Document:

Form of Amended and Restated Advisory Agreement

 Exhibit 10.8 

AMENDED AND RESTATED ADVISORY AGREEMENT 

BY AND BETWEEN 

STRATEGIC STORAGE TRUST, INC. 

AND 

STRATEGIC STORAGE ADVISOR, LLC 

					
	  
 TABLE OF
CONTENTS
  

	 	 	 	  	PAGE
	   ARTICLE I
	 	 DEFINITIONS
	  	1
			
	   ARTICLE II
	 	 APPOINTMENT
	  	10
			
	   ARTICLE III
	 	 AUTHORITY OF THE ADVISOR
	  	11
	 Section 3.1
	 	General	  	11
	 Section 3.2
	 	Powers of the Advisor	  	11
	 Section 3.3
	 	Approval by Directors	  	11
	 Section 3.4
	 	Modification or Revocation of Authority of Advisor	  	11
			
	   ARTICLE IV
	 	 DUTIES OF THE ADVISOR
	  	11
	 Section 4.1
	 	Organizational and Offering Services	  	11
	 Section 4.2
	 	Acquisition Services	  	12
	 Section 4.3
	 	Asset Management Services and Administrative Services	  	12
			
	   ARTICLE V
	 	 BANK ACCOUNTS
	  	14
			
	   ARTICLE VI
	 	 RECORDS; ACCESS
	  	14
			
	   ARTICLE VII
	 	 OTHER ACTIVITIES OF THE ADVISOR
	  	15
	 Section 7.1
	 	General.	  	15
	 Section 7.2
	 	Policy with Respect to Allocation of Investment Opportunities	  	15
			
	   ARTICLE VIII
	 	 LIMITATIONS ON ACTIVITIES
	  	16
			
	   ARTICLE IX
	 	 FEES
	  	16
	 Section 9.1
	 	Advisor Acquisition Fees	  	16
	 Section 9.2
	 	Asset Management Fee	  	16
	 Section 9.4
	 	Disposition Fees	  	16
	 Section 9.5
	 	Subordinated Share of Net Sale Proceeds	  	17
	 Section 9.6
	 	Subordinated Incentive Fee Due Upon Listing	  	17
	 Section 9.7
	 	Changes to Fee Structure	  	17
			
	   ARTICLE X
	 	 EXPENSES
	  	18
	 Section 10.1
	 	Reimbursable Expenses	  	18
	 Section 10.2
	 	Other Services	  	19
	 Section 10.3
	 	Timing of and Limitations on Reimbursements	  	19
			
	   ARTICLE XI
	 	 FIDELITY BOND
	  	20
			
	   ARTICLE XII
	 	 RELATIONSHIP OF THE ADVISOR AND COMPANY
	  	20
			
	   ARTICLE XIII
	 	 RELATIONSHIP WITH DIRECTORS
	  	20
			
	   ARTICLE XIV
	 	 REPRESENTATIONS AND WARRANTIES
	  	21
	 Section 14.1
	 	The Company	  	21
	 Section 14.2
	 	The Advisor	  	21

  

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	   ARTICLE XV
	 	 TERM; TERMINATION OF AGREEMENT
	  	22
	 Section 15.1
	 	 Term
	  	22
	 Section 15.2
	 	 Termination by Either Party
	  	22
	 Section 15.3
	 	 Termination by the Advisor
	  	22
	 Section 15.4
	 	 Termination by the Company
	  	22
	 Section 15.2
	 	 Survival
	  	22
			
	   ARTICLE XVI
	 	 PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION
	  	22
	 Section 16.1
	 	 Reimbursable Expenses and Earned Fees
	  	22
	 Section 16.2
	 	 Subordinated Performance Fee Due Upon Termination
	  	23
	 Section 16.3
	 	 Advisor’s Duties Upon Termination
	  	23
			
	   ARTICLE XVII
	 	 ASSIGNMENT TO AN AFFILIATE
	  	23
			
	   ARTICLE XVIII
	 	 INDEMNIFICATION BY THE COMPANY
	  	24
	 Section 18.1
	 	 Conditions of Indemnification
	  	24
			
	   ARTICLE XIX
	 	 INDEMNIFICATION BY ADVISOR
	  	24
			
	   ARTICLE XX
	 	 LIMITATION OF LIABILITY
	  	25
			
	   ARTICLE XXI
	 	 NOTICES
	  	25
			
	   ARTICLE XXII
	 	 MODIFICATION
	  	25
			
	   ARTICLE XXIII
	 	 SEVERABILITY
	  	26
			
	   ARTICLE XXIV
	 	 CONSTRUCTION/GOVERNING LAW
	  	26
			
	   ARTICLE XXV
	 	 ENTIRE AGREEMENT
	  	26
			
	   ARTICLE XXVI
	 	 INDULGENCES, NOT WAIVERS
	  	26
			
	   ARTICLE XXVII
	 	 GENDER
	  	26
			
	   ARTICLE XXVIII
	 	 TITLES NOT TO AFFECT INTERPRETATION
	  	26
			
	   ARTICLE XXIX
	 	 EXECUTION IN COUNTERPARTS
	  	27
			
	   ARTICLE XXX
	 	 INITIAL INVESTMENT
	  	27

  

 ii 

 AMENDED AND RESTATED ADVISORY AGREEMENT 

THIS AMENDED AND RESTATED ADVISORY AGREEMENT, dated as of         
    , 2011, is entered into between STRATEGIC STORAGE TRUST, INC., a Maryland corporation (the “Company”), and STRATEGIC STORAGE ADVISOR, LLC, a Delaware limited liability company (the “Advisor”).

 W I T N E S S E T H 

WHEREAS, on March 17, 2008, the Company and the Advisor entered into an advisory agreement; 

WHEREAS, on March 28, 2009, the Advisor and the Company amended the advisory agreement to clarify the definition of “Capped
O&O Expenses;” 
 WHEREAS, the Company elected to qualify as a REIT for federal income tax purposes for the taxable
year ended December 31, 2008; 
 WHEREAS, the Company desires to continue to avail itself of the experience, sources of
information, advice, assistance and certain facilities available to the Advisor and its Affiliates and to have the Advisor continue to undertake the duties and responsibilities hereinafter set forth, on behalf of, and subject to the supervision of
the Board of Directors of the Company all as provided herein; and 
 WHEREAS, the Advisor is willing to undertake to render such
services, subject to the supervision of the Board of Directors, on the revised terms and conditions hereinafter set forth. 

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements contained herein, the parties hereto agree
as follows: 
 ARTICLE I 

DEFINITIONS 

As used in this Advisory Agreement, the following terms have the definitions hereinafter indicated: 

“Acquisition Expenses” means expenses related to the Company’s sourcing, selection, evaluation and acquisition of, and
investment in, Properties, whether or not acquired or made, including but not limited to legal fees and expenses, travel and communications expenses, costs of financial analysis, appraisals and surveys, nonrefundable option payments on Property not
acquired, accounting fees and expenses, computer use-related expenses, architectural and engineering reports, environmental reports, title insurance and escrow fees, and personnel and other direct expenses related to the selection and acquisition of
Properties. 
 “Acquisition Fee” means any and all fees and commissions, exclusive of Acquisition Expenses, paid by
any Person to any other Person (including any fees or commissions paid by or to any Affiliate of the Company or the Advisor) in connection with the making or investing in mortgage loans or the purchase, development or construction of a Property,
including, without limitation, real estate commissions, acquisition fees, finder’s fees, selection fees, Development Fees and Construction Fees (except as provided in the following sentence), nonrecurring management fees, consulting fees, loan
fees, points, or any other fees or commissions of a similar nature. Excluded shall be any commissions or fees incurred in connection with the leasing of any Property, and Development Fees or Construction Fees paid

  

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to any Person or entity not affiliated with the Advisor in connection with the actual development and construction of any Property. This fee is paid to the Advisor in the amount established
pursuant to Section 9.1 for the services provided to the Company described in Section 4.2. 
 “Advisor”
means the Person responsible for directing or performing the day-to-day business affairs of the Company, including a Person to which an Advisor subcontracts substantially all such functions. The Advisor is Strategic Storage Advisor, LLC or any
Person which succeeds it in such capacity. 
 “Advisory Agreement” means this amended and restated advisory agreement
between the Company and the Advisor pursuant to which the Advisor will direct or perform the day-to-day business affairs of the Company, as it may be further amended or restated from time to time. 

“Affiliate” or “Affiliated” means, as to any individual, corporation, partnership, trust, limited liability company
or other legal entity (other than the Company): (a) any Person or entity, directly or indirectly owning, controlling, or holding with power to vote ten percent (10%) or more of the outstanding voting Securities of another Person or entity;
(b) any Person ten percent (10%) or more of whose outstanding voting Securities are directly or indirectly owned, controlled or held, with power to vote, by such other Person; (c) any Person or entity directly or indirectly through
one or more intermediaries controlling, controlled by, or under common control with another Person or entity; (d) any officer, director, general partner or trustee of such Person or entity; and (e) if such other Person or entity is an
officer, director, general partner, or trustee of a Person or entity, the Person or entity for which such Person or entity acts in any such capacity. 

“Appraised Value” means value according to an appraisal made by an Independent Appraiser. 

“Assets” means any and all GAAP assets including but not limited to all real estate investments (real, personal or otherwise),
tangible or intangible, owned or held by, or for the account of, the Company, whether directly or indirectly through another entity or entities, including Properties. 

“Average Invested Assets” means, for a specified period, the average of the aggregate GAAP basis book carrying values of the
Assets invested, directly or indirectly, in equity interests in and loans secured, directly or indirectly, by real estate before reserves for depreciation or bad debts or other similar non-cash reserves, computed by taking the average of such values
at the end of each month during such period. 
 “Asset Management Fee” means the monthly fee paid to the Advisor in
the amount established pursuant to Section 9.2 for the services provided to the Company described in Section 4.3. 

“Board of Directors” or “Board” means the individuals holding such office, as of any particular time, under the
Charter of the Company, whether they are the Directors named therein or additional or successor Directors. 
 “Bylaws”
means the bylaws of the Company, as the same may be amended from time to time. 
 “Capped O&O Expenses” means all
Organizational and Offering Expenses (excluding Sales Commissions and the dealer manager fee) in excess of 3.5% of the Gross Proceeds raised in a completed Offering other than Gross Proceeds from Stock sold pursuant to the Distribution Reinvestment
Plan. 
  

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 “Cash from Financings” means the net cash proceeds realized by the Company from
the financing of Property or from the refinancing of any Company indebtedness. 
 “Cash from Sales” means the net cash
proceeds realized by the Company from the sale, exchange or other disposition of any of its Properties after deduction of all expenses incurred in connection therewith. Cash from Sales shall not include Cash from Financings. 

“Charter” means the charter of the Company, including the articles of incorporation and all articles of amendment, articles of
amendment and restatement, articles supplementary and other modifications thereto as filed with the State Department of Assessments and Taxation of the State of Maryland. 

“Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto. Reference to
any provision of the Code shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted by any applicable regulations as in effect from time to time. 

“Common Stock” means shares of the Company’s common stock, $.001 par value per share, the terms and conditions of which
are set forth in the Charter. 
 “Common Stockholders” means holders of shares of Common Stock. 

“Company” means Strategic Storage Trust, Inc., a corporation organized under the laws of the State of Maryland. 

“Competitive Real Estate Commission” means a real estate or brokerage commission paid for the purchase or sale of a Property
that is reasonable, customary and competitive in light of the size, type and location of the Property. 
 “Construction
Fee” means a fee or other remuneration for acting as general contractor and/or construction manager to construct, supervise or coordinate leasehold or other improvements or projects, or to provide major repairs or rehabilitation for a Property.

 “Contract Purchase Price” means the amount actually paid or allocated in respect of the purchase, development,
construction, or improvement of a Property, exclusive of Acquisition Fees and Acquisition Expenses. 
 “Contract Sales
Price” means the total consideration provided for in the sales contract for the sale of a Property. 
 “Dealer
Manager” means U.S. Select Securities LLC, an Affiliate of the Advisor, or such other Person or entity selected by the Board of Directors to act as the dealer manager for the offering of the Stock. U.S. Select Securities LLC is a member of the
Financial Industry Regulatory Authority. 
 “Development Fee” means a fee for the packaging of a Property, including
negotiating and approving plans, and undertaking to assist in obtaining zoning and necessary variances and financing for the specific Property, either initially or at a later date. 

“Director” means an individual who is a member of the Board of Directors. 

 

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 “Disposition Fee” means the fee paid to the Advisor in connection with the sale of
a property as described in Section 9.3 of this Advisory Agreement. 
 “Distribution Reinvestment Plan” has the
meaning set forth in Section 8.8 of the Charter. 
 “Distributions” means any dividends or other distributions of
money or other property paid by the Company to the holders of Common Stock or preferred stock, including dividends that may constitute a return of capital for federal income tax purposes. 

“Excess Expense Guidelines” has the meaning set forth in Section 10.3(c) hereof. 

“Excluded Assets” means those assets acquired as part of the mergers with Self Storage REIT, Inc. and Self Storage REIT II,
Inc. 
 “GAAP” means generally accepted accounting principles consistently applied as used in the United States.

 “Gross Proceeds” means the aggregate purchase price of all Stock sold for the account of the Company, including
Stock sold pursuant to the Distribution Reinvestment Plan, without deduction for Sales Commissions, volume discounts, fees paid to the Dealer Manager or other Organization and Offering Expenses. Gross Proceeds does not include Stock issued in
exchange for OP Units. 
 “Independent Appraiser” means a person or entity, who is not an Affiliate of the Advisor or
the Directors, who is engaged to a substantial extent in the business of rendering opinions regarding the value of assets of the type held by the Company, and who is a qualified appraiser of real estate as determined by the Board. Membership in a
nationally recognized appraisal society such as the American Institute of Real Estate Appraisers or the Society of Real Estate Appraisers shall be conclusive evidence of such qualification. 

“Independent Director” means a Director who is not, and within the last two (2) years has not been, directly or indirectly
associated with the Advisor or the Sponsor by virtue of (a) ownership of an interest in the Advisor, the Sponsor or their Affiliates, (b) employment by the Advisor, the Sponsor or their Affiliates, (c) service as an officer or
director of the Advisor, the Sponsor or their Affiliates, (d) performance of services, other than as a Director, for the Company, (e) service as a director or trustee of more than three (3) real estate investment trusts organized by
the Advisor or the Sponsor or advised by the Advisor, or (f) maintenance of a material business or professional relationship with the Advisor, the Sponsor or any of their Affiliates. A business or professional relationship is considered
material if the gross revenue derived by the Director from the Advisor, the Sponsor and Affiliates exceeds five percent (5%) of either the Director’s annual gross revenue during either of the last two (2) years or the Director’s
net worth on a fair market value basis. An indirect relationship shall include circumstances in which a Director’s spouse, parents, children, siblings, mothers- or fathers-in-law, sons- or daughters-in-law or brothers- or sisters-in-law are or
have been associated with the Advisor, the Sponsor, any of their Affiliates or the Company. 
 “Initial Public
Offering” means the offering and sale of Common Stock of the Company pursuant to the Company’s first effective registration statement covering such Common Stock filed under the Securities Act of 1933. 

“Invested Capital” means the amount calculated by multiplying the total number of shares of Common Stock purchased by
Stockholders by (a) the Offering Price for the Stock or (b) for Stock not purchased in an Offering, the issue price for the Stock; in each case reduced by any 

 

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Distributions, other than stock dividends which represent a return of capital, and any amounts paid by the Company to repurchase shares of Stock pursuant to a plan for repurchase of the
Company’s Stock. 
 “Joint Venture” or “Joint Ventures” means those joint venture or general
partnership arrangements in which the Company or the Operating Partnership is a co-venturer or general partner which are established to acquire Properties. 

“Listed” means the Securities are approved for trading on a national securities exchange. The term “Listing” shall
have the correlative meaning. 
 “Managed Assets” means, solely for the purposes of Section 9.2, Average Invested
Assets minus Excluded Assets. 
 “Market Value” means the aggregate market value of all of the outstanding Common
Stock, measured by taking the average closing price or average of bid and asked price, as the case may be, during the consecutive 30-day period commencing one hundred eighty (180) days following Listing. 

“Modified Funds From Operations” means the National Association of Real Estate Investment Trusts (“NAREIT”)
definition of funds from operations with adjustments which include, but are not limited to, (i) acquisition fees and expenses; (ii) non-cash amounts related to straight line rent and the amortization of above or below market intangible
lease assets and liabilities; (iii) accretion of discounts and amortization of premiums on debt investments; (iv) amortization of mark-to-market adjustments of above/below market debt assumed in connection with property acquisitions;
(v) amortization of deferred financing costs; (vi) impairments of real-estate related investments (including properties, loans receivable, and equity and debt securities investments); (vii) gains (losses) from the early extinguishment
of debt; (viii) gains (losses) on the extinguishment or sales of hedges, foreign exchange, securities and other derivatives holdings except where the trading of such instruments is a fundamental attribute of our business plan;
(ix) unrealized gains (losses) from mark-to-market adjustments on (a) interest rate swaps and derivatives not deemed hedges; (b) foreign exchange holdings; (c) other securities; and (d) consolidation from, or deconsolidation
to, equity accounting; and elimination of adjustments relating to contingent purchase price obligations where such adjustments have been included in the derivation of GAAP net income. 

“NASAA” means the North American Securities Administrators Association, Inc. 

“NASAA Net Income” means for any period, the total revenues applicable to such period, less the total expenses applicable to
such period excluding additions to reserves for depreciation, bad debts or other similar non-cash reserves; provided, however, NASAA Net Income for purposes of calculating total allowable Operating Expenses shall exclude the gain or loss from the
sale of the Company’s Assets. 
 “NASAA REIT Guidelines” means the Statement of Policy Regarding Real Estate
Investment Trusts published by the North American Securities Administrators Association, Inc. as revised and adopted by the NASAA membership on May 7, 2007, as may be amended from time to time. 

“Net Asset Value” means the total Assets including intangible assets relating to SFAS No. 141, Business Combinations, and
SFAS No. 142, Goodwill and Other Intangible Assets (but not including other GAAP intangibles) at cost before deducting depreciation or other non-cash reserves less total liabilities, calculated at least quarterly on a basis consistently
applied. 
  

 5 

 “Net Sale Proceeds” means in the case of a transaction described in clause
(a) of the definition of Sale, the net proceeds of any such transaction less the amount of all real estate commissions and closing costs paid by the Operating Partnership. In the case of a transaction described in clause (b) of such
definition, Net Sale Proceeds means the net proceeds of any such transaction less the amount of any legal and other selling expenses incurred by the Operating Partnership in connection with such transaction. In the case of a transaction described in
clause (c) of such definition, Net Sale Proceeds means the net proceeds of any such transaction actually distributed to the Operating Partnership from the Joint Venture less any expenses incurred by the Operating Partnership in connection with
such transaction. In the case of a transaction or series of transactions described in clause (d) of the definition of Sale, Net Sale Proceeds means the net proceeds of any such transaction less the amount of all commissions and closing costs
paid by the Operating Partnership. In the case of a transaction described in clause (e) of such definition, Net Sale Proceeds means the net proceeds of any such transaction less the amount of all selling costs and other expenses incurred by the
Operating Partnership in connection with such transaction. Net Sale Proceeds shall also include, in the case of any lease of a Property consisting of a building only, any amounts from tenants, borrowers or lessees that the Company, as general
partner of the Operating Partnership determines, in its discretion, to be economically equivalent to the proceeds of a Sale. Net Sale Proceeds shall not include any amounts used to repay outstanding indebtedness secured by the asset disposed of in
the sale. 
 “Offering” means an offering of Stock that is registered with the SEC, excluding Stock offered under any
employee benefit plan. 
 “Offering Price” means, with respect to each share of Stock, the highest price at which such
Stock was offered by the Company in the Offering pursuant to which such Stock was issued, without regard to any price reductions for certain types of purchasers or volume discounts. 

“Operating Expenses” means all direct and indirect costs and expenses incurred by the Company, as determined under GAAP, which
in any way are related to the operation of the Company or to Company business, including advisory fees, but excluding (a) the expenses of raising capital such as Organizational and Offering Expenses, legal, audit, accounting, underwriting,
brokerage, listing, registration, and other fees, printing and other such expenses and taxes incurred in connection with the issuance, distribution, transfer, registration and Listing of the Stock, (b) interest payments, (c) taxes,
(d) non-cash expenditures such as depreciation, amortization and bad debt reserves, (e) Acquisition Fees and Acquisition Expenses, (f) real estate commissions on the Sale of Property, and other expenses connected with the acquisition
and ownership of real estate interests, mortgage loans, or other property (such as the costs of foreclosure, insurance premiums, legal services, maintenance, repair, and improvement of property) and (g) any incentive fees which may be paid in
compliance with the NASAA REIT Guidelines. The definition of “Operating Expenses” set forth above is intended to encompass only those expenses which are required to be treated as Operating Expenses under the NASAA REIT Guidelines. As a
result, and notwithstanding the definition set forth above, any expense of the Company which is not an Operating Expense under the NASAA REIT Guidelines shall not be treated as an Operating Expense for purposes hereof. 

“Operating Partnership” means Strategic Storage Operating Partnership, L.P. which is the partnership through which the Company
may own Properties. 
 “Operating Partnership Agreement” means the First Amended and Restated Limited Partnership
Agreement of the Operating Partnership, as amended and restated from time to time. 
 “OP Unit” means a unit of
limited partnership interest in the Operating Partnership. 
  

 6 

 “Organizational and Offering Expenses” means any and all costs and expenses
incurred by the Company, the Advisor or any Affiliate of either in connection with and in preparing the Company for registration of and subsequently offering and distributing its Stock to the public, which may include but are not limited to total
underwriting and brokerage discounts and commissions (including fees of the underwriters’ attorneys), legal, accounting and escrow fees, expenses for printing, engraving, amending, supplementing and mailing, distribution costs, compensation to
employees while engaged in registering, marketing and wholesaling the Stock, telegraph and telephone costs, all advertising and marketing expenses (including the costs related to investor and broker-dealer sales meetings), charges of transfer
agents, registrars, trustees, escrow holders, depositories, experts, and fees, expenses and taxes related to the filing, registration and qualification of the sale of the Securities under Federal and State laws, including accountants’ and
attorneys’ fees and other accountable offering expenses. Organization and Offering Expenses may include, but are not limited to: (a) amounts to reimburse the Advisor for all marketing related costs and expenses such as compensation to and
direct expenses of the Advisor’s employees or employees of the Advisor’s Affiliates in connection with registering and marketing the Stock; (b) compensation to and direct expenses of employees of the Dealer Manager while preparing for
the offering and marketing of the Stock and in connection with their wholesaling activities but not Sales Commissions; (c) travel and entertainment expenses related to the offering and marketing of the Stock; (d) facilities and technology
costs and other costs and expenses associated with the offering and to facilitate the marketing of the Stock including web site design and management; (e) costs and expenses of conducting training and educational conferences and seminars;
(f) costs and expenses of attending broker-dealer sponsored retail seminars or conferences; and (g) payment or reimbursement of bona fide due diligence expenses. 

“Performance Fee Note” has the meaning set forth in Section 16.2 hereof. 

“Person” shall mean any natural person, partnership, corporation, association, trust, limited liability company or other legal
entity. 
 “Property” or “Properties” means the real properties or real estate investments which are
acquired by the Company either directly or through the Operating Partnership, Joint Ventures, partnerships or other entities. 

“Property Manager” means any entity that has been retained to perform and carry out at one or more of the Properties property
management services. 
 “Prospectus” means any document, notice, or other communication satisfying the standards set
forth in Section 10 of the Securities Act of 1933, and contained in a currently effective registration statement filed by the Company with, and declared effective by, the SEC, or if no registration statement is currently effective, then the
Prospectus contained in the most recently effective registration statement. 
 “Public Offering” means the Initial
Public Offering or any subsequent offering of Stock that is registered with the SEC, excluding Stock offered under any employee benefit plan. 

“Registration Statement” means a registration statement filed by the Company with the Securities and Exchange Commission on
Form S-11, as amended from time to time, in connection with a Public Offering. 
 “REIT” means a corporation, trust or
association which is engaged in investing in equity interests in real estate (including fee ownership and leasehold interests and interests in partnerships and 

 

 7 

 
Joint Ventures holding real estate) or in loans secured by mortgages on real estate or both and that qualifies as a real estate investment trust under the REIT Provisions of the Code. 

“REIT Provisions of the Code” means Sections 856 through 860 of the Code and any successor or other provisions of the Code
relating to real estate investment trusts (including provisions as to the attribution of ownership of beneficial interests therein) and the regulations promulgated thereunder. 

“REIT Stock Amount” has the meaning set forth in the Operating Partnership Agreement. 

“Sale” or “Sales” means any transaction or series of transactions whereby: (a) the Operating Partnership sells,
grants, transfers, conveys or relinquishes its ownership of any Property or portion thereof, including the lease of any Property consisting of the building only, and including any event with respect to any Property which gives rise to a significant
amount of insurance proceeds or condemnation awards; (b) the Operating Partnership sells, grants, transfers, conveys or relinquishes its ownership of all or substantially all of the interest of the Operating Partnership in any Joint Venture in
which it is a co-venturer or partner; (c) any Joint Venture in which the Operating Partnership is a co-venturer or partner sells, grants, transfers, conveys or relinquishes its ownership of any Property or portion thereof, including any event
with respect to any Property which gives rise to insurance claims or condemnation awards; (d) the Operating Partnership sells, grants, conveys, or relinquishes its interest in any asset, or portion thereof, including any event with respect to
any asset which gives rise to a significant amount of insurance proceeds or similar awards; or (e) the Operating Partnership sells or otherwise disposes of or distributes all of its assets in liquidation of the Operating Partnership.

 “Sales Commissions” means any and all commissions payable to underwriters, dealer managers or other broker-dealers
in connection with the sale of Stock, including, without limitation, commissions payable to the Dealer Manager. 

“Securities” means any class or series of units or shares of the Company or the Operating Partnership, including common shares
or preferred units or shares and any other evidences of equity or beneficial or other interests, voting trust certificates, bonds, debentures, notes or other evidences of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or
in general any instruments commonly known as “Securities” or any certificates of interest, shares or participations in, temporary or interim certificates for, receipts for, guarantees of, or warrants, options or rights to subscribe to,
purchase or acquire, any of the foregoing. 
 “Securities Act” means the Securities Act of 1933, as amended.

 “Sponsor” means Strategic Capital Holdings, LLC, a Virginia limited liability company. 

“Stock” means shares of stock of the Company of any class or series, including Common Stock, preferred stock or
Shares-in-Trust. 
 “Stockholders” means the registered holders of the Company’s Stock. 

“Stockholders’ 10% Return” means, as of any date, an aggregate amount equal to a 10% cumulative, non-compounded, annual
return on Invested Capital; provided, however, that for purposes of calculating the Stockholders’ 10% Return, any stock dividend shall not be included as a Distribution; and provided further that for purposes of determining the
Stockholders’ 10% Return, the return for each portion of the Invested Capital shall commence for purposes of the calculation upon the issuance of the shares issued in connection with such capital. 

 

 8 

 “Stockholders’ 8% Return” means, as of any date, an aggregate amount equal to
a 8% cumulative, non-compounded, annual return on Invested Capital; provided, however, that for purposes of calculating the Stockholders’ 8% Return, any stock dividend shall not be included as a Distribution; and provided further that for
purposes of determining the Stockholders’ 8% Return, the return for each portion of the Invested Capital shall commence for purposes of the calculation upon the issuance of the shares issued in connection with such capital. 

“Stockholders’ 6% Return” means, as of any date, an aggregate amount equal to a 6% cumulative, non-compounded, annual
return on Invested Capital; provided, however, that for purposes of calculating the Stockholders’ 6% Return, any stock dividend shall not be included as a Distribution; and provided further that for purposes of determining the
Stockholders’ 6% Return, the return for each portion of the Invested Capital shall commence for purposes of the calculation upon the issuance of the shares issued in connection with such capital. 

“Subordinated Incentive Fee Due Upon Listing” means: 

(a) 5% of the amount by which (i) the Market Value, plus the total of all Distributions paid to Stockholders of Common Stock
(excluding any stock dividends and Distributions paid on shares of Common Stock redeemed by the Company) from the Company’s inception until the date that Market Value is determined, exceeds (ii) the sum of (A) Invested Capital and
(B) the total Distributions required to be paid to Stockholders of Common Stock in order to pay the Stockholders’ 6% Return or more but less than Stockholders’ 8% Return from inception through the date Market Value is determined; or

 (b) 10% of the amount by which (i) the Market Value, plus the total of all Distributions paid to Common Stockholders
(excluding any stock dividends and Distributions paid on shares of Common Stock redeemed by the Company) from the Company’s inception until the date that Market Value is determined, exceeds (ii) the sum of (A) Invested Capital and
(B) the total Distributions required to be paid to Common Stockholders in order to pay the Stockholders’ 8% Return or more but less than Stockholders’ 10% Return from inception through the date Market Value is determined; or

 (c) 15% of the amount by which (i) the Market Value, plus the total of all Distributions paid to Common Stockholders
(excluding any stock dividends and Distributions paid on shares of Common Stock redeemed by the Company) from the Company’s inception until the date that Market Value is determined, exceeds (ii) the sum of (A) Invested Capital and
(B) the total Distributions required to be paid to Common Stockholders in order to pay the Stockholders’ 10% Return or more from inception through the date Market Value is determined. 

In the event that the Subordinated Incentive Fee Due Upon Listing is paid to the Advisor, thereafter, the Advisor will not be entitled to
receive any payments of Subordinated Performance Fee Due Upon Termination or Subordinated Share of Net Sale Proceeds. 

“Subordinated Performance Fee Due Upon Termination” means: 

(a) 5% of the amount, if any, by which (i) the Appraised Value of the Properties at the Termination Date, less amounts of all
indebtedness secured by the Properties, plus total Distributions (excluding any stock dividend and Distributions paid on shares of Common Stock redeemed by the Company pursuant to its share redemption program) through the Termination Date exceeds
(ii) the sum of Invested Capital plus total Distributions required to be made to the Common Stockholders in order to pay the Stockholders’ 6% Return or more but less than Stockholders’ 8% Return from inception through the Termination
Date; or 
  

 9 

 (b) 10% of the amount, if any, by which (i) the Appraised Value of the Properties at
the Termination Date, less amounts of all indebtedness secured by the Properties, plus total Distributions (excluding any stock dividend and Distributions paid on shares of Common Stock redeemed by the Company pursuant to its share redemption
program) through the Termination Date exceeds (ii) the sum of Invested Capital plus total Distributions required to be made to the Common Stockholders in order to pay the Stockholders’ 8% Return or more but less than Stockholders’ 10%
Return from inception through the Termination Date; or 
 (c) 15% of the amount, if any, by which (i) the Appraised Value
of the Properties at the Termination Date, less amounts of all indebtedness secured by the Properties, plus total Distributions (excluding any stock dividend and Distributions paid on shares of Common Stock redeemed by the Company pursuant to its
share redemption program) through the Termination Date exceeds (ii) the sum of Invested Capital plus total Distributions required to be made to the Common Stockholders in order to pay the Stockholders’ 10% Return or more from inception
through the Termination Date; 
 Such fee shall be reduced by any prior payment to the Advisor of a Subordinated Share of Net
Sale Proceeds. 
 “Subordinated Share of Net Sale Proceeds” means a fee equal to: 

(a) 5% of Net Sale Proceeds remaining after the Common Stockholders have received Distributions of Net Sale Proceeds such that the owners
of all outstanding shares of Common Stock have received Distributions in an aggregate amount equal to the sum of (i) the Stockholders’ 6% Return or more but less than Stockholders’ 8% Return and (ii) Invested Capital. 

(b) 10% of Net Sale Proceeds remaining after the Common Stockholders have received Distributions of Net Sale Proceeds such that the
owners of all outstanding shares of Common Stock have received Distributions in an aggregate amount equal to the sum of (i) the Stockholders’ 8% Return or more but less than Stockholders’ 10% Return and (ii) Invested Capital.

 (c) 15% of Net Sale Proceeds remaining after the Common Stockholders have received Distributions of Net Sale Proceeds such
that the owners of all outstanding shares of Common Stock have received Distributions in an aggregate amount equal to the sum of (i) the Stockholders’ 10% Return or more and (ii) Invested Capital. 

When determining whether the above thresholds have been met: (y) Distributions paid on shares of Common Stock redeemed by the
Company (and thus not included in the determination of Invested Capital), shall not be included as a Distribution; and (z) Net Sale Proceeds shall not be considered available for purposes of determining whether the thresholds in subparagraphs
(b) and (c) have been met to the extent of payments out of Net Sale Proceeds are used to pay the Subordinated Share of Net Sale Proceeds pursuant to subparagraphs (a) and (b), respectively. Following Listing, no Subordinated Share of
Net Sale Proceeds will be paid to the Advisor. 
 “Termination Date” means the date of termination of this Advisory
Agreement. 
 ARTICLE II 

APPOINTMENT 

The Company, through the powers vested in the Board of Directors including a majority of all Independent Directors, hereby appoints the
Advisor to serve as its advisor and asset manager on the terms and conditions set forth in this Advisory Agreement, and the Advisor hereby accepts such appointment. 

 

 10 

 
The Advisor undertakes to use its commercially reasonable best efforts to present to the Company potential investment opportunities and to provide a continuing and suitable investment program
consistent with the investment objectives and policies of the Company as determined and adopted from time to time by the Board. 

ARTICLE III 

AUTHORITY OF THE ADVISOR 

Section 3.1 General. All rights and powers to manage and control the day-to-day business and affairs of the
Company shall be vested in the Advisor. The Advisor shall have the power to delegate all or any part of its rights and powers to manage and control the business and affairs of the Company to such officers, employees, Affiliates, agents and
representatives of the Advisor or the Company as it may from time to time deem appropriate. Any authority delegated by the Advisor to any other Person shall be subject to the limitations on the rights and powers of the Advisor specifically set forth
in this Advisory Agreement, the Charter and the Bylaws. 
 Section 3.2 Powers of the Advisor. Subject to the
express limitations set forth in this Advisory Agreement and subject to the supervision of the Board, the power to direct the management, operation and policies of the Company shall be vested in the Advisor, which shall have the power by itself and
shall be authorized and empowered on behalf and in the name of the Company to carry out any and all of the objectives and purposes of the Company and to perform all acts and enter into and perform all contracts and other undertakings that it may in
its sole discretion deem necessary, advisable or incidental thereto to perform its obligations under this Advisory Agreement. 

Section 3.3 Approval by Directors. Notwithstanding the foregoing, any investment in Properties, including any
acquisition of a Property by the Company or any investment by the Company in a joint venture, limited partnership or similar entity owning real properties, will require the prior approval of the Board of Directors or a committee of the Board
constituting a majority of the Board. The Advisor will deliver to the Board of Directors all documents required by it to properly evaluate the proposed investment. 

Section 3.4 Modification or Revocation of Authority of Advisor. The Board may, at any time upon the giving of notice
to the Advisor, modify or revoke the authority or approvals set forth in Articles III and IV, provided however, that such modification or revocation shall be effective upon receipt by the Advisor and shall not be applicable to investment
transactions to which the Advisor has committed the Company prior to the date of receipt by the Advisor of such notification. 

ARTICLE IV 

DUTIES OF THE ADVISOR 

The Advisor undertakes to use its commercially reasonable best efforts to present to the Company potential investment opportunities and
to provide a continuing and suitable investment program consistent with the investment objectives and policies of the Company as determined and adopted from time to time by the Board. In connection therewith, the Advisor agrees to perform the
following services on behalf of the Company. 
 Section 4.1 Organizational and Offering Services. The Advisor
shall manage and supervise: 
 (a) the structure and development of any Offering, including the determination of the specific
terms of the Securities to be offered by the Company; 
  

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 (b) the preparation of all organizational and offering related documents, and obtaining of
all required regulatory approvals of such documents; 
 (c) along with the Dealer Manager, approval of the participating broker
dealers and negotiation of the related selling agreements; 
 (d) coordination of the due diligence process relating to
participating broker dealers and their review of the Prospectus and other Offering and Company documents; 
 (e) preparation and
approval of all marketing materials contemplated to be used by the Dealer Manager or others in an Offering; 
 (f) along with
the Dealer Manager, negotiation and coordination with the transfer agent for the receipt, collection, processing and acceptance of subscription agreements, commissions, and other administrative support functions; 

(g) creation and implementation of various technology and electronic communications related to an Offering; and 

(h) all other services related to organization of the Company or the Offering, whether performed and incurred by the Advisor or its
Affiliates. 
 Section 4.2 Acquisition Services. The Advisor shall: 

(a) serve as the Company’s investment and financial advisor and provide relevant market research and economic and statistical data
in connection with the Company’s assets and investment objectives and policies; 
 (b) subject to Article III hereof and
the investment objectives and policies of the Company: (i) locate, analyze and select potential investments; (ii) structure and negotiate the terms and conditions of transactions pursuant to which investments in Assets will be made;
(iii) acquire Assets on behalf of the Company; and (iv) arrange for financing related to acquisitions of Assets; 

(c) perform due diligence on prospective investments and create due diligence reports summarizing the results of such work; 

(d) prepare reports regarding prospective investments which include recommendations and supporting documentation necessary for the Board
to evaluate the proposed investments; 
 (e) obtain reports (which may be prepared by the Advisor or its Affiliates), where
appropriate, concerning the value of contemplated investments of the Company; and 
 (f) negotiate and execute investments and
other transactions approved by the Board. 
 Section 4.3 Asset Management Services and Administrative
Services. 
 (a) Asset Management and Property Related Services. The Advisor shall: 

(i) negotiate and service the Company’s debt facilities and other financings; 

(ii) monitor applicable markets and obtain reports (which may be prepared by the Advisor or its Affiliates) where appropriate,
concerning the value of investments of the Company; 
  

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 (iii) monitor and evaluate the performance of investments of the Company; provide daily
management services to the Company and perform and supervise the various management and operational functions related to the Company’s investments; 

(iv) coordinate with the Property Manager on its duties under any property management agreement and assist in obtaining all necessary
approvals of major property transactions as governed by the applicable property management agreement; 
 (v) coordinate and
manage relationships between the Company and any joint venture partners; 
 (vi) consult with the officers and Directors of the
Company and provide assistance with the evaluation and approval of potential property dispositions, sales or refinancings; and 

(vii) provide the officers and Directors of the Company periodic reports regarding prospective investments in Properties. 

(b) Accounting, SEC Compliance and Other Administrative Services. The Advisor shall: 

(i) coordinate with the Company’s independent accountants and auditors to prepare and deliver to the Board an annual report
covering the Advisor’s compliance with certain material aspects of this Advisory Agreement; 
 (ii) maintain accounting
systems, records and data and any other information requested concerning the activities of the Company as shall be required to prepare and to file all periodic financial reports and returns required to be filed with the SEC and any other regulatory
agency, including annual financial statements; 
 (iii) provide tax and compliance services and coordinate with appropriate
third parties, including independent accountants and other consultants, on related tax matters; 
 (iv) maintain all
appropriate books and records of the Company; 
 (v) provide the officers of the Company and the Board with timely updates
related to the overall regulatory environment affecting the Company, as well as managing compliance with such matters, including but not limited to compliance with the Sarbanes-Oxley Act of 2002; 

(vi) consult with the officers of the Company and the Board relating to the corporate governance structure and appropriate policies and
procedures related thereto; 
 (vii) perform all reporting, record keeping, internal controls and similar matters in a manner
to allow the Company to comply with applicable law including the Sarbanes-Oxley Act of 2002; 
 (viii) investigate, select,
and, on behalf of the Company, engage and conduct business with such Persons as the Advisor deems necessary to the proper performance of its obligations hereunder, including but not limited to consultants, accountants, lenders, technical advisors,
attorneys, brokers, underwriters, corporate fiduciaries, escrow agents, depositaries, custodians, agents for collection, insurers, insurance agents, banks, builders, developers, property owners, mortgagers, construction companies and any and all
Persons acting in any other capacity deemed by the Advisor necessary or desirable for the performance of any of the foregoing services; 
  

 13 

 (ix) supervise the performance of such ministerial and administrative functions as may be
necessary in connection with the daily operations of the Assets; 
 (x) provide the Company with all necessary cash management
services; 
 (xi) consult with the officers of the Company and the Board and assist the Board in evaluating and obtaining
adequate insurance coverage based upon risk management determinations; 
 (xii) manage and perform the various administrative
functions necessary for the management of the day-to-day operations of the Company; 
 (xiii) provide or arrange for
administrative services and items, legal and other services, office space, office furnishings, personnel and other overhead items necessary and incidental to the Company’s business and operations; 

(xiv) provide financial and operational planning services and portfolio management functions; and 

(xv) from time-to-time, or at any time reasonably requested by the Board, make reports to the Board on the Advisor’s performance of
services to the Company under this Advisory Agreement. 
 (c) Stockholder Services. The Advisor shall: 

(i) retain a transfer agent on behalf of the Company to perform all necessary transfer agent functions; 

(ii) manage and coordinate with the transfer agent the quarterly dividend process and payments to Stockholders; 

(iii) manage communications with Stockholders, including answering phone calls, preparing and sending written and electronic reports and
other communications; and 
 (iv) establish technology infrastructure to assist in providing Stockholder support and service.

 ARTICLE V 

BANK ACCOUNTS 

The Advisor may establish and maintain one or more bank accounts in its own name for the account of the Company or in the name of the
Company and may collect and deposit into any such account or accounts, and disburse from any such account or accounts, any money on behalf of the Company, under such terms and conditions as the Board may approve, provided that no funds shall be
commingled with the funds of the Advisor; and the Advisor shall from time to time render appropriate accountings of such collections and payments to the Board and to the auditors of the Company. 

ARTICLE VI 

RECORDS; ACCESS 

The Advisor shall maintain appropriate records of all its activities hereunder and make such records available for inspection by the
Board and by counsel, auditors and authorized agents of the 
  

 14 

 
Company, at any time or from time to time during normal business hours. The Advisor, in the conduct of its responsibilities to the Company, shall maintain adequate and separate books and records
for the Company’s operations in accordance with GAAP, which shall be supported by sufficient documentation to ascertain that such books and records are properly and accurately recorded. Such books and records shall be the property of the
Company. Such books and records shall include all information necessary to calculate and audit the fees or reimbursements paid under this Advisory Agreement. The Advisor shall utilize procedures to attempt to ensure such control over accounting and
financial transactions as is reasonably required to protect the Company’s assets from theft, error or fraudulent activity. All financial statements that the Advisor delivers to the Company shall be prepared on an accrual basis in accordance
with GAAP, except for special financial reports which by their nature require a deviation from GAAP. The Advisor shall maintain necessary liaison with the Company’s independent accountants and shall provide such accountants with such reports
and other information as the Company shall request. The Advisor shall at all reasonable times have access to the books and records of the Company. 

ARTICLE VII 

OTHER ACTIVITIES OF THE ADVISOR 

Section 7.1 General. Nothing herein contained shall prevent the Advisor from engaging in other activities, including,
without limitation, the rendering of advice to other Persons (including other REITs) and the management of other programs advised, sponsored or organized by the Advisor or its Affiliates; nor shall this Advisory Agreement limit or restrict the right
of any director, officer, employee, or stockholder of the Advisor or its Affiliates to engage in any other business or to render services of any kind to any other partnership, corporation, firm, individual, trust or association. The Advisor may,
with respect to any investment in which the Company is a participant, also render advice and service to each and every other participant therein. The Advisor shall report to the Board the existence of any condition or circumstance, existing or
anticipated, of which it has knowledge, which creates or could create a conflict of interest between the Advisor’s obligations to the Company and its obligations to or its interest in any other partnership, corporation, firm, individual, trust
or association. 
 Section 7.2 Policy with Respect to Allocation of Investment Opportunities. Before the
Advisor presents an investment opportunity that would in its judgment be suitable for the Company to another Advisor-sponsored program, the Advisor shall determine in its sole discretion that the investment opportunity is more suitable for such
other program than for the Company based on factors such as the following: the investment objectives and criteria of each program; the cash requirements and anticipated cash flow of each entity; the size of the investment opportunity; the effect of
the acquisition on diversification of each entity’s investments; the income tax consequences of the purchase on each entity; the policies of each program relating to leverage; the amount of funds available to each program and the length of time
such funds have been available for investment. In the event that an investment opportunity becomes available that is, in the sole discretion of the Advisor, equally suitable for both the Company and another Advisor-sponsored program, then the
Advisor may offer the other program the investment opportunity if it has had the longest period of time elapse since it was offered an investment opportunity. The Advisor will use its reasonable efforts to fairly allocate investment opportunities in
accordance with such allocation method and will promptly disclose any material deviation from such policy or the establishment of a new policy, which shall be allowed provided (a) the Board is provided with notice of such policy at least 60
days prior to such policy becoming effective and (b) such policy provides for the reasonable allocation of investment opportunities among such programs. The Advisor shall provide the Independent Directors with any information reasonably
requested so that the Independent Directors can insure that the allocation of investment opportunities is applied fairly. Nothing herein shall be deemed to prevent the Advisor or an Affiliate from pursuing an investment opportunity directly rather
than offering it to the Company or another Advisor-sponsored program so long as the Advisor is fulfilling its obligation to present a continuing and suitable investment program to the 

 

 15 

 
Company which is consistent with the investment policies and objectives of the Company. If a subsequent development, such as a delay in the closing of a property or a delay in the construction of
a property, causes any such investment, in the opinion of the Board of Directors and the Advisor, to be more appropriate for an entity other than the entity which committed to make the investment, however, the Advisor has the right to agree that the
other entity affiliated with the Advisors or its Affiliates may make the investment. 
 ARTICLE VIII 

LIMITATIONS ON ACTIVITIES 

Anything else in this Advisory Agreement to the contrary notwithstanding, the Advisor shall refrain from taking any action which, in its
sole judgment made in good faith, would (a) adversely affect the status of the Company as a REIT, (b) subject the Company to regulation under the Investment Company Act of 1940, as amended, (c) violate any law, rule, regulation or
statement of policy of any governmental body or agency having jurisdiction over the Company, its Stock or its other Securities, or (d) violate the Charter or Bylaws, except if such action shall be ordered by the Board, in which case the Advisor
shall notify promptly the Board of the Advisor’s judgment of the potential impact of such action and shall refrain from taking such action until it receives further clarification or instructions from the Board. In such event the Advisor shall
have no liability for acting in accordance with the specific instructions of the Board so given. Notwithstanding the foregoing, the Advisor, its directors, officers, employees and stockholders, and stockholders, directors and officers of the
Advisor’s Affiliates shall not be liable to the Company or to the Board or Stockholders for any act or omission by the Advisor, its directors, officers or employees, or stockholders, directors or officers of the Advisor’s Affiliates except
as provided in this Advisory Agreement. 
 ARTICLE IX 

FEES 

Section 9.1 Acquisition Fees. The Company will pay the Advisor, as compensation for the services described in
Section 4.2, Acquisition Fees in an amount equal to 2.5% of the Contract Purchase Price of each Property at the time and in respect of funds expended for the acquisition or development of a Property. The total of all Acquisition Fees and
Acquisition Expenses shall be limited in accordance with the Charter. 
 Section 9.2 Asset Management Fee.
Commencing on the date hereof, the Company shall pay the Advisor an Asset Management Fee in an amount equal to one-twelfth of 1.0% per month of the Managed Assets. Once the Managed Assets exceeds $500 million, we will pay one-twelfth of 0.75%
on the amount of the Managed Assets that exceeds $500 million; provided however, if our Modified Funds From Operations (“MFFO”) including payment of the Asset Management Fee equals or exceeds 100% of our distributions in any month, we will
pay up to an additional one-twelfth of 0.25% on the amount of the Managed Assets that exceeds $500 million for that month in an amount that allows us to maintain such 100% coverage. 

Section 9.3 Disposition Fees. If the Advisor or an Affiliate provides a substantial amount of the services (as
determined by a majority of the Directors, including a majority of the Independent Directors) in connection with the Sale of one or more Properties, the Advisor or such Affiliate shall receive at closing a Disposition Fee of up to 3% of the Contract
Sales Price of such Property or Properties. Any Disposition Fee payable under this section may be paid in addition to real estate commissions paid to non-Affiliates, provided that the total real estate commissions (including such Disposition Fee)
paid to all Persons by the Company for each Property shall not exceed an amount equal to the lesser of (i) 6% of the aggregate Contract Sales Price of each Property or (ii) the Competitive Real

  

 16 

 
Estate Commission for each Property. The Company will pay the Disposition Fee for a property at the time the property is sold. Payment of such fee shall be subordinated to receipt by stockholders
of Stockholders’ 6% Return. If, at the time of a sale, payment of the Disposition Fee is deferred because the subordination conditions have not been satisfied, then the Disposition Fee shall be paid at such later time as the subordination
conditions are satisfied. 
 Section 9.4 Subordinated Share of Net Sale Proceeds. The Subordinated Share of
Net Sale Proceeds shall be payable to the Advisor at the time or times that the Company determines that the Subordinated Share of Net Sale Proceeds has been earned by the Advisor, provided that no Subordinated Share of Net Sale Proceeds will be paid
if the Company has paid or is obligated to pay the Subordinated Incentive Fee Due Upon Listing. In the case of multiple advisors, advisors and Affiliates shall be allowed incentive fees in accordance with the foregoing limitation, provided such fees
are distributed by a proportional method reasonably designed to reflect the value added to the Company’s Assets by each respective advisor or Affiliate. 

Section 9.5 Subordinated Incentive Fee Due Upon Listing. Upon Listing, and as soon as practicable following the
determination of Market Value, the Advisor shall be entitled to the Subordinated Incentive Fee Due Upon Listing. The Subordinated Incentive Fee Due Upon Listing shall be due and payable to the Advisor no earlier than one hundred eighty
(180) days after Listing in the form of a promissory note (the “Listing Fee Note”). In the event the Subordinated Incentive Fee Due Upon Listing is paid to the Advisor following Listing, the Advisor will not be entitled to receive any
payments of Subordinated Performance Fee Due Upon Termination or Subordinated Share of Net Sale Proceeds following receipt of the Subordinated Incentive Fee Due Upon Listing. The Company shall repay the Listing Fee Note at such time as the Company
completes the first Sale or refinancing of a Property held one hundred eighty (180) days after Listing using Cash from Sales or Cash from Financings in an amount equal to the value such Property contributed to the Listing Fee Note. If such
amount is insufficient to pay the Listing Fee Note in full, then the Listing Fee Note shall be paid in part from the Cash from Sales from the first Sale or Cash from Financings from the first refinancing of a Property held one hundred eighty
(180) days after Listing, and in part from the Cash from Sales from each successive Sale or Cash from Financings from each successive refinancing of Properties held one hundred eighty (180) days after Listing in an amount equal to the
value such Properties contributed to the Listing Fee Note until the Listing Fee Note is repaid in full. If the Listing Fee Note has not been paid in full within three (3) years after one hundred eighty (180) days after Listing, then
the holder of the Listing Fee Note, its successors or assigns, may elect to convert the balance of the fee into Common Stock at a price per share equal to the average closing price of the shares of Common Stock over the ten (10) trading days
immediately preceding the date of such election if the Common Stock is Listed at such time.
 Section 9.6 Changes to
Fee Structure. In the event of Listing, the Company and the Advisor shall negotiate in good faith to establish a fee structure appropriate for a perpetual-life entity. A majority of the Independent Directors must approve the new fee
structure negotiated with the Advisor. In negotiating a new fee structure, the Independent Directors shall consider all of the factors they deem relevant, including, but not limited to: (a) the amount of the advisory fee in relation to the
asset value, composition and profitability of the Company’s portfolio; (b) the success of the Advisor in generating opportunities that meet the investment objectives of the Company; (c) the rates charged to other REITs and to
investors other than REITs by advisors performing the same or similar services; (d) additional revenues realized by the Advisor and its Affiliates through their relationship with the Company, including loan administration, underwriting or
broker commissions, servicing, engineering, inspection and other fees, whether paid by the REIT or by others with whom the REIT does business; (e) the quality and extent of service and advice furnished by the Advisor; (f) the performance
of the investment portfolio of the REIT, including income, conversion or appreciation of capital, and number and frequency of problem investments; and (g) the quality of the Property portfolio of the Company in relationship to the

  

 17 

 
investments generated by the Advisor for its own account. The new fee structure can be no more favorable to the Advisor than the current fee structure. 

ARTICLE X 

EXPENSES 

Section 10.1 Reimbursable Expenses. In addition to the compensation paid to the Advisor pursuant to Article IX hereof,
the Company shall pay directly or reimburse the Advisor for all of the expenses paid or incurred by the Advisor (to the extent not reimbursable by another party, such as the Dealer Manager) in connection with the services it provides to the Company
pursuant to this Advisory Agreement, including, but not limited to: 
 (a) reimbursements for Organizational and Offering
Expenses in connection with this offering, provided, however, that within 60 days after the end of the month in which an Offering terminates, the Advisor shall reimburse the Company to the extent (i) there are Capped O&O Expenses borne by
the Company and (ii) Organization and Offering Expenses borne by the Company (including selling commissions, dealer manager fees and non-accountable due diligence expense allowance but not including Acquisition Fees or Acquisition Expenses)
exceed 15% of the Gross Proceeds raised in a completed Offering; 
 (b) subject to the limitation set forth below, Acquisition
Expenses incurred by the Advisor or its Affiliates; 
 (c) subject to the limitation set forth below, Acquisition Fees and
Acquisition Expenses payable to unaffiliated Persons incurred in connection with the selection and acquisition of Properties; 

(d) the actual out-of-pocket cost of goods and services used by the Company and obtained from entities not affiliated with the Advisor
including brokerage and other fees paid in connection with the purchase, operation and sale of Assets; 
 (e) interest and other
costs for borrowed money, including discounts, points and other similar fees; 
 (f) taxes and assessments on income or Property
and taxes as an expense of doing business and any taxes otherwise imposed on the Company, its business or income; 
 (g) costs
associated with insurance required in connection with the business of the Company or by the Board; 
 (h) expenses of managing
and operating Properties owned by the Company, whether payable to an Affiliate of the Company or a non-affiliated Person; 
 (i)
all expenses in connection with payments to Directors and meetings of the Directors and Stockholders; 
 (j) expenses associated
with Listing or with the issuance and distribution of Securities other than the Stock issued in a Public Offering, such as selling commissions and fees, advertising expenses, taxes, legal and accounting fees, listing and registration fees;

  

 18 

 (k) expenses connected with payments of Dividends in cash or otherwise made or caused to be
made by the Company to the Stockholders; 
 (l) expenses of organizing, converting, modifying, merging, liquidating or
dissolving the Company or of amending the Charter or the Bylaws; 
 (m) expenses of maintaining communications with
Stockholders, including the cost of preparation, printing, and mailing annual reports and other Stockholder reports, proxy statements and other reports required by governmental entities; 

(n) administrative service expenses, including all direct and indirect costs and expenses incurred by Advisor in fulfilling its duties
hereunder and including personnel costs; provided, however, that no reimbursement shall be made for costs of personnel to the extent that such personnel perform services in transactions for which the Advisor receives the Acquisition Fee or
Disposition Fee. Such direct and indirect costs and expenses may include reasonable wages and salaries and other employee-related expenses of all employees of Advisor who are directly engaged in the operation, management, administration, and
marketing of the Company, including taxes, insurance and benefits relating to such employees, and legal, travel and other out-of-pocket expenses which are directly related to their services provided by Advisor pursuant to this Advisory Agreement;

 (o) audit, accounting and legal fees, and other fees for professional services relating to the operations of the Company and
all such fees incurred at the request, or on behalf of, the Independent Directors or any committee of the Board; and 
 (p)
out-of-pocket costs for the Company to comply with all applicable laws, regulation and ordinances; and all other out-of-pocket costs necessary for the operation of the Company and its Assets incurred by the Advisor in performing its duties
hereunder. 
 The Company shall also reimburse the Advisor or Affiliates of the Advisor for all direct and indirect costs and
expenses incurred on behalf of the Company prior to the execution of this Advisory Agreement. 
 The total of all Acquisition
Fees and Acquisition Expenses paid by the Company in connection with the purchase of a Property by the Company shall be reasonable, and shall in no event exceed an amount equal to 6% of the Contract Purchase Price, or in the case of a mortgage loan,
6% of the funds advanced; provided, however, that a majority of the Directors (including the majority of the Independent Directors) not otherwise interested in the transaction may approve fees and expenses in excess of these limits if they determine
the transaction to be commercially competitive, fair and reasonable to the Company. 
 Section 10.2 Other
Services. Should the Directors request that the Advisor or any director, officer or employee thereof render services for the Company other than set forth in Article IV, such services shall be separately compensated at such rates and in such
amounts as are agreed by the Advisor and a majority of the Independent Directors, subject to the limitations contained in the Charter, and shall not be deemed to be services pursuant to the terms of this Advisory Agreement. 

Section 10.3 Timing of and Limitations on Reimbursements.  

(a) Expenses incurred by the Advisor on behalf of the Company and payable pursuant to this Article X shall be reimbursed no less
frequently than monthly to the Advisor. The Advisor shall prepare a statement documenting the expenses of the Company during each quarter, and 

 

 19 

 
shall deliver such statement to the Company within 45 days after the end of each quarter. Subject to the Excess Expense Guidelines, the Company may advance funds to the Advisor for expenses the
Advisor anticipates will be incurred by the Advisor within the current month and any such advances shall be deducted from the amounts reimbursed by the Company to the Advisor. 

(b) The Company shall not reimburse the Advisor at the end of any fiscal quarter Operating Expenses that, in the four consecutive fiscal
quarters then ended (the “Expense Year”) exceed (the “Excess Amount”) the greater of 2% of Average Invested Assets or 25% of NASAA Net Income (the “Excess Expense Guidelines”) for such year unless a majority of the
Independent Directors determines that such excess was justified, based on unusual and nonrecurring factors which they deem sufficient. If a majority of the Independent Directors does not approve such excess as being so justified, any Excess Amount
paid to the Advisor during a fiscal quarter shall be repaid to the Company. If a majority of the Independent Directors determines such excess was justified, then within 60 days after the end of any fiscal quarter of the Company for which total
reimbursed Operating Expenses for the Expense Year exceed the Excess Expense Guidelines, the Advisor, at the direction of the a majority of the Independent Directors, shall send to the Stockholders a written disclosure of such fact, together with an
explanation of the factors the a majority of the Independent Directors considered in determining that such excess expenses were justified. The Company will ensure that such determination will be reflected in the minutes of the meetings of the Board
of Directors. All figures used in the foregoing computation shall be determined in accordance with GAAP. 
 ARTICLE XI

 FIDELITY BOND 

The Advisor shall endeavor to maintain a fidelity bond for the benefit of the Company which bond shall insure the Company from losses of
up to $1 million per occurrence and shall be of the type customarily purchased by entities performing services similar to those provided to the Company by the Advisor. 

ARTICLE XII 

RELATIONSHIP OF THE ADVISOR AND COMPANY 

The Company and the Advisor are not partners or joint venturers with each other, and nothing in this Advisory Agreement shall be
construed to make them such partners or joint venturers or impose any liability as such on either of them, and neither shall have the power to bind or obligate the other except as set forth herein. In all respects, the status of the Advisor under
this Advisory Agreement is that of an independent contractor. 
 ARTICLE XIII 

RELATIONSHIP WITH DIRECTORS 

Subject to Article VIII of this Advisory Agreement and to restrictions set forth in the Charter or deemed advisable with respect to the
qualification of the Company as a REIT, directors, officers and employees of the Advisor or an Affiliate of the Advisor or any corporate parents of an Affiliate, or directors, officers or stockholders of any director, officer or corporate parent of
an Affiliate may serve as a Director and as officers of the Company, except that no officer or employee of the Advisor or its Affiliates who also is a Director or officer of the Company shall receive any compensation from the Company for serving as
a Director or officer other than reasonable reimbursement for travel and related expenses incurred in attending meetings of the Directors. Directors who are not Independent Directors will be individuals nominated by the Advisor, provided that such
director nominees are either directors of 
  

 20 

 
the Advisor or have been elected by the board of directors of the Advisor as executive officers of the Advisor. 

ARTICLE XIV 

REPRESENTATIONS AND WARRANTIES 

Section 14.1 The Company. To induce the Advisor to enter into this Advisory Agreement, the Company hereby represents
and warrants that: 
 (a) The Company is a corporation, duly organized, validly existing and in good standing under the laws of
the State of Maryland with all requisite corporate power and authority and all material licenses, permits and authorizations necessary to carry out the transactions contemplated by this Advisory Agreement. 

(b) The Company’s execution, delivery and performance of this Advisory Agreement has been duly authorized by the Board of Directors
including a majority of all Independent Directors of the Company. This Agreement constitutes the valid and binding obligation of the Company, enforceable against the Company in accordance with its terms. The Company’s execution and delivery of
this Advisory Agreement and its fulfillment of and compliance with the respective terms hereof do not and will not (i) conflict with or result in a breach of the terms, conditions or provisions of, (ii) constitute a default under,
(iii) result in the creation of any lien, security interest, charge or encumbrance upon the assets of the Company pursuant to, (iv) give any third party the right to modify, terminate or accelerate any obligation under, (v) result in
a violation of or (vi) require any authorization, consent, approval, exception or other action by or notice to any court or administrative or governmental body pursuant to, the Charter or Bylaws or any law, statute, rule or regulation to which
the Company is subject, or any agreement, instrument, order, judgment or decree by which the Company is bound, in any such case in a manner that would have a material adverse effect on the ability of the Company to perform any of its obligations
under this Advisory Agreement. 
 Section 14.2 The Advisor. To induce the Company to enter into this Advisory
Agreement, the Advisor represents and warrants that: 
 (a) The Advisor is a limited liability company, duly organized, validly
existing and in good standing under the laws of the State of Delaware with all requisite corporate power and authority and all material licenses, permits and authorizations necessary to carry out the transactions contemplated by this Advisory
Agreement. 
 (b) The Advisor’s execution, delivery and performance of this Advisory Agreement has been duly authorized.
This Agreement constitutes a valid and binding obligation of the Advisor, enforceable against the Advisor in accordance with its terms. The Advisor’s execution and delivery of this Advisory Agreement and its fulfillment of and compliance with
the respective terms hereof do not and will not (i) conflict with or result in a breach of the terms, conditions or provisions of, (ii) constitute a default under, (iii) result in the creation of any lien, security interest, charge or
encumbrance upon the Advisor’s assets pursuant to, (iv) give any third party the right to modify, terminate or accelerate any obligation under, (v) result in a violation of or (vi) require any authorization, consent, approval,
exemption or other action by or notice to any court or administrative or governmental body pursuant to, the Advisor’s articles of incorporation or bylaws, or any law, statute, rule or regulation to which the Advisor is subject, or any
agreement, instrument, order, judgment or decree by which the Advisor is bound, in any such case in a manner that would have a material adverse effect on the ability of the Advisor to perform any of its obligations under this Advisory Agreement.

  

 21 

 (c) The Advisor has received copies of the Charter, the Bylaws, the Registration Statement
and the Operating Partnership Agreement and is familiar with the terms thereof, including without limitation the investment limitations included therein. The Advisor warrants that it will use reasonable care to avoid any act or omission that would
conflict with the terms of the Charter, the Bylaws, the Registration Statement, or the Operating Partnership Agreement in the absence of the express direction of a majority of the Independent Directors. 

ARTICLE XV 

TERM; TERMINATION OF AGREEMENT 

Section 15.1 Term. This Agreement shall continue in force until the first anniversary of the date hereof. Thereafter,
this Advisory Agreement may be renewed for an unlimited number of successive one-year terms upon mutual consent of the parties. The Company, acting through the Board, will evaluate the performance of the Advisor annually before renewing the
Agreement, and each such renewal shall be for a term of no more than one year. 
 Section 15.2 Termination by Either
Party. This Agreement may be terminated upon 60 days’ written notice without cause or penalty, by either party (by a majority of the Independent Directors of the Company or the manager of the Advisor). 

Section 15.3 Termination by the Advisor. This Agreement may be terminated immediately by the Advisor in the event of
any material breach of this Advisory Agreement by the Company not cured by the Company within 30 days after written notice thereof. 

Section 15.4 Termination by the Company. This Agreement may be terminated immediately by the Company in the event of
(a) any material breach of this Advisory Agreement by the Advisor not cured by the Advisor within 30 days after written notice thereof; (b) a decree or order is rendered by a court having jurisdiction (i) adjudging Advisor as bankrupt
or insolvent, or (ii) approving as properly filed a petition seeking reorganization, readjustment, arrangement, composition or similar relief for Advisor under the federal bankruptcy laws or any similar applicable law or practice, or
(iii) appointing a receiver or liquidator or trustee or assignee in bankruptcy or insolvency of Advisor or a substantial part of the property of Advisor, or for the winding up or liquidation of its affairs; or (c) Advisor
(i) institutes proceedings to be adjudicated a voluntary bankrupt or an insolvent, (ii) consents to the filing of a bankruptcy proceeding against it, (iii) files a petition or answer or consent seeking reorganization, readjustment,
arrangement, composition or relief under any similar applicable law or practice, (iv) consents to the filing of any such petition, or to the appointment of a receiver or liquidator or trustee or assignee in bankruptcy or insolvency for it or
for a substantial part of its property, (v) makes an assignment for the benefit of creditors, (vi) is unable to or admits in writing its inability to pay its debts generally as they become due unless such inability shall be the fault of
the Operating Partnership, or (vii) takes corporate or other action in furtherance of any of the aforesaid purposes. 

Section 15.5 Survival. The provisions of Articles I, VI, VII and XVI through XX survive termination of this Advisory
Agreement. 
 ARTICLE XVI 

PAYMENTS TO AND DUTIES OF 

ADVISOR UPON TERMINATION 

Section 16.1 Reimbursable Expenses and Earned Fees. After the Termination Date, other than the Subordinated
Performance Fee Due Upon Termination, the Advisor shall not be entitled to compensation for further services hereunder except it shall be entitled to receive from the 

 

 22 

 
Company within 30 days after the effective date of such termination all unpaid reimbursable expenses and all earned but unpaid fees payable to the Advisor prior to termination of this Advisory
Agreement. 
 Section 16.2 Subordinated Performance Fee Due Upon Termination. Upon termination, unless such
termination is by the Company because of a material breach of this Advisory Agreement by the Advisor as a result of willful or intentional misconduct or bad faith on behalf of the Advisor, the Advisor shall be entitled to receive from the Company
the Subordinated Performance Fee Due Upon Termination payable in the form of an interest bearing promissory note bearing interest at a rate of LIBOR plus 200 basis points (the “Performance Fee Note”). The Company shall repay the
Performance Fee Note at such time as the Company completes the first Sale or refinancing of a Property held at the Termination Date using Cash from Sales or Cash from Financings in an amount equal to the value such Property contributed to the
Performance Fee Note. If such amount is insufficient to pay the Performance Fee Note in full, then the Performance Fee Note shall be paid in part from the Cash from Sales from the first Sale or Cash from Financings from the first refinancing of
a Property held at the Termination Date, and in part from the Cash from Sales from each successive Sale or Cash from Financings from each successive refinancing of Properties held at the Termination Date in an amount equal to the value such
Properties contributed to the Performance Fee Note until the Performance Fee Note is repaid in full. If the Performance Fee Note has not been paid in full on the earlier of (a) the date the Common Stock is Listed, or (b) within three
(3) years from the Termination Date, then the holder of the Performance Fee Note, its successors or assigns, may elect to convert the balance of the fee into Common Stock at a price per share equal to the average closing price of the shares of
Common Stock over the ten (10) trading days immediately preceding the date of such election if the Common Stock is Listed at such time. If the Common Stock is not Listed within three (3) years from the Termination Date, the holder of
the Performance Fee Note, its successors or assigns, may elect to convert the balance of the fee into shares of Common Stock at a price per share equal to the fair market value for such Shares as determined by the Board of Directors based upon the
Appraised Value of the Properties, loans, and other investments, net of any debt thereon, on the date of election. 

Section 16.3 Advisor’s Duties Upon Termination. The Advisor shall promptly upon termination: 

(a) pay over to the Company all money collected and held for the account of the Company pursuant to this Advisory Agreement, after
deducting any accrued compensation and reimbursement for its expenses to which it is then entitled; 
 (b) deliver to the Board
a full accounting, including a statement showing all payments collected by it and a statement of all money held by it, covering the period following the date of the last accounting furnished to the Board; 

(c) deliver to the Board all assets, including Properties, and documents of the Company then in the custody of the Advisor; and

 (d) cooperate with the Company to provide an orderly management transition. 

ARTICLE XVII 

ASSIGNMENT TO AN AFFILIATE 

This Agreement may be assigned by the Advisor to an Affiliate with the approval of a majority of the Independent Directors. The Advisor
may assign any rights to receive fees or other payments under this Advisory Agreement without obtaining the approval of the Directors. This Agreement shall not be assigned by the Company without the consent of the Advisor, except in the case of an
assignment by the 
  

 23 

 
Company to a corporation or other organization which is a successor to all of the assets, rights and obligations of the Company, in which case such successor organization shall be bound hereunder
and by the terms of said assignment in the same manner as the Company is bound by this Advisory Agreement. 

ARTICLE XVIII 

INDEMNIFICATION BY THE COMPANY 

Section 18.1 Conditions of Indemnification. The Company shall indemnify and hold harmless the Advisor and its
Affiliates, including their respective officers, directors, partners and employees, from all liability, claims, damages or losses arising in the performance of their duties hereunder, and related expenses, including reasonable attorneys’ fees,
to the extent such liability, claims, damages or losses and related expenses are not fully reimbursed by insurance, subject to any limitations imposed by the laws of the State of Maryland and only if all of the following conditions are met:

 (a) The directors or the Advisor or its Affiliates have determined, in good faith, that the course of conduct that caused the
loss or liability was in the best interests of the Company; 
 (b) The Advisor or its Affiliates were acting on behalf of or
performing services for the Company; 
 (c) Such liability or loss was not the result of negligence or misconduct by the Advisor
or its Affiliates; and 
 (d) Such indemnification or agreement to hold harmless is recoverable only out of the Company’s
Net Asset Value and not from its Stockholders. 
 (e) With respect to losses, liabilities or expenses arising from or out of an
alleged violation of federal or state securities laws, one or more of the following conditions are met: (i) there has been a successful adjudication on the merits of each count involving alleged securities law violations as to the particular
indemnitee; (ii) such claims have been dismissed with prejudice on the merits by a court of competent jurisdiction as to the particular indemnitee; or (iii) a court of competent jurisdiction approves a settlement of the claims against a
particular indemnitee and finds that indemnification of the settlement and the related costs should be made, and the court considering the request for indemnification has been advised of the position of the SEC and of the published position of any
state securities regulatory authority in which securities of the Company were offered or sold as to indemnification for violations of securities laws. Notwithstanding the foregoing, the Advisor shall not be entitled to indemnification or be held
harmless pursuant to this Article XVIII for any activity which the Advisor shall be required to indemnify or hold harmless the Company pursuant to Article XIX. Any indemnification of the Advisor may be made only out of the net assets of the Company,
including insurance proceeds, and not from Stockholders. 
 ARTICLE XIX 

INDEMNIFICATION BY ADVISOR 

The Advisor shall indemnify and hold harmless the Company from contract or other liability, claims, damages, taxes or losses and related
expenses including attorneys’ fees, to the extent that such liability, claims, damages, taxes or losses and related expenses are not fully reimbursed by insurance and are incurred by reason of the Advisor’s bad faith, fraud, willful
misfeasance, misconduct, or reckless disregard of its duties, but Advisor shall not be held responsible for any action of the Board in declining to follow any advice or recommendation given by the Advisor. 

 

 24 

 ARTICLE XX 

LIMITATION OF LIABILITY 

In no event will either party be liable for damages based on loss of income, profit or savings or indirect, incidental, consequential,
exemplary, punitive or special damages of the other party or person, including third parties, even if such party has been advised of the possibility of such damages in advance, and all such damages are expressly disclaimed. 

ARTICLE XXI 

NOTICES 

Any notice in this Advisory Agreement permitted to be given, made or accepted by either party to the other, must be in writing and may be
given or served by (1) overnight courier, (2) depositing the same in the United States mail, postpaid, certified, return receipt requested, or (3) facsimile transfer. Notice deposited in the United States mail shall be deemed given
when mailed. Notice given in any other manner shall be effective when received at the address of the addressee. For purposes hereof the addresses of the parties, until changed as hereafter provided, shall be as follows: 

 

			
	To Company:	  	Strategic Storage Trust, Inc.
		  	Attention : H. Michael Schwartz
		  	111 Corporate Drive, Suite 120
		  	Ladera Ranch, California 92694
		  	Fax: 949-429-6606
		
	With a copy to:	  	Chairman of the Nominating and Corporate Governance
		  	Committee
		  	111 Corporate Drive, Suite 120
		  	Ladera Ranch, California 92694
		  	Fax: 949-429-6606
		
	To Advisor:	  	Strategic Storage Advisor, LLC
		  	Attention : H. Michael Schwartz
		  	111 Corporate Drive, Suite 120
		  	Ladera Ranch, California 92694
		  	Fax: 949-429-6606

 Either party may at any
time give notice in writing to the other party of a change in its address for the purposes of this Article XXI. 

ARTICLE XXII 

MODIFICATION 

This Agreement shall not be changed, modified, terminated, or discharged, in whole or in part, except by an instrument in writing signed
by both parties hereto, or their respective successors or assignees. 
  

 25 

 ARTICLE XXIII 

SEVERABILITY 

The provisions of this Advisory Agreement are independent of and severable from each other, and no provision shall be affected or
rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part. 

ARTICLE XXIV 

CONSTRUCTION/GOVERNING LAW 

The provisions of this Advisory Agreement shall be construed and interpreted in accordance with the laws of the State of California.

 ARTICLE XXV 

ENTIRE AGREEMENT 

This Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter hereof, and
supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede
any course of performance and/or usage of the trade inconsistent with any of the terms hereof. This Agreement may not be modified or amended other than by an agreement in writing. 

ARTICLE XXVI 

INDULGENCES, NOT WAIVERS 

Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Advisory Agreement
shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any
right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party
asserted to have granted such waiver. 
 ARTICLE XXVII 

GENDER 

Words used herein regardless of the number and gender specifically used, shall be deemed and construed to include any other number,
singular or plural, and any other gender, masculine, feminine or neuter, as the context requires. 
 ARTICLE XXVIII 

 TITLES NOT TO AFFECT INTERPRETATION 

The titles of paragraphs and subparagraphs contained in this Advisory Agreement are for convenience only, and they neither form a part of
this Advisory Agreement nor are they to be used in the construction or interpretation hereof. 
  

 26 

 ARTICLE XXIX 

EXECUTION IN COUNTERPARTS 

This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose
signature appears thereon, and all of which shall together constitute one and the same instrument. This Agreement shall become binding when the counterparts hereof, taken together, bear the signatures of all of the parties reflected hereon as the
signatories. 
 ARTICLE XXX 

INITIAL INVESTMENT 

The Advisor has purchased 100 shares of Common Stock for $1,000.00. The Advisor has purchased 20,000 OP Units for $200,000. In addition,
the Advisor may not sell any of the OP Units while the Advisor acts in such advisory capacity to the Company, provided, that such OP Units may be transferred to Affiliates of the Advisor. Affiliates of the Advisor may not sell any of the OP Units
while the Advisor acts in such advisory capacity to the Company, provided, that such OP Units may be transferred to the Advisor or other Affiliates of the Advisor. The restrictions included above shall not apply to any other Securities acquired by
the Advisor or its Affiliates. With respect to any Securities owned by the Advisor, the Directors, or any of their Affiliates, neither the Advisor, nor the Directors, nor any of their Affiliates may vote or consent on matters submitted to the
Stockholders regarding the removal of the Advisor, Directors or any of their Affiliates or any transaction between the Company and any of them. In determining the requisite percentage in interest of Securities necessary to approve a matter on which
the Advisor, Directors and any of their Affiliates may not vote or consent, any Securities owned by any of them shall not be included. 

[SIGNATURES APPEAR ON NEXT PAGE] 
  

 27 

 IN WITNESS WHEREOF, the parties hereto have executed this Advisory Agreement as of the date
and year first above written. 
  

			
	 THE COMPANY:
  

STRATEGIC STORAGE TRUST, INC.

		
	By:	 	  

		 	H. Michael Schwartz
		 	President and Chief Executive Officer
	
	THE ADVISOR:
	
	STRATEGIC STORAGE ADVISOR, LLC
		
	By:	 	  

		 	H. Michael Schwartz
		 	President

  

 283rd Amended & Restated Underwriting & Continuing Indemnity Agreement

 Exhibit 10.6 

THIRD AMENDED AND RESTATED 

UNDERWRITING AND CONTINUING 

INDEMNITY AGREEMENT 

dated 

December 22, 2003 

among 
 GREAT
LAKES DREDGE & DOCK CORPORATION, 
 CERTAIN OF ITS SUBSIDIARIES, 

TRAVELERS CASUALTY AND SURETY COMPANY 

and 
 TRAVELERS
CASUALTY AND SURETY COMPANY OF AMERICA 
  
  

 TABLE OF CONTENTS 

 

					
	ARTICLE I	  	DEFINITIONS	  	2
			
	    SECTION 1.1	  	DEFINED TERMS	  	2
	    SECTION 1.2	  	USE OF DEFINED TERMS	  	12
	    SECTION 1.3	  	ACCOUNTING PRINCIPLES	  	13
			
	ARTICLE II	  	BOND FACILITY	  	13
			
	    SECTION 2.1	  	BONDS	  	13
	    SECTION 2.2	  	PREMIUM PAYMENT	  	13
			
	ARTICLE III	  	INDEMNIFICATION	  	13
			
	    SECTION 3.1	  	INDEMNITY	  	13
	    SECTION 3.2	  	EXONERATION	  	14
	    SECTION 3.3	  	CASH COLLATERAL	  	14
	    SECTION 3.4	  	WAIVER OF CLAIMS AND HOLD HARMLESS	  	14
	    SECTION 3.5	  	WITHDRAWAL FROM AND TERMINATION OF AGREEMENT	  	15
	    SECTION 3.6	  	INDEMNITORS AGREE TO BECOME PARTY DEFENDANTS	  	15
	    SECTION 3.7	  	INDEMNITORS’ WAIVER OF NOTICE	  	15
	    SECTION 3.8	  	INDEMNITORS’ KNOWING CONSENT TO AGREEMENT	  	15
	    SECTION 3.9	  	INDEMNITORS’ DUTY TO REMAIN INFORMED OF PRINCIPAL’S BUSINESS	  	16
			
	    SECTION 3.10	  	ENFORCEABILITY OF RIGHTS DIRECTLY AGAINST INDEMNITORS	  	16
			
	ARTICLE IV	  	CONDITIONS PRECEDENT	  	16
			
	    SECTION 4.1	  	CONDITION PRECEDENT TO EFFECTIVENESS OF THIS AGREEMENT	  	16
	    SECTION 4.2	  	CONDITIONS PRECEDENT TO ALL BONDS	  	17
			
	ARTICLE V	  	REPRESENTATIONS AND WARRANTIES	  	18
			
	    SECTION 5.1	  	INCORPORATION, GOOD STANDING, AND DUE QUALIFICATION	  	18
	    SECTION 5.2	  	CORPORATE POWER AND AUTHORITY	  	19
	    SECTION 5.3	  	LEGALLY ENFORCEABLE AGREEMENT	  	19
	    SECTION 5.4	  	APPROVALS	  	19
	    SECTION 5.5	  	OWNERSHIP AND LIENS	  	19
	    SECTION 5.6	  	TAXES	  	19
	    SECTION 5.7	  	INSURANCE	  	20
	    SECTION 5.8	  	COMPLIANCE	  	20
	    SECTION 5.9	  	LITIGATION	  	20
	    SECTION 5.10	  	SUBSIDIARIES	  	20
	    SECTION 5.11	  	REAL PROPERTY	  	20
	    SECTION 5.12	  	EQUIPMENT	  	20
	    SECTION 5.13	  	VESSELS	  	20

  

 i 
  

 

					
	ARTICLE VI	  	COVENANTS	  	21
			
	    SECTION 6.1	  	CORPORATE EXISTENCE	  	21
	    SECTION 6.2	  	MAINTENANCE OF RECORDS	  	21
	    SECTION 6.3	  	MAINTENANCE OF PROPERTIES	  	21
	    SECTION 6.4	  	MAINTENANCE OF INSURANCE	  	21
	    SECTION 6.5	  	COMPLIANCE WITH LAWS	  	21
	    SECTION 6.6	  	TAXES	  	21
	    SECTION 6.7	  	BOOKS AND RECORDS	  	22
	    SECTION 6.8	  	FINANCIAL RECORDS AND REPORTS	  	22
	    SECTION 6.9	  	PRINCIPALS’ REPRESENTATION	  	22
	    SECTION 6.10	  	NOTICE OF LITIGATION	  	22
	    SECTION 6.11	  	LIENS	  	23
	    SECTION 6.12	  	DEBT AND CONTINGENT LIABILITIES	  	23
	    SECTION 6.13	  	DISPOSITION OF ASSETS; ISSUANCE OF EQUITY	  	25
	    SECTION 6.14	  	MERGERS	  	26
	    SECTION 6.15	  	INVESTMENTS	  	26
	    SECTION 6.16	  	DIVIDEND RESTRICTIONS	  	29
	    SECTION 6.17	  	RESTRICTIONS UPON CONTRACTS WITH AFFILIATES	  	29
	    SECTION 6.18	  	NATURE OF BUSINESS	  	30
	    SECTION 6.19	  	NET WORTH	  	30
	    SECTION 6.20	  	NET CURRENT ASSETS	  	30
	    SECTION 6.21	  	SUBORDINATED DEBT AND PAYMENT BLOCKAGE NOTICE	  	30
			
	ARTICLE VII	  	RIGHTS OF TRAVELERS	  	31
			
	    SECTION 7.1	  	FURTHER ASSURANCES/TRAVELERS AS ATTORNEY-IN-FACT	  	31
	    SECTION 7.2	  	CONTRACT FUNDS HELD IN TRUST	  	32
	    SECTION 7.3	  	RIGHT OF TRAVELERS TO SETTLE CLAIMS	  	32
	    SECTION 7.4	  	AUTHORITY OF TRAVELERS TO MAKE LOANS TO PRINCIPAL	  	32
	    SECTION 7.5	  	AUTHORITY OF TRAVELERS TO AMEND BOND	  	32
	    SECTION 7.6	  	RIGHTS OF TRAVELERS TO TAKE POSSESSION OF THE WORK	  	33
	    SECTION 7.7	  	DEPOSITORY TRUST ACCOUNTS	  	33
	    SECTION 7.8	  	PRESERVATION OF TRAVELERS’S RIGHTS	  	33
	    SECTION 7.9	  	AUTHORITY OF TRAVELERS TO ELECT REMEDIES	  	33
			
	ARTICLE VIII	  	MISCELLANEOUS	  	34
			
	    SECTION 8.1	  	BENEFICIAL PARTIES	  	34
	    SECTION 8.2	  	JOINT AND SEVERAL	  	34
	    SECTION 8.3	  	ATTORNEYS FEES	  	34
	    SECTION 8.4	  	APPLICABLE LAW	  	34
	    SECTION 8.5	  	JURISDICTION FOR SUITS UNDER THIS AGREEMENT	  	34
	    SECTION 8.6	  	INDEMNITORS WAIVE DEFENSE OF SUBSEQUENT EXECUTION	  	34
	    SECTION 8.7	  	VALIDITY OF AGREEMENT	  	34

  

 ii 
  

 

					
	    SECTION 8.8	  	ORAL MODIFICATIONS INEFFECTIVE	  	35
	    SECTION 8.9	  	NOTICES	  	35
	    SECTION 8.10	  	REAFFIRMATION AND RESTATEMENT	  	35
	    SECTION 8.11	  	CONFIDENTIALITY	  	36
	    SECTION 8.12	  	RELEASE OF LIENS	  	36
	    SECTION 8.13	  	SUCCESSORS AND ASSIGNS	  	36

  

					
	EXHIBIT A	  	-	  	Form of Supplemental Signature Page
	EXHIBIT B	  	-	  	Form of Pledge Agreement
	EXHIBIT C	  	-	  	Form of Security Agreement (A/R)
	EXHIBIT D	  	-	  	Form of Security Agreement (Equipment)
	EXHIBIT E	  	-	  	Form of Vessel Mortgage (First)
	EXHIBIT F	  	-	  	Form of Vessel Mortgage (Second)
			
	SCHEDULE 1.1	  	-	  	Permitted Liens
	SCHEDULE 5.7	  	-	  	Insurance
	SCHEDULE 5.9	  	-	  	Litigation
	SCHEDULE 5.10	  	-	  	Subsidiaries
	SCHEDULE 5.11	  	-	  	Real Property
	SCHEDULE 5.12	  	-	  	Equipment
	SCHEDULE 5.13	  	-	  	Vessels
	SCHEDULE 6.4	  	-	  	Insurers
	SCHEDULE 6.12	  	-	  	Existing Debt and Contingent Liabilities
	SCHEDULE 6.15	  	-	  	Investments
	SCHEDULE 6.17	  	-	  	Affiliate Transactions

  

 iii 
  

 

 THIRD AMENDED AND RESTATED 

UNDERWRITING AND CONTINUING 

INDEMNITY AGREEMENT 

THIS THIRD AMENDED AND RESTATED UNDERWRITING AND CONTINUING INDEMNITY AGREEMENT (the “Agreement”), made and entered into
this 22nd day of December, 2003, is 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) TRAVELERS CASUALTY AND SURETY COMPANY, a Connecticut corporation (as assignee of 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) (“TCASC”), and TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA, a Connecticut corporation
(“TRAVELERS AMERICA” and together with TCASC, “TRAVELERS”). 
 R E C I T A L S 

WHEREAS, the PRINCIPALS are engaged in the business, among other things, of dredging, dredging reclamation, aggregate mining and supply,
and marine construction in the United States and in other countries, and any PRINCIPAL, individually, jointly with others or on behalf of any of its SUBSIDIARIES, AFFILIATES or divisions or their SUBSIDIARIES, AFFILIATES or divisions now in
existence or hereafter formed or acquired, or on behalf of third-party Persons, may desire or be required from time to time in connection with these businesses to deliver certain BOND(s) to OBLIGEES; and 

WHEREAS, certain of the INDEMNITORS, the PRINCIPALS and TRAVELERS are parties to that certain Second Amended and Restated Underwriting
and Continuing Indemnity Agreement (the “SECOND AMENDMENT AND RESTATEMENT”) dated as of August 19, 1998, which amended and restated that certain First Amended and Restated Underwriting and Continuing Indemnity Agreement dated
as of September 24, 1997 (“FIRST AMENDMENT AND RESTATEMENT”), which amended and restated that certain Amended Agreement dated as of October 15, 1991, among certain of the PRINCIPALS, certain AFFILIATES of the PRINCIPALS
and TRAVELERS (as amended and restated by the FIRST AMENDMENT AND RESTATEMENT and the SECOND AMENDMENT AND RESTATEMENT, and as otherwise amended or modified, the “EXISTING AGREEMENT”); and 

WHEREAS, in accordance with the terms of the EXISTING AGREEMENT, TRAVELERS has heretofore executed or procured and, upon the express
condition that this Agreement and the other UNDERWRITING DOCUMENTS be executed, TRAVELERS may continue to execute or procure the execution of BOND(s), and TRAVELERS may continue previously executed BOND(s) and may forbear cancellation of such
BOND(s); and 
 WHEREAS, each of the INDEMNITORS recognizes that BONDS are a necessary and desirable adjunct to the businesses
done and to be done by the PRINCIPALS and desires to accommodate the financial, security, indemnity, exoneration and other requirements of TRAVELERS as an inducement to TRAVELERS to become surety upon obligations of the

  

  
  

 
PRINCIPALS and has therefore agreed to be bound by this Agreement and the other UNDERWRITING DOCUMENTS to which it is a party and has agreed to exercise its best efforts to permit and require the
PRINCIPALS to honor and perform all of the terms of this Agreement; and 
 WHEREAS, TRAVELERS has agreed to act as surety or
procure surety BONDS for the PRINCIPALS, subject to the understanding of the parties that TRAVELERS is under no obligation to act as surety for every bond of the PRINCIPALS, that TRAVELERS shall have the right to refuse to execute BONDS for any
reason, including, without limitation, with respect to CONTRACTS which in TRAVELERS’ sole judgment present risks not contemplated by this Agreement and that the PRINCIPALS are under no obligation to obtain BONDS from TRAVELERS; and 

WHEREAS, the INDEMNITORS and the PRINCIPALS now desire to amend and restate the EXISTING AGREEMENT on the terms and conditions set forth
in this Agreement. 
 NOW, THEREFORE, in consideration of the mutual agreements set forth herein, the execution or procurement
of any BOND(s) by TRAVELERS or the forbearance or cancellation of any existing BOND(s) by TRAVELERS and as an inducement to such execution, procurement or forbearance, we, the undersigned PRINCIPALS and INDEMNITORS, agree and bind ourselves, our
successors and assigns, jointly and severally, as follows: 
 ARTICLE I 

DEFINITIONS 

SECTION 1.1 DEFINED TERMS. For the purposes of this Agreement, the following terms shall have the meanings listed
below: 
 “AFFILIATE” means, with respect to any PERSON, any other PERSON or group acting in concert with such PERSON
that, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under the common control with such PERSON. For purposes of this definition, “control” (including, with correlative meanings, the
terms “controlled by” and “under common control with”), as used with respect to any PERSON or group of PERSONS, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of management and
policies of such PERSON, whether through the ownership of voting securities or by contract or otherwise. 
 “AUTHORIZED
OFFICER” means, with respect to any PERSON, the chief executive officer, president, chief financial officer, treasurer, assistant treasurer, controller or any vice president of such PERSON. 

“BANK LOAN FACILITY” means that certain Credit Agreement dated as of December 22, 2003, by and among GLDD Acquisitions
Corp., HOLDINGS, certain corporate affiliates thereof, the financial institutions from time to time parties thereto and Bank of America, N.A., as administrative agent to such financial institutions, and the documents, instruments and agreements
executed and delivered in connection therewith, as all of the same may be amended, restated, supplemented or otherwise modified from time to time, and any credit agreement or 

 

 2 
  

 

 
other agreement or agreements relating to any refinancing, extension, renewal or replacement, in whole or in part, thereof. 

“BOND(s)” means any surety agreements, undertakings, or instruments of guarantee signed by TRAVELERS on behalf of any
PRINCIPAL, whether executed before or after the execution of this Agreement. 
 “CONTINGENT LIABILITY” means any
agreement, undertaking or arrangement by which any Person guarantees, endorses or otherwise becomes or is contingently liable upon (by agreement, contingent, or otherwise, to provide funds for payment, to supply funds to, or otherwise to invest in,
a debtor, or otherwise to assure a creditor against loss) the indebtedness, obligation or any other liability of any other Person (other than by endorsements of instruments in the course of collection), or guarantees the payment of dividends or
other distributions upon the shares of any other PERSON. 
 “CONTRACT(s)” means any contract referred to or described
in any BOND(s) issued on behalf of any PRINCIPAL. 
 “DEBT” means and includes, with respect to any PERSON,
(i) indebtedness for borrowed money, (ii) obligations evidenced by bonds (including, without limitation, license, bid, performance, lien or payment bonds), debentures, notes or other similar instruments, (iii) obligations which have
been incurred in connection with the acquisition of property or services (including, without limitation, obligations to pay the deferred purchase price of property or services), excluding trade payables and accrued expenses incurred in the ordinary
course of business, (iv) obligations secured by any LIEN or other charge upon property or assets owned by such PERSON, even though such PERSON has not assumed or become liable for the payment of such obligations, (v) obligations created or
arising under any conditional sale or other title retention agreement with respect to property acquired by such PERSON, notwithstanding the fact that the rights and remedies of the seller, lender or lessor under such agreement in the event of
default are limited to repossession or sale of property, (vi) the principal amount of any capital lease and (vii) reimbursement obligations with respect to letters of credit. 

“DEBT INDENTURE” means that certain Indenture dated as of December 22, 2003, by and among HOLDINGS, certain of the
SUBSIDIARIES of HOLDINGS, and The Bank of New York, as Trustee, governing the issuance by HOLDINGS of $175,000,000 in original principal amount of its 7 3/4% Senior Subordinated Notes due 2013, as amended, restated, supplemented, modified, refunded,
refinanced or replaced, in whole or in part, from time to time in accordance with Section 6.21 . 

“ENVIRONMENTAL LAWS” means all international, foreign, federal, state or local laws, statutes, common law duties, rules,
regulations, ordinances and codes, together with all administrative or judicial orders, licenses, authorizations and permits of, and agreements with, any governmental authorities, in each case relating to environmental, health, safety and land use
and natural resource matters now or hereafter in effect; including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Clean Air Act, the Federal Water Pollution Control Act of 1972, the Solid
Waste Disposal Act, as amended, the Resource Conservation and Recovery Act, the Toxic Substance Control Act, and 
  

 3 
  

 

 
the Emergency Planning and Community Right-to-Know Act, and the Occupational Safety and Health Act, and any analogous state or local laws. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations and
published interpretations thereof. 
 “EVENT OF DEFAULT” means any one or more of the following: 

 

	 	(a)	Failure by the INDEMNITORS, or any of them, to pay on the date when due (and after giving effect to any applicable payment period) any obligation owing to TRAVELERS
hereunder; provided , however , that any BOND premium may be disputed by any PRINCIPAL in good faith in the ordinary course of business without causing an EVENT OF DEFAULT under this clause (a); provided further , that the
foregoing shall not prevent TRAVELERS from filing suit to recover any such disputed premium; 

 or 

 

	 	(b)	Failure by the INDEMNITORS, or any of them, to comply with or to perform their respective obligations under Sections 3.3, 6.7 , 6.14 , 6.16 ,
6.19 , 6.20 or 6.21 of this Agreement, and, in the case of Section 6.16 , such failure shall continue for ten (10) days; 

or 
  

	 	(c)	Failure by the INDEMNITORS, or any of them, to comply with or perform their respective obligations under any provision of this Agreement (and not constituting an Event
of Default under any of the other clauses of this definition) and (1) continuance of such failure for thirty (30) days after notice thereof to the INDEMNITOR by TRAVELERS specifying such failure if such failure can be cured with diligence
within such thirty-day period by the INDEMNITORS, or can be cured by the payment of money, or (2) continuance of such failure for sixty (60) days by TRAVELERS specifying such failure if such failure cannot with diligence be cured within
such thirty-day period and cannot be cured by the payment of money; 

 or 

 

	 	(d)	Any representation or warranty made or deemed made by any INDEMNITOR in this Agreement or any other UNDERWRITING DOCUMENT, shall prove to have been incorrect in any
material respect on or as of the date made or deemed made; 

 or 

 

	 	(e)	 an OBLIGEE has declared by delivery of written notice to any PRINCIPAL that such PRINCIPAL is in default of any provision under the respective
CONTRACT(s) between such PRINCIPAL and such OBLIGEE and such PRINCIPAL has failed to cure such default within that period of time provided to cure said default within such CONTRACT(s) in which such PRINCIPAL is alleged to be in default and such
default results in any OBLIGEE making demand for payment or performance under any BOND provided in connection with such CONTRACT; provided , that TRAVELERS shall, upon investigation, reasonably determine in good faith that PRINCIPAL is in
default under the CONTRACT(s) or such PRINCIPAL has acknowledged its default under the CONTRACT(s), 

 

 4 
  

 

	 	 
irrespective of whether or not such PRINCIPAL is actually in default of the CONTRACT(s) (such a determination by TRAVELERS shall not be binding upon such PRINCIPAL in any dispute such PRINCIPAL
may have with such OBLIGEE or a claimant under the related BOND(s); except as provided above, it shall be no defense to the enforcement of this Agreement by TRAVELERS, and co-sureties, if any, that PRINCIPAL asserts that it is not in default under
the CONTRACT(s)); 

 or 
  

	 	(f)	TRAVELERS has received notice or knowledge of facts giving rise to a reasonable good faith belief that it has incurred or may incur a LOSS and a PRINCIPAL has failed to
cure such LOSS or to take reasonable steps to avoid the incurrence by TRAVELERS of such LOSS within thirty (30) days after receipt of written notice sent by TRAVELERS to such PRINCIPAL; provided , that no EVENT OF DEFAULT under this
clause (f) shall occur if prior to the expiration of such thirty-day period such PRINCIPAL causes (1) a letter of credit with a face amount equal to such LOSS and otherwise in form and substance reasonably acceptable to TRAVELERS to
be issued and delivered to TRAVELERS or (2) cash collateral in an amount equal to such LOSS to be pledged to TRAVELERS pursuant to documentation reasonably acceptable to TRAVELERS; provided further , that the providing of such letter of
credit or cash collateral shall not obligate TRAVELERS to deny any claim related to such LOSS unless TRAVELERS has determined that a meritorious defense exists to such claim; 

or 
  

	 	(g)	Any PRINCIPAL within fifteen (15) days after receipt of notice sent by TRAVELERS to such PRINCIPAL has failed, refused or delayed to pay or is unable to pay any
claims, bills or other indebtedness incurred in, or in connection with, the performance of the CONTRACT(s) which claims, bills or other indebtedness TRAVELERS, upon investigation, shall have reasonably determined in good faith to be valid;

 or 
  

	 	(h)	Any INDEMNITOR shall (i) fail to pay any DEBT or CONTINGENT OBLIGATION of such INDEMNITOR in an aggregate principal amount in excess of $5,000,000, or any interest
or premium thereon, when due whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise (subject to any applicable grace periods), or (ii) fail to perform or observe any term, covenant, or condition on its part to be
performed or observed under any agreement or instrument relating to any DEBT or CONTINGENT OBLIGATION of such INDEMNITOR in an aggregate principal amount in excess of $5,000,000 (subject to any applicable grace periods), if the result of such
failure to perform or observe is (A) in the case of the BANK LOAN FACILITY, either to accelerate the maturity of such DEBT or to cause a PAYMENT BLOCKAGE NOTICE to be delivered to the Trustee under the DEBT INDENTURE, (B) in the case of
the DEBT INDENTURE, to accelerate or permit the acceleration of the maturity of such DEBT or (C) in the case of any other DEBT or CONTINGENT OBLIGATION, to accelerate the maturity of such DEBT or CONTINGENT OBLIGATION; 

 

 5 
  

 

 or 
  

	 	(i)	Any INDEMNITOR becomes insolvent or generally fails to pay, or admits in writing its inability to pay, debts as they become due; or any INDEMNITOR applies for, consents
to, or acquiesces in the appointment of, a trustee, receiver or other custodian for such INDEMNITOR or for a substantial portion of its property, or makes a general assignment for the benefit of creditors; or, in the absence of such application,
consent or acquiescence, a trustee, receiver or other custodian is appointed for any INDEMNITOR or for a substantial part of the property of any thereof and is not dismissed or discharged within sixty (60) days; or any bankruptcy,
reorganization, debt arrangement, or other case or proceeding under any bankruptcy or insolvency law, or any dissolution or liquidation proceeding, is commenced in respect of any INDEMNITOR and if such case or proceeding is not commenced by such
INDEMNITOR, it is consented to or acquiesced in by such INDEMNITOR or is not released, dismissed, vacated or fully bonded within sixty (60) days undismissed; or any INDEMNITOR takes any corporate action to authorize, or in furtherance of, any
of the foregoing; 

 or 
  

	 	(j)	A final judgment or judgments (after the expiration of all times to appeal therefrom) for the payment of money in excess of $5,000,000 in the aggregate shall be
rendered against any INDEMNITOR and the same shall not be (i) fully covered by insurance or (ii) vacated, stayed, bonded, paid or discharged for a period of thirty (30) days. 

“EXISTING AGREEMENT” has the meaning set forth in the recitals to this Agreement. 

“FINANCIAL STATEMENTS” means all those balance sheets, income statements and other financial statements of any INDEMNITOR or
any AFFILIATE thereof which have been furnished to TRAVELERS for the purpose of or in connection with this Agreement and the transactions contemplated hereby. 

“GAAP” is defined as generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board. 

“GLDDC” means Great Lakes Dredge & Dock Company, a New Jersey corporation. 

“HOLDINGS” has the meaning set forth in the recitals to this Agreement. 

“INDEMNITOR” means any of HOLDINGS or any SUBSIDIARY of HOLDINGS which is a party to this Agreement as of the date hereof or
which becomes a party to this Agreement after the date hereof by hereafter executing and delivering to TRAVELERS a SUPPLEMENTAL SIGNATURE PAGE and INDEMNITORS means, collectively, all of HOLDINGS and all such SUBSIDIARIES of HOLDINGS. 

“INTERCREDITOR AGREEMENT” means that certain Intercreditor Agreement dated as of December 22, 2003, by and among GLDD
Acquisitions Corp., HOLDINGS, certain 
  

 6 
  

 

 
SUBSIDIARIES of HOLDINGS, Bank of America, N.A., as administrative agent, and TRAVELERS, and the documents, instruments and agreements executed and delivered pursuant thereto, as all of the same
may be amended, restated, supplemented or otherwise modified from time to time, and any other intercreditor agreement in replacement thereof which is in form and substance acceptable to TRAVELERS. 

“LIEN” means any mortgage, deed of trust, pledge, security interest, hypothecation, assignment, deposit arrangement to assure
payment of DEBT, encumbrance, lien (statutory or other), charge, or encumbrance of any kind or nature whatsoever (including, without limitation, any conditional sale or other title retention agreement, any financing lease having substantially the
same economic effect as any of the foregoing). 
 “LIMITED SUBSIDIARY” means (a) any SUBSIDIARY which is not an
INDEMNITOR and (b) any INDEMNITOR which is not a wholly-owned SUBSIDIARY of HOLDINGS; provided , that North American Site Developers, Inc. shall not be deemed to be a LIMITED SUBSIDIARY for purposes of this Agreement. 

“LOSS” means: 
  

	 	(a)	All damages, costs, expenses (including all reasonable attorney fees, expert fees and consulting fees and other liabilities) which TRAVELERS, or any of them, may
sustain or incur by reason of executing or procuring the execution of the BOND(s), or any other BOND(s) which may be already or hereafter executed on behalf of any PRINCIPAL, or any renewal or continuation thereof; or which may be sustained or
incurred by reason of making any investigation on account thereof, prosecuting or defending any action in connection therewith, obtaining a release, recovering or attempting to recover any salvage in connection therewith or enforcing by litigation
or otherwise any of the provisions of this Agreement, including, but not limited to: 

  

	 	(1)	money judgments, amounts paid in settlement or compromise, the full amount of reasonable attorney and other professional fees incurred or paid by TRAVELERS, or any of
them, court costs and fees, and interest at the prime rate or reference rate announced from time to time by Bank of America, N.A. on all sums due it from the fifteenth day following TRAVELERS’s, or any of their, demand for said sums, whether or
not interest has been awarded by a court, provided , that such LOSS is not due to the gross negligence, bad faith or willful misconduct of TRAVELERS, or any of them; and 

 

	 	(2)	any LOSS which TRAVELERS, or any of them, may sustain or incur in connection with the CONTRACT(s) or BOND(s), whether that LOSS results from the activity of any
PRINCIPAL individually or as part of a joint venture, partnership or other entity which has been or may be formed in connection with the performance of the CONTRACT(s) and in which any PRINCIPAL has an ownership interest, provided , that such
LOSS is 

  

 7 
  

 

	 	 
not due to the gross negligence, bad faith or willful misconduct of TRAVELERS, or any of them; and 

 

	 	(3)	any LOSS which TRAVELERS, or any of them, may sustain or incur as a result of any actions taken by TRAVELERS, or any of them, upon information provided by any
INDEMNITOR, provided that such LOSS is not due to the gross negligence, bad faith or willful misconduct of TRAVELERS, or any of them; 

  

	 	(b)	All reasonable legal and consulting fees and related expenses incurred in connection with any application or submission by any PRINCIPAL for a proposal, bid or other
BOND, whether or not TRAVELERS, or any of them, decides to issue said BOND; and 

  

	 	(c)	All premiums, fees, interest and other charges due TRAVELERS, or any of them, in connection with this Agreement or the BOND(s). 

“LYDON” means Lydon Dredging & Construction Company, Ltd., a Canadian corporation. 

“MATERIAL ADVERSE CHANGE” means a material adverse change in the condition (financial or otherwise), business, operations or
prospects of HOLDINGS and its SUBSIDIARIES, taken as a whole. 
 “MERGER AGREEMENT” means that certain Amended and
Restated Agreement and Plan of Merger, dated as of December 22, 2003, among GLDD Acquisitions Corp., a Delaware corporation (“Parent “), GLDD Merger Sub, Inc., a Delaware corporation and a direct wholly-owned subsidiary of Parent,
HOLDINGS and, solely in its capacity as Stockholder Representative thereunder and for purposes of Sections 2.8, 2.9, Article VIII and Article IX thereof, Vectura Holding Company LLC. 

“NET INCOME” means, for any period, the aggregate of all amounts (exclusive of all amounts in respect of any extraordinary or
non-recurring gain or loss (including, without limitation, any write-off of the Chicago Flood litigation insurance receivable)) which, in accordance with GAAP, would be included as net income on a consolidated statement of income of HOLDINGS and its
SUBSIDIARIES for such period. 
 “OBLIGEE” means any named party or parties appearing on the BOND(s) in whose favor
the BOND(s) are issued. 
 “PAYMENT BLOCKAGE NOTICE” has the meaning assigned thereto in the DEBT INDENTURE.

 “PERMITTED LIENS” means: 
  

	 	(a)	any LIEN in favor of TRAVELERS; 

  

 8 
  

 

	 	(b)	LIENS securing the BANK LOAN FACILITY and the obligations arising thereunder (provided, that such LIENS are granted in compliance with and remain subject to the
INTERCREDITOR AGREEMENT); 

  

	 	(c)	LIENS for taxes, assessments or other governmental charges or levies that are either not yet past due or that are being contested in good faith by appropriate
proceedings and for which adequate reserves have been established in accordance with GAAP; 

  

	 	(d)	Carriers’, warehousemen’s, landlord’s, mechanics’, workmen’s and repairmen’s LIENS or other like LIENS arising by operation of law
(including maritime law) in the ordinary course of business and securing sums which are not past due, or that are being contested in good faith by appropriate proceedings and for which adequate reserves have been established in accordance with GAAP;

  

	 	(e)	any LIEN on assets existing on the effective date of this Agreement and listed on Schedule 1.1 to this Agreement and the continuation of any such LIEN upon
a refinancing, renewal or extension of the DEBT secured by such existing LIEN ( provided , that the property subject to such LIEN is limited to the property to which such LIEN is attached prior to the effective date of this Agreement and the
principal amount of such DEBT as of the effective date of this Agreement is not increased); 

  

	 	(f)	any LIEN on capital equipment granted to secure the purchase price thereof; 

 

	 	(g)	any LIEN on capital equipment granted in connection with capitalized leases of such equipment in the ordinary course of business; 

 

	 	(h)	LIENS (other than any LIEN imposed by ERISA or ENVIRONMENTAL LAWS) incurred or deposits (including, without limitation, security deposits) made in the ordinary course
of HOLDINGS’ business or any of its SUBSIDIARIES’ businesses (including, without limitation, surety bonds and appeal bonds) in connection with workers’ compensation, unemployment insurance and other types of social security benefits
or to secure the performance of tenders, bids, contracts (other than for the repayment of borrowed money or to stay a judgment pending an appeal thereof), statutory obligations and other similar obligations or arising as a result of progress
payments under government contracts, but only to the extent that the amounts secured or to be secured by such LIENS are either not delinquent or are being contested in good faith and with respect to which adequate reserves or other appropriate
provisions are being maintained in accordance with GAAP; 

  

	 	(i)	survey exceptions, encumbrances, easements or reservations of, or rights of others for, rights-of-way, sewers, electric lines, telegraph or telephone lines and other
similar purposes, or zoning or other restrictions as to the use of real property or liens incidental to the conduct of such PRINCIPAL or to the ownership of its properties; 

 

 9 
  

 

	 	(j)	judgment LIENS not giving rise to an Event of Default so long as such LIEN is adequately bonded within 15 days after the entry of such judgment;

  

	 	(k)	LIENS arising from filing UCC financing statements for precautionary purposes in connection with true leases of personal property under which HOLDINGS or any SUBSIDIARY
is lessee; 

  

	 	(l)	any LIENS on any property or assets acquired by HOLDINGS or any of its SUBSIDIARIES which LIEN existed prior to the acquisition thereof and was not created in
contemplation of such acquisition, provided , that such LIENS attach only to the property or assets so acquired; 

  

	 	(m)	LIENS securing reimbursement obligations in respect of commercial letters of credit and covering the goods (or the documents of title in respect of such goods) financed
by such letters of credit, which have been issued in the ordinary course of business; 

  

	 	(n)	any LIEN on any asset of any PERSON existing at the time such PERSON is merged or consolidated with or into HOLDINGS or any SUBSIDIARY of HOLDINGS (to the extent such
merger or consolidation is permitted hereunder) and which LIEN was not created in contemplation of such event, provided , that such LIEN attaches only to the assets acquired pursuant to such merger or consolidation; 

 

	 	(o)	LIENS securing any interest rate, swap, hedging, currency, commodity, foreign country risk or other similar agreement; 

 

	 	(p)	leases or subleases (including bareboat charters) granted and entered into with others not interfering in any material respect with the businesses of HOLDINGS and its
SUBSIDIARIES; 

  

	 	(q)	LIENS securing payment of DEBT permitted and described in clause (m) of Section 6.12, and LIENS securing payment of DEBT permitted and described in
clause (d) of Section 6.12 to the extent limited to the accounts receivable financed with such DEBT; 

  

	 	(r)	LIENS on the VESSEL FINANCING COLLATERAL granted to secure the VESSEL FINANCING AGREEMENT; 

 

	 	(s)	renewals or replacements of any of the foregoing, provided that such renewed or replaced LIEN does not extend to property other than that which was encumbered by the
originally permitted LIEN hereunder; 

  

	 	(t)	LIENS arising by operation of law or by contract encumbering insurance policies and proceeds thereof to secure the financing of premiums payable under such policies;

  

 10 
  

 

	 	(u)	customary rights of set-off, revocation, refund, or charge back under deposit agreements or under the Uniform Commercial Code of banks or other financial institutions
(but not in respect of DEBT generally); 

  

	 	(v)	LIENS pursuant to a purchase agreement or sale agreement securing the obligations under such purchase agreement or sale agreement and encumbering solely the assets that
are to be sold in any asset disposition permitted by this Agreement; and 

  

	 	(w)	other LIENS securing obligations that do not exceed an aggregate amount of $5,000,000 at any time outstanding. 

“PERSON” means any entity, whether an individual, trustee, corporation, partnership, joint stock company, limited liability
company, unincorporated organization, business association or firm, joint venture, a government or any agent or instrumentality or political subdivision thereof. 

“PLAN” means any employee benefit plan (as defined in Section 3(3) of ERISA) established, maintained or to which
contributions have been made by any PRINCIPAL. 
 “PLEDGE AGREEMENT” means a Note Pledge Agreement substantially in
the form of Exhibit B hereto, executed by certain of the INDEMNITORS in favor of TRAVELERS, as the same may be amended, restated, supplemented or otherwise modified from time to time. 

“PRINCIPAL” means any of HOLDINGS, GLDDC, LYDON, and any other INDEMNITOR for whom TRAVELERS has executed a BOND; and
PRINCIPALS means collectively all of the foregoing PERSONS. 
 “TRAVELERS” has the meaning set forth in the recitals
to this Agreement. 
 “RESTRICTED AMOUNTS” means, as of any date, each of the following: (a) all DEBT and
CONTINGENT LIABILITIES of the type described in clause (j) of Section 6.12 outstanding on such date, (b) the fair market value of all assets sold from the date hereof through such date pursuant to the terms of clause
(a)(iv)(B) of Section 6.13 , and (c) investments of the type described in clause (e) of Section 6.15 outstanding on such date. 

“SECURITY AGREEMENTS” means, collectively, the SECURITY AGREEMENT (A/R) and each SECURITY AGREEMENT (EQUIPMENT). 

“SECURITY AGREEMENT (A/R)” means a Security Agreement (A/R) substantially in the form of Exhibit C hereto, executed by
the PRINCIPALS (other than LYDON) in favor of TRAVELERS, as the same may be amended, restated, supplemented or otherwise modified from time to time. 

“SECURITY AGREEMENT (EQUIPMENT)” means each of the Security Agreement (Equipment) substantially in the form of Exhibit D
hereto, executed and delivered by each of GLDDC and HOLDINGS (or any other INDEMNITOR which executes a VESSEL 
  

 11 
  

 

 
MORTGAGE after the date hereof) in favor of TRAVELERS, as the same may be amended, restated, supplemented or otherwise modified from time to time. 

“SUBORDINATED DEBT” means all DEBT of HOLDINGS issued pursuant to the DEBT INDENTURE. 

“SUBSIDIARY” of a PERSON means any corporation, association, partnership, limited liability company, joint venture or other
business entity of which more than 50% of the voting stock or other equity interests, is owned or controlled directly or indirectly by such PERSON, or one or more of the SUBSIDIARIES of such PERSON, or a combination thereof. Unless the context
otherwise clearly requires, references herein to a “SUBSIDIARY” refer to a SUBSIDIARY of HOLDINGS. 

“SUPPLEMENTAL SIGNATURE PAGE” means a supplemental signature page to this Agreement in the form of Exhibit A hereto.

 “UNDERWRITING DOCUMENTS” means this Agreement, each of the SECURITY AGREEMENTS, the PLEDGE AGREEMENT, the VESSEL
MORTGAGES, each BOND and any other instrument, document or agreement delivered by any INDEMNITOR in connection herewith. 

“VESSEL FINANCING AGREEMENT” means that certain Credit Agreement, dated as of December 17, 2003, by and between GLDDC and
General Electric Capital Corporation, and the documents, instruments and agreements executed and delivered pursuant thereto, as all of the same may be amended, restated, supplemented or otherwise modified from time to time, and any credit agreement
or other agreement or agreements relating to any refinancing, extension, renewal or replacement, in whole or in part, from time to time thereof. 

“VESSEL FINANCING COLLATERAL” means, collectively, (i) the Vessels Florida (Official No. 506446), Key West (Official
No. 684596) and GL 184 (Official No. 652202), (ii) all insurance and requisition compensation relating to such vessels and any proceeds thereof, and (iii) all charters (other than charters entered into in connection with work
being performed on a bonded project) entered into with respect to such vessels having a duration of nine months or more, and the right to receive payments of all sums thereunder. 

“VESSEL MORTGAGES” means, collectively, (i) the First Preferred Fleet Mortgage substantially in the form of Exhibit
E hereto, executed by GLDDC in favor of TRAVELERS, (ii) the Second Preferred Fleet Mortgage substantially in the form of Exhibit F hereto, executed by GLDDC in favor of TRAVELERS, (iii) the First Preferred Fleet Mortgage
substantially in the form of Exhibit E hereto, executed by HOLDINGS in favor of TRAVELERS, (iv) the Second Preferred Fleet Mortgage substantially in the form of Exhibit F hereto, executed by HOLDINGS in favor of TRAVELERS,
and (v) any other fleet mortgages or vessel mortgages at any time hereafter executed and delivered by any INDEMNITOR in connection with this Agreement and the other UNDERWRITING DOCUMENTS; in each case as any of the foregoing documents may be
amended, restated, supplemented or otherwise modified from time to time. 
 SECTION 1.2 USE OF DEFINED
TERMS. Any collective defined term and any defined term used in the plural shall be taken to encompass all members of the relevant class.

 

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Any defined term used in the singular preceded by “any” shall be taken to indicate any number of the members of the relevant class. A reference to any PERSON shall include all
predecessors in interest of such PERSON and any successors or assigns of such PERSON, including successors by way of merger, acquisition or similar event. Any defined term used in the singular and preceded by the word “each” shall
indicate all members of the relevant class, individually. A Section or an Exhibit or a Schedule is, unless otherwise stated, a reference to a section hereof or an exhibit or a schedule hereto, as the case may be. The
words “hereof,” “herein,” “hereto” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement.

 SECTION 1.3 ACCOUNTING PRINCIPLES. Unless the context otherwise clearly requires, all accounting terms
not expressly defined herein shall be construed, and all financial computations required under this Agreement shall be made, in accordance with GAAP, consistently applied. 

ARTICLE II 

BOND FACILITY 

SECTION 2.1 BONDS. Subject to the terms of this Agreement, TRAVELERS agrees to provide or procure surety bonds for
or on behalf of the PRINCIPALS; provided , that TRAVELERS reserves the right to decline to execute any BOND(s) and if TRAVELERS executes any proposal or bid bond and if any PRINCIPAL is awarded the CONTRACT(s), TRAVELERS shall not be
obligated to execute any BOND(s) required to perform the awarded contract. No claim shall be made, nor any cause of action asserted against TRAVELERS as a consequence of its failure to execute any BOND(s). 

SECTION 2.2 PREMIUM PAYMENT. Each PRINCIPAL agrees to pay all premiums on the BOND(s) issued for such PRINCIPAL,
computed in accordance with the regular manual of rates in effect on the date such BOND(s) are executed; such payments to be made within 45 days of receipt by INDEMNITORS of a statement therefor from TRAVELERS pursuant to the payment directions
stated therein or as otherwise agreed to between INDEMNITORS and TRAVELERS. The failure of any PRINCIPAL to pay the bond premiums or the failure of TRAVELERS to receive premiums shall not provide INDEMNITORS with any defense to an action under
this Agreement. 
 ARTICLE III 

INDEMNIFICATION 

SECTION 3.1 INDEMNITY. INDEMNITORS agree to indemnify, and keep indemnified, and hold and save harmless TRAVELERS
against all LOSS; provided , that in no event shall any INDEMNITOR indemnify or hold harmless TRAVELERS against any LOSS arising out of the gross negligence, bad faith or willful misconduct of TRAVELERS. The duty of INDEMNITORS to
indemnify TRAVELERS is a continuing duty, separate from the duty to exonerate, and survives any payments made in exoneration of TRAVELERS. Amounts due TRAVELERS pursuant to this Section shall be payable within fifteen (15) days of
receipt by 
  

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INDEMNITORS of written demand therefor. Notwithstanding anything to the contrary herein, any INDEMNITOR which is not a wholly-owned SUBSIDIARY of HOLDINGS (other than North American Site
Developers, Inc.) shall indemnify and hold and save TRAVELERS harmless only as to any LOSS incurred by or on behalf of such INDEMNITOR. 

SECTION 3.2 EXONERATION. INDEMNITORS recognize and acknowledge the common law right of TRAVELERS to be exonerated
by PRINCIPAL for any LOSS arising out of any surety obligation undertaken by TRAVELERS in connection with any BOND, provided , that in no event shall any INDEMNITOR exonerate TRAVELERS for any LOSS arising out of the gross negligence, bad
faith or willful misconduct of TRAVELERS. In the event any PRINCIPAL fails or refuses to exonerate TRAVELERS for any LOSS upon written demand therefor, all INDEMNITORS other than such PRINCIPAL agree, upon such demand by TRAVELERS, to exonerate
TRAVELERS from LOSS to the same extent such INDEMNITORS agree to indemnify TRAVELERS as provided in Section 3.1 , by satisfying such PRINCIPAL’s obligations under the CONTRACT(s) and obtaining either a withdrawal of all claims
against TRAVELERS under the BOND(s) or a general release. Notwithstanding anything to the contrary contained herein, any INDEMNITOR which is not a wholly-owned SUBSIDIARY of HOLDINGS (other than North American Site Developers, Inc.) shall
exonerate TRAVELERS only as to BONDS issued for or on behalf of such INDEMNITOR. 
 SECTION 3.3 CASH
COLLATERAL. Upon refusal or failure of any PRINCIPAL to exonerate TRAVELERS in accordance with the terms hereof, INDEMNITORS agree within ten (10) days of demand therefor to deposit with TRAVELERS an amount of money or other collateral
of value adequate in the reasonable judgment of TRAVELERS to exonerate TRAVELERS, such funds to be held by TRAVELERS as collateral pursuant to documentation reasonably acceptable to TRAVELERS, with the right to use such funds or any part thereof at
any time in payment or compromise of such LOSS, and in which funds INDEMNITORS do hereby grant to TRAVELERS a security interest to secure such LOSS. Unexpended funds by TRAVELERS pursuant to a request for exoneration hereunder shall be repaid
to HOLDINGS and its SUBSIDIARIES when the liability of TRAVELERS arising out of the event for which exoneration was requested has been resolved to the reasonable satisfaction of TRAVELERS and TRAVELERS shall have been furnished with full releases of
all liability under a surety obligation and have been reimbursed in full for all LOSS. Interest earned (if any) upon funds held by TRAVELERS pursuant to a request for exoneration under this Section which is not otherwise expended in
accordance with this Section shall be paid to HOLDINGS and its SUBSIDIARIES. 
 SECTION 3.4 WAIVER OF CLAIMS
AND HOLD HARMLESS. Each INDEMNITOR specifically agrees to protect, indemnify and hold harmless TRAVELERS, each of its officers, directors, employees, agents and its attorneys-in-fact against any and all LOSS that may in any way arise in
connection with this Agreement and the other UNDERWRITING DOCUMENTS and the powers herein granted, specifically waiving any claim which any INDEMNITOR has or might hereafter have against TRAVELERS or its attorneys-in-fact on account of anything done
in enforcing the terms of this Agreement, the BOND(s) or any other UNDERWRITING DOCUMENT except for any LOSS due to the gross negligence, bad faith, or willful misconduct of TRAVELERS. Until all obligations owing to TRAVELERS hereunder have
been paid in full, each INDEMNITOR hereby waives and relinquishes in favor of 
  

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TRAVELERS any claim or right to payment that such INDEMNITOR may have or hereafter have or acquire against any PRINCIPAL or other INDEMNITOR by subrogation, indemnification, contribution or
otherwise. 
 SECTION 3.5 WITHDRAWAL FROM AND TERMINATION OF AGREEMENT. (a)Each INDEMNITOR expressly
recognizes and covenants this Agreement as its continuing obligation to protect TRAVELERS from all LOSS. Any INDEMNITOR may notify TRAVELERS in writing of such INDEMNITOR’s withdrawal from this Agreement; and such notice shall state when,
not less than fifteen (15) days after receipt of such notice by TRAVELERS, such withdrawal shall be effective. Such INDEMNITOR will not be liable under this Agreement as to any BOND(s) executed by TRAVELERS after the effective date of such
notice; provided , that as to any and all such BOND(s) executed or authorized by TRAVELERS prior to the effective date of such notice and as to any and all renewals, continuations, extensions, or substitutions (and, if a proposal or bid bond
has been executed or authorized prior to such effective date, as to any contract bond executed pursuant thereto) regardless of when the same are executed, such INDEMNITOR shall be and remain fully liable hereunder, as if notice had not been
served. Withdrawal by any INDEMNITOR shall in no way affect the obligation of any other INDEMNITOR who has given no notice of termination to TRAVELERS. 

(b) HOLDINGS may notify TRAVELERS of the termination of this Agreement by delivering written notice of such termination to
TRAVELERS, such termination to be effective on a date specified in such notice which date shall not be less than fifteen (15) days from receipt of such notice; provided , that no such termination shall be effective at any time when any
BONDS shall remain outstanding or any obligations under this Agreement shall remain unpaid. 

SECTION 3.6 INDEMNITORS AGREE TO BECOME PARTY DEFENDANTS. In the event of legal proceedings against TRAVELERS
arising out of this Agreement or the BONDS, TRAVELERS may apply for a court order making any or all of the INDEMNITORS party defendants, and each INDEMNITOR consents to the granting of such application, including consent to the jurisdiction of the
court in which the application is made, and agrees to become such a party defendant or third-party defendant and to allow judgment, in the event of judgment against TRAVELERS, to be rendered also against each INDEMNITOR, jointly and severally, in
like amount and in favor of TRAVELERS unless such judgment is due to the gross negligence, bad faith or willful misconduct of TRAVELERS. 

SECTION 3.7 INDEMNITORS’ WAIVER OF NOTICE. INDEMNITORS waive notice of the execution, continuation,
modification, renewal, enlargement or amendment of any BOND and of any fact, act or information concerning or affecting the rights or liabilities of TRAVELERS or INDEMNITORS including, but not limited to, any acts giving rise to any LOSS under the
BOND(s). 
 SECTION 3.8 INDEMNITORS’ KNOWING CONSENT TO AGREEMENT. Each INDEMNITOR warrants that it
is specifically and beneficially interested in obtaining the BOND(s) or the forbearance of cancellation of any existing BOND(s). INDEMNITORS acknowledge that the execution of this Agreement and the undertaking of indemnity was not made in
reliance upon any representation concerning the responsibility of any INDEMNITOR or concerning the competence of PRINCIPAL to perform. INDEMNITORS agree to make no 

 

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claim against TRAVELERS for any oral representations, promises or statements made to any of them by TRAVELERS or any of its agents or brokers, or for the failure of TRAVELERS to disclose facts or
information to INDEMNITORS. 
 SECTION 3.9 INDEMNITORS’ DUTY TO REMAIN INFORMED OF PRINCIPAL’S
BUSINESS. INDEMNITORS possess the duty to remain informed of all aspects of each PRINCIPAL’s business and the business activities and financial affairs of each PRINCIPAL. INDEMNITORS acknowledge that they are presently informed of
the state of business activities and financial affairs of each PRINCIPAL and all INDEMNITORS. TRAVELERS possesses no obligation to inform any INDEMNITOR of any aspect of any PRINCIPAL’s business or the business activities and financial
affairs of the INDEMNITORS or of the request for, or issuance of, any BOND(s). 
 SECTION 3.10 ENFORCEABILITY OF
RIGHTS DIRECTLY AGAINST INDEMNITORS. TRAVELERS shall be entitled to enforce the obligations of this AGREEMENT directly against any INDEMNITOR without the necessity of first proceeding against the PRINCIPAL. The failure of any
INDEMNITOR to perform any of the terms of this Agreement or the release of any INDEMNITOR by TRAVELERS shall not excuse or release the remaining INDEMNITORS from their obligations under this Agreement. 

SECTION 3.11 ADDITIONAL INDEMNITORS. INDEMNITORS acknowledge that this Agreement can be amended by the execution
and delivery of a SUPPLEMENTAL SIGNATURE PAGE to add another PERSON as an INDEMNITOR to this Agreement and INDEMNITORS waive any and all notice in connection with the addition of additional INDEMNITORS, and further acknowledge the rights and
obligations provided herein shall apply to all INDEMNITORS whenever made a party to this Agreement. 
 ARTICLE IV

 CONDITIONS PRECEDENT 

SECTION 4.1 CONDITION PRECEDENT TO EFFECTIVENESS OF THIS AGREEMENT. The effectiveness of this Agreement is subject
to the condition precedent that TRAVELERS shall have received on or before the day hereof each of the following, in form and substance satisfactory to TRAVELERS and its counsel: 

 

	 	(a)	A SECURITY AGREEMENT (A/R) duly executed by each PRINCIPAL (other than LYDON) and, unless already filed, executed Financing Statements (UCC-1) to be filed in all
jurisdictions in the opinion of TRAVELERS desirable to perfect the security interest created by such SECURITY AGREEMENT (A/R); 

  

	 	(b)	The VESSEL MORTGAGES duly executed by the mortgagee party thereto, together with (i) any supplements thereto as applicable, and (ii) proper documentation
releasing all other LIENS, if any, on the related vessels; 

  

	 	(c)	 A SECURITY AGREEMENT (EQUIPMENT) duly executed by each INDEMNITOR party to a VESSEL MORTGAGE and, unless already filed, executed Financing Statements
(UCC-1) to be filed in all jurisdictions in the 

  

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opinion of TRAVELERS desirable to perfect the security interest created by such SECURITY AGREEMENT (EQUIPMENT); 

 

	 	(d)	The PLEDGE AGREEMENT duly executed by the INDEMNITORS referenced on the signature pages thereto together with a photocopy of the Master Intercompany Demand Note,
evidence that Bank of America, N.A., as administrative agent under the BANK LOAN FACILITY is in receipt of the original of such Note and executed Financing Statements (UCC-1) to be filed in all jurisdictions in the opinion of TRAVELERS desirable to
perfect the security interest created by such PLEDGE AGREEMENT; 

  

	 	(e)	The INTERCREDITOR AGREEMENT and the Proceeds Agent Agreement contemplated thereby, duly executed by the PRINCIPALS, TRAVELERS and the other parties thereto;

  

	 	(f)	A favorable opinion of Winston & Strawn LLP, counsel to the PRINCIPALS and INDEMNlTORS, addressing such legal matters as TRAVELERS may require;

  

	 	(g)	An officer’s certificate of HOLDINGS certifying that the BANK LOAN FACILITY, the MERGER AGREEMENT and the DEBT INDENTURE are in full force and effect, and
attaching true and correct copies of the principal documents thereof; 

  

	 	(h)	A secretary’s certificate of each INDEMNITOR certifying copies of such party’s organizational documents, appropriate resolutions authorizing the execution,
delivery and performance of this Agreement and the other UNDERWRITING DOCUMENTS to which such party is a party and certifying incumbencies and true signatures of its officers so authorized; 

 

	 	(i)	Evidence of the good standing of each INDEMNITOR in the jurisdiction in which such party is organized; 

 

	 	(j)	Evidence of the existence of insurance on the property of each PRINCIPAL, together with evidence establishing TRAVELERS as a loss payee and/or additional insured on all
insurance policies relating to any tangible property on which TRAVELERS has a first LIEN under the VESSEL MORTGAGES and each SECURITY AGREEMENT (EQUIPMENT); 

 

	 	(k)	Such other information and documents as may reasonably be required by TRAVELERS. 

SECTION 4.2 CONDITIONS PRECEDENT TO ALL BONDS. The obligation of TRAVELERS to issue any BOND shall be subject to
the further conditions precedent that on the date of such issuance: 
  

	 	(a)	The following statements shall be true and, by its request for the issuance of such BOND, the applicable PRINCIPAL shall be deemed to have certified to TRAVELERS that
as of the date of such issuance: 

  

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	 	(i)	the representations and warranties contained in Article V of this Agreement, in Section 4 of the SECURITY AGREEMENT (A/R), in
Section 4 of each SECURITY AGREEMENT (EQUIPMENT), in Section 4 of the PLEDGE AGREEMENT and in Article I of each of the VESSEL MORTGAGES are correct in all material respects on and as of the date of such issuance
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; 

 

	 	(ii)	no authorizations, approvals or consents of, and no filings or registrations with (other than those previously made or obtained) any governmental or regulatory
authority or agency are necessary for the continued performance by each PRINCIPAL and each INDEMNITOR of the UNDERWRITING DOCUMENTS to which each is a party, or for the continued validity and enforceability thereof with respect to each PRINCIPAL and
each INDEMNITOR which is a party thereto; and 

  

	 	(iii)	no EVENT OF DEFAULT has occurred and is continuing, or would result from the issuance of such BOND; 

 

	 	(b)	TRAVELERS shall have received each of the following: 

  

	 	(i)	a SECURITY AGREEMENT (A/R) duly executed by the PRINCIPAL (other than LYDON) for whom such BOND is issued unless such PRINCIPAL previously delivered a SECURITY
AGREEMENT (A/R) pursuant to SECTION 4.1(a) , together with acknowledgment copies of the Financing Statements (UCC-1) required to be filed pursuant to SECTION 4.1(a) ; and 

 

	 	(ii)	such other approvals and documents as TRAVELERS may reasonably request. 

ARTICLE V 

REPRESENTATIONS AND WARRANTIES 

The PRINCIPALS represent and warrant to TRAVELERS that 

SECTION 5.1 INCORPORATION, GOOD STANDING, AND DUE QUALIFICATION. HOLDINGS and each SUBSIDIARY: (a) is a
corporation or other legal entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization; (b) has the organizational power and authority, and has all material governmental licenses,
authorizations, consents and approvals, necessary to own its assets and to transact the business in which it is now engaged or proposed to be engaged, except to the extent the failure thereof could not reasonably be expected to have a MATERIAL
ADVERSE CHANGE; and (c) is duly qualified as a foreign organization and in good standing under the laws of each other jurisdiction in which such qualification is required except to the extent the 

 

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failure to so qualify could not reasonably be expected to name a MATERIAL ADVERSE CHANGE. 

SECTION 5.2 CORPORATE POWER AND AUTHORITY. The execution, delivery, and performance by each PRINCIPAL and each
INDEMNITOR of the UNDERWRITING DOCUMENTS to which each is a party have been duly authorized by all necessary organizational and stockholder action and do not and will not (a) contravene such party’s organizational documents;
(b) violate any provision of any material law, rule, regulation, order, writ, judgment, injunction, decree, determination, or award presently in effect having applicability to such party; (c) result in a breach of or constitute a default
under any material indenture or loan or credit agreement or any other material agreement, lease, or instrument to which such party is a party or by which it or its properties may be bound or affected (except where the appropriate consents have been
obtained); (d) result in, or require, the creation or imposition of any Lien (except LIENS in favor of TRAVELERS and LIENS arising under the BANK CREDIT FACILITY), upon or with respect to any of the properties now owned or hereafter acquired by
such party; or (e) cause such party to be in default under any such law, rule, regulation, order, writ, judgment, injunction, decree, determination, or award or any such indenture, agreement, lease, or instrument (except where the appropriate
consents have been obtained). 
 SECTION 5.3 LEGALLY ENFORCEABLE AGREEMENT. This Agreement is, and each of
the other UNDERWRITING DOCUMENTS when delivered under this Agreement will be, legal, valid, and binding obligations of each PRINCIPAL and each INDEMNITOR party thereto, enforceable against such PRINCIPAL or INDEMNITOR, as the case may be, in
accordance with their respective terms, except to the extent that such enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights generally and by equitable
principles (regardless of whether enforcement is sought at law or in equity). 

SECTION 5.4 APPROVALS. Except for filings and recordings of Liens created pursuant to the SECURITY AGREEMENTS and
the VESSEL MORTGAGES, as of the date of this Agreement, no authorizations, approvals or consents of, and no filings or registrations with, any governmental or regulatory authority or agency are necessary for the execution, delivery or performance by
each PRINCIPAL and each INDEMNITOR of the UNDERWRITING DOCUMENTS to which each is a party or for the validity or enforceability thereof, other than those which have been heretofore made or obtained. 

SECTION 5.5 OWNERSHIP AND LIENS. Each of HOLDINGS and each SUBSIDIARY has title to, or valid leasehold interests
in, all of its properties and assets, real and personal, that are necessary for conduct of such Person’s business and none of the material properties and assets owned by HOLDINGS or any SUBSIDIARY and none of their respective material leasehold
interests is subject to any LIEN, except such as may be permitted pursuant to Section 6.11 of this Agreement. 

SECTION 5.6 TAXES. Each of HOLDINGS and each SUBSIDIARY has filed all material tax returns (federal, state, and
local) required to be filed and has paid all taxes, assessments, and governmental charges and levies thereon to be due, including interest and 
  

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penalties, except to the extent the validity thereof is being contested in good faith by appropriate proceedings and for which adequate reserves have been set aside on its books in accordance
with GAAP. 
 SECTION 5.7 INSURANCE. As of the date of this Agreement, each PRINCIPAL has insurance in
force as disclosed in Schedule 5.7 attached hereto and made a part hereof. 

SECTION 5.8 COMPLIANCE. Each of HOLDINGS and each SUBSIDIARY is in material compliance with all statutes and
governmental rules and regulations applicable to it, including without limitation, ERISA insofar as ERISA applies to it, except to the extent the failure to be in compliance therewith could not reasonably be expected to have a MATERIAL ADVERSE
CHANGE. No condition exists or event or transaction has occurred in connection with any PLAN which could result in any liability, fine or penalty being asserted against HOLDINGS or any SUBSIDIARY, in an aggregate amount in excess of $5,000,000.

 SECTION 5.9 LITIGATION. There is no action, suit or proceeding pending against, or to the knowledge of
HOLDINGS threatened against or affecting, HOLDINGS or any SUBSIDIARY before any court or arbitrator or any government body, agency or official in which there is a reasonable likelihood of an adverse decision which could reasonably be expected to
have a MATERIAL ADVERSE CHANGE or which in any manner draws into question the validity of this Agreement except those referred to in Schedule 5.9 attached hereto and made a part hereof. 

SECTION 5.10 SUBSIDIARIES. Schedule 5.10 attached hereto and made a part hereof sets forth a complete
and accurate list, as of the date of this Agreement, of each SUBSIDIARY of HOLDINGS and each SUBSIDIARY set forth on Schedule 5.10 and designated with an asterisk (“*”) is a wholly-owned SUBSIDIARY of HOLDINGS. 

SECTION 5.11 REAL PROPERTY. Schedule 5.11 contains a complete and accurate list, as of the date of this
Agreement, of the address of any real property owned or leased by each PRINCIPAL with a net book value in excess of $750,000. 

SECTION 5.12 EQUIPMENT. Schedule 5.12 attached hereto and made a part hereof sets forth a complete and
accurate list, as of the date of this Agreement, of each item of equipment with a net book value in excess of $750,000 owned or leased by each PRINCIPAL. 

SECTION 5.13 VESSELS. Schedule 5.13 attached hereto and made a part hereof sets forth a complete and
accurate list, as of the date of this Agreement, of all vessels owned of record by any PRINCIPAL with a net book value in excess of $750,000 and, except as set forth on Schedule 5.13 , each such vessel has all certificates required under
applicable law (except where the failure could not reasonably be expected to have a MATERIAL ADVERSE CHANGE), including, without limitation, certificates of documentation, and, except as set forth on Schedule 5.13 , each such vessel has
been certified by the U.S. Coast Guard. Each such certificate is in full force and effect and each such vessel is in seaworthy and operational condition. TRAVELERS has (or will have upon proper filing of the VESSEL MORTGAGES with the U.S.
Coast Guard) a perfected security interest, arising pursuant to the VESSEL MORTGAGES, in each vessel set forth on Schedule 5.13 and designated with an asterisk (“*”). 

 

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 ARTICLE VI 

COVENANT S 
 So
long as any BONDS shall remain outstanding, HOLDINGS hereby covenants and agrees with TRAVELERS as follows: 

SECTION 6.1 CORPORATE EXISTENCE. HOLDINGS will, and will cause each SUBSIDIARY to, maintain its legal existence (in
good standing where appropriate under local law) and remain or become duly qualified or licensed (and in good standing where appropriate under local law) as a foreign organization in each jurisdiction in which the conduct of its businesses or
location of its assets requires such qualification or license, except where the failure to take any such action could not in the aggregate reasonably be expected to have a MATERIAL ADVERSE CHANGE. 

SECTION 6.2 MAINTENANCE OF RECORDS. HOLDINGS will, and will cause each SUBSIDIARY to, keep adequate records and
books of account, in which complete entries will be made in accordance with GAAP consistently applied. 

SECTION 6.3 MAINTENANCE OF PROPERTIES. HOLDINGS will, and will cause each SUBSIDIARY to, maintain, keep and
preserve all of its properties (tangible and intangible) necessary or useful in its business in good working order and condition, ordinary wear and tear and damage caused by casualty excepted. 

SECTION 6.4 MAINTENANCE OF INSURANCE. HOLDINGS will, and will cause each SUBSIDIARY to, maintain insurance with
financially sound and reputable insurance companies or associations (i) listed on Schedule 6.4 , (ii) that have an A.M. Best policy-holders rating of not less than A, or if no such rating is applicable, that have a quality
comparable to those rated A or better, or (iii) as TRAVELERS may reasonably approve, in such amounts and covering such risks as are usually carried by companies engaged in the same or a similar business and similarly situated, which insurance
may provide for reasonable deductibility from coverage thereof. HOLDINGS further agrees to furnish TRAVELERS upon written request with an annual report on the insurance in force and with copies of the policies of said insurance evidencing the
existence of the coverage called for by this Agreement. 
 SECTION 6.5 COMPLIANCE WITH LAWS. HOLDINGS
will, and will cause each SUBSIDIARY to, comply in all respects with all applicable laws, rules, regulations, and orders the failure to comply with which could reasonably be expected to have a MATERIAL ADVERSE CHANGE, such compliance to include,
without limitation, paying before the same become delinquent all material taxes, assessments, and governmental charges imposed upon it or upon its property, except taxes, assessments and governmental charges being contested in good faith by
appropriate proceedings and for which adequate reserves have been set aside on its books in accordance with GAAP. 

SECTION 6.6 TAXES. HOLDINGS will, and will cause each SUBSIDIARY to, promptly pay all of its material taxes,
assessments and other governmental charges prior to the date on which all penalties are attached thereto; provided , that nothing herein contained shall be 

 

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interpreted to require the payment of any tax, assessment or charge so long as its validity is being contested in good faith by appropriate proceedings and for which adequate reserves have been
set aside on its books in accordance with GAAP. 
 SECTION 6.7 BOOKS AND RECORDS. Until TRAVELERS shall
have been furnished with evidence satisfactory to it that it has been discharged from its obligations under all BONDS without LOSS, upon reasonable prior notice TRAVELERS shall have the right at reasonable times during normal business hours to free
access to the books and records of each of HOLDINGS and its SUBSIDIARIES, including, without limitation, its books, records, accounts, computer software and other computer-stored information, for the purpose of examining, copying, or reproducing the
same. Following the occurrence and during the continuance of an EVENT OF DEFAULT, each PRINCIPAL authorizes and requests any and all depositories in which funds of such PRINCIPAL may be deposited to furnish to TRAVELERS upon TRAVELERS’s
written request statements of its account and any other documents reflecting its receipts and disbursements, and any PERSON doing business with such PRINCIPAL is authorized to furnish any information requested by TRAVELERS concerning any
transaction. Subject to Section 8.11 , TRAVELERS may furnish copies of any and all statements, agreements and FINANCIAL STATEMENTS and any information which it now has or may obtain concerning each of HOLDINGS and its SUBSIDIARIES
to other PERSONS for the purpose of procuring co-suretyship or reinsurance. 
 SECTION 6.8 FINANCIAL RECORDS AND
REPORTS. HOLDINGS will provide TRAVELERS with copies of yearly audited FINANCIAL STATEMENTS of HOLDINGS and its SUBSIDIARIES on a consolidated basis as soon as possible upon completion and in no event later than ninety (90) days after
the end of the period under audit. In addition, HOLDINGS will furnish TRAVELERS with true copies of quarterly unaudited FINANCIAL STATEMENTS of HOLDINGS and its SUBSIDIARIES on a consolidated basis, and such other financial information in a
form as TRAVELERS may reasonably request, upon completion and in no event later than forty-five (45) days after the end of each of the first three fiscal quarters of each fiscal year. The FINANCIAL STATEMENTS to be provided by HOLDINGS
will be prepared in conformity with GAAP (except, with respect to unaudited FINANCIAL STATEMENTS, for the absence of footnotes and subject to year-end audit adjustments) applied on a basis consistent with that of the preceding fiscal year and in
each instance will present fairly and accurately the financial condition of HOLDINGS and its SUBSIDIARIES on a consolidated basis as at the dates of the statements and the results of their operations for the periods then ended. HOLDINGS agrees
to promptly notify TRAVELERS of the occurrence of any MATERIAL ADVERSE CHANGE. 
 SECTION 6.9 PRINCIPALS’
REPRESENTATION. HOLDINGS will provide TRAVELERS on a quarterly basis with a letter in which an AUTHORIZED OFFICER of HOLDINGS represents that to his or her knowledge, as of the date of such quarter end, no condition, event or act exists
which constitutes, or which with notice or the lapse of time, or both, would constitute an EVENT OF DEFAULT. This letter shall accompany each delivery of FINANCIAL STATEMENTS required by Section 6.8 hereof. 

SECTION 6.10 NOTICE OF LITIGATION. HOLDINGS shall promptly give notice in writing to TRAVELERS of (a) any
litigation filed or threatened against HOLDINGS or any of 
  

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its SUBSIDIARIES involving an amount in excess of $6,000,000 which claim is not covered by insurance and (b) all litigation filed against any INDEMNITOR associated with any CONTRACT with
respect to which five or more separate litigation matters are then pending. 

SECTION 6.11 LIENS. HOLDINGS will not, and will not permit any SUBSIDIARY to create, incur, assume, or suffer to
exist any LIEN upon any of its properties or assets now owned or hereafter acquired, except for PERMITTED LIENS. 

SECTION 6.12 DEBT AND CONTINGENT LIABILITIES. HOLDINGS will not, and will not permit any SUBSIDIARY to, incur,
assume, or suffer to exist any DEBT or CONTINGENT LIABILITY, except for: 
  

	 	(a)	DEBT and CONTINGENT LIABILITY existing at the effective date of this Agreement and disclosed on Schedule 6.12 attached hereto and any renewals, extensions,
refinancings or replacements thereof, provided , that the terms thereof are not materially more burdensome on the INDEMNITORS than the existing terms; 

 

	 	(b)	endorsement of instruments for deposit or collection in the ordinary course of business; 

 

	 	(c)	CONTINGENT LIABILITIES in connection with third-party leases, repurchase agreements or sales in the ordinary course of business; 

 

	 	(d)	DEBT and CONTINGENT LIABILITIES in respect of factoring or financing of accounts receivable with respect to any contract or series of contracts under which the amounts
payable to HOLDINGS or any SUBSIDIARY are payable in whole or in part in the currency of any country other than the United States of America, sold or pledged on a non-recourse basis in an aggregate amount not to exceed $10,000,000;

  

	 	(e)	DEBT of the PRINCIPALS and INDEMNITORS arising under this Agreement and under the other UNDERWRITING DOCUMENTS; 

 

	 	(f)	DEBT and CONTINGENT LIABILITIES arising under (i) the BANK LOAN FACILITY; provided, that the aggregate principal amount of all loans plus the undrawn face
amount of all letters of credit outstanding under the BANK LOAN FACILITY shall at no time exceed $130,000,000; (ii) the DEBT INDENTURE; provided , that the aggregate principal amount outstanding under the DEBT INDENTURE shall at no time
exceed $175,000,000; and (iii) the 1998 DEBT INDENTURE (as defined in the EXISTING AGREEMENT) in the aggregate principal amount outstanding of approximately $26,940,000; provided , that HOLDINGS will redeem such DEBT promptly following
the date hereof and in any event by February 15, 2004, and that the amount necessary to redeem such DEBT shall have been irrevocably committed or set aside in a manner reasonably acceptable to TRAVELERS until application thereof to redeem such
DEBT; 

  

	 	(g)	DEBT and CONTINGENT LIABILITIES under or in respect of capital leases; 

 

 23 
  

 

	 	(h)	DEBT of HOLDINGS to any SUBSIDIARY and DEBT of any SUBSIDIARY to HOLDINGS or any other SUBSIDIARY to the extent permitted by Section 6.15 ;

  

	 	(i)	DEBT consisting of deferred payment obligations of a PRINCIPAL for insurance premiums or of funds borrowed for the payment of such premiums; 

 

	 	(j)	CONTINGENT LIABILITIES consisting of guaranties by HOLDINGS or any SUBSIDIARY of obligations of HOLDINGS or any SUBSIDIARY, as the case may be, under any DEBT otherwise
permitted hereunder or under any lease or other agreement (not representing DEBT) entered into in the ordinary course of business; provided , that the aggregate amount of such CONTINGENT LIABILITIES of INDEMNITORS relating to DEBT of LIMITED
SUBSIDIARIES, when added to the other RESTRICTED AMOUNTS then outstanding, shall not exceed at any time $30,000,000; 

  

	 	(k)	DEBT incurred in the ordinary course of business in the nature of open accounts (extended by suppliers on normal trade terms in connection with purchasers of goods or
services) accrued liabilities and deferred income, taxes and judgments or orders for the payment of money to the extent such judgments or orders do not result in any EVENT OF DEFAULT; 

 

	 	(l)	DEBT and CONTINGENT LIABILITIES incurred to finance the acquisition, construction, repair or improvement of assets in the ordinary course of business so long as the
amount of such DEBT does not exceed the purchase price, construction cost, repair cost or improvement cost of the assets acquired, constructed, repaired or improved with the proceeds thereof; 

 

	 	(m)	DEBT arising from the issuance of license, bid, performance and lien bonds, and other undertakings or instruments of guaranty, whether issued by TRAVELERS or any other
surety for the benefit of HOLDINGS or any SUBSIDIARY; 

  

	 	(n)	DEBT incurred in connection with any interest rate hedging transaction, foreign currency or commodity hedging transactions, foreign exchange contract or other similar
arrangement entered into by HOLDINGS or any SUBSIDIARY; 

  

	 	(o)	CONTINGENT LIABILITIES consisting of guaranties by HOLDINGS or any SUBSIDIARY of obligations of Amboy Aggregates, a New Jersey joint venture, and its SUBSIDIARIES;
provided , that the aggregate amount of such CONTINGENT LIABILITIES of INDEMNITORS, shall not exceed at any time $17,000,000; 

  

	 	(p)	DEBT OF SUBSIDIARIES which represents the assumption by such SUBSIDIARIES of DEBT of another SUBSIDIARY in connection with the merger of such other SUBSIDIARY with and
into the assuming SUBSIDIARY or the purchase of all or substantially all of the assets of such other SUBSIDIARY; 

  

	 	(q)	all premiums, interest, fees, expenses, indemnities, charges and additional or contingent interest on obligations described in this Section 6.12 ;

  

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	 	(r)	DEBT and CONTINGENT LIABILITIES in respect of taxes, assessments, governmental charges, to the extent that payment thereof is not required pursuant to
Section 6.6 ; 

  

	 	(s)	DEBT and CONTINGENT LIABILITIES arising under the VESSEL FINANCING AGREEMENT, provided that the aggregate principal amount thereunder does not exceed $23,400,000
at any time outstanding; 

  

	 	(t)	unsecured DEBT used to repurchase capital stock of GLDD Acquisitions Corp. from former employees, at any time outstanding not to exceed in the aggregate $5,000,000;

  

	 	(u)	CONTINGENT LIABILITIES otherwise permitted by this Agreement; and 

  

	 	(v)	other DEBT of HOLDINGS and its SUBSIDIARIES in an aggregate amount, determined on a consolidated basis with respect to HOLDINGS and its SUBSIDIARIES, at any time
outstanding not to exceed $10,000,000. 

 SECTION 6.13 DISPOSITION OF ASSETS; ISSUANCE OF EQUITY.

 (a) Except for PERMITTED LIENS, HOLDINGS will not, and will not permit its SUBSIDIARIES to, sell, lease, transfer, or
otherwise dispose of its assets whether now owned or hereafter acquired except for 
 (i) sales of inventory
in the ordinary course of business, 
 (ii) the sale or other disposition of any investment of the type
described in clauses (a) through (e), (h) and (j) of Section 6.15, 
 (iii) a
disposition made in connection with a sale and leaseback transaction involving the sale or disposition of capital assets, provided (A) such sale or disposition is for an amount not less than the fair market value thereof and (B) any DEBT
arising in connection therewith is permitted by Section 6.12 , 
 (iv) a sale, lease or other
disposition that either (A) is made in the ordinary course of business for fair market value, (B) is a sale, lease or transfer from HOLDINGS to any SUBSIDIARY or from a SUBSIDIARY to HOLDINGS or any other SUBSIDIARY; provided ,
that, in the case of a sale, lease or other disposition by HOLDINGS or any SUBSIDIARY which is not a LIMITED SUBSIDIARY to a LIMITED SUBSIDIARY, the fair market value of such assets, when added to the other RESTRICTED AMOUNTS then outstanding, shall
not exceed at any time $30,000,000 or (C) is a lease (on a short-term or long-term basis) to another Person of assets no longer useful or necessary in the operations of businesses of HOLDINGS and its SUBSIDIARIES, 

(v) a sale or other disposition of assets no longer useful or necessary in the operations or businesses of HOLDINGS
and its SUBSIDIARIES and the purchase price is not less than the fair market value of the asset sold or disposed of, 
  

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 (vi) a sale or other disposition of accounts receivable arising in the
ordinary course of business which are overdue and which HOLDINGS or any SUBSIDIARY have determined are not economical to collect, and 

(vii) other dispositions, provided, that such dispositions do not exceed in the aggregate in any fiscal year
ten percent (10%) of the book value of all assets. 
 (b) HOLDINGS further agrees that it shall not permit its
SUBSIDIARIES to authorize or issue additional shares of their capital stock or similar equity interest except (i) shares or similar equity interests issued to HOLDINGS or a wholly-owned SUBSIDIARY of HOLDINGS, (ii) shares of capital stock
or equity interests issued by (1) any non-wholly owned SUBSIDIARY to its holders of capital stock or equity interests on a proportionate basis and (2) a newly created SUBSIDIARY to another PERSON in connection with any joint venture,
provided that such newly created SUBSIDIARY’s business and activities shall be limited to the conduct of such joint venture, (iii) for directors’ qualifying shares and similar issuances pursuant to local law requirements, and
(iv) shares of capital stock or equity interests issued by North American Site Developers, Inc. to Persons other than HOLDINGS or a wholly-owned SUBSIDIARY of HOLDINGS, provided , that the aggregate amount of such shares of capital stock
or equity interests issued to such Persons shall not exceed twenty-five percent (25%) of the aggregate number of shares of capital stock or equity interests issued by North American Site Developers, Inc. 

SECTION 6.14 MERGERS. HOLDINGS will not, and will not permit its SUBSIDIARIES to, merge or consolidate with or into
or purchase or otherwise acquire all or substantially all of the assets of, or stock or other equity interest in, any PERSON unless (a) after giving effect to such transaction HOLDINGS shall be in compliance with the provisions of
Section 6.19 , and 6.20 and (b) if such transaction involves an INDEMNITOR, the surviving entity shall have executed and delivered to TRAVELERS a SUPPLEMENTAL SIGNATURE PAGE; provided , that (x) any wholly-owned
SUBSIDIARY which is an INDEMNITOR may merge or consolidate into HOLDINGS or into or with any other wholly-owned SUBSIDIARY which is an INDEMNITOR, (y) any wholly-owned SUBSIDIARY which is not an INDEMNITOR may merge or consolidate into HOLDINGS
or into or with any other wholly-owned SUBSIDIARY, provided , that in the event an INDEMNITOR is a party to such merger or consolidation, an INDEMNITOR must survive the transaction and (z) any wholly-owned SUBSIDIARY may sell, transfer,
convey, lease or assign its assets or a substantial part thereof to HOLDINGS or any other wholly-owned SUBSIDIARY, provided , that in the case of a sale, transfer, conveyance, lease or assignment by such a SUBSIDIARY which is an INDEMNITOR,
the other party to such transaction must also be an INDEMNITOR. Notwithstanding the foregoing, HOLDINGS and its SUBSIDIARIES may consummate the transactions contemplated by the MERGER AGREEMENT. 

SECTION 6.15 INVESTMENTS. HOLDINGS will not, and will not permit its SUBSIDIARIES to, make or suffer to exist any
investment in any PERSON whether in the form of equity, DEBT or CONTINGENT LIABILITY, except: 
  

	 	(a)	Cash Equivalent Investments; 

  

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	 	(b)	investments permitted as DEBT or CONTINGENT LIABILITIES under Section 6.12 and investments permitted under Section 6.14 ;

  

	 	(c)	investments existing on the effective date of this Agreement and disclosed in Schedule 6.15; 

 

	 	(d)	accounts receivable arising from, and credit extended in connection with, the sale of goods or rendering of services in the ordinary course of business and promissory
notes or other instruments evidencing such credit or partial satisfaction thereof; 

  

	 	(e)	investments, DEBT and CONTINGENT LIABILITIES in HOLDINGS or its SUBSIDIARIES; provided , that the aggregate amount of investments in LIMITED SUBSIDIARIES, when
added to the other RESTRICTED AMOUNTS then outstanding, shall not exceed at any time $30,000,000; 

  

	 	(f)	loans or advances to employees of HOLDINGS and its SUBSIDIARIES made in the ordinary course of business consistent with past business practices;

  

	 	(g)	investments made in the ordinary course of business in connection with its capacity as a co-joint venturer in a joint venture, corporation or similar pooling of efforts
in respect of a specific project or series of projects for a limited or fixed duration to conduct a business of a type in which a PRINCIPAL is presently engaged consistent with past practices; 

 

	 	(h)	investments in Amboy Aggregates, a New Jersey joint venture, existing on the date hereof and disclosed on Schedule 6.15 and additional investments therein
made after the date hereof; provided , that the amount of such additional investments (excluding increases solely as a result of increases in the retained earnings of Amboy Aggregates) shall not exceed at any time $10,000,000;

  

	 	(i)	investments made in connection with the receipt by HOLDINGS or any of its SUBSIDIARIES of consideration other than cash for the sale by HOLDINGS or such SUBSIDIARY of
any assets permitted to be sold under Section 6.13 ; 

  

	 	(j)	investments received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes with customers and suppliers, in each
case in the ordinary course of business; 

  

	 	(k)	investments constituting loans to employees of HOLDINGS and its SUBSIDIARIES to purchase capital stock of HOLDINGS; and 

 

	 	(l)	other investments in an aggregate amount at any one time not to exceed $15,000,000. 

For purposes of this Section 6.15, “Cash Equivalent Investments” means, at any item: 

 

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	 	(a)	any obligation, maturing not more than one year after such time, issued or guaranteed by the United States government or issued by an agency thereof and backed by the
full faith and credit of the United States of America; 

  

	 	(b)	marketable general obligations, maturing not more than six months after such time, issued by any state of the United States of America or any political subdivision of
any such state or any public instrumentality thereof and rated A-2 or higher by Standard & Poor’s Rating Group, a division of McGraw Hill, Inc., or P-2 or higher by Moody’s Investors Service, Inc.; 

 

	 	(c)	commercial paper, maturing not more than nine months from the date of issue, which is issued by (i) a corporation organized under the laws of any state of the
United States or of the District of Columbia and rated A-2 or higher by Standard & Poor’s Rating Group, a division of McGraw Hill, Inc., or P-2 or higher by Moody’s Investors Service, Inc., or (ii) any lender under the BANK
LOAN FACILITY (or its holding company); 

  

	 	(d)	any certificate of deposit, time (including eurodollar time deposits) or demand deposit or bankers acceptance, maturing not more than one year after such time, which is
issued by either (i) a commercial banking institution organized under the laws of the United States of America or any State thereof or the District of Columbia that has a combined capital, surplus and undivided profits of not less than
$500,000,000, (ii) any lender under the BANK LOAN FACILITY, or (iii) any branch of any lender under the BANK LOAN FACILITY or any commercial banking institution organized under the laws of the United Kingdom, Canada or Japan having
combined capital, surplus and undivided profits of not less than $500,000,000; 

  

	 	(e)	fully collateralized repurchase agreements with a term of not more than 30 days for underlying securities of the type described in clauses (a) and
(b) above, entered into with any institution meeting the qualifications specified in clause (d) above; 

  

	 	(f)	participations in loans made to a borrower with a debt rating of A-2 or higher from Standard & Poor’s Rating Group, a division of McGraw Hill, Inc., or
P-2 or higher from Moody’s Investor Service, Inc.; provided , that such loans must mature within six months from the date such participation is purchased; 

 

	 	(g)	short-term asset management accounts for the purpose of investing in notes issued by a corporation organized under the laws of any state of the United States or of the
District of Columbia and rated A-2 or higher by Standard & Poor’s Rating Group, a division of McGraw Hill, Inc., or P-2 or higher by Moody’s Investors Service, Inc.; 

 

	 	(h)	 bonds issued by a municipality or governmental agency and rated not lower than BBB by Standard & Poor’s Rating Group, a division of
McGraw Hill, Inc., or Baa2 by Moody’s Investors Service, Inc. and purchased by HOLDINGS or any of 

 

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its SUBSIDIARIES in the ordinary course of its business in connection with retainage under contracts with its customers; 

 

	 	(i)	United States dollars or money in other currencies received in the ordinary course of business; 

 

	 	(j)	money market funds at least 95% of the assets of which constitute Cash Equivalent Investments of the kinds described in clauses (a) through
(e) , (i) and (j) of this definition; 

  

	 	(k)	securities with maturities of one year or less from the date of acquisition issued or fully and unconditionally guaranteed by any state, commonwealth or territory of
the United States of America or the federal government of Canada, or by any political subdivision or taxing authority thereof, and having one of the two highest ratings obtainable from Standard & Poor’s Rating Group, a division of
McGraw Hill, Inc., or Moody’s Investors Service, Inc.; or 

  

	 	(l)	in the case of any SUBSIDIARY of HOLDINGS that is not domiciled in the United States, investments comparable to the foregoing that have been approved by the
Administrative Agent under the BANK LOAN FACILITY. 

 SECTION 6.16 DIVIDEND
RESTRICTIONS. HOLDINGS will not pay any dividend or make any other distribution to any PERSON, except: 
  

	 	(a)	dividends or distributions payable in common stock or warrants to purchase common stock or splitups or reclassification of its stock into additional or other shares of
its common stock; and 

  

	 	(b)	cash dividends or other distributions payable by HOLDINGS not to exceed in aggregate during the term of this Agreement the sum of (i) $5,000,000 plus
(ii) fifty percent (50%) of the sum of the positive NET INCOME (if any) for the fiscal quarter of HOLDINGS ending on or about December 31, 1998 plus (iii) fifty percent (50%) of the sum of positive NET INCOME (if any)
for each fiscal year of HOLDINGS ending on or after December 31, 1999; provided , that both before and after giving effect to such dividends or distributions HOLDINGS shall be in compliance with the provisions of Section 6.19
and 6.20 . 

 Notwithstanding the foregoing, HOLDINGS may consummate the transactions contemplated by the
MERGER AGREEMENT. 
 SECTION 6.17 RESTRICTIONS UPON CONTRACTS WITH AFFILIATES. Other than amongst
themselves, HOLDINGS and its SUBSIDIARIES will not without the prior written consent of TRAVELERS enter into contracts, equipment leases or other agreements with any AFFILIATE except on an arms’ length basis or except (a) pursuant to
written agreements with third-party PERSONS from which HOLDINGS and its SUBSIDIARIES have been or are being benefited, including but not limited to pension plans and other joint employee benefit programs, insurance programs and other similar joint
programs or services, (b) the payment by HOLDINGS and its SUBSIDIARIES to Madison Dearborn Partners IV, L.P., or any of its AFFILIATES of 
  

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out of pocket costs and expenses owed to PERSONS who are not AFFILIATES, (c) transactions contemplated by the MERGER AGREEMENT, (d) any tax sharing agreement entered into by HOLDINGS or
any of its SUBSIDIARIES from time to time, (e) any customary management agreement entered into by HOLDINGS or its SUBSIDIARIES with Madison Dearborn Partners IV, L.P. or any of its AFFILIATES from time to time and (f) the transactions
described on Schedule 6.17 . 
 SECTION 6.18 NATURE OF BUSINESS. HOLDINGS and its SUBSIDIARIES
shall not engage in any business activities or operations substantially different from or unrelated to its present business activities and operations; provided , that HOLDINGS and its SUBSIDIARIES may engage in activities that are reasonably
related, complimentary or ancillary to its business activities or operations, including, without limitation, the provision of commercial and industrial demolition services. 

SECTION 6.19 NET WORTH. HOLDINGS and its consolidated SUBSIDIARIES shall not permit NET WORTH as of the last day of
any fiscal quarter of HOLDINGS ending after the date hereof, to be less than the sum of (i) $90,000,000 plus (ii) fifty percent (50%) of the sum of the positive NET INCOME (if any) for the fiscal quarter of HOLDINGS ending on or about
December 31, 2003, plus (iii) fifty percent (50%) of the sum of the positive NET INCOME (if any) for each fiscal year of HOLDINGS ending on or after December 31, 2004 and prior to the date of determination hereunder.

 SECTION 6.20 NET CURRENT ASSETS. HOLDINGS will not permit the ratio of its consolidated current assets
to its consolidated current liabilities as of the last day of each fiscal quarter of HOLDINGS to be less than 1.2 to 1 and will not permit its net current assets as of the last day of each fiscal quarter of HOLDINGS to be less than $17,000,000;
provided , that in the event HOLDINGS fails to maintain either of these levels it shall immediately notify TRAVELERS and shall have thirty (30) days in which to restore its position. In the determination of current assets, pipe
inventory shall be classified as a current asset; and provided further , that for purposes of calculating consolidated current liabilities, current maturities of DEBT will be excluded from the calculation thereof to the extent HOLDINGS or any
of its SUBSIDIARIES is able to repay such current maturities through the incurrence of other non-current DEBT (including, without limitation, through borrowings under the BANK LOAN FACILITY). 

SECTION 6.21 SUBORDINATED DEBT AND PAYMENT BLOCKAGE NOTICE. 

(a) HOLDINGS shall not, and shall not suffer or permit any of its SUBSIDIARIES to, (i) make any payment (other than any payment
utilizing proceeds from the issuance of any equity securities by HOLDINGS or any parent entity) of interest on any SUBORDINATED DEBT on any day other than the stated, scheduled date (subject to any applicable grace period) for such payment set forth
in the document or agreement evidencing or governing such SUBORDINATED DEBT, (ii) make any voluntary or mandatory prepayment (other than any payment utilizing proceeds from the issuance of any equity securities by HOLDINGS or any parent entity)
of principal of, or redeem, purchase or defease, any SUBORDINATED DEBT, or (iii) consent to any amendment, supplement or other modification of any of the terms or provisions contained in, or applicable to, any document or agreement evidencing
or governing 
  

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SUBORDINATED DEBT, except to the extent that such amendment, supplement or other modification would extend the date or reduce the amount of any required repayment or redemption or would amend,
supplement or modify any term or provision in a manner not adverse to the rights or interests of TRAVELERS. Notwithstanding the foregoing, (i) TRAVELERS hereby consents to HOLDINGS making a voluntary prepayment of, redeeming or
repurchasing all of the principal and accrued and unpaid interest, together with any premium and fees in connection with such prepayment, redemption or repurchase, on the senior subordinated notes issued pursuant to the 1998 DEBT INDENTURE (as
defined in the EXISTING AGREEMENT) and (ii) HOLDINGS and its SUBSIDIARIES shall be permitted to refinance the SUBORDINATED DEBT from time to time pursuant to a note indenture or other agreement containing covenants, events of default and other
terms not materially more restrictive than those set forth in the DEBT INDENTURE. 
 (b) HOLDINGS shall promptly give
notice in writing to TRAVELERS of the receipt by the Trustee under the DEBT INDENTURE of any PAYMENT BLOCKAGE NOTICE. 

SECTION 6.22 CHANGE OF LOCATION OR NAME. None of the INDEMNITORS shall change (i) the location of its
principal place of business or chief executive office, or (ii) its name or the name under which it conducts business or its jurisdiction of organization, in each case without giving TRAVELERS written notice thereof promptly upon the
effectiveness of such change (and in any event no later than 30 days after the effectiveness of such change) and taking all actions reasonably requested by TRAVELERS to maintain and preserve all LIENS in favor of TRAVELERS granted pursuant to the
UNDERWRITING DOCUMENTS. 
 ARTICLE VII 

RIGHTS OF TRAVELERS 

SECTION 7.1 FURTHER ASSURANCES/TRAVELERS AS ATTORNEY-IN-FACT. PRINCIPALS agree to sign, execute, file and/or
deliver to TRAVELERS all documents, reports, papers, pleadings and/or instruments reasonably requested by TRAVELERS to obtain, and/or perfect any of TRAVELERS’s rights under this Agreement. The INDEMNITORS irrevocably nominate and appoint
TRAVELERS or any other PERSON(s) designated by TRAVELERS, effective upon the occurrence and during the continuance of an EVENT OF DEFAULT, true and lawful attorney-in-fact of the INDEMNITORS, with full right and authority, upon the occurrence and
during the continuance of an EVENT OF DEFAULT to execute on behalf of, and sign the names of each INDEMNITOR to any voucher, release, satisfaction, check, application for payment, bill of sale of any or all property assigned by this Agreement or any
other UNDERWRITING DOCUMENT to TRAVELERS or any other paper or contract necessary or desired to carry into effect the purposes of this Agreement or any other UNDERWRITING DOCUMENT, with full right and authority, to satisfy the performance of the
CONTRACT(s); and each INDEMNITOR ratifies and confirms all that such attorney-in-fact or TRAVELERS may lawfully do in the premises and further authorizes and empowers TRAVELERS and such attorney-in-fact and each of them to enter upon and take
possession of the tools, plant, equipment, materials and subcontracts and all other collateral security mentioned in this Agreement and enforce, use, employ and dispose thereof for the purposes set forth in this

  

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Agreement, INDEMNITORS recognize that the appointment of such attorney-in-fact constitutes a power coupled with an interest. 

SECTION 7.2 CONTRACT FUNDS HELD IN TRUST. INDEMNITORS and PRINCIPALS agree and expressly declare that upon the
occurrence and during the continuance of an EVENT OF DEFAULT all funds due or to become due under the CONTRACT(s) will immediately become trust funds, whether in possession of INDEMNITORS, PRINCIPALS or another, for the benefit and the payment of
all PERSONS to whom a PRINCIPAL incurs obligations in the performance of the CONTRACT(s), for which TRAVELERS would be liable under the BOND(s). If TRAVELERS discharges any such obligations, with or without a claim asserted against TRAVELERS
under the BOND(s), it shall be entitled to assert the right of such PERSON to the trust fund. 
 SECTION 7.3 RIGHT
OF TRAVELERS TO SETTLE CLAIMS. TRAVELERS shall have the exclusive right for itself and for INDEMNITORS and PRINCIPALS to decide and determine whether any claim, demand, suit or judgment on the BOND(s) shall be paid, settled, defended or
appealed. Any payment or determination made by TRAVELERS under a good faith belief that either TRAVELERS was or might be liable therefor or such payments were necessary or advisable to protect any of TRAVELERS’s rights or to avoid or
lessen TRAVELERS’s liability or alleged liability, shall be final, conclusive and binding upon INDEMNITORS and the PRINCIPALS; and any LOSS which may be sustained or incurred shall be paid by the respective PRINCIPAL or by INDEMNITORS within
fifteen (15) days of receipt of written demand by TRAVELERS. In the event of any payment, settlement, compromise, or investigation, an itemized statement of LOSS sworn to by an officer or authorized representative of TRAVELERS or
voucher(s) or other evidence of such LOSS shall be prima facie evidence of the fact and extent of the liability of INDEMNITORS and the PRINCIPALS to TRAVELERS in any claim or suit and in any and all matters arising between INDEMNITORS, the
PRINCIPALS and TRAVELERS. 
 SECTION 7.4 AUTHORITY OF TRAVELERS TO MAKE LOANS TO PRINCIPAL. In addition to
the other remedies provided herein, TRAVELERS is authorized and empowered, but is not obligated, to advance or loan money or guarantee loans to any PRINCIPAL as TRAVELERS may see fit for the purpose of any of the CONTRACT(s), or for the purpose of
meeting operational expenses or paying other obligations, bonded or unbonded. Such funds may be advanced or guaranteed at anytime, whether before or after default of such PRINCIPAL under the CONTRACT(s). Upon demand by TRAVELERS, each
INDEMNITOR shall be responsible to reimburse TRAVELERS for all funds so loaned, advanced, or guaranteed and all LOSS incurred by TRAVELERS in relation thereto, notwithstanding the failure of any PRINCIPAL to so use those funds. INDEMNITORS
waive all notice of such advance, loan, or guarantee. 
 SECTION 7.5 AUTHORITY OF TRAVELERS TO AMEND
BOND. TRAVELERS shall have the right, and is hereby authorized and empowered, but not required: (a) upon the request of any INDEMNITOR to increase or decrease the penalty or penalties of any BOND(s), to change the OBLIGEE(s) therein,
to execute any continuation, enlargements, modifications and renewals thereof or substitute therefor with the same or different conditions, provisions or OBLIGEE(s), and with the same, larger or smaller penalties, it being agreed that this
instrument shall apply to and cover such new or changed BOND(s) or renewals even though the consent of 
  

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TRAVELERS may or does substantially increase the liability of the INDEMNITORS and the PRINCIPALS; or (b) to take such steps as it may deem necessary or proper to obtain release from
liability under the BOND(s); or (c) to assent to any changes in any CONTRACT, including but not limited to, any change in the time for completion of any CONTRACT and to payments or advances thereunder. 

SECTION 7.6 RIGHTS OF TRAVELERS TO TAKE POSSESSION OF THE WORK. Upon the occurrence and during the continuance of
an EVENT OF DEFAULT (for the avoidance of doubt, after giving effect to all applicable grace periods contained in the definition of EVENT OF DEFAULT), in addition to other remedies provided herein, TRAVELERS is authorized and empowered, but is not
obligated, to take possession of the work under any CONTRACT(s) and at the expense of the respective PRINCIPAL and of INDEMNITORS to complete or to contract for the completion of the same, or to consent to the reletting of the completion thereof by
OBLIGEE, or to take such other steps as in the discretion of TRAVELERS may be advisable or necessary to obtain its release or to avoid LOSS. 

SECTION 7.7 DEPOSITORY TRUST ACCOUNTS. Upon the occurrence and during the continuance of an EVENT OF DEFAULT (for
the avoidance of doubt, after giving effect to all applicable grace periods contained in the definition of EVENT OF DEFAULT), PRINCIPALS shall, upon demand of TRAVELERS, open an account(s) with a bank or similar depository designated by PRINCIPALS
and approved by TRAVELERS, which account(s) shall be designated as trust account(s) for the deposit of such trust funds, and shall deposit therein all monies paid or to be paid under the CONTRACT(s). Withdrawals from such account(s) shall be by
check or similar instruments signed by a representative of TRAVELERS and, at TRAVELERS’s option, countersigned by a PRINCIPAL. Said trust(s) shall terminate on the payment by INDEMNITORS and PRINCIPALS of all the contractual obligations
for the payment of which the trust(s) are created or upon the expiration of seven (7) years from the date thereof, whichever shall first occur. 

SECTION 7.8 PRESERVATION OF TRAVELERS’S RIGHTS. TRAVELERS shall have every right and remedy which a personal
surety without compensation would have, including the right to secure its discharge from the suretyship, and nothing in this Agreement shall waive, abridge or diminish any right which TRAVELERS might have if this Agreement were not executed.

 SECTION 7.9 AUTHORITY OF TRAVELERS TO ELECT REMEDIES. Each right, remedy and power of TRAVELERS
provided in this Agreement or by law, equity, or statute shall be cumulative, and the exercise by TRAVELERS of any right, remedy or power shall not preclude TRAVELERS’s simultaneous or subsequent exercise of any or all other rights, powers or
remedies. The failure or delay by TRAVELERS to exercise any right, power or remedy shall not waive any right, power or remedy. No notice or demand upon TRAVELERS by any INDEMNITOR or any PRINCIPAL shall limit or impair TRAVELERS’s
right to take any action under this Agreement or to exercise any right, power or remedy, subject to the provisions of Section 3.5 herein. 
  

 33 
  

 

 ARTICLE VIII 

MISCELLANEOUS 

SECTION 8.1 BENEFICIAL PARTIES. This Agreement shall, in all its terms and agreements, be for the benefit of and
protect any PERSON joining with TRAVELERS in executing any BOND or BONDS or executing at the request of TRAVELERS said BOND or BONDS as well as any PERSON assuming co-suretyship or reinsurance thereupon. 

SECTION 8.2 JOINT AND SEVERAL. The agreements and covenants herein contained shall be binding upon the undersigned,
both jointly and severally, upon their successors and assigns jointly and severally, provided , that the PRINCIPALS and the INDEMNITORS may not assign their rights hereunder without the prior written consent of TRAVELERS. 

SECTION 8.3 ATTORNEYS FEES. The INDEMNITORS agree hereby to pay the reasonable attorneys fees and expenses incurred
by TRAVELERS in the preparation and enforcement of this Agreement and the other UNDERWRITING DOCUMENTS. 

SECTION 8.4 APPLICABLE LAW. The terms and conditions of this Agreement shall be construed under the laws of New
York without regard to its conflicts of laws principles (other than the provisions of 5-1401 and 5-1402 of the New York General Obligations Law). 

SECTION 8.5 JURISDICTION FOR SUITS UNDER THIS AGREEMENT. Separate suits may be brought hereunder as causes of
action may accrue, and the pendency or termination of any such suit shall not bar any action, whether previously or subsequently arising. PRINCIPALS and INDEMNITORS consent to the jurisdiction of the state and federal court located in Hartford,
CT to bring any action against them under this Agreement or the BOND(s). Each PRINCIPAL and each INDEMNITOR are the agents for all PRINCIPALS and all INDEMNITORS for the purpose of accepting service of process. 

SECTION 8.6 INDEMNITORS WAIVE DEFENSE OF SUBSEQUENT EXECUTION. INDEMNITORS waive any defense that this Agreement
was executed subsequent to any BOND, admitting that such BOND was executed pursuant to each INDEMNITOR’s request and in reliance upon INDEMNITORS’ promise to execute this Agreement. 

SECTION 8.7 VALIDITY OF AGREEMENT. Failure to execute, or defective execution, by any party shall not affect the
validity of this Agreement as to any other party executing the same, and each other party shall remain fully bound and liable hereunder. Invalidity of any portion or provision of this Agreement by reason of the laws of any state or for any
other reason shall not render the other provisions or portions invalid. Executions of any application or submission for any BOND by any PRINCIPAL, or of any other indemnity agreement by any INDEMNITOR for the PRINCIPALS shall not abrogate,
waive or diminish any rights of TRAVELERS under this Agreement. This Agreement may be executed simultaneously in one or more counterparts, each of which shall be an original, but all of which together shall constitute one and the same
instrument. 
  

 34 
  

 

 SECTION 8.8 ORAL MODIFICATIONS INEFFECTIVE. This Agreement may not be
changed or modified orally. No change or modification to this Agreement shall be effective unless specifically agreed to in writing and executed by TRAVELERS and HOLDINGS. 

SECTION 8.9 NOTICES. It is mutually agreed that any and all notices or demands herein provided for must be given in
writing and shall be deemed given if and when delivered in person or duly deposited in the United States mails, postage prepaid for regular or certified mail, properly addressed to the party to whom given at the address of such party shown in this
Agreement; provided , that any party may specify any other post office address in the United States by giving at least ten (10) days written notice thereof to the other party. 

Notice to TRAVELERS shall be sent to: 

Travelers Casualty and Insurance Company of America 

One Tower Square, 5PB 

Hartford, CT 06183 

Attention: Chief Underwriting Officer - National Account Unit 

with a copy to: 

Travelers Casualty and Surety Company 

215 Shuman Boulevard 
 Naperville, IL 60563-8458

 Attention: Construction Services - Bond 

Notice to any PRINCIPAL or to any INDEMNITOR shall be sent to: 

Great Lakes Dredge & Dock Corporation 

2122 York Road 
 Oak Brook, IL 60523 

Attention:             Deborah A. Wensel 

            Chief Financial Officer 

With a copy to: 

Winston & Strawn LLP 

35 W. Wacker Drive 
 Chicago, Illinois 60601

 Attention: Brian S. Hart, Esq. 

SECTION 8.10 REAFFIRMATION AND RESTATEMENT. This Agreement constitutes an amendment and restatement of the EXISTING
AGREEMENT and the DEBT evidenced by the EXISTING AGREEMENT is continuing DEBT. Nothing herein shall be 
  

 35 
  

 

 
deemed to constitute a payment, settlement or novation of the DEBT evidenced by the EXISTING AGREEMENT, or to release or otherwise adversely affect any LIEN securing such DEBT or any rights
TRAVELERS has against any guarantor, surety or other party primarily or secondarily liable for such DEBT. 

SECTION 8.11 CONFIDENTIALITY. TRAVELERS agrees that they will maintain the confidentiality of any written or oral
information provided to TRAVELERS by or on behalf of HOLDINGS or any of its SUBSIDIARIES (hereinafter collectively called “Confidential Information”), subject to TRAVELERS’s (a) obligation to disclose any such Confidential
Information pursuant to a request or order under applicable laws and regulations or pursuant to a subpoena or other legal process, (b) right to disclose any such Confidential Information to its examiners, auditors, counsel and other
professional advisors, (c) right to disclose any such Confidential Information in connection with any litigation or dispute involving TRAVELERS and HOLDINGS or any of its SUBSIDIARIES, (d) right to provide such information to other Persons
for the purpose of procuring co-suretyship or reinsurance if such Person agrees in writing to maintain the confidentiality of such information on terms substantially similar to those of this Section as if it were a party
hereto. Notwithstanding the foregoing, any such information supplied to TRAVELERS or another Person under this Agreement shall cease to be Confidential Information if it is or becomes known to such Person by other than unauthorized disclosure,
or if it becomes a matter of public knowledge. 
 SECTION 8.12 RELEASE OF LIENS. TRAVELERS agrees to
release the LIENS under the SECURITY AGREEMENTS, the VESSEL MORTGAGES, and any other UNDERWRITING DOCUMENTS, and to execute and deliver such documents and instruments requested by any PRINCIPAL to effect such release; 

 

	 	(a)	on any property or assets in which the agent under the BANK LOAN FACILITY has a first priority LIEN and if such first priority LIEN is released by the agent under the
BANK LOAN FACILITY; 

  

	 	(b)	on any property or assets for which substitute collateral is provided with an appraisal value at least equal to the value of the property or assets released;

  

	 	(c)	on all collateral upon termination of this Agreement and payment in full of all obligations under this Agreement; and 

 

	 	(d)	on any property or assets upon the sale, transfer or other disposition of such property or assets which is otherwise permitted under this Agreement, up to an aggregate
fair market value, as determined in good faith by the applicable PRINCIPAL selling such property or assets, not to exceed $5,000,000 during the term of this Agreement; provided , that TRAVELERS is given prior written notice of the fair market
value of such transaction. 

 SECTION 8.13 SUCCESSORS AND ASSIGNS. This Agreement shall be
binding upon and inure to the benefit of the INDEMNITORS and TRAVELERS and their respective successors and assigns (including successors by way of merger, acquisition or similar event). 

 

 36 
  

 

 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

		 	Name:    	 	Deborah A. Wensel
		 	Title:	 	Senior Vice President, Chief Financial
		 		 	Officer and Treasurer
	
	GREAT LAKES DREDGE & DOCK COMPANY
		
	By:	 	 /s/ Deborah A. Wensel

		 	Name:	 	Deborah A. Wensel
		 	Title:	 	Senior Vice President, Chief Financial
		 		 	Officer and Treasurer
	
	 LYDON DREDGING & CONSTRUCTION

COMPANY, LTD.

		
	By:	 	 /s/ Deborah A. Wensel

		 	Name:	 	Deborah A. Wensel
		 	Title:	 	Vice President
	
	FIFTY-THREE DREDGING CORPORATION
		
	By:	 	 /s/ Deborah A. Wensel

		 	Name:	 	Deborah A. Wensel
		 	Title:	 	Vice President
	
	DAWSON MARINE SERVICES COMPANY
		
	By:	 	 /s/ Deborah A. Wensel

		 	Name:	 	Deborah A. Wensel
		 	Title:	 	Senior Vice President, Chief Financial
		 		 	Officer and Treasurer

  

  
  

					
	GREAT LAKES CARIBBEAN DREDGING, INC.
		
	By:    	 	 /s/ Deborah A. Wensel

		 	Name:    	 	Deborah A. Wensel
		 	Title:	 	Senior Vice President, Chief Financial
		 		 	Officer and Treasurer
	
	NORTH AMERICAN SITE DEVELOPERS, INC.
		
	By:	 	 /s/ Deborah A. Wensel

		 	Name:	 	Deborah A. Wensel
		 	Title:	 	Vice President and Treasurer

					
	 TRAVELERS CASUALTY AND SURETY

COMPANY

		
	By:	 	 /s/ Michael Damewood

		 	Name:    	 	Michael Damewood
		 	Title:	 	Attorney-in-Fact
	
	 TRAVELERS CASUALTY AND SURETY

COMPANY

		
	By:	 	 /s/ Michael Damewood

		 	Name:	 	Michael Damewood
		 	Title:	 	Attorney-in-Fact

 EXHIBIT A 

SUPPLEMENTAL SIGNATURE PAGE 

             20     

 

	Re:	Great Lakes Dredge & Dock Corporation, et al 

Ladies and Gentlemen: 

Reference is made to that certain Third Amended and Restated Underwriting and Continuing Indemnity Agreement (as amended, modified or
supplemented from time to time, the “Agreement”), dated December             , 2003, among Great Lakes Dredge & Dock Corporation, certain of its
subsidiaries, Travelers Casualty and Surety Company (as assignee of Reliance Insurance Company, United Pacific Insurance Company, Reliance National Insurance Company and Reliance Surety Company) (“Travelers”) and Travelers Casualty
and Surety Company of America (“TCSCA” and, together with Travelers, collectively, the “Sureties”). Capitalized terms used and not otherwise defined herein have the meanings assigned to them in the Agreement.

 By executing and delivering this Supplemental Signature Page, the undersigned hereby becomes a party to the Agreement as an
Indemnitor thereunder with the same force and effect as if originally named as an Indemnitor therein and expressly assumes all obligations and liabilities of an Indemnitor thereunder. 

The undersigned hereby represents and warrants that each of the representations and warranties contained in Article V of the
Agreement applicable to it is true and correct on and as of the date hereof as if made on and as of such date. 
 IN WITNESS
WHEREOF, the undersigned has caused this Supplemental Signature Page to be duly executed and delivered as of the date first above written. 
  

			
	[NAME OF INDEMNITOR]
		
	By:	 	  

			
	Name:	 	  

			
	Title:	 	  

			
	Address:        	 	  

		 	  

		 	  

 EXHIBIT B 

FORM OF 

FOURTH AMENDED AND RESTATED NOTE PLEDGE AGREEMENT 

This FOURTH AMENDED AND RESTATED NOTE PLEDGE AGREEMENT (this “Agreement”) is made and entered into as of
December 22, 2003 by GREAT LAKES DREDGE & DOCK CORPORATION, a Delaware corporation, (“Great Lakes”), and each other entity a signatory hereto or which becomes a party hereto pursuant to Section 25
(collectively with Great Lakes, the “Grantors” and each, individually, a “Grantor”), in favor of TRAVELERS CASUALTY AND SURETY COMPANY, a Connecticut corporation (as assignee of 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) (“TCASC”) and TRAVELERS
CASUALTY AND SURETY COMPANY OF AMERICA, a Connecticut corporation (“Travelers America” and together with TCASC, the “Secured Party”). 

Preliminary Statement 

A. Concurrently herewith, the Grantors, certain of their affiliates and the Secured Party are entering into that certain Third Amended
and Restated Underwriting and Continuing Indemnity Agreement, dated as of even date herewith, which amends and restates that certain Second Amended and Restated Underwriting and Continuing Indemnity Agreement, dated as of August 19, 1998, as
amended, supplemented or otherwise modified from time to time (as it may be further amended, restated, supplemented or otherwise modified from time to time, the “Underwriting Agreement”). Capitalized terms used herein and not
otherwise defined herein shall have the meaning given in the Underwriting Agreement. 
 B. The Grantors have previously entered
into that certain Third Amended and Restated Note Pledge Agreement (the “Existing Agreement”), dated as of April 24, 2001, in favor of the Secured Party. 

C. The Grantors and the Secured Party desire to amend and restate the Existing Agreement on the terms and conditions set forth in this
Agreement. 
 NOW, THEREFORE, in consideration of the premises set forth herein and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 1. Defined Terms.
Unless otherwise defined herein, terms defined in the Underwriting Agreement are used herein as therein defined, and the following terms shall have the following meanings (such meanings being equally applicable to both the singular and the plural
forms of the terms defined): 
 “Collateral” shall mean all property and rights in property now owned or
hereafter at any time acquired by any Grantor with respect to which a Lien is granted in favor of the Secured Party by such Grantor under this Agreement pursuant to Section 2. 

 “Note” shall mean that certain Third Amended and Restated Master
Intercompany Demand Note dated as of the date hereof executed and delivered by the Grantors and certain of their other Affiliates, as the same may be amended, restated, extended, supplemented or otherwise modified. 

“UCC” shall mean the Uniform Commercial Code, as the same may, from time to time, be in effect in the State of New York;
provided, however, in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of the Secured Party’s security interest in any Collateral is governed by the Uniform Commercial
Code as in effect in a jurisdiction other than the State of New York, the term “UCC” shall mean the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of the provisions hereof relating to such
attachment, perfection or priority and for purposes of definitions related to such provisions. 
 2. Grant of Security.
To secure the prompt and complete payment, observance and performance of (a) each Grantor’s obligations and liabilities under the Underwriting Agreement and the other Underwriting Documents, including, without limitation, all
“Loss” under and as defined in the Underwriting Agreement and (b) each Grantor’s obligations and liabilities under this Agreement and other agreements, documents or instruments executed by such Grantor pursuant to or in
connection with such agreements (all such obligations and liabilities of the Grantors now or hereafter existing being hereinafter referred to as the “Liabilities”), each Grantor hereby reaffirms its assignment, pledge and grant
pursuant to the Existing Agreement, and each Grantor hereby presently assigns, grants and pledges, to the Secured Party, for the benefit of each Secured Party, a security interest in all of such Grantor’s right, title and interest in and to the
following, whether now owned or existing or hereafter arising or acquired and wheresoever located: the Note, all other amounts from time to time owing to such Grantor from any other Indemnitor (whether or not evidenced or governed by the Note), all
proceeds of any of the foregoing, and all books and records with respect thereto. 
 3. Grantors Remain Liable. Anything
herein to the contrary notwithstanding, (a) each Grantor shall remain liable under the Note to which it is a party to perform all of its duties and obligations thereunder to the same extent as if this Agreement had not been executed,
(b) the exercise by the Secured Party of any of its rights hereunder shall not release such Grantor from any of its duties or obligations under the Note to which it is a party or with respect to any other Collateral, and (c) the Secured
Party shall not have any responsibility, obligation or liability under any Note or other Collateral by reason of this Agreement, nor shall the Secured Party be required or obligated, in any manner, to (i) perform or fulfill any of the
obligations or duties of such Grantor thereunder, (ii) make any payment, or make any inquiry as to the nature or sufficiency of any payment received by such Grantor or the sufficiency of any performance by any party under any such contract or
agreement or (iii) present or file any claim, or take any action to collect or enforce any claim for payment assigned hereunder. 

4. Representations and Warranties. Each Grantor represents and warrants, as of the date of this Agreement and on the date of the
issuance of any Bond (unless such representation speaks only as of the date hereof and except as otherwise permitted by this Agreement or the Underwriting Agreement) until the termination of this Agreement pursuant to Section 15, that:

  

 2 

 (a) The correct legal corporate names of the Grantors are set forth on the signature pages
to this Agreement and the jurisdictions of organization of the Grantors are set forth on Schedule I. The chief place of business and chief executive office of the Grantors (other than North American Site Developers, Inc.
(“NASDI”)), is located at 2122 York Road, Oak Brook, Illinois 60523, and the chief place of business and chief executive office of NASDI is located at 218 Lincoln Street, Allston, Massachusetts 02134. All records included within or
otherwise concerning the Collateral (other than the Note itself) are located at such addresses. 
 (b) Each Grantor is the legal
and beneficial owner of its respective Collateral free and clear of all Liens, except for Liens permitted by the Underwriting Agreement (“Permitted Liens”). 

(c) Each Grantor conducts business under its legal corporate name and, within the five-year period preceding the date hereof, the
Grantors have not used any trade names or fictitious names, except as set forth on Schedule I. 
 (d) This Agreement
creates in favor of the Secured Party a legal, valid and enforceable security interest in all Collateral. When the Note is delivered to the Secured Party, endorsed as payable to the order of the Secured Party as contemplated on the face of such Note
and financing statements against each applicable Grantor have been properly presented for filing and the filing fee has been tendered or have been accepted by the filing officers in the Secretaries of State of Delaware, Illinois, Massachusetts and
New Jersey, as applicable, the Secured Party will have a fully perfected first priority lien on, and security interest in, the Collateral, subject only to Permitted Liens. 

(e) No authorization, approval or other action by, and no notice to or filing with, any governmental authority or regulatory body that
has not already been taken or made and which is in full force and effect, is required (i) for the grant by the Grantor of the security interest in the Collateral granted hereby; (ii) for the execution, delivery or performance of this
Agreement by the Grantors; or (iii) for the exercise by the Secured Party of any of its other rights or remedies hereunder, except those for which, if not obtained, could not reasonably be expected to have a Material Adverse Change. 

(f) Each Note has been duly authorized, executed, endorsed, issued and delivered, and evidences the legal, valid and binding obligation
of each “Borrower” under and as defined therein (except as such enforceability may be limited by applicable bankruptcy, reorganization, insolvency and other similar laws affecting creditors’ rights generally), and no default exists
under such Note by any such “Borrower”. 
 5. Perfection and Maintenance of Security Interest and Lien. It is
acknowledged by all the parties hereto that as of the date hereof, Bank of America, N.A. (the “Bank Agent”) is in possession of the Note pursuant to that certain Note Pledge Agreement of even date herewith among the Grantors and the
Bank Agent. At such time as the Bank Agent shall relinquish possession of the Note (the “Turn-Over Date”), the Grantors shall cause such Note to be delivered to the Secured Party and to be properly endorsed by each applicable
Grantor as payable to the order of the Secured Party. Each Grantor agrees that until such time as no Bonds shall remain outstanding and all of the Liabilities have been fully satisfied, this 

 

 3 

 
Agreement and the security interests and Liens created hereby shall continue in full force and effect. Each Grantor shall perform any and all steps reasonably requested by the Secured Party to
perfect, maintain and protect the Secured Party’s security interests in and Liens on and against the Collateral granted or purported to be granted hereby or to enable the Secured Party to exercise its rights and remedies hereunder with respect
to any Collateral, including, without limitation, executing and filing financing or continuation statements, or original financing statements in lieu of continuation statements, or amendments thereof, in form and substance reasonably satisfactory to
the Secured Party and executing and delivering all further instruments and documents, and taking all further action, as the Secured Party may reasonably request (provided, that prior to the Turn-Over Date, the Grantors shall not be required
to deliver to the Secured Party the original Note), including, without limitation, in order to preserve, protect and enforce the security interests in and Liens on and against the Collateral granted or purported to be granted hereby under the law of
any jurisdiction in the event for any reason that the law of such jurisdiction becomes or is applicable to the Collateral or any part thereof. 

6. Financing Statements. To the extent permitted by applicable law, each Grantor hereby authorizes the Secured Party to file
financing or continuation statements, original financing statements in lieu of continuation statements, and amendments thereto disclosing the security interest granted to the Secured Party under this Agreement without such Grantor’s signature
appearing thereon, and the Secured Party agrees to notify such Grantor when such a filing has been made. If any Collateral is in the possession or control of any third party, upon the Secured Party’s request, each Grantor shall notify such
Person of the Secured Party’s security interest in such Collateral and, upon the Secured Party’s request, instruct them to hold all such Collateral for the Secured Party’s account and subject to the Secured Party’s instructions
and to obtain an acknowledgement from such Person that such Person is holding such Collateral for the benefit of the Secured Party. 

7. Filing Costs. The Grantors shall pay the costs of, or incidental to, all recordings or filings of all financing statements,
including, without limitation, any filing expenses incurred by the Secured Party pursuant to Section 6. 
 8.
Secured Party Appointed Attorney-in-Fact. Each Grantor hereby irrevocably appoints the Secured Party as such Grantor’s attorney-in-fact, with full authority in the place and stead of such Grantor and in such Grantor’s name or
otherwise, from time to time in the Secured Party’s discretion, to take any action and to execute any instrument which the Secured Party may deem necessary or advisable to accomplish the purposes of this Agreement, including, without
limitation, following the occurrence and during the continuance of an Event of Default, to (a) ask, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become due under or in respect of
any of the Collateral, including, without limitation, to demand repayment of all amounts owing to one or more Grantors under the terms of the Note; (b) receive, endorse, and collect any drafts or other instruments, documents and chattel paper,
in connection with clause (a) above; and (c) file any claims or take any action or institute any proceedings that the Secured Party may deem necessary or desirable for the collection of any of the Collateral, or otherwise to enforce
the rights of the Secured Party with respect to any of the Collateral. 
  

 4 

 9. Secured Party’s Duties. The powers conferred on the Secured Party hereunder
are solely to protect its interest in the Collateral and shall not impose any duty upon it to exercise any such powers. Except for the safe custody of any Collateral in its possession and the accounting for moneys actually received by it hereunder,
the Secured Party shall not have any duty as to any Collateral. The Secured Party shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its possession if the Collateral is accorded treatment
substantially equal to that which the Secured Party accords its own property, it being understood that the Secured Party shall be under no obligation to take any necessary steps to preserve rights against prior parties or any other rights pertaining
to any Collateral, but may do so at its option, and all reasonable expenses incurred in connection therewith shall be for the sole account of the Grantors and shall be added to the Liabilities. 

10. Remedies. (a) If any Event of Default shall have occurred and be continuing: 

(i) The Secured Party shall have, in addition to other rights and remedies provided for herein or otherwise available to it, all the
rights and remedies of a secured party upon default under the UCC (whether or not the UCC applies to the affected Collateral) and further, the Secured Party may, without notice, demand or legal process of any kind (except as may be required by law),
all of which each Grantor waives, at any time or times, (x) enter any Grantor’s owned or leased premises and take physical possession of the Collateral and maintain such possession on such Grantor’s owned or leased premises, at no
cost to the Secured Party or remove the Collateral, or any part thereof, to such other place(s) as the Secured Party may desire, (y) require each Grantor to, and each Grantor hereby agrees that it will, at its expense and upon request of the
Secured Party, forthwith assemble all or any part of the Collateral as the Secured Party directs and make it available to the Secured Party at a place to be designated by the Secured Party that is reasonably convenient to the Secured Party and
(z) without notice except as specified below, sell, lease, assign, grant an option or options to purchase or otherwise dispose of the Collateral or any part thereof at public or private sale, at any exchange, broker’s board or at any of
the offices of the Secured Party or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Secured Party may deem commercially reasonable. Each Grantor agrees that, to the extent notice of sale shall be required by
law, at least ten (10) days’ notice to such Grantor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. The Secured Party shall not be obligated to make
any sale of Collateral regardless of notice of sale having been given. The Secured Party may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be
made at the time and place to which it was so adjourned; 
 (ii) The Secured Party shall apply all cash proceeds received by
the Secured Party in respect of any sale of, collection from, or other realization upon all or any part of the Collateral (after payment of all expenses incurred by the Secured Party in connection with such sale, collection or realization), against
all or any part of the Liabilities in such order as may be required by the Secured Party. Any surplus of such cash or cash proceeds held by the Secured Party and remaining after payment in full of all the Liabilities shall be paid over to the
appropriate Grantors or to whomsoever may be lawfully entitled to receive such surplus; 
  

 5 

 (b) Each Grantor waives all claims, damages and demands against the Secured Party arising
out of the repossession, retention or sale of any of the Collateral or any part or parts thereof, except any such claims, damages and awards arising out of the gross negligence or willful misconduct of the Secured Party as determined in a final
judgment of a court of competent jurisdiction; and 
 (c) The rights and remedies provided under this Agreement are cumulative
and may be exercised singly or concurrently and are not exclusive of any rights and remedies provided by law or equity. 
 11.
Exercise of Remedies. In connection with the exercise of its remedies pursuant to Section 10, the Secured Party may (i) exchange, enforce, waive or release any portion of the Collateral and any other security for the
Liabilities; (ii) apply such Collateral or security and direct the order or manner of sale thereof as the Secured Party may determine from time to time; and (iii) settle, compromise, collect or otherwise liquidate any such Collateral or
security in any manner following the occurrence of an Event of Default, without affecting or impairing the Secured Party’s right to take any other further action with respect to any Collateral or security or any part thereof. 

12. Injunctive Relief. Each Grantor recognizes that if such Grantor fails to perform, observe or discharge any of its obligations
or liabilities under this Agreement, any remedy of law may prove to be inadequate relief to the Secured Party; therefore, such Grantor agrees that the Secured Party, if the Secured Party so determines and requests, shall be entitled to temporary and
permanent injunctive relief in any such case without the necessity of proving actual damages. 
 13. Security Interest
Absolute. All rights of the Secured Party and security interests hereunder, and all obligations of the Grantors hereunder, shall be absolute and unconditional irrespective of: 

(i) Any lack of validity or enforceability of the Underwriting Agreement or any other agreement or instrument relating thereto;

 (ii) Any change in the time, manner or place of payment of, or in any other term of, all or any part of the Liabilities, or
any other amendment or waiver of or any consent to any departure from the Underwriting Agreement; 
 (iii) Any exchange,
release or non-perfection of any other collateral, or any release or amendment or waiver of or consent to departure from any guaranty, for all or any part of the Liabilities; or 

(iv) Any other circumstance which might otherwise constitute a defense available to, or a discharge of, any of the Grantors in respect
of the Liabilities or of this Agreement other than payment in full of the Liabilities (other than contingent and indemnification obligations for which no claim has been, or is reasonably expected to be, made). 

14. Waivers. Each Grantor waives presentment and demand for payment of any of the Liabilities, protest and notice of dishonor or
Event of Default with respect to any of 
  

 6 

 
the Liabilities and all other notices to which such Grantor might otherwise be entitled except as otherwise expressly provided herein or in the Underwriting Agreement. 

15. Term. This Agreement shall remain in full force and effect until such time as no Bonds shall remain outstanding, no
obligations remain outstanding under any Bond and the Liabilities (other than contingent and indemnification obligations for which no claim has been, or is reasonably expected to be, made) have been fully paid in cash. Upon the termination of this
Agreement as provided above (other than as a result of the sale of the Collateral), the Secured Party will release the security interest created hereunder. 

16. Definitions. The singular shall include the plural and vice versa and any gender shall include any other gender as the context
may require. 
 17. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of each
Grantor, and the Secured Party, and their respective successors and assigns (including successors by way of merger, acquisition or similar event). A Grantor’s successors and assigns shall include, without limitation, a receiver, trustee or
debtor-in-possession of or for such Grantor. 
 18. GOVERNING LAW. ANY DISPUTE BETWEEN THE SECURED PARTY AND THE GRANTORS
ARISING OUT OF OR RELATED TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS AGREEMENT, AND WHETHER ARISING IN CONTRACT, TORT, EQUITY, OR OTHERWISE, SHALL BE RESOLVED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REGARD TO ITS CONFLICTS OF LAW PRINCIPLES (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW). 

19. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and
valid under applicable law, but, if any provision of this Agreement shall be held to be prohibited or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Agreement. 
 20. Notices. All notices and other
communications required or desired to be served, given or delivered hereunder shall be made in accordance with the applicable provisions contained in the Underwriting Agreement. 

21. Amendments, Waivers and Consents. No amendment or waiver of any provision of this Agreement nor consent to any departure by
any Grantor herefrom, shall in any event be effective unless the same shall be in writing and signed by the Grantors and the Secured Party, and then such amendment, waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given. 
 22. Section Headings. The section headings herein are for convenience of reference
only, and shall not affect in any way the interpretation of any of the provisions hereof. 
  

 7 

 23. Execution in Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which shall together constitute one and the same agreement. 
 24.
Merger. This Agreement represents the final agreement of the Grantors with respect to the matters contained herein and may not be contradicted by evidence of prior or contemporaneous agreements, or subsequent oral agreements, among the
Grantors and the Secured Party. 
 25. Additional Grantors. If, pursuant to Section 6.14 of the Underwriting
Agreement or otherwise, Great Lakes shall be required to cause any Subsidiary that is not a Grantor to become a Grantor hereunder or if for any reason Great Lakes shall desire that any Subsidiary that is not a Grantor become a Grantor hereunder,
such Subsidiary shall execute and deliver to the Secured Party a joinder agreement (a “Joinder Agreement”) in substantially the form of Exhibit A attached hereto and shall thereafter for all purposes be a party hereto and
have all the same rights, benefits and obligations as any Grantor party hereto. 
 26. Amendment and Restatement.
Effective as of the date this Agreement is executed, (a) this Agreement shall amend and restate in its entirety the Existing Agreement, and (b) each reference to the Existing Agreement in any of the Underwriting Documents or any other
document, instrument or agreement delivered in connection therewith shall mean and be a reference to this Agreement. 
 27.
Reaffirmation and Restatement. This Agreement constitutes an amendment and restatement of the Existing Agreement and the Debt secured by the Existing Agreement is continuing Debt. Nothing herein shall be deemed to constitute a payment,
settlement or novation of the Debt secured by the Existing Agreement, or to release or otherwise adversely affect any Lien securing such Debt or any rights the Secured Party has against any guarantor, surety or other party primarily or secondarily
liable for such Debt. 
  

 8 

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

			
	GREAT LAKES DREDGE & DOCK CORPORATION
		
	By:	 	  

	 Name:
 Title:
	 	 Deborah A. Wensel
 Senior
Vice President, Chief Financial
 Officer and Treasurer

	
	GREAT LAKES DREDGE & DOCK COMPANY
		
	By:	 	  

	 Name:
 Title:
	 	 Deborah A. Wensel
 Senior
Vice President, Chief Financial
 Officer and Treasurer

	
	DAWSON MARINE SERVICES COMPANY
		
	By:	 	  

	 Name:
 Title:
	 	 Deborah A. Wensel
 Senior
Vice President, Chief Financial
 Officer and Treasurer

	
	FIFTY-THREE DREDGING CORPORATION
		
	By:	 	  

	 Name:
 Title:
	 	 Deborah A. Wensel
 Vice
President

 [SIGNATURE PAGE TO NOTE PLEDGE AGREEMENT] 

			
	GREAT LAKES CARIBBEAN DREDGING, INC.
		
	By:	 	  

	Name:	 	Deborah A. Wensel
	Title:	 	 Senior Vice President, Chief Financial

Officer and Treasurer

	
	NORTH AMERICAN SITE DEVELOPERS, INC.
		
	By:	 	  

	 Name:
 Title:
	 	 Deborah A. Wensel
 Vice
President and Treasurer

 [SIGNATURE PAGE TO NOTE PLEDGE AGREEMENT] 

			
	TRAVELERS CASUALTY AND SURETY COMPANY
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA
		
	By:	 	  

	Name:	 	  

	Title:	 	  

[SIGNATURE PAGE TO NOTE PLEDGE AGREEMENT] 

 NOTE PLEDGE AGREEMENT 

Schedule I 
  

	A.	The Grantors have not used any trade names or fictitious names within the five-year period preceding the date hereof. However, please note the following:

 Great Lakes: 
  

	 	1.	Effective on December 31, 1998, Great Lakes International, Inc., a Delaware corporation and a wholly-owned subsidiary of Great Lakes, was merged with and into
Great Lakes. 

 Great Lakes Dredge & Dock Company (“GLDD Company”): 

 

	 	1.	On December 31, 2001, Gates Construction Corp., a New Jersey corporation and a wholly-owned subsidiary of GLDD Company, was dissolved. 

 

	 	2.	Effective on December 31, 2002, North American Trailing Company, a Delaware corporation and a wholly-owned subsidiary of GLDD Company, was merged with and into
GLDD Company. 

  

	 	3.	Effective on November 25, 2002, NATCO Dredging Limited Partnership, a Delaware limited partnership of which GLDD Company was General Partner, was dissolved.

 Dawson Marine Services Company: 

 

	 	1.	F/k/a Dawson Dredging Company, a Delaware corporation. 

  

	B.	The following are the jurisdictions of organization of each of the Grantors: 

Great Lakes Dredge & Dock Corporation - Delaware 

Great Lakes Dredge & Dock Company - New Jersey 

North American Site Developers, Inc. - Massachusetts 

Great Lakes Caribbean Dredging, Inc. - Delaware 

Dawson Marine Services Company - Delaware 

Fifty-Three Dredging Corporation - New Jersey 

Schedule I 

Fourth Amended and Restated Note Pledge Agreement 

 Exhibit A 

Joinder Agreement 

This JOINDER AGREEMENT, dated as of             ,
20    , is delivered pursuant to Section 25 of the Fourth Amended and Restated Note Pledge Agreement, dated as of December 22, 2003, (the “Note Pledge Agreement”) by Great Lakes Dredge and
Dock Corporation (“Great Lakes”) and the Subsidiaries of the Great Lakes listed on the signature pages thereof in favor of Travelers Casualty and Surety Company, a Connecticut corporation (“TCASC”), and Travelers
Casualty and Surety Company of America, a Connecticut corporation (together with TCASC, the “Secured Party”). Capitalized terms used herein but not defined herein are used with the meanings given them in the Note Pledge Agreement.

 By executing and delivering this Joinder Agreement, the undersigned, as provided in Section 25 of the Note Pledge
Agreement, hereby becomes a party to the Note Pledge Agreement as a Grantor thereunder with the same force and effect as if originally named as a Grantor therein and, without limiting the generality of the foregoing, hereby grants to the Secured
Party, as collateral security for the full, prompt and complete payment and performance when due (whether at stated maturity, by acceleration or otherwise) of the Liabilities of the undersigned, hereby collaterally assigns and pledges to the Secured
Party and grants to the Secured Party a Lien on and security interest in, all of its right, title and interest in, to and under the Collateral of the undersigned and expressly assumes all obligations and liabilities of a Grantor thereunder.

 The information set forth in Annex 1-A is hereby added to the information set forth in the Schedules to the
Note Pledge Agreement. 
 The undersigned hereby represents and warrants that each of the representations and warranties
contained in Section 4 of the Note Pledge Agreement applicable to it is true and correct on and as the date hereof as if made on and as of such date. 

IN WITNESS WHEREOF, the undersigned has caused this Joinder Agreement to be duly executed and delivered as of the date first above
written. 
  

			
	[ADDITIONAL GRANTOR]
		
	By:	 	  

		 	    Name:
		 	    Title:

 EXHIBIT C 

FORM OF 

AMENDED AND RESTATED SECURITY AGREEMENT (A/R) 

THIS AMENDED AND RESTATED SECURITY AGREEMENT (A/R) (this “Agreement”) is dated as of December 22, 2003 and is made
by GREAT LAKES DREDGE & DOCK CORPORATION, a Delaware corporation (“Great Lakes”), and each other entity a signatory hereto or which becomes a party hereto pursuant to Section 27 (together with Great Lakes, each
a “Debtor” and collectively, the “Debtors”), in favor of and for the benefit of TRAVELERS CASUALTY AND SURETY COMPANY, a Connecticut corporation (as assignee of 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) (“TCASC”) and TRAVELERS CASUALTY AND SURETY
COMPANY OF AMERICA, a Connecticut corporation (“Travelers America”, and together with TCASC, the “Secured Party”). Capitalized terms used herein shall, unless otherwise defined herein, have the meanings provided in
the Underwriting Agreement referred to below. 
 RECITALS 

WHEREAS, Great Lakes has previously entered into that certain Security Agreement (A/R), dated as of August 19, 1998 (the
“Existing Great Lakes Agreement”), in favor of and for the benefit of the Secured Party; 
 WHEREAS, Great
Lakes Dredge & Dock Company, a New Jersey corporation (the “Company”), has previously entered into that certain Amended and Restated Security Agreement (A/R), dated as of August 19, 1998 (the “Existing Company
Agreement”), in favor of and for the benefit of the Secured Party; 
 WHEREAS, Great Lakes Caribbean Dredging, Inc., a
Delaware corporation (“Caribbean”), has previously entered into that certain Security Agreement (A/R), dated as of June 15, 2000 (the “Existing Caribbean Agreement”), in favor of and for the benefit of the
Secured Party; 
 WHEREAS, North American Site Developers, Inc., a Massachusetts corporation (“NASDI”), has
previously entered into that certain Security Agreement (A/R), dated as of April 24, 2001 (collectively with the Existing Great Lakes Agreement, the Existing Company Agreement and the Existing Caribbean Agreement, the “Existing
Agreements”), in favor of and for the benefit of the Secured Party; 
 WHEREAS, concurrently herewith the Debtors and
the Secured Party are entering into that certain Third Amended and Restated Underwriting and Continuing Indemnity Agreement dated as of even date herewith, which amends and restates that certain Second Amended and Restated Underwriting and
Continuing Indemnity Agreement, dated as of August 19, 1998, as amended, restated, supplemented or otherwise modified from time to time 

 
(as it may be further amended, restated, supplemented or otherwise modified from time to time, the “Underwriting Agreement”); 

WHEREAS, Great Lakes, the Company, Caribbean and NASDI desire to amend and restate the Existing Agreements on the terms and conditions
set forth in this Agreement; and 
 WHEREAS, each other Debtor desires to secure all obligations of such Debtor now or hereafter
existing under the Underwriting Agreement and the other Underwriting Documents and to grant security interests in certain of its personal property in favor of the Secured Party. 

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and in order to induce the Secured Party to issue Bonds in connection with the Underwriting Agreement, the parties hereto agree as follows: 

AGREEMENT 

SECTION 1. Grant of Security. Each Debtor hereby reaffirms its assignment, pledge and grant of a security interest pursuant to the
Existing Agreement and hereby presently assigns, pledges and grants to the Secured Party for its benefit a security interest in all of such Debtor’s right, title and interest in and to the following, in each case whether now existing or
hereafter arising, whether now owned or hereafter acquired and wherever the same may be located (the “Collateral”) to secure the Secured Obligations (as defined in Section 2): 

(a) All Accounts (as such term is defined in the Uniform Commercial Code in effect in the State of New York (the
“Code”)) arising from the Contracts, (i) including, without limitation, all right, title and interest to all monies due or to become due to such Debtor arising out of or in any way relating to any Contract, including, but not
limited to progress payments, deferred payments, retained percentages, compensation for other work, and claims and the proceeds thereof, (ii) but not including any Accounts the assignment of which for collateral security purposes is prohibited
by applicable local, state or Federal law; 
 (b) All General Intangibles (as such term is defined in the Code)
in any way related to any Contract, including, without limitation, all rights, actions, causes of action, claims and demands of such Debtor in, or arising from or out of, (i) any Contract or any extensions, modifications, changes or alterations
thereof or additions thereto or (ii) any subcontract in connection with a Contract or against any subcontractor or any Person, furnishing or agreeing to furnish or supply labor, materials, supplies, machinery, tools, or other equipment in
connection with or on account of a Contract or against any surety or sureties of any such materialman, subcontractor, laborer or other Person; 

(c) All books, records, ledger cards, files, correspondence, computer programs, tapes, disks and related data processing
software (owned by such Debtor or in which it has an interest) that at any time evidence or contain 
  

 2 

 
information relating to any of the Collateral or are otherwise necessary or helpful in the collection thereof or realization thereupon; 

(d) All proceeds of any and all of the foregoing Collateral and, to the extent not otherwise included, all payments under
insurance (whether or not the Secured Party is the loss payee thereof), or any indemnity, warranty or guaranty, payable by reason of loss or damage to or otherwise with respect to any of the foregoing Collateral. For purposes of this Agreement, the
term “proceeds” includes whatever is receivable or received when Collateral or proceeds are sold, collected, exchanged or otherwise disposed of, whether such disposition is voluntary or involuntary, and includes, without limitation, all
rights to payment, including returned premiums, with respect to any insurance relating thereto. 
 SECTION 2. Security for
Obligations. This Agreement secures and the Collateral is collateral security for the prompt payment or performance in full when due (including the payment of amounts that would become due but for the operation of the automatic stay under
Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)) of all obligations of every nature of each Debtor now or hereafter existing under the Underwriting Agreement, the other Underwriting Documents, whether now existing or
hereafter arising, voluntary or involuntary, whether or not jointly owed with others, direct or indirect, absolute or contingent, liquidated or unliquidated, and whether or not from time to time decreased or extinguished and later increased, created
or incurred and all or any portion of such obligations that are paid, to the extent all or any part of such payment is avoided or recovered directly or indirectly from the Secured Party as a preference, fraudulent transfer or otherwise, (all such
obligations being the “Underlying Debt”), and all obligations of every nature of each Debtor now or hereafter existing under this Agreement (all such obligations of the Debtors, together with the Underlying Debt, being the
“Secured Obligations”). 
 SECTION 3. The Debtors Remain Liable. Anything herein to the contrary
notwithstanding, (a) each Debtor shall remain liable under any contracts and agreements included in the Collateral, to the extent set forth therein, to perform all of its duties and obligations thereunder to the same extent as if this Agreement
had not been executed, (b) the exercise by the Secured Party of any of the rights hereunder shall not release any Debtor from any of its duties or obligations under the contracts and agreements included in the Collateral and (c) the
Secured Party shall not have any obligation or liability under any contracts and agreements included in the Collateral by reason of this Agreement, nor shall the Secured Party be obligated to perform any of the obligations or duties of any Debtor
thereunder or to take any action to collect or enforce any claim for payment assigned hereunder. 
 SECTION 4.
Representations and Warranties. Each Debtor represents and warrants, as of the date of this Agreement and on the date of the issuance of any Bond (unless such representation speaks only as of the date hereof and except as otherwise permitted
by this Agreement or the Underwriting Agreement) until the termination of this Agreement, as follows: 
 (a)
Ownership of Collateral. Except for the security interest created by this Agreement and Liens otherwise permitted under the Underwriting Agreement, the Debtors own the Collateral free and clear of any Lien. Except as

  

 3 

 
may have been filed in favor of the Secured Party relating to this Agreement or in favor of a secured party permitted by the Underwriting Agreement, no effective financing statement or other
instrument similar in effect covering all or any part of the Collateral is on file in any filing or recording office; 

(b) Validity. This Agreement creates a valid security interest in the Collateral securing the payment of the
Secured Obligations; 
 (c) Governmental Authorizations. Other than those authorizations and approvals
which have been obtained, no authorization, approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required (other than the filing of UCC-1 financing statements) either (i) for the grant
by the Debtors of the security interests granted hereby or for the execution, delivery or performance of this Agreement by the Debtors or (ii) for the perfection of the security interests hereunder; 

(d) Other Information. All written information heretofore, herein or hereafter supplied to the Secured Party by the
Debtors with respect to the Collateral is accurate and complete in all material respects; and 
 (e) Office
Locations; Fictitious Names. The jurisdiction of organization of each Debtor as of the date hereof is set forth on Schedule I hereto. The chief executive office and the office where the Debtors keep their records regarding the Accounts is
located at the address of the Debtors set forth on Schedule I hereto. Within the five-year period preceding the date hereof, the Debtors have not done business under any trade-name or fictitious business name except for those names set forth
on Schedule I. 
 SECTION 5. Further Assurances. (a) Each of the Debtors agrees that from time to time, and
at their expense, each Debtor will promptly execute and deliver all further instruments and documents, and take all further action, that may be reasonably necessary or desirable, or that the Secured Party may reasonably request, in order to perfect
and protect any security interest granted or purported to be granted hereby or to enable the Secured Party to exercise and enforce its rights and remedies hereunder with respect to any Collateral. 

(b) Each Debtor hereby authorizes the Secured Party to file one or more financing or continuation statements, and
amendments thereto, relative to all or any part of the Collateral without the signature of such Debtor, to the extent permitted under applicable law. 

(c) Each Debtor will furnish to the Secured Party from time to time statements and schedules further identifying and
describing the Collateral and such other reports in connection with the Collateral as the Secured Party may reasonably request, all in reasonable detail. 
  

 4 

 SECTION 6. Covenants of Debtor. Each Debtor shall: 

(a) Not use or permit any Collateral to be used in violation of any provision of this Agreement or any other Underwriting
Document, any policy of insurance covering the Collateral which could reasonably be expected to cause a termination of such insurance policy or any applicable statute, regulation or ordinance the noncompliance with which could reasonably be expected
to result in a Material Adverse Change; and 
 (b) Notify the Secured Party of any change in such Debtor’s
name, identity, jurisdiction of organization or corporate structure which would cause the financing statements filed in connection herewith to be misleading prior to such change. 

SECTION 7. [RESERVED] 

SECTION 8. Insurance. (a) Each Debtor will maintain or cause to be maintained, insurance as provided in
Section 6.4 of the Underwriting Agreement or any other Underwriting Document. Each Debtor shall, if so requested by the Secured Party, deliver to the Secured Party copies of such policies of such insurance and, as often as the Secured
Party may reasonably request, a report of a reputable insurance broker with respect to such insurance. 
 SECTION 9. Special
Covenants With Respect to Accounts. 
 (a) Each Debtor shall keep its chief executive office and the offices
where it keeps its records concerning the Accounts at the location therefor specified in Section 4 or, upon 30 days’ prior written notice to the Secured Party, at such other locations in a jurisdiction where all action that may be
reasonably necessary or desirable or that the Secured Party may reasonably request in order to perfect and protect any security interest granted or purported to be granted hereby or to enable the Secured Party to exercise and enforce its rights and
remedies hereunder with respect to such Accounts shall have been taken. Each Debtor will hold and preserve such records and will permit representatives of the Secured Party at any reasonable time upon reasonable prior notice during normal business
hours to inspect and make abstracts from such records and each Debtor agrees to render to the Secured Party, at such Debtor’s cost and expense, such clerical and other assistance as may be reasonably requested with regard thereto. 

(b) Except as otherwise provided in this subsection (b) of this Section 9, each Debtor shall continue to
collect, at its own expense, all amounts due or to become due such Debtor under the Accounts. In connection with such collections, such Debtor may take such action as such Debtor may deem necessary or advisable to enforce collection of the Accounts;
provided, however, that Secured Party shall have the right at any time, upon the occurrence and during the continuance of an Event of Default and upon written notice to such Debtor of its intention to do so, to notify the account
debtors or obligors under any Accounts of the assignment of such Accounts to the Secured Party and to 
  

 5 

 
direct such account debtors or obligors to make payment of all amounts due or to become due to such Debtor thereunder directly to the Secured Party, upon such notification and at the expense of
such Debtor, to enforce collection of any such Accounts and to adjust, settle or compromise the amount or payment thereof, in the same manner and to the same extent as such Debtor might have done. After receipt by any Debtor of the notice from the
Secured Party referred to in the proviso to the preceding sentence, (i) all amounts and proceeds (including checks and other instruments) received by such Debtor in respect of the Accounts shall be received in trust for the benefit of
the Secured Party hereunder, shall be segregated from other funds of such Debtor and shall be forthwith paid over or delivered to the Secured Party in the same form as so received (with any necessary endorsement) to be held as cash collateral and
applied as provided in Section 14, and (ii) such Debtor shall not adjust, settle or compromise the amount or payment of any Accounts, or release wholly or partly any account debtor or obligor thereof, or allow any credit or discount
thereon. 
 SECTION 10. Secured Party Appointed Attorney-in-Fact. Each Debtor hereby irrevocably appoints the Secured
Party such Debtor’s attorney-in-fact with full authority in the place and stead of such Debtor and in the name of such Debtor, the Secured Party or otherwise, from time to time, following the occurrence and during the continuation of an Event
of Default, in the Secured Party’s discretion to take any action and to execute any instrument that the Secured Party may deem necessary or advisable to accomplish the purposes of this Agreement, including, without limitation: 

(a) to obtain and adjust insurance required to be maintained by such Debtor or paid to the Secured Party pursuant to
Section 8, 
 (b) to ask, demand, collect, sue for, recover, compound, receive and give acquittance
and receipts for moneys due and to become due under or in respect of any of the Collateral, 
 (c) to receive,
endorse, and collect any drafts or other instruments, documents and chattel paper, in connection with clauses (a) and (b) above, 

(d) to file any claims or take any action or institute any proceedings that the Secured Party may deem necessary or
desirable for the collection of any of the Collateral or otherwise to enforce the rights of the Secured Party with respect to any of the Collateral, 

(e) to pay or discharge taxes or Liens, levied or placed upon or threatened against the Collateral, the legality or
validity thereof and the amounts necessary to discharge the same to be determined by the Secured Party in its sole discretion, and such payments made by the Secured Party to become obligations of such Debtor to the Secured Party, which shall be
added to the Secured Obligations and shall be due and payable immediately without demand, 
  

 6 

 (f) to sign and endorse any invoices, freight or express bills, bills of
lading, storage or warehouse receipts, drafts against debtors, assignments, verifications and notices in connection with accounts and other documents relating to the Collateral, 

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

 provided, that the Secured Party shall not exercise the foregoing appointment as any Debtor’s attorney-in-fact until Secured Party shall
have given notice to such Debtor following the occurrence and during the continuance of an Event of Default. 
 SECTION 11.
Secured Party May Perform. If any Debtor fails to perform any agreement contained herein, after notice thereof from the Secured Party, the Secured Party may itself perform, or cause performance of, such agreement, and the reasonable expenses
of Secured Party incurred in connection therewith shall be added to the Secured Obligations and shall be payable by such Debtor under Section 15. 

SECTION 12. Secured Party’s Duties and Liabilities. 

(a) The powers conferred on the Secured Party hereunder are solely to protect its interest in the Collateral and shall not
impose any duty upon it to exercise any such powers. Except for the safe custody of any Collateral in its possession and the accounting for moneys actually received by it hereunder, the Secured Party shall have no duty as to any Collateral or as to
the taking of any necessary steps to preserve rights against prior parties or any other rights pertaining to any Collateral. The Secured Party shall be deemed to exercise reasonable care in the custody and preservation of such Collateral if such
Collateral is accorded treatment substantially equal to that which the Secured Party accords its own property. 

(b) The Secured Party shall not be liable to any Debtor (i) for any loss or damage sustained by it, or (ii) for
any loss, damage, depreciation or other diminution in the value of any of the Collateral, that may occur as a result of, in connection with or that is in any way related to (x) any exercise by the Secured Party of any right or remedy under this
Agreement or (y) any other act of or failure to act by the Secured Party, except to the extent that the same shall be determined by a judgment of a court of competent jurisdiction to be the result of acts or omissions on the part of the Secured
Party constituting bad faith, gross negligence or willful misconduct. 
  

 7 

 (c) NO CLAIM MAY BE MADE BY THE DEBTORS AGAINST THE SECURED PARTY OR ANY OF
ITS AFFILIATES, DIRECTORS, OFFICERS, EMPLOYEES, OR ATTORNEYS FOR ANY SPECIAL, INDIRECT, OR CONSEQUENTIAL DAMAGES IN RESPECT OF ANY BREACH OR WRONGFUL CONDUCT (WHETHER THE CLAIM THEREFOR IS BASED ON CONTRACT, TORT OR DUTY IMPOSED BY LAW) IN
CONNECTION WITH, ARISING OUT OF OR IN ANY WAY RELATED TO THE TRANSACTIONS CONTEMPLATED AND RELATIONSHIP ESTABLISHED BY THIS AGREEMENT, OR ANY ACT, OMISSION OR EVENT OCCURRING IN CONNECTION THEREWITH; AND EACH DEBTOR HEREBY EXPRESSLY WAIVES, RELEASES
AND AGREES NOT TO SUE UPON ANY SUCH CLAIM FOR ANY SUCH DAMAGES, WHETHER OR NOT ACCRUED AND WHETHER OR NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR. 

SECTION 13. Remedies. If any Event of Default shall have occurred and be continuing, the Secured Party may exercise in respect of
the Collateral, (a) all the rights and remedies of a secured party on default under the Code (whether or not the Code applies to the affected Collateral), (b) all of the rights and remedies provided for in this Agreement, the Underwriting
Agreement and any other agreement between the Debtors and the Secured Party and (c) such other rights and the remedies as may be provided by law or otherwise (such rights and remedies of the Secured Party to be cumulative and non-exclusive). If
an Event of Default shall have occurred and be continuing, the Secured Party also may (i) require the Debtors to, and the Debtors hereby agree that each Debtor will at its expense and upon request of the Secured Party forthwith, assemble all or
part of Collateral as directed by Secured Party and make it available to the Secured Party at a place to be designated by the Secured Party that is reasonably convenient to such parties, (ii) enter onto the property where any Collateral is
located and take possession thereof with or without judicial process, (iii) prior to the disposition of the Collateral, store, process, repair or recondition the Collateral or otherwise prepare the Collateral for disposition in any manner to
the extent the Secured Party deems appropriate, (iv) take possession of such Debtor’s premises or place custodians in exclusive control thereof, remain on such premises and use the same and any equipment of such Debtor for the purpose of
completing any work in process, taking any actions described in the preceding clause (iii) and collecting any Secured Obligation, and (v) without notice except as specified below, sell the Collateral or any part thereof in one or more
parcels at public or private sale, at any of the Secured Party’s offices or elsewhere, for cash, on credit or for future delivery, and at such price or prices and upon such other terms as the Secured Party may deem commercially reasonable. Each
Debtor agrees that, at least ten days’ notice to such Debtor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. The Secured Party shall not be obligated to
make any sale of Collateral regardless of notice of sale having been given. The Secured Party may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice,
be made at the time and place to which it was so adjourned. 
 SECTION 14. Application of Proceeds. Except as expressly
provided elsewhere in this Agreement, all proceeds received by the Secured Party in respect of any sale of, collection from or other realization upon all or any part of the Collateral may, in the discretion of the

  

 8 

 
Secured Party, be held by the Secured Party as Collateral for, and/or then, or at any other time thereafter applied, in full or in part by the Secured Party against the Secured Obligations in the
following order of priority: 
 FIRST: To the payment of all reasonable costs and expenses of such sale,
collection or other realization and all other expenses, liabilities and advances made or incurred by the Secured Party in connection therewith and all amounts for which the Secured Party is entitled to indemnification hereunder and all advances made
by the Secured Party hereunder for the account of such Debtor and for the payment of all costs and expenses paid or incurred by the Secured Party in connection with the exercise of any right or remedy hereunder; 

SECOND: To the payment in full of the Secured Obligations owing to the Secured Party; and 

THIRD: After payment in full of the amounts specified in the preceding paragraphs, to the payment to or upon the
order of such Debtor, or whomsoever may be lawfully entitled to receive the same or as a court of competent jurisdiction may direct, of any surplus then remaining from such proceeds. 

All applications of proceeds to the Secured Obligations shall be applied to the payment of interest before application of payment to
principal. 
 SECTION 15. Indemnity and Expenses. 

(a) Each Debtor agrees to indemnify the Secured Party from and against any and all claims, losses and liabilities growing
out of or resulting from this Agreement (including, without limitation, enforcement of this Agreement), except claims, losses or liabilities resulting from the Secured Party’s gross negligence, bad faith or willful misconduct. 

(b) Each Debtor will within 15 days after written demand pay to the Secured Party the amount of any and all reasonable
expenses, including the reasonable fees and disbursements of its counsel and of any experts and agents, that the Secured Party may incur in connection with (i) the custody, preservation, use or operation of, or the sale of, collection from, or
other realization upon, any of the Collateral, (ii) the exercise or enforcement of any of the rights of the Secured Party hereunder or (iii) the failure by such Debtor to perform or observe any of the provisions hereof. 

SECTION 16. Other Waivers by the Debtors, Etc. 

Each Debtor waives any right to require the Secured Party to make or give any presentments, demands for performance, notices of
nonperformance, protests, notices of protests or notices of dishonor in connection with any obligation or evidences of indebtedness held by the Secured Party as collateral, or in connection with any obligations or evidences of indebtedness that
constitute in whole or in part the Underlying Debt, or in connection with the creation of new or additional indebtedness. 
  

 9 

 Each Debtor waives any defense arising by reason of, and agrees that the rights of the
Secured Party and the obligations of such Debtor shall be absolute and unconditional irrespective of, (a) any disability or other defense of any other Person; (b) the unenforceability or cessation from any cause whatsoever, other than the
payment in full, of the Underlying Debt; (c) the application by such Debtor of the proceeds of any Underlying Debt for purposes other than the purposes represented by such Debtor to the Secured Party or intended or understood by the Secured
Party; (d) any modification of the Underlying Debt, in any form whatsoever, including without limitation the renewal, extension, acceleration or other changes in time for payment of the Underlying Debt, or other change in the terms of the
Underlying Debt or any part thereof, including any increase or decrease of the rate of interest thereon; (e) any right to deferral or modification of such Debtor’s obligations hereunder by reason of any bankruptcy, reorganization,
arrangement, moratorium or other debtor relief proceeding; and (f) any other circumstance that might otherwise constitute a defense available to, or a discharge of, any other Person in respect of the Underlying Debt other than payment in full
of the Secured Obligations (other than contingent and indemnification obligations for which no claim has been, or is reasonably expected to be, made). 

Each Debtor waives any right to enforce any remedy that the Secured Party now has or may hereafter have against any other Person, and
waives any benefit of, or any right to participate in, any security whatsoever now or hereafter held by the Secured Party. 

SECTION 17. Waiver of Jury Trial. THE DEBTORS AND THE SECURED PARTY HEREBY AGREE TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL
OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT. The scope of this waiver is intended to be all-encompassing of any and all disputes that may be filed in any court and that relate to the subject matter of this
transaction, including, without limitation, contract claims, tort claims, breach of duty claims, and all other common law and statutory claims. The Debtors and the Secured Party each acknowledge that this waiver is a material inducement for each
Debtor and the Secured Party to enter into a business relationship, that each Debtor and the Secured Party have already relied on the waiver in entering into this Agreement and that each will continue to rely on the waiver in their related future
dealings. The Debtors and the Secured Party further warrant and represent that each has reviewed this waiver with its legal counsel, and that each knowingly and voluntarily waives its jury trial rights following consultation with legal counsel. THIS
WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. In the event of litigation, this Agreement may
be filed as a written consent to a trial by the court. 
 SECTION 18. Continuing Security Interest. This Agreement shall
create a continuing security interest in the Collateral and shall (a) remain in full force and effect until no Bonds shall remain outstanding, no obligations remain outstanding under any Bond and the payment in full of the Secured Obligations
(other than contingent and indemnification obligations for which no claim has been, or is reasonably expected to be, made), (b) be binding upon each Debtor, and their respective successors and assigns and (c) inure, together with the
rights and remedies of the Secured Party hereunder, to the benefit of the Secured Party and its successors, transferees and assigns. Upon the termination of the Underwriting Agreement, the 

 

 10 

 
security interest granted hereby shall terminate and all rights to the Collateral shall revert to the Debtors. In addition, upon the disposition of any Collateral in compliance with Sections 6.13
and 8.12 of the Underwriting Agreement, such Collateral is hereby released by the Secured Party from the security interest granted herein. Upon any such termination or release, the Secured Party will, at the Debtors’ expense, execute and
deliver to the Debtors such documents as the Debtors shall reasonably request to evidence such termination. 
 SECTION 19.
Amendments; Etc. No amendment or waiver of any provision of this Agreement nor consent to any departure by the Debtors herefrom, shall in any event be effective unless the same shall be in writing and signed by the Secured Party and the
Debtors, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 

SECTION 20. Addresses for Notices. All notices and other communications provided for hereunder shall be made in accordance with
Section 8.9 of the Underwriting Agreement. 
 SECTION 21. Consent to Jurisdiction and Service of Process.
Each of the Debtors and the Secured Party hereby submits to the nonexclusive jurisdiction of the state courts of the State of New York and the federal courts located in the State of New York for all matters arising under this Agreement and related
documents. Service of process sufficient for personal jurisdiction in any action against the Debtor in New York may be made by registered or certified mail, return receipt requested, to the address specified pursuant to Section 20.

 SECTION 22. GOVERNING LAW; TERMS. THIS AGREEMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW). Unless otherwise defined herein or in the Underwriting
Agreement, terms used in Article 9 of the Code as in effect in the State of New York are used herein as therein defined. 

SECTION 23. Headings. Section and subsection headings in this Agreement are included herein for convenience of reference only and
shall not constitute a part of this Agreement or be given any substantive effect. 
 SECTION 24. Severability. In case
any provision in or obligation under this Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation and in any
other jurisdiction, shall not in any way be affected or impaired thereby. 
 SECTION 25. Successors and Assigns. This
Agreement shall be binding upon and inure to the benefit of each Debtor and the Secured Party, and their respective successors and assigns (including successors by way of merger, acquisition or similar event). Each Debtor’s successors and
assigns shall include, without limitation, a receiver, trustee or debtor-in-possession of or for such Debtor. 
  

 11 

 SECTION 26. No Other Writing. This writing is intended by the Debtors and the Secured
Party as the final expression of this Agreement and is also intended as a complete and exclusive statement of the terms of their agreement with respect to the matters covered hereby. No course of dealing, course of performance or trade usage, and no
parol evidence of any nature, shall be used to supplement or modify and terms of this Agreement. There are no conditions to the full effectiveness of this Agreement. 

SECTION 27. Counterparts. This Agreement may be executed in one or more counterparts, each of which when so executed shall be
deemed an original, but all such counterparts together shall constitute but one and the same instrument. 
 SECTION 28.
Additional Debtors. If, pursuant to Section 6.14 of the Underwriting Agreement or otherwise, Great Lakes shall be required to cause any Subsidiary that is not a Debtor to become a Debtor hereunder or if for any reason Great Lakes
shall desire that any Subsidiary that is not a Debtor become a Debtor hereunder, such Subsidiary shall execute and deliver to the Secured Party a joinder agreement (a “Joinder Agreement”) in substantially the form of Exhibit
A attached hereto and shall thereafter for all purposes be a party hereto and have all the same rights, benefits and obligations as any Debtor party hereto. 

SECTION 29. Amendment and Restatement. Effective as of the date this Agreement is executed, (a) this Agreement shall amend
and restate in its entirety the Existing Agreements, and (b) each reference to any Existing Agreement in any of the Underwriting Documents or any other document, instrument or agreement delivered in connection therewith shall mean and be a
reference to this Agreement. 
 SECTION 30. Reaffirmation and Restatement. This Agreement constitutes an amendment and
restatement of the Existing Agreements and the Debt secured by the Existing Agreements is continuing Debt. Nothing herein shall be deemed to constitute a payment, settlement or novation of the Debt secured by the Existing Agreements, or to release
or otherwise adversely affect any Lien securing such Debt or any rights the Secured Party has against any guarantor, surety or other party primarily or secondarily liable for such Debt. 

 

 12 

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

			
	GREAT LAKES DREDGE & DOCK CORPORATION
		
	By:	 	  

	    Name:	 	Deborah A. Wensel
	    Title:	 	 Senior Vice President, Chief Financial

Officer and Treasurer

	
	GREAT LAKES DREDGE & DOCK COMPANY
		
	By:	 	  

	    Name:	 	Deborah A. Wensel
	    Title:	 	 Senior Vice President, Chief Financial

Officer and Treasurer

	
	GREAT LAKES CARIBBEAN DREDGING, INC.
		
	By:	 	  

	    Name:	 	Deborah A. Wensel
	    Title:	 	 Senior Vice President, Chief Financial

Officer and Treasurer

	
	NORTH AMERICAN SITE DEVELOPERS, INC.
		
	By:	 	  

	    Name:	 	Deborah A. Wensel
	    Title:	 	Vice President and Treasurer
	
	DAWSON MARINE SERVICES COMPANY
		
	By:	 	  

	    Name:	 	Deborah A. Wensel
	    Title:	 	 Senior Vice President, Chief Financial

Officer and Treasurer

[SIGNATURE PAGE TO SECURITY AGREEMENT (A/R)] 

			
	FIFTY-THREE DREDGING CORPORATION
		
	By:	 	  

	    Name:	 	Deborah A. Wensel
	    Title:	 	Vice President

 [SIGNATURE PAGE TO
SECURITY AGREEMENT (A/R)] 

			
	TRAVELERS CASUALTY AND SURETY COMPANY
		
	By:	 	  

	    Name:	 	  

	    Title:	 	  

	
	TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA
		
	By:	 	  

	    Name:	 	  

	    Title:	 	  

[SIGNATURE PAGE TO SECURITY AGREEMENT (A/R)] 

 SECURITY AGREEMENT 

Schedule I 
  

	A.	The following are the jurisdictions of organization of each of the Debtors: 

Great Lakes Dredge & Dock Corporation- Delaware 

Great Lakes Dredge & Dock Company- New Jersey 

North American Site Developers, Inc.- Massachusetts 

Great Lakes Caribbean Dredging, Inc.- Delaware 

Dawson Marine Services Company- Delaware 

Fifty-Three Dredging Corporation- New Jersey 
  

	B.	The chief executive office of each of the Debtors, other than North American Site Developers, Inc. (“NASDI”), is located at: 

2122 York Road 

Oak Brook, IL 60523 

The chief executive office for NASDI is located at: 

218 Lincoln Street 

Allston, MA 02134 
 Please note
that records regarding NASDI Accounts are also kept at 2122 York Road, Oak Brook, IL 60523. 
 C. Trade name, fictitious business name or other
name: 
 The Debtors have not used any trade names or fictitious names within the five-year period preceding the date hereof. However, please
note the following: 
 Great Lakes: 
  

	 	1.	Effective on December 31, 1998, Great Lakes International, Inc., a Delaware corporation and a wholly-owned subsidiary of Great Lakes, was merged with and into
Great Lakes. 

 Great Lakes Dredge & Dock Company (“GLDD Company”): 

 

	 	1.	On December 31, 2001, Gates Construction Corp., a New Jersey corporation and a wholly-owned subsidiary of GLDD Company, was dissolved. 

 

	 	2.	Effective on December 31, 2002, North American Trailing Company, a Delaware corporation and a wholly-owned subsidiary of GLDD Company, was merged with and into
GLDD Company. 

  

	 	3.	Effective on November 25, 2002, NATCO Dredging Limited Partnership, a Delaware limited partnership of which GLDD Company was General Partner, was dissolved.

 Amended and Restated Security Agreement (A/R) 

Schedule I 

 Dawson Marine Services Company: 

 

	 	1.	F/k/a Dawson Dredging Company, a Delaware corporation. 

Amended and Restated Security Agreement (A/R) 

Schedule I 

 Exhibit A 

Joinder Agreement 

This JOINDER AGREEMENT, dated as of              ,
20    , is delivered pursuant to Section 27 of the Amended and Restated Security Agreement (A/R), dated as of December 22, 2003, by Great Lakes Dredge and Dock Corporation, a Delaware corporation
(“Great Lakes”), and the Subsidiaries of the Great Lakes listed on the signature pages thereof in favor of Travelers Casualty and Surety Company, a Connecticut corporation (“TCASC”), and Travelers Casualty and
Surety Company of America, a Connecticut corporation (together with TCASC, the “Secured Party”) (the “Receivables Security Agreement”). Capitalized terms used herein but not defined herein are used with the meanings
given them in the Receivables Security Agreement. 
 By executing and delivering this Joinder Agreement, the undersigned, as
provided in Section 28 of the Receivables Security Agreement, hereby becomes a party to the Receivables Security Agreement as a Debtor thereunder with the same force and effect as if originally named as a Debtor therein and, without
limiting the generality of the foregoing, hereby grants to the Secured Party, as collateral security for the full, prompt and complete payment and performance when due (whether at stated maturity, by acceleration or otherwise) of the Secured
Obligations of the undersigned, hereby collaterally assigns and pledges to the Secured Party and grants to the Secured Party a Lien on and security interest in, all of its right, title and interest in, to and under the Collateral of the undersigned
and expressly assumes all obligations and liabilities of a Debtor thereunder. 
 The information set forth in Annex 1-A
is hereby added to the information set forth in the Schedules to the Receivables Security Agreement. 
 The
undersigned hereby represents and warrants that each of the representations and warranties contained in Section 4 of the Receivables Security Agreement applicable to it is true and correct on and as the date hereof as if made on and as
of such date. 
 IN WITNESS WHEREOF, the undersigned has caused this Joinder Agreement to be duly executed and delivered as of
the date first above written. 
  

			
	[ADDITIONAL DEBTOR]
		
	By:	 	  

		 	    Name:
		 	    Title:

 EXHIBIT D-1 

FORM OF 

SECURITY AGREEMENT (EQUIPMENT) 

This SECURITY AGREEMENT (EQUIPMENT) (this “Agreement”) is made and entered into as of December 22, 2003 by GREAT
LAKES DREDGE & DOCK CORPORATION, a Delaware corporation (the “Grantor”), in favor of TRAVELERS CASUALTY AND SURETY COMPANY, a Connecticut corporation (as assignee of 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) (“TCASC”) and TRAVELERS CASUALTY AND SURETY COMPANY OF
AMERICA, a Connecticut corporation (“Travelers America”, and together with TCASC, the “Secured Party”). 

RECITALS 

WHEREAS, concurrently herewith the Grantor and the Secured Party are entering into that certain Third Amended and Restated Underwriting
and Continuing Indemnity Agreement, dated as of even date herewith, which amends and restates that certain Second Amended and Restated Underwriting and Continuing Indemnity Agreement, dated as of August 19, 1998, as amended, supplemented or
otherwise modified from time to time (as it may be further amended, restated, supplemented or otherwise modified, the “Underwriting Agreement”; capitalized terms defined therein and not otherwise defined herein being used herein as
therein defined); 
 WHEREAS, the Grantor desires to secure all obligations of the Grantor now or hereafter existing under the
Underwriting Agreement and the other Underwriting Documents; and 
 WHEREAS, the Grantor desires to grant security interests in
certain of its personal property in favor of the Secured Party. 
 NOW, THEREFORE, in consideration of the premises set forth
herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

1. Defined Terms. Unless otherwise defined herein, terms defined in the Underwriting Agreement are used herein as therein defined,
and the following terms shall have the following meanings (such meanings being equally applicable to both the singular and the plural forms of the terms defined): 

“Collateral” shall mean all property and rights in property now owned or hereafter at any time acquired by the Grantor
with respect to which a Lien is granted in favor of the Secured Party by the Grantor under this Agreement pursuant to Section 2. 

 “First Preferred Fleet Mortgage” shall mean that certain First Preferred
Fleet Mortgage of even date herewith executed and delivered by the Grantor in favor of the Secured Party, as such agreement may be amended, restated, supplemented, or otherwise modified from time to time. 

“Second Preferred Fleet Mortgage” shall mean that certain Second Preferred Fleet Mortgage of even date herewith executed
and delivered by the Grantor in favor of the Secured Party, as such agreement may be amended, restated, supplemented, or otherwise modified from time to time. 

“UCC” shall mean the Uniform Commercial Code, as the same may, from time to time, be in effect in the State of New York;
provided, however, in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of the Secured Party’s security interest in any Collateral is governed by the Uniform Commercial
Code as in effect in a jurisdiction other than the State of New York, the term “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such attachment,
perfection or priority and for purposes of definitions related to such provisions. 
 “Vessels” shall mean,
collectively, those “Vessels” from time to time subject to and as defined in the First Preferred Fleet Mortgage or the Second Preferred Fleet Mortgage (including, without limitation, those Vessels described in Schedule I hereto).

 2. Grant of Security. To secure the prompt and complete payment, observance and performance when due of (a) the
Grantor’s obligations and liabilities under the Underwriting Agreement and the other Underwriting Documents, including, without limitation, all “Loss” under and as defined in the Underwriting Agreement and (b) the Grantor’s
obligations and liabilities under this Agreement, any other agreement, document or instrument executed by the Grantor pursuant to or in connection with such agreements (all such obligations and liabilities of the Grantor now or hereafter existing
being hereinafter referred to as the “Liabilities”), the Grantor pledges to the Secured Party, and grants to the Secured Party, a security interest in all of the Grantor’s right, title and interest in and to the following,
whether now owned or existing or hereafter arising or acquired and wheresoever located: all Vessels and all equipment (including, without limitation, all “equipment” as such term is defined in Section 9-102(a)(33) of the UCC), whether
now owned or hereafter acquired or arising, which is from time to time attached to, located on, or related to, one or more of the Vessels, including, without limitation, all boilers, engines, machinery, masts, spars, sails, boats, anchors, cables,
chains, rigging, tackle, apparel, cranes, drills, excavators, shovels, construction equipment, furniture, furnishings, appliances, tools, tooling, and all other goods of every type and description (other than inventory), in each instance whether now
owned or hereafter acquired by the Grantor and wherever located, together, in each instance, with all accessions and additions to any of the foregoing, substitutions therefor, earnings and other intangibles with respect thereto, replacements,
proceeds and products thereof (including, without limitation, all charter and freight hire proceeds, insurance proceeds and requisition proceeds) (collectively, the “Equipment”), and all books and records with respect thereto.

  

 2 

 3. Grantor Remains Liable. Anything herein to the contrary notwithstanding,
(a) the Grantor shall remain solely liable under any contracts and agreements related to the Collateral to perform all of its duties and obligations thereunder to the same extent as if this Agreement had not been executed, (b) the exercise
by the Secured Party of any of its rights hereunder shall not release the Grantor from any of its duties or obligations under the contracts and agreements related to the Collateral, and (c) the Secured Party shall not have any responsibility,
obligation or liability under the contracts and agreements related to the Collateral by reason of this Agreement, nor shall the Secured Party be required or obligated, in any manner, to (i) perform or fulfill any of the obligations or duties of
the Grantor thereunder, (ii) make any payment, or make any inquiry as to the nature or sufficiency of any payment received by the Grantor or the sufficiency of any performance by any party under any such contract or agreement or
(iii) present or file any claim, or take any action to collect or enforce any claim for payment assigned hereunder. 
 4.
Representations and Warranties. The Grantor represents and warrants, as of the date of this Agreement and on the date of the issuance of any Bond (unless such representation speaks only as of the date hereof and except as otherwise permitted
by this Agreement or the Underwriting Agreement) until the termination of this Agreement pursuant to Section 17, that: 

(a) The correct corporate name of the Grantor is set forth in the first paragraph of this Agreement. The chief place of business and
chief executive office of the Grantor are located at 2122 York Road, Oak Brook, Illinois 60523. All records included within or otherwise concerning the Collateral are located at such addresses or at the locations of the Equipment described and
permitted herein. 
 (b) On the date hereof, the Grantor’s Equipment (other than Equipment in transit or out for repair) is
kept at the locations listed on Schedule II hereto. 
 (c) The Grantor has exclusive possession and control of such
Equipment, except for such Equipment which is leased to third parties, or is otherwise in possession of third parties, in a manner not prohibited by the Underwriting Agreement. 

(d) The Grantor is the legal and beneficial owner of the Collateral free and clear of all Liens, except for Liens permitted by the
Underwriting Agreement (“Permitted Liens”) and has rights in and the power to transfer each item of Collateral. 

(e) The Grantor conducts business under its legal corporate name and, within the five-year period preceding the date hereof, the Grantor
has not used any trade names or fictitious names, except as set forth on Schedule III. 
 (f) This Agreement creates in
favor of the Secured Party a legal, valid and enforceable security interest in all Collateral in which a security interest may be created under the UCC (hereinafter, the “UCC Collateral”). When financing statements against the
Grantor have been properly presented for filing and the filing fee has been tendered or have been accepted by the filing officer in the appropriate public recording offices in the Grantor’s jurisdiction of incorporation, the Secured Party will
have a fully perfected first priority lien on, 
  

 3 

 
and security interest in, the UCC Collateral in which a security interest may be perfected by the filing of UCC financing statements, subject only to Permitted Liens. 

(g) No authorization, approval or other action by, and no notice to or filing with, any governmental authority or regulatory body that
has not already been taken or made and which is in full force and effect, is required (i) for the grant by the Grantor of the security interest in the Collateral granted hereby; (ii) for the execution, delivery or performance of this
Agreement by the Grantor; or (iii) for the exercise by the Secured Party of any of its other rights or remedies hereunder. 

5. Perfection and Maintenance of Security Interest and Lien. The Grantor agrees that until such time as no Bonds shall remain
outstanding, no obligations remain outstanding under any Bond and all of the Liabilities (other than contingent and indemnification obligations for which no claim has been, or is reasonably expected to be, made) have been fully satisfied, this
Agreement and the security interests and Liens created hereby shall continue in full force and effect. The Grantor shall perform any and all steps reasonably requested by the Secured Party to perfect, maintain and protect the Secured Party’s
security interests in and Liens on and against the Collateral granted or purported to be granted hereby or to enable the Secured Party to exercise its rights and remedies hereunder with respect to any Collateral, including, without limitation,
executing and filing financing or continuation statements, or amendments thereof, in form and substance reasonably satisfactory to the Secured Party and executing and delivering all further instruments and documents, and taking all further action,
as the Secured Party may reasonably request. 
 6. Financing Statements. To the extent permitted by applicable law, the
Grantor hereby authorizes the Secured Party to file financing or continuation statements and amendments thereto disclosing the security interest granted to the Secured Party under this Agreement without the Grantor’s signature appearing
thereon, and the Secured Party agrees to notify the Grantor when such a filing has been made. If any Collateral is in the possession or control of any third party (including, without limitation, any bailee or warehouseman or other third party), upon
the Secured Party’s request, Grantor shall notify such Person of the Secured Party’s security interest in such Collateral and, upon the Secured Party’s request, instruct them to hold all such Collateral for the Secured Party’s
account and subject to the Secured Party’s instructions. 
 7. Filing Costs. The Grantor shall pay the costs of, or
incidental to, all recordings or filings of all financing statements, including, without limitation, any filing expenses incurred by the Secured Party pursuant to Section 6. 

8. Schedules of Collateral. The Grantor shall furnish to the Secured Party from time to time statements and schedules further
identifying and describing the Collateral and such other reports in connection with the Collateral as the Secured Party may reasonably request, all in reasonable detail. 

9. Secured Party Appointed Attorney-in-Fact. The Grantor hereby irrevocably appoints the Secured Party as the Grantor’s
attorney-in-fact, with full authority in the place and stead of the Grantor and in the Grantor’s name, the Secured Party’s name or otherwise, 

 

 4 

 
from time to time following the occurrence and during the existence of an Event of Default, in the Secured Party’s discretion, to take any action and to execute any instrument which Secured
Party may deem necessary or advisable to accomplish the purposes of this Agreement, including, without limitation, to (a) obtain and adjust insurance required to be paid to the Secured Party pursuant to the Underwriting Agreement; (b) ask,
demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become due under or in respect of any of the Collateral; (c) receive, endorse, and collect any drafts or other instruments, documents
and chattel paper, in connection with clause (a) or (b) above; and (d) file any claims or take any action or institute any proceedings that the Secured Party may deem necessary or desirable for the collection of any of
the Collateral, or otherwise to enforce the rights of the Secured Party with respect to any of the Collateral. 
 10. Secured
Party May Perform. If the Grantor fails to perform any agreement contained herein, at any time after written notice from the Secured Party to Grantor of such failure, the Secured Party may perform, or cause performance of, such agreement, and
the expenses of the Secured Party incurred in connection therewith shall be added to the Liabilities and shall be payable by the Grantor within 15 days after demand therefor. 

11. Secured Party’s Duties. The powers conferred on the Secured Party hereunder are solely to protect its interest in the
Collateral and shall not impose any duty upon it to exercise any such powers. Except for the safe custody of any Collateral in its possession and the accounting for moneys actually received by it hereunder, the Secured Party shall not have any duty
as to any Collateral. The Secured Party shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which the Secured Party
accords its own property, it being understood that the Secured Party shall be under no obligation to take any necessary steps to preserve rights against prior parties or any other rights pertaining to any Collateral, but may do so at its option, and
all reasonable expenses incurred in connection therewith shall be for the sole account of the Grantor and shall be added to the Liabilities. 

12. Remedies. (a) If any Event of Default shall have occurred and be continuing: 

(i) The Secured Party shall have, in addition to other rights and remedies provided for herein or otherwise available to it, all the
rights and remedies of a secured party upon default under the UCC (whether or not the UCC applies to the affected Collateral) and further, the Secured Party may, without notice, demand or legal process of any kind (except as may be required by law),
all of which the Grantor waives, at any time or times, (x) enter the Grantor’s owned or leased premises and take physical possession of the Collateral and maintain such possession on the Grantor’s owned or leased premises, at no cost
to the Secured Party or remove the Collateral, or any part thereof, to such other place(s) as the Secured Party may desire, (y) require the Grantor to, and the Grantor hereby agrees that it will, at its expense and upon request of the Secured
Party, forthwith assemble all or any part of the Collateral as the Secured Party directs and make it available to the Secured Party at a place to be designated by the Secured Party that is reasonably convenient to the Secured Party and
(z) without notice except as specified below, sell, lease, assign, grant an option or options to purchase or otherwise dispose of the Collateral or any part thereof at public or private sale, at any exchange, broker’s board or at

  

 5 

 
any of the offices of the Secured Party or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Secured Party may deem commercially reasonable. The Grantor
agrees that, to the extent notice of sale shall be required by law, at least ten (10) days’ notice to the Grantor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable
notification. The Secured Party shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. The Secured Party may adjourn any public or private sale from time to time by announcement at the time and place
fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned; 
 (ii)
The Secured Party shall apply all cash proceeds received by the Secured Party in respect of any sale of, collection from, or other realization upon all or any part of the Collateral (after payment of all expenses incurred by the Secured Party in
connection with such sale, collection or realization), against all or any part of the Liabilities in such order as may be required by the Secured Party. Any surplus of such cash or cash proceeds held by the Secured Party and remaining after payment
in full of all the Liabilities shall be paid over to the Grantor or to whomsoever may be lawfully entitled to receive such surplus; 

(b) The Grantor waives all claims, damages and demands against the Secured Party arising out of the repossession, retention or sale of
any of the Collateral or any part or parts thereof, except any such claims, damages and awards arising out of the gross negligence or willful misconduct of the Secured Party, as the case may be, as determined in a final judgment of a court of
competent jurisdiction; and 
 (c) The rights and remedies provided under this Agreement are cumulative and may be exercised
singly or concurrently and are not exclusive of any rights and remedies provided by law or equity. 
 13. Exercise of
Remedies. In connection with the exercise of its remedies pursuant to Section 12, the Secured Party may (i) exchange, enforce, waive or release any portion of the Collateral and any other security for the Liabilities;
(ii) apply such Collateral or security and direct the order or manner of sale thereof as the Secured Party may determine from time to time; and (iii) settle, compromise, collect or otherwise liquidate any such Collateral or security in any
manner following the occurrence of an Event of Default, without affecting or impairing the Secured Party’s right to take any other further action with respect to any Collateral or security or any part thereof. 

14. Injunctive Relief. The Grantor recognizes that if the Grantor fails to perform, observe or discharge any of its obligations or
liabilities under this Agreement, any remedy of law may prove to be inadequate relief to the Secured Party; therefore, the Grantor agrees that the Secured Party, if the Secured Party so determines and requests, shall be entitled to temporary and
permanent injunctive relief in any such case without the necessity of proving actual damages. 
 15. Security Interest
Absolute. All rights of the Secured Party and security interests hereunder, and all obligations of the Grantor hereunder, shall be absolute and unconditional irrespective of: 

 

 6 

 (i) Any lack of validity or enforceability of the Underwriting Agreement or any other
agreement or instrument relating thereto; 
 (ii) Any change in the time, manner or place of payment of, or in any other term
of, all or any part of the Liabilities, or any other amendment or waiver of or any consent to any departure from the Underwriting Agreement; 

(iii) Any exchange, release or non-perfection of any other collateral, or any release or amendment or waiver of or consent to departure
from any guaranty, for all or any part of the Liabilities; or 
 (iv) any other circumstance which might otherwise constitute a
defense available to, or a discharge of, the Grantor in respect of the Liabilities or of this Agreement other than payment in full of the Liabilities (other than contingent and indemnification obligations for which no claim has been, or is
reasonably expected to be, made). 
 16. Waivers. The Grantor waives presentment and demand for payment of any of the
Liabilities, protest and notice of dishonor or Event of Default with respect to any of the Liabilities and all other notices to which the Grantor might otherwise be entitled except as otherwise expressly provided herein or in the Underwriting
Agreement. 
 17. Term. This Agreement shall remain in full force and effect until such time as no Bonds shall remain
outstanding, no obligations remain outstanding under any Bond and the Liabilities (other than contingent and indemnification obligations for which no claim has been, or is reasonably expected to be, made) have been fully paid in cash. Upon the
termination of this Agreement as provided above (other than as a result of the sale of the Collateral), Secured Party will release the security interest created hereunder. 

18. Definitions. The singular shall include the plural and vice versa and any gender shall include any other gender as the context
may require. 
 19. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Grantor
and the Secured Party, and their respective successors and assigns (including successors by way of merger, acquisition or similar event). The Grantor’s successors and assigns shall include, without limitation, a receiver, trustee or
debtor-in-possession of or for the Grantor. 
 20. GOVERNING LAW. ANY DISPUTE BETWEEN SECURED PARTY AND THE GRANTOR
ARISING OUT OF OR RELATED TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS AGREEMENT, AND WHETHER ARISING IN CONTRACT, TORT, EQUITY, OR OTHERWISE, SHALL BE RESOLVED IN ACCORDANCE WITH THE INTERNAL LAWS, AND NOT THE CONFLICTS OF
LAW PROVISIONS (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW), OF THE STATE OF NEW YORK. 
 21.
Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but, if any provision of this Agreement shall be held to be prohibited or invalid under
applicable law, such 
  

 7 

 
provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement.

 22. Notices. All notices and other communications required or desired to be served, given or delivered hereunder shall
be made in accordance with the applicable provisions contained in the Underwriting Agreement. 
 23. Amendments, Waivers and
Consents. No amendment or waiver of any provision of this Agreement nor consent to any departure by the Grantor herefrom, shall in any event be effective unless the same shall be in writing and signed by the Grantor and the Secured Party, and
then such amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 

24. Section Headings. The section headings herein are for convenience of reference only, and shall not affect in any way the
interpretation of any of the provisions hereof. 
 25. Execution in Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be an original, but all of which shall together constitute one and the same agreement. 

26. Merger. This Agreement represents the final agreement of the Grantor with respect to the matters contained herein and may not
be contradicted by evidence of prior or contemporaneous agreements, or subsequent oral agreements, between the Grantor and Secured Party. 

* * * * 
  

 8 

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

					
	GREAT LAKES DREDGE & DOCK CORPORATION
		
	By:	 	  

		 	Name:	 	Deborah A. Wensel
		 	Title:	 	 Senior Vice President, Chief

Financial Officer and Treasurer

[SIGNATURE PAGE TO SECURITY AGREEMENT (EQUIPMENT)] 

					
	 TRAVELERS CASUALTY AND SURETY

COMPANY

		
	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

	
	 TRAVELERS CASUALTY AND SURETY

COMPANY OF AMERICA

		
	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

[SIGNATURE PAGE TO SECURITY AGREEMENT (EQUIPMENT)] 

 GREAT LAKES DREDGE & DOCK CORPORATION 

SECURITY AGREEMENT 

Schedule I 
  

			
	 Name
	  	 Official No.

		
	 Dodge Island
	  	625348
	 Sugar Island
	  	606519

 Great Lakes Dredge & Dock
Corporation 
 Equipment Security Agreement 

Schedule I 

 GREAT LAKES DREDGE & DOCK CORPORATION 

SECURITY AGREEMENT 

Schedule II 
  

					
	 Name
	 	 Official No.
	 	 Location

			
	Dodge Island	 	625348	 	South Padre Island, TX
	Sugar Island	 	606519	 	Ensenada, Mexico

 Great Lakes
Dredge & Dock Corporation 
 Equipment Security Agreement 

Schedule II 

 GREAT LAKES DREDGE & DOCK CORPORATION 

SECURITY AGREEMENT 

Schedule III 
 The
Grantor has not used any trade names or fictitious names within the five-year period preceding the date hereof. However, please note that, effective on December 31, 1998, Great Lakes International, Inc., a Delaware corporation and a
wholly-owned subsidiary of the Grantor, was merged with and into the Grantor. 
 Great Lakes Dredge & Dock Corporation

 Equipment Security Agreement 

Schedule III 

 EXHIBIT D-2 

FORM OF 

SECOND AMENDED AND RESTATED SECURITY AGREEMENT (EQUIPMENT) 

This SECOND AMENDED AND RESTATED SECURITY AGREEMENT (EQUIPMENT) (this “Agreement”) is made and entered into as of
December 22, 2003 by GREAT LAKES DREDGE & DOCK COMPANY, a New Jersey corporation (the “Grantor”), in favor of TRAVELERS CASUALTY AND SURETY COMPANY, a Connecticut corporation (as assignee of 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) (“TCASC”) and TRAVELERS
CASUALTY AND SURETY COMPANY OF AMERICA, a Connecticut corporation (“Travelers America”, and together with TCASC, the “Secured Party”). 

RECITALS 

WHEREAS, the Grantor has previously entered into that certain Amended and Restated Security Agreement (Equipment) (the “Existing
Agreement”), dated as of August 19, 1998, in favor of and for the benefit of the Secured Party; 
 WHEREAS,
concurrently herewith the Grantor and the Secured Party are entering into that certain Third Amended and Restated Underwriting and Continuing Indemnity Agreement, dated as of even date herewith, which amends and restates that certain Second Amended
and Restated Underwriting and Continuing Indemnity Agreement, dated as of August 19, 1998, as amended, supplemented or otherwise modified from time to time (as it may be further amended, restated, supplemented or otherwise modified, the
“Underwriting Agreement”; capitalized terms defined therein and not otherwise defined herein being used herein as therein defined); 

WHEREAS, the Grantor and the Secured Party desire to amend and restate the Existing Agreement on the terms and conditions set forth in
this Agreement. 
 NOW, THEREFORE, in consideration of the premises set forth herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 1.
Defined Terms. Unless otherwise defined herein, terms defined in the Underwriting Agreement are used herein as therein defined, and the following terms shall have the following meanings (such meanings being equally applicable to both the
singular and the plural forms of the terms defined): 
 “Collateral” shall mean all property and rights in
property now owned or hereafter at any time acquired by the Grantor with respect to which a Lien is granted in favor of the Secured Party by the Grantor under this Agreement pursuant to Section 2. 

 “First Preferred Fleet Mortgage” shall mean that certain First Preferred
Fleet Mortgage of even date herewith executed and delivered by the Grantor in favor of the Secured Party, as such agreement may be amended, restated, supplemented, or otherwise modified from time to time. 

“Second Preferred Fleet Mortgage” shall mean that certain Second Preferred Fleet Mortgage of even date herewith executed
and delivered by the Grantor in favor of the Secured Party, as such agreement may be amended, restated, supplemented, or otherwise modified from time to time. 

“UCC” shall mean the Uniform Commercial Code, as the same may, from time to time, be in effect in the State of New York;
provided, however, in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of the Secured Party’s security interest in any Collateral is governed by the Uniform Commercial
Code as in effect in a jurisdiction other than the State of New York, the term “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such attachment,
perfection or priority and for purposes of definitions related to such provisions. 
 “Vessels” shall mean,
collectively, those “Vessels” from time to time subject to and as defined in the First Preferred Fleet Mortgage or the Second Preferred Fleet Mortgage (including, without limitation, those Vessels described in Schedule I hereto).

 2. Grant of Security. To secure the prompt and complete payment, observance and performance when due of (a) the
Grantor’s obligations and liabilities under the Underwriting Agreement and the other Underwriting Documents, including, without limitation, all “Loss” under and as defined in the Underwriting Agreement and (b) the Grantor’s
obligations and liabilities under this Agreement, any other agreement, document or instrument executed by the Grantor pursuant to or in connection with such agreements (all such obligations and liabilities of the Grantor now or hereafter existing
being hereinafter referred to as the “Liabilities”), the Grantor reaffirms its pledge and grant of a security interest pursuant to the Existing Agreement and hereby presently pledges to the Secured Party, and grants to the Secured
Party, a security interest in all of the Grantor’s right, title and interest in and to the following, whether now owned or existing or hereafter arising or acquired and wheresoever located: all Vessels and all equipment (including, without
limitation, all “equipment” as such term is defined in Section 9-102(a)(33) of the UCC), whether now owned or hereafter acquired or arising, which is from time to time attached to, located on, or related to, one or more of the
Vessels, including, without limitation, all boilers, engines, machinery, masts, spars, sails, boats, anchors, cables, chains, rigging, tackle, apparel, cranes, drills, excavators, shovels, construction equipment, furniture, furnishings, appliances,
tools, tooling, and all other goods of every type and description (other than inventory), in each instance whether now owned or hereafter acquired by the Grantor and wherever located, together, in each instance, with all accessions and additions to
any of the foregoing, substitutions therefor, earnings and other intangibles with respect thereto, replacements, proceeds and products thereof (including, without limitation, all charter and freight hire proceeds, insurance proceeds and requisition
proceeds) (collectively, the “Equipment”), and all books and records with respect thereto. 
  

 2 

 3. Grantor Remains Liable. Anything herein to the contrary notwithstanding,
(a) the Grantor shall remain solely liable under any contracts and agreements related to the Collateral to perform all of its duties and obligations thereunder to the same extent as if this Agreement had not been executed, (b) the exercise
by the Secured Party of any of its rights hereunder shall not release the Grantor from any of its duties or obligations under the contracts and agreements related to the Collateral, and (c) the Secured Party shall not have any responsibility,
obligation or liability under the contracts and agreements related to the Collateral by reason of this Agreement, nor shall the Secured Party be required or obligated, in any manner, to (i) perform or fulfill any of the obligations or duties of
the Grantor thereunder, (ii) make any payment, or make any inquiry as to the nature or sufficiency of any payment received by the Grantor or the sufficiency of any performance by any party under any such contract or agreement or
(iii) present or file any claim, or take any action to collect or enforce any claim for payment assigned hereunder. 
 4.
Representations and Warranties. The Grantor represents and warrants, as of the date of this Agreement and on the date of the issuance of any Bond (unless such representation speaks only as of the date hereof and except as otherwise permitted
by this Agreement or the Underwriting Agreement) until the termination of this Agreement pursuant to Section 17, that: 

(a) The correct corporate name of the Grantor is set forth in the first paragraph of this Agreement. The chief place of business and
chief executive office of the Grantor are located at 2122 York Road, Oak Brook, Illinois 60523. All records included within or otherwise concerning the Collateral are located at such addresses or at the locations of the Equipment described and
permitted herein. 
 (b) On the date hereof, the Grantor’s Equipment (other than Equipment in transit or out for repair) is
kept at the locations listed on Schedule II hereto. 
 (c) The Grantor has exclusive possession and control of such
Equipment, except for such Equipment which is leased to third parties, or is otherwise in possession of third parties, in a manner not prohibited by the Underwriting Agreement. 

(d) The Grantor is the legal and beneficial owner of the Collateral free and clear of all Liens, except for Liens permitted by the
Underwriting Agreement (“Permitted Liens”) and has rights in and the power to transfer each item of Collateral. 

(e) The Grantor conducts business under its legal corporate name and, within the five-year period preceding the date hereof, the Grantor
has not used any trade names or fictitious names, except as set forth on Schedule III. 
 (f) This Agreement creates in
favor of the Secured Party a legal, valid and enforceable security interest in all Collateral in which a security interest may be created under the UCC (hereinafter, the “UCC Collateral”). When financing statements against the
Grantor have been properly presented for filing and the filing fee has been tendered or have been accepted by the filing officer in the appropriate public recording offices in the Grantor’s jurisdiction of incorporation, the Secured Party will
have a fully perfected first priority lien on, 
  

 3 

 
and security interest in, the UCC Collateral in which a security interest may be perfected by the filing of UCC financing statements, subject only to Permitted Liens. 

(g) No authorization, approval or other action by, and no notice to or filing with, any governmental authority or regulatory body that
has not already been taken or made and which is in full force and effect, is required (i) for the grant by the Grantor of the security interest in the Collateral granted hereby; (ii) for the execution, delivery or performance of this
Agreement by the Grantor; or (iii) for the exercise by the Secured Party of any of its other rights or remedies hereunder. 

5. Perfection and Maintenance of Security Interest and Lien. The Grantor agrees that until such time as no Bonds shall remain
outstanding, no obligations remain outstanding under any Bond and all of the Liabilities (other than contingent and indemnification obligations for which no claim has been, or is reasonably expected to be, made) have been fully satisfied, this
Agreement and the security interests and Liens created hereby shall continue in full force and effect. The Grantor shall perform any and all steps reasonably requested by the Secured Party to perfect, maintain and protect the Secured Party’s
security interests in and Liens on and against the Collateral granted or purported to be granted hereby or to enable the Secured Party to exercise its rights and remedies hereunder with respect to any Collateral, including, without limitation,
executing and filing financing or continuation statements, or amendments thereof, in form and substance reasonably satisfactory to the Secured Party and executing and delivering all further instruments and documents, and taking all further action,
as the Secured Party may reasonably request. 
 6. Financing Statements. To the extent permitted by applicable law, the
Grantor hereby authorizes the Secured Party to file financing or continuation statements and amendments thereto disclosing the security interest granted to the Secured Party under this Agreement without the Grantor’s signature appearing
thereon, and the Secured Party agrees to notify the Grantor when such a filing has been made. If any Collateral is in the possession or control of any third party (including, without limitation, any bailee or warehouseman or other third party), upon
the Secured Party’s request, Grantor shall notify such Person of the Secured Party’s security interest in such Collateral and, upon the Secured Party’s request, instruct them to hold all such Collateral for the Secured Party’s
account and subject to the Secured Party’s instructions. 
 7. Filing Costs. The Grantor shall pay the costs of, or
incidental to, all recordings or filings of all financing statements, including, without limitation, any filing expenses incurred by the Secured Party pursuant to Section 6. 

8. Schedules of Collateral. The Grantor shall furnish to the Secured Party from time to time statements and schedules further
identifying and describing the Collateral and such other reports in connection with the Collateral as the Secured Party may reasonably request, all in reasonable detail. 

9. Secured Party Appointed Attorney-in-Fact. The Grantor hereby irrevocably appoints the Secured Party as the Grantor’s
attorney-in-fact, with full authority in the place and stead of the Grantor and in the Grantor’s name, the Secured Party’s name or otherwise, 

 

 4 

 
from time to time following the occurrence and during the existence of an Event of Default, in the Secured Party’s discretion, to take any action and to execute any instrument which Secured
Party may deem necessary or advisable to accomplish the purposes of this Agreement, including, without limitation, to (a) obtain and adjust insurance required to be paid to the Secured Party pursuant to the Underwriting Agreement; (b) ask,
demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become due under or in respect of any of the Collateral; (c) receive, endorse, and collect any drafts or other instruments, documents
and chattel paper, in connection with clause (a) or (b) above; and (d) file any claims or take any action or institute any proceedings that the Secured Party may deem necessary or desirable for the collection of any of
the Collateral, or otherwise to enforce the rights of the Secured Party with respect to any of the Collateral. 
 10. Secured
Party May Perform. If the Grantor fails to perform any agreement contained herein, at any time after written notice from the Secured Party to Grantor of such failure, the Secured Party may perform, or cause performance of, such agreement, and
the expenses of the Secured Party incurred in connection therewith shall be added to the Liabilities and shall be payable by the Grantor within 15 days after demand therefor. 

11. Secured Party’s Duties. The powers conferred on the Secured Party hereunder are solely to protect its interest in the
Collateral and shall not impose any duty upon it to exercise any such powers. Except for the safe custody of any Collateral in its possession and the accounting for moneys actually received by it hereunder, the Secured Party shall not have any duty
as to any Collateral. The Secured Party shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which the Secured Party
accords its own property, it being understood that the Secured Party shall be under no obligation to take any necessary steps to preserve rights against prior parties or any other rights pertaining to any Collateral, but may do so at its option, and
all reasonable expenses incurred in connection therewith shall be for the sole account of the Grantor and shall be added to the Liabilities. 

12. Remedies. (a) If any Event of Default shall have occurred and be continuing: 

(i) The Secured Party shall have, in addition to other rights and remedies provided for herein or otherwise available to it, all the
rights and remedies of a secured party upon default under the UCC (whether or not the UCC applies to the affected Collateral) and further, the Secured Party may, without notice, demand or legal process of any kind (except as may be required by law),
all of which the Grantor waives, at any time or times, (x) enter the Grantor’s owned or leased premises and take physical possession of the Collateral and maintain such possession on the Grantor’s owned or leased premises, at no cost
to the Secured Party or remove the Collateral, or any part thereof, to such other place(s) as the Secured Party may desire, (y) require the Grantor to, and the Grantor hereby agrees that it will, at its expense and upon request of the Secured
Party, forthwith assemble all or any part of the Collateral as the Secured Party directs and make it available to the Secured Party at a place to be designated by the Secured Party that is reasonably convenient to the Secured Party and
(z) without notice except as specified below, sell, lease, assign, grant an option or options to purchase or otherwise dispose of the Collateral or any part thereof at public or private sale, at any exchange, broker’s board or at

  

 5 

 
any of the offices of the Secured Party or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Secured Party may deem commercially reasonable. The Grantor
agrees that, to the extent notice of sale shall be required by law, at least ten (10) days’ notice to the Grantor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable
notification. The Secured Party shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. The Secured Party may adjourn any public or private sale from time to time by announcement at the time and place
fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned; 
 (ii)
The Secured Party shall apply all cash proceeds received by the Secured Party in respect of any sale of, collection from, or other realization upon all or any part of the Collateral (after payment of all expenses incurred by the Secured Party in
connection with such sale, collection or realization), against all or any part of the Liabilities in such order as may be required by the Secured Party. Any surplus of such cash or cash proceeds held by the Secured Party and remaining after payment
in full of all the Liabilities shall be paid over to the Grantor or to whomsoever may be lawfully entitled to receive such surplus; 

(b) The Grantor waives all claims, damages and demands against the Secured Party arising out of the repossession, retention or sale of
any of the Collateral or any part or parts thereof, except any such claims, damages and awards arising out of the gross negligence or willful misconduct of the Secured Party, as the case may be, as determined in a final judgment of a court of
competent jurisdiction; and 
 (c) The rights and remedies provided under this Agreement are cumulative and may be exercised
singly or concurrently and are not exclusive of any rights and remedies provided by law or equity. 
 13. Exercise of
Remedies. In connection with the exercise of its remedies pursuant to Section 12, the Secured Party may (i) exchange, enforce, waive or release any portion of the Collateral and any other security for the Liabilities;
(ii) apply such Collateral or security and direct the order or manner of sale thereof as the Secured Party may determine from time to time; and (iii) settle, compromise, collect or otherwise liquidate any such Collateral or security in any
manner following the occurrence of an Event of Default, without affecting or impairing the Secured Party’s right to take any other further action with respect to any Collateral or security or any part thereof. 

14. Injunctive Relief. The Grantor recognizes that if the Grantor fails to perform, observe or discharge any of its obligations or
liabilities under this Agreement, any remedy of law may prove to be inadequate relief to the Secured Party; therefore, the Grantor agrees that the Secured Party, if the Secured Party so determines and requests, shall be entitled to temporary and
permanent injunctive relief in any such case without the necessity of proving actual damages. 
 15. Security Interest
Absolute. All rights of the Secured Party and security interests hereunder, and all obligations of the Grantor hereunder, shall be absolute and unconditional irrespective of: 

 

 6 

 (i) Any lack of validity or enforceability of the Underwriting Agreement or any other
agreement or instrument relating thereto; 
 (ii) Any change in the time, manner or place of payment of, or in any other term
of, all or any part of the Liabilities, or any other amendment or waiver of or any consent to any departure from the Underwriting Agreement; 

(iii) Any exchange, release or non-perfection of any other collateral, or any release or amendment or waiver of or consent to departure
from any guaranty, for all or any part of the Liabilities; or 
 (iv) any other circumstance which might otherwise constitute a
defense available to, or a discharge of, the Grantor in respect of the Liabilities or of this Agreement other than payment in full of the Liabilities (other than contingent and indemnification obligations for which no claim has been, or is
reasonably expected to be, made). 
 16. Waivers. The Grantor waives presentment and demand for payment of any of the
Liabilities, protest and notice of dishonor or Event of Default with respect to any of the Liabilities and all other notices to which the Grantor might otherwise be entitled except as otherwise expressly provided herein or in the Underwriting
Agreement. 
 17. Term. This Agreement shall remain in full force and effect until such time as no Bonds shall remain
outstanding, no obligations remain outstanding under any Bond and the Liabilities (other than contingent and indemnification obligations for which no claim has been, or is reasonably expected to be, made) have been fully paid in cash. Upon the
termination of this Agreement as provided above (other than as a result of the sale of the Collateral), Secured Party will release the security interest created hereunder. 

18. Definitions. The singular shall include the plural and vice versa and any gender shall include any other gender as the context
may require. 
 19. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Grantor
and the Secured Party, and their respective successors and assigns (including successors by way of merger, acquisition or similar event). The Grantor’s successors and assigns shall include, without limitation, a receiver, trustee or
debtor-in-possession of or for the Grantor. 
 20. GOVERNING LAW. ANY DISPUTE BETWEEN SECURED PARTY AND THE GRANTOR
ARISING OUT OF OR RELATED TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS AGREEMENT, AND WHETHER ARISING IN CONTRACT, TORT, EQUITY, OR OTHERWISE, SHALL BE RESOLVED IN ACCORDANCE WITH THE INTERNAL LAWS, AND NOT THE CONFLICTS OF
LAW PROVISIONS (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW), OF THE STATE OF NEW YORK. 
 21.
Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but, if any provision of this Agreement shall be held to be prohibited or invalid under
applicable law, such 
  

 7 

 
provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement.

 22. Notices. All notices and other communications required or desired to be served, given or delivered hereunder shall
be made in accordance with the applicable provisions contained in the Underwriting Agreement. 
 23. Amendments, Waivers and
Consents. No amendment or waiver of any provision of this Agreement nor consent to any departure by the Grantor herefrom, shall in any event be effective unless the same shall be in writing and signed by the Grantor and the Secured Party, and
then such amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 

24. Section Headings. The section headings herein are for convenience of reference only, and shall not affect in any way the
interpretation of any of the provisions hereof. 
 25. Execution in Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be an original, but all of which shall together constitute one and the same agreement. 

26. Merger. This Agreement represents the final agreement of the Grantor with respect to the matters contained herein and may not
be contradicted by evidence of prior or contemporaneous agreements, or subsequent oral agreements, between the Grantor and Secured Party. 

27. Amendment and Restatement. Effective as of the date this Agreement is executed, (a) this Agreement shall amend and
restate in its entirety the Existing Agreement, and (b) each reference to the Existing Agreement in any of the Underwriting Documents or any other document, instrument or agreement delivered in connection therewith shall mean and be a reference
to this Agreement. 
 28. Reaffirmation and Restatement. This Agreement constitutes an amendment and restatement of the
Existing Agreement and the Debt secured by the Existing Agreement is continuing Debt. Nothing herein shall be deemed to constitute a payment, settlement or novation of the Debt secured by the Existing Agreement, or to release or otherwise adversely
affect any Lien securing such Debt or any rights the Secured Party has against any guarantor, surety or other party primarily or secondarily liable for such Debt. 

* * * * 
  

 8 

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

					
	 GREAT LAKES DREDGE & DOCK

COMPANY

		
	By:	 	  

		 	Name:	 	Deborah A. Wensel
		 	Title:	 	 Senior Vice President, Chief

Financial Officer and Treasurer

[SIGNATURE PAGE TO SECURITY AGREEMENT (EQUIPMENT)] 

					
	 TRAVELERS CASUALTY AND SURETY

COMPANY

		
	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

	
	 TRAVELERS CASUALTY AND SURETY

COMPANY OF AMERICA

		
	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

[SIGNATURE PAGE TO SECURITY AGREEMENT (EQUIPMENT)] 

 GREAT LAKES DREDGE & DOCK COMPANY 

SECURITY AGREEMENT 

Schedule I 
  

					
	 Name
	  	 Official No.
	  	 
	Alaska	  	283416	  	
	Illinois	  	580274	  	
	California	  	292779	  	
	G. L. 51	  	288765	  	
	G.L. 54	  	560225	  	
	Manhattan Island	  	583706	  	
	G. L. 32	  	609828	  	
	G. L. 64	  	922737	  	
	G. L. 230	  	695575	  	
	G. L. 231	  	695576	  	
	Carolina	  	552707	  	
	G. L. 55	  	1101368	  	
	No. 53	  	566581	  	
	Padre Island	  	639291	  	
	Unloader No. 2	  	667652	  	
	G. L. 139	  	605280	  	
	Apache	  	668642	  	
	Melvin E. Lemmerhirt	  	549349	  	
	G. L. 33	  	612272	  	
	G. L. 63	  	922736	  	
	G. L. 232	  	695577	  	
	G. L. 177	  	632371	  	
	Erin C.	  	540928	  	
	Reggie G.	  	584849	  	

 Great Lakes Dredge & Dock Company 

Second Amended and Restated Security Agreement (Equipment) 

Schedule I 

 GREAT LAKES DREDGE & DOCK COMPANY 

SECURITY AGREEMENT 

Schedule II 
  

							
	 Name
	  	Official No.	  	 Location
	  	 
	Alaska	  	283416	  	Fire Island, NY	  	
	Illinois	  	580274	  	Staten Island, NY	  	
	California	  	292779	  	Venice, LA	  	
	G. L. 51	  	288765	  	en route to Providence,
RI1	  	
	G.L. 54	  	560225	  	Chestertown, MD	  	
	Manhattan Island	  	583706	  	Wilmington, NC	  	
	G. L. 32	  	609828	  	Staten Island, NY	  	
	G. L. 64	  	922737	  	New Haven, CT	  	
	G. L. 230	  	695575	  	Providence, RI	  	
	G. L. 231	  	695576	  	Providence, RI	  	
	Carolina	  	552707	  	Hidd, Bahrain	  	
	G. L. 55	  	1101368	  	Bath, ME	  	
	No. 53	  	566581	  	New Haven, CT	  	
	Padre Island	  	639291	  	Wilmington, NC	  	
	Unloader No. 2	  	667652	  	Baltimore, MD	  	
	G. L. 139	  	605280	  	Baltimore, MD	  	
	Apache	  	668642	  	Staten Island, NY	  	
	Melvin E. Lemmerhirt	  	549349	  	New Haven, CT	  	
	G. L. 33	  	612272	  	Staten Island, NY	  	
	G. L. 63	  	922736	  	Bath, ME	  	
	G. L. 232	  	695577	  	Providence, RI	  	
	G. L. 177	  	632371	  	Providence, RI	  	
	Erin C.	  	540928	  	Staten Island, NY	  	
	Reggie G.	  	584849	  	Green Cove Springs, FL	  	

  
  

	1
	 As of December 16, 2003. 

Great Lakes Dredge & Dock Company 

Second Amended and Restated Security Agreement (Equipment) 

Schedule II 

 GREAT LAKES DREDGE & DOCK COMPANY 

SECURITY AGREEMENT 

Schedule III 
 The
Grantor has not used any trade names or fictitious names within the five-year period preceding the date hereof. However, please note the following: 
  

	 	1.	On December 31, 2001, Gates Construction Corp., a New Jersey corporation and a wholly-owned subsidiary of Grantor, was dissolved. 

 

	 	2.	Effective on December 31, 2002, North American Trailing Company, a Delaware corporation and a wholly-owned subsidiary of Grantor, was merged with and into Grantor.

  

	 	3.	Effective on November 25, 2002, NATCO Dredging Limited Partnership, a Delaware limited partnership of which Grantor was General Partner, was dissolved.

 Great Lakes Dredge & Dock Company 

Second Amended and Restated Security Agreement (Equipment) 

Schedule III 

 EXHIBIT E-1 

FORM OF 

FIRST PREFERRED FLEET MORTGAGE 

Given By 

GREAT LAKES DREDGE & DOCK COMPANY 

As Owner 

In Favor Of 

TRAVELERS CASUALTY AND SURETY COMPANY 

And 

TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA 

As Mortgagees 

On the United States Flag Vessels 

Named Herein 

 SYNOPSIS OF MORTGAGE 

 

					
	 	  	 VESSEL NAME
	  	 OFFICIAL NUMBER

	 Vessels Subject
 to Instrument

	  	 CAROLINA
 G.L. 55

NO. 53
 PADRE ISLAND

UNLOADER # 2
 G.L. 139

APACHE
 MELVIN E. LEMMERHIRT

G.L. 33
 G.L. 63

G.L. 232
 G.L. 177

ERIN C.
 REGGIE G
	  	 552707

1101368
 566581

 639291

667652

605280

668642

549349

612272

922736

695577

632371

540928

584849

			
	Type of Instrument:	  	First Preferred Fleet Mortgage	  	
			
	Date of Instrument:	  	December 22, 2003	  	
			
	Name of Owner:	  	Great Lakes Dredge & Dock Company	  	
			
	(Percentage Owned):	  	100%	  	
			
	Address of Owner	  	 c/o Great Lakes Dredge & Dock Corporation

2122 York Road
 Oak Brook, IL
60523
	  	
			
	Name of Mortgagees:	  	Travelers Casualty and Surety Company and Travelers Casualty and Surety Company of America	  	
			
	Address of Mortgagee:	  	 One Tower Square, 5PB

Hartford, CT 06183
	  	
			
	Total Amount of Mortgage	  	 One Hundred Twenty-Five

Million United States Dollars
 ($125,000,000)
plus interest,
 expenses and fees
	  	

 FIRST PREFERRED FLEET MORTGAGE 

THIS FIRST PREFERRED FLEET MORTGAGE is made and dated as of December 22, 2003 (hereinafter the “Mortgage”) by GREAT
LAKES DREDGE & DOCK COMPANY, a New Jersey corporation, with its address c/o Great Lakes Dredge & Dock Corporation, 2122 York Road, Oak Brook, Illinois 60523 (the “Mortgagor”), to TRAVELERS CASUALTY AND SURETY
COMPANY, a Connecticut corporation (“TCASC”), and TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA, a Connecticut corporation (“Travelers America”, and together with TCASC, “Travelers”) each having
their address at One Tower Square, 5PB, Hartford, Connecticut 06183 (collectively, the “Mortgagee”, each holding an individual interest as a joint tenant in the vessels mortgaged). 

WHEREAS, the Mortgagor is the sole owner of the vessels hereinafter identified as the “Vessels”, which vessels have been
duly documented in the name of the Mortgagor under the laws of the United States; 
 WHEREAS, the Mortgagor, Great Lakes
Dredge & Dock Corporation, a Delaware corporation (Mortgagor’s direct parent company) (the “Parent”), various affiliates of the Mortgagor, and the Mortgagee are parties to that certain Third Amended and Restated Underwriting
and Continuing Indemnity Agreement dated as of December 22, 2003 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Bonding Agreement”), which Bonding Agreement amended and
restated in its entirety that certain Second Amended and Restated Underwriting and Continuing Indemnity Agreement dated as of August 19, 1998 among, inter alia, the Mortgagor and the Mortgagee (the “Second Amendment and
Restatement”), which Second Amendment and Restatement amended and restated in its entirety that certain First Amended and Restated Underwriting and Continuing Indemnity Agreement dated as of September 24, 1997 among, inter alia, the
Mortgagor and the Mortgagee; 
 WHEREAS, pursuant to the Bonding Agreement, the Mortgagor and such affiliates have incurred or
will incur obligations (monetary or otherwise) to the Mortgagee (which obligations and all other payment and performance obligations of the Mortgagor under this Mortgage are hereinafter referred to collectively as the “Secured
Obligations”); 
 WHEREAS, the Mortgagor previously agreed to secure the Secured Obligations to the Mortgagee under the
Bonding Agreement with, among other things, that certain First Preferred Fleet Mortgage (the “Original Mortgage”) dated as of September 24, 1997 by the Mortgagor to the Mortgagee; 

WHEREAS, the Mortgagor has agreed to replace the Original Mortgage and secure the Secured Obligations with, among other things, first
preferred ship mortgages on certain vessels owned by the Mortgagor and documented under the laws of the United States in the maximum principal amount of U.S. $125,000,000, plus interest, expenses and fees; 

 WHEREAS, the Mortgagor has agreed to secure certain obligations to Bank of America N.A., as
Administrative Agent for certain financial institutions (the “Lenders”) with second preferred ship mortgages on the Vessels which are the subject of this Mortgage; 

WHEREAS, to deal with, among other things, the respective rights of Mortgagee and the Administrative Agent for the benefit of the
Lenders, with respect to the Vessels and the proceeds thereof, the Mortgagee has entered into that certain Intercreditor Agreement dated as of the date hereof by and among the Parent, certain subsidiaries of the Parent (including the Mortgagor) from
time to time party thereto, the Mortgagee and Travelers (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Intercreditor Agreement”); 

WHEREAS, the Bonding Agreement (excluding Exhibits and Schedules) is attached to this Mortgage as Exhibit A hereto; and

 WHEREAS, the Intercreditor Agreement (excluding Exhibits and Schedules) is attached to this Mortgage as Exhibit B
hereto; 
 NOW THEREFORE, THIS MORTGAGE WITNESSETH that in consideration of the premises and of the additional covenants herein
contained and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, and as security only for the performance and payment of the Secured Obligations when, if and as due, and all other sums which may be
secured by this Mortgage, the Mortgagor has granted, conveyed, mortgaged, pledged, granted a security interest in, confirmed, transferred and set over, and by these presents does grant, convey, mortgage, pledge, grant a security interest in,
confirm, assign, transfer and set over unto the Mortgagee the whole of the Vessels identified in Schedule A attached hereto and incorporated herein, and each of them, together with all of their boilers, engines, machinery, masts, spars,
sails, rigging, boats, anchors, cables, chains, tackle, apparel, furniture, fittings, cranes, drills, excavators, shovels, construction and other equipment and all other appurtenances thereunto appertaining or belonging, whether now or hereafter
acquired, and also any and all additions, improvements and replacements hereafter made in or to said Vessels, or any of them, or in or to their equipment and appurtenances aforesaid (each a “Vessel” and, collectively, the
“Vessels”), as well as the proceeds of the Vessels; 
 TO HAVE AND TO HOLD all and singular the foregoing
mortgaged and described property unto the Mortgagee and its successors and assigns (including successors by way of merger, acquisition or similar event), to its and its successors’ and assigns’ own use, benefit and behoof forever;

 PROVIDED, HOWEVER, and these presents are upon the condition that the Mortgagee agrees that this Mortgage and the estate and
rights hereby granted shall not become effective until the due filing of this Mortgage in accordance with the provisions of Chapter 313 of Title 46, United States Code, as amended (“Chapter 313”) and shall cease, determine and
terminate upon payment and performance in full of all the Secured Obligations, otherwise to remain in full force and effect. 
  

 - 2 - 

 IT IS HEREBY COVENANTED, DECLARED AND AGREED that the property above described is to be held
subject to the further agreements and conditions hereinafter set forth. 
 ARTICLE I 

REPRESENTATIONS, WARRANTIES AND 

COVENANTS OF THE MORTGAGOR 

The Mortgagor represents, warrants, covenants and agrees with Mortgagee as follows: 

SECTION l. The Mortgagor hereby agrees with the Mortgagee duly and promptly to perform and to observe the Secured Obligations.

 SECTION 2. The Mortgagor will cause this Mortgage to be duly filed in accordance with the provisions of Chapter 313 and will
otherwise cause compliance with and satisfaction of all of the provisions of Chapter 313 in order to establish and maintain this Mortgage as a first preferred mortgage lien thereunder upon the Vessels and upon all renewals, replacements,
supplements, amendments and improvements made in or to the same for the amount indicated in Section 1 of Article III hereof. The Mortgagor shall promptly pay and discharge all United States Coast Guard fees and expenses in
connection with the recordation of this Mortgage and any such renewals, replacements, supplements, amendments and improvements. 

SECTION 3. In the event that this Mortgage or the Secured Obligations, or any provision hereof or thereof, shall be deemed invalidated in
whole or in part by reason of any present or future law or any decision of any authoritative court, or if the documents at any time held by the Mortgagee shall be deemed by the Mortgagee for any reason insufficient to carry out the true intent and
spirit of this Mortgage, or the Secured Obligations, then, from time to time, the Mortgagor will execute, on its own behalf such other and further assurances and documents as in the reasonable opinion of the Mortgagee may be required more
effectively to subject the Vessels to the terms and provisions of this Mortgage, including the payment of all sums required to be paid under the Secured Obligations hereby secured. 

SECTION 4. (a) The Mortgagor shall place a properly certified copy of this Mortgage on board each Vessel with its papers and will cause a
notice, reading as follows (or containing such additional information relating to any permitted mortgage that is placed on a Vessel as may be approved by the Mortgagor) printed in plain type of such size that the paragraph of reading matter shall
cover a space not less than six inches wide by nine inches high, and framed, to be placed and kept prominently exhibited in the chart room and in the master’s cabin of each of the Vessels if such room and cabin are contained in the Vessel and,
if not, where such notices customarily are kept for vessels of the type of the Vessel: 
  

 - 3 - 

 “NOTICE OF SHIP MORTGAGE 

This vessel is owned by Great Lakes Dredge & Dock Company, a New Jersey corporation, and is covered by a First
Preferred Fleet Mortgage in favor of Travelers Casualty and Surety Company and Travelers Casualty and Surety Company of America, under authority of Chapter 313 of Title 46 of the United States Code, as amended. Under the terms of said Mortgage,
neither the owner, the master or agent of this vessel nor any other person has any right, power or authority to create, incur, or permit to be placed or imposed upon this vessel any lien whatsoever, other than liens for wages of a stevedore when
employed directly by a person listed in 46 U.S.C. 31341, for wages of the crew in respect of this vessel (including wages of the master to the extent provided by 46 U.S.C. 11112), general average or for salvage (including contract salvage), liens
fully covered by insurance and any deductible applicable thereto, liens permitted by Section 6.11 of the Bonding Agreement or, to the extent they are liens subordinate to the liens of the said Mortgage, certain liens in favor of Bank of
America N.A., as Administrative Agent, and other liens incident to current operations or for repairs.” 
 (b) The Mortgagor
will not create, incur, permit to be placed or imposed upon or permit to exist upon any of the Vessels or any of the proceeds of the Vessels or sums due or to become due in respect of the Vessels or in respect of insurance thereon any lien
whatsoever, other than liens contemplated by the aforesaid notice. In due course and in any event within thirty (30) days after the same becomes due and payable, the Mortgagor shall pay or cause to be discharged or make adequate provision for
the satisfaction or discharge of all material claims or demands with respect to the Vessels, unless such claims or demands are being contested in good faith. 

SECTION 5. (a) The Mortgagor will not transfer or change the flag of any of the Vessels without the written consent of the Mortgagee
first had and obtained, and any such written consent to any one transfer or change of flag shall not be construed to be a waiver of this provision with respect to any subsequent proposed transfer or change of flag. 

(b) The Mortgagor will not cause or permit any of the Vessels to be operated in any manner contrary to law and the Mortgagor will not
engage in any unlawful trade or violate any law or expose any of the Vessels to penalty or forfeiture, except where any such operation, engagement, violation or exposure could not reasonably be expected to have a Material Adverse Change, and will
not do, or suffer or permit to be done, anything which can or may injuriously affect in any material respect the registration, documentation, or trade endorsement of a Vessel under the laws and regulations of the United States. 

(c) Without limiting in any way the right of the Mortgagee to decline to grant any written consent described in Section 5(a)
or to condition any such written consent on other conditions, it is expressly understood and agreed that the Mortgagee shall not grant any such written consent unless either: (i) the Mortgagee is satisfied that all actions necessary or
desirable have been taken so that after giving effect to the proposed transfer or change the Mortgagee will have a valid and enforceable first lien on the Vessels which are the subject hereof providing

  

 - 4 - 

 
rights (including practically realizable enforcement rights) and benefits to the Mortgagee with respect to such Vessels at least as favorable to the Mortgagee as those granted to the Mortgagee
with respect thereto by this Mortgage or (ii) the Mortgagor substitutes for such Vessels as collateral under this Mortgage other vessels owned by the Mortgagor (including all appurtenances thereunto appertaining or belonging and any and all
additions, improvements and replacements thereto) reasonably acceptable to the Mortgagee having an orderly liquidation value reasonably equal to or greater than the then orderly liquidation value of such Vessels (or such lesser orderly liquidation
value as the Mortgagee may find acceptable). 
 SECTION 6. (a) On and after the date of this Mortgage the Mortgagor will cause
to be carried and maintained in respect of the Vessels hull and machinery (“H&M”), general liability (“GL”) and protection and indemnity (“P&I”) insurance in such amounts and with such
insurance companies, underwriters, protection and indemnity associations or clubs as required by the Bonding Agreement. In the event that the Mortgagor fails to obtain or maintain any insurance required by the terms of this Mortgage or the Bonding
Agreement, the Mortgagee shall be hereby authorized by the Mortgagor to procure such insurance and all premiums and other amounts incurred or expended by the Mortgagee in procuring such insurance shall constitute additional Secured Obligations
secured by this Mortgage. The Mortgagor will cause all policies and certificates of entry with respect to H&M insurance required hereby to name the Mortgagee as an additional insured and contain a loss payable clause which, by language
reasonably acceptable to the Mortgagee, shall provide for payment to the Mortgagee or its order. The Mortgagor shall cause all policies of GL insurance to name the Mortgagee as an additional insured and shall either cause all policies of P&I
insurance to name the Mortgagee as an additional insured or shall otherwise cause the interest of the Mortgagee to be noted with respect to such policies of P&I insurance, subject to the remaining provisions of this Section 6.

 (b) In the event of an actual, constructive or compromised total loss of any Vessel, such loss shall not be adjusted or
compromised without the prior written consent of the Mortgagee, and all insurance or other payments for such shall be paid to the Mortgagee and applied by the Mortgagee as follows: first, to any costs or expenses of the Mortgagee in connection with
collecting such payment; second, to the payment of the Secured Obligations; third, to the payment of all other secured indebtedness, if any; and fourth, any surplus thereafter remaining, to the Mortgagor, its successors and assigns or to whomever
may be lawfully entitled to receive the same. 
 (c) In the event that any claim or lien is asserted against any Vessel for
loss, damage or expense which is covered by insurance required hereunder, and it is necessary for the Mortgagor to obtain a bond or supply other security to prevent arrest of the Vessel or to release the Vessel from arrest on account of such claim
or lien, the Mortgagee, on request of the Mortgagor or its agent, may, in the sole discretion of the Mortgagee, assign to any person, firm or corporation executing a surety or guarantee bond or other agreement to save or release the Vessel from such
arrest, all right, title and interest of the Mortgagee in and to said insurance covering said loss, damage or expense, as collateral security to indemnify against liability under said bond or other agreement. In any such event, Mortgagor shall
promptly notify Mortgagee in writing of any such threatened arrest and, within thirty (30) days, cause such Vessel to be released by posting security or otherwise. 
  

 - 5 - 

 (d) If requested by the Mortgagee at any time and from time to time, the Mortgagor will
deliver to the Mortgagee copies of all cover notes, binders, policies and certificates of entry in protection and indemnity associations, and all endorsements and riders amendatory thereof, in respect of insurance maintained in connection with the
Vessels. 
 (e) The Mortgagor agrees that it will not do or permit or willingly allow to be done any act by which any insurance
required by the terms of this Mortgage may be suspended, impaired or cancelled, and that it will not permit or allow any Vessel to undertake any voyage or run any risk or transport any cargo or passengers which may not be permitted by the policies
in force, without having previously insured the Vessel by additional coverage extending to such voyages, risks, passengers or cargoes. 

SECTION 7. The Mortgagor represents and warrants that it is and will at all times remain a citizen of the United States within the
meaning of Title 46, Section 802, of the United States Code, Appendix, entitled to own, document and operate vessels in the coastwise trade under the laws of the United States. The Mortgagor further represents and warrants that the address of
its chief executive office is c/o Great Lakes Dredge & Dock Corporation, 2122 York Road, Oak Brook, Illinois 60523. 

ARTICLE II 

DEFAULTS AND REMEDIES 

SECTION 1. For all purposes of this Mortgage the term “Default” shall mean when any of the following events shall have
occurred: 
 (a) An Event of Default under the Bonding Agreement; 

(b) A failure in the due and punctual observance and performance by the Mortgagor of any provision of this Mortgage which shall continue
without being cured by the Mortgagor for a period of thirty (30) days after written notice thereof shall have been given by the Mortgagee to the Mortgagor; or 

(c) The Mortgagor shall abandon any Vessel, other than in connection with an insured actual, constructive or compromised total loss of
such Vessel. 
 SECTION 2. If any Default shall occur and be continuing uncured, then at any time thereafter while such Default
shall remain uncured, the Mortgagee shall have the right to exercise any or all of the following remedies: 
 (a) Exercise all
of the rights and remedies in foreclosure and otherwise given to mortgagees by Chapter 313 or by any other provisions of applicable law; 

(b) Bring suit at law, in equity or in admiralty, as it may be advised, to recover judgment in respect of the Secured Obligations and any
and all payments due under the Secured Obligations and hereunder, and collect the same out of any and all of the collateral held by the Mortgagee for the Secured Obligations whether covered by this Mortgage or otherwise and in

  

 - 6 - 

 
connection therewith obtain a decree ordering the sale of any or all of the Vessels in accordance with subsection (d) of this Section 2; 

(c) The Mortgagee may take and enter into possession of any or all of the Vessels, at any time, wherever the same may be, without legal
process and without being responsible for loss or damage, and the Mortgagor or other person in possession forthwith upon demand of the Mortgagee shall surrender to the Mortgagee possession of each such Vessel demanded and, once in possession of any
such Vessel, the Mortgagee may, without being responsible for loss or damage, hold, lay up, lease, charter, operate or otherwise use the Vessel for such time and upon such terms as it may deem to be for its best advantage, and demand, collect and
retain all hire, freights, earnings, issues, revenues, income, profits, return premiums, salvage awards or recoveries, recoveries in general average, and all other sums due or to become due in respect of the Vessel or in respect of any insurance
thereon from any person whomsoever, accounting only for the net profits, if any, arising from such use of the Vessel and charging upon all receipts from the use of such Vessel or from the sale thereof by court proceedings or pursuant to subsection
(d) of this Section 2, all costs, expenses, charges, damages or losses by reason of such use; and if at any time the Mortgagee shall avail itself of the right herein given to it to take any or all of the Vessels, the Mortgagee shall
have the right to dock each Vessel taken, for a reasonable time at any dock, pier or other premises of any person in possession of such Vessel without charge, or to dock any or all of the Vessels taken at any other place at the cost and expense of
the Mortgagor; and 
 (d) The Mortgagee may take and enter into possession of any or all of the Vessels, at any time, wherever
the same may be, without legal process, and, once in possession of each of the Vessels taken, if it seems desirable to the Mortgagee and without being responsible for loss or damage, sell each such Vessel, at any place and at such time as the
Mortgagee may specify and in such manner as the Mortgagee may deem advisable, free from any claim by the Mortgagor in admiralty, in equity, at law or by statute, after first giving notice of the time and place of sale with a general description of
the property in the following manner: 
  

	 	(i)	By publishing such notice for ten (10) consecutive business days in a daily newspaper of general circulation published in New York City; 

 

	 	(ii)	If the place of sale should not be New York City, then also by publication of a similar notice for a similar period of time in a daily newspaper, if any, published at
the place of sale; and 

  

	 	(iii)	By mailing, by registered or certified mail, a similar notice to the Mortgagor on the day of first publication and at least thirty (30) days prior to the date
fixed for sale. 

 The Mortgagee may adjourn any such sale from time to time by announcement at the time and place
appointed for such sale or for such adjourned sale, and without further notice or publication the Mortgagee may make any such sale at the time and place to which the same shall be so adjourned. Any such sale may be conducted without bringing the
Vessels subject to such sale to be sold to the place designated for such sale and in such manner as the Mortgagee may deem to be for its best advantage. 
  

 - 7 - 

 SECTION 3. Any sale of any or all of the Vessels made pursuant to this Mortgage, whether
under the power of sale hereby granted or any judicial proceedings, shall operate to divest all right, title and interest of any nature whatsoever of the Mortgagor therein and thereto, and shall bar the Mortgagor, its successors and assigns, and all
persons claiming by, through or under them from claiming any interest in or with respect to each Vessel sold. No purchaser shall be bound to inquire whether notice has been given, or whether any Default has occurred, or as to the propriety of the
sale, or as to the application of the proceeds thereof. At any such sale, the Mortgagee may bid for and purchase such property and upon compliance with the terms of sale may hold, retain and dispose of such property without further accountability
therefor. 
 SECTION 4. The Mortgagee is hereby appointed attorney-in-fact of the Mortgagor in the name of the Mortgagor at any
time following the occurrence and during the continuation of any Default, to execute and deliver to any purchaser aforesaid, and is hereby vested with full power and authority to make, in the name and in behalf of the Mortgagor, a good conveyance of
the title to each Vessel sold. In the event of any sale of a Vessel, under any power herein contained, the Mortgagor will, if and when required by the Mortgagee, execute such form of conveyance of such Vessel, as the Mortgagee may direct or approve.
The Mortgagor hereby consents to the appointment of a consent keeper or substitute custodian by the Mortgagee with the costs thereof to be a cost of the sale to be paid from the proceeds of the sale or by the Mortgagor and, therefore, secured by
this Mortgage as additional Secured Obligations. 
 SECTION 5. Without limiting in any way the provisions of
Section 6 of Article I hereof, the Mortgagee is hereby appointed attorney-in-fact of the Mortgagor in the name of the Mortgagor at any time following the occurrence and during the continuation of any Default, to demand,
collect, receive, compromise and sue for, so far as may be permitted by law, all freight, hire, earnings, issues, revenues, income and profits of any or all of the Vessels and all amounts due from underwriters under any insurance thereon as payment
of losses or as return premiums or otherwise, salvage awards and recoveries, recoveries in general average or otherwise, and all other sums due or to become due at the time of the happening of any Default in respect of such Vessel or Vessels, or in
respect of any insurance thereon, from any person whomsoever, and to make, give and execute in the name of the Mortgagor, acquittances, receipts, releases or other discharges for the same, whether under seal or otherwise, and to endorse and accept
in the name of the Mortgagor all checks, notes, drafts, warrants, agreements and other instruments in writing with respect to the foregoing. 

SECTION 6. The Mortgagee may, whenever any right to enter and take possession of any or all of the Vessels accrues to the Mortgagee
hereunder, require the Mortgagor to deliver, and the Mortgagor shall on demand, at its own cost and expense, deliver, to the Mortgagee each Vessel as demanded. If any legal proceedings shall be taken to enforce any right under this Mortgage, the
Mortgagee shall be entitled as a matter of right to the appointment of a receiver of any or all of the Vessels and of the freights, hire, earnings, issues, revenues, income and profits due or to become due and arising from the operation thereof.

 SECTION 7. Upon the occurrence and during the continuation of a Default, the Mortgagor authorizes and empowers the Mortgagee
or its appointees or any of them to appear in the name of the Mortgagor, its successors and assigns, in any court of any country or nation of 

 

 - 8 - 

 
the world where a suit is pending against any of the Vessels because of or on account of any alleged lien against such Vessel from which such Vessel has not been released other than the lien of
this Mortgage, and to take such proceedings as to her as may seem proper towards the defense of such suit and the purchase or discharge of such lien, and all expenditures made or incurred by it for the purpose of such defense or purchase or
discharge shall be a debt due from the Mortgagor, its successors and assigns, to the Mortgagee, and shall be secured by the lien of this Mortgage in like manner and extent as if the amount and description thereof were written herein. 

SECTION 8. Each and every power and remedy herein given to the Mortgagee shall be cumulative and shall be in addition to every other
power and remedy herein given or now or hereafter existing at law, in equity, in admiralty or by statute, and each and every power and remedy whether herein given or otherwise existing may be exercised from time to time and as often and in such
order as may be deemed expedient by the Mortgagee, and the exercise or the beginning of the exercise of any power or remedy shall not be construed to be a waiver of the right to exercise at the same time or thereafter any other power or remedy. No
delay or omission by the Mortgagee in the exercise of any right or power or in the pursuance of any remedy accruing upon any Default shall impair any such right, power or remedy or be construed to be a waiver of any such Default or to be an
acquiescence therein; nor shall the acceptance by the Mortgagee of any security or of any payment of or on account of the amounts due in respect of the Secured Obligations after any Default or of any payment on account of any past Default be
construed to be a waiver of any right to take advantage of any future Default or of any past Default not completely cured thereby. 

SECTION 9. If at any time after a Default and prior to the actual sale of any of the Vessels by the Mortgagee or prior to any foreclosure
proceedings, the Mortgagor offers to cure completely all Defaults and to pay all expenses, advances and damages to the Mortgagee consequent on such Defaults, then the Mortgagee shall accept such offer, cure and payment and restore the Mortgagor to
its former position, but such action shall not affect any subsequent Default or impair any rights consequent thereon. 
 SECTION
10. In case the Mortgagee shall have proceeded to enforce any right, power or remedy under this Mortgage by foreclosure, entry or otherwise, and such proceedings shall have been discontinued or abandoned for any reason or shall have been determined
adversely to the Mortgagee, then and in every such case the Mortgagor and the Mortgagee shall be restored to their former positions and rights hereunder with respect to the property subject or intended to be subject to this Mortgage, and all rights,
remedies and powers of the Mortgagee shall continue as if no such proceedings had been taken. 
 SECTION 11. The proceeds of any
sale of any or all of the Vessels, earnings of any charter operation or other use of any or all of the Vessels by the Mortgagee under any of the powers herein specified, and any and all other moneys received by the Mortgagee pursuant to or under the
terms of this Mortgage or in any proceedings hereunder, the application of which has not elsewhere herein, in the Bonding Agreement or in the Intercreditor Agreement, been specifically provided for, shall be applied or held as follows: 

 

	 	First:	 Applied to the payment of all reasonable out-of-pocket expenses and charges, including the expenses of any sale, the expenses of any retaking,

  

 - 9 - 

	 	 
attorneys’ fees, court costs, and any other expenses or advances made or incurred by the Mortgagee in the protection of its rights or the pursuance of its remedies hereunder;

  

	 	Second:	Applied to the payment of any damages or injuries sustained by the Mortgagee occasioned by noncompliance by the Mortgagor with the terms and provisions of this Mortgage
and to furnish indemnity in the proper amount against any other liens or other encumbrances which have or may have priority over those established by this Mortgage; 

 

	 	Third:	Applied to the payment of the Secured Obligations in such priority as the Mortgagee may elect; 

 

	 	Fourth:	Applied to the payment of any other obligations secured by the Vessels which are known to the Mortgagee to exist and to be so secured; and 

 

	 	Fifth:	Any surplus thereafter remaining shall be paid promptly to the Mortgagor. 

SECTION 12. Until one or more Defaults shall occur and continue in existence, the Mortgagor, subject to the provisions of this Mortgage,
(a) shall be suffered and permitted to retain actual possession and use of the Vessels and (b) shall have the right, from time to time, in its discretion, and without application to the Mortgagee, and without obtaining a release thereof by
the Mortgagee, to dispose of, free from the lien hereof, any boilers, engines, machinery, masts, spars, sails, rigging, boats, anchors, cables, chains, tackle, apparel, furniture, fittings, cranes, drills, excavators, shovels, construction or other
equipment or any other appurtenances of the Vessels that are no longer useful, necessary, profitable or advantageous in the operation of the Vessels. 

ARTICLE III 

SUNDRY PROVISIONS 

SECTION 1. For the purposes of this Mortgage and Chapter 313, the maximum amount of the direct or contingent obligations outstanding at
any one time that is or may become secured by this Mortgage is the principal sum of U.S. $125,000,000, plus interest, expenses and fees. The discharge amount is the same as the maximum amount. 

SECTION 2. The names and addresses of each of the parties to this Mortgage are as follows: 

(a) Mortgagor: Great Lakes Dredge & Dock Company, c/o Great Lakes Dredge & Dock Corporation, 2122 York Road, Oak Brook,
Illinois 60523; 
 (b) Mortgagee: Travelers Casualty and Surety Company and Travelers Casualty and Surety Company of
America, One Tower Square, 5PB, Hartford, Connecticut 06183. 
 SECTION 3. All of the covenants, promises, stipulations and
agreements of the Mortgagor contained in this Mortgage shall bind the Mortgagor and its successors and assigns 
  

 - 10 - 

 
(including successors by way of merger, acquisition or similar event) and shall inure to the benefit of the Mortgagee and its successors and assigns (including successors by way of merger,
acquisition or similar event). In the event of any assignment of this Mortgage, the term “Mortgagee”, as used in this Mortgage, shall be deemed to mean any such assignee. 

SECTION 4. Wherever and whenever herein any right, power or authority is granted or given to the Mortgagee, such right, power or
authority may be exercised in all cases by the Mortgagee or such agent or agents as it may appoint, and the act or acts of such agent or agents when taken shall constitute the act of the Mortgagee hereunder. 

SECTION 5. This Mortgage may be executed in any number of counterparts, each of which shall be an original; but such counterparts shall
together constitute but one and the same instrument. 
 SECTION 6. Unless otherwise specifically provided herein, all notices
required or permitted by the terms hereof shall be given in the manner and with the effect provided for in the Bonding Agreement. 

SECTION 7. At the reasonable request of the Mortgagee, to the extent reasonably available to the Mortgagor, the Mortgagor will cause to
be delivered to Mortgagee for inspection, copies of any and all material contracts and documents relating to the Vessels, whether on board or not, subject to the confidentiality provisions set forth in the Bonding Agreement. 

SECTION 8. This Mortgage may be amended or supplemented from time to time, but only by an instrument in writing executed by the Mortgagor
and the Mortgagee and duly acknowledged pursuant to Chapter 313. 
 SECTION 9. THIS MORTGAGE AND ALL THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER AND THEIR SUCCESSORS AND ASSIGNS SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW BUT EXCLUDING ALL OTHER CHOICE OF LAW AND CONFLICTS OF
LAWS, AND EXCEPT TO THE EXTENT PREEMPTED BY APPLICABLE FEDERAL AND MARITIME LAWS OF THE UNITED STATES. 
 SECTION 10. So long as
the Intercreditor Agreement remains in effect, any provision set forth in the Intercreditor Agreement (including without limitation any provision limiting the use of the Vessels by the Mortgagee or foreclosure actions by the Mortgagee or prescribing
the use or application of proceeds of the Vessels) which conflicts with any provision of this Mortgage shall govern. 
 SECTION
11. The Mortgagee may permit the separate discharge of one or more Vessels or of property that is not a vessel from the lien of this Mortgage as permitted by the Bonding Agreement. 

 

 - 11 - 

 SECTION 12. Notwithstanding any other provisions of this Mortgage to the contrary, nothing
herein shall waive the preferred status of this Mortgage and if any provision herein shall be construed to waive such status, such provision shall, to the extent so construed, be void and of no effect. 

Execution Follows 

*   *   *   * 
  

 -12- 

 IN WITNESS WHEREOF, the Mortgagor has executed this Mortgage as of the day and year first
above written. 
  

			
	 GREAT LAKES DREDGE & DOCK

    COMPANY

		
	By:	 	  

	Name:	 	  

	Title:	 	  

ACKNOWLEDGMENT 
  

					
	STATE OF ILLINOIS	 	            )	 	
		 	            )	 	ss.:
	COUNTY OF	 	            )	 	

 The foregoing instrument was acknowledged before me this 22nd day of December, 2003, by
                        , the
                         of GREAT LAKES DREDGE & DOCK COMPANY, a New Jersey corporation, on behalf of the
corporation. 
 Notary Public 

 SCHEDULE A 

LIST OF VESSELS 
  

			
	 NAME OF VESSEL
	  	OFFICIAL NUMBER
	 CAROLINA

G.L. 55

NO. 53

PADRE ISLAND

UNLOADER # 2

G.L. 139

APACHE

MELVIN E. LEMMERHIRT

G.L. 33

G.L. 63

G.L. 232

G.L. 177

ERIN C.

REGGIE G
	  	552707
 1101368

566581
 639291

 667652

605280
 668642

 549349

612272
 922736

 695577

632371
 540928

 584849

 EXHIBIT E-2 

FORM OF 

FIRST PREFERRED SHIP MORTGAGE 

Given By 

GREAT LAKES DREDGE & DOCK CORPORATION 

As Owner 

In Favor Of 

TRAVELERS CASUALTY AND SURETY COMPANY 

And 

TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA 

As Mortgagees 

On the United States Flag Vessel 

DODGE ISLAND 

Official Number 625348 

 SYNOPSIS OF MORTGAGE 

 

					
	 	  	 VESSEL NAME
	  	OFFICIAL NUMBER
	Vessel Subject to Instrument	  	DODGE ISLAND	  	625348
			
	Type of Instrument:	  	First Preferred Ship Mortgage	  	
			
	Date of Instrument:	  	December 22, 2003	  	
			
	Name of Owner:	  	Great Lakes Dredge & Dock Corporation	  	
			
	(Percentage Owned):	  	100%	  	
			
	Address of Owner	  	 2122 York Road
 Oak Brook, IL
60523
	  	
			
	Name of Mortgagees:	  	 Travelers Casualty and Surety

Company and Travelers
 Casualty and Surety
Company
 of America
	  	
			
	Address of Mortgagee:	  	 One Tower Square, 5PB

Hartford, CT 06183
	  	
			
	Total Amount of Mortgage	  	 One Hundred Twenty-Five

Million United States Dollars
 ($125,000,000)
plus interest,
 expenses and fees
	  	

 FIRST PREFERRED SHIP MORTGAGE 

THIS FIRST PREFERRED SHIP MORTGAGE is made and dated as of December 22, 2003 (hereinafter the “Mortgage”) by GREAT
LAKES DREDGE & DOCK CORPORATION, a Delaware corporation, with its address 2122 York Road, Oak Brook, Illinois 60523 (the “Mortgagor”), to TRAVELERS CASUALTY AND SURETY COMPANY, a Connecticut corporation
(“TCASC”), and TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA, a Connecticut corporation (“Travelers America”, and together with TCASC, “Travelers”) each having their address at One Tower Square,
5PB, Hartford, Connecticut 06183 (collectively, the “Mortgagee”, each holding an individual interest as a joint tenant in the vessel mortgaged). 

WHEREAS, the Mortgagor is the sole owner of the vessel hereinafter identified as the “Vessel”, which vessel has been
duly documented in the name of the Mortgagor under the laws of the United States; 
 WHEREAS, the Mortgagor, Great Lakes
Dredge & Dock Company, a New Jersey corporation (Mortgagor’s direct subsidiary) (“Subsidiary”), various affiliates or subsidiaries of the Mortgagor, and the Mortgagee are parties to that certain Third Amended and Restated
Underwriting and Continuing Indemnity Agreement dated as of December 22, 2003 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Bonding Agreement”), which Bonding Agreement
amended and restated in its entirety that certain Second Amended and Restated Underwriting and Continuing Indemnity Agreement dated as of August 19, 1998 among, inter alia, the Mortgagor and the Mortgagee (the “Second Amendment and
Restatement”), which Second Amendment and Restatement amended and restated in its entirety that certain First Amended and Restated Underwriting and Continuing Indemnity Agreement dated as of September 24, 1997 among, inter alia, the
Mortgagor and the Mortgagee; 
 WHEREAS, pursuant to the Bonding Agreement, the Mortgagor and such affiliates or subsidiaries
have incurred or will incur obligations (monetary or otherwise) to the Mortgagee (which obligations and all other payment and performance obligations of the Mortgagor under this Mortgage as hereinafter referred to collectively as the
“Secured Obligations”); 
 WHEREAS, the Mortgagor previously agreed to secure the Secured Obligations to the
Mortgagee under the Bonding Agreement with, among other things, that certain First Preferred Fleet Mortgage (the “Original Mortgage”) dated as of September 24, 1997 by the Subsidiary to the Mortgagee; 

WHEREAS, the Mortgagor has agreed to replace the Original Mortgage and secure the Secured Obligations with, among other things, first
preferred ship mortgages on certain vessels owned by the Mortgagor and documented under the laws of the United States in the maximum principal amount of U.S. $125,000,000, plus interest, expenses and fees; 

 WHEREAS, the Mortgagor has agreed to secure certain obligations to Bank of America N.A., as
Administrative Agent for certain financial institutions (the “Lenders”) with a second preferred ship mortgage on the Vessel which is the subject of this Mortgage; 

WHEREAS, to deal with, among other things, the respective rights of Mortgagee and the Administrative Agent for the benefit of the
Lenders, with respect to the Vessel and the proceeds thereof, the Mortgagee has entered into that certain Intercreditor Agreement dated as of the date hereof by and among the Mortgagor, certain subsidiaries of the Mortgagor from time to time party
thereto, the Mortgagee and Travelers (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Intercreditor Agreement”); 

WHEREAS, the Bonding Agreement (excluding Exhibits and Schedules) is attached to this Mortgage as Exhibit A hereto; and

 WHEREAS, the Intercreditor Agreement (excluding Exhibits and Schedules) is attached to this Mortgage as Exhibit B
hereto; 
 NOW THEREFORE, THIS MORTGAGE WITNESSETH that in consideration of the premises and of the additional covenants herein
contained and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, and as security only for the performance and payment of the Secured Obligations when, if and as due, and all other sums which may be
secured by this Mortgage, the Mortgagor has granted, conveyed, mortgaged, pledged, granted a security interest in, confirmed, transferred and set over, and by these presents does grant, convey, mortgage, pledge, grant a security interest in,
confirm, assign, transfer and set over unto the Mortgagee the whole of the Vessel identified in Schedule A attached hereto and incorporated herein, together with all of her boilers, engines, machinery, masts, spars, sails, rigging, boats,
anchors, cables, chains, tackle, apparel, furniture, fittings, cranes, drills, excavators, shovels, construction and other equipment and all other appurtenances thereunto appertaining or belonging, whether now or hereafter acquired, and also any and
all additions, improvements and replacements hereafter made in or to said Vessel, or any of them, or in or to her equipment and appurtenances aforesaid (the “Vessel”), as well as the proceeds of the Vessel; 

TO HAVE AND TO HOLD all and singular the foregoing mortgaged and described property unto the Mortgagee and its successors and assigns
(including successors by way of merger, acquisition or similar event), to its and its successors’ and assigns’ own use, benefit and behoof forever; 

PROVIDED, HOWEVER, and these presents are upon the condition that the Mortgagee agrees that this Mortgage and the estate and rights
hereby granted shall not become effective until the due filing of this Mortgage in accordance with the provisions of Chapter 313 of Title 46, United States Code, as amended (“Chapter 313”) and shall cease, determine and terminate
upon payment and performance in full of all the Secured Obligations, otherwise to remain in full force and effect. 
 IT IS
HEREBY COVENANTED, DECLARED AND AGREED that the property above described is to be held subject to the further agreements and conditions hereinafter set forth. 
  

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 ARTICLE I 

REPRESENTATIONS, WARRANTIES AND 

COVENANTS OF THE MORTGAGOR 

The Mortgagor represents, warrants, covenants and agrees with Mortgagee as follows: 

SECTION 1. The Mortgagor hereby agrees with the Mortgagee duly and promptly to perform and to observe the Secured Obligations.

 SECTION 2. The Mortgagor will cause this Mortgage to be duly filed in accordance with the provisions of Chapter 313 and will
otherwise cause compliance with and satisfaction of all of the provisions of Chapter 313 in order to establish and maintain this Mortgage as a first preferred mortgage lien thereunder upon the Vessel and upon all renewals, replacements, supplements,
amendments and improvements made in or to the same for the amount indicated in Section 1 of Article III hereof. The Mortgagor shall promptly pay and discharge all United States Coast Guard fees and expenses in connection with the
recordation of this Mortgage and any such renewals, replacements, supplements, amendments and improvements. 
 SECTION 3. In the
event that this Mortgage or the Secured Obligations, or any provision hereof or thereof, shall be deemed invalidated in whole or in part by reason of any present or future law or any decision of any authoritative court, or if the documents at any
time held by the Mortgagee shall be deemed by the Mortgagee for any reason insufficient to carry out the true intent and spirit of this Mortgage, or the Secured Obligations, then, from time to time, the Mortgagor will execute, on its own behalf such
other and further assurances and documents as in the reasonable opinion of the Mortgagee may be required more effectively to subject the Vessel to the terms and provisions of this Mortgage, including the payment of all sums required to be paid under
the Secured Obligations hereby secured. 
 SECTION 4. (a) The Mortgagor shall place a properly certified copy of this Mortgage
on board the Vessel with its papers and will cause a notice, reading as follows (or containing such additional information relating to any permitted mortgage that is placed on a Vessel as may be approved by the Mortgagor) printed in plain type of
such size that the paragraph of reading matter shall cover a space not less than six inches wide by nine inches high, and framed, to be placed and kept prominently exhibited in the chart room and in the master’s cabin on the Vessel if such room
and cabin are contained in the Vessel and, if not, where such notices customarily are kept for vessels of the type of the Vessel: 
  

 - 3 - 

 “NOTICE OF SHIP MORTGAGE 

This vessel is owned by Great Lakes Dredge & Dock Corporation, a Delaware corporation, and is covered by a First
Preferred Fleet Mortgage in favor of Travelers Casualty and Surety Company and Travelers Casualty and Surety Company of America, under authority of Chapter 313 of Title 46 of the United States Code, as amended. Under the terms of said Mortgage,
neither the owner, the master or agent of this vessel nor any other person has any right, power or authority to create, incur, or permit to be placed or imposed upon this vessel any lien whatsoever, other than liens for wages of a stevedore when
employed directly by a person listed in 46 U.S.C. 31341, for wages of the crew in respect of this vessel (including wages of the master to the extent provided by 46 U.S.C. 11112), general average or for salvage (including contract salvage), liens
fully covered by insurance and any deductible applicable thereto, liens permitted by Section 6.11 of the Bonding Agreement or, to the extent they are liens subordinate to the liens of the said Mortgage, certain liens in favor of Bank of
America N.A., as Administrative Agent, and other liens incident to current operations or for repairs.” 
 (b) The Mortgagor
will not create, incur, permit to be placed or imposed upon or permit to exist upon the Vessel or any of the proceeds of the Vessel or sums due or to become due in respect of the Vessel or in respect of insurance thereon any lien whatsoever, other
than liens contemplated by the aforesaid notice. In due course and in any event within thirty (30) days after the same becomes due and payable, the Mortgagor shall pay or cause to be discharged or make adequate provision for the satisfaction or
discharge of all material claims or demands with respect to the Vessel, unless such claims or demands are being contested in good faith. 

SECTION 5. (a) The Mortgagor will not transfer or change the flag of the Vessel without the written consent of the Mortgagee first had
and obtained, and any such written consent to any one transfer or change of flag shall not be construed to be a waiver of this provision with respect to any subsequent proposed transfer or change of flag. 

(b) The Mortgagor will not cause or permit the Vessel to be operated in any manner contrary to law and the Mortgagor will not engage in
any unlawful trade or violate any law or expose the Vessel to penalty or forfeiture, except where any such operation, engagement, violation or exposure could not reasonably be expected to have a Material Adverse Change, and will not do, or suffer or
permit to be done, anything which can or may injuriously affect in any material respect the registration, documentation, or trade endorsement of a Vessel under the laws and regulations of the United States. 

(c) Without limiting in any way the right of the Mortgagee to decline to grant any written consent described in Section 5(a)
or to condition any such written consent on other conditions, it is expressly understood and agreed that the Mortgagee shall not grant any such written consent unless either: (i) the Mortgagee is satisfied that all actions necessary or
desirable have been taken so that after giving effect to the proposed transfer or change the Mortgagee will have a valid and enforceable first lien on the Vessel which is the subject hereof providing rights (including practically realizable
enforcement rights) and benefits to the Mortgagee with respect 
  

 - 4 - 

 
to the Vessel at least as favorable to the Mortgagee as those granted to the Mortgagee with respect thereto by this Mortgage or (ii) the Mortgagor substitutes for the Vessel as collateral
under this Mortgage another vessel owned by the Mortgagor (including all appurtenances thereunto appertaining or belonging and any and all additions, improvements and replacements thereto) reasonably acceptable to the Mortgagee having an orderly
liquidation value reasonably equal to or greater than the then orderly liquidation value of the Vessel (or such lesser orderly liquidation value as the Mortgagee may find acceptable). 

SECTION 6. (a) On and after the date of this Mortgage the Mortgagor will cause to be carried and maintained in respect of the Vessel hull
and machinery (“H&M”), general liability (“GL”) and protection and indemnity (“P&I”) insurance in such amounts and with such insurance companies, underwriters, protection and indemnity
associations or clubs as required by the Bonding Agreement. In the event that the Mortgagor fails to obtain or maintain any insurance required by the terms of this Mortgage or the Bonding Agreement, the Mortgagee shall be hereby authorized by the
Mortgagor to procure such insurance and all premiums and other amounts incurred or expended by the Mortgagee in procuring such insurance shall constitute additional Secured Obligations secured by this Mortgage. The Mortgagor will cause all policies
and certificates of entry with respect to H&M insurance required hereby to name the Mortgagee as an additional insured and contain a loss payable clause which, by language reasonably acceptable to the Mortgagee, shall provide for payment to the
Mortgagee or its order. The Mortgagor shall cause all policies of GL insurance to name the Mortgagee as an additional insured and shall either cause all policies of P&I insurance to name the Mortgagee as an additional insured or shall otherwise
cause the interest of the Mortgagee to be noted with respect to such policies of P&I insurance, subject to the remaining provisions of this Section 6. 

(b) In the event of an actual, constructive or compromised total loss of the Vessel, such loss shall not be adjusted or compromised
without the prior written consent of the Mortgagee, and all insurance or other payments for such shall be paid to the Mortgagee and applied by the Mortgagee as follows: first, to any costs or expenses of the Mortgagee in connection with collecting
such payment; second, to the payment of the Secured Obligations; third, to the payment of all other secured indebtedness, if any; and fourth, any surplus thereafter remaining, to the Mortgagor, its successors and assigns or to whomever may be
lawfully entitled to receive the same. 
 (c) In the event that any claim or lien is asserted against the Vessel for loss,
damage or expense which is covered by insurance required hereunder, and it is necessary for the Mortgagor to obtain a bond or supply other security to prevent arrest of the Vessel or to release the Vessel from arrest on account of such claim or
lien, the Mortgagee, on request of the Mortgagor or its agent, may, in the sole discretion of the Mortgagee, assign to any person, firm or corporation executing a surety or guarantee bond or other agreement to save or release the Vessel from such
arrest, all right, title and interest of the Mortgagee in and to said insurance covering said loss, damage or expense, as collateral security to indemnify against liability under said bond or other agreement. In any such event, Mortgagor shall
promptly notify Mortgagee in writing of any such threatened arrest and, within thirty (30) days, cause the Vessel to be released by posting security or otherwise. 
  

 - 5 - 

 (d) If requested by the Mortgagee at any time and from time to time, the Mortgagor will
deliver to the Mortgagee copies of all cover notes, binders, policies and certificates of entry in protection and indemnity associations, and all endorsements and riders amendatory thereof, in respect of insurance maintained in connection with the
Vessel. 
 (e) The Mortgagor agrees that it will not do or permit or willingly allow to be done any act by which any insurance
required by the terms of this Mortgage may be suspended, impaired or cancelled, and that it will not permit or allow the Vessel to undertake any voyage or run any risk or transport any cargo or passengers which may not be permitted by the policies
in force, without having previously insured the Vessel by additional coverage extending to such voyages, risks, passengers or cargoes. 

SECTION 7. The Mortgagor represents and warrants that it is and will at all times remain a citizen of the United States within the
meaning of Title 46, Section 802, of the United States Code, Appendix, entitled to own, document and operate vessels in the coastwise trade under the laws of the United States. The Mortgagor further represents and warrants that the address of
its chief executive office is Great Lakes Dredge & Dock Corporation, 2122 York Road, Oak Brook, Illinois 60523. 

ARTICLE II 

DEFAULTS AND REMEDIES 

SECTION 1. For all purposes of this Mortgage the term “Default” shall mean when any of the following events shall have
occurred: 
 (a) An Event of Default under the Bonding Agreement; 

(b) A failure in the due and punctual observance and performance by the Mortgagor of any provision of this Mortgage which shall continue
without being cured by the Mortgagor for a period of thirty (30) days after written notice thereof shall have been given by the Mortgagee to the Mortgagor; or 

(c) The Mortgagor shall abandon the Vessel, other than in connection with an insured actual, constructive or compromised total loss of
the Vessel. 
 SECTION 2. If any Default shall occur and be continuing uncured, then at any time thereafter while such Default
shall remain uncured, the Mortgagee shall have the right to exercise any or all of the following remedies: 
 (a) Exercise all
of the rights and remedies in foreclosure and otherwise given to mortgagees by Chapter 313 or by any other provisions of applicable law; 

(b) Bring suit at law, in equity or in admiralty, as it may be advised, to recover judgment in respect of the Secured Obligations and any
and all payments due under the Secured Obligations and hereunder, and collect the same out of any and all of the collateral held by the Mortgagee for the Secured Obligations whether covered by this Mortgage or otherwise and in

  

 - 6 - 

 
connection therewith obtain a decree ordering the sale of the Vessel in accordance with subsection (d) of this Section 2; 

(c) The Mortgagee may take and enter into possession of the Vessel, at any time, wherever the same may be, without legal process and
without being responsible for loss or damage, and the Mortgagor or other person in possession forthwith upon demand of the Mortgagee shall surrender to the Mortgagee possession of the Vessel demanded and, once in possession of the Vessel, the
Mortgagee may, without being responsible for loss or damage, hold, lay up, lease, charter, operate or otherwise use the Vessel for such time and upon such terms as it may deem to be for its best advantage, and demand, collect and retain all hire,
freights, earnings, issues, revenues, income, profits, return premiums, salvage awards or recoveries, recoveries in general average, and all other sums due or to become due in respect of the Vessel or in respect of any insurance thereon from any
person whomsoever, accounting only for the net profits, if any, arising from such use of the Vessel and charging upon all receipts from the use of the Vessel or from the sale thereof by court proceedings or pursuant to subsection (d) of this
Section 2, all costs, expenses, charges, damages or losses by reason of such use; and if at any time the Mortgagee shall avail itself of the right herein given to it to take the Vessel, the Mortgagee shall have the right to dock the
Vessel, for a reasonable time at any dock, pier or other premises of any person in possession of the Vessel without charge, or to dock the Vessel taken at any other place at the cost and expense of the Mortgagor; and 

(d) The Mortgagee may take and enter into possession of the Vessel, at any time, wherever the same may be, without legal process, and,
once in possession of the Vessel, if it seems desirable to the Mortgagee and without being responsible for loss or damage, sell the Vessel, at any place and at such time as the Mortgagee may specify and in such manner as the Mortgagee may deem
advisable, free from any claim by the Mortgagor in admiralty, in equity, at law or by statute, after first giving notice of the time and place of sale with a general description of the property in the following manner: 

 

	 	(i)	By publishing such notice for ten (10) consecutive business days in a daily newspaper of general circulation published in New York City; 

 

	 	(ii)	If the place of sale should not be New York City, then also by publication of a similar notice for a similar period of time in a daily newspaper, if any, published at
the place of sale; and 

  

	 	(iii)	By mailing, by registered or certified mail, a similar notice to the Mortgagor on the day of first publication and at least thirty (30) days prior to the date
fixed for sale. 

 The Mortgagee may adjourn any such sale from time to time by announcement at the time and place
appointed for such sale or for such adjourned sale, and without further notice or publication the Mortgagee may make any such sale at the time and place to which the same shall be so adjourned. Any such sale may be conducted without bringing the
Vessel to the place designated for such sale and in such manner as the Mortgagee may deem to be for its best advantage. 
  

 - 7 - 

 SECTION 3. Any sale of the Vessel made pursuant to this Mortgage, whether under the power of
sale hereby granted or any judicial proceedings, shall operate to divest all right, title and interest of any nature whatsoever of the Mortgagor therein and thereto, and shall bar the Mortgagor, its successors and assigns, and all persons claiming
by, through or under them from claiming any interest in or with respect to the Vessel. No purchaser shall be bound to inquire whether notice has been given, or whether any Default has occurred, or as to the propriety of the sale, or as to the
application of the proceeds thereof. At any such sale, the Mortgagee may bid for and purchase such property and upon compliance with the terms of sale may hold, retain and dispose of such property without further accountability therefor. 

SECTION 4. The Mortgagee is hereby appointed attorney-in-fact of the Mortgagor in the name of the Mortgagor at any time following the
occurrence and during the continuation of any Default, to execute and deliver to any purchaser aforesaid, and is hereby vested with full power and authority to make, in the name and in behalf of the Mortgagor, a good conveyance of the title to the
Vessel. In the event of any sale of the Vessel, under any power herein contained, the Mortgagor will, if and when required by the Mortgagee, execute such form of conveyance of the Vessel, as the Mortgagee may direct or approve. The Mortgagor hereby
consents to the appointment of a consent keeper or substitute custodian by the Mortgagee with the costs thereof to be a cost of the sale to be paid from the proceeds of the sale or by the Mortgagor and, therefore, secured by this Mortgage as
additional Secured Obligations. 
 SECTION 5. Without limiting in any way the provisions of Section 6 of
Article I hereof, the Mortgagee is hereby appointed attorney-in-fact of the Mortgagor in the name of the Mortgagor at any time following the occurrence and during the continuation of any Default, to demand, collect, receive, compromise
and sue for, so far as may be permitted by law, all freight, hire, earnings, issues, revenues, income and profits of the Vessel and all amounts due from underwriters under any insurance thereon as payment of losses or as return premiums or
otherwise, salvage awards and recoveries, recoveries in general average or otherwise, and all other sums due or to become due at the time of the happening of any Default in respect of the Vessel, or in respect of any insurance thereon, from any
person whomsoever, and to make, give and execute in the name of the Mortgagor, acquittances, receipts, releases or other discharges for the same, whether under seal or otherwise, and to endorse and accept in the name of the Mortgagor all checks,
notes, drafts, warrants, agreements and other instruments in writing with respect to the foregoing. 
 SECTION 6. The Mortgagee
may, whenever any right to enter and take possession of the Vessel accrues to the Mortgagee hereunder, require the Mortgagor to deliver, and the Mortgagor shall on demand, at its own cost and expense, deliver, to the Mortgagee the Vessel as
demanded. If any legal proceedings shall be taken to enforce any right under this Mortgage, the Mortgagee shall be entitled as a matter of right to the appointment of a receiver of the Vessel and of the freights, hire, earnings, issues, revenues,
income and profits due or to become due and arising from the operation thereof. 
 SECTION 7. Upon the occurrence and during the
continuation of a Default, the Mortgagor authorizes and empowers the Mortgagee or its appointees or any of them to appear in the name of the Mortgagor, its successors and assigns, in any court of any country or nation of the world where a suit is
pending against any the Vessel because of or on account of any alleged 
  

 - 8 - 

 
lien against the Vessel from which the Vessel has not been released other than the lien of this Mortgage, and to take such proceedings as to her as may seem proper towards the defense of such
suit and the purchase or discharge of such lien, and all expenditures made or incurred by it for the purpose of such defense or purchase or discharge shall be a debt due from the Mortgagor, its successors and assigns, to the Mortgagee, and shall be
secured by the lien of this Mortgage in like manner and extent as if the amount and description thereof were written herein. 

SECTION 8. Each and every power and remedy herein given to the Mortgagee shall be cumulative and shall be in addition to every other
power and remedy herein given or now or hereafter existing at law, in equity, in admiralty or by statute, and each and every power and remedy whether herein given or otherwise existing may be exercised from time to time and as often and in such
order as may be deemed expedient by the Mortgagee, and the exercise or the beginning of the exercise of any power or remedy shall not be construed to be a waiver of the right to exercise at the same time or thereafter any other power or remedy. No
delay or omission by the Mortgagee in the exercise of any right or power or in the pursuance of any remedy accruing upon any Default shall impair any such right, power or remedy or be construed to be a waiver of any such Default or to be an
acquiescence therein; nor shall the acceptance by the Mortgagee of any security or of any payment of or on account of the amounts due in respect of the Secured Obligations after any Default or of any payment on account of any past Default be
construed to be a waiver of any right to take advantage of any future Default or of any past Default not completely cured thereby. 

SECTION 9. If at any time after a Default and prior to the actual sale of the Vessel by the Mortgagee or prior to any foreclosure
proceedings, the Mortgagor offers to cure completely all Defaults and to pay all expenses, advances and damages to the Mortgagee consequent on such Defaults, then the Mortgagee shall accept such offer, cure and payment and restore the Mortgagor to
its former position, but such action shall not affect any subsequent Default or impair any rights consequent thereon. 
 SECTION
10. In case the Mortgagee shall have proceeded to enforce any right, power or remedy under this Mortgage by foreclosure, entry or otherwise, and such proceedings shall have been discontinued or abandoned for any reason or shall have been determined
adversely to the Mortgagee, then and in every such case the Mortgagor and the Mortgagee shall be restored to their former positions and rights hereunder with respect to the property subject or intended to be subject to this Mortgage, and all rights,
remedies and powers of the Mortgagee shall continue as if no such proceedings had been taken. 
 SECTION 11. The proceeds of any
sale of the Vessel, earnings of any charter operation or other use of the Vessel by the Mortgagee under any of the powers herein specified, and any and all other moneys received by the Mortgagee pursuant to or under the terms of this Mortgage or in
any proceedings hereunder, the application of which has not elsewhere herein, in the Bonding Agreement or in the Intercreditor Agreement, been specifically provided for, shall be applied or held as follows: 

 

	 	First:	 Applied to the payment of all reasonable out-of-pocket expenses and charges, including the expenses of any sale, the expenses of any retaking,
attorneys’ fees, court costs, and any other expenses or advances made or 

  

 - 9 - 

	 	 
incurred by the Mortgagee in the protection of its rights or the pursuance of its remedies hereunder; 

 

	 	Second:	Applied to the payment of any damages or injuries sustained by the Mortgagee occasioned by noncompliance by the Mortgagor with the terms and provisions of this Mortgage
and to furnish indemnity in the proper amount against any other liens or other encumbrances which have or may have priority over those established by this Mortgage; 

 

	 	Third:	Applied to the payment of the Secured Obligations in such priority as the Mortgagee may elect; 

 

	 	Fourth:	Applied to the payment of any other obligations secured by the Vessel which are known to the Mortgagee to exist and to be so secured; and 

 

	 	Fifth:	Any surplus thereafter remaining shall be paid promptly to the Mortgagor. 

SECTION 12. Until one or more Defaults shall occur and continue in existence, the Mortgagor, subject to the provisions of this Mortgage,
(a) shall be suffered and permitted to retain actual possession and use of the Vessel and (b) shall have the right, from time to time, in its discretion, and without application to the Mortgagee, and without obtaining a release thereof by
the Mortgagee, to dispose of, free from the lien hereof, any boilers, engines, machinery, masts, spars, sails, rigging, boats, anchors, cables, chains, tackle, apparel, furniture, fittings, cranes, drills, excavators, shovels, construction or other
equipment or any other appurtenances of the Vessel that are no longer useful, necessary, profitable or advantageous in the operation of the Vessel. 

ARTICLE III 

SUNDRY PROVISIONS 

SECTION 1. For the purposes of this Mortgage and Chapter 313, the maximum amount of the direct or contingent obligations outstanding at
any one time that is or may become secured by this Mortgage is the principal sum of U.S. $125,000,000, plus interest, expenses and fees. The discharge amount is the same as the maximum amount. 

SECTION 2. The names and addresses of each of the parties to this Mortgage are as follows: 

(a) Mortgagor: Great Lakes Dredge & Dock Corporation, 2122 York Road, Oak Brook, Illinois 60523; 

(b) Mortgagee: Travelers Casualty and Surety Company and Travelers Casualty and Surety Company of America, One Tower Square, 5PB,
Hartford, Connecticut 06183. 
 SECTION 3. All of the covenants, promises, stipulations and agreements of the Mortgagor
contained in this Mortgage shall bind the Mortgagor and its successors and assigns (including successors by way of merger, acquisition or similar event) and shall inure to the 

 

 - 10 - 

 
benefit of the Mortgagee and its successors and assigns (including successors by way of merger, acquisition or similar event). In the event of any assignment of this Mortgage, the term
“Mortgagee”, as used in this Mortgage, shall be deemed to mean any such assignee. 
 SECTION 4. Wherever and whenever
herein any right, power or authority is granted or given to the Mortgagee, such right, power or authority may be exercised in all cases by the Mortgagee or such agent or agents as it may appoint, and the act or acts of such agent or agents when
taken shall constitute the act of the Mortgagee hereunder. 
 SECTION 5. This Mortgage may be executed in any number of
counterparts, each of which shall be an original; but such counterparts shall together constitute but one and the same instrument. 

SECTION 6. Unless otherwise specifically provided herein, all notices required or permitted by the terms hereof shall be given in the
manner and with the effect provided for in the Bonding Agreement. 
 SECTION 7. At the reasonable request of the Mortgagee, to
the extent reasonably available to the Mortgagor, the Mortgagor will cause to be delivered to Mortgagee for inspection, copies of any and all material contracts and documents relating to the Vessel, whether on board or not, subject to the
confidentiality provisions set forth in the Bonding Agreement. 
 SECTION 8. This Mortgage may be amended or supplemented from
time to time, but only by an instrument in writing executed by the Mortgagor and the Mortgagee and duly acknowledged pursuant to Chapter 313. 

SECTION 9. THIS MORTGAGE AND ALL THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEIR SUCCESSORS AND ASSIGNS SHALL BE GOVERNED
BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW BUT EXCLUDING ALL OTHER CHOICE OF LAW AND CONFLICTS OF LAWS, AND EXCEPT TO THE EXTENT PREEMPTED BY APPLICABLE FEDERAL AND MARITIME
LAWS OF THE UNITED STATES. 
 SECTION 10. So long as the Intercreditor Agreement remains in effect, any provision set forth in
the Intercreditor Agreement (including without limitation any provision limiting the use of the Vessel by the Mortgagee or foreclosure actions by the Mortgagee or prescribing the use or application of proceeds of the Vessel) which conflicts with any
provision of this Mortgage shall govern. 
 SECTION 11. The Mortgagee may permit the separate discharge of property that is not
a vessel from the lien of this Mortgage as permitted by the Bonding Agreement. 
 SECTION 12. Notwithstanding any other
provisions of this Mortgage to the contrary, nothing herein shall waive the preferred status of this Mortgage and if any provision herein shall be construed to waive such status, such provision shall, to the extent so construed, be void and of no
effect. 
  

 - 11 - 

 Execution Follows 

* * * * 
  

 - 12 - 

 IN WITNESS WHEREOF, the Mortgagor has executed this Mortgage as of the day and year first
above written. 
  

			
	GREAT LAKES DREDGE & DOCK
	    CORPORATION
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

ACKNOWLEDGMENT 
  

					
	STATE OF ILLINOIS	  	            )	 	
		  	            )	 	ss.:
	COUNTY OF	  	            )	 	

 The foregoing instrument was acknowledged before me this 22nd day of December, 2003, by
                    , the
                     of GREAT LAKES DREDGE & DOCK CORPORATION, a Delaware corporation, on behalf of the corporation. 

Notary Public 

 SCHEDULE A 

VESSEL SUBJECT TO MORTGAGE 
  

			
	 VESSEL NAME
	  	 OFFICIAL NUMBER

	 DODGE ISLAND
	  	625348

 EXHIBIT F-1 

FORM OF 

SECOND PREFERRED FLEET MORTGAGE 

Given By 

GREAT LAKES DREDGE & DOCK COMPANY 

As Owner 

In Favor Of 

TRAVELERS CASUALTY AND SURETY COMPANY 

And 

TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA 

As Mortgagees 

On the United States Flag Vessels 

Named Herein 

 SYNOPSIS OF MORTGAGE 

 

					
	 	  	 VESSEL NAME
	  	 OFFICIAL NUMBER

	 Vessels Subject
 to
Instrument
	  	 ALASKA
 ILLINOIS

CALIFORNIA
 G.L. 51

G.L. 54
 MANHATTAN ISLAND

G.L. 32
 G.L. 64

G.L. 230
 G.L. 231
	  	283416
 580274

292779
 288765

 560225

583706
 609828

 922737

695575
 695576

			
	Type of Instrument:	  	 Second Preferred Fleet

Mortgage
	  	
			
	Date of Instrument:	  	December 22, 2003	  	
			
	Name of Owner:	  	 Great Lakes Dredge & Dock

Company
	  	
			
	(Percentage Owned):	  	100%	  	
			
	Address of Owner	  	 c/o Great Lakes Dredge & Dock

Corporation
 2122 York Road

Oak Brook, IL 60523
	  	
			
	Name of Mortgagees:	  	 Travelers Casualty and Surety

Company and Travelers
 Casualty and Surety
Company
 of America
	  	
			
	Address of Mortgagee:	  	 One Tower Square, 5PB

Hartford, CT 06183
	  	
			
	Total Amount of Mortgage	  	 One Hundred Twenty-Five

Million United States Dollars
 ($125,000,000)
plus interest,
 expenses and fees
	  	

 SECOND PREFERRED FLEET MORTGAGE 

THIS SECOND PREFERRED FLEET MORTGAGE is made and dated as of December 22, 2003 (hereinafter the “Mortgage”) by
GREAT LAKES DREDGE & DOCK COMPANY, a New Jersey corporation, with its address c/o Great Lakes Dredge & Dock Corporation, 2122 York Road, Oak Brook, Illinois 60523 (the “Mortgagor”), to TRAVELERS CASUALTY AND SURETY
COMPANY, a Connecticut corporation (“TCASC”), and TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA, a Connecticut corporation (“Travelers America”, and together with TCASC, “Travelers”) each having
their address at One Tower Square, 5PB, Hartford, Connecticut 06183 (collectively, the “Mortgagee”, each holding an individual interest as a joint tenant in the vessels mortgaged). 

WHEREAS, the Mortgagor is the sole owner of the vessels hereinafter identified as the “Vessels”, which vessels have been
duly documented in the name of the Mortgagor under the laws of the United States; 
 WHEREAS, the Mortgagor, Great Lakes
Dredge & Dock Corporation, a Delaware corporation (Mortgagor’s direct parent company) (the “Parent”), various affiliates of the Mortgagor, and the Mortgagee are parties to that certain Third Amended and Restated Underwriting
and Continuing Indemnity Agreement dated as of December 22, 2003 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Bonding Agreement”), which Bonding Agreement amended and
restated in its entirety that certain Second Amended and Restated Underwriting and Continuing Indemnity Agreement dated as of August 19, 1998 among, inter alia, the Mortgagor and the Mortgagee (the “Second Amendment and
Restatement”), which Second Amendment and Restatement amended and restated in its entirety that certain First Amended and Restated Underwriting and Continuing Indemnity Agreement dated as of September 24, 1997 among, inter alia, the
Mortgagor and the Mortgagee; 
 WHEREAS, pursuant to the Bonding Agreement, the Mortgagor and such affiliates have incurred or
will incur obligations (monetary or otherwise) to the Mortgagee (which obligations and all other payment and performance obligations of the Mortgagor under this Mortgage are hereinafter referred to collectively as the “Secured
Obligations”); 
 WHEREAS, the Mortgagor previously agreed to secure the Secured Obligations to the Mortgagee under the
Bonding Agreement with, among other things, that certain First Preferred Fleet Mortgage (the “Original Mortgage”) dated as of September 24, 1997 by the Mortgagor to the Mortgagee; 

WHEREAS, the Mortgagor has agreed to replace the Original Mortgage and secure the Secured Obligations with, among other things, second
preferred ship mortgages on certain vessels owned by the Mortgagor and documented under the laws of the United States in the maximum principal amount of U.S. $125,000,000, plus interest, expenses and fees; 

 WHEREAS, the Mortgagor has agreed to secure certain obligations to Bank of America N.A., as
Administrative Agent for certain financial institutions (the “Lenders”) with first preferred ship mortgages on the Vessels which are the subject of this Mortgage; 

WHEREAS, to deal with, among other things, the respective rights of Mortgagee and the Administrative Agent for the benefit of the
Lenders, with respect to the Vessels and the proceeds thereof, the Mortgagee has entered into that certain Intercreditor Agreement dated as of the date hereof by and among the Parent, certain subsidiaries of the Parent (including the Mortgagor) from
time to time party thereto, the Mortgagee and Travelers (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Intercreditor Agreement”); 

WHEREAS, the Bonding Agreement (excluding Exhibits and Schedules) is attached to this Mortgage as Exhibit A hereto; and

 WHEREAS, the Intercreditor Agreement (excluding Exhibits and Schedules) is attached to this Mortgage as Exhibit B
hereto; 
 NOW THEREFORE, THIS MORTGAGE WITNESSETH that in consideration of the premises and of the additional covenants herein
contained and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, and as security only for the performance and payment of the Secured Obligations when, if and as due, and all other sums which may be
secured by this Mortgage, the Mortgagor has granted, conveyed, mortgaged, pledged, granted a security interest in, confirmed, transferred and set over, and by these presents does grant, convey, mortgage, pledge, grant a security interest in,
confirm, assign, transfer and set over unto the Mortgagee the whole of the Vessels identified in Schedule A attached hereto and incorporated herein, and each of them, together with all of their boilers, engines, machinery, masts, spars,
sails, rigging, boats, anchors, cables, chains, tackle, apparel, furniture, fittings, cranes, drills, excavators, shovels, construction and other equipment and all other appurtenances thereunto appertaining or belonging, whether now or hereafter
acquired, and also any and all additions, improvements and replacements hereafter made in or to said Vessels, or any of them, or in or to their equipment and appurtenances aforesaid (each a “Vessel” and, collectively, the
“Vessels”), as well as the proceeds of the Vessels; 
 TO HAVE AND TO HOLD all and singular the foregoing
mortgaged and described property unto the Mortgagee and its successors and assigns (including successors by way of merger, acquisition or similar event), to its and its successors’ and assigns’ own use, benefit and behoof forever;

 PROVIDED, HOWEVER, and these presents are upon the condition that the Mortgagee agrees that this Mortgage and the estate and
rights hereby granted shall not become effective until the due filing of this Mortgage in accordance with the provisions of Chapter 313 of Title 46, United States Code, as amended (“Chapter 313”) and shall cease, determine and
terminate upon payment and performance in full of all the Secured Obligations, otherwise to remain in full force and effect. 
  

 - 2 - 

 IT IS HEREBY COVENANTED, DECLARED AND AGREED that the property above described is to be held
subject to the further agreements and conditions hereinafter set forth. 
 ARTICLE I 

REPRESENTATIONS, WARRANTIES AND 

COVENANTS OF THE MORTGAGOR 

The Mortgagor represents, warrants, covenants and agrees with Mortgagee as follows: 

SECTION l. The Mortgagor hereby agrees with the Mortgagee duly and promptly to perform and to observe the Secured Obligations.

 SECTION 2. The Mortgagor will cause this Mortgage to be duly filed in accordance with the provisions of Chapter 313 and will
otherwise cause compliance with and satisfaction of all of the provisions of Chapter 313 in order to establish and maintain this Mortgage as a second preferred mortgage lien thereunder upon the Vessels and upon all renewals, replacements,
supplements, amendments and improvements made in or to the same for the amount indicated in Section 1 of Article III hereof. The Mortgagor shall promptly pay and discharge all United States Coast Guard fees and expenses in
connection with the recordation of this Mortgage and any such renewals, replacements, supplements, amendments and improvements. 

SECTION 3. In the event that this Mortgage or the Secured Obligations, or any provision hereof or thereof, shall be deemed invalidated in
whole or in part by reason of any present or future law or any decision of any authoritative court, or if the documents at any time held by the Mortgagee shall be deemed by the Mortgagee for any reason insufficient to carry out the true intent and
spirit of this Mortgage, or the Secured Obligations, then, from time to time, the Mortgagor will execute, on its own behalf such other and further assurances and documents as in the reasonable opinion of the Mortgagee may be required more
effectively to subject the Vessels to the terms and provisions of this Mortgage, including the payment of all sums required to be paid under the Secured Obligations hereby secured. 

SECTION 4. (a) The Mortgagor shall place a properly certified copy of this Mortgage on board each Vessel with its papers and will cause a
notice, reading as follows (or containing such additional information relating to any permitted mortgage that is placed on a Vessel as may be approved by the Mortgagor) printed in plain type of such size that the paragraph of reading matter shall
cover a space not less than six inches wide by nine inches high, and framed, to be placed and kept prominently exhibited in the chart room and in the master’s cabin of each of the Vessels if such room and cabin are contained in the Vessel and,
if not, where such notices customarily are kept for vessels of the type of the Vessel: 
  

 - 3 - 

 “NOTICE OF SHIP MORTGAGE 

This vessel is owned by Great Lakes Dredge & Dock Company, a New Jersey corporation, and is covered by a Second
Preferred Fleet Mortgage in favor of Travelers Casualty and Surety Company and Travelers Casualty and Surety Company of America, under authority of Chapter 313 of Title 46 of the United States Code, as amended. Under the terms of said Mortgage,
neither the owner, the master or agent of this vessel nor any other person has any right, power or authority to create, incur, or permit to be placed or imposed upon this vessel any lien whatsoever, other than liens for wages of a stevedore when
employed directly by a person listed in 46 U.S.C. 31341, for wages of the crew in respect of this vessel (including wages of the master to the extent provided by 46 U.S.C. 11112), general average or for salvage (including contract salvage), liens
fully covered by insurance and any deductible applicable thereto, liens permitted by Section 6.11 of the Bonding Agreement or, to the extent they are liens subordinate to the liens of the said Mortgage, certain liens in favor of Bank of
America N.A., as Administrative Agent, and other liens incident to current operations or for repairs.” 
 (b) The Mortgagor
will not create, incur, permit to be placed or imposed upon or permit to exist upon any of the Vessels or any of the proceeds of the Vessels or sums due or to become due in respect of the Vessels or in respect of insurance thereon any lien
whatsoever, other than liens contemplated by the aforesaid notice. In due course and in any event within thirty (30) days after the same becomes due and payable, the Mortgagor shall pay or cause to be discharged or make adequate provision for
the satisfaction or discharge of all material claims or demands with respect to the Vessels, unless such claims or demands are being contested in good faith. 

SECTION 5. (a) The Mortgagor will not transfer or change the flag of any of the Vessels without the written consent of the Mortgagee
first had and obtained, and any such written consent to any one transfer or change of flag shall not be construed to be a waiver of this provision with respect to any subsequent proposed transfer or change of flag. 

(b) The Mortgagor will not cause or permit any of the Vessels to be operated in any manner contrary to law and the Mortgagor will not
engage in any unlawful trade or violate any law or expose any of the Vessels to penalty or forfeiture, except where any such operation, engagement, violation or exposure could not reasonably be expected to have a Material Adverse Change, and will
not do, or suffer or permit to be done, anything which can or may injuriously affect in any material respect the registration, documentation, or trade endorsement of a Vessel under the laws and regulations of the United States. 

(c) Without limiting in any way the right of the Mortgagee to decline to grant any written consent described in Section 5(a)
or to condition any such written consent on other conditions, it is expressly understood and agreed that the Mortgagee shall not grant any such written consent unless either: (i) the Mortgagee is satisfied that all actions necessary or
desirable have been taken so that after giving effect to the proposed transfer or change the Mortgagee will have a valid and enforceable second lien on the Vessels which are the subject hereof providing

  

 - 4 - 

 
rights (including practically realizable enforcement rights) and benefits to the Mortgagee with respect to such Vessels at least as favorable to the Mortgagee as those granted to the Mortgagee
with respect thereto by this Mortgage or (ii) the Mortgagor substitutes for such Vessels as collateral under this Mortgage other vessels owned by the Mortgagor (including all appurtenances thereunto appertaining or belonging and any and all
additions, improvements and replacements thereto) reasonably acceptable to the Mortgagee having an orderly liquidation value reasonably equal to or greater than the then orderly liquidation value of such Vessels (or such lesser orderly liquidation
value as the Mortgagee may find acceptable). 
 SECTION 6. (a) On and after the date of this Mortgage the Mortgagor will cause
to be carried and maintained in respect of the Vessels hull and machinery (“H&M”), general liability (“GL”) and protection and indemnity (“P&I”) insurance in such amounts and with such
insurance companies, underwriters, protection and indemnity associations or clubs as required by the Bonding Agreement. In the event that the Mortgagor fails to obtain or maintain any insurance required by the terms of this Mortgage or the Bonding
Agreement, the Mortgagee shall be hereby authorized by the Mortgagor to procure such insurance and all premiums and other amounts incurred or expended by the Mortgagee in procuring such insurance shall constitute additional Secured Obligations
secured by this Mortgage. The Mortgagor will cause all policies and certificates of entry with respect to H&M insurance required hereby to name the Mortgagee as an additional insured and contain a loss payable clause which, by language
reasonably acceptable to the Mortgagee, shall provide for payment to the Mortgagee or its order. The Mortgagor shall cause all policies of GL insurance to name the Mortgagee as an additional insured and shall either cause all policies of P&I
insurance to name the Mortgagee as an additional insured or shall otherwise cause the interest of the Mortgagee to be noted with respect to such policies of P&I insurance, subject to the remaining provisions of this Section 6.

 (b) In the event of an actual, constructive or compromised total loss of any Vessel, such loss shall not be adjusted or
compromised without the prior written consent of the Mortgagee, and all insurance or other payments for such shall be paid to the Mortgagee and applied by the Mortgagee as follows: first, to any costs or expenses of the Mortgagee in connection with
collecting such payment; second, to the payment of the Secured Obligations; third, to the payment of all other secured indebtedness, if any; and fourth, any surplus thereafter remaining, to the Mortgagor, its successors and assigns or to whomever
may be lawfully entitled to receive the same. 
 (c) In the event that any claim or lien is asserted against any Vessel for
loss, damage or expense which is covered by insurance required hereunder, and it is necessary for the Mortgagor to obtain a bond or supply other security to prevent arrest of the Vessel or to release the Vessel from arrest on account of such claim
or lien, the Mortgagee, on request of the Mortgagor or its agent, may, in the sole discretion of the Mortgagee, assign to any person, firm or corporation executing a surety or guarantee bond or other agreement to save or release the Vessel from such
arrest, all right, title and interest of the Mortgagee in and to said insurance covering said loss, damage or expense, as collateral security to indemnify against liability under said bond or other agreement. In any such event, Mortgagor shall
promptly notify Mortgagee in writing of any such threatened arrest and, within thirty (30) days, cause such Vessel to be released by posting security or otherwise. 
  

 - 5 - 

 (d) If requested by the Mortgagee at any time and from time to time, the Mortgagor will
deliver to the Mortgagee copies of all cover notes, binders, policies and certificates of entry in protection and indemnity associations, and all endorsements and riders amendatory thereof, in respect of insurance maintained in connection with the
Vessels. 
 (e) The Mortgagor agrees that it will not do or permit or willingly allow to be done any act by which any insurance
required by the terms of this Mortgage may be suspended, impaired or cancelled, and that it will not permit or allow any Vessel to undertake any voyage or run any risk or transport any cargo or passengers which may not be permitted by the policies
in force, without having previously insured the Vessel by additional coverage extending to such voyages, risks, passengers or cargoes. 

SECTION 7. The Mortgagor represents and warrants that it is and will at all times remain a citizen of the United States within the
meaning of Title 46, Section 802, of the United States Code, Appendix, entitled to own, document and operate vessels in the coastwise trade under the laws of the United States. The Mortgagor further represents and warrants that the address of
its chief executive office is c/o Great Lakes Dredge & Dock Corporation, 2122 York Road, Oak Brook, Illinois 60523. 

ARTICLE II 

DEFAULTS AND REMEDIES 

SECTION 1. For all purposes of this Mortgage the term “Default” shall mean when any of the following events shall have
occurred: 
 (a) An Event of Default under the Bonding Agreement; 

(b) A failure in the due and punctual observance and performance by the Mortgagor of any provision of this Mortgage which shall continue
without being cured by the Mortgagor for a period of thirty (30) days after written notice thereof shall have been given by the Mortgagee to the Mortgagor; or 

(c) The Mortgagor shall abandon any Vessel, other than in connection with an insured actual, constructive or compromised total loss of
such Vessel. 
 SECTION 2. If any Default shall occur and be continuing uncured, then at any time thereafter while such Default
shall remain uncured, the Mortgagee shall have the right to exercise any or all of the following remedies: 
 (a) Exercise all
of the rights and remedies in foreclosure and otherwise given to mortgagees by Chapter 313 or by any other provisions of applicable law; 

(b) Bring suit at law, in equity or in admiralty, as it may be advised, to recover judgment in respect of the Secured Obligations and any
and all payments due under the Secured Obligations and hereunder, and collect the same out of any and all of the collateral held by the Mortgagee for the Secured Obligations whether covered by this Mortgage or otherwise and in

  

 - 6 - 

 
connection therewith obtain a decree ordering the sale of any or all of the Vessels in accordance with subsection (d) of this Section 2; 

(c) The Mortgagee may take and enter into possession of any or all of the Vessels, at any time, wherever the same may be, without legal
process and without being responsible for loss or damage, and the Mortgagor or other person in possession forthwith upon demand of the Mortgagee shall surrender to the Mortgagee possession of each such Vessel demanded and, once in possession of any
such Vessel, the Mortgagee may, without being responsible for loss or damage, hold, lay up, lease, charter, operate or otherwise use the Vessel for such time and upon such terms as it may deem to be for its best advantage, and demand, collect and
retain all hire, freights, earnings, issues, revenues, income, profits, return premiums, salvage awards or recoveries, recoveries in general average, and all other sums due or to become due in respect of the Vessel or in respect of any insurance
thereon from any person whomsoever, accounting only for the net profits, if any, arising from such use of the Vessel and charging upon all receipts from the use of such Vessel or from the sale thereof by court proceedings or pursuant to subsection
(d) of this Section 2, all costs, expenses, charges, damages or losses by reason of such use; and if at any time the Mortgagee shall avail itself of the right herein given to it to take any or all of the Vessels, the Mortgagee shall
have the right to dock each Vessel taken, for a reasonable time at any dock, pier or other premises of any person in possession of such Vessel without charge, or to dock any or all of the Vessels taken at any other place at the cost and expense of
the Mortgagor; and 
 (d) The Mortgagee may take and enter into possession of any or all of the Vessels, at any time, wherever
the same may be, without legal process, and, once in possession of each of the Vessels taken, if it seems desirable to the Mortgagee and without being responsible for loss or damage, sell each such Vessel, at any place and at such time as the
Mortgagee may specify and in such manner as the Mortgagee may deem advisable, free from any claim by the Mortgagor in admiralty, in equity, at law or by statute, after first giving notice of the time and place of sale with a general description of
the property in the following manner: 
  

	 	(i)	By publishing such notice for ten (10) consecutive business days in a daily newspaper of general circulation published in New York City; 

 

	 	(ii)	If the place of sale should not be New York City, then also by publication of a similar notice for a similar period of time in a daily newspaper, if any, published at
the place of sale; and 

  

	 	(iii)	By mailing, by registered or certified mail, a similar notice to the Mortgagor on the day of first publication and at least thirty (30) days prior to the date
fixed for sale. 

 The Mortgagee may adjourn any such sale from time to time by announcement at the time and place
appointed for such sale or for such adjourned sale, and without further notice or publication the Mortgagee may make any such sale at the time and place to which the same shall be so adjourned. Any such sale may be conducted without bringing the
Vessels subject to such sale to be sold to the place designated for such sale and in such manner as the Mortgagee may deem to be for its best advantage. 
  

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 SECTION 3. Any sale of any or all of the Vessels made pursuant to this Mortgage, whether
under the power of sale hereby granted or any judicial proceedings, shall operate to divest all right, title and interest of any nature whatsoever of the Mortgagor therein and thereto, and shall bar the Mortgagor, its successors and assigns, and all
persons claiming by, through or under them from claiming any interest in or with respect to each Vessel sold. No purchaser shall be bound to inquire whether notice has been given, or whether any Default has occurred, or as to the propriety of the
sale, or as to the application of the proceeds thereof. At any such sale, the Mortgagee may bid for and purchase such property and upon compliance with the terms of sale may hold, retain and dispose of such property without further accountability
therefor. 
 SECTION 4. The Mortgagee is hereby appointed attorney-in-fact of the Mortgagor in the name of the Mortgagor at any
time following the occurrence and during the continuation of any Default, to execute and deliver to any purchaser aforesaid, and is hereby vested with full power and authority to make, in the name and in behalf of the Mortgagor, a good conveyance of
the title to each Vessel sold. In the event of any sale of a Vessel, under any power herein contained, the Mortgagor will, if and when required by the Mortgagee, execute such form of conveyance of such Vessel, as the Mortgagee may direct or approve.
The Mortgagor hereby consents to the appointment of a consent keeper or substitute custodian by the Mortgagee with the costs thereof to be a cost of the sale to be paid from the proceeds of the sale or by the Mortgagor and, therefore, secured by
this Mortgage as additional Secured Obligations. 
 SECTION 5. Without limiting in any way the provisions of
Section 6 of Article I hereof, the Mortgagee is hereby appointed attorney-in-fact of the Mortgagor in the name of the Mortgagor at any time following the occurrence and during the continuation of any Default, to demand,
collect, receive, compromise and sue for, so far as may be permitted by law, all freight, hire, earnings, issues, revenues, income and profits of any or all of the Vessels and all amounts due from underwriters under any insurance thereon as payment
of losses or as return premiums or otherwise, salvage awards and recoveries, recoveries in general average or otherwise, and all other sums due or to become due at the time of the happening of any Default in respect of such Vessel or Vessels, or in
respect of any insurance thereon, from any person whomsoever, and to make, give and execute in the name of the Mortgagor, acquittances, receipts, releases or other discharges for the same, whether under seal or otherwise, and to endorse and accept
in the name of the Mortgagor all checks, notes, drafts, warrants, agreements and other instruments in writing with respect to the foregoing. 

SECTION 6. The Mortgagee may, whenever any right to enter and take possession of any or all of the Vessels accrues to the Mortgagee
hereunder, require the Mortgagor to deliver, and the Mortgagor shall on demand, at its own cost and expense, deliver, to the Mortgagee each Vessel as demanded. If any legal proceedings shall be taken to enforce any right under this Mortgage, the
Mortgagee shall be entitled as a matter of right to the appointment of a receiver of any or all of the Vessels and of the freights, hire, earnings, issues, revenues, income and profits due or to become due and arising from the operation thereof.

 SECTION 7. Upon the occurrence and during the continuation of a Default, the Mortgagor authorizes and empowers the Mortgagee
or its appointees or any of them to appear in the name of the Mortgagor, its successors and assigns, in any court of any country or nation of 

 

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the world where a suit is pending against any of the Vessels because of or on account of any alleged lien against such Vessel from which such Vessel has not been released other than the lien of
this Mortgage, and to take such proceedings as to her as may seem proper towards the defense of such suit and the purchase or discharge of such lien, and all expenditures made or incurred by it for the purpose of such defense or purchase or
discharge shall be a debt due from the Mortgagor, its successors and assigns, to the Mortgagee, and shall be secured by the lien of this Mortgage in like manner and extent as if the amount and description thereof were written herein. 

SECTION 8. Each and every power and remedy herein given to the Mortgagee shall be cumulative and shall be in addition to every other
power and remedy herein given or now or hereafter existing at law, in equity, in admiralty or by statute, and each and every power and remedy whether herein given or otherwise existing may be exercised from time to time and as often and in such
order as may be deemed expedient by the Mortgagee, and the exercise or the beginning of the exercise of any power or remedy shall not be construed to be a waiver of the right to exercise at the same time or thereafter any other power or remedy. No
delay or omission by the Mortgagee in the exercise of any right or power or in the pursuance of any remedy accruing upon any Default shall impair any such right, power or remedy or be construed to be a waiver of any such Default or to be an
acquiescence therein; nor shall the acceptance by the Mortgagee of any security or of any payment of or on account of the amounts due in respect of the Secured Obligations after any Default or of any payment on account of any past Default be
construed to be a waiver of any right to take advantage of any future Default or of any past Default not completely cured thereby. 

SECTION 9. If at any time after a Default and prior to the actual sale of any of the Vessels by the Mortgagee or prior to any foreclosure
proceedings, the Mortgagor offers to cure completely all Defaults and to pay all expenses, advances and damages to the Mortgagee consequent on such Defaults, then the Mortgagee shall accept such offer, cure and payment and restore the Mortgagor to
its former position, but such action shall not affect any subsequent Default or impair any rights consequent thereon. 
 SECTION
10. In case the Mortgagee shall have proceeded to enforce any right, power or remedy under this Mortgage by foreclosure, entry or otherwise, and such proceedings shall have been discontinued or abandoned for any reason or shall have been determined
adversely to the Mortgagee, then and in every such case the Mortgagor and the Mortgagee shall be restored to their former positions and rights hereunder with respect to the property subject or intended to be subject to this Mortgage, and all rights,
remedies and powers of the Mortgagee shall continue as if no such proceedings had been taken. 
 SECTION 11. The proceeds of any
sale of any or all of the Vessels, earnings of any charter operation or other use of any or all of the Vessels by the Mortgagee under any of the powers herein specified, and any and all other moneys received by the Mortgagee pursuant to or under the
terms of this Mortgage or in any proceedings hereunder, the application of which has not elsewhere herein, in the Bonding Agreement or in the Intercreditor Agreement, been specifically provided for, shall be applied or held as follows: 

 

	 	First:	 Applied to the payment of all reasonable out-of-pocket expenses and charges, including the expenses of any sale, the expenses of any retaking,

  

 - 9 - 

	 	 
attorneys’ fees, court costs, and any other expenses or advances made or incurred by the Mortgagee in the protection of its rights or the pursuance of its remedies hereunder;

  

	 	Second:	Applied to the payment of any damages or injuries sustained by the Mortgagee occasioned by noncompliance by the Mortgagor with the terms and provisions of this Mortgage
and to furnish indemnity in the proper amount against any other liens or other encumbrances which have or may have priority over those established by this Mortgage; 

 

	 	Third:	Applied to the payment of the Secured Obligations in such priority as the Mortgagee may elect; 

 

	 	Fourth:	Applied to the payment of any other obligations secured by the Vessels which are known to the Mortgagee to exist and to be so secured; and 

 

	 	Fifth:	Any surplus thereafter remaining shall be paid promptly to the Mortgagor. 

SECTION 12. Until one or more Defaults shall occur and continue in existence, the Mortgagor, subject to the provisions of this Mortgage,
(a) shall be suffered and permitted to retain actual possession and use of the Vessels and (b) shall have the right, from time to time, in its discretion, and without application to the Mortgagee, and without obtaining a release thereof by
the Mortgagee, to dispose of, free from the lien hereof, any boilers, engines, machinery, masts, spars, sails, rigging, boats, anchors, cables, chains, tackle, apparel, furniture, fittings, cranes, drills, excavators, shovels, construction or other
equipment or any other appurtenances of the Vessels that are no longer useful, necessary, profitable or advantageous in the operation of the Vessels. 

ARTICLE III 

SUNDRY PROVISIONS 

SECTION 1. For the purposes of this Mortgage and Chapter 313, the maximum amount of the direct or contingent obligations outstanding at
any one time that is or may become secured by this Mortgage is the principal sum of U.S. $125,000,000, plus interest, expenses and fees. The discharge amount is the same as the maximum amount. 

SECTION 2. The names and addresses of each of the parties to this Mortgage are as follows: 

(a) Mortgagor: Great Lakes Dredge & Dock Company, c/o Great Lakes Dredge & Dock Corporation, 2122 York Road, Oak Brook,
Illinois 60523; 
 (b) Mortgagee: Travelers Casualty and Surety Company and Travelers Casualty and Surety Company of
America, One Tower Square, 5PB, Hartford, Connecticut 06183. 
 SECTION 3. All of the covenants, promises, stipulations and
agreements of the Mortgagor contained in this Mortgage shall bind the Mortgagor and its successors and assigns 
  

 - 10 - 

 
(including successors by way of merger, acquisition or similar event) and shall inure to the benefit of the Mortgagee and its successors and assigns(including successors by way of merger,
acquisition or similar event). In the event of any assignment of this Mortgage, the term “Mortgagee”, as used in this Mortgage, shall be deemed to mean any such assignee. 

SECTION 4. Wherever and whenever herein any right, power or authority is granted or given to the Mortgagee, such right, power or
authority may be exercised in all cases by the Mortgagee or such agent or agents as it may appoint, and the act or acts of such agent or agents when taken shall constitute the act of the Mortgagee hereunder. 

SECTION 5. This Mortgage may be executed in any number of counterparts, each of which shall be an original; but such counterparts shall
together constitute but one and the same instrument. 
 SECTION 6. Unless otherwise specifically provided herein, all notices
required or permitted by the terms hereof shall be given in the manner and with the effect provided for in the Bonding Agreement. 

SECTION 7. At the reasonable request of the Mortgagee, to the extent reasonably available to the Mortgagor, the Mortgagor will cause to
be delivered to Mortgagee for inspection, copies of any and all material contracts and documents relating to the Vessels, whether on board or not, subject to the confidentiality provisions set forth in the Bonding Agreement. 

SECTION 8. This Mortgage may be amended or supplemented from time to time, but only by an instrument in writing executed by the Mortgagor
and the Mortgagee and duly acknowledged pursuant to Chapter 313. 
 SECTION 9. THIS MORTGAGE AND ALL THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER AND THEIR SUCCESSORS AND ASSIGNS SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW BUT EXCLUDING ALL OTHER CHOICE OF LAW AND CONFLICTS OF
LAWS, AND EXCEPT TO THE EXTENT PREEMPTED BY APPLICABLE FEDERAL AND MARITIME LAWS OF THE UNITED STATES. 
 SECTION 10. So long as
the first preferred ship mortgages on the Vessels in favor of the Lenders remain in effect and constitute liens prior to the lien of this Mortgage, the provisions of such first preferred ship mortgages shall take precedence over any conflicting
provisions of this Mortgage. References in this Mortgage to the lien hereof being “second” shall not be construed as subordinating this Mortgage to any lien other than the liens of such first preferred ship mortgages, nor as subordinating
this Mortgage to the liens of such first preferred ship mortgages for any period except for so long as they constitute liens prior to the lien of this Mortgage. 

SECTION 11. So long as the Intercreditor Agreement remains in effect, any provision set forth in the Intercreditor Agreement (including
without limitation any provision 
  

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limiting the use of the Vessels by the Mortgagee or foreclosure actions by the Mortgagee or prescribing the use or application of proceeds of the Vessels) which conflicts with any provision of
this Mortgage shall govern. 
 SECTION 12. The Mortgagee may permit the separate discharge of one or more Vessels or of property
that is not a vessel from the lien of this Mortgage as permitted by the Bonding Agreement. 
 SECTION 13. Notwithstanding any
other provisions of this Mortgage to the contrary, nothing herein shall waive the preferred status of this Mortgage and if any provision herein shall be construed to waive such status, such provision shall, to the extent so construed, be void and of
no effect. 
 Execution Follows 

*     *     *     * 

 

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 IN WITNESS WHEREOF, the Mortgagor has executed this Mortgage as of the day and year first
above written. 
  

			
	 GREAT LAKES DREDGE & DOCK

    COMPANY

		
	By:	 	  

	Name:	 	  

	Title:	 	  

ACKNOWLEDGMENT 
  

					
	STATE OF ILLINOIS	  	            )	  	
		  	            )	  	ss.:
	COUNTY OF	  	            )	  	

 The foregoing instrument was acknowledged before me this 22nd day of December, 2003, by
                    , the
                     of GREAT LAKES DREDGE & DOCK COMPANY, a New Jersey corporation, on behalf of the corporation. 

Notary Public 

 SCHEDULE A 

LIST OF VESSELS 
  

			
	 VESSEL NAME
	 	 OFFICIAL NUMBER

	 ALASKA

ILLINOIS

CALIFORNIA

G.L. 51

G.L. 54

MANHATTAN ISLAND

G.L. 32

G.L. 64

G.L. 230

G.L. 231
	 	 283416

580274

292779

288765

560225

583706

609828

922737

695575

695576

 EXHIBIT F-2 

FORM OF 

SECOND PREFERRED SHIP MORTGAGE 

Given By 

GREAT LAKES DREDGE & DOCK CORPORATION 

As Owner 

In Favor Of 

TRAVELERS CASUALTY AND SURETY COMPANY 

And 

TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA 

As Mortgagees 

On the United States Flag Vessel 

SUGAR ISLAND 

Official Number 606519 

 SYNOPSIS OF MORTGAGE 

 

					
	 	  	 VESSEL NAME
	  	 OFFICIAL NUMBER

	 Vessel Subject
 to
Instrument
	  	SUGAR ISLAND	  	606519
			
	Type of Instrument:	  	Second Preferred Ship Mortgage	  	
			
	Date of Instrument:	  	December 22, 2003	  	
			
	Name of Owner:	  	 Great Lakes Dredge & Dock

Corporation
	  	
			
	(Percentage Owned):	  	100%	  	
			
	Address of Owner	  	 2122 York Road
 Oak Brook,
IL 60523
	  	
			
	Name of Mortgagees:	  	 Travelers Casualty and Surety

Company and Travelers
 Casualty and Surety
Company
 of America
	  	
			
	Address of Mortgagee:	  	 One Tower Square, 5PB

Hartford, CT 06183
	  	
			
	Total Amount of Mortgage	  	 One Hundred Twenty-Five

Million United States Dollars
 ($125,000,000)
plus interest,
 expenses and fees
	  	

 SECOND PREFERRED SHIP MORTGAGE 

THIS SECOND PREFERRED SHIP MORTGAGE is made and dated as of December 22, 2003 (hereinafter the “Mortgage”) by GREAT
LAKES DREDGE & DOCK CORPORATION, a Delaware corporation, with its address 2122 York Road, Oak Brook, Illinois 60523 (the “Mortgagor”), to TRAVELERS CASUALTY AND SURETY COMPANY, a Connecticut corporation
(“TCASC”), and TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA, a Connecticut corporation (“Travelers America”, and together with TCASC, “Travelers”) each having their address at One Tower Square,
5PB, Hartford, Connecticut 06183 (collectively, the “Mortgagee”, each holding an individual interest as a joint tenant in the vessel mortgaged). 

WHEREAS, the Mortgagor is the sole owner of the vessel hereinafter identified as the “Vessel”, which vessel has been
duly documented in the name of the Mortgagor under the laws of the United States; 
 WHEREAS, the Mortgagor, Great Lakes
Dredge & Dock Company, a New Jersey corporation (Mortgagor’s direct subsidiary) (“Subsidiary”), various affiliates or subsidiaries of the Mortgagor, and the Mortgagee are parties to that certain Third Amended and Restated
Underwriting and Continuing Indemnity Agreement dated as of December 22, 2003 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Bonding Agreement”), which Bonding Agreement
amended and restated in its entirety that certain Second Amended and Restated Underwriting and Continuing Indemnity Agreement dated as of August 19, 1998 among, inter alia, the Mortgagor and the Mortgagee (the “Second Amendment and
Restatement”), which Second Amendment and Restatement amended and restated in its entirety that certain First Amended and Restated Underwriting and Continuing Indemnity Agreement dated as of September 24, 1997 among, inter alia, the
Mortgagor and the Mortgagee; 
 WHEREAS, pursuant to the Bonding Agreement, the Mortgagor and such affiliates or subsidiaries
have incurred or will incur obligations (monetary or otherwise) to the Mortgagee (which obligations and all other payment and performance obligations of the Mortgagor under this Mortgage are hereinafter referred to collectively as the
“Secured Obligations”); 
 WHEREAS, the Mortgagor previously agreed to secure the Secured Obligations to the
Mortgagee under the Bonding Agreement with, among other things, that certain First Preferred Fleet Mortgage (the “Original Mortgage”) dated as of September 24, 1997 by the Subsidiary to the Mortgagee; 

WHEREAS, the Mortgagor has agreed to replace the Original Mortgage and secure the Secured Obligations with, among other things, second
preferred ship mortgages on certain vessels owned by the Mortgagor and documented under the laws of the United States in the maximum principal amount of U.S. $125,000,000, plus interest, expenses and fees; 

 WHEREAS, the Mortgagor has agreed to secure certain obligations to Bank of America N.A., as
Administrative Agent for certain financial institutions (the “Lenders”) with a first preferred ship mortgage on the Vessel which is the subject of this Mortgage; 

WHEREAS, to deal with, among other things, the respective rights of Mortgagee and the Administrative Agent for the benefit of the
Lenders, with respect to the Vessel and the proceeds thereof, the Mortgagee has entered into that certain Intercreditor Agreement dated as of the date hereof by and among the Mortgagor, certain subsidiaries of the Mortgagor from time to time party
thereto, the Mortgagee and Travelers (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Intercreditor Agreement”); 

WHEREAS, the Bonding Agreement (excluding Exhibits and Schedules) is attached to this Mortgage as Exhibit A hereto; and

 WHEREAS, the Intercreditor Agreement (excluding Exhibits and Schedules) is attached to this Mortgage as Exhibit B
hereto; 
 NOW THEREFORE, THIS MORTGAGE WITNESSETH that in consideration of the premises and of the additional covenants herein
contained and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, and as security only for the performance and payment of the Secured Obligations when, if and as due, and all other sums which may be
secured by this Mortgage, the Mortgagor has granted, conveyed, mortgaged, pledged, granted a security interest in, confirmed, transferred and set over, and by these presents does grant, convey, mortgage, pledge, grant a security interest in,
confirm, assign, transfer and set over unto the Mortgagee the whole of the Vessel identified in Schedule A attached hereto and incorporated herein, together with all of her boilers, engines, machinery, masts, spars, sails, rigging, boats,
anchors, cables, chains, tackle, apparel, furniture, fittings, cranes, drills, excavators, shovels, construction and other equipment and all other appurtenances thereunto appertaining or belonging, whether now or hereafter acquired, and also any and
all additions, improvements and replacements hereafter made in or to said Vessel, or any of them, or in or to her equipment and appurtenances aforesaid (the “Vessel”), as well as the proceeds of the Vessel; 

TO HAVE AND TO HOLD all and singular the foregoing mortgaged and described property unto the Mortgagee and its successors and assigns
(including successors by way of merger, acquisition or similar event), to its and its successors’ and assigns’ own use, benefit and behoof forever; 

PROVIDED, HOWEVER, and these presents are upon the condition that the Mortgagee agrees that this Mortgage and the estate and rights
hereby granted shall not become effective until the due filing of this Mortgage in accordance with the provisions of Chapter 313 of Title 46, United States Code, as amended (“Chapter 313”) and shall cease, determine and terminate
upon payment and performance in full of all the Secured Obligations, otherwise to remain in full force and effect. 
 IT IS
HEREBY COVENANTED, DECLARED AND AGREED that the property above described is to be held subject to the further agreements and conditions hereinafter set forth. 
  

 - 2 - 

 ARTICLE I 

REPRESENTATIONS, WARRANTIES AND 

COVENANTS OF THE MORTGAGOR 

The Mortgagor represents, warrants, covenants and agrees with Mortgagee as follows: 

SECTION l. The Mortgagor hereby agrees with the Mortgagee duly and promptly to perform and to observe the Secured Obligations.

 SECTION 2. The Mortgagor will cause this Mortgage to be duly filed in accordance with the provisions of Chapter 313 and will
otherwise cause compliance with and satisfaction of all of the provisions of Chapter 313 in order to establish and maintain this Mortgage as a second preferred mortgage lien thereunder upon the Vessel and upon all renewals, replacements,
supplements, amendments and improvements made in or to the same for the amount indicated in Section 1 of Article III hereof. The Mortgagor shall promptly pay and discharge all United States Coast Guard fees and expenses in
connection with the recordation of this Mortgage and any such renewals, replacements, supplements, amendments and improvements. 

SECTION 3. In the event that this Mortgage or the Secured Obligations, or any provision hereof or thereof, shall be deemed invalidated in
whole or in part by reason of any present or future law or any decision of any authoritative court, or if the documents at any time held by the Mortgagee shall be deemed by the Mortgagee for any reason insufficient to carry out the true intent and
spirit of this Mortgage, or the Secured Obligations, then, from time to time, the Mortgagor will execute, on its own behalf such other and further assurances and documents as in the reasonable opinion of the Mortgagee may be required more
effectively to subject the Vessel to the terms and provisions of this Mortgage, including the payment of all sums required to be paid under the Secured Obligations hereby secured. 

SECTION 4. (a) The Mortgagor shall place a properly certified copy of this Mortgage on board the Vessel with its papers and will cause a
notice, reading as follows (or containing such additional information relating to any permitted mortgage that is placed on a Vessel as may be approved by the Mortgagor) printed in plain type of such size that the paragraph of reading matter shall
cover a space not less than six inches wide by nine inches high, and framed, to be placed and kept prominently exhibited in the chart room and in the master’s cabin on the Vessel if such room and cabin are contained in the Vessel and, if not,
where such notices customarily are kept for vessels of the type of the Vessel: 
  

 - 3 - 

 “NOTICE OF SHIP MORTGAGE 

This vessel is owned by Great Lakes Dredge & Dock Corporation, a Delaware corporation, and is covered by a
Second Preferred Fleet Mortgage in favor of Travelers Casualty and Surety Company and Travelers Casualty and Surety Company of America, under authority of Chapter 313 of Title 46 of the United States Code, as amended. Under the terms of said
Mortgage, neither the owner, the master or agent of this vessel nor any other person has any right, power or authority to create, incur, or permit to be placed or imposed upon this vessel any lien whatsoever, other than liens for wages of a
stevedore when employed directly by a person listed in 46 U.S.C. 31341, for wages of the crew in respect of this vessel (including wages of the master to the extent provided by 46 U.S.C. 11112), general average or for salvage (including contract
salvage), liens fully covered by insurance and any deductible applicable thereto, liens permitted by Section 6.11 of the Bonding Agreement or, to the extent they are liens subordinate to the liens of the said Mortgage, certain liens in
favor of Bank of America N.A., as Administrative Agent, and other liens incident to current operations or for repairs.” 

(b) The Mortgagor will not create, incur, permit to be placed or imposed upon or permit to exist upon the Vessel or any of the proceeds
of the Vessel or sums due or to become due in respect of the Vessel or in respect of insurance thereon any lien whatsoever, other than liens contemplated by the aforesaid notice. In due course and in any event within thirty (30) days after the
same becomes due and payable, the Mortgagor shall pay or cause to be discharged or make adequate provision for the satisfaction or discharge of all material claims or demands with respect to the Vessel, unless such claims or demands are being
contested in good faith. 
 SECTION 5. (a) The Mortgagor will not transfer or change the flag of the Vessel without the written
consent of the Mortgagee first had and obtained, and any such written consent to any one transfer or change of flag shall not be construed to be a waiver of this provision with respect to any subsequent proposed transfer or change of flag.

 (b) The Mortgagor will not cause or permit the Vessel to be operated in any manner contrary to law and the Mortgagor will not
engage in any unlawful trade or violate any law or expose the Vessel to penalty or forfeiture, except where any such operation, engagement, violation or exposure could not reasonably be expected to have a Material Adverse Change, and will not do, or
suffer or permit to be done, anything which can or may injuriously affect in any material respect the registration, documentation, or trade endorsement of a Vessel under the laws and regulations of the United States. 

(c) Without limiting in any way the right of the Mortgagee to decline to grant any written consent described in Section 5(a)
or to condition any such written consent on other conditions, it is expressly understood and agreed that the Mortgagee shall not grant any such written consent unless either: (i) the Mortgagee is satisfied that all actions necessary or
desirable have been taken so that after giving effect to the proposed transfer or change the Mortgagee will have a valid and enforceable second lien on the Vessel which is the subject hereof providing rights (including practically realizable
enforcement rights) and benefits to the Mortgagee with 
  

 - 4 - 

 
respect to the Vessel at least as favorable to the Mortgagee as those granted to the Mortgagee with respect thereto by this Mortgage or (ii) the Mortgagor substitutes for the Vessel as
collateral under this Mortgage another vessel owned by the Mortgagor (including all appurtenances thereunto appertaining or belonging and any and all additions, improvements and replacements thereto) reasonably acceptable to the Mortgagee having an
orderly liquidation value reasonably equal to or greater than the then orderly liquidation value of the Vessel (or such lesser orderly liquidation value as the Mortgagee may find acceptable). 

SECTION 6. (a) On and after the date of this Mortgage the Mortgagor will cause to be carried and maintained in respect of the Vessel hull
and machinery (“H&M”), general liability (“GL”) and protection and indemnity (“P&I”) insurance in such amounts and with such insurance companies, underwriters, protection and indemnity
associations or clubs as required by the Bonding Agreement. In the event that the Mortgagor fails to obtain or maintain any insurance required by the terms of this Mortgage or the Bonding Agreement, the Mortgagee shall be hereby authorized by the
Mortgagor to procure such insurance and all premiums and other amounts incurred or expended by the Mortgagee in procuring such insurance shall constitute additional Secured Obligations secured by this Mortgage. The Mortgagor will cause all policies
and certificates of entry with respect to H&M insurance required hereby to name the Mortgagee as an additional insured and contain a loss payable clause which, by language reasonably acceptable to the Mortgagee, shall provide for payment to the
Mortgagee or its order. The Mortgagor shall cause all policies of GL insurance to name the Mortgagee as an additional insured and shall either cause all policies of P&I insurance to name the Mortgagee as an additional insured or shall otherwise
cause the interest of the Mortgagee to be noted with respect to such policies of P&I insurance, subject to the remaining provisions of this Section 6. 

(b) In the event of an actual, constructive or compromised total loss of the Vessel, such loss shall not be adjusted or compromised
without the prior written consent of the Mortgagee, and all insurance or other payments for such shall be paid to the Mortgagee and applied by the Mortgagee as follows: first, to any costs or expenses of the Mortgagee in connection with collecting
such payment; second, to the payment of the Secured Obligations; third, to the payment of all other secured indebtedness, if any; and fourth, any surplus thereafter remaining, to the Mortgagor, its successors and assigns or to whomever may be
lawfully entitled to receive the same. 
 (c) In the event that any claim or lien is asserted against the Vessel for loss,
damage or expense which is covered by insurance required hereunder, and it is necessary for the Mortgagor to obtain a bond or supply other security to prevent arrest of the Vessel or to release the Vessel from arrest on account of such claim or
lien, the Mortgagee, on request of the Mortgagor or its agent, may, in the sole discretion of the Mortgagee, assign to any person, firm or corporation executing a surety or guarantee bond or other agreement to save or release the Vessel from such
arrest, all right, title and interest of the Mortgagee in and to said insurance covering said loss, damage or expense, as collateral security to indemnify against liability under said bond or other agreement. In any such event, Mortgagor shall
promptly notify Mortgagee in writing of any such threatened arrest and, within thirty (30) days, cause the Vessel to be released by posting security or otherwise. 
  

 - 5 - 

 (d) If requested by the Mortgagee at any time and from time to time, the Mortgagor will
deliver to the Mortgagee copies of all cover notes, binders, policies and certificates of entry in protection and indemnity associations, and all endorsements and riders amendatory thereof, in respect of insurance maintained in connection with the
Vessel. 
 (e) The Mortgagor agrees that it will not do or permit or willingly allow to be done any act by which any insurance
required by the terms of this Mortgage may be suspended, impaired or cancelled, and that it will not permit or allow the Vessel to undertake any voyage or run any risk or transport any cargo or passengers which may not be permitted by the policies
in force, without having previously insured the Vessel by additional coverage extending to such voyages, risks, passengers or cargoes. 

SECTION 7. The Mortgagor represents and warrants that it is and will at all times remain a citizen of the United States within the
meaning of Title 46, Section 802, of the United States Code, Appendix, entitled to own, document and operate vessels in the coastwise trade under the laws of the United States. The Mortgagor further represents and warrants that the address of
its chief executive office is Great Lakes Dredge & Dock Corporation, 2122 York Road, Oak Brook, Illinois 60523. 

ARTICLE II 

DEFAULTS AND REMEDIES 

SECTION 1. For all purposes of this Mortgage the term “Default” shall mean when any of the following events shall have
occurred: 
 (a) An Event of Default under the Bonding Agreement; 

(b) A failure in the due and punctual observance and performance by the Mortgagor of any provision of this Mortgage which shall continue
without being cured by the Mortgagor for a period of thirty (30) days after written notice thereof shall have been given by the Mortgagee to the Mortgagor; or 

(c) The Mortgagor shall abandon the Vessel, other than in connection with an insured actual, constructive or compromised total loss of
the Vessel. 
 SECTION 2. If any Default shall occur and be continuing uncured, then at any time thereafter while such Default
shall remain uncured, the Mortgagee shall have the right to exercise any or all of the following remedies: 
 (a) Exercise all
of the rights and remedies in foreclosure and otherwise given to mortgagees by Chapter 313 or by any other provisions of applicable law; 

(b) Bring suit at law, in equity or in admiralty, as it may be advised, to recover judgment in respect of the Secured Obligations and any
and all payments due under the Secured Obligations and hereunder, and collect the same out of any and all of the collateral held by the Mortgagee for the Secured Obligations whether covered by this Mortgage or otherwise and in

  

 - 6 - 

 
connection therewith obtain a decree ordering the sale of the Vessel in accordance with subsection (d) of this Section 2; 

(c) The Mortgagee may take and enter into possession of the Vessel, at any time, wherever the same may be, without legal process and
without being responsible for loss or damage, and the Mortgagor or other person in possession forthwith upon demand of the Mortgagee shall surrender to the Mortgagee possession of the Vessel demanded and, once in possession of the Vessel, the
Mortgagee may, without being responsible for loss or damage, hold, lay up, lease, charter, operate or otherwise use the Vessel for such time and upon such terms as it may deem to be for its best advantage, and demand, collect and retain all hire,
freights, earnings, issues, revenues, income, profits, return premiums, salvage awards or recoveries, recoveries in general average, and all other sums due or to become due in respect of the Vessel or in respect of any insurance thereon from any
person whomsoever, accounting only for the net profits, if any, arising from such use of the Vessel and charging upon all receipts from the use of the Vessel or from the sale thereof by court proceedings or pursuant to subsection (d) of this
Section 2, all costs, expenses, charges, damages or losses by reason of such use; and if at any time the Mortgagee shall avail itself of the right herein given to it to take the Vessel, the Mortgagee shall have the right to dock the
Vessel, for a reasonable time at any dock, pier or other premises of any person in possession of the Vessel without charge, or to dock the Vessel taken at any other place at the cost and expense of the Mortgagor; and 

(d) The Mortgagee may take and enter into possession of the Vessel, at any time, wherever the same may be, without legal process, and,
once in possession of the Vessel, if it seems desirable to the Mortgagee and without being responsible for loss or damage, sell the Vessel, at any place and at such time as the Mortgagee may specify and in such manner as the Mortgagee may deem
advisable, free from any claim by the Mortgagor in admiralty, in equity, at law or by statute, after first giving notice of the time and place of sale with a general description of the property in the following manner: 

 

	 	(i)	By publishing such notice for ten (10) consecutive business days in a daily newspaper of general circulation published in New York City; 

 

	 	(ii)	If the place of sale should not be New York City, then also by publication of a similar notice for a similar period of time in a daily newspaper, if any, published at
the place of sale; and 

  

	 	(iii)	By mailing, by registered or certified mail, a similar notice to the Mortgagor on the day of first publication and at least thirty (30) days prior to the date
fixed for sale. 

 The Mortgagee may adjourn any such sale from time to time by announcement at the time and place
appointed for such sale or for such adjourned sale, and without further notice or publication the Mortgagee may make any such sale at the time and place to which the same shall be so adjourned. Any such sale may be conducted without bringing the
Vessel to the place designated for such sale and in such manner as the Mortgagee may deem to be for its best advantage. 
  

 - 7 - 

 SECTION 3. Any sale of the Vessel made pursuant to this Mortgage, whether under the power of
sale hereby granted or any judicial proceedings, shall operate to divest all right, title and interest of any nature whatsoever of the Mortgagor therein and thereto, and shall bar the Mortgagor, its successors and assigns, and all persons claiming
by, through or under them from claiming any interest in or with respect to the Vessel. No purchaser shall be bound to inquire whether notice has been given, or whether any Default has occurred, or as to the propriety of the sale, or as to the
application of the proceeds thereof. At any such sale, the Mortgagee may bid for and purchase such property and upon compliance with the terms of sale may hold, retain and dispose of such property without further accountability therefor. 

SECTION 4. The Mortgagee is hereby appointed attorney-in-fact of the Mortgagor in the name of the Mortgagor at any time following the
occurrence and during the continuation of any Default, to execute and deliver to any purchaser aforesaid, and is hereby vested with full power and authority to make, in the name and in behalf of the Mortgagor, a good conveyance of the title to the
Vessel. In the event of any sale of the Vessel, under any power herein contained, the Mortgagor will, if and when required by the Mortgagee, execute such form of conveyance of the Vessel, as the Mortgagee may direct or approve. The Mortgagor hereby
consents to the appointment of a consent keeper or substitute custodian by the Mortgagee with the costs thereof to be a cost of the sale to be paid from the proceeds of the sale or by the Mortgagor and, therefore, secured by this Mortgage as
additional Secured Obligations. 
 SECTION 5. Without limiting in any way the provisions of Section 6 of
Article I hereof, the Mortgagee is hereby appointed attorney-in-fact of the Mortgagor in the name of the Mortgagor at any time following the occurrence and during the continuation of any Default, to demand, collect, receive, compromise
and sue for, so far as may be permitted by law, all freight, hire, earnings, issues, revenues, income and profits of the Vessel and all amounts due from underwriters under any insurance thereon as payment of losses or as return premiums or
otherwise, salvage awards and recoveries, recoveries in general average or otherwise, and all other sums due or to become due at the time of the happening of any Default in respect of the Vessel, or in respect of any insurance thereon, from any
person whomsoever, and to make, give and execute in the name of the Mortgagor, acquittances, receipts, releases or other discharges for the same, whether under seal or otherwise, and to endorse and accept in the name of the Mortgagor all checks,
notes, drafts, warrants, agreements and other instruments in writing with respect to the foregoing. 
 SECTION 6. The Mortgagee
may, whenever any right to enter and take possession of the Vessel accrues to the Mortgagee hereunder, require the Mortgagor to deliver, and the Mortgagor shall on demand, at its own cost and expense, deliver, to the Mortgagee the Vessel as
demanded. If any legal proceedings shall be taken to enforce any right under this Mortgage, the Mortgagee shall be entitled as a matter of right to the appointment of a receiver of the Vessel and of the freights, hire, earnings, issues, revenues,
income and profits due or to become due and arising from the operation thereof. 
 SECTION 7. Upon the occurrence and during the
continuation of a Default, the Mortgagor authorizes and empowers the Mortgagee or its appointees or any of them to appear in the name of the Mortgagor, its successors and assigns, in any court of any country or nation of the world where a suit is
pending against any the Vessel because of or on account of any alleged 
  

 - 8 - 

 
lien against the Vessel from which the Vessel has not been released other than the lien of this Mortgage, and to take such proceedings as to her as may seem proper towards the defense of such
suit and the purchase or discharge of such lien, and all expenditures made or incurred by it for the purpose of such defense or purchase or discharge shall be a debt due from the Mortgagor, its successors and assigns, to the Mortgagee, and shall be
secured by the lien of this Mortgage in like manner and extent as if the amount and description thereof were written herein. 

SECTION 8. Each and every power and remedy herein given to the Mortgagee shall be cumulative and shall be in addition to every other
power and remedy herein given or now or hereafter existing at law, in equity, in admiralty or by statute, and each and every power and remedy whether herein given or otherwise existing may be exercised from time to time and as often and in such
order as may be deemed expedient by the Mortgagee, and the exercise or the beginning of the exercise of any power or remedy shall not be construed to be a waiver of the right to exercise at the same time or thereafter any other power or remedy. No
delay or omission by the Mortgagee in the exercise of any right or power or in the pursuance of any remedy accruing upon any Default shall impair any such right, power or remedy or be construed to be a waiver of any such Default or to be an
acquiescence therein; nor shall the acceptance by the Mortgagee of any security or of any payment of or on account of the amounts due in respect of the Secured Obligations after any Default or of any payment on account of any past Default be
construed to be a waiver of any right to take advantage of any future Default or of any past Default not completely cured thereby. 

SECTION 9. If at any time after a Default and prior to the actual sale of the Vessel by the Mortgagee or prior to any foreclosure
proceedings, the Mortgagor offers to cure completely all Defaults and to pay all expenses, advances and damages to the Mortgagee consequent on such Defaults, then the Mortgagee shall accept such offer, cure and payment and restore the Mortgagor to
its former position, but such action shall not affect any subsequent Default or impair any rights consequent thereon. 
 SECTION
10. In case the Mortgagee shall have proceeded to enforce any right, power or remedy under this Mortgage by foreclosure, entry or otherwise, and such proceedings shall have been discontinued or abandoned for any reason or shall have been determined
adversely to the Mortgagee, then and in every such case the Mortgagor and the Mortgagee shall be restored to their former positions and rights hereunder with respect to the property subject or intended to be subject to this Mortgage, and all rights,
remedies and powers of the Mortgagee shall continue as if no such proceedings had been taken. 
 SECTION 11. The proceeds of any
sale of the Vessel, earnings of any charter operation or other use of the Vessel by the Mortgagee under any of the powers herein specified, and any and all other moneys received by the Mortgagee pursuant to or under the terms of this Mortgage or in
any proceedings hereunder, the application of which has not elsewhere herein, in the Bonding Agreement or in the Intercreditor Agreement, been specifically provided for, shall be applied or held as follows: 

 

	 	First:	 Applied to the payment of all reasonable out-of-pocket expenses and charges, including the expenses of any sale, the expenses of any retaking,
attorneys’ fees, court costs, and any other expenses or advances made or 

  

 - 9 - 

	 	 
incurred by the Mortgagee in the protection of its rights or the pursuance of its remedies hereunder; 

 

	 	Second:	Applied to the payment of any damages or injuries sustained by the Mortgagee occasioned by noncompliance by the Mortgagor with the terms and provisions of this Mortgage
and to furnish indemnity in the proper amount against any other liens or other encumbrances which have or may have priority over those established by this Mortgage; 

 

	 	Third:	Applied to the payment of the Secured Obligations in such priority as the Mortgagee may elect; 

 

	 	Fourth:	Applied to the payment of any other obligations secured by the Vessel which are known to the Mortgagee to exist and to be so secured; and 

 

	 	Fifth:	Any surplus thereafter remaining shall be paid promptly to the Mortgagor. 

SECTION 12. Until one or more Defaults shall occur and continue in existence, the Mortgagor, subject to the provisions of this Mortgage,
(a) shall be suffered and permitted to retain actual possession and use of the Vessel and (b) shall have the right, from time to time, in its discretion, and without application to the Mortgagee, and without obtaining a release thereof by
the Mortgagee, to dispose of, free from the lien hereof, any boilers, engines, machinery, masts, spars, sails, rigging, boats, anchors, cables, chains, tackle, apparel, furniture, fittings, cranes, drills, excavators, shovels, construction or other
equipment or any other appurtenances of the Vessel that are no longer useful, necessary, profitable or advantageous in the operation of the Vessel. 

ARTICLE III 

SUNDRY PROVISIONS 

SECTION 1. For the purposes of this Mortgage and Chapter 313, the maximum amount of the direct or contingent obligations outstanding at
any one time that is or may become secured by this Mortgage is the principal sum of U.S. $125,000,000, plus interest, expenses and fees. The discharge amount is the same as the maximum amount. 

SECTION 2. The names and addresses of each of the parties to this Mortgage are as follows: 

(a) Mortgagor: Great Lakes Dredge & Dock Corporation, 2122 York Road, Oak Brook, Illinois 60523; 

(b) Mortgagee: Travelers Casualty and Surety Company and Travelers Casualty and Surety Company of America, One Tower Square, 5PB,
Hartford, Connecticut 06183. 
 SECTION 3. All of the covenants, promises, stipulations and agreements of the Mortgagor
contained in this Mortgage shall bind the Mortgagor and its successors and assigns (including successors by way of merger, acquisition or similar event) and shall inure to the 

 

 - 10 - 

 
benefit of the Mortgagee and its successors and assigns(including successors by way of merger, acquisition or similar event). In the event of any assignment of this Mortgage, the term
“Mortgagee”, as used in this Mortgage, shall be deemed to mean any such assignee. 
 SECTION 4. Wherever and whenever
herein any right, power or authority is granted or given to the Mortgagee, such right, power or authority may be exercised in all cases by the Mortgagee or such agent or agents as it may appoint, and the act or acts of such agent or agents when
taken shall constitute the act of the Mortgagee hereunder. 
 SECTION 5. This Mortgage may be executed in any number of
counterparts, each of which shall be an original; but such counterparts shall together constitute but one and the same instrument. 

SECTION 6. Unless otherwise specifically provided herein, all notices required or permitted by the terms hereof shall be given in the
manner and with the effect provided for in the Bonding Agreement. 
 SECTION 7. At the reasonable request of the Mortgagee, to
the extent reasonably available to the Mortgagor, the Mortgagor will cause to be delivered to Mortgagee for inspection, copies of any and all material contracts and documents relating to the Vessel, whether on board or not, subject to the
confidentiality provisions set forth in the Bonding Agreement. 
 SECTION 8. This Mortgage may be amended or supplemented from
time to time, but only by an instrument in writing executed by the Mortgagor and the Mortgagee and duly acknowledged pursuant to Chapter 313. 

SECTION 9. THIS MORTGAGE AND ALL THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEIR SUCCESSORS AND ASSIGNS SHALL BE GOVERNED
BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW BUT EXCLUDING ALL OTHER CHOICE OF LAW AND CONFLICTS OF LAWS, AND EXCEPT TO THE EXTENT PREEMPTED BY APPLICABLE FEDERAL AND MARITIME
LAWS OF THE UNITED STATES. 
 SECTION 10. So long as the first preferred ship mortgage on the Vessel in favor of the Lenders
remains in effect and constitutes a lien prior to the lien of this Mortgage, the provisions of the first preferred ship mortgage shall take precedence over any conflicting provisions in this Mortgage. References in this Mortgage to the lien hereof
being the “second” shall not be construed as subordinating this Mortgage to any lien other than the lien of such first preferred ship mortgage, nor as subordinating this Mortgage to the lien of such first preferred ship mortgage for any
period except for so long as it constitutes a lien prior to the lien of this Mortgage. 
 SECTION 11. So long as the
Intercreditor Agreement remains in effect, any provision set forth in the Intercreditor Agreement (including without limitation any provision limiting the use of the Vessel by the Mortgagee or foreclosure actions by the Mortgagee or

  

 - 11 - 

 
prescribing the use or application of proceeds of the Vessel) which conflicts with any provision of this Mortgage shall govern. 

SECTION 12. The Mortgagee may permit the separate discharge of property that is not a vessel from the lien of this Mortgage as permitted
by the Bonding Agreement. 
 SECTION 13. Notwithstanding any other provisions of this Mortgage to the contrary, nothing herein
shall waive the preferred status of this Mortgage and if any provision herein shall be construed to waive such status, such provision shall, to the extent so construed, be void and of no effect. 

Execution Follows 

* * * * 
  

 - 12 - 

 IN WITNESS WHEREOF, the Mortgagor has executed this Mortgage as of the day and year first
above written. 
  

			
	 GREAT LAKES DREDGE & DOCK

    CORPORATION

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

ACKNOWLEDGMENT 
  

					
	STATE OF ILLINOIS	  	            )	  	
		  	            )	  	ss.:
	COUNTY OF	  	            )	  	

 The foregoing instrument was acknowledged before me this 22nd day of December, 2003, by
                    , the
                     of GREAT LAKES DREDGE & DOCK CORPORATION, a Delaware corporation, on behalf of the corporation. 

Notary Public 

 SCHEDULE A 

VESSEL SUBJECT TO MORTGAGE 
  

			
	 VESSEL NAME
	 	 OFFICIAL NUMBER

	SUGAR ISLAND	 	606519

 Schedule 1.1 

Permitted Liens 
  

	 	1.	LIENS securing all DEBT and other obligations under that certain Credit Agreement, dated as of August 19, 1998, among HOLDINGS, the other “Loan Parties,”
and Bank of America, N.A., as Administrative Agent (the “EXISTING CREDIT AGREEMENT”), which shall be released upon the repayment of such obligations as contemplated by Section 4.1(i) of the BANK LOAN FACILITY.

  

	 	2.	Bareboat Charter Agreement, dated as of December 18, 1998, between GLDDC and MDFC Equipment Leasing Corporation (Bareboat Charter of Texas, Pontchartrain and
Booster No. 6). 

  

	 	3.	Bareboat Charter Agreement, dated as of October 9, 1998, between GLDDC Business Trust No. 1998-1 and GLDDC (Charter Financing of the New York).

  

	 	4.	Bareboat Charter Agreement, dated as of November 18, 1999, between MDFC Equipment Leasing Corporation and GLDDC (Bareboat Charter of Hopper Dredge Liberty Island).

  

	 	5.	Bareboat Charter Agreement, dated as of February 24, 1997, between McDonnell Douglas Overseas Finance Corporation and GLDDC (Bareboat Charter of Dredge Victoria
Island). 

  

	 	6.	Bareboat Charter Agreement, dated as of June 2, 1997, between NationsBanc Leasing Corporation and GLDDC (Bareboat Charter of Bottom-Dump Barges, Nos. 61 and 62).

  

	 	7.	Bareboat Charter Agreement, dated as of July 30, 1997, between MDFC Equipment Leasing Corporation and GLDDC (Bareboat Charter of BTS-401 and BTS-402).

  

	 	8.	Bareboat Charter Agreement, dated as of August 27, 2002, between BCC Equipment Leasing Corporation and GLDDC (Bareboat Charter of Dump Barge GL-65).

  

	 	9.	Bareboat Charter Agreement, dated as of December 23, 1999, between Ameritech Credit Corporation and GLDDC (Bareboat Charter of the Lake Tahoe).

  

	 	10.	Equipment Lease Agreement, dated as of May 27, 1999, between Ameritech Credit Corporation and GLDDC (Crane #3 (Serial No. 46388)). 

 

	 	11.	Please see the attached Annex A. 

 ANNEX A 

 

																			
	 Debtor

(as shown on statement)
	 	 Secured Party

(as shown on statement)
	 	Jurisdiction	 	UCC	 	Fix	 	Liens	 	Suits
&
Judg	 	File No.	 	File Date	 	 Search Results

Comments/Collateral

	GREAT LAKES DREDGE & DOCK COMPANY
	 Great Lakes Dredge & Dock

Company
 885
Bulkhead Road
 Green Cove Springs, FL 32043
	 	 Caterpillar Financial

Services Corporation

1800 Parkway Place

Suite 820

Marietta, GA 30067
	 	Secretary of State,
Florida	 	X	 		 		 		 	200000117754	 	05/19/00	 	(1) Caterpillar IT28G Integrated Tool Carrier.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 United Jersey Bank/Central,

N.A.
 301 Carnegie
Center
 cn 5316

Princeton, NJ 08543
	 	Secretary of State,
Illinois	 	X	 		 		 		 	2906792	 	10/21/91	 	Debtor’s interest as a joint venturer in the equipment and other personal property described on Schedule A attached hereto and made a part hereof, owned by Amboy Aggregates
Joint Venture (also known as “McCormack Aggregates” and composed of Great Lakes Dredge & Dock Company and Ralph Clayton & Sons Materials, L.P.], and any substitutions and replacements thereof whether now owned or hereafter acquired
and all cash and non-cash proceeds therefrom.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 United Jersey Bank/Central,

N.A.
 301 Carnegie
Center
 CN-5316

Princeton, NJ 08543
	 	Secretary of State,
Illinois	 	X	 		 		 		 	3550692	 	06/10/96	 	Continuation of file #2906972 filed 10/21/91.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Fleet National Bank,

Successor by Merger to

Summit Bank f/k/a United

Jersey Bank/Central, N.A.

301 Carnegie Center

Princeton, NJ 08540
	 	Secretary of State,
Illinois	 	X	 		 		 		 	4378385	 	04/27/01	 	Continuation of file #2906972 filed 10/21/91.
										
	 Great Lakes Dredge & Dock

2122 York Road
 Oak
Brook, IL 60521
	 	 Hoss Equipment Co.

3131 N Hwy 161

Irving, TX 75062
	 	Secretary of State,
Illinois	 	X	 		 		 		 	3947090	 	11/24/98	 	1 Caterpillar D6H LGP Crawler Tractor.
										
	 Great Lakes Dredge & Dock Co.

(Lessee)
 2122 York

 Oak Brook, IL 60523
	 	 IBM Credit Corporation

(Lessor)
 1 North
Castle Drive
 Armonk, NY 10504
	 	Secretary of State,
Illinois	 	X	 		 		 		 	4025254	 	04/26/99	 	All computer, information processing, and other peripheral equipment and goods wherever located referenced on IBM Supplement #643344 dated 02/25/99.

																			
	 Debtor

(as shown on statement)
	 	 Secured Party

(as shown on statement)
	 	Jurisdiction	 	UCC	 	Fix	 	Liens	 	Suits
&
Judg	 	File No.	 	File Date	 	 Search Results

Comments/Collateral

	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60523
	 	 Ameritech Credit

Corporation
 2550
West Golf Road
 Rolling Meadows, IL 60008
	 	Secretary of State,
Illinois	 	X	 		 		 		 	4025781	 	04/26/99	 	All controllers, modems, computers and other date transmission devices, cable and wiring, including all additions, upgrades and accessions thereto and all other equipment and other
items and rights, leased, licensed or otherwise provided to Lessee under Lease No. 001-0010413-004, dated 10/16/95.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60523
	 	 Ameritech Credit

Corporation
 2550
West Golf Road
 Rolling Meadows, IL 60008
	 	Secretary of State,
Illinois	 	X	 		 		 		 	4025782	 	04/26/99	 	All controllers, modems, computers and other date transmission devices, cable and wiring, including all additions, upgrades and accessions thereto and all other equipment and other
items and rights, leased, licensed or otherwise provided to Lessee under Lease No. 001-0010413-003, dated 10/16/95.
										
	 Great Lakes Dredge & Dock

Company as Lessee

2122 York Road
 Oak
Brook, IL 60523
	 	 Newcourt Communications

Finance Corporation as

Lessor
 2 Gatehall
Drive
 Parsippany, NJ 07054
	 	Secretary of State,
Illinois	 	X	 		 		 		 	4030028	 	05/03/99	 	Equipment now or hereafter acquired, which is leased to Lessee by Lessor pursuant to Lease No. M516257, including but not limited to, Lucent Technologies Inc. DEFINITY AND INTUITY.

										
	 Great Lakes Dredge and Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Ameritech Credit

Corporation
 2550
West Golf Road
 Rolling Meadows, IL 60008
	 	Secretary of State,
Illinois	 	X	 		 		 		 	4052309	 	06/16/99	 	All equipment and other items, including all additions, upgrades and accessions thereto and all rights, leased, licensed or otherwise provided to Lessee under Lease No.
001-0000782-005, dated 5/27/99: (1) Manitowoc Model 4600 Vicon Series 3 Crane.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Ameritech Credit

Corporation
 2550
West Golf Road
 Rolling Meadows, IL 60008
	 	Secretary of State,
Illinois	 	X	 		 		 		 	4101596	 	09/29/99	 	Amendment of file #4052309 filed 06/16/99 to amend collateral description to read: All equipment and other items, including all additions, upgrades and accessions thereto and all
rights, leased, licensed or otherwise provided to Lessee under Lease No. 001-0000782-005, dated 6/27/99: (1) Manitowoc Model 4600 Vicon Series 3 Crane.
										
	 Great Lakes Dredge & Dock

2122 York Road
 Oak
Brook, IL 60521
	 	 Roland Machinery Company

P.O. Box 2879

Springfield, IL 62708
	 	Secretary of State,
Illinois	 	X	 		 		 		 	4163420	 	02/07/00	 	Komatsu PC200LC-6 Excavator.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Caterpillar Financial

Services Corporation

1800 Parkway Place

Suite 820

Marietta, GA 30067
	 	Secretary of State,
Illinois	 	X	 		 		 		 	4214886	 	05/19/00	 	(1) Caterpillar IT38G Integrated Tool Carrier.

  

 - 3 - 

																			
	 Debtor

(as shown on statement)
	 	 Secured Party

(as shown on statement)
	 	Jurisdiction	 	UCC	 	Fix	 	Liens	 	Suits
&
Judg	 	File No.	 	File Date	 	 Search Results

Comments/Collateral

	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Caterpillar Financial

Services Corporation

10440 Little Patuxent Pkwy.

Suite 1200

Columbia, MD 21044
	 	Secretary of State,
Illinois	 	X	 		 		 		 	4231082	 	06/23/00	 	Two Caterpillar D8R Track-Type Loaders.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Ameritech Credit

Corporation
 2550
West Golf Road
 Rolling Meadows, IL 60008
	 	Secretary of State,
Illinois	 	X	 		 		 		 	4265400	 	09/08/00	 	All controllers, modems, computers and other date transmission devices, cable and wiring, including all additions, upgrades and accessions thereto and all other equipment and other
items and rights, leased, licensed or otherwise provided to Lessee under Lease No. 001-0010413-007.
										
	 Great Lakes Dredge & Dock

2122 York Road
 Oak
Brook, IL 60521
	 	 Hoss Equipment Co.

3131 N Hwy 161

Irving, TX 75062
	 	Secretary of State,
Illinois	 	X	 		 		 		 	4301562	 	11/27/00	 	1 Caterpillar D9N Crawler Tractor, 1 Balderson BD9u U Dover and 1 Caterpillar 58 Winch.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Caterpillar Financial

Services Corporation

2120 West End Avenue

P.O. Box 340001

Nashville, TN 37203
	 	Secretary of State,
Illinois	 	X	 		 		 		 	4304330	 	12/05/00	 	Two Caterpillar D8R Track Type Tractors.
										
	 Great Lakes Dredge & Dock

2122 York Road
 Oak
Brook, IL 60521
	 	 Hoss Equipment Co.

3131 N Hwy 161

Irving, TX 75062
	 	Secretary of State,
Illinois	 	X	 		 		 		 	4307956	 	12/07/00	 	1 Caterpillar D9R Crawler Tractor, 1 Balderson Dozer and 1 Caterpillar 58 Winch.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Caterpillar Financial

Services Corporation

2120 West End Avenue

P.O. Box 340001

Nashville, TN 37203
	 	Secretary of State,
Illinois	 	X	 		 		 		 	4340177	 	02/15/01	 	Two Caterpillar Track-Type Tractors D8R.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Caterpillar Financial

Services Corporation

2120 West End Avenue

Nashville, TN 37203
	 	Secretary of State,
Illinois	 	X	 		 		 		 	4474049	 	12/11/01	 	(1) New Caterpillar 966G Wheel Loader.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Caterpillar Financial

Services Corporation

2120 West End Avenue

Nashville, TN 37203
	 	Secretary of State,
Illinois	 	X	 		 		 		 	4474056	 	12/11/01	 	(1) New Caterpillar 966G Wheel Loader.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Caterpillar Financial

Services Corporation

2120 West End Avenue

Nashville, TN 37203
	 	Secretary of State,
Illinois	 	X	 		 		 		 	4767608	 	02/13/02	 	One (1) Caterpillar D7R Track Type Tractor.

  

 - 4 - 

																			
	 Debtor

(as shown on statement)
	 	 Secured Party

(as shown on statement)
	 	Jurisdiction	 	UCC	 	Fix	 	Liens	 	Suits
&
Judg	 	File No.	 	File Date	 	 Search Results

Comments/Collateral

	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Caterpillar Financial

Services Corporation

2120 West End Avenue

Nashville, TN 37203
	 	Secretary of State,
Illinois	 	X	 		 		 		 	4767616	 	02/13/02	 	One (1) Caterpillar D7R Track Type Tractor.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Caterpillar Financial

Services Corporation

2120 West End Avenue

Nashville, TN 37203
	 	Secretary of State,
Illinois	 	X	 		 		 		 	5028159	 	04/04/02	 	(1) One New Cat D6RXL Track Type Tractor and (1) One New Cat D7R Track Type Tractor and (1) One New Cat D7R Track Type Tractor.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Caterpillar Financial

Services Corporation

2120 West End Avenue

Nashville, TN 37203
	 	Secretary of State,
Illinois	 	X	 		 		 		 	6110592	 	11/12/02	 	Three (3) Caterpillar D7RIIXR Track-Type Tractors.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Caterpillar Financial

Services Corporation

2120 West End Avenue

Nashville, TN 37203
	 	Secretary of State,
Illinois	 	X	 		 		 		 	6111378	 	11/12/02	 	Two (2) New 966G Caterpillar Wheel Loaders.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Caterpillar Financial

Services Corporation

2120 West End Avenue

Nashville, TN 37203
	 	Secretary of State,
Illinois	 	X	 		 		 		 	6704646	 	03/17/03	 	One (1) Caterpillar D7RII Track-Type Tractor.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Caterpillar Financial

Services Corp.

2120 West End Avenue

Nashville, TN 37203
	 	Secretary of State,
Illinois	 	X	 		 		 		 	6837557	 	04/11/03	 	Two (2) Caterpillar 966GII Wheel Loaders.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Caterpillar Financial

Services
 2120 West
End Avenue
 Nashville, TN 37203
	 	Secretary of State,
Illinois	 	X	 		 		 		 	7446918	 	08/20/03	 	Three (3) Caterpillar D7RII Track Type Tractors.
										
	 Great Lakes Dredge & Dock

2122 York Road
 Oak
Brook, IL 60521
	 	 Hoss Equipment Co.

3131 N Hwy 161

Irving, TX 75062
	 	Secretary of State,
Illinois	 	X	 		 		 		 	7655010	 	10/06/03	 	1 Caterpillar D8N Crawler Tractor.
										
	 Great Lakes Dredge & Dock Co.

2122 York Road
 Oak
Brook, IL 60523
	 	 Technical & Scientific

Applications, Inc.

2040 W. Sam Houston Pkwy N.

Houston, TX 77043
	 	Secretary of State,
Illinois	 	X	 		 		 		 	4040925	 	05/25/99	 	1 x HP C2859B 650c DesignJet Plotter.
										
	 Great Lakes Dredge & Dock Co.

2122 York Road
 Oak
Brook, IL 60523
	 	 Technical & Scientific

Applications, Inc.

2040 W. Sam Houston Pkwy N.

Houston, TX 77043
	 	Secretary of State,
Illinois	 	X	 		 		 		 	479611	 	02/10/00	 	Termination of file #4040925 filed 05/25/99.

  

 - 5 - 

																			
	 Debtor

(as shown on statement)
	 	 Secured Party

(as shown on statement)
	 	Jurisdiction	 	UCC	 	Fix	 	Liens	 	Suits
&
Judg	 	File No.	 	File Date	 	 Search Results

Comments/Collateral

	 Great Lakes Dredge & Dock

9515 Deereco Rd. Suite 810

Timonium, MD 21093
	 	 Furnival State Machinery

Co.
 2240 Bethlehem
Pike
 Hatfield, PA 19440
	 	Secretary of State,
Maryland	 	X	 		 		 		 	0000000131728681	 	06/21/93	 	(1) Dresser TD15E LGP.
										
	 Great Lakes Dredge & Dock

3811 Bew Gate Avenue

Baltimore, MD 21224
	 	 L. B. Smith, Inc.

7430 Montevideo Road

Jessup, MD 20794
	 	Secretary of State,
Maryland	 	X	 		 		 		 	003910000004358	 	01/12/99	 	P & H Model CN128 Rough Terrain Crane.
										
	 Great Lakes Dredge & Dock

Company
 Pier 6
3811 Newgate Rd.
 Baltimore, MD 21224
	 	 Caterpillar Financial

Services Corporation

10440 Little Patuxent Pkwy.

Suite 1200

Columbia, MD 21044
	 	Secretary of State,
Maryland	 	X	 		 		 		 	0000000181050374	 	06/22/00	 	One Caterpillar D8R Track-Type Loader and one Caterpillar D8R Track-Type Loader.
										
	 Great Lakes Dredge & Dock

Company
 3811
Newgate Ave., Pier 6
 Baltimore, MD 21224
	 	 Caterpillar Financial

Services Corporation

10440 Little Patuxent Pkwy.

Suite 1200

Columbia, MD 21044
	 	Secretary of State,
Maryland	 	X	 		 		 		 	0000000181052620	 	07/12/00	 	One Caterpillar IT38G Integrated Toolcarrier.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 United Jersey Bank/Central,

N.A.
 301 Carnegie
Center
 CN 5316

Princeton, NJ 08543
	 	Secretary of State,
New Jersey	 	X	 		 		 		 	1424631	 	11/01/91	 	Debtor’s interest as a joint venturer in the equipment and other personal property described on Schedule A attached hereto and made a part hereof, owned by Amboy Aggregates
Joint Venture [also known as “McCormack Aggregates” and composed of Great Lakes Dredge and Dock Company and Ralph Clayton & Sons Materials, L.P.], and any substitutions and replacements thereof whether owned or hereafter acquired and
all cash and non-cash proceeds therefrom.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 United Jersey Bank/Central,

N.A.
 301 Carnegie
Center
 CN 5316

Princeton, NJ 08543
	 	Secretary of State,
New Jersey	 	X	 		 		 		 	1424631	 	05/15/96	 	Continuation of file #1424631 filed 11/01/91.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Fleet National Bank,

successor by merger to

Summit Bank f/k/a United

Jersey Bank/Central, N.A.

301 Carnegie Center

Princeton, NJ 08543
	 	Secretary of State,
New Jersey	 	X	 		 		 		 	1424631	 	05/22/01	 	Continuation of file #1424631 filed 11/01/91.

  

 - 6 - 

																			
	 Debtor

(as shown on statement)
	 	 Secured Party

(as shown on statement)
	 	Jurisdiction	 	UCC	 	Fix	 	Liens	 	Suits
&
Judg	 	File No.	 	File Date	 	 Search Results

Comments/Collateral

										
	 Great Lakes Dredge & Dock

Company
 c/o The
Corporation Trust
 Company, as Agent

820 Bear Tavern Road

Trenton, NJ 08628
	 	 Great Lakes Business Trust

1998-1 through its trustee

Wilmington Trust Company

1100 North Market Street

Wilmington, DE 19890
	 	Secretary of State,
New Jersey	 	X	 		 		 		 	1873836	 	11/20/98	 	All right, title and interest in and to the Bay Contract and to the OFE Construction Contracts.
										
	 Great Lakes Dredge & Dock

Company
	 	 Great Lakes Business Trust

1998-1 through its trustee

Wilmington Trust Company
	 	Secretary of State,
New Jersey	 	X	 		 		 		 	1873836	 	06/09/03	 	Continuation of file #1873836 filed 11/20/98.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60512
	 	 Caterpillar Financial

Services
 2120 West
End Avenue
 Nashville, TN 37203
	 	Secretary of State,
New Jersey	 	X	 		 		 		 	21860256	 	10/31/03	 	Copy of UCC not available at the state. Certified Certificate from State Treasurer included.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60512
	 	 BCC Equipment Leasing

Corporation
 3780
Kilroy Airport Way
 Suite 750

Long Beach, CA 90806
	 	Secretary of State,
New Jersey	 	X	 		 		 		 	2119462-7	 	08/28/02	 	Although it is not the intent of the parties that a security interest has been created, this financing statement is filed for precautionary purposes only in connection with the
Bareboat Charter Agreement dated August 27, 2002 between the Debtor and Secured Party concerning the U.S. flag vessel GL-65, Official No. 1132500.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60512
	 	 BCC Equipment Leasing

Corporation
 3780
Kilroy Airport Way
 Suite 750

Long Beach, CA 90806
	 	Secretary of State,
New Jersey	 	X	 		 		 		 	2132783-4	 	11/26/002	 	5,000 cubic meter Hopper Dredge initially known as the “Liberty Island”.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road, 2nd Floor
 Oak Brook, IL 60523
	 	 Kinetic Leasing, Inc.

825 28th St. SW, Suite D

Fargo, ND 58103
	 	Secretary of State,
New Jersey	 	X	 		 		 		 	2160479-9	 	05/22/03	 	Equipment described as a 24 x 56 Modular Office, and leased pursuant to that certain Equipment Lease Agreement No. 11050204 dated November 13, 2002 between Great Lakes Dredge
& Dock Co. as Lessee and Kinetic Leasing, Inc. as Lessor and all modifications thereto and replacements thereof and substitutions therefore.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Great Lakes Business Trust

1998-1 through its trustee

Wilmington Trust Company

1100 North Market Street

Wilmington, DE 19890
	 	Secretary of State,
New Jersey	 	X	 		 		 		 	2162443-8	 	06/09/03	 	 The financing statement is filed in lieu of continuation for the following previously filed financing statements, each of which remains
effective.
 10/30/1998, 9848672, DE SOS

10/30/1998, 3933593, IL SOS
 11/04/1998, 2081082,
MN SOS
 All right, title and interest in and to the Bay Contract and to the OFE Construction Contracts.

 

 - 7 - 

																			
	 Debtor

(as shown on statement)
	 	 Secured Party

(as shown on statement)
	 	Jurisdiction	 	UCC	 	Fix	 	Liens	 	Suits
&
Judg	 	File No.	 	File Date	 	 Search Results

Comments/Collateral

	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Ameritech Credit

Corporation
 2550
West Golf Road
 Rolling Meadows, IL 60008
	 	Secretary of State,
New York	 	X	 		 		 		 	120249	 	06/16/99	 	All equipment and other items including all additions, upgrades and accessions thereto and all rights, leased, licensed or otherwise provided to Lessee under Lease No.
001-0000792-005, dated 5/27/99, between Lessor and Lessee: (1) Manitowoc Model 4600 Vicon Series 3 Crane.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Ameritech Credit

Corporation
 2550
West Golf Road
 Rolling Meadows, IL 60008
	 	Secretary of State,
New York	 	X	 		 		 		 	196066	 	09/29/99	 	Amendment of file #120249 filed 06/16/99 to amend collateral description to read: All equipment and other items including all additions, upgrades and accessions thereto and
all rights, leased, licensed or otherwise provided to Lessee under Lease No. 001-0000782-005, dated 5/27/99, between Lessor and Lessee: (1) Manitowoc Model 4600 Vicon Series 3 Crane.
										
	 Great Lakes Dredge & Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Pitney Bowes Credit

Corporation
 27
Waterview Drive
 Shelton, CT 06484
	 	Richmond County,
New York	 	X	 		 		 		 	99-49	 	01/08/99	 	One (1) Completely rebuilt Manitowoc 4600 Series 3 Crane.
										
	 Great Lakes Dredge and Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Ameritech Credit

Corporation
 2550
West Golf Road
 Rolling Meadows, IL 60008
	 	Richmond County,
New York	 	X	 		 		 		 	99-1635	 	08/02/99	 	Lease No. 001-0000792-005 dated 5/27/99 between Lessor and Lessee: (1) Manitowoc Model 4600 Vicon Series 3 Crane.
										
	 Great Lakes Dredge and Dock

Company
 2122 York
Road
 Oak Brook, IL 60521
	 	 Ameritech Credit

Corporation
 2550
West Golf Road
 Rolling Meadows, IL 60008
	 	Richmond County,
New York	 	X	 		 		 		 	99-2115	 	10/06/99	 	Amendment of file #99-1635 filed 08/02/99 to amend collateral to Lease No. 001-0000782-005 dated 5/27/99 between Lessor and Lessee: (1) Manitowoc Model 4600 Vicon Series 3
Crane.
										
	 Great Lakes Dredge & Dock

2122 York Road
 Oak
Brook, IL 60521
	 	 Hoss Equipment Co.

3131 N. Hwy. 161

Irving, TX 75062
	 	Secretary of State,
Texas	 	X	 		 		 		 	00-628922	 	11/20/00	 	1 Caterpillar D9N Crawler Tractor; 1 Balderson BD9U U Dozer and 1 Caterpillar 58 Winch.
										
	 Great Lakes Dredge & Dock

2122 York Road
 Oak
Brook, IL 60521
	 	 Hoss Equipment Co.

3131 N. Hwy. 161

Irving, TX 75062
	 	Secretary of State,
Texas	 	X	 		 		 		 	00-635755	 	12/04/00	 	1 Caterpillar D9R Crawler Tractor; 1 Balderson Dozer and 1 Caterpillar 58 Winch.
	
	NORTH AMERICAN SITE DEVELOPERS, INC.
										
	 North American Site

Developers, Inc.
	 	—	 	Secretary of State,
California	 		 		 	X	 		 	0133460700	 	11/30/01	 	State Tax Liens on file: $2,286.05 to Employment Development Department.

  

 - 8 - 

																			
	 Debtor

(as shown on statement)
	 	 Secured Party

(as shown on statement)
	 	Jurisdiction	 	UCC	 	Fix	 	Liens	 	Suits
&
Judg	 	File No.	 	File Date	 	 Search Results

Comments/Collateral

	 North American Site Developers

Inc.
 218 Lincoln
Street
 Allston, MA 02134
	 	 C. N. Wood Co., Inc.

62 Cambridge Street

Burlington, MA 01803

Assignee:
 KDC
Financial Limited
 Partnership

1333 W. Butterfield

Suite 600
 Downers
Grove, IL 60515
	 	Secretary of State,
 Massachusetts

	 	X	 		 		 		 	589345	 	11/09/98	 	One (1) Komatsu Wheel Loader.
										
	 North American Site Developers

Inc.
 218 Lincoln
Street
 Allston, MA 02134
	 	 Williams Scotsman Inc.

8211 Town Center Drive

Baltimore, MD 21236
	 	Secretary of State,
Massachusetts	 	X	 		 		 		 	604318	 	01/19/99	 	Debtor grants to the Secured Party a security interest in a certain 60’ x 12’ mobile office, serial number LPW 21071, located in Boston Massachusetts.
										
	 North American Site

Developers, Inc.

218 Lincoln Street

Boston, MA 02134
	 	 Logan Equipment

Corporation
 800
Hartford Pike
 Shrewsbury, MA 01545

Assignee:

Associates Commercial

Corporation
 7711,
P.O. Box 168647
 Irving, TX 75016
	 	Secretary of State,
Massachusetts	 	X	 		 		 		 	610960	 	02/17/99	 	One (1) New Hypac, Model C830B Roller.
										
	 North American Site Developers

Inc.
 P.O. Box 326

 Allston, MA 02134
	 	 C.N. Wood Co., Inc.

62 Cambridge Street

Burlington, MA 01803

Assignee:
 Komatsu
Financial Limited
 Partnership

1333 Butterfield Road

Downers Grove, IL 60516
	 	Secretary of State,
Massachusetts	 	X	 		 		 		 	648018	 	07/21/99	 	One (1) new Komatsu Hydraulic Excavator.
										
	 North American Site Developers

218 Lincoln Street

Allston, MA 02134
	 	 C. N. Wood Co., Inc.

62 Cambridge Street

Burlington, MA 01803
	 	Secretary of State,
Massachusetts	 	X	 		 		 		 	662586	 	09/27/99	 	One (1) Komatsu Wheel Loader.
										
	 North American Site

Developers, Inc.

218 Lincoln Street

Boston, MA 02134
	 	 NationsRent USA, Inc.

800 Hartford Pike

Shrewsbury, MA 01545

Assignee:

Associates Commercial

Corporation
 777,
P. O. Box 168647
 Irving, TX 75016
	 	Secretary of State,
Massachusetts	 	X	 		 		 		 	665168	 	10/06/99	 	One (1) 1996 Hypac, Model C850B Roller.

  

 - 9 - 

																			
	 Debtor

(as shown on statement)
	 	 Secured Party

(as shown on statement)
	 	Jurisdiction	 	UCC	 	Fix	 	Liens	 	Suits
&
Judg	 	File No.	 	File Date	 	 Search Results

Comments/Collateral

	 North American Site

Developers, Inc.

218 Lincoln Street

Allston, MA 02134
	 	 C. N. Wood Co., Inc.

62 Cambridge Street

Burlington, MA 01803

Assignee:
 Komatsu
Financial Limited
 Partnership

1333 Butter Field Rd.

Suite 600
 Downers
Grove, IL 60515
	 	Secretary of State,
Massachusetts	 	X	 		 		 		 	671426	 	11/01/99	 	1 New Komatsu Hydraulic Excavator.
										
	 North American Site

Developers, Inc.
 P
O Box 326
 Allston, MA 02134
	 	 Caterpillar Financial

Services Corporation

2120 West End Avenue

P. O. Box 340001

Nashville, TN 37203
	 	Secretary of State,
Massachusetts	 	X	 		 		 		 	777591	 	02/07/01	 	One (1) new Caterpillar 416C Backhoe Loader.
										
	 North American Site

Developers, Inc.

218 Lincoln Street

Allston, MA 02134
	 	 Caterpillar Financial

Services Corporation

2120 West End Avenue

P. O. Box 340001

Nashville, TN 37203
	 	Secretary of State,
Massachusetts	 	X	 		 		 		 	777593	 	02/07/01	 	One (1) new Caterpillar 416C Backhoe Loader.
										
	 North American Site

Developers, Inc.

218 Lincoln Street

Allston, MA 02134
	 	 Caterpillar Financial

Services Corporation

2120 West End Avenue

P. O. Box 340001

Nashville, TN 37203
	 	Secretary of State,
Massachusetts	 	X	 		 		 		 	200101548450	 	04/13/01	 	Three Caterpillar 226 Skid Steer Loader.
										
	 North American Site

Developers, Inc.

P.O. Box 326
 218
Lincoln Street
 Allston, MA 02134
	 	 C.N. Wood Co., Inc.

62 Cambridge Street

Burlington, MA 01803
	 	Secretary of State,
Massachusetts	 	X	 		 		 		 	200101592660	 	04/17/01	 	Lease of Komatsu Excavator.
										
	 North American Site

Developers, Inc.

218 Lincoln Street

Allston, MA 02134
	 	 Komatsu Financial Limited

Partnership
 1333
W. Butterfield Road
 Suite 600

Downers Grove, IL 60515
	 	Secretary of State,
Massachusetts	 	X	 		 		 		 	200208864750	 	02/05/02	 	1 (one) Komatsu PC75R-2 Hydraulic Excavator.
										
	 North American Site

Developers, Inc.

218 Lincoln Street

Allston, MA 02134
	 	 C.N. Wood Co., Inc.

200 Merrimac Street

Woburn, MA 01801
	 	Secretary of State,
Massachusetts	 	X	 		 		 		 	200323113090	 	08/18/03	 	Lease of Komatsu Excavator.

  

 - 10 - 

																			
	 Debtor

(as shown on statement)
	 	 Secured Party

(as shown on statement)
	 	Jurisdiction	 	UCC	 	Fix	 	Liens	 	Suits
&
Judg	 	File No.	 	File Date	 	 Search Results

Comments/Collateral

	 North American Site

Developers, Inc.

218 Lincoln Street

Allston, MA 02134
	 	 The Hibernia Savings Bank

731 Hancock Street

Quincy, MA 02170
	 	Boston City,

Massachusetts
	 	X	 		 		 		 	392046	 	07/15/96	 	Numerous Melrose Bobcat equipment, etc. listed on attached Schedule A.
										
	 North American Site

Developers, Inc.
	 	Eastern Bank	 	Boston City,
Massachusetts	 	X	 		 		 		 	434703	 	06/25/01	 	Continuation of file #392046 filed 07/15/96.
										
	 North American Site

Developers, Inc.

218 Lincoln Street

Allston, MA 02134
	 	 Eastern Bank

270 Union Street

Lynn, MA 01901
	 	Boston City,
Massachusetts	 	X	 		 		 		 	412180	 	11/10/98	 	Daewoo Wheel Loader Model Mega 400-111.
										
	 North American Site

Developers, Inc.

218 Lincoln Street

Allston, MA 02134
	 	 C.N. Wood Co., Inc.

62 Cambridge Street

Burlington, MA 01803

Assignee:
 KDC
Financial Limited
 Partnership

1333 W. Butterfield

Suite 600
 Downers
Grove, IL 60515
	 	Boston City,
Massachusetts	 	X	 		 		 		 	412181	 	11/10/98	 	One (1) Komatsu WA500-3L Wheel Loader.
										
	 North American Site

Developers, Inc.

218 Lincoln Street

Allston, MA 02134
	 	 Logan Equipment

Corporation
 800
Hartford Pike
 Shrewsbury, MA 01545

Assignee:

Associates Commercial

Corporation
 7711,
P.O. Box 168647
 Irving, TX 75016
	 	Boston City,
Massachusetts	 	X	 		 		 		 	413659	 	01/11/99	 	One (1) New Hypac, Model C830B Roller.
										
	 North American Site Developers Inc.

218 Lincoln Street

Allston, MA 02134
	 	 Williams Scotsman Inc.

8211 Town Center Drive

Baltimore, MD 21236
	 	Boston City,
Massachusetts	 	X	 		 		 		 	413876	 	01/19/99	 	Debtor grants to the Secured Party a security interest in a certain 60’ x 12’ mobile office, serial number LPW 21071, located in Boston Massachusetts.
										
	 North American Site

Developers, Inc.

218 Lincoln Street

Allston, MA 02134
	 	 Woodco Machinery, Inc.

22 North Maple Street

Woburn, MA 01801

Assignee:
 Volvo
Commercial Finance
 LLC

The Americas
 7823
National Service Road
 Greensboro, NC 27409
	 	Boston City,
Massachusetts	 	X	 		 		 		 	418339	 	07/16/99	 	1999 Samsung Model SE170W-3 Excavator.

  

 - 11 - 

																			
	 Debtor

(as shown on statement)
	 	 Secured Party

(as shown on statement)
	 	Jurisdiction	 	UCC	 	Fix	 	Liens	 	Suits
&
Judg	 	File No.	 	File Date	 	 Search Results

Comments/Collateral

	 North American Site

Developers, Inc.

P.O. Box 326

Allston, MA 02134
	 	 C.N. Wood Co., Inc.

62 Cambridge Street

Burlington, MA 01803

Assignee:
 Komatsu
Financial Limited
 Partnership

1333 Butterfield Road

Downers Grove, IL 60515
	 	Boston City,
Massachusetts	 	X	 		 		 		 	418942	 	08/09/99	 	One (1) new Komatsu PC600LC-6 Hydraulic Excavator.
										
	 North American Site Developers

218 Lincoln Street

Allston, MA 02134
	 	 C.N. Wood Co., Inc.

62 Cambridge Street

Burlington, MA 01803
	 	Boston City,
Massachusetts	 	X	 		 		 		 	420060	 	09/27/99	 	Lease of Komatsu PC400LC-6.
										
	 North American Site

Developers, Inc.

218 Lincoln Street

Allston, MA 02134
	 	 C. N. Wood Co., Inc.

62 Cambridge Street

Burlington, MA 01803

Assignee:
 Komatsu
Financial Limited
 Partnership

133 Butter Field Rd.

Suite 600
 Downers
Grove, IL 60515
	 	Boston City,
Massachusetts	 	X	 		 		 		 	420238	 	10/05/99	 	(1) New Komatsu Hydraulic Excavator.
										
	 North American Site

Developers, Inc.

218 Lincoln Street

Boston, MA 02134
	 	 NationsRent USA, Inc.

800 Hartford Pike

Shrewsbury, MA 01545

Assignee:

Associates Commercial

Corporation
 7711,
P.O. Box 168647
 Irving, TX 75016
	 	Boston City,
Massachusetts	 	X	 		 		 		 	420298	 	10/07/99	 	One (1) 1996 Hypac, Model C850B Roller.
										
	 North American Site Developers

218 Lincoln Street

Allston, MA 02134
	 	 C. N. Wood Co., Inc.

62 Cambridge Street

Burlington, MA 01803

Assignee:
 Komatsu
Financial Limited
 Partnership

1333 Butterfield Rd.

Suite 600
 Downers
Grove, IL 60515
	 	Boston City,
Massachusetts	 	X	 		 		 		 	425306	 	05/06/00	 	(1) New Komatsu Hydraulic Excavator.
										
	 North American Site

Developers, Inc.

218 Lincoln Street

Allston, MA 02134
	 	 Eastern Bank

270 Union Street

Lynn, MA 01901
	 	Boston City,
Massachusetts	 	X	 		 		 		 	426710	 	07/05/00	 	ID#KM2497 Model PC400LC-6 Serial #A80346.

  

 - 12 - 

																			
	 Debtor

(as shown on statement)
	 	 Secured Party

(as shown on statement)
	 	Jurisdiction	 	UCC	 	Fix	 	Liens	 	Suits
&
Judg	 	File No.	 	File Date	 	 Search Results

Comments/Collateral

	 North American Site

Developers, Inc.

218 Lincoln Street, Box 326

Allston, MA 02134
	 	 Caterpillar Financial

Services Corporation

2120 West End Avenue

P.O. Box 340001

Nashville, TN 37203
	 	Boston City,
Massachusetts	 	X	 		 		 		 	428743	 	10/04/00	 	One Caterpillar D5C HST Track-Type Tractor.
										
	 North American Site

Developers, Inc.
 P
O Box 326
 Allston, MA 02134
	 	 Caterpillar Financial

Services Corporation

2120 West End Avenue

P.O. Box 340001

Nashville, TN 37203
	 	Boston City,
Massachusetts	 	X	 		 		 		 	431579	 	02/07/01	 	One (1) New Caterpillar 416C Backhoe Loader.
										
	 North American Site

Developers, Inc.

218 Lincoln Street

Allston, MA 02134
	 	 Caterpillar Financial

Services Corporation

2120 West End Avenue

P.O. Box 340001

Nashville, TN 37203
	 	Boston City,
Massachusetts	 	X	 		 		 		 	431580	 	02/07/01	 	One (1) New Caterpillar 416C Backhoe Loader.
										
	 North American Site

Developers, Inc.

218 Lincoln Street

Allston, MA 02134
	 	 Caterpillar Financial

Services Corporation

2120 West End Avenue

P.O. Box 340001

Nashville, TN 37203
	 	Boston City,
Massachusetts	 	X	 		 		 		 	433087	 	04/13/01	 	Three Caterpillar 226 Skid Steer Loader.
										
	 North American Site

Developers, Inc.

P.O. Box 326
 218
Lincoln Street
 Allston, MA 02134
	 	 C.N. Wood Co., Inc.

62 Cambridge Street

Burlington, MA 01803
	 	Boston City,
Massachusetts	 	X	 		 		 		 	433185	 	04/17/01	 	Lease of Komatsu PC220LC-6 Excavator.

  

 - 13 - 

 Schedule 5.7 

Insurance 
  

													
	 Coverage
	 	Effective
Date	 	Expiration
Date	 	Insurer	 	Policy Number	 	Maximum
Limit	 	Maximum
Deductible
	 Hull & Machinery
	 	31-Jul-03	 	31-Jul-04	 	Lloyd’s, British Companies	 	LH0344952	 	$54,600,000	 	$250,000
							
	 Hull & Machinery (Bahrain)
	 	31-Jul-03	 	31-Jul-04	 	Bahrain Kuwait
 Insurance Company
	 	MARH01662-02	 	$16,000,000	 	$250,000
							
	 Hull War Risks
	 	31-Jul-03	 	31-Jul-04	 	Lloyd’s	 	LH0344953	 	$16,000,000	 	$500,000
							
	 Business Property and Commercial Inland Marine
	 	31-Jul-03	 	31-Jul-04	 	Travelers Property Casualty	 	QT-660-307D565A-TIL-03	 	$5,200,000	 	Equipment:
 $100,000

Property:
 $10,000

(except
flood/earthquake)

							
	 Contractor’s Equipment (Bahrain)
	 	31-Dec-02	 	31-Dec-03	 	Bahrain Kuwait
 Insurance Company
	 	CPM/11630/02	 	$1,000,000	 	$20,000
							
	 Commercial General Liability
	 	1-Oct-03	 	1-Oct-04	 	American Home
 Assurance Company
	 	GL 933-28-61	 	$250,000	 	$750,000
 self-insured

retention

							
	 Automobile Liability (All Other States)
	 	1-Oct-03	 	1-Oct-04	 	American Home
 Assurance Company
	 	CA 826-15-12	 	$1,000,000	 	$500,000
							
	 Automobile Liability (Texas)
	 	1-Oct-03	 	1-Oct-04	 	American Home
 Assurance Company
	 	CA 826-15-13	 	$1,000,000	 	$500,000
							
	 Automobile Liability (Massachusetts)
	 	1-Oct-03	 	1-Oct-04	 	American Home
 Assurance Company
	 	CA 826-15-14	 	$1,000,000	 	$500,000
							
	 Workers’ Compensation and Employer’s Liability
	 	1-Oct-03	 	1-Oct-04	 	American Home
 Assurance Company
	 	WC 643-59-29	 	$1,000,000	 	$500,000

													
	 Coverage
	 	Effective
Date	 	Expiration
Date	 	Insurer	 	Policy Number	 	Maximum
Limit	 	Maximum
Deductible
	 Workers’ Compensation and Employer’s Liability (California)
	 	1-Oct-03	 	1-Oct-04	 	American Home Assurance
Company	 	WC 643-59-30	 	$1,000,000	 	$500,000
							
	 Workers’ Compensation and Employer’s Liability (New Jersey)
	 	1-Oct-03	 	1-Oct-04	 	American Home Assurance
Company	 	WC 643-59-31	 	$1,000,000	 	$500,000
							
	 U.S. Longshore and Harbor Workers’ Compensation
	 	1-Oct-03	 	1-Oct-04	 	Signal Mutual Indemnity
Association, Ltd.	 	60045	 	$10,000,000	 	$0
							
	 Workers’ Compensation and Employer’s Liability (Foreign)
	 	1-Oct-03	 	1-Oct-04	 	Insurance Company of the
State of Pennsylvania
(AIG)	 	EX56100083	 	$1,000,000	 	$0
							
	 Excess Liability
	 	31-Jul-03	 	31-Jul-04	 	Lloyd’s, British
Companies, Liberty
Insurance, Fireman’s Fund	 	LE0381472	 	$99,000,000
excess of $1,000,000
	 	Underlying
							
	 Excess Liability
	 	31-Jul-03	 	31-Jul-04	 	X.L. Insurance Company
Ltd.	 	XLMOE-02281	 	$50,000,000
excess of $100,000,000
	 	Underlying
							
	 Protection & Indemnity
	 	20-Feb-03	 	20-Feb-04	 	The West of England Ship
Owners Mutual Insurance
Association (Luxembourg)	 	00-0/2541P-1-20/02/2003	 	Per Association
Rules (approx. $2.25 billion)
	 	$500,000
							
	 Commercial Crime
	 	15-Oct-02	 	15-Oct-05	 	Travelers Casualty and
Surety Company of
America	 	103936008	 	$5,000,000	 	$50,000
							
	 Directors’ & Officers’ Liability
	 	5-Dec-02	 	5-Dec-03	 	Gulf Insurance Company	 	GA0349693	 	$10,000,000	 	$1,000,000
							
	 Excess Directors’ & Officers’ Liability
	 	5-Dec-02	 	5-Dec-03	 	Twin City Fire Insurance
Company	 	NDA0101381-02	 	$10,000,000
excess of
$10,000,000	 	Underlying

  

 - 15 - 

													
	 Coverage
	 	Effective
Date	 	Expiration
Date	 	Insurer	 	Policy Number	 	Maximum Limit	 	Maximum
Deductible
	 Excess Directors’ & Officers’ Liability
	 	5-Dec-02	 	5-Dec-03	 	XL Specialty Insurance
Company	 	ELU81891-02	 	$5,000,000
excess of
$20,000,000	 	Underlying
							
	 Marine Cargo
	 		 		 	Lloyd’s	 		 	Values
shipped	 	$50,000
							
	 Builder’s Risk
	 		 		 	Lloyd’s, et al	 	Lloyd’s - part
of Hull policy	 	As required
by contract;
must be
declared &
negotiated	 	$100,000
							
	 Contractor’s All Risks
	 		 		 	Lloyd’s	 		 	As required
by contract	 	
							
	 Loss of Hire
	 		 		 	Lloyd’s, et al	 	Part of Hull
policy	 	As required
by contract;
must be
declared &
negotiated	 	
							
	 Professional Liability
	 	17-Mar-00	 	17-Mar-04	 	American International
Specialty Lines
Insurance Company
(AIG)	 	4763092	 	$5,000,000	 	$100,000
							
	 Contractor’s Pollution Liability
	 	1-Oct-03	 	1-Oct-04	 	American International
Specialty Lines
Insurance Company
(AIG)	 	CPO 1952175	 	$5,000,000	 	$25,000
							
	 Owner’s and Contractor’s Protective Liability
	 	23-Jun-03	 	23-Jun-04	 	Essex Insurance
Company	 	3CL3258	 	$1,000,000	 	
							
	 Owner’s and Contractor’s Protective Liability
	 	23-Jun-03	 	23-Jun-04	 	Essex Insurance
Company	 	3CL3259	 	$1,000,000	 	

  

 - 16 - 

 Schedule 5.9 

Litigation 

None. 

 Schedule 5.10 

Subsidiaries of Holdings 
  

	1.	The following table details the name and the jurisdiction of organization of each SUBSIDIARY of HOLDINGS and the percentage of outstanding shares of such SUBSIDIARY
held by HOLDINGS: 

  

								
	 Subsidiary
	  	Jurisdiction
of
Organization	  	Owner(s) of
Outstanding
Shares	  	Percentage
of Shares
Owned by
HOLDINGS	 
	 Great Lakes Dredge & Dock Company*
	  	NJ	  	HOLDINGS	  	100	% 
	 North American Site Developers, Inc.
	  	MA	  	HOLDINGS
 C. Berardi
	  	85	% 
	 Great Lakes Caribbean Dredging, Inc.*
	  	DE	  	HOLDINGS	  	100	% 
	 Dawson Marine Services Company*
	  	DE	  	HOLDINGS	  	100	% 

  

	2.	The following table details the name, the jurisdiction of organization and the outstanding options of the SUBSIDIARIES of GLDDC and the percentage of outstanding shares
of such SUBSIDIARY held by GLDDC: 

  

								
	 Subsidiary
	  	Jurisdiction
of
Organization	  	Owner of
Outstanding
Shares	  	Percentage
of Shares
Owned	 
	 Fifty-Three Dredging Corporation
	  	NJ	  	GLDDC	  	100	% 
	 Lydon Dredging & Construction Company, Ltd.
	  	Canada	  	GLDDC	  	100	% 

 Note that from time to time
shell corporations are formed in foreign jurisdictions for bidding purposes. Such SUBSIDIARIES do not own any material assets. 

 Schedule 5.11 

Real Property 

Owned Real Property 
  

	1.	2747 Richmond Terrace, Staten Island, New York 10303 (Block 1109, Lot 31, Newark Bay, New York). 

Leased Real Property 

None. 

 Schedules 5.12 and 5.13 

Equipment and Vessels 
  

									
	 GL No.
	  	 Vessel Type
	  	 Vessel Name
	  	USCG
Cert. of
Doc.	  	Leased
	 101
	  	Hydraulic Dredge	  	Alaska*	  	X	  	
	 102
	  	Hydraulic Dredge	  	Georgia	  	X	  	
	 104
	  	Hydraulic Dredge	  	Florida	  	X	  	
	 105
	  	Hydraulic Dredge	  	Illinois*	  	X	  	
	 107
	  	Hydraulic Dredge	  	California*	  	X	  	
	 109
	  	Idler Barge	  	G.L. 10	  	X	  	
	 110
	  	Hydraulic Dredge	  	Carolina*	  	X	  	
	 118
	  	Hydraulic Dredge	  	Texas	  	X	  	X
	 130
	  	Clamshell Dredge	  	No.
501	  	X	  	
	 131
	  	Clamshell Dredge	  	G.L. 51*	  	X	  	
	 132
	  	Clamshell Dredge	  	G.L. 55*	  	X	  	
	 133
	  	Clamshell Dredge	  	No. 53*	  	X	  	
	 134
	  	Clamshell Dredge	  	G.L. 54*	  	X	  	
	 140
	  	Hopper Dredge	  	Manhattan Island*	  	X	  	
	 141
	  	Hopper Dredge	  	Sugar Island*	  	X	  	
	 142
	  	Hopper Dredge	  	Dodge Island*	  	X	  	
	 143
	  	Hopper Dredge	  	Padre Island*	  	X	  	
	 144
	  	Hopper Dredge	  	Northerly Island	  	X	  	
	 145
	  	Hopper Dredge	  	Long Island	  	X	  	
	 147
	  	Hopper Dredge	  	Liberty Island	  	X	  	X
	 202
	  	Barge Unloader	  	Unloader No. 2*	  	X	  	
	 211
	  	Hydraulic Booster	  	G.L.139*	  	X	  	
	 229/534
	  	Drill Boat	  	Apache*	  	X	  	
	 305
	  	Tug	  	Melvin E. Lemmerhirt*	  	X	  	
	 432
	  	Dump Barge	  	G.L.
322*	  	X	  	
	 433
	  	Dump Barge	  	G.L. 33*	  	X	  	
	 463
	  	Dump Barge	  	G.L. 63*	  	X	  	
	 464
	  	Dump Barge	  	G.L. 64*	  	X	  	
	 490
	  	Hopper Barge	  	G.L. 230*	  	X	  	
	 491
	  	Hopper Barge	  	G.L. 231*	  	X	  	
	 492
	  	Hopper Barge	  	G.L. 232*	  	X	  	

  

	1
	 Sale pending for this asset. 

	2
	 Collateral, but net book value is not in excess of $750,000. 

									
	 535
	  	Deck Barge	  	G.L. 177*	  	X	  	
	 544
	  	Deck Barge	  	Erin
C.3*	  	X	  	
	 575
	  	Jack-Up Barge	  	Reggie G*.	  	X	  	
	 576
	  	Booster Barge	  	G.L. 130	  	X	  	
	 590
	  	Walking Idler Spud Barge	  	G.L. 144	  	X	  	
	 591
	  	Walking Idler Spud Barge	  	G.L. 142	  	X	  	
	 593
	  	Idler Barge	  	Key West	  	X	  	
	 594
	  	Idler Barge	  	G.L. 141	  	X	  	
	 601
	  	Derrick Barge	  	GL - 61	  	X	  	
	 608
	  	Derrick Barge	  	G.L. 68	  	X	  	
	 719
	  	Pontoon Tanks	  	Pontoon Tanks (multiple)	  		  	

  

	3
	 Collateral, but net book value is not in excess of $750,000. 

 

 - 21 - 

 Schedule 6.4 

Insurers 

Reference is made to those insurance companies and associations set forth on Schedule 5.7. 

 Schedule 6.12 

Debt and Contingent Liabilities 
  

	1.	DEBT and all other obligations under the EXISTING CREDIT AGREEMENT, which shall be repaid as contemplated by the BANK LOAN FACILITY. 

 

	2.	DEBT evidenced by those certain Junior Subordinated Promissory Notes, dated as of April 24, 2001, in an aggregate initial principal amount of $3,000,000 executed
and delivered by NASDI and made payable to certain former non-management stockholders of NASDI, which shall be repaid in full as contemplated by Section 4.1(i) of the BANK LOAN FACILITY. 

 Schedule 6.15 

Investments 
  

	1.	Investments relating to that certain Joint Venture Agreement, dated January 24, 1989, between GLDDC and Ralph Clayton & Sons Materials, LP (Amboy
Aggregates Joint Venture). 

  

	2.	Investments relating to that certain Joint Venture Agreement, dated August 29, 2002, among Connolly-Pacific Company, GLDDC and Manson Construction Co. (LA
Deepening Project). 

  

	3.	Investments relating to that certain Joint Venture Agreement, dated October 4, 2002, between Bean Stuyvesant, L.L.C. and GLDDC (KVK Project).

  

 - 24 - 

 Schedule 6.17 

Affiliate Transactions 

Certain employees of NASDI formed J.D.C. Soil Management & Development LLC, a Massachusetts limited liability company, to operate a business
involving the removal and disposal of soil and other materials (“JDC LLC”). It is contemplated that JDC LLC will be merged with and into a newly-formed, wholly-owned Subsidiary of HOLDINGS subsequent to the effectiveness of the
Agreement and become an INDEMNITOR.

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