	 

STERLING CONSTRUCTION COMPANY, INC.

Sterling Construction Company, Inc., a Delaware corporation (together with its successors
and assigns the “Issuer”) for value received hereby promises to pay to Hare & Co. A/C Bank of New
York, with an address at P.O. Box 11203, New York, New York 10249 USA, or order (the “Noteholder”)
by wire transfer of immediately available funds to an account designated by the Noteholder by
notice to the Issuer the principal sum of One million four hundred four thousand seven hundred
fifty-eight Dollars ($1,404,758.00) together with interest on the unpaid principal balance of this
Note from time to time outstanding at the rate of twelve percent (12%) per year. All payments of
principal and interest shall be made in such coin or currency of the United States of America as at
the time of payment shall be legal tender for the payment of public and private debts.

	61.  	Definitions. The following terms for all purposes of this Note shall have the meanings
specified below. All accounting terms used herein and not expressly defined shall have the
meanings given to them in accordance with generally accepted accounting principles as in
effect from time to time. The terms defined in this Section 1 include the plural as
well as the singular.

	 	(a)  	“Acceleration Notice” shall have the meaning set forth in Section 3.
	 
	 	(b)  	“Business Day” means any day except a Saturday, Sunday or other day on which
commercial banks in the State of Texas are authorized by law to close.
	 
	 	(c)  	“Comerica” and “Comerica Obligations” shall have the meanings set forth in clause
(k), below.
	 
	 	(d)  	“Debt” means at any date an amount equal to or greater than $100,000 of (i) all
obligations of the Issuer for borrowed money; (ii) all obligations of the Issuer evidenced
by bonds, debentures, notes, or other similar instruments; (iii) all obligations of the
Issuer in respect of letters of credit or other similar instruments (or reimbursement
obligations with respect thereto;) (iv) all obligations of the Issuer to pay the deferred
purchase price of property or services, except trade payables; (v) all obligations of the
Issuer as lessee under capitalized leases; (vi) all Debt of others secured by a Lien on
any asset of the Issuer, whether or not such Debt is assumed by such Person; and (vii) any
guarantee by the Issuer of the payment obligation of another Person.
	 
	 	(e)  	“Default” means any condition or event which constitutes an Event of Default or which
with the giving of notice or lapse of time or both would, unless cured or waived, become
an Event of Default.

 

 

	 	(f)  	“Event of Default” shall have the meaning set forth in Section 3.
	 
	 	(g)  	“Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security
interest or encumbrance of any kind in respect of such asset. For the purposes of this
Note, the Issuer shall be deemed to own subject to a Lien any asset which it has acquired
or holds subject to the interest of a vendor or lessor under any conditional sale
agreement, capitalized lease or other title retention agreement relating to such asset.
	 
	 	(h)  	“Maturity Date” shall mean 5:00 p.m. Eastern Time on the last Business Day of the
twentieth full calendar quarter subsequent to the date of this Note.
	 
	 	(i)  	“Notice of Default” shall have the meaning set forth in Section 3.
	 
	 	(j)  	“Person” means any individual, corporation, partnership, firm, association, joint
venture, joint stock company, trust, unincorporated organization or other entity, or any
government or regulatory, administrative or political subdivision or agency, department or
instrumentality thereof.
	 
	 	(k)  	“Senior Indebtedness” means indebtedness of the Issuer to any bank or other lending
institution, including, but not limited to (i) all obligations of the Issuer to Comerica
Bank-Texas (“Comerica”) under the guaranty by the Issuer of the obligations of Sterling
Houston Holdings, Inc. to Comerica (the “Comerica Obligations;”) and (ii) any and all
replacements or refinancings of the Comerica Obligations (whether any such replacement or
refinancing is for a greater or lesser amount than the amount replaced or refinanced) with
one or more other lending institutions that is guaranteed by, or is the direct obligation
of, the Issuer.
	 
	 	(l)  	“Subordinated Note” and “Subordinated Notes” shall have the meanings set forth in
Section 7.

	62.  	Payment of Principal and Interest.

	 	(a)  	Interest. Interest on this Note shall be payable quarterly in arrears on or before
the fifteenth day following the end of each calendar quarter that this Note is
outstanding; provided however, that the first payment of interest shall be made on March
31, 2005.
	 
	 	(b)  	Principal. The principal amount of this Note shall be paid in twenty equal quarterly
installments, the first such installment to be made on or before March 31, 2005 and
thereafter, payments of principal shall be made on the last Business Day of each calendar
quarter commencing with the calendar quarter ending June 30, 2005.
	 
	 	(c)  	Prepayment. The principal amount of this Note may be prepaid by the Issuer at any
time or from time to time without the consent of the Noteholder and without premium or
penalty.

	63.  	Events of Default and Remedies. In case one or more of the following events (each an “Event
of Default”) shall have occurred and be continuing:

	 	(a)  	default in the payment of the principal of, or interest on, this Note as and when the
same shall become due and payable; or
	 
	 	(b)  	failure on the part of the Issuer duly to observe or perform any other of the
covenants or agreements on the part of the Issuer contained herein (other than those
covered by clause (a), above) for a period of thirty (30) days after the date on which
written notice specifying such failure, stating that such notice is a “Notice of Default”

 

 

	 	   	hereunder and demanding that the Issuer remedy the same, shall have been given by
registered or certified mail, return receipt requested, to the Issuer; or
	 
	 	(c)  	the prepayment of any Subordinated Note in violation of the provisions of Section
7 of this Note; or
	 
	 	(d)  	any event or condition shall occur which results in the acceleration of the maturity
of any Debt or enables or, with the giving of notice or lapse of time or both, would
enable the holder of such Debt or any Person acting on such holder’s behalf to accelerate
the maturity thereof; or
	 
	 	(e)  	the Issuer pursuant to, or within the meaning of, any bankruptcy or insolvency law:
(i) commences a voluntary case or proceeding; (ii) consents to the entry of an order for
relief against it in an involuntary case or proceeding; (iii) consents to the appointment
of a receiver or custodian of it or for all or substantially all of its property; (iv)
makes a general assignment for the benefit of its creditors; or (v) admits in writing its
inability to pay its debts as the same become due —

	   	then in each case where an Event of Default specified in Section 3(a) through
3(d) occurs, the Holder, by notice in writing to the Issuer (the “Acceleration Notice”)
may declare the principal hereunder to be due and payable immediately, and upon any such
declaration, the same shall become immediately due and payable; and in the case where an Event
of Default specified in Section 3(e) occurs, the principal hereunder shall become and
be immediately due and payable without any declaration or other act on the part of the Holder.
	 
	64.  	Reimbursement of Expenses. The Issuer shall reimburse the Noteholder, on demand, for any and
all costs and expenses, including reasonable attorneys’ fees and court costs, incurred by the
Noteholder in collecting or otherwise enforcing this Note or in attempting to do any of the
foregoing.

	65.  	Powers and Remedies Cumulative; Delay or Omission Not a Waiver of Default.

	 	(a)  	No right or remedy herein conferred upon, or reserved to, the Holder is intended to
be exclusive of any other right or remedy, and every right and remedy shall, to the extent
permitted by law, be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.
	 
	 	(b)  	No delay or omission of the Holder to exercise any right or power accruing upon any
Default or Event of Default occurring and continuing as aforesaid shall impair any such
right or power or shall be construed to be a waiver of any such Default or Event of
Default or an acquiescence therein; and every power and remedy given by this Note or by
law may be exercised from time to time and as often as shall be deemed expedient by the
Holder.

	66.  	Waiver of Defaults.

	 	(a)  	The Noteholder may waive any past Default or Event of Default hereunder and its
consequences. In the case of any such waiver, the Issuer and the Noteholder shall be
restored to their former positions and rights hereunder, respectively, but no such waiver
shall extend to any subsequent or other Default or impair any right consequent thereon.

 

 

	 	(b)  	Upon any such waiver, such Default shall cease to exist and be deemed to have been
cured and not to have occurred, and any Default or Event of Default arising therefrom
shall be deemed to have been cured and not to have occurred for every purpose of the
Notes; but no such waiver shall extend to any subsequent or other default or Event of
Default or impair any right consequent thereon.

	67.  	Subordination.

	 	(a)  	No payment on account of principal of, or interest on, this Note or any other
promissory note issued contemporaneously herewith pursuant to that certain Restructuring
Agreement dated as of September 25, 2003 (each a “Subordinated Note” and collectively, the
“Subordinated Notes”) shall be made, and no Subordinated Notes shall be redeemed or
purchased directly or indirectly by the Issuer (or any of its subsidiaries), if at the
time of such payment or purchase or immediately after giving effect thereto, (i) there
shall exist a default in any payment with respect to the Senior Indebtedness or (ii) there
shall have occurred an event of default as those terms may be defined in the instrument
under which the same is outstanding (other than a default in the payment of amounts due
thereon) with respect to the Senior Indebtedness, permitting the holders thereof to
accelerate the maturity thereof, and such event of default shall not have been cured or
waived or shall not have ceased to exist.
	 
	 	(b)  	Subject to payment in full of the Senior Indebtedness, the holders of the
Subordinated Notes shall be subrogated to the rights of the holders of Senior Indebtedness
to receive payments or distributions of the assets of the Issuer made on such Senior
Indebtedness until all principal and interest on the Subordinated Notes shall be paid in
full; and for purposes of such subrogation, no payments or distributions to the holders of
Senior Indebtedness of any cash, property or securities to which any holders of the
Subordinated Notes would be entitled except for the subordination provisions of this
Section 7 shall, as between the holders of the Subordinated Notes and the Issuer
and/or its creditors other than the holders of the Senior Indebtedness, be deemed to be a
payment on account of the Subordinated Notes.
	 
	 	(c)  	The provisions of this Section 7 are and are intended solely for the purposes
of defining the relative rights of the holders of the Subordinated Notes and the holders
of Senior Indebtedness and nothing in this Section 7 shall impair, as between the
Issuer and any holders of the Subordinated Notes, the obligation of the Issuer, which is
unconditional and absolute, to pay to the holders of the Subordinated Notes the principal
thereof and interest thereon, in accordance with the terms of the Subordinated Notes, nor
shall anything herein prevent any holders of the Subordinated Notes from exercising all
remedies otherwise permitted by applicable law or hereunder upon default, subject to the
rights set forth above of holders of Senior Indebtedness to receive cash, property or
securities otherwise payable or deliverable to the holders of the Subordinated Notes.
	 
	 	(d)  	Upon any payment (including by redemption) which is not a payment in full of all of
the principal amount and accrued interest of all outstanding Subordinated Notes, the
aggregate amount of the payments shall be allocated to all the Subordinated Notes then
outstanding in proportion to the amounts of principal and interest due thereunder, so that
the amount of principal and interest paid under this Note shall bear the same ratio to the
aggregate principal and accrued interest paid under all of the Subordinated Notes as the
then outstanding principal and accrued interest then owed

 

 

	 	   	under this Note bears to the aggregate principal and accrued interest then owed under all
Subordinated Notes then outstanding.

	68.  	Modification of Note. This Note may be modified only with the written consent of the
Noteholder and the Issuer, provided, however, that no modification of Section 2 shall
be made that would result in either or both of the principal of, and interest on, this Note
being paid sooner or in a greater amount than is provided for under Section 2, above.
To this extent, the holders of the Subordinated Notes shall be deemed beneficiaries of
Section 2 of this Note.

	69.  	Miscellaneous. This Note shall be governed by, and be construed in accordance with, the laws
of the State of Delaware without regard to the conflicts of law rules of such state. The
Issuer hereby waives presentment, demand, notice, protest and all other demands and notices in
connection with the delivery, acceptance, performance and enforcement of this Note, except as
specifically provided herein, and assents to extensions of the time of payment, or forbearance
or other indulgence without notice. The section headings herein are for convenience only and
shall not affect the construction hereof.
	 
	   	THE ISSUER AND THE NOTEHOLDER HEREBY IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS NOTE.

	70.  	Submission to Jurisdiction. The Issuer irrevocably submits to the exclusive jurisdiction of
the state and federal courts located in the State of Delaware for the purposes of any suit,
action or other proceeding arising out of this Note. The Issuer further agrees that service
of any process, summons, notice or document by U.S. registered mail to the Issuer address set
forth below shall be effective service of process for any action, suit or proceeding in the
State of Delaware with respect to any matters to which it has submitted to jurisdiction in
this paragraph. The Issuer irrevocably and unconditionally waives any objection to the laying
of venue of any action, suit or proceeding arising out of this Note in the foregoing courts,
and hereby and thereby further irrevocably and unconditionally waives and agrees not to plead
or claim in any such court that any such action, suit or proceeding brought in any such court
has been brought in an inconvenient forum.

In Witness Whereof, the Issuer has caused this instrument to be duly executed as of the
date first set forth above.

Sterling Construction Company, Inc.

2751 Centerville Road — Suite 3131

Wilmington, Delaware 19803

	 	 	 	 	 
	By:

	 	/s/ Karen A. Stempinski
	 	 
	

	 	 	 	 
	

	 	Name: Karen A. Stempinski	 	 
	

	 	Title: Treasurer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]